The diamond drill., 1920-06-19
ASK INCREASED RATES
Railroads Seek To Increase Charges
ON Iron Ore From Lower Ports

A request has been made for an In
crease in iron ore rates from Erie
ports to inland furnaces that may have
very important bearing upon future
development in the iron business Il
granted.
In all lines OF business there ia n
tendency to get closer to the produc-
Ing centers, especially In cases OF
heavy raw materials such as iron ore
and timber.
Transportation has been so cheap
In the past that the nearness TO the
source OF raw material didn't cut much
figure when the extra charge for
transporting such material was COM
pared with the advantage OF distribu-
tion. The development in railroad
circles seems to indicate that there ia
going to be a violent change; that
manufacturing plants are going 10
seek a closer connection with their
raw material base. There is already
In evidence a disposition to locate
mills and manufactures OF wood pro-
ducts closer TO the forests. This may
result II the increases in freight rates
on iron ore are granted which are
now asked for. In this connection
blast furnace operators in the East
are greatly perturbed over the pos
sibility OF an advance OF % cents "a
ton in the freight rate on. iron orc
from the Lake Erie docks to the In
terror. That would bring the rate up
TO 81 cents per ton. as compared with
60 cents as at present The inter-
state commerce commission has been
petitioned for an increase by the Bal
timore & Ohio railroad and Il would,
II granted, apply to all the ore carry
ing railroads.
Experts estimate that the furnaces
would be called upon TO pay $1,000
900 additional In freight rates should
the proposed increase go into effect,
and that prospect, in conjunction with
other difficulties that have been faced
by the iron ore and the blast furnace
interests. Is regarded as serious.
Strong protests are being made at
Washington against such high adj
vance being granted in the ore rate.
ore shippers contend that they are
operating under severe handicap as
Il Is this season through the coal
shortage curtailing operations on the
ranges and making II now doubtful IL
he required tonnage can be shipped
before the close OF the lake navigation
season.
A Duluth official OF one OF the in
dependent companies said recently
hat barely sufficient coal is being re-
,eived TO maintain its mine ship
nents to the docks there at basis or
10 per cent of normal.
The effects OF the pooling arrange
nents for coal shipments at the Lake
crie docks will not, he thought. be
cen for some time yet. owing to the
low movement 20 the docks and the
act that industrial plants in the East
re grabbing all the coal they can OBJ
ain. From the present outlook, he
Considered II 10 be dubious u more
han 10000, 900 tons OF ore will be
hipped from the docks there this sea-
on. as compared with a maximum OF
& 900 600 tons estimated at one time.
he future OF the trade depends al
lost altogether on transportation
onditions, he said Provided cars are
upplied in sufficient volume to enable
re 10 move regularly from the docks
, the furnaces, and II the steel com
anies are supplied with more near
adequate amount OF equipment he
fought a better showing might be
iade both In ore shipments and y
ished products from the mills, than
-, annaars 10 be possible.