The labor world. [volume] (Duluth, Minn.) 1896-current, 1908-05-30

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higher let us give the corporation the
entire benefit Of the % cents. j..
Royalties formerly were about rs
cents a ton. The royalties now are
about 40 cents a ton. an increase on
the Mesaba range Of Is cents. In one
notable instance. In which the corpo-
ration is not concerned, the royalty Is
LOO ton. This. is an exception
which will not be soon repeated. Tho
cost Of the ton Of ore Including the
royalty then may be set down at IS
cents an increase Of 18 cents since
the COS; Is cents Of which goes into
the pockets Of the owners Of the iron
lands.
=. Lower Transportation Rates.
But there is the cost Of the trans
portation, the mining man will say.
This subject ID thrust at me every
time I argue ore prices with repre-
sentative Of an iron ore or steel COM
pany. When Lake Superior ore sold
at 1928 to $500 In Cleveland the rate
on that ore from lower lake points to
Cleveland was $1.o5. The rate in 1880
was $2.75, which is cited for the in
terest it may inspire and not for the
sake Of argument. The point at is
sue is, however, that the Mesaba ore
which Is now selling at $4.75 a ton is
carried from the Duluth harbor to the
Pittsburg furnaces is less than half
the $1.05 which was paid in 1894 to
take ton OF ore simply from a. lower
lake port to Cleveland.
AS to railroad rates the cost Of TAX
ing ton Of ore from the head Of
Lake Superior In 1894 was less than
the freight rate on that ton between
tn Lake Erie port and the Pittsburg
furnaces. The cost of transportation
on the ore carrying railroads has been
reduced to rate per ton without ex-
ample In the railroading of the world,
and the carrying capacity of lake
freighters has been increased to the
full limit Of the increased depth Of the
lake channels.
It is pertinent inquiry, think,
what has happened to add more than
81 q ton to iron ore since the COS in
view Of decreased cost Of transporta-
ton, the principal item, and the COM
paratively small, in fact the minute
increase in the cost Of production?
Does anyone outside of the Offices
Of the United States Steel corporation
think that tariff protection is, needed
to protect an "infant' industry and
that palpable fraud is not being per-
petrated on the American people?
Relation Of Two Crises.
The officials Of the United States
Steel corporation through the spoken
utterances Of leading representatives
Of the corporation combat the idea
that there is any analogy between the
conditions at this time and those fol-
lowing the crisis Of 1893, when there
was a lowering Of prices Of ore and
| finished products, which contributed
| materially to the revival and the sub
sequent expansion Of the associated
industries. The lowering Of prices in
the COS is attributed to the opening Of
| the vast Mesaba deposits ore was de-
livered at lower lake ports cheaper
| than ever before and because Of the
reduced price of ore the steel makers
of America were enabled to manufac-
ture steel cheaper than ever before
and were enabled to undersell their
competitors In all parts Of the world.
It is argued that ore prices should
not be dropped now because of the
rapidity with which we are exhausting
our supplies and that conditions are
not the same as in 1898. Consequent
", it is asserted, there is no reason
for the reduction In the prices Of
steel products.
While the ore deposits are being
so
has been made as to increase the ac-
tual cost of producing ore or to in
duce any curtailment Of the output
There has been great change in the
steel industry since it's revival but it
is far from being wholly the result Of
the relation of the natural supply to
| the demand for ore.
The great change in the steel in
! dustry which is responsible for the
| non reduction OF ore and steel prices
is the monopolization of the ore sup
ply and the suppression of competition
in that industry. The United States
Steel corporation is credited with con-
trolling three-fourths Of the iron ore
supply in the Lake Superior region,
! including most of that which is imme-
| d1ately and cheaply available.
| The Hill Ore Lands.
! By it's lease Of the Hill (Great
Northern) ore lands the United States
Steel corporation has fixed an increas-
ing royalty for a long series of years,
| affecting the future cost and distri-
buting profits literally between itself
| and the owning and transportation
companies subsidiary to It, at the ex-
pense Of consumers who are, or will
be, largely dependent upon the Mono
polized supply.
Here is where the hold Of the
United States Steel corporation on ore
and steel prices begins. It has one or
two powerful allies to sustain it in the
role of chief rnonopolizer. There is no
yielding in the price Of ore because
the manipulators will not let 1t yield.
Independent smelters have been. 70
loaded. up at high prices that it Is
difficult for them to make concessions