Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-28
ACQUIRED IN PANIC OF '93
High-Grade Iron Ore of the North
west.
STEEL TRUSTS REPRESENTATIVE
Story Of Tom Coles Rise From q
Stamp-Rock Sorter to Millionaire
With Widespread influence.
BY WILLIAM Z. CURTIS.
Special Correspondence of The Star and the Chicago
Record Herald.

Record Herald.
DULUTH, September %, 1907.
Although Mr.. John D. Rockefeller has had
many millions of dollars invested up in
this part of the country, he has never been
here but once. and that was three years
ago. He never saw the Mesaba mines until
long after he sold them, but he did very
we'll He bought mining property and ships
to the amount Of $4,000 900 cash. and sold
them to the trust for $50. 900, 600 in common
stock and $1O6, 100000 preferred stock. He
has nothing to do with either the mines or
the ships now, and never had any personal
knowledge of them. His operations here
were conducted from New York upon re-
ports made by his representatives on. the
ground
He first became interested in Capt. Alex
ander McDougalrs fleet of whaleback
steamers and the plant for building them.
This was done through Cleveland people,
his old associates in that city, and he sent
G. w. Wetmore, one of his proteges, a
young lawyer Of New York. to Duluth
to look into the traffic arrangements of
the fleet. Wetmore became interested in
the mining operations of the Merritt Bros.
who were the first on the Mesaba range,
and, upon his recommendation, Mr.. Rookie
Teller advanced them money to develop
their properties, taking stocks and bonds
security. The panic of 1893 arrested all
developments. and the Merritts were thrown
down. Mr.. Rockefeller was compelled to
carry them, and sent Mr.. Fred T. Gates,
another Of his lieutenants. to take charge
of their business. Ultimately they were COM
PEELED to turn over to Gates all of their
interests Mr.. Rockefeller furnished the
capital to reorganiZe and consolidate them
under the name of the Lake Superior Con-
solidated Iron Company, which he con-
trolled until the whole property was dis
posed of to the steel trust.
no CT fr11S no "a q nor
cent of the Mesaba range. The remainder Is
In the hands of Independent corporations
such as the Jones & Laughlin Company Of
Pittsburg, the Deerings of Chicago, An
drews & Hitchcock of Youngstown, M. A
Hanna & Co. of Cleveland, the Cambria
Steel Company Of oohnstown. Pa: the Re
public Iron Company, and other manufac-
turers in different parts of the country. The
Great Northern railroad had enormous In
terests until recently, but James j. Hill
made what is equivalent to a perpetual
lease to the United States Steel Corpora
ton of the entire holdings of that COM
pany and about 80 per cent Of the iron in
the range
Extent Of High-Grade Ore.
At the present rate of working accord
ing to the best estimates, the high-grade
ore. belonging to the trust, will last fifty
years. After that has been exhausted vast
areas of lowgrade ores paying from 30
to SIS per cent pure iron will remain, and
by that time the demand for iron may be SO
great and the economy Of transportation
so much improved that 1t will pay to ship
ore of that grade Some day perhaps the
trust will erect furnaces on the site of
the mines to utilize these low-grade ores
1t is already investing s120OO,OOO in
plant at Duluth and it's interests
here are so enormous that almost anything
can be expected. At present it does not pay
to ship to the furnaces at Cleveland, Pitts
burg. Youngstown. Sharon, Johnstown and
other places ore that carries less than 60
per cent of pure iron, which sells at 81. 80
ton.
Nearly all the mining operations of the
United States Steel Corporation are con-
Quoted by the Oliver Mining Company and
the Minnesota Iron Company. The former
thirty-one different mines on the
Mesaba range, employs about 5000 men
and produces GO per cent of all the iron
mined in Minnesota. which amounted to
something over 22,OOO,OOO tons last year.
This year the Oliver Company will produce
about 10, 100000 tone Of ore, all of which Is
shipped in its own steamers to It's own
furnaces for the benefit of the steel trust
The Minnesota Iron Company operates tho
trust mines on the Vermillion range, which
produce about 100000 tons yearly. The
Vermillon range lies almost directly north
of Duluth and its output Is shipped chiefly
from the port of Two Harbors, at the ter
minus of the Duluth and Iron Range rail-
road. The Mesaba range lies northwest
of Duluth about the same distance. with
luth. Missabe and Northern to handle its
enormous traffic.
The oliver Mining Company was origin
ally organized by the late Harry Oliver Of
Pittsburg, and absorbed by the trust
shortly after the great combination was
effected. The interests Of the trust in the
Lake Superior country are almost absolute
ly controlled by Thomas F. Cole. president,
and W. ]. Olcott. vice president, of the
oliver Mining Company
Identified With Duluth.
Mr.. Cole cans to Duluth in this capacity
seven years ago, and one of the leading
business men of the city in discussing his
personality said: HE had not been here
more than q year before his strong charac-
ter, brilliant ability and public spirit were
felt in this community. He showed his
faith in the future Of Duluth by acquiring
larger holdings of both business and resi-
dence property than any other citizen and
has increased them every year since. His
aim does not seem to be wholly to make
money from the advance in their value but
to improve the city and stimulate othersto