Evening star., 1928-05-21
LOW-COST LABOR
PROBLEM IN IRON
Cheap CooIie Bands in India
Constitute Menace to u. S.
Ore Distribution.
BY J. G. ROYLE.
lal Dispatch TO The Star

Special Dispatch TO The Star.
NEW YORK, May 2l.--With ship
ments from the iron mines of Minnesota
and Michigan now in full swing across
the Great Lakes, producers who nor
mally would be settled down, with moth
ing but production difficulties confront
ing them, are desperately anxious over
competition. The old battle between
low cost foreign labor and American
efficiency must be fought out again this
year in the iron mining industry.
There are fewer men employed on the
iron ranges of Minnesota today than
were on the pay rolls in 1921. The latter
year was a period of acute depression,
when tonnage amounted to only half
the normal output
In 1927 the population on the iron
ranges of Minnesota decreased by 5000
and still decreasing despite the fact that
the steel industry is almost at the peak
of prosperity and that iron ore require
ments are sure to be as heavy as In
1927 and perhaps heavier. This condi-
ton has generally been attributed to
the substitution of machinery for man
power but l.. A. RosSman Of Grand
Rapids, MINI, was emphatic today in
declaring that 1t was a fallacy to at
tribute the present condition entirely
to this cause.
Important Markets Lost.
more efficient mechanical methods
account for part Of this decrease in en-
ployment." said Mr. Rossman, but the
loss of important markets for Lake Su-
perior ore Is another and important
cause"
The manufacture of iron and steel
now centers largely in the district west
of the Allegheny Mountains. which is
in direct or semi-drect connection with
Lake Erie. Eighty per cent of the
production of the United States is
turned out in this district In the
Eastern States. however. there is a
great demand for steel and a portion
of this demand is supplied from fur
naces east of the Alleghenies.
AS high as 100000 tons year were
supplied for this purpose. In 1927 these
shipments dropped to approximately
100000 tons. owing 10 the competition
from Eastern and Southern mines and
from foreign ore properties.
At the moment Chile represents the
chief source of danger to the Lake
Superior producers in this market.
That country. with almost unlimited
natural resources, has increased its
shipments TO the United States from
10000 tons of iron ore in 1921 TO over
100000 tons in the last year.
Despite the decline in production OF
American ore In 1927, importations OF
foreign ore increased to a marked de-
gree. Moreover, India has the greatest
deposits of high-grade iron ore in the
world today, according to Mr.. Ross
man. The Indian iron and steel indus
try is given complete protection by the
British government and bountieS are
paid for production. With coolie labor
India produces ton Of pig iron for less
than the cost of the iron ore involved
in the production Of ton OF pig iron
turned out in the Lake Superior re-
gion. This pig iron is shipped by all
water transportation TO the Eastern
coast of the United States for $5.25 a
ton. The freight rate on pig iron alone
from Buffalo to Eastern ports Of the
United States is $4.65 ton.
Import $4,000 Tons.
In the last year importation OF manu-
factured iron and steel into this coun~
try represented the equivalent OF ] .500,-
900 tons Of Lake Superior iron ore,
which was thus forced out OF the mar
ket.
American ore producers have by no
means been idle in the face Of this
competition. In the Lake Superior
region they have changed from under
ground TO open pit iron ore production
where steam shovels and electric load.
ing machinery have taken place OF the
man with the shovel.
In spite Of this fact. less development
work is being done in the Lake Superior
region than ever before. Stripped opera
tions have been restricted and whereas
the iron ore was produced from las
mines in 1918, the total was 81 mines
In 1927. Therefore, in less than dec
ade more than one-third OF the Mime
sofa mines have been closed.
In nearly every instance, the mer
thus forced out of employment have
been absorbed in some other depart
mcnt OF the iron and steel industry. In
the South, iron ore production Is on the
increase and there labor conditions are
satisfactory.
Production costs at the iron mines In
the West, Utah and Colorado undoubt-
edly are high. but processes are CORE"
spondingly efficient This has been
aided by the sharp development OF
steel production on the Pacific Coast
Here, however, there also enters the
question OF competition with Oriental
labor, since the Chinese iron mines un-
doubtcdly could be made 10 supply the
Pacific Coast demand at a price which
would force the Colorado and Utah pro-
ducer8 into desperate competition.