1921 Duluth & St Louis County MN, Van Brunt.pdf - Garon.us

1921 Duluth & St Louis County MN, Van Brunt.pdf - Garon.us 1921 Duluth & St Louis County MN, Van Brunt.pdf - Garon.us

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548 DULUTH AND ST. LOUIS COUNTY Webb Mine.—The Webb mine was explored by P. H. Nelson in 1901. An underground mine was developed by the Shenango Ore Company, but shipments did not begin until 1905. D. C. Peacock was superintendent. Up' to the end of 1919, the total quantity shipped was 1,524,746 tons. The mine still belongs to the same people, the Shenango Furnace Co., E. J. Maney being manager, and H. S. Rankin superintendent. It is a valuable property, having almost ten million tons of ore still available. Great Northern Iron Ore Properties.—When the United States Steel Corporation was organized in 1901, "panic seized owners of mining property." They felt that they had lost their ore market. It is said that "one could have bought the whole of the Mesabi range (that lay outside the Oliver Iron Mining enclosure) for little more than the Dutch gave for Manhattan Island." But there were some independent operators and financiers who were more courageous. A few, who saw further, gathered up handfuls of these begging properties, and it "was not long before there began the first era of lasting prosperity the range had known." Independent steel manufacturers were in the market for ore, and the demand expanded amazingly. The history of the Mesabi range indicates that "it has afflicted with additional wealth men already laboring under great fortunes." Lumbermen who bought these lands for a trifling price, for the timber only, found themselves "besieged by promoters who pleaded for leave to pay them a million or so for their discard. Rockefeller loaned a million and was recompensed by fifty. Carnegie, yielding to Oliver's entreaties, to buy something that cost him not a penny, was thereby master of the situation. James J. Hill bought a second-hand logging road to oblige a friend, and was introduced to an estate on which he once placed a value of eight-hundred million dollars." Hill, it seems, was indifferent to ore until almost forced into it, by the Wright-Davis logging railroad purchase, by which, figuring haphazardly, he knew to be worth $60,000,000, in ore values. But soon he took up the ore matter deliberately, and to the surprise of the steel men gathered in all the "odds and ends" they had passed by, and made the "odds and ends" into the "enormous assembly of ore" the Great Northern properties represent. In a few years, his holdings became almost as enormous as those of the Steel Corporation, which could not permit him to have such a weapon of raw material to "hold over their heads." To keep the supremacy for the Steel Corporation, to maintain a safe base in raw materials, the United States Steel Corporation were forced to come to James J. Hill eventually, and pay him a larger royalty than had ever been paid on Mesabi ore. The matter is dealt with in the general Mesabi Range chapter, of this work. Going back to the beginning, A. W. Wright and C. H. Davis, of Saginaw, and John Killoren and M. H. Kelly, of Duluth, acquired at the early land sales about six thousand acres of timber land, much of it along the Mesabi range. They built a logging road from Swan River into the heart of their land, which was near Hibbing, and commenced logging. The Weyerhaeusers were their best customers, and eventually the Wright and Davis syndicate oiTered them what timber they had remaining, with the land as well, for a million and a half. The Weyerhaeusers thought it better to take the timber for $1,300,000, and leave the land in the possession of Wright and Davis. Cut-over land was then worth from $2 to $5 an acre, where settlement was possible. That on 6,000 acres did not represent much, and

DULUTH AND ST. LOUIS COUNTY 549 taxes were a small but certain liability. Still, cut-over land "beyond the pale of civilization" was not worth having. So the great timber barons took only the timber, forming a company to handle the logs. Wright and Davis still had the land, which they looked upon as a "white elephant," and even though there were certain discoveries of iron made, they could not get anyone to "nibble" at their holding when offered for $3.00 an acre. So they held it, having no option, A few years later the Alahoning mine was developed on their land ; then the Stevenson. In 1899, James J. Hill paid them $4,000,000 for their land, and their railway. He was quite satisfied with the transaction, knowing its potentialities, yet it does not seem that he was over-anxious to enter into mining operations himself. And had it not been for the formation of the huge steel corporation in 1901, and the consequent "flurry" among independent mining companies of the Mesabi range, it is doubtful whether he would have invested further in ore lands, even with a legitimate accessory, a railway. But when the deflation came, he saw his opportunity and bought Mesabi ore properties courageously, being quite content to hold them until the great steel corporation came to him, as has been elsewhere stated. The astounding leasing contract made by Hill with Judge Gary of the Steel Corporation in 1907, held until 1915, and while he drew enormous royalties during that period, incidentally, the steel corporation developed some important properties for Mr. Hill, leaving him much richer in mines when the contract terminated than he had been when it began. That is the history of Hibbing mining in general, and it is a sufHciently sensational story to be fiction instead of fact. Many of the important mines of the Great Northern have within recent years been taken over (on a royalty basis of course) by the Cleveland-Cliffs Iron Company, which has been operating on the Mesabi range since 1903, and in recent years has been finding employment for about 900 men. In 1919, a subsidiary corporation, the Mesabi Cliffs Iron Mining Company, was organized, to operate the leases from the Great Northern, the properties including the Boeing mine at Hibbing, the Hill and Trumbull mines at Marble, and the North Star at Taconite. The Boeing mine is being opened as an open-pit and milling proposition, and the Winston Deere Company began stripping operations in 1920. Previously, in September, 1919, the Mcsaba Cliffs Company had begun to sink a shaft, for underground development of the property. The Hill and Trumbull mines, which adjoin, are to be operated as an open pit, though until taken over by the Mesaba Iron Mining Company no stripping had been attempted on the Trumbull. The II ill was one of the properties developed by the Steel Corporation during the leasing. The North Star was also opened by the Oliver Company. Altogether, James I. Hill did (juite well by his introduction to the Mesabi range, through the initial transaction with the Saginaw lumbermen, Wright and Davis. There are one or two other ilibbing properties worthy of mention, among them : the Kerr, which included the Sheridan, discovered by James Sheridan, in 1894, and now one of the Oliver properties; the Morton, a Pickands Mather mine ; the Philbin, operated by the and some inactive mines. But page space is un- Oliver Company ; fortunately not unlimited, and more space has already been given to the recording of the inqjortant Hibbing minijig histor\- than had been originally planned.

DULUTH AND ST. LOUIS COUNTY 549<br />

taxes were a small but certain liability. <strong>St</strong>ill, cut-over land "beyond<br />

the pale of civilization" was not worth having. So the great timber<br />

barons took only the timber, forming a company to handle the logs.<br />

Wright and Davis still had the land, which they looked upon as a<br />

"white elephant," and even though there were certain discoveries of<br />

iron made, they could not get anyone to "nibble" at their holding<br />

when offered for $3.00 an acre. So they held it, having no option, A<br />

few years later the Alahoning mine was developed on their land ; then<br />

the <strong>St</strong>evenson. In 1899, James J. Hill paid them $4,000,000 for their<br />

land, and their railway.<br />

He was quite satisfied with the transaction, knowing its potentialities,<br />

yet it does not seem that he was over-anxio<strong>us</strong> to enter into<br />

mining operations himself. And had it not been for the formation of<br />

the huge steel corporation in 1901, and the consequent "flurry" among<br />

independent mining companies of the Mesabi range, it is doubtful<br />

whether he would have invested further in ore lands, even with a<br />

legitimate accessory, a railway. But when the deflation came, he<br />

saw his opportunity and bought Mesabi ore properties courageo<strong>us</strong>ly,<br />

being quite content to hold them until the great steel corporation<br />

came to him, as has been elsewhere stated. The astounding leasing<br />

contract made by Hill with Judge Gary of the <strong>St</strong>eel Corporation in<br />

1907, held until 1915, and while he drew enormo<strong>us</strong> royalties during<br />

that period, incidentally, the steel corporation developed some important<br />

properties for Mr. Hill, leaving him much richer in mines<br />

when the contract terminated than he had been when it began.<br />

That is the history of Hibbing mining in general, and it is a<br />

sufHciently sensational story to be fiction instead of fact.<br />

Many of the important mines of the Great Northern have within<br />

recent years been taken over (on a royalty basis of course) by the<br />

Cleveland-Cliffs Iron Company, which has been operating on the<br />

Mesabi range since 1903, and in recent years has been finding employment<br />

for about 900 men. In 1919, a subsidiary corporation, the<br />

Mesabi Cliffs Iron Mining Company, was organized, to operate the<br />

leases from the Great Northern, the properties including the Boeing<br />

mine at Hibbing, the Hill and Trumbull mines at Marble, and the<br />

North <strong>St</strong>ar at Taconite. The Boeing mine is being opened as an<br />

open-pit and milling proposition, and the Winston Deere Company<br />

began stripping operations in 1920. Previo<strong>us</strong>ly, in September, 1919,<br />

the Mcsaba Cliffs Company had begun to sink a shaft, for underground<br />

development of the property. The Hill and Trumbull mines,<br />

which adjoin, are to be operated as an open pit, though until taken<br />

over by the Mesaba Iron Mining Company no stripping had been<br />

attempted on the Trumbull. The II ill was one of the properties<br />

developed by the <strong>St</strong>eel Corporation during the leasing. The North<br />

<strong>St</strong>ar was also opened by the Oliver Company. Altogether, James<br />

I. Hill did (juite well by his introduction to the Mesabi range, through<br />

the initial transaction with the Saginaw lumbermen, Wright and<br />

Davis.<br />

There are one or two other ilibbing properties worthy of mention,<br />

among them : the Kerr, which included the Sheridan, discovered<br />

by James Sheridan, in 1894, and now one of the Oliver properties;<br />

the Morton, a Pickands Mather mine ; the Philbin, operated by the<br />

and some inactive mines. But page space is un-<br />

Oliver Company ;<br />

fortunately not unlimited, and more space has already been given to<br />

the recording of the inqjortant Hibbing minijig histor\- than had been<br />

originally planned.

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