The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1918-07-13
PRODUCERS OUTLINE CASE.
Continued from Page One)

lConunueu from rage OneD
age cost I. o. b. Lake Erie ports Of:
1851 on bessemer ore VS..
selling price of s5.71
$5.015 on nonbessemer ore VS..
selling price OF $475
This indicates a profit as at today.
OF 20 cents per ton on about $780,
900 tons annual production OF besse-
mer. ore. and q loss OF 26la cents per
tom on about 100000 tons OF non
bessemer ore. or an average OF 17h
per ton on about 100000 tons.
How Costs Were Checked.
The selling prices per ton here
used are the present base prices less
the standard penalties suffered on
account OF the chemical analysis OF
the ore. and they also include a num-
Der OF term contracts. In which fixed
| tonnage per year for s or 10 years
was sold at a concession. These term
contracts were all made before this
war began, and their makers did not
then contemplate that ore prices
would be regulated save by the GUS
| tomary market conditions OF supply
and demand.
These figures are the result OF the
most painstaking work by able min
| ing accountants and have been care
fully scrutinized by experienced man
ayers and operators. We invite their
closest inspection by the expert &C
countants you have available for such
work.
On June % fat railroad rate in
crease OF 1874 cents per gross ton
goes into effect, as shown. Although
the previous rates. especially those in
Minnesota on about two-thirds OF the
! entire Lake Superior output were ad-
| mittedly generous, we do not here
raise any question as to the propriety
Of this increase, except that you will
please note that II will still further
increase our cost by 1914 cents.
What Open Pits Could DO.
If tonnage were the only factor
careful study shows there could be
mined from Mesabi open pits (large-
ly the properties OF the large steel
companies) 100000 tons more an
nually than they now produce, and
do ii for possibly three years. This
notion would be important IL we
could set now a date for the ending
OF the war. But the railroads now
handling the Mesabi range are already
oyertaxed, one OF them especially So
such a theory is largely disposed OF
without bringing in the fact that thu
none too large lake fleet would there
by face new problem in longer hauls.
Without dwelling on the broad
rights OF prosperous underground
mining cities and town like Ishpem-
ing, Negaunee, Crystal Falls, Iron
River, Ironwood, Hurley, Ely, Eveleth
Bull, Chisholm and others, and the
large interests OF the state OF Michi-
gan and Minnesota involved Herewith
we will turn to the metallurgical and
economic reason why these under
ground mines should be given back
their financial health
In the first place, this As per cent
OF underground ore is much more
important than at first appears. II is
superior in chemical and physical
qualities to the open pit ores and Il
is the basis of all blast furnace prac-
tice. A serious curtailment in under
ground production means radical
changes In furnace operation, now es-
pecially troublesome, due 20 poor
coke For these reasons we state our
belief that this AS per cent Is poten-
TALLY much more than As per cent in
metallurgical importance and there
for IL is absolutely essential to the iron
and steel industry
The production by steam shovel Is
now at It's crest Since the Mesabi
range got to its feet 20 years ago. II
has naturally produced its cheapest
ores in quantity much faster than
proper conservation board would have
permitted. Further, this period has
seen the rapid growth of steel and
iron companies with their financial
problems, and these have naturally
dipped into their own open pits quite
heavily, so today the underground OPP
orators face the necessity OF keeping
abreast with the growing consump-
ton OF ore. This will require labor,