Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1941-10-04

forged or rolled into the desired final
shapes. The manufacture OF ferro-
chrome requires large quantities OF
cheap electric current, Of carbon in
some form or other, some limestone
soda ash or some other flux, and OF
course, those Of us most familiar with
Montana's resources realize that ali
Of these ingredients are relatively
cheaply obtainable here.
Montana Iron Ores
After manufacturing ferro-chrome
it would then be necessary to shin
same to the eastern manufacturing
plants where the alloy steeIs are made
To do this successfully involved the
obtaining Of reasonable freight rates
from west to east, or IL same coaid
not be obtained, then the only way the
industry could be maintained profit
ably would necessitate the manufac-
ture out here Of the alloy steels them
selves. It is fortunate that for this
purpose Montana has a great advan-
tage over other portions Of the country
in that exceptionally high grade iron
deposits occur in the Great Falls dis
"a 49, VI VIZ obtAbC IA EALe&J uUA4AbAtAEH
so that, to the writer at least. il
seemed that a new industry could be
profitably started in Montana which
could, in a reasonably short length Of
time. be developed into one of ire
mendous proportions.
Company Formed
With these dreams, or perhaps not
dreams, the writer attempted to get
the cooperation of some Of the states
strongest or most influential citizens
in its industries, and did obtain the
cooperation and loyal fellowship Of
groups in Livingston Billings, Great
Falls and that of some eastern friends.
A well considered plan was adopted
and adequate finances promised by
one of the eastern financing compa-
MES. to be knocked completely in the
head by the financial panic Of 1929
After that it was a struggle to keep
properties which had been gathered to
form the basis of the proposed de-
from reverting to their for
mer owners.
UnfavOrabIe Factors
A number Of efforts were made to
be knocked out completely by the /
plain mechanics of the situation which /
were as follows: The chromium in
uSeable form has to be taken to the
points at which the alloy steels are
made These points are all east of the
river, or nearly all are east
If the Mississippi. Modern steel plants
cost a great deal of money and must
nave a large market in order to OPP
crate since 1t is uneconomical to OPP
crate for a short period Of time and
then shut down the plants. Contm-
Ious operations are necessary in order
% utilize the heat which is expensive
n all smelling operations. To build a
complete manufacturing enterprise IN
he west without an assured market
would entail the risk of heavy finan-
,ia1 loss. Therefore, it was found i'm
possible to obtain the large amount OF
money which was deemed necessary
% enable manufacturing plant toll
,e successfully operated in this state.
Due to the high freight rates exist
ng, it was found that chromite ore
rom foreign sources of supply Of equal
or better grades could be delivered
1t eastern points of manufacture at
eSs cost than could the large Mon
ana deposits of chromite be mined
md shipped to the same points.
It is obvious to anyone that all '.
manufacturers must obtain their raw
materials from the sources of cheap
st supply in order to successfully
in the modern very highly [
conditions that exist. t
therefore, these manufacturers al {
eady established in the east con- /
Idered it necessary for them to OBJ /
ain their supplies of raw materials t
rom foreign sources of supply, not 7
the day now upon us i
hen these foreign sources of supply \
re shut off by reason Of higher ocean {
eight rates and lack of ships. t
cast Market Overlooked a
It is the most natural thing in the t
orld that all well managed indus U
les attempt to keep their different G
nits as closely assembled as possible t
nd while for the past Is or 20 years c
lie northwestern part of this country {
as been developing at a very rapid c
lte, I believe that our eastern manu- n
lcturing friends did not realize the !;
Importance of the market which was s
cling slowly but surely developed in a
II part Of the country. Big steel did .
allie the situation and started OPP
'ations in both Utah and California, q
1t this company has always re- u
aimed from development Of raw ma Y
rials, preferring to buy same after Il
ley are developed or from legitimate Q
'oducers Of same so that this outlet, q
Tough solicited was, as matter of s.
leir established policy, denied US. 2
ardest Decade y
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