The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1927-02-18

Buffalo and over the falls of Mag
ara. The smelling and fabrieating
of this ore requires the labor of at
least 100000 men whose earnings
support probably 1000, 900 people,
without including those engaged in
the transportation of other raw mat
erials and the finished products of
the iron industry. The importance
of iron mining in the Lake Superior
region to the country is further en-
phasized by the fact that 50 per cent
of all of the iron ore produced in the
United States originates in the Lake
Superior mines, of which there are
about 200, producing this year an
average of 100000 tons each.
"Time permitting, it would be in
teresting to trace the early develop
ment of the iron industry on the
Atlantic coast and it's movement
across the mountains westward into
the Mississippi Valley and the Great,
Lakes basin, following the discovery
of Connellsville coke and the sur
passing richness and volume of the
ores of Lake Superior. 1t would be
of interest also to speculate on the
probably future backward movement
from the great valleys toward the
Atlantic coast, for biologists do not
believe that Lake Superior will be
able to continue to produce indefi-
nitaly 60,000,000 tons annually of
high-grade iron ore, except on the
assumption that means will be found
of benefciating certain types of low
grade ores that are not susceptible to
treatment by any known method.
Careful estimates show that there
is available in the Lake Superior re-
gion, iron ore of the average ship
ping grade today (about 81 percent
metallic iron NATURALLY in the amount
of not more than $500 600, 900 tons,
including the ores susceptible of con-
centration by known methods at
moderate cost. If future demands
for this ore are no greater than now,
this high-grade ore reserve will be
exhausted in the next generation.
The economic effect of approaching
exhaustion will begin to be felt be-
fore 20 years have elapsed. Here
is a major problem in economics. 1t
is not considered probable that Lake
Superior reserves will be augmented
beyond the figures stated, except
through the development of some
means of concentrating at low cost
low-grade rock consisting essentially
of the hydrated oxides of iron and
silica in the form of ebert. Those
of you who are metalurgists will I'M
derstand that problem.
From the figures of production
which l have quoted, you have prob
ably reached the conclusion that all
is we'll with the iron-ore industry.
l hasten to correct that impression.
The movement of iron ore is indeed
satisfactory, but since 1928 there has
beeh a net reduction in the price of
iron ore amounting to $1.30 per ton
without any compromising reduction
in the cost of labor, materials, sup
plies, and transportation. In other
words, this $1.30 reduction in price
is borne by the iron ore operator.
Were it not that during the last
three or four years the operator has
found means of reducing his cost of
without cutting the wage
of labor, although paying the same
prices for materials, supplies and
that he paid in 1928,
he would not be able to produce ore
at the rate of 60,0O0,000 tons per
year. 1t has been said and I be-
lieve that last year 25 per cent +
the iron ore was brought down the
lakes at a net loss to the operator,
that 25 per cent was brought down
at no profit, and the remaining so
per cent at small profit to the OPP
orator. Inasmuch as this year tire
has been no change in freight, wage
and material costs, it is expected
tn t the same situation applies to
the year 1926.
"You will be interested, of course,
in the reasons why we have such an
unsatisfactory price for iron ore in
view of this enormous movement.