IRON ORES McGraw-Hill BookGompany Electrical World The Engineering and Mining Journal Engineering Record Engineering News Railway Age Gazette American Machinist Signal ElnginGor American Engineer Electric Railway Journal Coal Age Metallurgical and Chemical Engineering P o we r IRON ORES THEIREOCCURRENCE, VALUATION AND CONTROL BY EDWIN C. ECKEL M A8SOC. AM. 8OC. C. E., FELLOW, GEOL. SOC. AMERICA FIRST EDITION McGRAW-HILL BOOK COMPANY, INC. 239 WEST 39TH STREET, NEW YORK 6 BOUVERIE STREET, LONDON, E. C. 1914 COPYRIGHT, 1914, BY THE MCGRAW-HILL BOOK COMPANY, INC. i^-H , ; THE'MAPLE. PRESS. YORK. PA PREFACE The material presented in this volume has been worked over, at intervals, during many years of professional activity; and cer- tain sections have, as later noted, been published in various technical journals and in private and official reports. The volume as it now stands represents an attempt to discuss iron ores not merely in their geologic and technical relations, but in their more general relations to industrial conditions. The field thus outlined is broad, and the risk of failure is correspond- ingly great. But on the other hand there have been exceptional opportunities for studying the iron-ore situation from several widely different standpoints, and something more than a purely technical treatment seemed to be both justified and desirable. The industries based upon iron ores are of interest, directly or indirectly, to the entire business and financial world; and have also to some degree become matters of political concern. Any adequate discussion of the general iron-ore situation must there- fore take into consideration many factors not commonly regarded by the geologist or the engineer, and too often passed by as not susceptible of exact definition or scientific treatment. It is hoped that this volume will prove to be, if not conclusive, at least suggestive in these regards. Beginning with some consideration of the natural abundance and wide distribution of iron, the manner in which this dissemi- nated iron is concentrated into workable ore deposits is discussed in considerable detail. It may be noted, in this connection, that the sedimentary ores are given space more nearly commensurate with their overwhelming importance than has been common practice. 293196 vi PREFACE The second section of the volume is devoted to discussion of the various factors affecting the value of iron ores and the valuation of ore deposits. An introductory chapter summarizes the basal factors concerned in these matters. This is followed by a discus- sion of prospecting or exploratory work, in which for the first time an attempt is made to indicate the manner in which theories of origin actually bear upon the examination of ore deposits. Following this are chapters on mining costs, concentrating possi- bilities, and furnace and mill requirements, so far as any of these matters bear upon the subject of ore valuation. Later chapters of this section treat of prices, markets and other financial aspects of the problem. Descriptions of the more important ore deposits of the world are contained in the third part of the book. In preparing these descriptions, an attempt has been made to consider the deposits in the light of their present and possible industrial importance. Deposits of local importance and those which are of interest solely as geologic occurrences are not described, and individual mines and ore properties are not noted except as illustrating general types. The attempt has been to give, with regard to each important ore field, sufficient data concerning its location, type, ore grade, shipments and reserves to justify conclusions expressed by the writer, or to enable the reader to form his own conclusions, as to the present and possible future importance of that field. In most cases very full reference lists are included, so that further details can be looked up as desired. The final section of the volume deals with certain questions of very general interest and great importance. Estimates are given covering the known iron-ore reserves of the world, and the bearing of these estimates upon the probable future development of the iron industry is discussed in some detail. Particular attention is paid to conditions affecting the American iron indus- try, regarding its own internal development, its relations to foreign competition, and its relation to the State. It is probable that PREFACE vii public interest in the last point mentioned will continue until laws are brought into harmony with industrial conditions. In preparing this book, data have been drawn from a large number of published and unpublished sources, covering both the work of others and my own. In addition to the specific credits given in the text, my acknowledgments are due to the editors of various journals, for permission to re-publish Certain sections which I originally published in their columns. The Engineering Magazine, Iron Trade Review, Iron Age, Engineering and Mining Journal and The Annalist are my principal creditors in this regard. E. C. E. WASHINGTON, D. C. June 18, 1914 CONTENTS INTRODUCTORY CHAPTER I. THE INDUSTRIAL STATUS OF IRON: Relative tonnage importance 2 Relative total values 2 The metals compared, 1901-1910 4 Summary of tonnage and value comparisons 5 Relative natural scarcity of the metals 6 The American situation 7 Summary 8 PART I. THE ORIGIN OF IRON-ORE DEPOSITS CHAPTER II. THE GEOLOGIC AND CHEMICAL RELATIONS OF IRON: Natural abundance of iron 9 Iron ores and ore deposits 10 The growth of the earth 11 Relative age of rocks 12 Geologic chronology 13 Igneous rocks and iron 14 Sedimentary rocks and iron 16 Structure of rock masses 18 The two series of iron compounds 20 CHAPTER III. THE IRON MINERALS AND THEIR RELATIONSHIPS: The Grouping of the Iron Minerals 22 Magnetite group 23 Hematite group . 24 Limonite or brown-ore group 25 Iron carbonate group 26 Iron silicate group 26 Iron sulphide group 27 Chemical relationships of the iron minerals 28 Relative productive importance of the different ores 29 CHAPTER IV. THE FORMATION OF IRON-ORE DEPOSITS: Definition of ore and ore deposit 31 Practical bearing of theories of origin 33 The principles of classification 35 The major groups of ore deposits 36 Removal of iron from crystal rocks 37 ix x CONTENTS The transfer and re-deposition of iron 38 The alteration of existing deposits 38 Summary of working classification 39 Relative importance of the groups 39 The ratio of geologic concentration 42 The geologic age of iron deposits 43 CHAPTER V. SEDIMENTARY OR BEDDED DEPOSITS: Importance and general character 45 Classes of sedimentary ores 47 Transported concentrates 48 Spring deposits 49 Bog deposits 49 Marine basin deposits 50 Carbonate deposits 51 Extent 51 Age and associated rocks 52 Structure of the ores 52 Composition of carbonate ores 53 Origin of marine carbonates 54 Iron silicate deposits 54 Glauconites of ijie ocean bottom 55 Cretaceous greensands of New Jersey 55 Iron silicate ores of Europe 58 Iron oxide deposits 58 Extent of marine oxide deposits 59 Associated rocks 60 Related phenomena fossils, etc: 62 Structure of marine oxide ores 62 Composition of the original precipitate 64 Summary of structural relations 66 The question of origin 67 Chief typical deposits 69 CHAPTER VI. REPLACEMENTS AND CAVITY FILLINGS: Cavity and pore fillings 72 Normal replacements 75 Relations to the ground surface 77 Extent of the deposits 77 Form of the deposits 78 Composition of the ores 80 Effects of later weathering 80 Chief typical deposits 80 Secondary concentrations 81 Extent of the deposits 81 Relations and importance 82 Requisite conditions 83 CONTENTS xi Contact replacements 86 Location and form of deposit 86 Chief known occurrences 87 CHAPTER VII. ALTERATION DEPOSITS 89 Gossan deposits 90 The original minerals 90 Process of alteration 91 Character of the gossan ores 93 Examples and relations 93 Residual deposits 94 General factors involved 94 Solution residuals 95 Laterite residuals 98 CHAPTER VIII. IGNEOUS IRON DEPOSITS 100 Criteria for recognition 101 Chief possible occurrences 103 The titaniferous magnetites 104 Associated rocks 104 Form and relations 105 Character of ores 105 Bibliography 105 PART II. THE VALUATION OF IRON ORE PROPERTIES CHAPTER IX. BASAL FACTORS IN ORE VALUATION: General Bases of property valuation 106 Valuation of ore reserves 107 Capitalization of smelting profits 109 Market valuations 110 Capitalization of royalties or mining profits 112 References on reserve valuation 113 CHAPTER X. PROSPECTING AND TONNAGE DETERMINATIONS: Reasons for valuation 114 The study of origin anal, geologic relations 115 Geologic examination 115 Probabilities as to origin 116 Application of geologic studies 117 Sedimentary deposits 117 Normal replacements 117 Secondary concentrations 118 Contact deposits . 118 Residual deposits 118 Prospecting methods and costs . 118 Available methods of exploration 118 xii CONTENTS Choice of methods 119 Core drilling 119 Churn drilling 120 Auger drilling 120 Pits and shafts 122 Trenches and drifts 122 Ore density; space and tonnage conversions 123 Theoretical or maximum, density 123 Factors decreasing density 123 Density of actual ores 124 Lake Superior hematities 124 Oolitic and fossil hematites 125 Carbonate ores 126 Brown ores 126 Magnetites 126 CHAPTER XI. MINING CONDITIONS AND COSTS: General mining methods 127 Cost of mining Lake Superior ores 129 Cost of mining red or Clinton hematites 132 Cost of brown ore mining 134 Cost of mining magnetites 136 Costs in Cleveland district, England 138 Costs in Luxembourg-Lorraine district 139 Comparison of principal districts 140 CHAPTER XII. FURNACE AND MILL REQUIREMENTS: Status of the blast furnace 142 Construction and operation 143 Blast furnace fuels 144 Fluxing materials 145 Chemical limitations of the blast furnace 146 Utilization of pig iron 148 The various steel processes' 149 Factors influencing metallurgic value of ores 151 CHAPTER XIII. COMPOSITION AND CONCENTRATION OF IRON ORES: The impurities of iron ores 152 Universal presence of impurities 152 Sources of the impurities 153 Character of impurities 153 Metallic impurities 154 Alkaline impurities 154 Acid impurities 154 Volatile impurities 155 Phosphorus and sulphur 155 Distribution of impurities in typical ores 155 CONTENTS xiii The concentration of iron ores 157 General types and possibilities 157 Actual importance of concentration 159 CHAPTER XIV. ORE PRICES, PROFITS AND MARKETS: Costs and prices 162 Factors included in costs 162 Absolute price limits 163 Effect of metallurgic value on prices 164 Division of the profits 165 Smelting or furnace profits 166 Mining profits 167 Royalties 168 Actual markets and prices 168 Prices of Lake Superior ores 169 The Atlantic ore market 172 CHAPTER XV. THE EFFECT OF TIME ON VALUATION: Determination of present value 175 Proper carrying charge 176 Possible changes in ore values 178 PART III. THE IRON ORES OF THE WORLD CHAPTER XVI. IRON ORES OF THE UNITED STATES; GENERAL: Status of United States as ore producer 181 American ore output, 1860-1912 183 Imports of iron ore 183 Exports of iron ore 184 Tonnage available for consumption 186 American ore output, by States 186 Iron ore districts of the United States 189 Ore consuming districts of the United States 191 CHAPTER XVII. THE LAKE SUPERIOR DISTRICT: Location and geology 194 The Lake Superior ore ranges 194 General geology of the Lake region 196 Origin of the ores 197 Mining and concentration 201 Composition and grade of Lake ores 202 Changes in average ore grades 203 Transportation and markets 205 History and statistics 209 Publications on Lake district 211 The Clinton ores of southern Wisconsin . 213 xiv CONTENTS CHAPTER XVIII. THE SOUTHERN UNITED STATES: Limitations and advantages 215 Principal southern ore fields 216 Red or Clinton hematites 220 Birmingham district 222 Chattanooga- Attalla region 225 Tennessee-Virginia region 227 Brown ores; Appalachian region 228 Brown ores; Tennessee River region 234 Brown ores; northeast Texas 236 Magnetites and other ores of crystalline area 239 Southern iron-ore requirements 240 Growth of southern iron industry 241 Southern coal reserves 244 Southern market conditions 246 Future market possibilities 248 CHAPTER XIX. THE NORTHEASTERN UNITED STATES: General distribution of iron ores 251 Magnetites of Adirondack region, New York 253 Magnetities of New York-New Jersey Highlands 255 Magnetites of southeastern Pennsylvania 258 Clinton red hematites of New York and Pennsylvania . . . 259 Brown ores of the northeastern states 259 Red hematites of western Adirondacks 260 Carbonate ores of Ohio and western Pennsylvania 260 Northeastern iron-ore requirements 261 Present ore production 261 Chief sources of supply 262 Present ore markets 262 Prospects of future development 262 CHAPTER XX. THE WESTERN UNITED STATES: Productive status of the west 264 Hartville region, Wyoming 265 Iron Springs region, Utah 267 Colorado and New Mexico ores 268 Pacific coast ores 268 The western ore situation 269 Publications on western iron ores 270 CHAPTER XXI. NEWFOUNDLAND AND CANADA: Newfoundland 273 Geology of ore region 273 The main ore beds 275 Grade and composition of ore 275 CONTENTS xv Market points 276 Production and shipments 277 Probable reserve tonnages 277 Dominion of Canada 278 New Brunswick and Nova Scotia 279 Bathurst region, New Brunswick 279 Torbrook region, Nova Scotia 281 Quebec and eastern Ontario 283 Western Ontario 283 Alberta and eastern British Columbia 284 Western British Columbia 285 Status of iron production in Canada 285 Publications on Canadian iron ores 287 CHAPTER XXII. WEST INDIES, MEXICO AND CENTRAL AMERICA: Cuba 288 South shore hematites 288 North shore brown ores . . 290 Iron-ore industry of Cuba 292 Reference list on Cuban ores 292 Hayti and Porto Rico 293 Mexico 294 Central America 295 CHAPTER XXIII. SOUTH AMERICA: Colombia, Venezuela and the Guianas 297 Brazil 300 Chile, Peru and Ecuador 302 References on South American ores 304 CHAPTER XXIV. EUROPE: Lorraine-Luxembourg region 305 Other German ore districts 311 Other French ore districts 314 Great Britain 315 Norway, Sweden and Finland 322 Spain and Portugal 323 Russia 325 Austria, Hungary and Bosnia 327 Italy, Greece and the Balkan region 329 Belgium 329 CHAPTER XXV. ASIA, AFRICA AND AUSTRALIA: Asia 330 China, Corea and Japan 331 British India. . 333 xvi CONTENTS Africa 335 North Africa 336 East and South Africa 336 Australia 337 PART IV. EXTENT AND CONTROL OF IRON ORE RESERVES CHAPTER XXVI. THE EXTENT OF AMERICAN ORE RESERVES: Credibility of reserve estimates 339 The Tornebohm estimate of 1905 341 The Eckel estimate of 1907 342 The Hayes estimate of 1908 344 The Butler-Birkinbine estimate of 1909 347 Revised estimates, 1912 347 Tributary reserves 351 CHAPTER XXVII. PROBABLE DURATION OF AMERICAN RESERVES : The draft on our reserves 353 Apparent annual ore consumption 355 Apparent average ore grade 357 Factors determining average grade 358 Future course of ore grades" 360 Effect on pig-iron costs 363 CHAPTER XXVIII. OWNERSHIP AND CONTROL OF AMERICAN RESERVES: Stages in the evolution of opinion 365 The conservation viewpoint 367 Impossibility of actual tonnage monopoly 368 Present status of the discussion 369 Recent views on ore ownership 369 The fundamental question of ownership 371 Effects of independent operation 373 The limitations of reserve ownership 375 Minimum permissible reserves 375 Maximum advisable reserves 376 Data on actual reserves 377 Industrial effects of over-valuation 379 The feasibility of new competition 379 CHAPTER XXIX. IRON ORE RESERVES OF THE WORLD: World ore reserve estimates of 1910 381 Ore-reserves of North America 385 Dominion of Canada 386 Newfoundland 386 United States 387 Cuba 388 Mexico . . 388 CONTENTS xvii Ore reserves of South America 388 Brazil 389 Venezuela, Chile, etc 389 Ore reserves of Europe 390 World's iron-ore reserves ; summary estimate 391 Probable future discoveries 392 Duration of known ore supplies 393 Grade and phosphorus content 395 Possibility of metallurgic improvements 396 CHAPTER XXX. WORLD COMPETITION IN IRON AND STEEL: Growth of world's iron industry, 1800-1910 398 The rate of growth of the iron industry 400 Steel production, consumption and exports 401 The basal factors in world competition 402 The wor!4 competitors of the future 405 The limit of iron and steel development . . 406 Decreased demand 407 Substitute materials 408 Raw material exhaustion 409 CHAPTER XXXI. QUESTIONS OF PUBLIC POLICY: The limits of State interest 411 The encouragement of development 412 The prevention of monopoly 413 The conservation of iron-ore resources 414 The taxation of iron ores 416 Export duties 417 CHAPTER XXXII. QUESTIONS OF PRIVATE POLICY: Reasons for reserve ownership 416 Ore reserves and the banking house 420 Effects of over-valuation 422 The value of large reserves 424 The status of the low-cost producer 426 INDEX . 427 IRON ORES THEIR OCCURRENCE, VALUATION AND CONTROL CHAPTER I THE INDUSTRIAL STATUS OF IRON "Gold is for the mistress silver for the maid Copper for the craftsman, cunning at his trade. Good," said the Baron, sitting in his hall "But Iron Cold Iron is master of them all." Rewards and Fairies. Certes above rare metals iron aids man in need ever. England' 's Commonweal Expounded. A proposition to which both the modern Imperialist poet and the ancient Puritan divine can give their assent must needs be one of very broad and general application; and the two and a half centuries which have elapsed between the two statements regarding the status of iron show that we are dealing with something more than a temporary situation. It is of course the veriest commonplace to say that iron is the cheapest, the most abundant and the most useful of all the metals now employed by man. But, as is so often the case with matters of common knowledge, the very familiarity of such statements is apt to prevent careful examination of the basis on which they rest, and few will realize to what an extent iron differs from J-he other metals in these regards. In this volume we are about to take up the study of iron ores in their various industrial and political relations; and before doing this it seems advisable to give some consideration to certain facts relative to the metal into which these ores will ultimately be transformed This introductory discussion, brief though it must necessarily be, will serve to give some idea as to the present industrial status of the metal iron, and will also emphasize the fact that questions as to iron-ore resources are not merely of local or individual inter- est, but are of the greatest possible general importance. 1 2 IRON ORES In taking up consideration of the industrial status of iron, and its relative commercial importance among the metals, it is of course inadvisable to confine attention to the conditions in any one country, for improvements in transportation are tending toward a very broad world-market in such products. It may also be noted that the distribution of metallic ore deposits throughout the world is so irregular that much of the truth is missed if we narrow the scope of the study. Fortunately the statistical data as to metal production and prices are extensive and reasonably trustworthy, so that there will be little difficulty in taking up the question on the broadest possible basis. Relative Tonnage Importance. At the outset, a statement as to relative tonnage will serve as a convenient starting-point. Pig iron now makes up 95 percent of the total tonnage of all kinds of metal annually produced in the world. The exact facts on this point, as shown by the statistics for 1910, are given in the table below. The data in this table referring to production of lead, copper, zinc, tin, aluminum, nickel, silver and quicksilver are taken from the annual publication of the Metallgesellschaft of Frankfort; the gold tonnage is calculated from reports of the Director of the United States Mint; and the pig-iron tonnage is an estimate by the present writer, based on official reports of the various iron-producing countries. WORLD'S METAL OUTPUT, 1910; TONNAGE AND VALUE Metal Metric tons Total value, dollars Pig iron 65,300,000 $979,500,000 Lead 1,139,700 74,200,000 Copper 836,900 254,850,000 Zinc 816,600 94,425,000 Tin 115,700 90,350,000 Aluminum 43,800 15,875,000 Nickel 24,500 16,325,000 Silver 7,437 135,475,000 Quicksilver 4,100 5,575,000 Gold 704 454,214,000 68,289,441 $2,120,789,000 Relative Total Values. The disproportion between the tonnage of iron and that of all other metals combined, as shown in the preceding table, is so great that there is no need to empha- size the fact by putting it in graphic form. But with regard to the question of total values, the comparative figures are closer THE INDUSTRIAL STATUS OF IRON I "fl CO Tt^ CO CO CO CO CO CO CO CO -t > OOOST-HT^OSOO' ICO ^^ ^H^-lrHi-HCOTt < CQ H^ ^ H orco"o"co"c v Q'^c CO CO v-u WJ >^< *< IAJ ^.N WJ i^. 2 O ^ -""8888| ^ ^ r~ -.- _- .> ^ .- ri- .r ^ w re GO OS OS OS OS ^ OS cog cT o CO CO OOOOCDOOOO^i g gjn O5OSOSOSO5OSO5OSO5OS ^ ^Oj i" Hr ^ 1lT ~ l '~ .96 76 Magnesia Sulphur Phosphoric acid 3 1 .73 10 15 2 .17 05 34 3 .36 70 1 .39 19 6Q 3 .52 .25 84 Carbon dioxide Organic matter Moisture 22 1 9. .02 .20 80 26 2 1 .57 .40 .77 28 1 .49 .07 93 30 10 1 .77 .47 .47 33 11 2 .08 .16 .04 1. Bedded carbonate, Jurassic age, Middlesboro, England. Kirchhoff. 2. Bedded carbonate, Lowmoor, Yorkshire. Kendall. 3. Bedded carbonate, Dowlais, Wales. Kendall. 4. Blackband ore, North Staffordshire. Kendall. 5. Blackband ore, Clyde basin, Scotland. Kendall. 54 IRON ORES Allowance must be made, in looking over these results, for the fact that the Middlesboro ore as mined is partly hydrated. Setting this aside, the other obvious difference is between the clayey carbonates and the carbonaceous or blackband ores. Reference to the analyses will show that the blackband ores are normally far lower in silica and alumina than are the ordinary or clayey carbonate ores. Origin of Marine Carbonates. It has been noted that the iron carbonate beds differ little in origin from bog-ore deposits. In reality, the chief reasons for discussing them separately are the somewhat different geologic associations of the carbonate beds, and their far greater industrial importance. One general process by which sedimentary iron carbonates can be formed is well understood, and as its acceptance does not involve postulating any unusual conditions or agencies it is commonly accepted as applying to most carbonate beds. It is assumed that surface or underground waters, charged with carbon dioxide, pass over or through rocks from which the waters extract iron. This iron, carried in solution as ferrous bicarbonate, finally reaches the neighborhood of the sea. Here, in brackish water swamps or lagoons, and in the presence of abundant vegetable matter, part of the carbon dioxide is abstracted from the water. The deposition of ferrous carbonate follows. When the iron carbonate is deposited in a swamp, it is apt to be precipitated as a separate bed, mixed with more or less organic matter; and thus gives rise to such deposits as the blackband ores. On the other hand, when deposition takes place in a less stagnant basin, clayey matter is apt to be precipitated along with the iron carbonate. In this case the carbonate may be originally laid down as particles diffused through the mass of clay, and the later segregation of these particles would yield the concretionary and nodular clayey carbonates. 4b. BASIN DEPOSITS IRON SILICATES Iron silicates are used as ores at only a few points in central Europe, and from a purely industrial viewpoint would not re- quire serious attention. But their mode of deposition is a matter of high importance, since many of the sedimentary oxide deposits, next to be considered, have been ascribed to the same general method of origin. Some discussion of the occurrence and rela- tions of the marine silicates will therefore serve as an introduc- tion to the more important and complicated oxide deposits. SEDIMENTARY OR BEDDED DEPOSITS 55 The Glauconites of the Ocean Bottom. The discovery that glauconite deposits are now forming over extensive areas of the present ocean bottom was one of the results of the Challenger ex- plorations, and the publication of these results may be regarded as the starting-point for all modern discussion of the origin of sedimentary iron silicates. The facts which were observed in the course of the Challenger's work, and the explanation of these facts given by Murray and Renard, have profoundly influenced later thought on subjects to which neither facts nor theory were particularly applicable. Geologists have used them in explain- ing the origin of the oolitic oxides, apparently without noticing that this was simply introducing an unnecessary and very com- plex element into an already difficult problem. The glauconite found on the present ocean bottom fills micro- scopic shells and occurs fringing the shore lines, at a distance beyond the immediate sphere of coarse mechanical deposition and at depths of 100 to 200 fathoms usually. Murray and Renard held that the process of glauconite formation involved the filling of the small shells with fine silt or mud, containing of course some iron compounds as do all muds. The organic matter of the dead animal, and the sulphates contained in sea-water, furnish the chemical agents necessary for the subse- quent changes. The iron compounds of the mud are altered first to sulphides, and later oxidized to ferric hydroxide. Simul- taneously the alumina of the mud is dissociated from the silica, and the latter reacts upon the iron oxide, finally combining with potash compounds to form the ultimate potash-iron silicate glauconite. This explanation is technically sound, and fits all the require- ments of the deposits which Murray and Renard had under particular observation. It also furnishes a satisfactory expla- nation of the occurrence of glauconite grains in shales, a feature fairly common in Cambrian and later rocks. How it applies, or fails to apply, to other greensand deposits will best be understood if we describe briefly some of the conditions which have to be met. The Cretaceous Greensands of New Jersey. The glauconite deposits occurring in the Cretaceous rocks of New Jersey have been selected as a basis for discussion, because very definite data are available with regard to their stratigraphic and chemical characteristics. 56 IRON ORES In the Cretaceous series of New Jersey, whose total thickness may be 700 feet or thereabout, there are three very definite and thick beds of greensand and several beds of clayey or sandy greensands. The purer greensand beds range, individually, from 10 to 50 feet in thickness; the three beds together give an average total thickness of perhaps 90 feet. If we include the greensand contained in the less pure beds, it might be within limits to say that during Cretaceous time over 125 feet of pure greensand was deposited all over the New Jersey Cretaceous area. So far as can be determined by drilling, the greensand forma- tions extend seaward at least to the present coast-line and probably beyond. Taking into account only the present extent, therefore, we have to deal with an area some 120 miles in length and 40 miles in width. The thickest of the three greensand beds, deposited over this area, required approximately 75 thousand million tons of iron oxide to account for the greensand which it contains. The total greensand in the Cretaceous series, on the same basis, may have required some 250 thousand million tons of ferric oxide. When thjese facts are once brought into view, it becomes obvious that the problem of greensand deposition in quantities of such magnitude involves somewhat different factors from those which might account for the formation of isolated glauconite grains in a bed of mud. One point in regard to the real composition of these iron silicates may be worthy of consideration. It is generally assumed that the small dark-colored granules are homogeneous, and the current analyses of glauconite and other silicates are based on this supposition. My own experimental work on glauconite, which has been rather extensive, tends toward another conclusion. Apparently, whenever a greensand granule is dissociated care- fully, it will yield a thin shell of silica, enclosing or enclosed by the green iron silicate. If this turns out to be the normal con- dition, we must evidently make allowance for the enclosed silica in all analyses. It might easily be true that of the 50 per- cent or so of silica which is supposed to be a component of glauconite, less than 35 percent is really part of the glauconite mineral, the remainder being merely an associated material. In that case the iron silicate as precipitated would really be richer in iron than has been usually considered. SEDIMENTARY OR BEDDED DEPOSITS 57 Aside from the greensand deposits, the other Cretaceous rocks of this area are mostly clays and sands. Limey beds are rare; and with one local exception no distinct and separate bed of limestone exists. On the other hand, all the Cretaceous rocks include large quantities of shell matter. The greensand beds themselves are made up largely of glauconite granules, with considerable quartz sand, some fine clay, and some shell matter. So far as the land conditions which accompanied these Cretaceous deposits are known, it may be said that low-lying shores, with a deeply weathered land surface, faced the Cretaceous sea. No trace of contemporaneous volcanic or other igneous activity exists. Reverting to the quantitative data which have been supplied in preceding paragraphs, it can be seen that an immense tonnage of iron oxide reached the sea-bottom in one form or another. If this were in the form of iron disseminated through mud, then something over three million million tons of such mud were abso- lutely leached of their iron to provide sufficient to form these Cretaceous green-sands. As a matter of fact, there is not the slightest reason to believe that this amount of mud was deposited in the space now occupied by the greensand; and the clays which overlie the greensands have not been leached at all, but contain normal iron contents. In order to adequately explain the relations, we must assume that the original deposit was not a clay containing disseminated iron, but a relatively pure, fine-grained iron sediment, carrying down with it a smaller proportion of clayey matter. A deposit of this type, reacting with organic matter, could furnish greensand deposits of the size and character which are now found. As to the cause of this exceptionally rich iron deposition, there are available two possibilities, which may be either alternative or supplementary. The waters of the basin may have been, temporarily, exceptionally high in iron content; or an excep- tionally powerful precipitating agent may have been at work. Drainage from the Triassic areas of sandstone and trap might have supplied iron-rich waters; climatic conditions may have favored precipitation by evaporation; or changes in the character of the waters entering the basin may have brought about de- position through chemical reactions. The matter may be dropped at this point, though it will be necessary to recur to it when the marine oxide ores are under discussion. 58 IRON ORES Silicate Ores of Europe. The silicate ores of central Europe do not offer any difficulties beyond those encountered in discuss- ing the greensands of the New Jersey Cretaceous. In fact they are less difficult in one way, for the beds are far thinner and less extensive areally. Further than that, they are associated with beds of oolitic oxide ores, so that the proof as to direct iron deposition is strengthened. These European silicate deposits include thin beds of the minerals thuringite and chamosite, whose composition has been discerned in Chapter II. 40. BASIN DEPOSITS IRON OXIDES. The ore deposits included under this particular sub-class com- prise the most extensive ore reserves now known; for they in- clude the Clinton Ores of the southern and eastern United States and eastern Canada; the Wabana ores of Newfoundland; the minette ores of Lorraine and Luxemburg; and the Mirias Geraes ores of Brazil; together with numerous less important deposits. In tonnage they make up over half the known iron ores of the world. So far as the question of origin is concerned, the Lake Superior ores might also be included here, for most of the ques- tions which arise concerning the origin of the minette and Clin- ton ores would also come to the front if we went back far enough in the history of the Lake ores. Because of their later alteration and re-concentration, however, the origin of the Lake Superior ores will be discussed elsewhere. Ores of the type here considered are so important and so widely distributed that little attention has been paid to their origin and general geologic relations. Much attention is paid to the sub- ject of igneous ores, which may or may not really exist; and ex- tensive discussion is based on the phenomena of contact deposits, which were apparently formed to be the bane of both engineer and furnaceman. Such literature as does exist relative to these vast basin deposits of hematite and brown ore shows certain limita- tions; it is based largely upon work with the microscope, which gives delicate but limited results, and it is contributed very largely by paleontologists, who tend to regard iron-ore beds chiefly as burial grounds for interesting fossils. Under these circumstances little apology need be offered if, in the present volume, the bal- SEDIMENTARY OR BEDDED DEPOSITS 59 ance swings over-low on the other side, and perhaps too much attention is paid to a discussion of structure and general geologic relations. On certain points there is substantial agreement among all the ores included in this sub-class; on others there is more or less wide variation. All of the deposits are in true sedimentary beds, associated with various other sedimentary rocks. The beds vary in thickness and number; and the ores vary in grade. In mineral character they are mostly hematites, though the minette ores of Lorraine and Luxemburg are hydrated or brown ores. In discussing the associations and general relations of the oxide or "oolitic" ores, the bulk of the illustrative material is naturally drawn from the Clinton ores of the United States and Canada, and the earlier Or4pvician ores of Newfoundland. With the Clinton ores I am personally familiar throughout most of their range, and I have spent some time on a study of the Newfound- land deposits. For local details there are also available the very careful measurements by Burchard of various southern Clinton ore beds, and the excellent data secured by the Nova Scotia Steel engineers at Wabana. For the Luxemburg-Lorraine deposits there is, of course, a large mass of published information. With regard to the ores of the Minas Geraes district of Brazil, which, according to several eminent geologists, fall in this class, less can be said. The reports available on this district deal rather with the ores themselves than with the details of their stratigraphy and associations. Extent of the Deposits. Perhaps the most satisfactory start- ing-point for a discussion of the general relations and origin of these ores will be to attempt to secure some definite idea as to the extent of the individual ore beds, and of the general areas of ore deposition. Whenever we have sufficient data, as is the case regarding the Clinton ores, we find that these are two very different matters. Taking up first the extent of individual ore beds, it is found that these iron ores are developed on about the same scale as coal seams; but that so far a's known they do not show at the maxi- mum the continuity exhibited by some of our coal beds, or the thickness shown by many salt beds. The Big Seam of Clinton iron ore in the Birmingham district of Alabama is traceable as a geologic unit for perhaps 50 miles from northeast to southwest, 60 IRON ORES and has been developed for a width of several miles. Beyond these limits proof is either lacking or indefinite; but we may fairly assume that at one particular time a basin 50 miles long and some 10 miles wide was being filled with iron oxide. This filling amounted to some 30 feet in thickness at the deepest portion of the basin; it may have averaged 10 feet over its entire extent. After allowing for the low grade of much of the ore, the fact remains that some five thousand million tons of iron oxide were laid down in a continuous deposition at one particular place and time. It will be seen that this introduces factors which are absent when small bog deposits are considered. The Big Seam basin was large, but the tonnage laid down is not by any means unique. The Wabana basin in Newfoundland, so far as can be determined now, probably had a continuous deposition amounting to seven thousand million tons of iron oxide. The Brazilian area may have shown even larger in- stances of individual deposits; and Lorraine is on almost the same scale. But we can go much further than this, in two ways. First, almost every district shows not one but several or many ore beds; second, during any given ore-depositing period the general area affected was much larger than is now considered in any single district. As regards the first point, reference to the descriptions of the various districts in Chapters XVIII and XXI will show that they exhibit from three to ten or more ore beds, even limiting consideration to those now commercially workable. As regards the second point, we must consider that the ore deposition during Clinton time in the southern and eastern United States took place over a general area some seven hundred miles in length and at least fifty miles in width. It is, of course, improbable that, at any given moment, ore deposition was taking place simultane- ously over all or any large fraction of this area; but the figures will throw some light on the general extent of the problems in- volved. It can be seen that purely local causes cannot be in- voked to explain the origin of ores which occur in such large individual basins, which were likely to occur over such vast areas, and which recurred in such frequent fashion. Associated Rocks. It has been noted that the iron-ore beds form one element in large rock series; and that they are associated and interbedded with sedimentary rocks of various types. SEDIMENTARY OR BEDDED DEPOSITS 61 In different periods and in different areas the rocks varied considerably, but in at least the Wabana and Clinton series there is a certain amount of similarity in the character of the sedimen- tation. The most striking features in each case are the abun- dance of shales associated with the ores, the relative scarcity of limestone beds, and the frequent recurrence of the various types in a thin-bedded series of alternations. For the following section which illustrates very remarkably both the frequency and the character of the alternations, I am indebted to Messrs. Cantley and Chambers of the Nova Scotia Steel & Coal Co. The section starts some distance above the main or Dominion ore seam in the Wabana trough (Newfound- land), passes through it at one of its thicker phases, and terminates some distance below it. It may be noted in passing that the seam here shows well over 20 feet of clean ore, but at present we are concerned more closely with the way in which thin alternations of shales, sandstone and ore are exemplified by this particular section. Feet Inches Shale 1 Ore 6 Shale 1 Ore 4 Shale 1 Ore 5 Shale 2 Ore 1 4 Shale 2 Ore 1 9 Sandstone, ferruginous. 1 Ore 1 2 Sandstone 1 Lean ore 8 Shale 9 Sandstone 4 Ore and shale mixed.. 1 8 Shale 1 Sandstone 6 1 Shale 5 Ore 1 2 Sandstone 1 8 Instances bearing on the same point could be multiplied to any desired extent, for careful examination of the sections shown Feet Inches Shales 25 3 Iron pyrite 3 Shale 2 Iron pyrite 2 Shale 1 3 Iron pyrite 6 Sandstone 4 2 Lean ore 2 Sandstone 6 Lean ore 2 Shale and sandstone 1 6 Lean ore 3 Sandstone 1 8 Ore 5 Shale 2 Ore.. 7 Shale 1 Ore 6 10 Sandstone, ferruginous. 2 Ore 4 Shale 9 Ore.. 4 62 IRON ORES in all of our own Clinton ore districts shows the same type of occurrence. Related Phenomena. Among the related phenomena which help to throw some light on the conditions surrounding the formation of these ore-bodies, are the occurrence of fossil organ- isms, of ripple-marks, and of mud-cracks. Fossil shells, corals, crinoids, etc., occur not only in the beds associated with the ores, but at times in the ore beds themselves. In this latter case the fossils may be partly or completely replaced by iron oxide; and in some instances the bulk of an ore bed is made up of ore formed in this way. At other times the fossil is merely coated with a layer of iron oxide. The fossils associated with the ore series are of marine type; and they are not notably different in type and size from examples of the same species occurring elsewhere. The ores must therefore have been deposited in marine basins, and these basins could not have been entirely or steadily cut off from communication with the open sea. On the other hand, we have direct evidence that the basins were very shallow, and subject to frequent small oscillations of level. The shale beds associated with the ores often show ripple- marks and mud-cracks; and at Wabana the floor of the Dominion seam is similarly marked. Structure of the Ores. The marine oxide ores differ greatly in structure in different regions, in different beds, and even in different portions of the same bed. This fact has not been given sufficient attention in the past, and to its neglect are due some of the most interesting controversial writings on the subject of origin. It is perhaps a natural tendency of human nature to assume that the only possible mode of origin is that which the author happens to have studied. As regards internal structure, we may distinguish a number of general types which we are likely to encounter in any ore field, though some are far commoner and more important than others. There are, commonest and best known, the oolitic ores, in which the iron ore occurs as small spherical or flattened forms consisting sometimes of a coating of iron oxide surrounding a central grain of silica; and sometimes a fairly homogeneous oolite of iron oxide with or without silica. The individual oolites are often held together by a cement of lime carbonate or clay. Second in SEDIMENTARY OR BEDDED DEPOSITS 63 importance are the fossil ores, in which fragments of fossils are replaced by iron oxide. Third in extent, but primary in their FIG. 5. Types of Clinton sedimentary hematites. Upper figure oolitic ore; lower figure hematite replacing and filling between fossil fragments. geologic significance, we find ores in which the iron oxide is spread merely as a thin coating over a quartz grain or pebble, or in which it occurs as a fine-grained iron mud. 64 IRON ORES From studies of the two types first named the oolitic and the fossil ores, several divergent theories of ore origin have been developed. According to one well-known theory, the ores originate mostly by the replacement of fossil fragments on the floor of the basin in which these fragments lay. According to other theories, calcareous or siliceous oolites were first formed, and later these were completely or partly replaced by iron oxide. Looking at the matter very generally, it would seem fair to suggest that investigators have concentrated their attention upon local and accidental circumstances, and have overlooked the more basal phenomenon. The element which is universal and persistent is that, during certain periods, iron oxide was actually precipitated from water; the accidental element arises from the material which, in any given place, this iron oxide combined with, coated or replaced. Sand grains and fossil fragments must occur in every ocean basin, and in attempting to explain the origin of these oxide ores we must seek a more general reason for the heavy precipitation of iron oxide in these particular beds. Composition of the Original Precipitate. From the industrial standpoint the point of chief interest is, of course, the actual bulk composition of the ores as they now exist; and this will be discussed in more detail in the later chapters dealing with the local occurrence of the various ores. For the purposes of the present chapter it will be of interest to attempt to form some idea of the composition of the iron sediment as originally precipitated, and before the oolites or granules were cemented together by lime or other foreign matter. At first sight it might seem as if such a line of inquiry could not possibly give satisfactory results, but on investigation it will be found that many of the difficulties disappear when they are faced, and that the final results are sufficiently close to be very serviceable. A number of complete analyses of sedimentary oxide ores are on record and some of these relate to ores which, for one reason or another, may fairly be considered as approaching in com- position the original iron deposits. The Wabana ores, for ex- ample, have relatively little cementing material included in their bulk; while in the southern United States the leached or "soft" ores have been cleared of their cementing matter by natural processes. Unfortunately no Lorraine analyses fit for this use SEDIMENTARY OR BEDDED DEPOSITS 65 are at my disposal, and the Brazilian ores can be omitted for other reasons. ANALYSES OF SEDIMENTARY IRON DEPOSITS 12345 Ferricoxide 76.94 75.46 73.53 76.77 73.33 Ferrous oxide 0.10 0.69 0.46 0.19 (Metallic iron) 53.86 51.12 52.11 54.15 51.60 Manganese 0.65 0.31 0.26 0.15 0.23 Phosphorus 0.85 0.47 0.51 0.648 0.22 Sulphur 0.018 0.02 0.11 0.086 0.14 Silica 9.48 7.62 10.97 10.63 16.70 Alumna.. 3.55 4.31 6.94 5.64 6.62 Lime 1.81 0.40 2.28 2.25 0.27 Magnesia Potash Soda. . 0.84 n. d. n. d. 0.47 0.30 0.13 0.73 n. d. n. d. 0.52 0.17 0.01 0.22 n. d. n. d. Carbon dioxide 4.32 0.32 0.07 0.09 0.07 Combined water 4.32 9.35 2.96 1.71 1.53 1. Wabana ore, Newfoundland; analysis quoted by Cantley. 2: Clinton ore, Chamberlain, Tenn.; G. Steiger, anal., Bull. 16, Tenn. Geol. Sur. 3. Clinton ore, Rhea Springs, Tenn; 10th Census U. S., Vol. XV. 4. Clinton ore, Attalla, Ala; 10th Census U. S., Vol. XV.' 5. Clinton ore, Birmingham, Ala.; 10th Census U. S., Vol. XV. The analyses presented in the preceding table are surprisingly concordant, in view of the facts that they cover ores of different geologic ages and from widely separated localities. As to their results, it is obvious that carbon dioxide may be disregarded as representing incomplete leaching; and that combined water may also be set aside, as representing recent hydration. The lime, magnesia, soda and potash are small and variable, and are of interest chiefly as negative indications. The sulphur is variable, for as elsewhere explained it is principally confined to certain layers. The main components of the iron deposit are evidently iron oxide, silica and alumina; which if combined water and carbon dioxide be allowed for, make up together from 93 to 98 percent of the total mass of the ore. They can be regarded as the three 5 66 IRON ORES essential constituents. There is no proof that lime carbonate was present originally in oolitic form; if so, it has been removed com- pletely, and was not re-deposited anywhere in the series. So far as we can judge from this line of investigation, the original deposition was in the form of a finely divided iron oxide, chiefly precipitated from solution, which in its descent trapped and carried down with it a certain amount of finely divided clayey matter. Local conditions determined the details of the process and of the results. In some places the descending precipitate fell upon masses of shell fragments, which it coated or replaced; in others it coated sand grains; in a few basins it may have taken a truly oolitic form or have replaced earlier oolites. As to the physical, topographic and chemical conditions which caused or favored such exceptionally heavy precipitation of a fairly pure iron oxide the proof must be sought in other directions. Summary of Relations. Having discussed various phases of the structural relations and associations of the basin ores in detail, it will be well to summarize the matter before going further. In examining the ores of any particular age and district we commonly find that the general area of ore deposition has been very large, and that even the individual ore beds are sometimes very thick and extensive. Further than this, there are commonly a number of ore beds scattered through the rocks of the ore-bearing series. These ore beds are separated by, and associated with other rocks, which frequently occur in thin alter- nations. These accompanying rocks are predominantly fine- grained shales; sandstone and limestone also occur, but much less frequently than shale; and there is usually more sandstone than limestone. The entire series may make up several hundred feet in thickness, and through it the shales are usually higher in iron than ordinary clays and shales; and the sandstones are commonly ferruginous to a marked extent. The entire series therefore marks a period during which all the deposits were of high iron content, and during which at recurrent intervals beds of exceptionally high iron content the iron ores were laid down. Marine fossils occur in all the rocks, and even in the iron ore itself. The shale beds often show ripple-marks and mud-cracks; and in places the floor of an ore bed shows similar markings. 41 SEDIMENTARY OR BEDDED DEPOSITS 67 The ore itself may be of truly oolitic type, it may be a ferriferous coating on sand grains or quartz pebbles, and in places it is a filling or replacement of fossils. It is normally high in phosphorus and rather high in sulphur. It is also commonly higher in alumina, as compared with silica, than are most other iron ores. When a layer of iron pyrite occurs, it is not in the middle of an ore bed, but at its top or bottom. There are practically ho nodules of pyrite, or of unaltered iron carbonate, within the ore beds. All of these facts must be taken into consideration in attempting to formulate any adequate theory of origin for the marine oxide ores. The Question of Origin. The facts in the case having been separately stated, it remains to be seen whether or not they will, considered together, throw any light on the origin of the marine deposits of oxide ores. By keeping strictly to the general conditions, and avoiding purely local and accidental phenomena it seems as if some progress might be made in that direction. There are obviously several factors which must have co- operated in order that an ore deposit could be formed, possessing the associations, the structure and the composition which have been described as occurring in most of the deposits of the class under consideration. Put into the most general wording, there must have been a supply of iron in solution, an agency which caused its precipitation, and a favorable place for the deposit to form. For convenience these three factors will be considered in the reverse order to that in which they have just been named. (1) The structural relations of the deposits, and the character of their associated rocks, imply that the deposition must have taken place in long, narrow basins, probably parallel to the coast-line, generally shallow, subject to frequent oscillations of level ; and probably at least part of the time entirely cut off from the access of sea-water. (2) In a basin of the type described dissolved iron compounds would be carried by the sea- water; and additional supplies might be derived from streams feeding directly into the basin from the landward side. The water of the basin probably carried more iron than average sea-water of the present day, for otherwise sufficient evaporation to produce iron deposits would normally have resulted in a concurrent or later deposition of other salts. 68 IRON ORES But, on the other hand, we can not assume that at the outset these basins were filled with a very rich iron solution, for the character of the fossils does not bear out that conclusion. Further than this, we must allow for the possibility, which in some instances seems to be almost a certainty, that in part at least the iron oxide was present in suspension as a fine-grained iron mud. One additional fragment of evidence may be noted. The clayey matter which was precipitated with the iron oxide, as well as the shaley material which is interstratified with the ore beds, has certain points of interest. In general all of these claye}^ sediments seem to be somewhat higher in alumina and iron, and lower in silica, than normal shales and clays. They can hardly have been derived from freshly weathered granitic or similar rocks, but point rather to derivation from deeply weathered limestones or basic igneous rocks. If the latter, the relative scarcity of limestone earlier in the ore series is remarkable, for the weathering of fresh basic rocks would certainly yield an abun- dance of lime in solution. So, in the last analysis, we come to the conclusion that there is no absolute necessity for postulating concurrent igneous activity of any sort, though that may well enough have occurred. The more probable source of both the iron-charged waters and the fine-grained clayey sediments was from a low-lying, deeply weathered land surface, draining down to a shallow sea. (3) Whatever the character of the water may have been at the outset, some agency was available which sufficed to precipitate the iron in the form of oxide. So far as the history of the deposits can be made out from the sedimentary record, the agency most likley to produce this effect was evaporation of the basins, at least to the point of iron deposition. We do know that the basins were dried at intervals, and then refilled; so that iron ores are covered by shales and sandstones. After each period of partial or complete dessication there was a submergence, a temporary cessation of iron deposition, and a deposition of (usually) fine-grained clay or (more rarely) fine sands. It is, of course, possible enough that organic matter played some part, in some areas, in the matter; and that locally the composi- tion and character of the iron deposits may have been seriously influenced in this way. In places there was undoubtedly replace- SEDIMENTARY OR BEDDED DEPOSITS 69 ment by iron oxide of shell matter on the sea-bottom; at other points or in other periods there may have been deposition of the glauconite type; it is even possible that replacement of originally calcareous oolites may have occurred in some ore basins. But, after all, these are merely secondary and local phenomena. Such infiltrations and replacements could not have taken place unless an abnormal iron supply were present. Two widely variant types of Clinton ore, differing greatly not only from each other but from all commercial ores, may be noted as tending to throw some light on what extreme products could be made in the Clinton seas. One occurs in West Virginia, where we spent considerable time in tracing back some very remarkable float ore. When the original location was discovered, the ore was found to occur in several very thin beds, with no reason to believe that they had been formed except as sediments, and with no trace of later alteration and enrichment. They were unwork- able, for the thickest bed was only some 8 inches, and the total thickness of the several beds did not amount to over a foot. But the ore itself was a steely blue hematite, grading from 60 to 65 percent metallic iron, and well below the Bessemer limit in phosphorus. At the other extreme of the series we may place certain beds in the Clinton rocks of eastern Alabama, where quartz pebbles up to several inches in diameter are coated with relatively pure iron oxide. It will be seen that the one instance suggests that a very pure and concentrated iron solution was available in some basins; the other, that organic action, oolites and fossil frag- ments were not necessarily a part of the process. Typical Deposits. The iron-ore fields of the world offer three examples of iron oxide deposition on a truly enormous scale, with a possible fourth example of even greater extent. The three well-determined examples are the (1) Clinton ore deposits of the eastern and southern United States; (2) the minette ore deposits of the Lorraine-Luxembourg area in Europe, and (3) the Wab- ana basin of Newfoundland. The fourth doubtful example, according to some views, would be the Brazilian area. Of the well-known examples, the original deposition left workable commercial ores in the three cases cited while in the Lake Superior district the ores as originally deposited were too-lean to be com- mercially available, but through subsequent natural concentration these original lean ores have given rise to workable deposits. 70 IRON ORES The amount of iron involved in these great basin deposits is very large. I have shown elsewhere, for example, that in the southern United States the Clinton beds contained a total of over 86 thousand million tons of ore, equivalent to over 26 thou- sand million tons of metallic iron. If all of this iron were derived from the leaching of rocks whose iron content corresponded to that of the average earth's crust, as now known, over eight mil- lions of millions of tons of rock must have been decomposed to fur- nish the iron finally deposited in this part of the Clinton series. Similar calculations for the Luxembourg basin give results of about the same degree of magnitude, while the Lake Superior and Brazilian basins would give far higher totals. The supply of the material necessary for these great basin deposits therefore in- volved geologic work on a vast scale. But, further than this, it also involved great rapidity in the rate of this work. CHAPTER VI REPLACEMENTS AND FILLINGS In this group are included such iron-ore deposits as have origi- nated through the deposition of an iron mineral in a pre-existing rock mass. The iron is always brought to its point of deposit in solution, but many variations are shown in the various stages of this process. For example, the iron-bearing water may be ascending or descending, heated or cold; the deposition may take place in pores or cavities, or usually by actual replacement of the rock mass; the process may be incidental to igneous action, or entirely independent of it. It would be possible, taking advan- tage of these variations in the details of the process, to subdivide this group into an infinite number of sub-classes. The simple grouping shown below, however, seems to cover all actual requirements. Disregarding possible but unimportant variations, four sub- groups of Class C are to be distinguished; 1. Cavity and pore fillings; in which pre-existing spaces in a rock mass are filled by the deposition of an iron mineral. 2. Normal replacements; in which a mass of pre-existing rock is actually replaced with an iron mineral, deposited from solution in- dependent of igneous action. 3. Secondary concentrations; in which a low-grade ore is en- riched by iron derived from the upper portions of the ore bed itself. 4. Contact replacement; in which a mass of pre-existing rock is replaced with an iron mineral, deposited from heated solutions set in action by local igneous intrusions. From an industrial standpoint, replacement deposits rank next to the 1 sedimentary deposits in importance, for they include the Lake Superior hematites, most of our eastern and southern brown ores, and many brown ores, hematites and magnetites elsewhere in the United States and abroad. 71 72 IRON ORES 1. CAVE AND CAVITY FILLINGS Rock-masses of any type or kind may contain cavities of greater or lesser extent, even if nothing more than spaces widened out by solution along joint planes. Limestone, however, is peculiarly subject to attack by even slightly acid waters, and by far the majority of large open cavities or caves occur in lime- stone. Waters penetrating from the surface, and charged with carbon dioxide or other acid agent, readily dissolve out channels and chambers in the rock. This much being generally accepted, it is obviously conceivable that other waters, carrying iron carbonate or other iron salt in solution, might refill such solution cavities with a deposit of iron ore; and this possible mode of origin has been given consideration in various published discussions on the formation of brown iron- ore deposits. Evidence in its favor is, of course, afforded by the frequent occurrence in brown-ore deposits of stalactites and other curiously shaped masses of brown ore, which could hardly have assumed these particular forms except in an open space of some kind. In the writer's opinion it is easily possible to lay too much stress upon this particular mode of brown-ore origin. It is undoubtedly true that brown-ore deposits can originate in this way; it is also true that in almost all of our brown-ore deposits a certain amount of such cavity rilling has taken place: but it is highly improbable that any large deposit at present worked has originated entirely or principally in this way. Replacement has been a far more important method. In spite of frequent discussion of cavity rilling as a mode of genesis, no published accounts of the actual formation of iron ores in caves have ever come to the writer's attention. Under these circumstances the following account of a small ore deposit still in progress of formation may be of interest. It is prepared from notes made at various intervals some years ago, while engaged in development work in the iron region lying along the Chesapeake and Ohio Railroad in Virginia. The old fluxing quarry of the Lowmoor Iron Company, near Lowmoor station, is located in flat-lying limestone beds belonging to the upper portion of the Helderberg or Lewistown series. It was worked in great rooms or chambers, carried up to a roof of REPLACEMENTS AND FILLINGS 73 Oriskany sandstone, which in turn is overlain by black Devonian shales. The sandstone is firm, but fairly porous; the shales contain a rather high percentage of iron, in the form of carbonate nodules, or pyrite, and of oxide. During operation the quarry rooms at several points broke into old water-channels and caves, varying greatly in size. One of these was, at the time of my study of the district, filling with a deposit of brown iron ore. The deposited material was derived from infiltrating waters, which had become charged with iron carbonate during their downward passage through the black shales above the quarry. Water enters this particular cave at several points, either percolating through the strata or flowing through small channels dissolved out of the limestone. This water carries various materials, some in solution and some in suspension, and the different products of deposition are of interest. One of the larger channels, for example, brought into the cave a large amount of very fine clayey matter, carrying it of course entirely in suspension. This clay was spread out as an even deposit over the floor of the cavity. Samples which I took were analyzed by Mr. J. H. Gibboney with the following results: ANALYSIS OF CAVE CLAY, LOWMOOR, VA. Silica 55 . 64 percent Alumina 23 . 80 Ferric oxide 6.18 Titanic oxide 0.10 Lime . 52 Magnesia . 54 Soda 0.51 Potash 5 . 20 This analysis corresponds quite closely with a number of analyses of the unaltered black shale; and the cave clay has prob- ably been subjected to relatively little change during its trans- portation and deposition. The waters seeping through the strata, having been filtered fairly free from all suspended matter, give deposits of strikingly different character from the clay just mentioned. The seepage waters carry iron carbonate in solution and this is deposited where the waters encounter air and free space on entering the cave. The deposition takes place in two distinct forms: (1) as an ochre- 74 IRON ORES ous powder or mud, sometimes aggregated into hard lumps, on the cave floor, and (2) as iron stalactites hanging from the roof of the cave. Samples of these iron deposits analyzed by Mr. Gibboney gave the following results : ANALYSES OF IRON STALACTITES AND OCHER, LOWMOOR, VA. 123 Metallic iron 46.88 54.56 29.84 Metallic manganese 1.12 0. 49 4 . 16 Silica 5.40 6.29 24.46 Alumina 11.87 5.45 9.10 Lime 0.24 0.16 0.20 Magnesia 0.24 0.33 1.28 Sulphur 0.05 0.03 0.06 Of the above analyses, No. 1 represents the composition of the iron stalactites hanging from the cave roof; and No. 2 is the aver- age of several lumps of the hard ocher formed by deposition on the floor of the cave. Both of these, it will be noted, are very good brown ores, far above the average commercial ore of that district, and comparing favorably with any of the better class of eastern or southern brown ores. Sample No. 3 is of fine ocher mixed with the cave clay; and might perhaps be accepted as representing the average of the material with which the cave would finally be filled, provided the two classes of deposits should keep coming in at about their existing rate. Certain irregularities in the analyses may be noted the high manganese determination in No. 3 and the high alumina value in No. 1. The first of these requires little comment, for the presence of even a small nodule of manganese oxide in the sample would account for it. The high alumina of No. 1, however, is more noteworthy, for if confirmed it implies that the stalactites contain, in addition to brown ore, bauxite or some related aluminum hydroxide. The preceding description of a cave deposit in actual process of formation is of interest chiefly as throwing some light on the difficulty of discriminating deposits formed in this manner after the process has been completed. It is obvious that, given suffi- cient time, a commercial deposit might easily be developed in this way. Its ores would agree closely in composition with any which might have been formed by direct replacement in the same series; and the only clues to the method of origin would have to be REPLACEMENTS AND FILLINGS 75 sought in the form of the deposit and the physical make-up of the ore. A deposit of moderate size, with irregular roof and sides but a fairly level floor, especially if occurring in a flat-lying limestone series, might reasonably be suspected of having origi- nated as a cave or cavity filling. If the ores were entirely iron oxides, with no trace of iron carbonate, even near the limestone contact, this suspicion would be strengthened. If, in addition, stalactitic forms of iron oxide were very common, the proof would approach certainty. Almost every brown-ore deposit, whatever its origin, contains a few stalactites, but extreme frequency of this form would point toward cave origin for the entire deposit. Origin in this manner has been ascribed to many iron-ore deposits, but the proof is in general inconclusive so far as large deposits are concerned. At present the hematite deposits occur- ring in Dent, Crawford and other counties in southeast Missouri are the most important depositc whose origin is thought to be of this general type. Crane, in a recent report, 1 describes these deposits in detail, and considers that they are due to the altera- tion of iron sulphide, originally deposited in limestone sinks. 2. NORMAL REPLACEMENTS In distinction from the class of deposits which has just been discussed, replacement deposits originate not by the filling of a pre-existing cavity, but by the actual substitution of an iron ore, particle for particle, for the body of an existing rock-mass. In the commonest case, iron-bearing waters percolating through limestone remove the calcium carbonate in solution and deposit their iron in its place, usually in the form of iron carbonate. In less common but still important cases, sandstones and other sili- ceous rocks are similarly replaced by iron ores. The iron mineral, as deposited, may be carbonate, sulphide or oxide; but subsequent alterations will usually change its mineral character without any change in the form of the ore deposit. As now found, the bulk of our normal replacement deposits occur as brown ores, though hematite deposits of this type are fairly frequent and magnetite deposits are known. 1 Crane, G. W. The Iron Ores of Missouri, Vol. X, 2d series, Reports Me. Geol. Survey, 1912, Chapter VI especially. 76 IRON ORES When the rock enclosing the ore deposit is limestone, there is quite a sharp and definite distinction between cavity fillings and replacements, for the solution of limestone usually results in complete removal of the mass of the rock. But it is different when a porous sandstone (or a sandstone or shale in which the siliceous matter is held together by calcareous cement) is the subject of attack. For in this case the distinction between pore filling and replacement is very indefinite, and the two processes merge into each other very gradually. Certain of these differ- Residual Clays Limestone Shale Ore Replacing Limestone k-Rock Surface. First Stage. B'Rock Surface, Second Stage. ^-Ground Surface. Second Stage. FIG. 6. States in origin of brown-ore deposit. Figure at left shows first stage, in which replacement of limestone beds has given rise to tabular steeply dipping ore-bodies. The figure at right shows effects of later weathering of these ore-bodies, the final result being irregular surficial deposits underlain in depth by the replacement beds. ences arising from the original character of the replaced rock have a commercial as well as a geological importance, and from either point of view they will justify further discussion. Living in the temperate zone, we become insensibly accustomed to certain types of rock decay, and it is difficult to realize that over the greater extent of the earth's land surface the conditions as to weathering are very different. In the northern United States, for example, we find that limestone is extremely soluble, while siliceous rocks are extremely resistant to solution by percolating waters. All of our recent northern brown-ore deposits are seen REPLACEMENTS AND FILLINGS 77 to be replacements of limestone, with practically no trace of attack on sandstones or igneous rocks. But as we go southward conditions change in this regard. Even in Virginia we find sand- stones beginning to show replacement by iron oxide, and in Georgia the siliceous rocks contain some notable ore deposits. Further south this change in relative solubility becomes still more marked, and it has important results on the formation and local- ization of ore deposits. Relations to the Ground Surface. Since normal replacements have been formed mostly by waters acting from the ground sur- face downward, the deposits have a very definite relation to the surface as it existed at the time of their formation. It may further be noted that in actual practice we have only to deal with very recent replacements, originating during a period in which the topography was not markedly different from that shown at present, for replacement deposits of older date would by this time have been removed, covered up by later deposits, or rendered unrecognizable. It is only in very rare cases that we find an ore deposit representing pre-Tertiary replacement. Owing to those conditions, the replacement deposits actually worked are commonly largest and richest at or very near the ground surface, and they become smaller with depth and finally terminate in barren rock at no great depth. In the Oriskany district of Virginia, where conditions have been exceptionally favorable to deep replacement in steeply dipping beds, the deepest deposits known are in the neighborhood of 600 feet below the present surface; the bulk of the ore of the district has been mined within 300 feet of the surface. Extent of Deposit. Replacement deposits of course vary greatly in their continuity, size and tonnage, but where circum- stances have been favorable individual ore-bodies are oftentimes far larger than is generally understood. A few instances, cover- ing actual conditions in known ore-bodies, may be of interest in this connection. The ore-body worked at the Oriskany mine in Virginia, which is a practically continuous deposit of the replacement type, has been estimated to contain some six million tons of ore. At the Rich Patch mines, in the same district, there have been surface and underground workings on one absolutely continuous ore- body 5600 feet in length, with an average of 400 feet or more in 78 IRON ORES depth, and of 35 feet in width. This corresponds to from three to four million tons of commercial (washed) ore in the individual deposit. When the inquiry is extended so as to cover the entire area with- in which replacement has been common, the figures are of course on a larger scale. In the Oriskany district of Virginia and West Virginia, for example, there is an area some 100 miles or moreint length, and from 20 to 30 in width, within which almost every mile of Helderberg limestone outcrop will show some replacement by iron ore. The entire group of deposits thus formed may easily contain over 100 million tons of ore of various grades. Form of the Deposit. The form taken by a replacement de- posit is to some extent dependent on the character of the rock replaced, but to a larger degree depends on the attitude of the bedding in the original rock. Other things being equal, a replacement deposit will assume a tabular form, parallel to the rock bedding, when that bedding dips at a high angle to horizontal. In this case percolating waters are apt to pass quite readily down a particularly permeable bed, so that the bulk of the solution and replacement are apt to occur within that particular bed or layer. We thus obtain finally ore deposits having considerable extent along the outcrop, a relatively narrow width across the beds, and a depth much greater than the width but usually less than the outcrop length. This type of deposit is well exemplified by the Oriskany brown ores of Virginia, which have originated by replacement of a steeply dip- ping limestone bed. When, in place of a steeply dipping rock series made up of beds varying in solubility, we have to deal with a flat-lying series, or a very homogeneous series, the results as to form of deposit are far different. In either of these latter cases the paths of the perco- lating waters are not so sharply limited by particular beds, and the final result is commonly an ore deposit of irregular basin shape, perhaps approximately circular or oval in its plan at the outcrop, but narrowing in both directions with depth. When the rock attacked has not been limestone, but sandstone or a metamorphic or igneous siliceous rock, the boundaries of the replacement deposit are apt to be much more irregular. There is a tendency to form stringers and offshoots, following joint planes or other relatively non-resistant portions of the rock. REPLACEMENTS AND FILLINGS 79 LEET MINE W. STOCK BRIDGE MASS. DAVIS MINE -LAKEVILLE.CONN. NATIONAL MINE PAWLING, NY. 'AMENIA MINE AMENIA, NY ORE HILL MINE LAKEVILLE,CONN. [ Hudson Schisf Stockbr/dge Limestone Probable Extension of Beds feoi^gj Li mo nfe m C/ay tlaT pTI S/afer/fe FIG. 7. Effect of structure on replacement ore-bodies. These cross-sections of actual ore-bodies in the well-known Salisbury district of New York-New England show the varied effects due to dif- ferences in composition and attitude of the replaced rocks. They also show, in some instances, the occurrence of iron carbonate in the deeper levels, a characteristic of brown-ore replacements of limestone. 80 IRON ORES Composition of the Ores. At and near the surface the iron ores which have originated by normal replacement are commonly brown ores, though hematite also occurs in deposits of this type. Occasionally the ores do not change in mineral character in depth, but when a limestone has been the rock replaced we are apt to find some of the original iron carbonate at and near the base and sides of the ore deposit. Considered either as commercial materials or as geologic prod- ucts, the iron ores of a replacement deposit usually contain constituents from two different sources. Part of their compo- nents came in with the percolating iron-laden water; in this class we may include the iron of the ore, and usually most if not all of the manganese, sulphur and phosphorus it may carry. But there is another and often very important part of the existing ore which does not represent material carried in by the water, but material left behind during the solution of the rock which has been replaced. Thus the ore may contain fragments of chert or flint, left behind by the solution of cherty limestone; it may contain sand grains, residual from a replaced sandstone; or it may carry clayey matter, usually left behind by a replaced limestone. Later Weathering. The Oriskany brown ores of Virginia, which have been discussed as typical examples of replacement deposits, were selected for such treatment because in this instance all of the geological elements entering into the problem are fairly well known; the extensive workings have supplied adequate data as to form and composition; and, most important of all, in this particular district the effects of later weathering have not been such as to modify or conceal the real relations of the ore to its enclosing and associated rocks. In this last regard the Oriskany ores are somewhat exceptional among Southern brown ores, for most other districts have suffered greatly from weathering and decomposition of the rocks subse- quent to the formation of the ore deposit. Chief Typical Deposits. From the standpoint of tonnage and industrial importance, the ore deposits of this type include a number of interesting examples. Among these may be noted the Oriskany brown ores of Virginia, the English hematites, the hematites and carbonates of north Spain and southern France, and the hematites of the Santiago district in Cuba. These are REPLACEMENTS AND FILLINGS 81 described in later chapters where additional local details con- cerning the characters and relations of normal replacement de- posits may be found. It is highly probable that almost all of the brown ores of the southern and eastern United States had an origin that is due, in some degree, to replacement. But in most cases subsequent rock weathering has affected the form of the deposit very mark- edly, and has in some cases introduced ore deposition of another type. As the deposits stand now, it is questionable whether they are due mostly to replacement or mostly to later residual action and re-deposition. When any particular case can be studied in proper detail, it is commonly possible to come to some conclusion regarding this point; but the conclusion relates only to the in- stance studied, and should not be extended so as to cover brown- ore deposits in general. 3. SECONDARY CONCENTRATIONS In the normal replacements which h,ave just been discussed, the ore deposit originated by the introduction of iron minerals into a previously barren rock. But it is clear that similar pro- cesses could, under favorable conditions, be carried on within a bed of low-grade iron ore; and that they might ultimately result in such concentration of the iron as to render a portion of the bed workable. It is with deposits of this type that we have now to deal. As it happens, this class of ore deposits includes one of the most important series of iron ore deposits in the world the hematites of the Lake Superior region. It also includes some less well-known examples, among which the Hartville ore deposits of Wyoming may be noted. Extent of the Deposits. Since the formation of secondary concentrations implies the existence of a low-grade iron deposit, it is obvious that the extent of the secondary deposits must be limited by that of the pre-existing low-grade ore-bodies. In discussing the sedimentary iron ores, it was noted that there are vast deposits of iron silicates, carbonates and oxides, deposited in extensive marine basins, and formed during various periods in the earth's history. If secondary concentration should take place in a series of this type, it is evident that the final results might be remarkable, both as regards the general areal extent 82 IRON ORES 2! ^ I* JN of the ore field and the size of the individual deposits. In the Lake Superior region we have an instance of this sort, where under favorable conditions as to later concentration enormous bodies of low-grade iron mineral were acted upon with the result that the final products the exist- ing ore deposits are on a very large scale. Relations and Importance. Secondary concentrations are not in any. sense common sources of iron ore deposition, but they have an importance far out of propor- tion to their frequency, due solely to the fact that the Lake Superior ores are now usually assumed to have been formed in this manner. This one large-scale example tends to throw the process of secondary concentration into a relief to which it would not be otherwise entitled; for with the exception of the Sunrise or Hartville ore de- posits of Wyoming no other large iron ore-bodies have been attrib- uted to this method of origin. Though discussed here as closely related to normal replacements, it is readily seen that secondary concentrations have at least equally close relations with two other classes of iron deposits the sedimentary and the alter- ation or residual deposits. Their relationship to the first class arises from the fact that the forma- tion of extensive low-grade sedi- mentary iron deposits was the first REPLACEMENTS AND FILLINGS 83 step in the origin of the existing Lake Superior concentrations. Their relationship to the alteration or residual ores is perhaps even closer, for the two classes differ chiefly with regard to the transfer of iron during the alteration processes. In dealing with the formation of gossan deposits, the conversion of hard Clinton ores into soft or leached ores, and the surficial alteration of iron carbonate into brown ore, it will be seen that the initial processes are of much the same type as take place in the case of the second, ary concentrations. But in these latter the iron is removed and FIG. 9. Vertical east-west section through the Chandler mine, Vermillion range, Minnesota. (Clements.) redeposited by replacement in another part of the same bed or series, while in the residual ores the non-ferrous constituents of the original body are removed, and the iron left practically un- changed in position, though altered in mineral character. Requisite Conditions. In the formation of an important body of iron ore by secondary concentration, certain factors must co- operate in a very complete and extensive fashion. The absence 84 IRON ORES of any one of these factors, or their failure to co-operate in the proper space and time relations, will prevent the formation of a large deposit of this type. It is this complexity of origin, this necessary delicate adjustment of the contributing factors, that explain the relative scarcity of secondary concentration iron districts. The factors involved may be summarized as follows: There must be an extensive series of low-grade iron ores, and this almost inevitably involves the preliminary formation of these low-grade deposits by sedimentary means. The low-grade deposits, after formation, must be exposed to leaching, under such structural, topographic and chemical conditions that the iron leached from the exposed portions of the beds is not carried off into the general circulation but is redeposited lower down in the same series. The exact points at which such redeposition occur, and the form which the secondary deposits may take, are further determined by structural or other conditions which may restrict or localize the iron-laden water. It can be understood that in the vast majority of cases, assum- ing that an upturned series including some low-grade ore beds were leached, one of two results would happen, and that neither of these would lead to the formation of secondary concentrations. Either the non-ferrous constituents of the low-grade ores would be removed by the percolating waters, and the iron mineral left as a residual deposit; or if chemical and other conditions were favor- able for the solution of the iron, it would be taken into circulation and deposited elsewhere than in the same bed. With deposits of the types which result from either of these occurrences we are very well acquainted. But in order that a large secondary con- centration may result, there must be certain special conditions which do not commonly occur at the same time. Not only must the general structural, topographic and chemical conditions be favorable at the outset of the process, but there must be a very delicate balance between solution and redeposition; and this delicate adjustment must be maintained over long periods of time. In view of these necessary conditions, it is not a matter for surprise that the Lake Superior ores stand almost alone in their assumed mode of origin. The geologic relations and mode of origin of the Lake ores will be discussed in more detail in Chapter XVII. REPLACEMENTS AND FILLINGS 85 FIG. 10. Cross-section of ore-body in Marquette district, Michigan. (Leith and Van Hise.) Secondary concentration of the iron originally contained in the ferruginous chert formation has taken place, the ore-bodies being localized chiefly along the footwall quartzite, or above cross-cutting igneous dikes. 86 IRON ORES 4. CONTACT REPLACEMENT DEPOSITS When a fused mass of igneous rock is intruded into another series of rocks, heated solutions and vapors emanating from the fused rock may cause various chemical and mineralogical changes to take place, particularly of course in the immediate vicinity of the igneous contact. Ore deposition is one of the possible results of these activities, and many magnetite and hematite deposits have been ascribed to this class. When iron ore deposition is a result of the processes above outlined, the deposit formed may (1) replace portions of the pre-existing rock through or into which the igneous mass was injected; (2) replace portions of the igneous mass itself; or (3) form fairly distinct veins or joint fillings. Of these three types of resulting deposit, the first is the most common. Location and Form of Deposit. Limiting consideration for the moment to the case in which replacement and not vein filling is the result, it may be said that contact deposits may show con- siderable variation in both form and location, according to the local conditions under which they were formed. Normally the Sandstone Limestone 2 miles FIG. 11. Relation of contact ore deposits to igneous mines, Iron Springs district, Utah. (Leith and Harder.) bulk of the deposit will occur as an irregular mass, lying approxi- mately parallel to the contact between the igneous mass and the older rocks which the igneous mass has penetrated. But when these older rocks are bedded, and there is great variation in the REPLACEMENTS AND FILLINGS 87 composition and permeability of the different beds, there is a chance that the iron-bearing solutions or vapors will be most effective along the bedding of a readily attacked layer or bed. In this case the final result will be an ore-body of roughly tabular form, extending away from the igneous mass and finally dying out in barren rock. Contact deposits differ from normal replacements in degree, rather than in any more fundamental way. The igneous mass is effective chiefly as a source of heat, permitting more rapid and effective chemical action than would occur with waters acting at ordinary temperatures. The igneous rocks may also serve, in a subordinate capacity, as sources of part or all of the iron finally gathered into the deposit; but obviously that effect is not mark- edly different from that produced by any other rock mass. The matter might be summarized by saying that all reactions are likely to be both quicker and more complete under the influence of the igneous heat; and that some reactions which would not occur at ordinary temperatures may take place in contact deposition. As with normal replacements, limestones are by far the most readily attackable rocks under contact action. When the con- tact deposit is a replacement of a limestone mass, it is apt to be both larger and more continuous than when siliceous rocks have been attacked. Chief Known Occurrences. Iron ore deposits of contact origin are known to occur in many portions of the world, but certain areas are particularly well supplied with them, owing to their geologic history. In the western portion of the United States, for example, practically every large iron deposit between the Rocky Mountains and the Pacific Coast is of this type, the working or partly developed districts of Fierro, N. M., and Iron Springs, Utah, falling in this class. In western Canada the same state- ment holds true, the best-known examples being the ore deposits occurring on Texada and other islands off the coast of British Columbia. Almost everything so far developed or examined in Mexico and Central America has turned out to be a contact deposit; and the deposits of Chile and other areas along the west coast of South America are similar. We might summarize the matter by saying that almost every known iron deposit along the Pacific Coast, from Alaska to southern Chile, and from the actual 88 IRON ORES coast back to the easternmost mountain range, falls in the class of contact deposits. In the eastern United States we have to deal with deposits of greater age, and less certain origin. Spencer considers that the FIG. 12. soo feet FIG. 13. FIG. 12, 13. Contact ore deposits in Iron Springs district, Utah. (Leith and Harder.) Cornwall magnetites of eastern Pennsylvania are contact ores; and Keith seems to credit the Cranberry magnetites of North Carolina to the same mode of origin. In a somewhat modified Mesozo/c Limestone Diabase FIG. 14. Contact ore deposit at Cornwall, Pa. (Spencer.) form Spencer has applied the same idea to some of the New Jersey magnetites, and it is altogether likely that it could be extended to cover New York ores in both the Highlands and Adirondacks. CHAPTER VII ALTERATION DEPOSITS The various types of sedimentary and replacement deposits which have been discussed in the two preceding chapters differ in many respects, but they agree in that in each case the process of ore deposition involved the formation of a new iron deposit in a new place. In other words, one element in the process was the transportation of the iron, usually in solution, from its point of origin to its place of deposition. .We have now to deal with several related types of ore deposits in which this element of trans- portation is either entirely lacking, or else plays a very subordi- nate part. The deposits here grouped together for convenience under the head of Alteration Deposits agree in that they owe their present location, form or character to the fact that a pre-existing deposit of iron mineral has been more or less altered or re-made. The chief factor in the alteration is commonly, as in the sedimentary and replacement ores, surface or sub-surface water; but in the alteration deposits the water does little or no transportation of the iron mineral or iron compound. It will be found profitable to introduce a further restriction into our definition, and to limit the use of the term Alteration Deposits to those in which a previously unworkable body of iron mineral has been converted, essentially in place, into a deposit of workable iron ore. This definition may seem lacking in precision, but when applied to the iron deposits actually encountered it is satisfactory enough for all purposes. As thus limited certain minor types of altered ores are excluded from the present class. Among these minor though locally interesting types may be noted such instances as the usual alteration of carbonate ores to brown ores at the outcrop, the leaching of the limey Clinton ores to soft ore, the local metamorphism of oolitic hematites to magnetite (as in some Nova Scotia areas) and other changes of similar nature. These can best be treated as purely local phenomena, and not as separate types of ore deposits. 89 90 IRON ORES As thus limited, the present group includes such iron-ore deposits as have originated through the chemical and physical alteration and weathering of a pre-existing body of unworkable iron mineral or iron-bearing rock. It differs from all the groups heretofore discussed in that the ore deposits included have under- gone material change in composition without material change in place. Though a number of minor variations in process and results could be used as a basis for closer subdivision, the two chief types of alteration deposits which require recognition are : 1. Gossan deposits; in which ores are formed by the alteration of a pre-existing deposit of iron sulphide. 2. Residual deposits; in which ores are either left behind or newly formed (in place) during the decay or solution of an iron- bearing rock. In both cases, it may be noted, the iron ore which results is usually one of the hydrated oxides or brown ores. As will be seen during the discussion, there is a close gradation between the various types of alteration deposits, from the gossan ores through the solution residuals to the laterite residuals; and the separation into sub-classes is based chiefly on the convenience of treatment. GOSSAN DEPOSITS During the slow weathering of a body of pyrite of other sul- phide ore, the sulphur is largely removed in solution. This leaves a surficial capping of spongy brown ore, called " gossan." At various points in the United States iron-ore deposits of this type occur, some of which are large enough to be of commercial im- portance. This is notably the case in southwestern Virginia and in the Ducktown region of southeastern Tennessee. The Original Minerals. The two minerals which most com- monly give rise to the formation of extensive gossan deposits of brown ore are the iron sulphides, pyrite and pyrrhotite. Of these pyrite, whose chemical formula is FeS 2 , contains when pure sulphur 53.3 percent and iron 46.7 percent. Pyrrhotite carries considerably more iron and less sulphur, its formula ranging from FeySs to FenSi 2 ; its sulphur content from 39.5 percent to 38.5 percent, and its iron from 60.5 percent to 61.5 percent. This original difference in the iron content of the two sulphides ALTERATION DEPOSITS 91 has little or no effect on the relative richness of the gossan ores formed from them, for that depends upon the character and amount of the gangue and the completeness with which the sulphides have been decomposed. The original deposit may vary greatly in several important respects: it may have consisted largely of one of the sulphides, or of a mixture of them; the sulphide ore may have been rich and massive, or a lean body, high in gangue materials; the sulphide ore deposit may have been of igneous, of contact or of other origin; and its form may have been a fairly regular band or lens, or a very irregular pockety mass. All of these circumstances 1000 Feet Gossan iron ore Horizon of Low-grade iron and chalcocite copper sulphides FIG. 15. Gossan deposits at Ducktown, Tenn. (Emmons and Laney.) naturally have some effect upon the resulting gossan ore-body; but they are purely local in their nature, and each instance re- quires separate study and attention. Process of Alteration. For convenience it will be well to as- sume that we are dealing with what is perhaps the most common type, so far as the formation of workable gossan ores is concerned. In this case the original ore-body will be a fairly rich mass of pyrrhotite with considerable intermixed pyrite; the sulphide mass will be enclosed in schists or other metamorphic rocks; and it will be roughly lenticular in form. The entire rock series will dip at a rather high angle, so that the sulphide bodies will outcrop as long narrow bands, varying in width, and at intervals narrowing very markedly or pinching out entirely. When explored in depth these sulphide bands will show considerable persistence, 92 IRON ORES but also the same narrowing and pinching which they exhibited at intervals along the outcrop. The general effect will therefore be that of a thin lens, or of a series of such lenses, more or less connected. Atmospheric attack soon decomposes either of the two iron sulphides, and as the general weathering of the district continues, Nw. 7 //' ' / - 200 Feet / ' 6 rH L VL ScMst Ore zone Gossan Chalcocite ore FIG. 16. Gossan formation in the Mary mine, Ducktown, Tenn. (Emmons and Laney.) the process of alteration is carried deeper and deeper into the original sulphide mass, until there may be many feet of leached material left as a residual. This residual material will contain most of the iron from the original sulphide, along with whatever quartz or other gangue matter was contained in the sulphide ore- ALTERATION DEPOSITS 93 body. The iron which has thus been left behind during the weathering will be in the form of one of the hydrated oxides or brown ores/ and under favorable conditions will constitute a workable iron ore. The process of weathering involves several stages, but the final effect is the formation of sulphuric acid, which is carried off in the waters; and of iron sulphate, which remains behind and alters to brown ore. Character of the Gossan Ores. The residual gossan ores are commonly spongy or cellular in character, but this characteristic is not unfailing, and they may in places appear in quite compact and massive forms. Chemically, they show considerable variations, but there are certain broad features in which there is general agreement. They are commonly, for example, lower in phosphorus and manganese than most other brown ores. On the other hand, when the leach- ing has not been complete, they are high in sulphur, and often show traces of copper and occasionally nickel. Their iron, silica and alumina contents depend on local conditions entirely, and gossan ores may therefore range from almost 60 percent iron and low silica down to 30 or 35 percent iron with high impurities. Their value as iron ores depends largely upon the thoroughness with which the sulphur has been removed during the weathering process. When this has been done pretty effectually, the gossan ores are valuable for mixtures, because of their low phosphorus and excellent physical structure. When there is still too much sulphur remaining, it may pay to attempt its removal in a fixed or rotary kiln; but conditions rarely justify this. Examples and Relations. The most important single instance of a workable gossan deposit in the United States, from a tonnage standpoint, is afforded by the ores of the Ducktown district in southeastern Tennessee. Next to this in industrial importance are the ores mined at various points along the Great Gossan Lead in southwestern Virginia. But in other ways the gossan deposits are of still greater interest to the iron industry. They are closely related to other types of iron-ore deposits, and in many cases no hard-and-fast line can be drawn between them. The solution residuals, next to be discussed, will furnish examples of this inter-relationship. 1 Alteration of pyrite to hematite occurs but not in any quantity under weathering conditions. 94 IRON ORES RESIDUAL DEPOSITS During the processes of rock weathering and rock decay, some of the constituents of the rock are carried off in solution, while the others remain behind as a mass of residual material. All rocks contain iron, and under favorable conditions enough iron may remain in the residual to form a workable iron-ore deposit. This will depend largely upon the percentage of iron contained by the original rock, upon the form in which this contained iron existed, and upon the conditions under which weathering took place. General Factors Involved. The influence of these factors may be summarized as follows : (1) Other things being equal, the more iron contained in the original rock, the more chance that sufficient iron will be left behind to form a workable residual ore deposit. Stated in this way, it would seem obvious that the basic igneous rocks, or iron- rich sediments, are the most likely to yield residual iron-ore deposits. But the qualification, other things being equal, must be borne in mind; and when this is taken into account it will be found that original richness in iron is not the most important factor in the case. (2) When the iron is present as an oxide mineral magnetite, hematite, limonite, etc. it is relatively resistant to solution, and may therefore easily remain in the residual mass. Iron present as a constituent of a silicate mineral, being in the ferrous form, is more likely to be carried off in solution; but even in this case it may be re-deposited before it is moved far from its original location. (3) Heavy rainfall, heavy plant-growth and an abundant supply of percolating waters three conditions which normally occur together favor both the solution and the transportation of iron, whatever may have been its original form of occurrence. If the percolating waters, after being charged with dissolved iron salts, are allowed to escape freely from the residual mass and join an exterior drainage system, there will be no opportunity for the formation of a residual ore deposit. But if such free escape is hindered, the iron may be re-deposited within the residual mass itself, concentrating at locally favorable points. Certain phases of the matter may now be taken up in more detail, for we are dealing with a very important group of iron ALTERATION DEPOSITS 95 deposits, ranking second only to the sedimentary deposits in their extent and tonnage. It will be best to direct attention first to that type of residual deposit in which the mere removal of the enclosing rock may be considered to have been the most important step in the process of origin. Solution Residuals. In the eastern and southeastern United States, and for that matter in many other portions of the world, brown-ore deposits of somewhat uniform type are encountered. They are not bog ores, for they show no evidence whatever of having been deposited in water basins. They are not, in their present form at least, ordinary replacement deposits, for they occur chiefly as masses and fragments of brown ore enclosed by and associated with residual clays. In most cases the mixture of ore and clay is underlain at some relatively shallow depth (20 to 150 feet) by solid limestone, and the ore-body is usually covered by deposits of quite recent sands and gravels. FIG. 17. Typical residual brown-ore deposit. In discussing the origin of these deposits it must be premised that the limestones on which they now rest once outcropped at elevations high above the present level and that these limestones have been reduced to their present level largely by simple solution. Water has dissolved and carried off the lime carbonate, leaving behind the clayey matter once contained in the limestones. This residual clayey matter now appears as the sticky clay with which the ores are so closely associated and in which they are often actually embedded. The following analyses of the limestone associated with brown ore from an Alabama district are of service in the present con- nection : 96 IRON ORES ANALYSES OF LIMESTONE AND RESIDUAL CLAY BELOW BROWN-ORE AT HOUSTON MINE [Analyst, R. S. Hodges, Alabama Geological Survey] Si0 2 AhOi Fe 2 0s FeO Ti0 2 1 CaO MgO Na 2 O K 2 C0 2 H 2 O Unweathered limestone. Weathered limestone. Residual clay . 12.34 27.75 55.92 1.34 6.57 25.24 0.77 1.62 5.10 .... 0.27 0.30 0.11 0.39 1.21 44.34 29.69 0.10 2.54 3.02 1.61 0.24 0.23 0.43 0.76 3.53 2.48 35.20 22.84 1.87 4.19 9.00 An average analysis of the whole series of limestones composing the original formation, if one could be obtained, would un- doubtedly show that the average rock is a very impure lime- stone. Such a rock, when subjected to weathering agencies, would give rise to the formation of thick deposits of residual material, this residual representing the insoluble portions of the original mass. As it is often assumed that this action would of itself give rise to the formation of brown-ore deposits, it is worth while to determine just what would happen in such a case. Assume a limestone of the following composition: Insoluble residuum : SiO 2 A1 2 3 Fe 2 O 3 .. Soluble carbonate: CaCO 3 MgCO 3 2.5 1.0 . .. . 0.5 4.0 94.0 . . . 2.0 96.0 A horizontal bed 100 feet thick of this limestone, if the carbon- ates are removed by solution, would evidently yield a 4-foot bed of insoluble residual material. But this would in all probability be a 4-foot bed of clay of about the following composition : SiO 2 A1 2 O 3 Fe 2 3 Water, etc. . 56.25 22.50 11.25 10.00 100.00 The point to be kept in mind is that this residual will be a clay, ALTERATION DEPOSITS 97 and that the iron of the original limestone will be present in this clay largely in the form of minute particles of iron-silicate minerals or as fine scattered particles of iron oxide. It will not be present as a distinct mass or bed of brown ore. The matter hardly seems to require much discussion, but many theories of the origin of brown ores tacitly assume that the iron of the original limestone appears in the residual mass as brown ore. A theory of this type would of course imply that 100 feet of the limestone above dis- cussed would by its decay give rise to a bed J foot thick of brown ore. FIG. 18. Brown-ore deposit, Vesuvius, Va. (Harder.) It can therefore be set down as an axiom that the decay of a limestone carrying slight percentages of disseminated iron mate- rials can never of itself yield a deposit of brown ore. The decay of the limestone may be a very important step in the formation of such a deposit, but it can never be the only step. There must also be some process by which the iron is concentrated, either in the original limestone or in the residual material. In the opinion of the writer this concentration usually takes place in the lime- stone before its decay, though in some cases it evidently has occurred in the residual. In the Woodstock district, for example, the bulk of the deposits appear to have been formed by the solu- tion of a limestone in which seams and stringers of brown ore had 7 98 IRON ORES been deposited prior to its weathering. In the Russellville and middle Tennessee deposits the evidence is still more conclusive, for in those areas such primary deposits of iron carbonate and brown ore have been found in the unaltered limestone. In some cases, then, we may conclude that these brown ores were originally deposited as replacements or fillings in a lime- stone, and that the present deposit is due solely to the removal of the enclosing limestone by surface solution. In other cases there seems to be good evidence that some or all of the brown ore has originated during or after the weathering process took place; so that in addition to the purely residual action there has been actual chemical rearrangement of even the less soluble constituents of the original rocks. Such re-deposition leaves us directly to another important type of residual deposits, which may conveniently be called laterite deposits. Laterite Residuals. In discussing normal replacements it was noted that, living in temperate regions, we are accustomed to regard limestone as the only rock which weathers deeply and shows great solvent effects; but that in reality there were certain climatic factors which made this simple rule less useful and finally worthless as the tropical regions were entered. Clarke has summarized 1 the matter very concisely: "In tropical and sub-tropical regions the processes of rock decay are often carried further than is usually the case within the tem- perate zones. The leaching is more complete, the silicates are more thoroughly decomposed, and the residues are richer in hydroxides." It is with the character of these residual materials that we have at present to deal. It will be seen at once that this is a very important point in connection with the formation of residual iron-ore deposits, for it offers a very wide range of original rocks from which such residual deposits may be formed. So long as we are dealing with weather- ing as it occurs in temperate climates, we must be prepared to accept limestone as the only rock which can be readily dissolved by surface waters so as to leave an important amount of residual iron. Any other rock would, under normal conditions, leave behind far more silica than iron, so that the residual would be worthless as an ore. 1 Bulletin 330, U. S. Geol. Survey, p. 417. ALTERATION DEPOSITS 99 But in dealing with tropical weathering, under such conditions that surficial waters can easily remove silica in solution, the case is quite different. A large number of rocks normally contain sufficient iron to yield workable deposits provided the silica left in the residual is small. The more basic igneous rocks, and the serpentine which is a characteristic basic alteration product, contain high percentages of iron, along with other constituents most commonly silica, alumina, magnesia and lime. Under tropical weathering all of these constituents except the alumina and iron are removable. The resulting residual will therefore contain chiefly brown ore (iron hydroxide), or bauxite (aluminum hydroxide) or more commonly a mixture of both. As to the rock whose decay furnishes these deposits, it can be said that the brown ores of the north coast of Cuba are residual from serpentine; and that the same is true of some minor deposits in the United States. On the other hand, the bauxite deposits of Arkansas are residual from nepheline-syenite, and some of the foreign bauxites from still more basic massive igneous rocks. The chief hydrated oxides found in tropical residual material are of course those of aluminum and iron; and the ore deposits which are formed are characteristically highly aluminous iron ores, mixtures of bauxite and brown ore, or even deposits of relatively pure bauxite. Limiting consideration to the deposits in which the iron is the chief ore, it can be said that the ores whose origin is due to processes of this type are characteristically high in alumina, low in silica and phosphorus, usually low in sulphur, and frequently high (for iron ores) in nickel, copper and chromium. All of these features are traceable to the composition of the original rock. CHAPTER VIII IGNEOUS DEPOSITS In discussing contact deposits (pp. 86-88) it was found that igneous action might contribute toward the formation of an ore deposit indirectly, through the heat supply which it furnished, even if the igneous rock did not necessarily furnish all or any portion of the iron. There are, however, large deposits of iron ore which have been ascribed to direct igneous action, and these will be discussed in the present chapter. The present group includes those cases where iron minerals, in workable quantities, are found as original constituents of a mass of igneous rock. The fact that it is theoretically possible for this to occur seems to exercise a peculiar fascination over the geologic mind, and igneous iron deposits therefore occupy a greater space in the literature of iron ores than is warranted by either their geologic or industrial importance. No iron-ore de- posits at present worked in the United States can be ascribed with certainty to this group, though it is possible that some of our eastern magnetites should be included. By common consent most of the titaniferous magnetites are placed in this group. All igneous rocks, as has been noted earlier in this volume, contain iron as one constituent. Usually their iron percentage is not remarkably high, and the iron does not occur in the oxide form but as a constituent of various silicate minerals. In the more basic rocks, however, iron becomes of more importance; and as its percentage increases there is more possibility that part of it, at least, will not combine with silica but will crystallize out separately as iron oxide, taking the form of either hematite or magnetite. In rare cases masses or areas of igneous rock might be found in which there is enough of this disseminated iron oxide to justify mining and concentration. Magmatic segregations differ from the disseminated igneous ore deposits in degree of concentration rather than in mode of origin. The principal reason for mentioning them separately lies in the fact that the term magmatic segregation has an established and definite status as applied to certain types of sulphide ores. 100 IGNEO US DEPOSITS ''- 101 - It is conceivable that during the cooling of a mass of fused rock, the more basic constituents might be separated to some degree from the more acid portions. There would thus arise a segregation within the fused mass of magma itself, and this might reach the point where the basic portion, on cooling, would contain workable deposits of iron ore. A modification of the magmatic segregation theory requires note, for it disposes of certain of the objections which are based upon the physical relations of the ore-bodies and their enclosing rocks. It is suggested later that it is difficult to reconcile the frequently tabular shape and linear arrangement of ore masses with the idea that they were magmatic segregations. If, however, we assume that the ores were introduced into a slightly earlier and therefore partly cooled magma, some of these diffi- culties become less important; and this is the ground taken by Stutzer and other who ascribe some of the Scandinavian and other magnetites to formation, not as direct magmatic segregations in place, but as magmatic dikes. Criteria for Recognition. It will be worth while, before dis- cussing the deposits which have been ascribed to direct igneous origin, to make some attempt to determine the points in which such igneous deposits are likely to differ from contact deposits or other forms. If any definite criteria for the recognition of igneous deposits can be established, they will of course be im- mediately serviceable in determining whether or not any particu- lar deposit is of igneous origin. If, on the other hand, it is found that the best criteria available are indefinite or uncertain, this fact also will be of service, as a warning against assigning ores too hastily to the igneous class. It would seem probable that, if magmatic segregation ever resulted in the formation of a workable deposit of iron ore, this deposit would have something distinctive and suggestive of its origin; and that the distinctions would be related to the kind of rocks with which the deposit was associated, the form of the deposit, the character of its boundaries, or the composition of the ores contained. As regards the first point, the deposit would of course be asso- ciated with igneous rocks, and almost certainly with highly basic igneous rocks. For the chemical difficulties associated with ig- neous origin, great at the best, become still greater as the parent 102 IRON ORES rock becomes more acid. If, in the course of field examination, we find a magnetite deposit associated with an acid igneous rock, that fact would tend to bear somewhat against the possible igneous origin of the iron ore, so that the other lines of evidence would have to be a little stronger to make up for this defect. Further, if the deposit is associated, not with certain igneous rocks, but with gneisses whose origin is open to the least question, our conclusions as to the igneous origin of the ore are weakened by just that much. The form taken by a body of iron oxide segregating from a molten magma would be spheroidal if temperature and pressure ,- \ t;".-.| Magnetite FIG. 19. Scandinavian ore deposits showing linear arrangement of mag- netic ore-bodies. (Stiitzer.) were equal on all sides; under actual conditions it would be prob- ably irregular; but there is no serious chance that at the outset it would take the form of a thin sheet, simulating sedimentary bedding. It is true that later metamorphism might squeeze one deposit into this shape, but if we find a series of thin deposits, parallel to each other, the probability is that they are not of direct igneous origin. As regards its boundaries, it is certain that a magmatic segre- gation would grade imperceptibly on all sides into the parent rock. If our field occurrence is not entirely enclosed by igneous rocks, but lies along their contact, or if it shows sharp and definite boundaries on foot and hanging walls, it would seem best to seek some other mode of origin. One of the most convincing of proofs, to which we commonly refer in determining the igneous origin of a rock-mass, is from the IGNEOUS DEPOSITS 103 nature of the case not applicable to determining the origin of an iron body. Reference is made to igneous contact effects, both chemical and physical. -Except where we are dealing with a dike-like mass of ore, the presumed magmatic ore would never be in the proper place to show these effects satisfactorily, The ore itself will be a crystalline magnetite or hematite, probably very low in phosphorus, and possibly high in sulphur. It might also fairly be expected to be high in titanium, chromium, nickel, copper, or scarcer metals. If our field example shows high phosphorus the probabilities of its igneous origin are less- ened; and if the phosphorus is present as separate crystalline grains of lime phosphate, the difficulties become very great. Summarizing these points, it will be seen that the criteria developed are largely negative. Even when dealing with igneous activity of recent date, it will often be difficult to discriminate between magmatic segregations and contact deposits; and when dealing with old and highly metamorphosed rocks the uncer- tainties will be far greater. Under these circumstances it seems safest to assume that the burden of proof is always heavily against the direct igneous origin of any given ore-body. Chief Possible Occurrences. There are, of course, very wide differences of opinion among geologists as to what great iron-ore KING OS'KAR MINE White portion indicates Surrounding Pock. Black " Magnetite. FIG. 20. Scandinavian ore-bodies showing tabular or linear arrangement of magnetite bodies. (Stiitzer.) deposits, if any, should be considered as of probable or certain magmatic origin. This condition prevents any very precise or definite statement as to the chief occurrences of possible or probable igneous ores. It may be said, however, that there are a number of instances in which there is either substantial agree- ment among most geologists, or firm conviction of the part of a few whose standing is sufficient to warrant consideration. 104 IRON ORES The principal instances falling in these classes are (1) the high titanium magnetites associated with basic rocks in many parts of the world; (2) most of the higher grade magnetites of Scan- dinavia; (3) many of the magnetites of the eastern United States and Canada. It will be recognized immediately that the proof, with regard to the different instances above listed, is not of the same grade or character. Perhaps it would be fair to say that it is very convincing with regard to most of the titaniferous ores; that it is less certain with regard to the Scandinavian magnetites; and that it is quite weak indeed as far as the Adirondack and other non-titaniferous American magnetites are concerned. THE TITANIFEROUS MAGNETITES. Since the titaniferous iron ores form the only large class on which opinion as to their magmatic origin is substantially in ac- cord, it will be well to discuss in some detail the facts as to their geologic associations, the form and relations of the ore-bodies, and the general character of the ores. There is the more reason for doing this in the present place because, as the titaniferous ores are not at present commercial raw materials, little attention will be given to them in the later chapters on the occurence of the iron ores of the world. Associated Rocks. With few exceptions, not sufficient to invalidate the general rule, the titaniferous iron ores are asso- ciated with very basic igneous rocks. Kemp states that normally these are of the general types of gabbros; and range through anorthosites, gabbros, norites, diabases and peridotites. The exceptional instances above noted are associated with somewhat more acid rocks the nepheline syenites. The following analyses, quoted from Kemp, will serve to give some idea of the general chemical character of the enclosing rocks. ANALYSES OF WALL-ROCKS, TITANIFEROUS ORES 8.36 10.20 7.10 5.34 .... 0.81 0.95 .... 2.75 2.47 Alumina 18.90 12.46 1 Split Rock mine, New York. W. H. Hillebrand, anal. 19th Ann. Rep U. S. G. S., pt. 3, page 402. 2 Lincoln Pond, N. Y. G. Steiger, anal. Same, p 407 " 0) ( 2 ) Ferric oxide . . 1 . 39 4 . 63 Lime Ferrous oxide. . . . . . 10.45 12.99 Magnesia . Titanic oxide. . . . .. 1.20 5.26 Potash . . . Silica.. . 47.88 44.77 Soda IGNEOUS DEPOSITS 105 Form and Relations of Ore-body. The known deposits of titaniferous ores occur mostly in masses of irregular shape, enclosed entirely within bodies of gabbro. Occasionally the ore penetrates the igneous rock in sharply edged dikes, but normally the ore grades on every side gradually into the enclosing igneous rock. Composition and Character of the Ores. The titaniferous ores of magmatic origin are predominantly mixtures of magnetite and ilmenite, with of course more or less of gangue material. The latter, being simply portions of the associated igneous rock, consists of various minerals such as augite, the basic feldspars, etc. When free from gangue the ore is normally very low in phosphorus and usually low in sulphur; vanadium and chromium are commonly present in traces at least; manganese is low, and somewhat unexpectedly copper and nickel are rarely present. Taken as a whole the titaniferous ores are rich in iron, even allow- ing for the titanium present; and they are usually more massive and naturally concentrated than the non-titaniferous magnetites. Bibliography of Titaniferous Ores. The subject of the titanif- erous ores is one of much interest from the purely geologic stand- point, and it seems probable that in the near future it may become of serious commercial importance. A large number of papers and reports refer to it, in one way or another, but no attempt has been made to prepare a complete bibliography. The few papers listed below are all important, and all very complete within their respective limits. They are, moreover, readily accessible to most engineers, and contain references to other literature which will facilitate further study of the subject. Kemp, J. F. The titaniferous iron ores of the Adirondacks. 19th Ann. Rep. U. S. Geol Survey, pt. Ill, pp. 377-422. 1899. Kemp, J. F. A brief review of the titaniferous magnetites School of Mines Quarterly, vol. XX, pp. 323-356; vol. XXI, pp. 56-65. 1899. Newland, D. H. Geology o the Adirondack magnetic iron ores. Bulletin 119, New York State Museum. 1908 Singewald, J. T. The titaniferous iron ores in the United States. Bulletin 64, U. S. Bureau of Mines. 1913. PART II. THE VALUATION OF IRON ORE PROPERTIES CHAPTER IX THE BASAL FACTORS IN ORE VALUATION Determining the value of a given amount of iron ore, whether that amount be a small mined tonnage ready for market or a large unmined reserve, is a matter which involves very compli- cated industrial and commercial relations. In the present volume all of Part II is devoted to various phases of this subject; and in order that the general bearing of this mass of details may be clearly understood, a brief introductory chapter is necessary to summarize the subject. General Bases of Property Valuation. In attempting to place a value upon a large iron-ore property, or group of proper- ties, we have first of all to consider the reason for which the valuation is being made, and the use to which it will be put; for these factors will have an important influence on both the general methods and the details of the valuation. At first sight this statement may seem unsound, for it may be held that the value of a given piece of property is a fixed and definite matter, and that all logically correct methods should give the same results. Closer examination of the question, however, will prove that valuations are not of themselves definitely fixed, that they will vary greatly according to circumstances, and that this condition is not confined to the particular type of properties now under discussion, but is common to all the affairs of business life. Whatever type of property we may consider, whether land, buildings, securities, or iron ores, there will inevitably be found to exist at least two separate and distinct methods of valuation, which may give more or less widely different results. Each of these methods is logically sound, each may be financially correct, and the choice between them will depend entirely upon the reason for which the valuation is being made. If it is to be used 106 THE BASAL FACTORS IN ORE VALUATION 107 as a basis for buying or selling the property at any particular time, we will be concerned only with the market or re-placement value of such a property. But if the property is to be put to a definite use by its present owners," and if by this use it will bring in larger profits than its present selling or re-placement price might indicate, the owners are fairly justified in taking this fact into account, and in assuming that to them the property has really this higher value due to expected profits. It is to be borne in mind, however, that such higher value should never be considered as being more than a matter of personal interest. The owner is entirely justified in relying upon it, for in the long run his earnings from it will be enough to cover the advance, but he would not be justified in attempting to borrow on the property at this higher value, or in expecting to realize that value at forced sale. One fact remains to be noted, though to business men it will seem so obvious as to be hardly worth mention. Recent events have shown, however, that what may seem obvious to business men may be an impenetrable mystery to lawgivers, and for this reason it may be profitable not only to mention but to emphasize this very commonplace statement. The value of property is not fixed or determined in any way by its original cost. It is perfectly true that the cost of a property, plus carrying charges, represents the least price which the present owner can accept without losing money. But it neither guarantees that he can secure this price, nor makes it either reprehensible or foolish to ask a higher price, if the property has actually increased in value during the period of his ownership. Very few people, even in Congress, would question this statement as applied to the value of a farm owned by a constituent. When it comes, however, to the question of placing a valuation on a railroad, a mine, or a mill owned by a corporation, the matter for some reason appears to take on a different aspect. Of course in the case of public utilities there is some reason for this change in view, but this is not true in the case of manufacturing or mining properties, whether owned by corporations or by individuals. Valuation of Ore Reserves. Up to this point the matter of valuation has been discussed in an entirely general manner, and the principles which have been referred to can be applied in the valuation of any kind of property. The exact manner in which 108 IRON ORES they are applied, and the data which must be introduced in order to secure accurate results, will of cpurse differ according to the type of property which is under consideration. At present we are concerned with the valuation of iron-ore properties, and with this in view it is possible to state certain features of the problem in detail, and to suggest fairly close limits for the various factors which are involved in the valuation of this type of property. At the outset, one point must be firmly impressed. It is true that in placing a value on an iron-ore property we may often properly consider it as merely the valuation of real estate, and apply some of the principles on which ordinary land is commonly valued. But it is real estate of a very special kind, and in most cases it owes all its value to the rate at which it will be used and exhausted. At times, it is true, there will remain a certain realty value for the land after its iron ore has been exhausted; and in some instances the land can be used for other purposes before iron-ore mining has been commenced. But in by far the majority of cases the iron property is a dead burden until ore production has started, and is absolutely valueless after it has ceased. Under these circumstances there is usually little need to consider such questions as surface rentals or surface land values; and the unit of valuation must be the ton of ore and not the acre of land. And, as will be seen later, time is as important a factor as tonnage in determining the total present value of the property. In an earlier section of this chapter it was pointed out that the reasons for the valuation, and the intentions of the owner, would each have an effect on the methods to be followed and on the results that would be obtained. It seems clear, for example, that if the purpose of the valuation is the issue of bonds against the property, a proper regard for the security of these bonds will involve valuation on a strict market basis, as nearly as such basis can be determined. On the other hand it seems equally clear that if the owner has arranged to have the ore mined on a royalty basis, the rate of extraction, the rate of royalty, and other features of the agreement must be taken into consideration in arriving at a proper valuation. To me it seems that in some cases we may go even further than this, and equitably capitalize a portion of the smelting profits when the owner of the ore land expects to use the ore in his own furnaces. There are thus three different bases on which the valuation of THE BASAL FACTORS IN ORE VALUATION 109 an iron ore property may be placed. For convenience these may be briefly described, in an order different from that in which they are noted above, as : 1. Capitalization of Smelting Profits. 2. Capitalization of Royalties or Mining Profits. 3. Market or Replacement Valuation. Each of these is logically sound, under certain conditions, though each method will give a different final result. It is there- fore advisable to consider them separately, to state the conditions under which the different methods are available, and to give some idea of the different results which will be obtained by their use. Capitalization of Smelting Profits. The method of valuation to be considered under this head will undoubtedly be looked upon as highly unsound, when applied to iron mining, though it will be the merest commonplace to anyone engaged in mining copper, lead, silver, or gold ores. We have, in other words, to deal with a method of valuation which is logically sound and defensible under certain conditions; which is universally adopted in valuing all mining property except iron mines; but which has never to my knowledge, been suggested for use in iron mining. It is not here recommended for use under ordinary conditions, but is discussed simply in order to point out that under certain given conditions it could be adopted and justified. In speaking, for example, of the valuation of a developed gold mine, the final statement will ordinarily take the form of saying that the property contains a certain number of tons of ore, with an average net value of so many dollars per ton. The total value of the property will then be placed at the product of these two figures, with some discount for the years required to work out the mine. The same form of statement would be used in discussing a copper mine, though in this case owing to the variations in the price of copper, the statement would have to be qualified by say- ing that it was based on the assumption that during the life of the mine metallic copper averaged so many cents per pound. In neither case would anyone connected with the mining industry see anything remarkable in the form of statement, or in the general method which had been employed. But if we should value an iron mine on precisely the same basis, the results would be very remarkable, and everyone would criticise the methods adopted. Yet there is no good reason for making any difference 110 IRON ORES between the two cases, except that trade customs have been different. In mining any ore except iron, we are accustomed to credit the ore with the total net profit of all the series of operations from mine to finished and marketed metal. In other words, the net value of a ton of gold or copper ore is always taken as meaning the profits per ton which can be credited to the mine after all the expenses and losses of mining, smelting, transportation and re- fining have been met and allowed for. In dealing with iron ore, however, the practice has been very different. Here it has been the custom to credit the bulk of the profit of the series of operations, not to the mine, but to the blast furnaces or steel-mill. The results have been, in some sense, unfortunate; for this method of crediting most of the profits to a late stage in the process has encouraged the public idea that the profits of iron and steel manufacture are excessive. Mining has always been looked upon as a commercially hazardous occupa- tion, whose risks must be compensated for by the possibility of larger profits than can fairly be asked or expected from ordinary business. There has never been serious criticism of copper mines because of their occasional large earnings, and there is no good reason why iron mining should be placed upon any other level in the public estimation. The method of valuation which has been here suggested is clearly justifiable, but as it has not been adopted in the past there is no need to discuss it in more detail. *The methods which remain to be considered are both justifiable and in regular use. Market Valuations. Another method of valuation, which theoretically should give about the same final results as the one which will be next discussed, is to work out the problem from the current prices of similar ore lands in the same district. A modifi- cation of this method, which is here put in use for the first time, is to work it out from the market value of securities issued against ore properties. Neither of these methods can be applied auto- matically or unintelligently, for it is necessary that the property whose value is to be determined shall be closely comparable in every way with the properties of known value used for comparison. The market value of an ore property will depend upon a num- ber of factors. The one which comes first to mind, and is most THE BASAL FACTORS IN ORE VALUATION 111 commonly discussed in this connection i.e., the grade of the ore itself is after all of quite subordinate importance except in comparing two closely similar properties in the same district. The most important matter is the relation between supply and demand in the particular district where the property is located, and this fact is constantly forgotten in current discussions of the subject. As an instance in point, we may take the South, where ore lands are still sold at a very low price per ton. This condition is not due primarily to the low grade of Southern ores, but to the fact that the Southern States contain some 3,000,000,000 tons or more of iron ore; and that this huge reserve is being used at the rate of only some 5,000,000 or 6,000,000 tons a year. In the Lake region, a total reserve of slightly smaller size is being drawn on at the rate of almost 50,000,000 tons a year. It is obvious that the Lake supply, in relation to the demand, is more than ten times as scarce as the Southern supply. Even if Lake ores were of poorer grade than the average Southern ore, they would still be worth far more money per ton because of this relation. As a matter of fact, we do find that this relation holds when we come to compare the market values of Lake and Southern ore properties. In the South it is still possible to buy ores at the rate of one cent per ton or less; and it is rarely necessary to go over two or three cents a ton except for small, easily developed and ex- ceptionally well-located holdings. Compared with this, we find that in the Lake regions the Minnesota and Michigan ore lands are actually taxed on a basis which implies that they are worth from forty to eighty cents a ton. A curious check upon the substantial accuracy of the above figures is afforded by using the method which the writer recently developed for a special purpose. In this method security prices are used after making allowances for the value of the other prop- erties covered by the securities, for determining the values placed by the Stock Exchange on raw materials. The method will not be widely applicable, for it requires some detailed knowledge of the companies whose securities are compared, but when it can be used at all its results are peculiarly valuable. It will not be necessary to discuss the method or results here in detail, but one set of comparisons will be of present interest. It covers the re- sults secured by comparing a company having its ores in the 112 IRON ORES 4 Lake region, with another company based on Alabama ores. The valuations per ton placed on the ores by the New York Stock Exchange, at two important periods, were as shown in the tabulation below: High of Panic of Avpratrp 1906 IQ07 Lake ores 53. 10 cts. 20.25 cts. 36.67 cts. Alabama ores 2.66 cts. 1.20 cts. 1.83 cts. Of course too much stress should not be laid upon this method of determining values, for the Stock Exchange is subject to errors of judgment. But it is, after all, the broadest market we have for large properties, and the value which it places on them must be taken into account. Capitalization of Royalties or Mining Profits. In by far the majority of cases, particularly where an individual ore-property of moderate size is under consideration, the method of valuation adopted will involve capitalizing the expected royalties or the expected mining profits. When this method of valuation is adopted, the total present value of the property will depend upon three factors : a. Total tonnage of merchantable ore on property. b. Royalty or net profit per ton of ore. c. Rate at which the ore will be extracted. Of the three factors named, the total tonnage is determined as an engineering and geologic problem, the methods for such determination being discussed in detail in Chapter X. As to the other two factors, they may either be definitely known (as when a specific lease is under consideration or in force), or it may be necessary to estimate them from past experience. In the last case we have to deal respectively with such factors as probable mining costs, grade and composition of ore, concentrating methods and costs, current selling prices of ores in competitive markets, probable demand for ore, and current interest rates. To summarize the matter, it may be recalled that three factors have been named as affecting ore reserve valuations. These three factors are (1) tonnage on property, (2) value per ton of ore, and (3) rate of extraction. To determine the present value of an ore property three operations are therefore necessary. These operations, with the chapters under which their details are dis- cussed in the present volume, are as follows : THE BASAL FACTORS IN ORE VALUATION 113 A. Determining the total tonnage on the property. Chapter x Prospecting and Tonnage Determinations. B. Determining the probable profits per ton. Chapter xi Mining Costs. Chapter xii Furnace and Mill Requirements. Chapter xiii Composition and Concentration. Chapter xiv Prices, Profits and Markets. C. Determining the present value. Chapter xv Time as a Factor in Valuation. References on Reserve Valuation. Incidental references to the subjects which have been discussed in this chapter will be found scattered through mining literature, and some of these minor contributions to the problem offer valuable material for study. The books listed below, however, are devoted chiefly or entirely to this phase of mining. Finlay, J. R. The Cost of Mining. 8vo, 415 pages. McGraw-Hill Book Co., New York, 1909. Hoover, H. C. Principles of Mining. 8vo, 199 pages. McGraw-Hill Book Co., New York, 1909. Lawn, J. G. Mine Accounts and Mining Book-keeping. 8vo, 147 pages Charles Griffin & Co., London, 1907 (5th edition). Of the three volumes named above, Finlay's book is of greatest value in the present connection, devoting most space to the prin- ciples which underlie the valuation of ore reserves. Hoover, though also discussing this phase of the subject, is chiefly inter- ested in the actual methods of determining the reserves. Lawn's book, as indicated by its title, is chiefly devoted to accounting method, but contains some valuable discussion of the principles and methods of amortization. CHAPTER X PROSPECTING AND TONNAGE DETERMINATIONS In the previous chapter it was pointed out that the tonnage of ore contained in an iron-ore deposit is one of the three basal factors on which depends the value of that deposit. The other two factors will be taken up later, but the present chapter will be devoted to consideration of the methods of determining ore tonnage. The ore deposit or district which is to be examined may be an entirely new and undeveloped field, or it may be a portion of a worked territory; and these conditions will naturally influence the character of the work which has to be done in the course of the examination. Even in unworked areas it is usually the case that there has been more or less desultory prospecting or develop- ment work carried out by the discoverers of the ore; but in order to secure sufficient data for tonnage estimates it will almost inevitably be necessary to do much more of such work. The extent of this later prospecting will depend very largely upon the causes which have led to the examination. Reasons for Valuation. The bulk of the work done in the way of valuing iron-ore deposits or reserves will fall under one or the other of the following cases : 1. An existing furnace company wishes to secure an additional ore supply. In this case there will be existing data on freight rates, coke costs, etc., so that in order to determine the value of the ore to the company only its composition, tonnage and mining possibilities need be considered. 2. Several existing companies wish to have their properties appraised, for the purpose of consolidation. In this case the values may be entirely arbitrary without injustice, so long as they are directly comparable. 3. An ore property is to be examined for the purpose of organ- izing a separate ore-mining company. Except in the Lake Superior district, where certain standards of value are well 114 PROSPECTING AND TONNAGE DETERMINATIONS 115 understood, this is the most difficult case of all, for it involves the study of all competitive ores as well as of possible markets. 4. An ore deposit is to be examined for the purpose of organ- izing a new furnace company. In this case competitive ores require less attention; but this is counter-balanced by the heavier investment which will be based on the examination. THE STUDY OF ORIGIN AND RELATIONS Geologic Examination. It seems hardly necessary to say that until the engineer charged with the examination of an iron-ore property has arrived at reasonably satisfactory conclusions regarding the origin and geological relations of the ore deposit, he will be entirely unable to give an opinion of any value regard- ing the probable continuity of the ore-bodies either laterally or in depth, the tonnage available at working depths, or the value of the property. Such opinions can only be arrived at by making assumptions on certain points, and all of the assumed factors are matters to be determined largely by geological reasoning and not by purely engineering methods. This implies simply that in order to satisfactorily handle the problems which will present themselves during such an examination the engineer must possess a fair knowledge of applied geology, and that he shall be capable of making use of this knowledge in the field. Before commencing the actual prospecting work it will there- fore be advisable to devote some time to a study of the geology of the area, mapping roughly the different formations, determining if possible the underground structure of the rocks, and studying the geologic relations of the ores. The time to be spent on such a study will depend on the area to be covered, the total time avail- able, the importance of the property, and the character of the ore deposits. In dealing, for example, with well-known sedimen- tary deposits such as the Clinton hematites of the southern United States, which occupy a very definite geologic position, little time need be spent except in the determination of the existence and location of folds and faults in the strata. If, on the other hand, the problem concerns a magnetite or brown-ore body of unknown origin and relations, time spent on a study of all important geologic factors will never be wasted. It must be borne in mind that it is rarely necessary for the 116 IRON ORES engineer to commence this local geological study in entire ignor- ance of what he may expect to find. Something is usually on record concerning the district, if one knows where to look for it. In states and countries that have arrived at a fairly high level of civilization the engineer will usually find a more or less valuable series of reports by the State or National Geological Survey, and inquiry will commonly develop the fact that there is considerably more unpublished material on file at their offices. In regard to less-known districts books of travel, consular reports and scien- tific journals will frequently be found to contain information of value. Probabilities as to Origin. Of course each particular ore deposit or group of deposits will require individual study before anything definite can be said concerning its origin. But a good deal of time can be saved in these studies if it is realized at the outset that there are certain probabilities which are worth considering. For the facts on which these probabilities are based, reference must be made to the details given in the preced- ing chapters (Chapters II to VIII) dealing with the origin of iron- ore deposits. In the present place it is only necessary to state briefly the conclusions which appear to be justified in the light of our present knowledge. It will be seen that these conclusions are of very direct and practical service during the preliminary examination and the prospecting of a new ore deposit. Based on the kind of iron ore which the deposit shows at the surface, the probabilities as to the origin of the deposit may be stated as follows, the likeliest mode of origin being in each case noted first: Carbonate ore: 1. Sedimentary bed. 2. Replacement of limestone. Brown ore: 1. Residual ore. 2. Gossan or surface alteration of contact deposit. 3. Normal replacement of limestone or, less commonly, sandstone. 4. Sedimentary bed. Hematite: 1. Sedimentary bed; if oolitic or granular texture. 2. Contact deposit. 3. Replacement; usually of limestone. 4. Secondary concentration. PROSPECTING AND TONNAGE DETERMINATIONS 117 Magnetite: 1. Contact replacement. 2. Metamorphosed sediment or replacement. 3. Magmatic segregation; if in basic igneous rocks. Of course the preceding summary does not cover all the possible ways in which any of these ores may originate. But it does include the types in which they are most likely to be found; and it lists them, on the whole, in about the order of their probability. Application of Geologic Studies. Assuming that it has been possible for the engineer to come to some tentative conclusion as to the probable manner in which the ore deposit originated, it remains to put this conclusion to service in laying out the pros- pecting work. Much depends of course upon local conditions, so that no hard-and-fast rules can be laid down for translating the results of the geologic study into practice. But it is possible to point out certain facts of very general applicability. The principal relations existing between mode or origin and character of prospecting work will affect the extent of work re- quired, the direction in which work is most desirable, and the reliance to be placed on individual analyses or excavations. Each kind of deposit differs in these regards, so that the matter can best be placed in useful form if arranged according to general type of deposit. Sedimentary Deposits. Occurring as distinct beds, usually extensive in area. Variations in composition greater across the bedding than along it. Occurrence of ore has no relation to present land surface; and only reason for deep drilling is to check up estimates as to depth, etc. Prospecting may be relatively slight and still give good basis for tonnage estimates. More care required in getting good average samples to show actual ship- ping grade. If samples run low in phosphorus, further examina- tion is desirable, as this is unusual in sedimentary deposits. If extensive operations are planned, faults must be looked for carefully. Normal Replacements. Determine what kind of rock has been replaced, and get some idea of its areal distribution and geologic structure. In steep-dipping beds deposit will usually replace a special bed and form a tabular mass; in massive or flat-lying rocks it will be irregular. In either case widest ore-body and 118 IRON ORES best ore is likely to occur at or near the present ground surface; and ore deposit will terminate at some moderate depth. Latter point may be determined by drilling or cross-cutting if topog- raphy is favorable. Presence of iron carbonate usually indicates that bottom or side of deposit is being approached. Secondary Concentrations. Locally very important, but not of widespread occurrence. In a new district they will be treated like normal replacements. Chief differences are that ore is not necessarily best and thickest at present surface; and that separate deposits may be struck in depth. Contact Deposits. No relation to present surface; ore body usually borders contact of igneous rock; occasionally diverges from this contact to follow some particular bed or zone in the other rocks. Other dimensions very irregular and impossible to estimate in advance; close prospecting therefore required in every direction. Particular attention must be paid to sulphur in samples; danger that it will increase with depth. Residual Deposits. Ore deposition related to existing or recent topography; deposit will therefore thin and possibly lower in grade with depth when standing in vertical or inclined position. When present ore-body occurs as a more or less horizontal mantle, its area may not decrease in depth, but the total depth to which it extends is apt to be small say 50 feet or less. The grade of a mantling ore-body may change in depth, and sometimes the best ore is found near the base of the deposit. In any case deposit will terminate in depth by running into solid rock or pyrite. This class includes some easily prospected deposits, but in general the residual ores will cost more for prospecting, per ton of ore devel- oped, than any other type. PROSPECTING METHODS AND COSTS Available Methods of Exploration. The five methods grouped below cover all the methods of exploration which are generally useful. Of the five, three are drilling methods; while two depend upon actual excavation. 1. Core drilling, in which a rotating hollow bit cuts a solid core; the sample being brought up in its original condition. 2. Churn drilling, in which tools suspended by rods and cable make th:ir progress by impact; the sample coming up as slime or mud. PROSPECTING AND TONNAGE DETERMINATIONS 119 3. Auger drilling, in which an auger, screwed to the end of a series of lengths of bar or pipe, is rotated by hand; the sample being caught in the thread of the auger. 4. Pits and shafts, for vertical exploration. 5. Trenches and drifts, for horizontal exploration. Choice of Methods. The adoption of one or the other of these methods may be dictated by the necessities of the individual case. For example, it would be ridiculous to go to the expense of diamond drilling in examining a small or otherwise unimportant ore-body; while absence of good water supply would be an argument against either diamond or churn drilling. Aside from these local or indi- vidual reasons, however, there are certain broad principles which will usually lead to a choice among the various methods. The facts in the case are stated on pages following, and their effect on choice of methods may be summarized as follows: For cross-cutting inclined beds: Trenches or drifts; usually both. For proving either bedded or irregular ore-bodies in depth: In hard rock: Core drill usually; occasionally churn drill. In soft rock, clay, etc.: Pits for shallow work say up to 20 feet or for deeper work if timbered. Auger drilling for shallow to medium depths (0-80 feet) in clays, soil, etc. Churn drilling for depths between 50 and 1000 feet. For determining lateral extent of irregular shallow deposits: Pits or trenches almost always most economical. Auger or other drilling when overburden exceeds 25 feet or so. Core Drilling. In speaking of core drilling, it may be assumed that diamond drilling is meant, for other methods of core drilling are in general less efficient in dealing with hard materials. The chief advantages of core drills are, of course, that they furnish a good sample of the ore; and that they determine its thickness and depth very precisely. As against this, they are expensive as compared with other methods; they fail in creviced or loose rock; and they lose their advantage sharply as the depth of soil and other overburden increases. For two particular purposes they are particularly adapted; to determine the shape and extent of pockety or irregular ore-bodies enclosed in hard rock, and to determine the thickness, grade and depth of bedded or lenticular ore-bodies in depth. Finally, it is to be noted that the use of 120 IRON ORES core drills is of more service in the close final work than in the earlier stages of prospecting an unknown property; and that the records of the work should be kept with a care proportionate to their precision and their cost. Total costs may vary from SI. 50 per foot to $3.00 or more, for very deep holes. Churn Drilling. The use of the regular well-drilling rig has spread from oil and gas exploration to work in iron fields, to which it is not by any means so well adapted. It is possible to reach great depths with the churn drill, but the samples are always poor and the analytical results usually doubtful. When the ore occurs as a definite bed, enclosed in rocks of widely different character, the results by this method are good enough, and in this case its lower cost gives it the preference over core-drill work. Hard rock or boulders increase costs heavily. On the average, costs may vary from somewhat less than $1.00 to $1.50 per foot or over. For very shallow depths, say 100 feet or less, the time lost in moving the rig is a heavy item, though for these depths the cost of the actual drilling is very low. Auger Drilling. The earth-auger, originally used in exploring clay deposits, has proven to have a certain field of utility in iron- ore exploration. Catlett and others have used it in prospect- ing brown-ore deposits, and have found that within a limited field it has the advantages of cheapness and handiness. The entire rig can be made up at any blacksmith shop in a few hours if necessary, and as a matter of fact all the parts required are ordinarily carried in the stores of every mining camp. The limitations of this method are marked. It can not pene- trate hard material, being unavailable against hard rock or even boulders. On the other hand, in soil or clay it makes very rapid progress. The depth is limited by the difficulty of pulling the string of rods, so that 30 feet is the usual maximum unless tackle be rigged. These conditions really limit the auger to use in shallow deposits of brown ore. As the auger rig will usually have to be improvised by the engi- neer on the ground, the following data quoted from a paper by Catlett in the Transactions of the American Institute of Mining Engineers may prove of service : The outfit required for projecting work consists of: 1. "An auger-bit of steel or Swede iron, with a steel point, twisted PROSPECTING AND TONNAGE DETERMINATIONS 121 into a spiral, with an ultimate diameter of 2 inches, and an ultimate thickness of blade of not less than | inch. The point is found more effect- ive when split. The length of the auger proper was gradually in- creased until about 13 inches was reached as the apparent maximum which could be used effectively. The 13-inch auger contains four turns. This was welded to the end of 18 inches of 1-inch wr ought-iron pipe, on which screws were cut for connection. 2. "One foot of If-inch octagonal steel, with a 2-inch cutting face, which is likewise welded on to 18 inches of pipe, cut for connections. 3. "Ten feet of lj-inch iron rod, threaded at either end for connection with 1-inch pipe. When connected with one of the drill-bits this be- comes a jumper for starting holes through hard material. It is also used when desired to give additional weight to the drill in going through rock below the surface. 4. "Sections of 1-inch pipe and connections. 5. "An iron handle, with a total length of 2 feet, arranged with a central eye for sliding up and down the pipe and with a set-screw for fastening it at any point. 6. "A sand-pump, consisting of 1 or 2 feet of 1-inch pipe, with a simple leather valve and a cord for raising and lowering it. 7. "Two pairs of pipe-tongs or two monkey-wrenches, with attach- ments for turning them into pipe-tongs. 8. "Sundries: 25 feet of tape, oil-can, flat file, cheap spring-balance, water -bucket, etc. "The auger is used by two men, who, standing on opposite sides, turn it by means of the handle. The handle is also useful in giving a good purchase for starting the auger from the bottom of the hole, in opposition to the air-pressure, which is considerable. Enough water is continually used to just soften the material. Usually the auger brings up a small portion, which is dry and unaffected. Every few minutes, as the auger becomes full, it is lifted out, scraped off and replaced. The handle is moved up and tightened by means of the set-screw as the auger goes down. At every slight change of the material the depth and the character of the material are recorded. "When hard material is encountered the auger-bit is screwed off and the drill-bit screwed on, thus forming a churn-drill, which may be used for passing through the hard material, the auger being replaced when softer material is reached. The churn-drill is used by lifting it and let- ting it fall, turning it slightly each time. Its weight makes it cut quite rapidly. When the drill is used the muck is either worked stiff enough to admit of its being withdrawn with the auger, or it is extracted by means of the sand-pump or a hickory swab. In either case the material is washed and a sample is obtained of the stratum through which the drill is cutting. 122 IRON ORES "Of course, the best work with such tools is done on soft material, but it is entirely practicable to go through hard material (a few feet of quartzite or flint, and many feet of ore being often encountered in a single hole), and the ability of this simple contrivance to go through interbedded layers of hard and soft substances makes it very efficient. "The cost per foot increases considerably with depths exceeding 50 feet, but at the greatest depth I attained (some 80 feet) I did not reach either its capacity or the limit of its economical use as compared with other methods. "Up to 25 feet, two men can operate it; from 25 feet to 35 feet, three men are necessary; from that to 50 feet, a rough frame, 15 feet to 20 feet high (costing something over $1.00), for the third man to stand on, is required. The frame can be moved from point to point. Above 50 feet it is generally necessary to take off one or two of the top-joints each time the auger or drill is lifted." Pits and Shafts. For an ore deposit which commences at or near the ground surface, test pits will probably be the first method thought of. Under such conditions they give the maximum of information, and are less expensive per foot of depth than either churn or core drills. Their possible depth is limited, however, for in ordinary materials it is rarely safe to put them down more than 30 feet without some sort of light timbering. This, and the hoisting necessities, make deep test pits rather more expensive than might be expected. Up to 50 feet they may justify this expense. For greater depths, unless the prospect shaft finally develops into a regular shaft, it will probably be found cheaper to take up one of the drilling methods. Test pits may range in cost from thirty to fifty cents per foot for untimbered holes rang- ing from 10 to 30 feet deep. Trenches and Drifts. For cross-cutting an inclined ore-body, trenches on the surface and drifts below the outcrop give better results than test pits or drilling. When the ore-body is struck, headings may be turned off along it to develop its length and continuity. The cost of such work will depend on the hardness of the material passed through, and on the amounts of timbering required. For short drifts, run for information only, timbering can be limited to actual immediate necessities; but if the drifts are expected to stay open for a year or more, they must be put in better shape. In this connection it is well to recollect that safety must be given consideration in prospecting work as well as in actual mining. The scattered nature of the workings, the dis- PROSPECTING AND TONNAGE DETERMINATIONS 123 tance from help and the relative lack of supervision all combine to make greater care necessary during the prospecting than at later stages of the mining work. ORE DENSITY; SPACE AND TONNAGE CONVERSIONS Throughout all of the preceding portion of this chapter, we have been concerned chiefly with the manner in which the size of the ore deposit is to be determined. Whatever the methods of prospecting adopted, the final results of it will be expressed in terms of space we will have determined that there are a certain number of cubic feet of ore available in the given deposit. But, since ore is actually sold by the ton and not by the cubic foot, it is obvious that it will be necessary to convert these space measurements into tonnage figures before we have really com- pleted the work of quantity determination. Theoretical or Maximum Density. It will be convenient to determine first the maximum density which a theoretically pure ore of any type could possibly attain, since this will set a limit in one direction for the variations observed in actual practice. If we were dealing with absolutely pure ores, at their maximum density, the four important iron minerals would give the results shown in the following table. The specific gravities for hematite and siderite are quoted from F. W. Clarke; the brown-ore density has been calculated from the value for hematite, on the theory that the common type of brown ore may carry 10 percent of combined water. Using these specific gravity data as bases, the weight per cubic foot and the number of cubic feet required to make up a long ton have also been calculated for the table. DENSITY OF PURE IRON MINERALS Q Spec. Weight per Cubic feet gravity cubic foot per long ton Magnetite 5.2 324.5 Ibs. 6.9 cu. ft. Hematite 5.2 324. 5 Ibs. 6.9cu. ft. Brown ore 4.8 299.5 Ibs. 7.5 cu. ft. Siderite 3.9 243. 4 Ibs. 9.2 cu. ft. Factors Decreasing Density. The data given in the preceding table relate to ores which are (a) theoretically pure iron minerals, and (b) free from pore space. But ores, as actually found and mined, are never absolutely pure, and never quite free from pores or cavities of varying size. Both of these factors operate to 124 IRON ORES reduce the actual density of ores below the theoretical maxima noted in the above table. In most cases, the effect of the rock impurities is by far the more important of the two causes of decreased density; but when dealing with the brown ores or with some of the softer hematites the effect of porosity is very marked. Some idea of the effect of impurities in reducing ore density can be gained from the following summary, which gives the specific gravity of the rocks and other materials likely to be associated with the ores. DENSITY OF GANGUE MATERIALS Rock or mineral Specific gravity Quartz 2.5 to 2. 8 Apatite 3 . 18 to 3 . 25 Calcite 2 . 5 to 2 . 8 Clays 1.9 average Shales 2.4 average Slates 2 . 7 to 2 . 9 Limestones 2 . 3 to 2 . 9 Sandstones 2 . to 2 . 7 Granites, gneisses 2 . 66 average Traps 2.7 to 3.1 It will be seen that, excepting titaniferous minerals and pyrite, all of the common impurities or associaties of iron ores are far lower in specific gravity than any of the iron minerals themselves. Density of Actual Ores. The following data on actual ore densities in various ore districts, covering different types and kinds of ore, will be of service in checking up tonnage estimates in materials of similar type. Taking up first the Lake Superior ores, the figures which follow are summarized from data presented by Van Hise and Leith on various pages of Monograph LII, United States Geological Survey. CUBIC FEET PER TON Range Vermillion Usual estimates 9 to 10 cubic feet per ton. Actual cal- culations show 8.75 feet for Soudan ore and 9.5 feet for Ely ore. Michipicoten. . . Range very wide; average 13.5 feet per ton. Mesabi Range very wide; from 9 cubic feet per ton for densest ores, to 17 or 18 feet for hydrated ores; average for range approximately 12 cubic feet per ton. PROSPECTING AND TONNAGE DETERMINATIONS 125 CUBIC FEET PER TON Range Cuyuna Hard ores average 10 cubic feet per ton; soft ores average 11.5 cubic feet; average for a large deposit consisting of both types might be 11 cubic feet per ton. Gogebic Range from 7.5 cubic feet for best hard ore, to 14 cubic feet in soft yellow ores. Average for range shipments about 10.75 cubic feet. Marquette Range from 7 cubic feet for best hard hematite and mag- netite, down to 14.5 feet for hydrated ores. Florence Range from 8 to 15 cubic feet per ton, with average of about 11 cubic feet. Menominee. . . . Range very wide; the bulk of the ores, however, will fall between 9 and 14 cubic feet per ton. The red hematites of the Wabana field of Newfoundland range from 48 to 56 percent metallic iron, in the different beds, and their porosity varies somewhat. The two factors give a moderate range in density for the ores. Samples collected by E. E. Ellis, and determined at the Ensley laboratory, gave the following results for typical Wabana ores from the three workable beds: Ore bed Specific gravity Upper seam 3 . 99 Scotia seam 3 . 95 Dominion seam. . . 4. 12 Average 4 . 02 This corresponds very closely to 9 cubic feet per ton. It may be of interest to note that the highest grade ore gave the lowest specific gravity, owing to its greater porosity. The red Clinton hematites of the southern and eastern United States vary somewhat in density according to their iron grade, but far more widely according to whether they are soft (leached) or hard (unleached) ores. There is little interest left concerning soft ores, for they have been worked out almost everywhere. The hard or unleached ores are fairly dense materials, and show less variation in gravity than might be expected. Seven samples from the Birmingham district, ranging from 35.19 to 38.05 per- cent metallic iron, gave specific gravities ranging from 3.42 to 3.56. For all practical purposes it is safe to assume, as was done in the calculation of the Birmingham district ore reserves, that the hard red ores will run almost exactly 10 cubic feet to the ton. The soft ores show gravities from 3.5 to 4.2 in powdered form, but their porosity lessens their real density in the ground, so that 126 IRON ORES it is not safe to count on their yielding much more than the hard ores per cubic foot. Massive bedded carbonates may run as high as 10 to 12 cubic feet to the ton as they occur in the ground. The nodular car- bonates, with considerable waste material, are of course much less dense in a natural condition; and may range as low as 15 feet per ton. Brown ores show the greatest variation in density. Pockets of high-grade ore may yield at the rate of 9 cubic feet per ton, but this is an exceptional condition. The brown ores of the Oriskany or Clifton Forge region of Virginia, which are perhaps the most solid of their type, yield at the rate of about 22 cubic feet per ton of washed ore. In southwestern Virginia and in north Georgia, where the washing ratio is higher, it may be neces- sary to allow 25 to 50 cubic feet to the ton of ore. Magnetites of the Adirondack and other regions vary chiefly according to iron content, since none of them show much porosity. High-grade ores such as some portions of the Mineville deposits yielded, show 7 or 8 cubic feet to the ton. From this we can grade down, according to iron percentage, to 20 or 25 cubic feet per ton of concentrates, where a 25 to 30 percent ore is under examination. CHAPTER XI MINING CONDITIONS AND COSTS However the ore deposit may have originated, and whatever the tonnage of ore it may contain, its proper development and utilization will involve a number of different operations before the ore is converted into merchantable metal. Summarized briefly, these will include mining the ore, in many cases concen- trating part or all of the ore mined, transporting the ore to a furnace, smelting it into pig iron, and probably carrying the proc- ess further to steel conversion and the manufacture of finished products. Any one of these operations would, if treated in technical detail, require a volume for its adequate presentation. But in the present place there is no necessity for discussing technical details or methods, except in so far as they influence the industrial value or competitive importance of ore deposits. Keeping in mind this limitation in the scope of treatment, the present chapter will include some discussion of mining costs in various districts, for which ample details have fortunately become available recently. In later chapters the influence of furnace and mill requirements on ore values will be taken up, followed by discussion of natural ore grades and concentration possibilities. General Mining Methods. Probably nine mines out of ten are, at the very commencement of operations, worked as open cuts for a time. Ordinarily this lasts until the stripping becomes a serious problem, and then the question arises as to permanent methods. Under certain conditions there is, of course, little room for choice in this matter. A thin vertical or steeply in- clined ore-body, extending downward to great depths, will neces- sarily be worked by means of a shaft or slope. An approximately horizontal ore-body, extending to the surface at many points, will almost necessarily be worked as an open cut. These two cases, whose method of treatment is obvious enough on merely stating the facts, include many of the iron-ore deposits commonly en- countered. The eastern magnetites, for example, ordinarily 127 128 IRON ORES occur as more or less steeply inclined lenses; the Clinton red ores occur normally as inclined beds; and in each of these cases shafts or slopes are the only feasible methods of working. Most of our brown ores, on the other hand, occur as deposits reaching the ground surface at many points, and not extending downward to any great depth. In this case an open cut is the only thing to be considered. But there are cases, and important cases, where there is dis- tinct room for choice between the two methods of operation. The bulk of the Mesaba deposits, for example, would fall in this doubtful group; many of the Oriskany and other brown ores are equally open to discussion; and occasionally hematites and magnetites of other regions occur in deposits whose proper method of working may not be absolutely fixed by natural conditions. The following comparison of costs as between the open-pit and the underground mines on the Mesabi range is quoted in slightly rearranged form, from the report of the Commissioner of Cor- porations on the Steel Industry, pt. 3, p. 43. It is based on a very large proportion of the total operations on that range during the years 1902 to 1906 inclusive. Open-pit Milling and under- mines ground mines Tonnage covered 28,984,383 35,500,173 Costs per ton Labor $0.10 $0.40 Supplies 0.04 0.16 Repairs ' 0.01 0.01 General expense 0. 01 0. 02 Stripping 0.06 0.04 Actual mining costs 0.22 0.63 Depreciation 0.06 0.09 .Royalties 0.24 0.27 Total cost per ton $0.52 $0.99 A word of warning may not come amiss when such figures as these are under consideration. In considering the relative advan- tages of surface and underground mining, it must be borne in mind that the Mesabi offered exceptional conditions in favor of steam-shovel work. The individual deposits are large, continu- ous, and when once stripped the openings are practically free from waste matter. This brings down costs per ton of ore to a mini- MINING CONDITIONS AND COSTS 129 mum which is not likely to be approached in ordinary ore fields. In most parts of the world there will be sufficient irregularity in the ore deposit to increase actual operating costs very heavily, and there will be a large amount of dead work and exploratory work to be done which will add to total costs. Cost of Mining Lake Ores. WJien Finlay, in 1909, prepared his valuable monograph on "The Cost of Mining," he notes that he could find no general data on the cost of mining iron ores in the Lake Superior district. Data concerning the costs at individual mines were available, it is true, but none of these covered sufficient tonnage and sufficient variety in operating conditions to make them serviceable as bases for drawing conclusions regarding the average cost of the entire Lake Superior output, or of any consid- erable proportion of it. In this respect, conditions have changed radically since 1909, owing to the extensive and unsolicited publicity which different branches of the iron business have received from various depart- ments of both the Federal and the State governments. To one who has not kept close track of this line of activity, it is difficult to realize how far it has extended. The matter may fairly be sum- marized by saying that during the past three years investigations of more or less moment to the iron industry have been carried out by the House of Representatives, the Department of Justice, the Bureau of Corporations, the United States Geological Survey, and the Michigan and Minnesota Tax Commissions. Many of the results of these investigations have been placed before the public for its instruction or amusement. An estimate which I made recently places the total amount of reports and other publica- tions issued by the above agencies, and dealing with the iron business since 1909, as being in excess of twenty thousand printed pages. For convenience we may say that over ten million words of printed information, advice or warning have been showered on this industry during the past three years. Of course the bulk of this enormous tonnage is of no interest to the engineer, or indeed to anyone else dealing with the realities of life. But, on the other hand, it is very difficult for any set of men, the Congressional Record to the contrary notwithstanding, to utter ten million words on one subject without including any facts whatever. And so, on carefully examining this large mass of available published material, we are rewarded by coming at inter- 130 IRON ORES | eS 00~ $ o 8 o CO l> Tt* o -S I 0000000 ^ 8 1 CO O rH t> -tf CO Tt< 00 00 l> $ s 3j s 0000000 goo 8 it rH Tj^ 00 "* (N O5 1C 10 t^ * CO ^^ CO 3 0000000 goo 8 1 O CO CO 00 O CO t^ to c^ ^^ ^^ c^ co ^^ ^Jg^ o g c3 o o o o o o o ^ w t> CO c 8 1 oo~ 00 !> C^ rH O5 Oi CO t^ (N O T-H C^ CO O 05 < t^ O 3 0000000 s si jminee CO s OS C^ Tt^ ^^ l^ '^ ^O t> CO O TH CO C<> O T^ O O5 CO O5 a rH o d d d d d d 5^ 8 1 co OS OS TJH (N CO O rj< i> (N O rH Foundry Iron No. 2 1877 7.00 1878 1879 6.50 7.00 1880 1881 1882 10.00 10.00 10.00 1883 7.50 $4.75 1884 6.00 4.50 1885 1886 5.75 6.25 4.00 4.50 1887 1888 7.00 5.75 5.00 4.00 1889 5.50 3.75 1890 5.50 no sale 5.25 no sale $22.15 $18.15 1891 4.50 no sale 4.25 no sale 15.15 15.00 1892 4.50 no sale 3.65 no ale 15.00 13.65 1893 3.85 $3.00 3.20 no sale 12.65 12.15 1894 2.75 2.35 2.50 no sale 9.65 9.65 1895 2.90 2.19 2.25 $1.90 9.40 9.40 1896 4.00 3.50 2.70 2.25 12.40 11.15 1897 2.60 2.25 2.15 1.90 8.35 8.40 1898 2.75 2.25 1.85 1.75 9.55 9.80 1899 3.00 2.40 2.15 2.00 10.30 9.75 1900 5.50 4.50 4.25 4.00 24.15 22.15 1901 4.25 3.25 3.00 2.75 16.15 14.40 1902 4.25 3.25 3.25 2.75 15.90 15.90 1903 4.50 4.00 3.60 3.20 21.50 21.65 1904 3.25 3.00 2.75 2.50 13.35 13.15 1905 3.75 3.50 3.20 3.00 15.50 16.00 1906 4.25 4.00 3.70 3.50 17.25 17.25 1907 5.00 4.75 4.20 4.00 21.50 21.50 1908 4.50 4.25 3.70 3.50 16.00 15.00 1909 4.50 4.25 3.70 3.50 14.75 14.25 1910 5.00 4.75 4.20 4.00 19.00 17.25 1911 4.50 4.25 3.70 3.50 15.00 13.75 1912 3.75 3.50 3.00 2.85 14.25 13.25 1913 4.40 4.15 3.60 3.40 17.25 17.50 The prices quoted in the preceding table are for ores carrying a certain percentage of iron, delivered at Lake Erie ports. Now, as the average grade of the ore shipments from the Lake region has decreased slowly, there have at intervals been changes in the percentage of iron contained in the ore used as a basis for 172 IRON ORES prices. These changes of course affect the comparison, and the following table, quoted direct from the Iron Trade Review, is serviceable in calling attention to the real changes in price per unit of iron. PRICE PER UNIT OF IRON, 1903-1913 Fluctuations of iron-ore prices expressed in values of units of iron in natural state. Old Range Mesabi Non- Non- Bessemer, Bessemer, Bessemer, Bessemer, cents cents cents cents 1903 7.94 6.82 7.05 6.06 1904 5.73 5.21 5.29 4.73 1905 6.61 6.06 6.17 5.66 1906 7.50 7.01 7.05 6.60 1907 9.09 8.16 8.64 7.77 1908 8.18 7.18 7.73 6.80 1909 8.18 7.18 7.73 6.80 1910 9.09 8.16 8.64 7.77 1911 8.18 7.18 7.73 6.80 1912 6 . 82 5 . 83 6 . 36 5 . 53 1913 8.00 6.99 7.55 6.60 The average prices per unit of iron, for the eleven years covered by the preceding table, are as follows: Old Range Bessemer 7 . 76 cents Mesabi Bessemer 7.27 cents Old Range non-Bessemer 6 . 89 cents Mesabi non-Bessemer 6 . 47 cents For a long and fairly representative period, therefore, we may assume that the bulk of the merchant tonnage of Lake ores sold, at lower Lake ports, at around seven cents per unit of contained iron; more for low-phosphorus ores and less for high-phosphorus ores. The Atlantic Ore Market. The Lake ore market has been said to be the largest in the world, so far as tonnage sold from a single district is concerned. But it is not so complicated, so large in total tonnage, or so widely competitive, as that existing along the North Atlantic coasts of Europe and America. It might be further added that this Atlantic market seems likely to attain greatly increased importance in future. It is difficult to make any very precise estimate as to the actual tonnage of iron ore sold in the Atlantic coast markets during a normal year. It amounts, however, to considerably in excess PRICES, PROFITS AND MARKETS 173 of twenty million tons annually. Of this about half is taken by Germany, and almost half by Great Britain. The remainder is bought chiefly by furnaces in Belgium and the United States; for the Sydney plants, though using imported (Newfoundland) ore, take it from their own mines and so do not enter the general market. The mines which furnish this large merchant tonnage are located in widely separated countries. Sweden and Spain furnish the bulk of the British and German imports, if we disregard ore brought into Germany from French Lorraine. Newfound- land, Cuba, Algiers, Russia, the Adirondacks and other areas of less importance furnish smaller portions of the Atlantic mer- chant tonnage. Details as to production, exports and imports of ore will be found tabulated in various chapters of Part III of this volume, and it is unnecessary to present exact figures here. What we are chiefly concerned with now is that here is a market taking twenty million tons or more a year of iron ore; taking it from many competitive sources, and using it in many competitive furnaces. It is unquestionably a far wider and freer market than the Lake market can ever be. And, since most of the furnaces which it supplies are on tidewater (or on navigable rivers or canals), the Atlantic ore market is the keystone of the world's export trade in iron and steel products. Within the Atlantic market the range in ore prices is wide, varying from year to year according to the condition of ocean freights, as well as varying more definitely according to grade and character of ore. The part played by the ocean freight rate is important, but too variable to be more than approximately stated here. With the exception of such long hauls as the proposed Chilian and Brazilian ores will require, it may be said that during a long series of years the ocean-borne iron ore of the world pays a freight rate ranging between three and seven shillings per ton. Few hauls ever fall below the minimum quoted; while little important tonnage moves at a higher rate than the maximum stated above, even in years of brisk ocean traffic. These limits may be reduced, for convenience, to a unit basis; they would range between perhaps one and one-half to three cents per unit of metallic iron. The total price realized at Atlantic coast markets, including 174 IRON ORES of course the ocean freight, may range between five and one- half and eight and one-half cents per unit of iron. The lowest price is secured by ores with undesirable physical structure, with phosphorus between difficult limits, or with other unusual constituents. The higher unit prices are realized by ores high in iron, and with phosphorus either below the acid Bessemer limit or above the basic Bessemer limit. CHAPTER XV THE EFFECTS OF TIME ON VALUATION In Chapter IX, where the basal factors in valuation were sum- marized, it was noted that the element of time must be con- sidered in attempting to arrive at the present value of a large ore property. This is true, not only in the sense in which it is now commonly understood, but in an entirely different and (to some extent) opposing sense. If we are to come to a correct con- clusion as to the present valuation to be placed on an ore property, we must not only allow a discount for the time which will be taken in exhausting it and realizing the total profits, but we must take into consideration the factors which are likely to increase ore values in future. Determination of Total Present Value. After the engineer has determined (1) the available tonnage of ore on the property and (2) the average value or profit per ton of this ore, he is prepared to undertake the final determination of (3) the total present value of the property. In case the total tonnage is so small that it will all be worked out in the course of the first year after purchase, the total present value of the property is of course found by simply multiplying tonnage by value per ton. But except in the case of very small properties, the complete extraction of the ore will necessarily be spread over a number of years, under which circumstances the problem is no longer a matter of simple multiplication a fact which is often overlooked. To put this matter in its simplest terms, it is obvious that a dollar which will not be earned or received until 1950 has not the same present value as a dollar receivable during the current year. A ton of ore which will not be mined until 1950 can not, accordingly, be considered to be as valuable as a ton which will be mined and sold or used during the present year. In order to arrive at the total value of a large ore property it is therefore necessary to discount the value of the tonnage according to the length of time for which certain portions of it will remain unmined. 175 176 IRON ORES It will perhaps be clearest if the matter is put in the form of a specific instance. We may assume, therefore, that we are deal- ing with a property containing 1,000,000 tons of iron ore; and that the owner expects either to have this mined on a royalty of twenty-five cents per ton, or if he mines it himself to receive net profits of the same amount per ton. In either case the total amount which will ultimately be received from the property will be $250,000. But, unless the entire 1,000,000 tons is to be mined in the first year, it is obvious that the actual present value of the property will be something less than $250,000, for a series of payments to be made over a series of years must be discounted in order to determine their present value. All of this is simple enough, but it is rarely understood how very heavily the more distant payments must be discounted, and how great a difference there often is between total and present value. In order to understand the importance of this factor, it is necessary to recall that we are dealing with a problem in com- pound discount; and that, as will be later noted, we have to assume a rather high rate of interest because of the character of the security offered. Even at 6 percent the discounting effect is very great, as is shown by the following table. TIME VALUES AT 6 PERCENT C Sf Discount Years Compound Discount .0600 0.943 10 1.7908 0.558 .1236 0.890 15 2.3965 0.417 .1910 0.840 20 3.2071 0.311 4 .2625 0.792 25 4.2919 0.233 5 .3382 0.747 30 5.7435 0.174 6 1.4185 0.705 35 7.6861 0.130 7 1.5036 0.665 40 10.2858 0.097 8 1.5938 0.627 50 18.4190 9 1.6895 0.592 Proper Carrying Charge. In figuring amortization against ore reserves, as well as in calculating the present value of large reserves, there seems to be frequently shown a tendency to assume an unfairly low interest rate. It is assumed, for example, that because a steel company may, during years of easy money, float its first mortgage bonds on a 5 percent basis, or perhaps somewhat better, that ore calculations may be made on the same basis. Indeed we have recently had one prominent instance the so- THE EFFECTS OF TIME ON VALUATION 177 called Hill ore lease where 4 percent seems to have been accepted as the basis for calculation. Taking everything into consideration, it does not seem justifi- able, in considering long-time ore calculations, to assume a carry- ing rate of less than 6 percent. It does not seem probable that, under any ordinary conditions in the American money market, any steel company whatever could secure money at a lower rate if ore reserves were the only security offered. We have, indeed, one very decisive case of this kind available for consideration. In 1907 the Spanish-American Iron Company, a subsidiary of the Pennsylvania Steel Company, offered a series of 6 percent bonds, secured by its Cuban ore deposits, on a basis which per- mitted public sale at 98|. These bonds were guaranteed, prin- cipal and interest, by the parent company; and were part of an authorized issue of five million dollars, against which six hundred million tons of ore were pledged. Of course 1907 was a year of dear money throughout, but in view of the ample security and incidental guarantees of various sorts which characterized this issue, it does not seem probable that a straight ore bond could be floated by any company, even in an average year, at a lower rate. The Great Northern ore lease is, in this connection, of peculiar interest, though it can hardly be considered as making a sound precedent. It will be recalled that in the Hill lease the ore price increased 4 percent per annum. This would seem to have been an entirely false basis for calculation, and the effect of the un- justifiably low interest rate is shown markedly when the ore prices are discounted on a proper basis. The base-ore nomi- nally valued for the first year at eighty- five cents per ton; but when values, are re-calculated on a 6 percent basis, it will be found that this means a real " present value" of forty to sixty cents a ton, according to the probable duration of the ore reserves covered by the lease. The value per ton placed upon the Hill ores was in reality, therefore, much less than the face or nominal value which has been so frequently discussed. It might further be noted, in relation to proper interest rates, that the main ore reserves now coming into sight are located in areas where local money conditions favor high rates. Brazil, Cuba, and even Alabama and Texas, are not areas of normally cheap money; and local financing of a straight ore security would probably mean rates ranging from 8 percent upward. So that, 12 178 IRON ORES all things considered, we are not likely to under-estimate the matter much by assuming 6 percent as the minimum carrying charge or discount rate. Even at this rate the discounting effect is more than might casually be expected. If ore is being mined on a royalty basis of twenty-five cents per ton, the royalties for the tenth year of the lease can be given a present value of only fourteen cents per ton; while those to be earned in the fortieth year have a value now of only about two and one- half cents a ton. In other words, a property which can not be worked out in forty or fifty years does not derive much additional present value from the ore still in the ground at the end of that time. It is this fact which puts a purely commercial limitation on the acquisition of excessive ore-reserves, as will be pointed out in a later chapter. Possible Changes in Ore Values. The operation above dis- cussed the discounting of total value to allow for the years spent in extraction has an air of precision and finality which makes it very attractive to a certain type of mind; and accordingly we find that many estimates are now so discounted. It is true that those- who insist on precise results can go no further than this stage of refinement; but it is also true that those who prefer general accuracy to misleading precision must still consider another factor in the problem. Up to this point we have assumed, as is the common practice, that the average value per ton will remain fixed during the pro- ductive life of the property. For short periods of time, this assumption is reasonably correct, and it would be simply hair- splitting to consider any other possibility if the property is to be exhausted within five or ten years. But if the property promises a life of twenty, or fifty or one hundred years and there are such properties still in the market the matter takes on an entirely different aspect. In the opinion of the writer, the principal factors which must be considered in this connection may be summarized as follows : 1 . There is little probability that any large supply of ore grad- ing above 50 percent metallic iron still exists unknown in the United States. So far as magnetites and hematites are concerned, the inferior limit might be safely lowered to 40 percent, and the above statement would still hold, for it is highly improbable THE EFFECTS OF TIME ON VALUATION 179 that any unknown field exists containing one hundred million tons of magnetite or hematite of even this grade. But with re- gard to brown ores the case is different, for there are probably large tonnages of these ores, grading from 40 to 50 percent, still unprospected. 2. There is every reason to suppose that brown ores of the type now shipped from the north shore of Cuba will be dis- covered, in really immense tonnages, elsewhere in the Caribbean area. These and the Wabana ores may ultimately control the location of the export steel mills of the United States, but they will not serve to decrease the values of higher grade interior ores. 3. The supply from Canada may be increased from sources now unknown, but the chief possibilities for large new ore fields in Canada are so located that they will hardly affect the world's ore trade. 4. The high-grade supplies from Sweden, Norway, Spain, Algiers and Morocco will continue for years to come, but will hardly extend their present markets. 5. South America, Africa and Asia may, and probably will, yield immense new tonnages; but until the manufacturing in- dustries and general civilization of the world seek new centers these distant deposits can not affect values to any calculable extent. The preceding summaries merely embody the writer's judg- ment on the points at issue, and are of course open to discussion. But if they are substantially correct, two deductions must in- evitably be drawn from them. I. Domestic ores grading above 50 percent metallic iron and so located as to reach interior markets are not likely to be sub- jected to new and serious competition. As the domestic reserves of this grade are limited, ores of this type will increase in value steadily and perhaps rapidly. Under these circumstances, the increase in value per ton will in most cases, counter-balance the allowance made in discounting the total value to present value; and therefore a company owning a fifty-year supply of such ores is probably fairly entitled to value them somewhat as if the entire tonnage could be used in the present year. II. Domestic ores grading between 50 and 35 percent metallic iron are likely to be subject to competition from at least three sources: the further development of the Caribbean 180 IRON ORES and Wabana fields, the discovery of new brown-ore areas, and the marketing of low-grade magnetites. This competition is likely to prevent ores of this grade from showing a very rapid in- crease in value; and in dealing with large holdings of this type of ore it is probably safest to discount their value according to their probable length of life. PART III. IRON ORES OF THE WORLD CHAPTER XVI THE IRON ORES OF THE UNITED STATES Before taking up the description of the various iron-ore pro- ducing regions of the United States, it will be well to get some idea both as to the rank of the country, as a whole, among the ore- producers of the world and as to the general tendencies which may exist in the American ore trade itself. The present chapter may therefore be regarded as a preliminary discussion, covering these general points of interest. Except where otherwise noted, the statistics on which the discussion is based are those pub- lished annually by the United States Geological Survey. They have been rearranged where necessary to better serve our present purpose. Status of the United States. For a number of years past the United States has been both the leading consumer and the leading producer of iron ore, its consumption and output being approxi- mately two-fifths of the world's totals. In ore production Germany ranks second and Great Britain third, ordinarily fol- lowed by France, Spain, Russia, Sweden and Austria in the order named. The three leading producers the United States, Germany and Great Britain usually produce together about three-quarters of the world's output of iron ore. In later chap- ters details will be given as to the world's annual output of iron ore. Of the leading ore producers, Spain and Sweden export most of of the ore mined and the same may be said of Cuba, Newfound- land and Algeria, all of which furnish about one million tons yearly for export. On the other hand, Belgium, which has a very low rank as a producer of iron ore, is a consumer on a considerable scale. Great Britain is a heavy importer of ore, and Germany also takes considerable foreign ore. The United States is practically self-contained in this regard, for the exports of ore almost balance the imports. This condi- tion, however, is not likely to continue, and it is probable that in 181 182 IRON ORES THE IRON ORES OF THE UNITED STATES 183 future imported ores will make up a more important proportion of the consumption than they have in the past. American Iron-ore Output, 1860-1912. Detailed statistics relative to the production of iron ore in the United States are not available, except for a few of the census years, back of the year 1889, when the United States Geological Survey first began col- lection of data on this subject. The following table contains all the definite statistics relative to the total iron-ore production of the United States, for such years as are covered by reliable data. Later the present writer furnishes estimates for the earlier years, based on the pig-iron production, concerning which we have more complete information prior to 1889. In the table following, the data for the years 1860, 1870 and 1880 are taken from reports of the federal census for those years; the figures from 1889 to the present date are from the annual statistical volume issued by the United States Geological Survey. PRODUCTION OF IRON ORE IN UNITED STATES, 1860-1910 Year 1860 1870 1880 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 Long tons 2,873,460 3,831,891 7,120,362 14,518,041 16,036,043 14,591,178 16,296,666 11,587,629 11,879,679 15,957,614 16,005,449 17,518,046 19,433,716 24,683,173 27,553,161 Year 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 Long tons 28,887,479 35,554,135 35,019,308 27,644,330 42,526,133 47,749,728 51,720,619 35,924,771 51,155,437 56,889,734 43,876,552 55,150,147 Imports of Iron Ore. The following tables, taken from the statistical volume of the United States Geological Survey, give details as to the import movement in iron ores. The first table gives the total imports of ore into the United States, for each year from 1872 to date. Prior to 1872 there had been irregular and small imports, mostly from Canada, of which no record was kept by the government. 184 IRON ORES IMPORTS OF IRON ORE, 1872-1912 Year Quantity Year Quantity Year Quantity 1872 23,733 1885 390,786 1899 674,082 1873 45,981 1886 1,039,433 1900 897,831 1874 57,987 1887 1,194,301 1901 966,950 1875 56,655 1888 587,470 1902 1,165,470 1876 17,284 1889 853,573 1903 980,440 1877 30,669 1890 1,246,830 1904 487,613 1878 28,212 1891 912,864 1905 845,651 1879a 150,197 1892 806,585 1906 1,060,390 18796 284,141 1893 526,951 1907 1,229,168 1880 493,408 1894 167,307 1908 776,898 1881 782,887 J895 524,153 1909 1,694,957 1882 589,655 1896 682,806 1910 2,591,031 1883 490,875 1897 489,970 1911 1,811,732 1884 487,820 1898 187,208 1912 2,104,576 a Fiscal years end. b Calendar years begin. As regards the source of these imports, details are found in the table on page 183. It will be seen that Cuba is by far the most important contributor; followed by Sweden, Newfoundland, Canada and Spain in the order named. Exports of Iron Ore. The ore exported from the United States so far as recorded is given in the following table, also taken from the Geological Survey publication. It may be noted that practically all of these exports are of Lake Superior ores, passing directly from the mines to Canadian furnaces. Smaller tonnages go into Canada from the Lake Champlain region. A tonnage reported by the Government as clearing each year from Puget Sound is somewhat mystifying, unless it is of ore sent as flux to some British Columbia smelter. Year 1899 1900 1901 1902 1903 1904 1905 EXPORTS OF IRON ORE, 1899-1912 Tonnage Year Tonnage 40,665 1906 265,240 51,460 1907 278,608 64,703 1908 309,099 88,455 1909 455,934 ,80,611 1910 748,875 213,865 1911 768,386 208,017 1912 1,195,742 THE IRON ORES OF THE UNITED STATES 185 a CO rH g lf OS oo oo o 10 58 iOCOOOO 8 O5iOCOOCOOCO-^OOCO (M O* IO os o t^ co ^ "^ 1 co" r-T co" rH OO CO |> ?rH CO iO O rH CO 82 ** Ttn O CO >O . OOO^ OOCO lOOO OO O W3 CO -Oi-i rH OS O OS OS rH IO CO rH CO O rH OS 1> (M rHQOlO-^O -rHl>rHi-HCO Ol>OOOrH COrH-^COl> cotNcorH ;oo COC^IM - C^OSCOi-HCN 186 IRON ORES With the completion of the jib way plant of the United States Steel Corporation it is of course obvious that exports of American ore will increase largely. Tonnage Available for Consumption. In a later chapter some attempt will be made to arrive at an estimate of the actual con- sumption of ore in the United States, in comparison with the amount of pig iron produced. At present, however, it will be of more immediate interest to determine merely the amount of ore which is nominally available for consumption each year, by striking a balance between production, imports and exports. Thus I have done in the following table, which covers the years 1899 to 1912 inclusive. TONNAGE AVAILABLE FOR CONSUMPTION, 1899-1912 Year Domestic production Imports .Exports Available for consumption 1899 24,683,173 674,082 40,665 25,316,590 1900 27,553,161 897,831 51,460 28,399,512 1901 28.887,479 966,950 64,703 29,789,726 1902 35,554,135 1,165,470 88,445 36,631,160 1903 35,019,308 980,440 80,611 35,919,137 1904 27,644,330 487,613 213,865 27,918,078 1905 42,526,133 845,651 208,017 43,163,767 1906 47,749,728 1,060,390 265,240 48,544,878 1907 51,720,619 1,229,168 278,608 52,671,179 1908 35,924,771 776,898 309,089 36,392,580 1909 51,155,437 1,694,957 455,934 52,394,560 1910 56,889,734 2,591,031 748,875 58,731,890 1911 43,876,552 1,811,732 768,386 44,919,898 1912 55,150,147 2,104,576 1,195,742 56,058,981 American Ore Output, by States. The following tables give the output of iron ore in the United States during the years 1910, 1911 and 1912 respectively, classified both by kinds of ore and by the States in which it was produced. As the data contained in these tables will be useful as bases for various investigations, they are inserted as a matter of convenient record. THE IRON ORES OF THE UNITED STATES 187 60 50 40 -30 20 10 /0 s YEARS FIG. 22. Iron-ore output of entire United States, of the Lake Superior district, and of the Mesabi range. 188 IRON ORES 1910 State Hematite Brown ore Magnetite Carbon- ate Total quantity Alabama. 3,678,139 1,123 136 4 801 275 California, Colorado, New Mexico, Wash- ington, and Wyoming Connecticut and Mas- 656,629 15,975 34,158 189,246 861,850 34,158 sachusetts Georgia 60,324 253,554 313 878 Kentucky and West Virginia 47,493 16,854 64,347 Maryland. . . 14,062 14,062 Michigan 13,303,906 13 303 906 Minnesota 31,966,769 31,966,769 Missouri 55,832 22,509 78,341 New Jersey . (a) 52 1,832 521,832 New York 64,738 () a l,222,471 1,287,209 North Carolina. 65,278 65,278 Ohio ... 22,320 22 320 Pennsylvania Tennessee 846 301,838 106,544 430,409 632,409 739,799 732,247 Texas . 29535 29 535 Virginia 81,647 821,131 599 903,377 Wisconsin 1,148,846 705 1,149,551 Total 51,367,007 2,868,572 2,631,835 22,320 56,889,734 Brown ore is included in magnetite. 1911 State Hematite Brown ore Magnetite Carbonate Total quantity Alabama 2,983,440 844,351 3,827 791 Georgia . . 14,955 188 934 203 889 Michigan 10,329,039 10,329,039 Minnesota . . 24,645,105 24 645,105 Missouri. 57,201 8,124 65 325 New Jersey 2,182 464,052 466,234 New York Ohio 32,048 1,029,231 15,707 1,061,279 15 707 Pennsylvania. . . . Tennessee 9,692 255 373 49,906 208 462 477,908 537,506 463 835 Utah 39,903 39 903 Virginia .... 63,019 550,142 862 614 023 Wisconsin 698,660 698 660 Other States 537 692 140 090 230 474 908 256 Total 39,626,224 2,032,094 2,202,527 15,707 43,876,552 California, Colorado, Connecticut, Idaho, Kentucky, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Mexico, North Carolina, West Virginia, and Wyoming. THE IRON ORES OF THE UNITED STATES 189 1912 State Hematite Brown ore Magnetite Carbon- ate Total quantity Percentage of increase (+) or de- crease ( ) in 1912 Alabama. 3,814,361 749,242 4,563,603 + 19.22 California. 2,508 2,508 () Georgia. (6) 6 134,637 134,637 -33 97 Kentu cky 27 373 27,373 () Maryland. 3,200 3,200 () Michigan 11,191,430 11,191,430 + 8 35 JMinnesota 34 431 768 34,431,768 +39 71 Missouri . . . New Jersey 39,721 3,759 364,673 43,480 364,673 -33.44 -21.78 New York 106 327 1,110,345 1,216,672 + 14 64 North Carolina 68,322 68,322 () Ohio. 10,346 10,346 -34 13 Pennsyl- vania Tennessee. 10,557 245 754 30,371 171,131 476,153 517,081 416,885 - 3.80 10 12 Texas 3000 3 000 () Utah 7,280 7,280 -81.76 Virginia. 47472 398,833 446,305 -27.31 West Virginia 5,061 5,061 () Wisconsin. 860 600 860,600 +23.18 Other States 6 ... . 562,219 116,172 157,532 835,923 +4.09 Total 51,345,782 1,614,486 2,179,533 10,346 55,150,147 +25.69 Less than three producers in California, Kentucky, Maryland, North Carolina, Texas, and West Virginia in 1911, and permission not secured to publish State totals. Increases and decreases in 1912, therefore, included in "Other States." 6 Hematite included in brown ore. c Colorado, Connecticut, Idaho, Massachusetts, Montana, Nevada, New Mexico, and Wyoming. Iron-Ore Districts of the United States. Iron ores, in greater or less quantity, are known to occur in almost every State and Territory of the United States; and at one time or another iron mining has been carried on in practically all of these political divisions. During recent years, however, from 25 to 30 states appear in the producing list, and no serious change in this respect seems likely to occur in the near future. For convenience both in description and in the presentation 190 IRON ORES of statistics in a really intelligible form, it is advisable to group the producing states in four natural districts, defined both by geographic and trade conditions. The four districts in question, with the states which they include, are: 1. Lake Superior District; including the producing states of Minnesota, Michigan and Wisconsin. 2. Southern District; including the states of Alabama, Georgia, the Carolinas, the Virginias, Tennessee, Kentucky, Maryland, Arkansas, Missouri and Texas. 3. Northeastern District; including New York, New England, New Jersey, Pennsylvania and Ohio. 4. Western District; including the states of the Plains, the Rocky Mountain and Pacific Coast regions. The following table gives the production of iron ore in these four districts during the years 1905 to 1912, inclusive. IRON ORE PRODUCTION, BY DISTRICTS, 1905-1912 1905 1906 1907 Tonnage Percent Tonnage Percent Tonnage Percent Lake Superior . . Southern Northeastern.. . Western 33,480,367 5,700,819 2,520,845 824,102 78.73 13.41 5.93 1.93 38,035,084 6,325,710 2,582,666 806,268 79.66 13.24 5.41 1.69 41,638,744 6,427,195 2,823,422 831,258 80.51 12.42 5.46 1.61 42,526,133 100.00 47,749,728 100.00 51,720,619 100.00 1908 1909 1910 Tonnage Percent Tonnage Percent Tonnage Percent Lake Superior. . Southern 28,225 412 5,639,201 78.57 15 70 41,942,969 6,294,145 81.99 12 30 46,420,226 7,002 340 81.60 12 31 Northeastern. . . Western 1,590,098 470,060 4.42 1 31 2,280,741 637 582 4.46 1 25 2,605,318 861 850 4.58 1 51 35,924,771 100.00 51,155,437 100.00 56,889,734 100.00 1911 1912 1913 Tonnage Percent Tonnage Percent Tonnage Percent Lake Superior. . Southern 35,672,804 5,367,854 81.30 12.21 46,483,798 5,711,866 84.29 10.35 Northeastern.. . 2,098,923 4.79 2,139,058 3.88 Western 746,971 1.70 815,425 1 48 43,876,552 100.00 55,150,147 100.00 THE IRON ORES OF THE UNITED STATES 191 Ore -consuming Districts. The preceding data as to produc- tion, imports, exports etc., are rendered more intelligible when they are placed in relation to the actual ore-consuming areas or districts of the United States. Fortunately this can be done, if not with absolute precision, at least with sufficiently results to be of industrial value. From the steel-making standpoint, there are four iron-ore consuming regions in the United States. These are as follows: 1. The Central Region; including all the furnaces in Michigan, Minnesota, Wisconsin, Missouri, Illinois, Indiana, Ohio, western Pennsylvania and western New York. These plants normally use Lake Superior ores (plus a little local ore in Ohio and Missouri). 2. The North Atlantic Region; including New England, New Jersey, eastern New York, eastern Pennsylvania and Maryland. These plants normally use local or imported ores; though some Lake ore comes in at times. 3. The Southern Region; including all plants from Missouri and Maryland south to the Gulf of Mexico. These plants all use local ores. 4. The Western Region; including plants in the Rocky Mountain and Pacific Coast states. These plants now use local ores entirely. Using this classification as the basis, it is possible to allot the ore production, imports and exports among these four regions with a close approach to accuracy. I have prepared the fol- lowing table, which gives the results of such allotment. ORE CONSUMPTION IN VARIOUS REGIONS 1910 1911 1912 Tons Per- cent Tons Per- cent Tons Per- cent Central Region. . . . North Atlantic. . . . Southern Region . . . Western Region . . . 45,790,000 9,466,000 2,605,000 868,000 78.0 16.0 4.5 1.5 34,943,000 7,156,000 2,099,000 732,000 77.7 15.9 4.7 1.7 45,360,000 7,765,000 2,139,000 795,000 81.0 13.8 3.8 1.4 58,729,000 100.0 44,930,000 100.0 56,059,000 100.0 It will be noted that the totals reached in this 'way do not agree exactly with those in a preceding table giving estimates of the tonnage available for consumption in the entire United 192 IRON ORES THE IRON ORES OF THE UNITED STATES 193 States in different years. The differences are due to small tonnages which can not be precisely allotted without more information than is now available; and the possible errors are too small, in any event, to seriously affect the value of the results. 13 CHAPTER XVII THE LAKE SUPERIOR DISTRICT Considered either from the industrial or the geologic stand- point, the Lake Superior district includes portions of the three states which border on that lake, together with part of the Canadian Province of Ontario. In the present volume, however, such developments as have been made on the Canadian side of the boundary will be briefly noted in a later chapter, while in this chapter attention will be directed chiefly to that portion of the Lake district which lies in the United States. During recent years the Lake Superior district has produced about four-fifths of the entire iron-ore output of the United States. There is no serious probability that this proportion will decrease much in the near future, so that for many years to come this region will be the most important source of our domestic-ore supply. LOCATION AND GEOLOGY The Lake Superior Ore Ranges. A number of more or less distinct areas or " ranges" contribute to make up the total output of the Lake district. The progress of development tends to change the classification somewhat, but it can still be said that five ranges produce the bulk of the output. These are the Mesabi and Vermillion, located in Minnesota; the Marquette, entirely in Michigan; and the Gogebic and Menominee, mostly in Michigan but extending over into Wisconsin. In addition to these five great ranges, relatively small ship- ments are now made from the Baraboo and Iron Ridge areas in southern Wisconsin, the Cuyuna range in Minnesota, and occa- sionally from Spring Valley and other brown-ore areas in north- western Wisconsin. At intervals, it may be noted, small ship- ments have also been made from a brown-ore area in Iowa, which reached the same markets as the Lake ores, and is mentioned here merely to complete the record. The five ranges first 194 THE LAKE SUPERIOR DISTRICT 195 mentioned, with the Cuyuna and Baraboo, are closely alike geologically, producing hematite (with some magnetite) some pre-Cambrian rocks; the Iron Ridge area, however, is a district producing Clinton ore like the red hematite of the Birmingham and other southern Appalachian regions. The essential facts concerning the five principal ranges, to- 196 IRON ORES gether with less important areas in Canada or elsewhere in the Lake Superior district, are embodied in tabular form as follows: LAKE SUPERIOR IRON-ORE RANGES Range Location Opened Production, opening in 1910, in long tons Marquette Michigan 1854 97,861,463 Menominee Gogebic Michigan and Wisconsin .... Michigan and Wisconsin .... 1872 1884 76,390,887 66,533,749 Vermillion Mesabi Minnesota Minnesota Canada 1884 1892 1900 30,708,055 226,937,775 Baraboo Wisconsin Canada 1903 1906 Cuyiina IVIinnesota 1911 The grade of the Lake ores, as well as the shape, size and position of the ore deposits, are largely influenced by local geologic and topographic conditions on the different ranges. Flat-lying rocks, as on the Mesabi, give shallow deposits of soft ore, often workable as open cuts by the steam shovel. Steeply inclined rocks, as on the Michigan ranges, especially where later igneous action has also been a factor, give underground mines in harder ore. The ores now shipped from the Lake region average about 50 to 52 percent metallic iron in their natural or shipping condition. General Geology of the Lake Region. The Lake Superior iron region is, so far as the mining geology of its principal ranges is concerned, a district made up of igneous and metamorphic rocks. All of these are of pre-Cambrian age; and the major subdivisions are as follows, the youngest or newest series being at the top of the column. PRINCIPAL GEOLOGIC DIVISIONS IN LAKE REGION System Algonkian Archaean . Series Keweenawan Huronian. . . . j Laurentian. . , \ Keewatin. . . . Group Upper Keweenawan. Middle Keweenawan. Lower Keweenawan. Upper Huronian or Animikie. Middle Huronian. Lower Huronian. Not subdivided. Not subdivided. THE LAKE SUPERIOR DISTRICT 197 These groups are essentially recognizable throughout the dis- trict, though an apparently un- necessary complexity has been introduced by using different local names for them as developed in the different iron ranges. These local sub-divisions are summar- ized from data by Van Hise and Leith on pages 198 and 199. Of the groups above named, three contain iron-bearing forma- tions. These three, in the order of their productive importance are the Upper Huronian, the Middle Huronian and the Keewatin. Of these the Upper Huronian pro- duces all of the ores of the Mesabi, Gogebic and Cuyuna ranges, and by far the bulk of the ores from the Menominee range. The Mid- dle Huronian produces the bulk of the Marquette ores, all of the Baraboo output, and a small frac- tion of the Menominee ores. The Keewatin produces all of the Ver- million ores, as well as those of the Michipicoten, Atitokan and other Ontario districts. Origin of the Ores. The fol- lowing statement as to the origin of the Lake Superior iron ores is summarized from the detailed re- ports by Van Hise and others, re- ferred to elsewhere. The iron-bearing formations, which now carry the Lake ores, are supposed to have been originally of sedimentary origin, though not exactly of the usual sedi- mentary type. They were made m 198 IRON ORES CORRELATION OF PRE-CAMBRIAN ROCKS I Series and group Marquette district Menominee district Iron River district 02 a Upper oo Not identified but 1 ^ 00 g'i Middle probably repre- sented by part of Granite (?) 1 s intrusives in upper :* Huronian. Lower Greenstone intru- Quinnesec and sives and extru- other schists, green- sives. stone intrusives Michigamme slate. and'extrusives. < Greenstone intru- To the south part- Michigamme sives and extru- Upper Huronian (Animikie group) ly replaced by the volcanic upper- middle Huronian ("Hanbury")slate. sives. Vulcan formation, Michigamme slate, subdivided into the including Vulcan Clarksburg forma- Curry iron-bearing iron-bearing mem- tion. member, Brierjber. Bijiki schist (iron slate member, and bearing) . Traders iron-bear- C a DO Goodrich quartzite. ing member. a o QJ jjp 00 ^ d Huronu Middle Huronian Negaunee forma- tion (chief produc- tive iron-bearing formation). Siamo slate. Ajibik quartzite. Quartzite; in most of district not sepa- rated from upper part of Randville dolomite. Not identified. Unconformity Unconformity Unconformity ? - Saunders forma- tion (interbedded dolomite and Lower Huronian Wewe slate. Kona dolomite. Mesnard quartzite. Randville dolomite. Sturgeon quartzite. quartzite; be- lieved to be the equivalent of the Randville dolo- mite and Stur- geon quartzite). TT f '4- TT f TT f ' + u ncontormity Unconlormity Granites and Laurentian series (intru- sive into Keewatin). Granite, syenite, peridotite. gneisses cut by granite and dia- Palmer gneiss. j base dikes. a 1 Kitchschist and g Mona schist, the latter banded and Keewatin series in a few places con- taining narrow Green schists. Greenstone, green schists, and tuffs. bands of non-pro- ductive iron-bear- ing formation. THE LAKE SUPERIOR DISTRICT OF THE LAKE SUPERIOR REGION 199 Baraboo district Mesabi district Animikie or Loon Lake district Cuyuna district Vermillion district Michipicoten district Absent. Absent. Absent. Absent. Embarrass granite (intru- sive) . Diabase. Duluth gab- bro. Conglomerate, sandstone, marl, and dia- base sills (Lo- gan sills). Basic 'and acidic intru- sive and ex- t r u s i v e rocks (Ke- weenawan?. Duluth gabbro and diabase sills (Logan sills). Acidic and basic intrusive Quartzitc (upper Huron- ian?). rocks. Virginia slate. Biwabik f o r- mation (iron earing and productive). Pokegama Black slate. Iron-bearing formation. v irginia "St. Louis" slate, includ- ing Deer- wood iron- bearing member. Rove slate. Gunflint for- mation (iron bearing, but non- p r o d u c - tive). Absent. quartzite. Granite, intru- sive into lower formations. Freedom dolo- mite, mainly dolomite, in- cluding iron- bearing mem^ ber in its lower horizon. Seeley slate. Baraboo quart- zite. Giants Range granite, intru- sive into rocks below. S e diments (slate, ' gray- wacke, and conglomerate) which are the equivalent of the Knife Lake slate and Ogishke con- glomerate of the Vermillion district. Granite and greenstone, in- trusive into rocks below. Slate, gray- wacke and conglomerate. Granites, gran- ite porphyries, dolerites, lam- prophyres, in- trusive into rocks below. Knife Lake slate. Agawa forma- tion (iron bear- ing, but non- productive). Ogishke con- glomerate. Lower-middle H u r o n i a n ("Upper Hur- onian" of Coleman and Willmott) : Granite and greens tone, intrusive into rocks below. Dore con- glomerate. Absent Granites, rhyo- lites, tuffs, etc. (Laurentian?). Granites and porphyries. Granites and gneisses, in- trusive into Keewatin. Granites and other intru- sive rocks. Granites and gneisses. ("Lower Hu- Soudan forma- ron i a n" of tion (iron Coleman and bearing and Willmott) : Greenstones, Green schists, productive). Eleanor slate. hornblende greenstones, Ely greenstone Helen forma- schists, and and mashed an ellipsoid- tion (iron porphyries. porphyries. ally parted bearing and basic igneous productive). and largely Wawa tuff. volcanic rock. G r o s Cap greenstone. 200 IRON ORES chiefly of beds of iron carbonate and iron silicate, both of which up wbre chemical deposits in marine basins. In their original form, these beds therefore differed from the iron deposits of the present day chiefly in the facts that (a) their iron was present in the ferrous form, while the ores are ferric oxides; (b) silica and carbon dioxide were present in the original beds, while in the exist- ing ores carbon dioxide is absent and silica relatively low. It is obvious that the present ores could be produced from the original carbonates and silicates by simple removal of carbon dioxide and silica, which would result in a relative increase in the iron. The accepted theory as to the manner in which this change was effected may be summarized as follows : After their deposition the original iron-bearing beds were FIG. 26. Cross-section of typical ore deposit in the Marquette district, Michigan (U. S. G. S.). metamorphosed and folded. During and after these changes, percolating waters passing downward from the surface produced changes in the chemical and physical character of the original beds. These changes involved decomposition of the original carbonate and siderite, the alteration of their iron to the ferric form, and the removal of carbon dioxide and silica. All of these, except the last, could be accomplished even by pure water, given sufficient time and freedom of access; but the removal of silica implies that the waters which effected it must have been alkaline in character. As the rocks of the region include both sediments and igneous rocks which could have given the water this character- istic, this offers no obstacle to the theory stated. THE LAKE SUPERIOR DISTRICT 201 On some of the ranges, notably the Marquette and Vermillion, igneous action which took place after the ore deposits had been formed (as above outlined) has effected changes in the character of the ores, producing magnetities as distinct from the hematite which is the normal form in the other ranges. The grade of the ores, and the shape, size and position of the ore deposits are influenced by local conditions on the different ranges. Flat-lying rocks, as on the Mesabi, give shallow de- posits of soft ore, workable by the shovel. Steeply inclined rocks, as on the older ranges, give underground mines, in steeply dipping ore-bodies often of quite irregular form. These facts are well shown in figures 8, 9, 10, 25, 26 and 27, taken Shale bed el FIG. 27. Cross-section of Illinois mine, Baraboo range, Wisconsin. (Weidman.) from various reports by Van Hise, Leith and others, which give cross-sections of typical ore deposits on various ranges. Mining and Concentration of Lake Ores. On almost all of the Lake ranges mining was originally started in open cuts along the outcrop of prominent ore-bodies. On the Mesabi range, where the ore-bodies are flat-lying and relatively shallow, open- cut mining can be carried on economically in many cases, and about two-thirds of the Mesabi output comes from open- cut mines. The ore-bodies on the other ranges dip at steep angles, so that the cover soon becomes too heavy for anything except underground mining. Until recently all of the Lake Superior ores were shipped and 202 IRON ORES used as mined, without any concentration or other treatment; and the greater portion of the output is still marketed in its natural condition. The growing scarcity of high-grade ores, however, has led to attempts to improve grade by treatment, and developments along two distinct lines are now in progress. The sandy ores of the western portion of the Mesabi range are now being washed to raise their iron grade and reduce silica; while some of the Canadian ores are roasted to lower their high sulphur content. Drying has been introduced at a few mines very recently. As the average grade of the district falls, concentration will become more and more a necessity. If there were no competitive ores in sight, it would of course always be possible to ship Lake ores to Pittsburgh furnaces, and the result of lowered grade would simply be an increase in the cost of making pig iron. But as it is, there are abundant supplies of ore in Texas, Cuba and elsewhere which will become available in Pittsburgh as soon as the average Lake grade falls a little lower than its present level. Under these circumstances, it will be necessary, if these eastern markets are still to be held by Lake ores, to keep the shipping grade up to a point which will place them on at least a competitive basis as regards other ores. Composition and Grade of Lake Ores. In attempting to summarize briefly the chief facts concerning the mineral char- acter, composition and grade of Lake Superior ores, the diffi- culty does not arise from lack of data, but from their abundance. Fortunately Van Hise and Leith, in a recent publication, have furnished a series of averages which are of great value in the present connection. Practically all of the ore now shipped from the Lake Superior ranges is hematite, a very small percentage of the total output being magnetite, which comes from certain mines on the Mar- quette range. But it must be noted that the hematite is, to a very large extent, more or less hydrated, and that in places it carries sufficient combined water to be properly called a brown ore. The following data on the average composition of the total shipments of Lake Superior iron ores for the year 1909, with the range in various constituents, are quoted from Monograph LII, U. S. Geological Survey. THE LAKE SUPERIOR DISTRICT 203 The ores as shipped contained moisture ranging from 0.50 percent to 17.40 percent, the average moisture for the total shipments being 11.28 percent. After drying at 212 F., the total shipments gave on analysis the following average and range : Maximum 65 . 34 percent 7.20 40.77 5.67 4.96 Constituent Minimum Metallic iron 35 . 74 percent Manganese . 00 Silica 2.50 Alumina 0.16 Lime . 00 Magnesia . 00 Sulphur 0.003 Phosphorus . 008 Loss on ignition . 00 Average 58.45 percent 0.71 7.67 2.23 0.54 0.55 0.06 0.091 4.12 3.98 1.87 1.28 10.00 In order that the general differences between the ores of the various ranges may be brought out, the averages for 1909 ship- ments, by ranges, are taken from the same publication and assembled in the table following : Marquette Menominee c ED ,0 o 5 ,_ 0> Constituent ! ' t 1 N 1 | o ^ a % o O g f 1 M fl 5> 02 1 Ui s a> Moisture (loss at 212 F.) 12.27* 5.06 11.30 9.52 13.50 8.42 8.34 9.76 6.67 Average analyses of ores dried at 212 F. Metallic iron. . : . Manganese Silica 58.83 0.82 6.80 63.79 0.11 4.90 59.62 0.77 8.16 57.05 n. d. 10.16 58.60 0.71 10.20 54.79 0.80 7.71 54.35 0.30 8.77 54.70 0.08 6.89 52 13 0.19 16.77 Alumina Lime Magnesia 2.23 0.32 0.32 069 2.93 0.23 0.05 1.92 0.37 0.28 034 2.18 n. d. n. d. n. d. 1.05 1.15 0.46 012 2.50 2.63 2.16 0.071 3.07 1.34 1.49 0.056 4.17 1.80 2.86 0.173 1.41 1.31 2.70 0.012 Phosphorus . . . Loss on ignition 0.062 4.72 0.052 0.85 0.060 2.82 0.105 2.31 0.211 .25 0.495 4.11 0.404 5.74 0.319 5.20 0.074 2.52 In both of the preceding tables, the analyses are quoted on a dry basis; but since in each case the moisture lost at or below 212 F. is also given, it is possible to calculate from these data the natural or shipping grade of the ores. Changes in Average Ore Grades. For comparative industrial purposes, however, we have available a still more valuable series of data, prepared by the Secretary of the Lake Superior Iron Ore 204 IRON ORES Association. These statistics, the more general portions of which are summarized in the tables following, cover the average grades of ore from each of the ranges, over a series of years. Taking first the matter of iron content the following results are shown, all iron being stated on a natural basis. AVERAGE IRON GRADE OF LAKE ORES, 1902-1912 Year Mesabi range Old ranges All ranges 1902 56. 07 percent 56.40 56.22 1903 55.19 55.92 55.50 1904 55.45 55.76 55.58 1905 54.24 55.19 54.61 1906 53.44 54.63 53.87 1907 53.11 54.01 53.40 1908 52.66 53.63 52.96 1909 51.49 53.49 52.11 1910 51.42 53.52 52.07 1911 51.18 53.62 51.89 1912 51.20 53.71 51.96 1913 1914 .... 1915 The fairly steady decrease in grade from both the Mesabi and the older ranges, from 1902 until a few years ago, is very notice- able. During the past few years this fall in grade has stopped, momentarily at least. Further facts of interest, relating to the phosphorus content of the Lake ores, are brought out by the following table. CHANGES IN PHOSPHORUS CONTENT, 1902-1912 Year Phosphorus content of B( jssemer ores Percentage, Bessemer, total tonnage Mesabi Old ranges All ranges Mesabi Old ranges All ranges 1902 0.03948 0.04097 . 03995 80.6 47.4 64.9 1903 0.04044 0.04043 0.04043 74.9 49.9 63.7 1904 0.04010 0.04035 0.04018 79.9 47.3 65.1 1905 0.04215 0.04106 0.04183 70.1 46.3 60.9 1906 0.04408 0.04204 0.04354 69.0 44 A 60.2 1907 0.04558 0.04060 0.04437 63.2 42.1 56.4 1908 0.04459 0.04174 . 0.04387 57.2 43.6 53.0 1909 0.04528 0.04226 0.04446 48.0 38.8 45.1 1910 . 04608 0.04132 . 04472 46.3 41.5 44.8 1911 . 04620 0.03881 0.04438 49.3 39.9 46.6 1912 0.04685 0.04000 0.04504 45.3 37.2 41.9 1913 1914 1915 THE LAKE SUPERIOR DISTRICT 205 Along with the decrease in iron content, therefore, the phos- phorus content of the Mesabi Bessemer ores has increased quite noticeably. What is still more striking, however, is the change in steel-making processes indicated by the last three columns of the preceding table, which show the rise in the percentage of non- Bessemer ores brought down each year. Transportation and Markets. The Lake ores now supply all the furnaces in Michigan, Wisconsin, Minnesota, Illinois and Indiana, as well as those in western New York, western Penn- sylvania and northern Ohio. A line drawn from Buffalo through Johnstown to Ironton and then northwest to Chicago will be about the eastern and southern boundary of the strictly Lake market. Outside of this, however, is a zone where Lake ores are sold and used in competition with local or imported ores. In this zone, conditions in the ore and metal markets determine to what extent, in any given year, Lake ores can be used. The extreme limits of shipment in this direction are, it is believed, St. Louis, Lowmoor (Va.), and Bethlehem, Pa.; and these are not to be regarded as normal Lake markets. But, even setting aside all of the competitive zone, the area in which the Lake ores furnish the total supply concludes the bulk of the steel plants of the country, and over 85 percent of our present steel output comes from Lake ores. In order to reach these markets, the ores from the Lake ranges have to face a serious transportation problem. A relatively small portion of the total tonnage travels to its destination by all-rail routes, but by far the greater portion goes by rail to a harbor on Lake Superior or Lake Michigan; and is taken by ore- carrying boats either down Lake Michigan to Chicago or Gary, or through Lake Huron to ports on the lower lakes. For most of the tonnage, even these lower lake ports are not ultimate destina- tions, but a further rail haul is required to place the ore at the furnaces. The total distances involved, rail and water, range from some three hundred miles for ores from the Menominee range to Chicago, up to over one thousand miles for ores from the Vermillion and Mesabi ranges to Pittsburgh or Buffalo. It will be of interest to take up this question on a quantitative basis, so as to get some idea of the relative tonnages which take the different routes, and of the relative costs at which they are handled. In order to clear the ground, we may first of all dis- 206 IRON ORES pose of the all-rail tonnage. This normally amounts to one million tons or less, and is distributed chiefly to furnaces in the Lake Superior states, though occasional shipments are made all- rail to more distant points. The relative importance of this tonnage may be seen by considering that total shipments from the Lake ranges in 1910 amounted to 43,442,397 tons, of which only 813,639 tons traveled all-rail to their destination. The Heavy doited line indicates area within which lake ores are normally the sole source oF supply. \0 \ _ X / ) PENN / ' LUNOIS i,N D ,ANAJ OHI 11 /- sj W. V I R^/ MissouRfvC /;,,- ry z^-^ y FIG. 28. Map of market area for Lake Superior ores. remaining 42,628,758 tons used one of the combined rail and water routes. The first link in the combined routes is in every case a rail haul from the mines to a harbor on Lake Superior or Lake Michigan. The routes available from the different ranges, the harbors usually shipped from, and the present rates from mine to harbor are shown in the following table: THE LAKE SUPERIOR DISTRICT 207 Range Railroad to harbor Vermillion. Duluth and Iron Range. Mesabi. Duluth and Iron Range. Mesabi. Duluth, Missabe and Northern. Mesabi, Great Northern. Gogebic. Wisconsin Central. Gogebic. Chicago & Northwestern. Menominee. Chicago, Milwaukee & St. Paul. Menominee. Chicago & Northwestern. Marquette. Lake Superior & Ishpem- ing. Marquette. Chicago & Northwestern. Marquette. Duluth, South Shore & Atlantic. Harbor Two Harbors, Minn Two Harbors, Minn Duluth, Minn. Superior, Wis. Ashland, Wis. Ashland, Wis. Escanaba, Mich. Escanaba, Mich. Marquette, Mich. Escanaba, Mich. Marquette, Mich. Rate per ton, mine to harbor Average haul, i-niles .. 0.60 70-90 . 0.60 65 0.60 80 0.60 120 0.40 50 0.40 40 0.40 40-60 0.40 45-83 0.25 12-36 0.40 45-70 0.25 12-35 Of the railroads above mentioned as handling ore traffic between the mines and the harbors, three are owned by iron companies, while the others are parts of the Great Northern, Canadian Pacific, St. Paul and Chicago Northwestern systems. The three roads controlled by iron companies are the Lake Superior and Ishpeming, controlled by the Cleveland-Cliffs Company; and the Duluth & Iron Range, and Duluth Missabe & Northern, controlled by the Oliver Iron Mining Company. Owing to the close connection of the Great Northern Railway, in ownership and management, with heavy ore-land holdings, it might also be considered in this class. From the harbors down the Lakes the ore is handled in freighters designed specially for this traffic. Part of the ship- ping employed in this work is owned or controlled by iron com- panies; part is entirely independent. The rates vary from season to season, but the usual range of late years, from various upper lake harbors to ports on the lower lakes has been between sixty and seventy-five cents per ton, the average freight on all ore tonnage handled during the past five years being close to the higher figure named. The following tables, quoted from the Iron Trade Review, give data bearing on the relative amounts of the tonnage handled at various points of shipment and receipt during recent years. Receipts at Chicago and Gary account for practically all of the difference between the two sets of figures. 208 IRON ORES SHIPMENTS OF LAKE SUPERIOR IRON ORE, 1907-1912 Shipping port 1907 1908 1909 1910 1911 1912 Escanaba, Mich.... Marquette, Mich. . Ashland, Wis Two Harbors, Minn Superior, Wis Duluth, Minn. . . . 5,761,988 3,013,826 3,436,867 8,188,906 7,440,386 13,448,736 3,351,502 1,487,487 2,513,670 5,702,237 3,564,030 8,808,168 5,747,801 2,909,451 3,834,207 9,181,132 6,540,505 13,470,503 4,959,726 3,248,516 4,094,374 8,271,177 8,414,799 13,640,166 4,278,445 2,200,380 2,429,290 6,367,537 9,920,490 6,934,269 5,234,655 3,296,761 4,797,101 9,370,969 14,240,714 10,495,577 Total by Lake. . Total by rail 41,290,709 975,9^9 25,427,094 587,893 41,683,599 903,270 42,628,758 813,639 32,130,411 662,719 47,435,777 785,769 Total 42,266,668 26,014,987 42,586,869 43,442,397 32,793,130 48,221,546 IRON-ORE RECEIPTS AT LAKE MICHIGAN PORTS, 1909-1912 Port 1909 1910 1911 1912 Elk Rapids, Mich 46,037 60,857 26,814 47 947 East Jordan, Mich Milwaukee, Wis 18,623 178,720 37,910 121,446 36,232 109,255 42,878 138,065 Gary, Ind 1,921,813 1,775,880 1,302,745 2,088,327 Indiana Harbor, Ind South Chicago, 111 Boyne City, Mich Fruitport, Mich 4,673,818 37,062 53,761 287,172 5,080,679 50,355 37,785 365,312 3,685,100 33,000 514,748 5,480,105 45,000 Total . . 6.929.831 7.452.084 5.558.458 8.357.070 IRON-ORE RECEIPTS AT LAKE ERIE PORTS, 1907-1912 Port 1907 1908 1909 1910 1911 1912 Toledo Sandusky Huron Lorain Cleveland 1,314,140 83,043 680,553 1,374,224 11,088 243,082 2,796,856 6,051,342 1,734,277 8,056,941 7,007,834 1,235,057 5,002,235 159,889 1,225,202 197,951 2,884,738 6,344,943 1,516,434 9,620,638 6,309,548 942,592 4,704,439 296,412 493,345 223,947 2,937,605 4,584,211 666,365 6,359,131 6,931,278 289,400 2,802,976 243,292 1,405,023 540,586 3,771,350 7,914,836 1,810,381 8,158,080 7,839,831 547,067 5,060,642 418,057 971,430 2,621,025 6,495,998 2,437,649 7,521,859 5,875,937 2,294,239 5,580,438 213,377 2,286,388 4,240,816 1,518,961 3,012,064 4,798,631 828,602 2,835,099 112,561 Fairport Ashtabula Conneaut Erie Buffalo Detroit 153,157 Total 35,348,915 20,527,052 33,672,825 34,042,897 25,531,550 37,465,853 Of the ore which reaches ports on Lake Erie, during the seven months which comprise the navigation season of an ordinary year, a certain portion is used, as at Lorain, Cleveland and Buffalo in strictly local furnaces. But the greater portion of the tonnage received is passed on by rail to more distant furnaces at Youngs- THE LAKE SUPERIOR DISTRICT 209 town, Pittsburgh and elsewhere. Heavy stocks of ore are held at the lower lake ports at the close of navigation, and though these are drawn down, of course, during the winter and early spring, the stocks still on hand at the opening of navigation are still very large. On December 1, 1912, for example, the Iron Trade Review reports stocks held at Lower Lake ports as being 9,497,168 tons; while on May 1, 1913, the stocks still on hand then amounted to 5,706,477 tons. History and Statistics. The first discovery of iron ore in the Lake Superior district was made in 1844, on what is now the Marquette range, by a government surveying party. Within a year attempts to smelt the ore locally were under way, while as early as 1850 small test shipments were made to a Pennsylvania furnace. Development was retarded, however, by the lack of transportation facilities. These were improved by the opening, in 1855 of a ship canal at the Sault, and in 1857 of a railroad from the mines to Lake Superior. It is interesting to note that Henry Clay ridiculed the Sault canal project, just as at a later date another Kentucky senator immortalized himself by an asinine speech regarding the future of Duluth. For thirty years the Marquette range furnished all the Lake ore, reaching shipments of about one million tons a year in the decade beginning in 1870. The second of the ranges to be opened was the Menominee, first shipping in 1887; followed by the Gogebic and Vermillion in 1884. The four ranges so far named are often called the Old Ranges, in distinction from the Mesabi, which did not commence shipping until 1892. This last of the impor- tant ranges was, however, the greatest of all; and within four years of its opening had become the leading range in point of annual output, a position it has since retained. Within the past decade two far less important ranges theBara- boo and Cuyuna have been developed to the shipping point. The following table reprinted from the annual official volume on Mineral Resources of the United States for 1912, shows the total production of the Lake Superior district by ranges. The figures prior to 1872 were collected by A. P. Swineford, editor Marquette Mining Journal; those for 1872 to 1877, inclusive, are from the Michigan Mineral Statistics; those from 1878 to 1888, inclusive, were collected by W. J. Stevens; and the later figures were collected by the United States Geological Survey. 14 210 IRON ORES PRODUCTION OF LAKE SUPERIOR IRON ORE, 1854-1912, BY RANGES, IN LONG TONS Year Marquette Menomi- nee Gogebic Vermillion Mesabi Cuyuna Total 1864.\ 3 112 209 3 112 209 1869 J 1870 859 507 859 507 1871 813 984 813 984 1872 948 553 .. 948 553 1 87*} 1 195 234 1 195 234 1 874 899 934 899 934 1 87^ 881 166 881 166 1 87fi 993 311 993 311 1 077 1 014 754 10 375 1 025 129 1878 1 033 082 78 028 1 111 110 1879 1 130 019 245 672 1 375 691 1880 1 384 010 524,735 1 908 745 1 579 834 726 671 2 306 505 1 889 829 394 1 136 018 2 965 412 1 88*^ 305 364 1 047 863 2 353 227 1884 1885 1886 1887 1888 ,559,912 ,430,862 ,627,383 ,851,717 1 918 672 895,634 690,435 880,006 1,199,343 1,191,097 1,022 119,590 756,237 1,285,265 1,433,689 62,122 227,075 307,948 394,910 511,953 2,518,690 2,467,962 3,571,574 4,731,235 5,055,411 1889 2 631 026 1 876 157 2,147,923 864,508 7 519 614 1890 2 863 848 2 274 192 2,914,081 891,910 8 944 031 1891 2 778 482 1 856,124 2,041,754 945,105 7 621 465 1892 1893 2,848,552 2 064 827 2,402,195 1 563,049 3,058,176 1,466,815 1,226,220 815,735 29,245 684,194 9,564,388 6 594 620 1894 1895 1896 1897 1898 1899 1900 1901 1902 1,935,379 1,982,080 2,418,846 2,673,785 2,987,930 3,634,596 3,945,068 3,597,089 3,734,712 1,255,255 1,794,970 1,763,235 1,767,220 2,275,664 3,281,422 3,680,738 3,697,408 4,421,250 1,523,451 2,625,475 2,100,398 2,163,088 2,552,205 2,725,648 3,104,033 3,041,869 3,683,792 ,055,229 ,027,103 ,200,907 ,381,278 ,125,538 ,643,984 ,675,949 1,805,996 2,057,532 1,913,234 2,839,350 3,082,973 4,220,151 4,837,971 6,517,305 8,158,450 9,303,541 13,080,118 7,682,548 10,268,978 10,566,359 12,205,522 13,779,308 17,802,955 20,564,238 21,445,903 26,977 404 1903 1904 3,686,214 2,465,448 4,093,320 2,871,130 3,422,341 2,132,898 1,918,584 1,056,430 13,452,812 11,672,405 26,573,271 20,198,311 1905 1906 1907 3,772,645 4,070,914 4 167 810 4,472,630 4,962,357 4,779,592 3,344,551 3,484,023 3,609,519 1,578,626 1,794,186 1,724,217 20,156,566 23,564,891 27,245,411 33,325,018 37,876,371 41 526 579 1908 1909 1910 1911 1912 3,309,917 4,291,967 4,631,427 3,743,145 3,545,012 2,904,011 4,789,362 4,983,729 4,062,778 4,465,466 3,241,931 3,807,157 4,746,818 3,099,197 3,926,632 927,206 1,097,444 1,390,360 1,336,938 1,457,273 17,725,014 27,877,705 30,576,409 23,126,943 32,604,756 181,224 369,739 28,108,079 41,863,635 46,328,743 35,550,225 46,368,878 Total. 105,149,620 84,919,131 73,559,578 33,502,266 282,669,474 550,963 580,351,032 The following table shows the total quantity of iron ore shipped from the Lake Superior district since 1854, the date of the opening of the Marquette range,' the oldest of the Lake Su- perior ranges. This table gives the shipments as collected by THE LAKE SUPERIOR DISTRICT 211 the Iron Trade Review and is inserted for comparison with the table giving the total production of the Lake Superior district, without regard to shipments : SHIPMENTS OF LAKE SUPERIOR ORES, 1854-1912, IN LONG TONS Year Quantity Year Quantity Year Quantity 1854 3,000 1874. . . 919,557 1894 7,748,932 1855 1,449 1875. . . 891,257 1895. . . 10,429,037 1856 36,343 1876... 992,764 1896... 9,934,828 1857 25,646 1877. . . 1,015,087 1897... 12,469,638 1858 15,876 1878... l,llljllO 1898 . . . 14,024,673 1859 68,832 1879... 1,375,691 1899... 18,251,804 1860 114,401 1880. . . 1,908,745 1900... 19,059,393 1861 49,909 1881 . . . 2,306,505 1901 . . . 20,589,237 1862 124,169 1882 . . . 2,965,412 1902 . . . 27,571,121 1863 203,055 1883. .. 2,353,288 1903... 24,289,878 1864 243,127 1884. 2,518,692 1904. 21,822,839 1865.. 236,208 1885. . . 2,466,372 1905. . . 34,384,116 1866 278,796 1886... 3,568,022 1906... 38,565,762 1867 473,567 1887 4,730,577 1907. 42,266,668 1868 491,449 1888... 5,063,693 1908... 26,014^987 1869 617,444 1889 . . . 7,292,754 1909... 42,586,869 1870 830,940 1890. 9,012,379 1910. 43,442,397 1871 779,607 1891... 7,062,233 1911... 32,793,130 1872 900,901 1892... 9,069,556 1912... 48,221,546 1873 1,162,458 1893. 6,060,492 Total 573,808,218 Ore Production by Ranges. During 1912 the Mesabi range produced over two-thirds of the entire Lake Superior output, a proportion which has been approximately maintained since 1905. The Mesabi output of 1912, it may be noted, accounted for con- siderably over half the total American production. The other ranges may appear small compared to this, but some idea of their importance can be gained if we note that both the Menominee and Gogebic produced more ore in 1912 than the state of Alabama; and that even the Vermillion surpassed New York. Publications on the Lake Superior District. At different times during the past thirty years, various portions of the Lake Superior district have been examined and reported on in more or less de- tail by six official Geological Surveys, maintained respectively by the United States and Canadian governments, and Michigan, 212 IRON ORES Wisconsin, Minnesota and Ontario. In addition, several of the mining companies, notably the Oliver and Cleveland-Cliffs, have maintained geologic surveys. These private organizations, being placed in the field chiefly to secure actual results, have left little published records of their work. The official surveys, how- ever, not being limited as to space or time, have published largely, several hundred reports and papers being listed; and since the various organizations managed to differ on many important points, the literature of Lake Superior geology contains records of some of the most interesting cat-fights known to American science. In the present volume there is, of course, not sufficient space to even catalogue all of these valuable contributions. The following list gives the titles of the various reports issued by the United States Geological Survey, which cover the geology and iron resources of this region : BAYLEY, W. S. The Menominee Iron-bearing District of Michigan. Monograph XLVI, U. S. Geol. Survey. 513 pp. 1904. CLEMENTS, J. M. The Vermillion Iron-bearing District of Minnesota. Monograph XLV, U. S. Geol. Survey. 463 pp. 1903. CLEMENTS, J. M., SMYTH, H. L., BAYLEY, W. S., and VAN HISE, C. R. The Crystal Falls Iron-bearing District of Michigan. Monograph XXXVI, U. S. Geol. Survey. 512 pp. 1899. IRVING, R. D., and VAN HISE, C. R. The Penokee Iron-bearing Series of Michigan and Wisconsin. Monograph XIX, U. S. Geol. Survey. 534 pp. 1892. LEITH, C. K. The Mesabi Iron-bearing District of Minnesota. Monograph XLIII, U. S. Geol. Survey. 316 pp. 1903. VAN HISE, C. R., BAYLEY, W. S., and SMYTH, H. L. The Marquette Iron- bearing District of Michigan, with Atlas. Monograph XXVIII, U. S. Geol Survey 608 pp. 1897. VAN HISE., C. R., and LEITH, C. K. The Geology of the Lake Superior Region. Monograph LII, U. S. Geol. Survey. 641 pp. 1911. The series above noted comprises about thirty-six hundred quarto pages, and furnishes a fair summary of the more important facts relative to the geology of the Lake Superior district. As for the engineering and industrial problems which have arisen and been solved during the development of the Lake dis- trict, numerous reports and articles are to be found in the trans- actions of the Lake Superior Mining Institute and the American Institute of Mining Engineers; and in the files of the Iron Trade THE LAKE SUPERIOR DISTRICT 213 Review and the Iron Age. The following brief list contains the titles of a few publications which have a special value in connec- tion with the industrial history and development of the region. BROOKS, T. B. Iron Regions of the Upper Peninsula of Michigan. Reports Michigan Geological Survey, vol. I, pp. 1-319. 1873. Invaluable data on early history, smelting and mining methods, etc. CROWELL, B., and MURRAY, C. B. The Iron Ores of Lake Superior. 186 pages. 1911. Covers summary of geology, etc., but particularly methods of sampling, analyses, prices, etc. FINLAY, J. R. Report on Appraisal of Mining Properties of Michigan. 65 pages. 1911. Published by Michigan Tax Commissioners. HURD, R. Iron-ore Manual, Lake Superior District. 162 pages. 1911. Covers particularly prices, sampling, analyses, etc. MUSSEY, H. R. Combination in the Mining Industry; a Study of Concen- tration in Lake Superior Iron-ore Production. Vol. 23, Columbia University Studies in Political Science. 167 pages. 1905. THE CLINTON ORES OF SOUTHERN WISCONSIN At the beginning of this chapter it was noted that one district in Wisconsin produced ore different in every way from the Lake ranges proper. This district is located near Mayville and Iron Ridge, in Dodge County, southeastern Wisconsin. The ores here are oolitic hematites, corresponding closely in origin, age, character and grade to the well-known Clinton hema- tites of the Birmingham district of Alabama. The workable beds vary considerably in total thickness from point to point in the Dodge County area, the aggregate ranging from 4 feet up to 20 feet or more. The greater thicknesses reported from some points on the outcrop appear to be due, in part, to the inclusion of loose ore. Leith and Van Hise, in Monograph LIT, U. S. Geological Survey, suggest an average thickness of 10 feet for the entire area. On this basis, they estimate the total ton- nage of ore in the field at six hundred million tons. As to grade and composition, the beds show considerable variation, but the shipping average is kept quite close around 45 percent iron, dry basis. The handbook of the Lake Superior Iron-ore Association gives the following analyses from the two mines of this district, as representative of the average of ship- ments during 1911. 214 IRON ORES ANALYSES OF WISCONSIN CLINTON ORES, 1911 Constituent Metallic iron Mayville mine, natural 41.15 Mayville mine, dry basis 45.97 Iron Ridge mine, dry basis 46.39 Manganese Silica 0.16 4.93 n. d. 5.51 n. d. 5. 34 Alumina 3.89 4.35 n. d. Lime .... 5.46 6.10 n. d. Magnesia 2.66 2.97 n. d. Sulphur Phosphorus 0.037 0.851 0.041 0.951 n. d. 1.624 Loss on ignition Moisture at 212 F. . 9.81 10.48 10.96 0.00 n. d. 0.00 From these analyses it will be seen that the ores, like Clinton ores in general, are characteristically high in phosphorus. CHAPTER XVIII IRON ORES OF THE SOUTHERN UNITED STATES During the past few years both professional and public at- tention has been attracted toward the iron ores of the southern United States, to such a degree that at times the unwonted and unwanted publicity has become embarrassing rather than advantageous to those engaged in mining and smelting these ores. In spite of all the political and legal discussion of various phases of the subject, there still seems to be need of a brief summary of the commercial and geological relations of the southern iron ores; and that will be attempted in the present chapter. The past decade has afforded a large supply of detailed reports on in- dividual properties or on particular districts, and it will be of advantage to use the data now available in such a way as to bring out the more general features of the subject. In doing this the writer has drawn freely from his own notes as well as from published descriptions of the various fields. CERTAIN LIMITATIONS AND ADVANTAGES Before taking up the discussion of individual ore districts, it will be well to make certain general statements regarding south- ern ores, in an attempt to clear up misapprehensions which still exist. The principal points to which attention .should be drawn, in this connection, are as follows: 1. At an early stage in southern iron development, and before the Mesabi ore had begun to supply the northern markets, there was a widespread idea that somewhere in the South it would be possible to develop ores in such tonnages, and under such traffic conditions, as to make them available as an auxiliary supply for Pittsburgh and Ohio furnaces. This theory has cost a good deal of money in the way of exploration, and is still encountered. It will clear up matters if we take it for granted that, with two exceptions, no southern ore fields are likely to be of any use along this line. The two exceptions are (a) the Texas brown ore field, 215 216 IRON ORES which will be discussed later in this chapter; and (b) a Virginia- West Virginia field, which promises a fair tonnage of rather low- grade ore. The Texas shipments are feasible to-day; the other field mentioned is merely a possibility of the future. 2. The second point requiring attention is the phosphorus content of the southern ores. With a few unimportant excep- tions, no ores approaching Bessemer grade occur anywhere in the South. It is true that samples showing low phosphorus can be obtained at many localities; but there is no serious tonnage of such ores available anywhere. This point is mentioned because it is still a cause of useless expense to optimistic investigators. 3. The two points so far mentioned have been warnings against undue optimism; but the northern-trained engineer is usually too conservative with regard to the question of tonnages, so that a warning in the other direction will be timely. In this con- nection we can fairly say that, in dealing with southern red ores, we are dealing with the most continuous and, in general, the most uniform ores known anywhere; and that when this fact is realized we can hazard tonnage estimates on data which would be too scanty to serve as a fair basis in dealing with ores of any other type. With regard to brown ores, the case is different, but even here careful work will usually prevent any serious and expensive error. 4. The final point to be borne in mind is that all of these ores are still cheap, when compared with equally good ores anywhere else in the United States. This allows a great deal of detailed examination to be carried out, before buying or developing a southern ore property, without running up the total cost of the ore, in the ground, to over a few cents per ton. Under these circumstances, there is little excuse for hasty or careless purchases ; and it is generally possible to have a very definite idea as to total tonnage and average grade before much money has been sunk in the transaction. PRINCIPAL SOUTHERN ORE FIELDS It would, of course, be possible to take up the iron-ore resources of the South state by state, and supply descriptions of most of the known deposits, for an immense amount of data is now avail- IRON ORES OF THE SO UTHERN UNITED STA TES 217 able on these subjects. But in doing this, the details introduced would inevitably prevent the reader from obtaining any clear idea of the general situation. In order to avoid confusion, it seems therefore best to describe the ores simply in their larger and more general grouping, and to precede this discussion of the principal ore areas by a few words as to the principal types of the ores themselves. Southern iron ores, as now mined and used, include red and specular hematites, brown ores, and magnetites. The same mineralogical species are present, therefore, as have been long familiar to northern furnacemen. But the proportions of the different types, and their relative importance, are strikingly different in two parts of the country. Hard hematites and magnetites, so common in the Lake, Highland and Adirondack areas are of little present importance in the South, though de- posits of ore of these kinds are known to exist, are now mined, and may become of greater importance. But as things stand now, the chief southern ores are of two types; red or Clinton hematites, and brown ores. The following table has been prepared to show, in compact form, the distribution of the various types of iron ore in the different southern states. In this summary, S denotes that ship- ments have been made in recent years; U, that undeveloped deposits are known to exist; and O, that no ore of this type is DISTRIBUTION OF IRON ORE IN SOUTH State Magnetite Specular Clinton Brown hematite or oolitic ore hematite Alabama.../ U U S S Arkansas U U O U Florida O O O O Georgia U U S S Kentucky O O S S Louisiana O O O U Maryland U U U S Mississippi O O O U Missouri S S O S North Carolina S U O U Oklahoma U U O U South Carolina U O O O Tennessee U O S S Texas ' U U O S Virginia S S S S West Virginia O O U S 218 IRON ORES known to exist in the given state. A further attempt is made to indicate roughly the relative importance of the deposits. When the deposits of any type are of large size or otherwise of high commercial importance, whether now being worked or not, they are indicated by italic letters S or U. The red hematites are by far the most characteristic, as well as the most important, of southern iron ores. They occur as dis- tinct stratified beds in the Clinton formation of Silurian age, and throughout a large portion of the southeastern United States workable ore beds of this type will be found wherever rocks of that formation are exposed. The red ores are known locally as red, fossil or oolitic ores, according to their more prominent characteristics in any given locality. The ore beds extend almost uninterruptedly from Virginia to central Alabama, outcropping along the eastern edge of the Cumberland plateau, and being there- fore almost always within easy reach of workable coal beds. They are developed in greatest thickness in the Birmingham region of northern Alabama; but are commercially workable elsewhere in Alabama, as well as throughout most of northwest Georgia, eastern Tennessee, and at a few points in Virginia. .At and near the surface the action of surface waters has leached out most of the lime carbonate which the red ores originally contained. The ores near the outcrop are therefore usually low in lime, and re- latively rich in iron, ranging often as high as 50 to 60 percent metallic iron. But this is purely a surficial phenomenon, and when the beds are followed underground to a point where leach- ing has not occurred, the ore is found to carry considerable lime carbonate, and to range from 30 to 40 percent in metallic iron. The brown hematites, or brown ores as they are more simply called, are hydrated iron oxides, carrying even when pure from 10 to 15 percent of combined water. A brown ore running 55 percent metallic iron would therefore be usually a much purer material than a hard hematite or magnetite carrying the same iron percentage. The brown ores however occur usually in very irregular deposits, and almost inevitably require concentration to bring them up to their normal commercial grade of 40 to 50 per- cent metallic iron. Much better concentrating work would be easily possible but is not at present justified by the ordinary price of southern pig iron. As to geographic distribution, brown ores are of so wide occurrence that at first sight it may seem impossible IRON ORES OF THE SO UTHERN UNITED STA TES 219 to group the deposits in any comprehensive way. But after longer acquaintance with the subject it will be found that by far the bulk of our present brown- ore output, as well as most of that which will be utilized in the near future, comes from one of three large areas. These important brown-ore districts are respectively : 1. In the Appalachian Valley, and its foothills, extending from the northern line of Virginia to central Alabama. 2. In northwestern Alabama, middle Tennessee and western Kentucky, along the Tennessee River drainage area. 3. In northeastern Texas. In all of these districts brown- ore deposits of large size occur, and the total tonnages available are very large, ranging in the hundreds of millions of tons. The districts differ among them- selves in the character and associations of their ores, and in their present degree of development, and can therefore be discussed separately with more clearness than if we attempted to consider all the southern brown ores at once. Finally, it is necessary to mention the occurrence of deposits of magnetite and specular hematite along the Blue Ridge and re- lated areas in central Virginia, the western portion of the Caro- olinas, and central Georgia and Alabama. Most of these de- posits are badly located so far as fuel and transportation are con- cerned, so that they have not been seriously developed except at a few points. But their concentrating possibilities are such that they offer much hope for the near future. The main types of iron ores used in the south have now been noted, and their general distribution has been outlined. These facts can be used as a convenient basis for further descriptions. In describing the principal southern ore fields, it will therefore be possible to group them as follows: 1. Red or Clinton ores. 2. Brown ores; Appalachian region. 3. Brown ores; Tennessee River region. 4. Brown ores; northeast Texas. 5. Magnetites and allied ores. It is true that this grouping omits some ores which have been of importance in the past, or may become important in the future. But it covers substantially all of the tonnage now used, and the isolated deposits which do not fall in any of the groups named can safely be disregarded in any general discussion of the subject. 220 IRON ORES THE RED OR CLINTON HEMATITES The red or Clinton hematites, which are now to be taken up in slightly more detail, are the backbone of the southern iron and steel industry. They occur in enormous tonnages, reaching well into the thousands of millions of tons; they are usually cheaply mined; they are commonly very uniform in composition and character; and their grade, in view of all industrial condi- tions, is very satisfactory. This last statement does not mean that they ever show high percentages of metallic iron, for they do not, their normal range being from 33 to 40 percent iron. But in most of their developed area, the Clinton red ores carry high percentages of lime carbonate, so that their silica is not as high as the low iron content might seem to indicate. This, as well as a number of more directly commercial factors, must be taken into account when a comparison is drawn between these ores and other ores of a more siliceous type. In an earlier paragraph the geographic distribution of the red ores was briefly outlined, and it will now be profitable to recur to this phase of the matter. Before taking up the question of their distribution in the south, it may be well to note that ores of exactly similar type and age have long been known and worked in New York, Wisconsin and Nova Scotia; while the oolitic ores of the Newfoundland and Lorraine-Luxembourg districts are closely similar in type but different in geologic age. We are dealing, therefore, with a very widespread type of ore, and with one which to-day is the main supply of the Canadian, German, Belgian and French steel industries. Ores of purely sedimentary origin are, in fact, of far more importance, both as regards tonnage and industrial use, than would be suspected on reference to an ordinary text-book on ore-deposits. The bulk of the red oolitic ores with which we are now con- cerned are associated with rocks of Silurian age, and occur as definite beds in the so-called Clinton formation. In the southern United States, Clinton rocks outcrop along the eastern flank of the coal fields, from Maryland to Central Alabama. The ore beds are almost continuous throughout this great extent, though in Virginia there are few points at which they attain workable thickness and grade. Through eastern Tennessee, however, the red ores become of importance, and in Alabama they reach IRON ORES OF THE SOUTHERN UNITED STATES 221 their maximum thickness and, in general, their best grade. Care- less overestimates of their grade have, in the past, led to bitter disappointment and heavy loss, as a mere mention of Big Stone Gap, Middlesboro, Fort Payne and Gadsden will serve to recall; but as against that we may fairly set Birmingham, Ensley, Rock- Outcrop of Outcrop oF Outcrop containing Workable Possibly Workable f if fie or no Iron Ore Iron Ore Workable Iron Ore SCALE OF MILES 5 ip 15 20 85 30 FIG. 29. Map of Birmingham district, Alabama. (Modified from Bur chard. wood and a number of other successful iron manufacturing localities where these ores have been the main source of supply. Birmingham, of course, represents the Clinton ore at its best development. 222 IRON ORES The distribution and industrial relations of the southern red ores can be best understood if we take up separately the three districts into which it is convenient to group them. Birming- ham will be first discussed in some detail, after which the Chatta- nooga-Attalla region and the Tennessee-Virginia area may be treated in more summary fashion. Birmingham District. In the Birmingham district the Clinton formation shows, at almost every point where it is care- fully examined, from three to five distinct beds of red ore. Only Devonian Shale Sandstone [_' r ' [ / 'i me stone gg^ shale and Sandstone I Iron Ore Beds Ordovtc'ian Limestone FIG. 30. Generalized geologic section in Birmingham district. two of these, however, are of sufficient extent, grade and con- tinuity to be seriously considered as factors in the ore situation. The two important beds or seams have been named respectively the Irondale Seam and the Big Seam, Of these the Big Seam is the thickest and most extensive. It lies above the Irondale geologically and topographically, the interval between the two varying from 1 to 10 feet, and being occupied by shale and occasionally sandstone beds. IRON ORES OF THE SOUTHERN UNITED STATES 223 The Big Seam itself varies from 15 to 30 feet in thickness, but of this total only from 7 to 12 feet of ore are good enough to work- at present. Throughout most of the district the lower portion of the Big Seam is too low grade for present use. The Irondale Seam ranges from 4 to 6 feet in thickness in the area where it is worked. Further data on these two seams, as they are developed in the more important portion of the Birmingham district, are quoted from Bulletin 400, United States Geological Survey, in the accompanying table. TABLE. EXTENT OF IRONDALE AND BIG SEAMS, WITH CHEMICAL ANALYSIS OF THE ORES Ore seam and locality Irondale Seam: Length Minable Dip in Average composition of ore at Red (hard ores) outcrop, outcrop, Mountain Fe, SiO2 CaO, feet feet degrees percent percent percent Morrow Gap to Bald Eagle . 11,000 4 .25 15-18 35.14 31 .23 4. 55 Bald Eagle to Red Gap 15,000 4 .5 15-18 33 .67 22 .54 12. 89 Red Gap to Helen-Bess 18,200 4 15-20 35 .81 25 .57 8. 48 Helen-Bess to Hedona 6,800 3 .5 17-22 36 .12 19 .60 14. 90 Big Seam: _' Bald Eagle to Red Gap 15,000 7 15-18 35 ,87 26 .54 10. 92 Red Gap to Helen-Bess 18,200 8 15-20 34 .77 30 91 7_ ?' Helen-Bess to Hedona 6,800 10 17-22 32 01 32 .81 8. I O 51 Hedona to Walker Gap 14,500 10 20-25 35 .40 25 .90 9. ,50 Walker Gap to Graces Gap . 5,000 12 20-25 36 .26 19 .02 13. 50 Graces Gap to Spring Gap . . 11,700 9, 5 18-25 34. 90 14. 86 16. 12 Spring Gap to Woodward 14,200 9 18-32 36 .97 12 .58 16. 98 No. 2 Woodward No. 2 to Readers 15,500 10 .75 20-30 35 .10 10 .64 19. 31 Gap Readers Gap to Potter 10,000 8. 5 18-40 35 .44 11 .20 18. 25 Potter to Sparks Gap 5,200 5 ,5 30-45 33 .28 12 .18 19. 41 All of the red- ore mines in the Birmingham district started originally as open cuts along the outcrop, the product being at first soft, or leached ore, taken out by hand labor. At a few points in the district mines of this simple type are still in operation, but in most instances they have gone much further, and are now completely underground operations, operated by slopes or inclines. In the near future we may expect to find a third type of mine developed, operated by shafts. The ore beds on Red Mountain dip eastward at angles of 15 to 30 degrees. In the average mine the workings consist of a slope driven down the dip in the ore, with entries turned off at intervals from this slope. At several points on the mountain, 224 IRON ORES however, ravines have conveniently cut through the ore and exposed the ore beds for some distance along the sides of the ravines. In such cases, it is possible to replace the underground slope by an inclined track laid in the ravine, while drifts run into the banks at intervals take the place of the entries. In either case the ore is worked out in rooms, and the pillars are finally recovered. The total cost per ton of ore at the mouth of the mine may range from seventy-five cents to ninety cents the difference being largely in the amounts charged off for amor- tization, and the manner in which the mine and its machinery are kept up. Extreme parsimony in these directions makes a good showing for a few years, but is apt to have painful results later. All the ore now shipped from the Red Mountain mines is crushed to a convenient furnace size at the mine tipple, and at Coal Measures, Cahaba Field. Clinton Ore Formation. | 2 | Devonian and Lower Carboniferous. \ 4 [ Silurian and Older Limestone. FIG. 31. Section across Red Mt. to Shades Mt., Birmingham district (Ellis and Jordan.) present no concentration of any kind is practised. The fact is, however, that in addition to the large reserves of commercial ore which are known to exist, there are also several thousand million tons of lower grade ores in the district which may, at some future date, be worth concentrating up to a profitable grade. Publications on Birmingham District. The following list contains titles of the more important publications relative to the ore deposits or iron industry of the Birmingham district. ARMES, E. The Story of Coal and Iron in Alabama. 8vo, 580 pages. Birmingham, 1910. BURCHARD, E. F., and BUTTS, C. Iron Ores, Fuels and Fluxes of the Birmingham district. Bulletin 400, U . S. Geol. Survey, 204 pages. 1910. IRON ORES OF THE SOUTHERN UNITED STATES 225 CRANE, W. R. Iron Mining in the Birmingham District. Eng. and Mining Journal, Feb. 9, 1905. ECKEL, E. C. Origin of the Clinton and Brown Ores of the Birmingham District. Bulletin 400, U. S. Geol. Survey, pp. 28-39, 145-150. 1910. HIGGINS, E. Iron Operations of the Birmingham District. Eng. and Min- ing Journal, Nov. 28, 1908. PHILLIPS, W. B. Iron Making in Alabama. Bulletin Ala. Geol. Survey, 1912. Chattanooga -Attalla Region. For some distance north of the immediate Birmingham district little development has taken place on the red ores. But from the vicinity of Attalla and Gadsden (Alabama) north to Chattanooga a number of mines are now in operation or have been worked recently. These mines have supplied furnaces located at Gadsden, Attalla, Fort Payne, Battelle, Rising Fawn and Chattanooga. Of this list, only the furnaces at the extreme northern and southern points Chattanooga, Attalla and Gadsden seem to require considera- tion as future iron producers. The ores of the Chattanooga-Attalla region occur mainly as a broad flat syncline or basin underlying Lookout Mountain. The mines have been opened on the two exposed outcrops of this basin, along the east and west flanks of Lookout Mountain re- spectively. The total tonnage of the area, if we included all the ore which unquestionably underlies the mountain, would be enormous. On the other hand, the beds are relatively thin, and it is unlikely that the deeper levels will be operated in this district as they must some day be worked at Birmingham. Under these circumstances it will be best to confine tonnage setimates to such portions of the outcrop as show fairly workable ore beds, and to restrict our estimates in depth to some con- ventional level. Even a depth of 1000 feet gives tonnages rang- ing well up in the hundreds of millions. The chief developments of this region have taken place at Attalla, Crudup and Porterville mines, on the west side of Lookout Mountain, and at Gadsden, Bronco and Estalle along the mountain's eastern flank. The Dirtseller and Taylor Ridge mines are located on outlying deposits east of the main mass. The following publications refer to the Clinton ores of northern Alabama and Georgia. BURCHARD, E. F. Tonnage Estimates of Clinton Ore in the Chattanooga District. Bulletin 380, U. S. Geol. Survey, pp. 169-187. 1909. 15 226 IRON ORES 8600' 8530' 8530' 8500' Base from U.S. Post Route maps of Alabama and Georgia IS 20 MILES Coal areas from Mineral Resource* i , , 3 U.S. 1910. yon-ore outcrops mapped by E.F.BurcharcJ LEGEND Iron- ore outcrop Iron-ore outcrop Iroitore outcrop Blast furnace Colse oven VyV>_V^ > XX^ JJ. lALL" U C \r\J.l\*A-\Jr JJLUJLL-VJ.G VlCt. IA- J. \J^J *j_ w**. x-*--w v. Coalfields (Generally more than' (Generally less than. (Thicknessnot , 2 feet thick.) 2 feet thick) determined) FIG. 32. Map showing relation of outcrops of red iron ore to coal fields, transportation routes, and industrial centers in northeast Alabama and northwest Georgia. (Burchard.) } wf I i BfttBB^ .. . 8530 8S C 8530' Base from U.S.Post Route .map of Tennessee IO 5 O 10 FIG. 33. Map showng relation of red iron ores to coal fields, trar LEGEND Iron-ore outcrop (Thickness not determined) EH Blast furnace Coke oven 3O MILES Coal areas from geologic folios of U.S. ' Geological Survey-, iron-ore outcrops mapped by E.F.Burchard tion routes, and industrial centers in east Tennessee. (Bur chard.) (Facing page 226) , {,\v^\\. KtJtTTi^ ., - - IRON ORES OF THE SOUTHERN UNITED STATES 227 ECKEL, E. C. The Clinton or Red Ores of Northern Alabama. Bulletin 285, U. S. Geol. Survey, pp. 172-179. 1906. ECKEL, E. C. The Clinton or Red Ores of Georgia. Iron Trade Review, January 7, 1909. HIGGINS, E. Iron Operations in the Chattanooga District. Eng. and Mining Journal, January 2, 1909. MCCALLIE, S. W. Report on the Fossil Iron Ores of Georgia. Bulletin 17, Georgia Geol. Survey. 1908. Tennessee- Virginia Region. The main belt of Clinton ore outcrop extends northeastwardly across Tennessee from Chatta- nooga to Cumberland Gap, where it enters Virginia. This is a distance of 170 miles, measured directly. The ore seams are, however, not absolutely continuous for the entire distance, being absent or at least unknown in certain por- tions of the belt. Furthermore, the ore beds which are known and located are, for considerable fractions of their extent, un- workable because of extreme thinness. On the other hand, for much of the distance from Virginia to the southern border of Tennessee, there are folds in the strata which result in duplication of the ore outcrop. Allowing for all of these factors, we find that the total length of Clinton ore outcrops in Tennessee is in the neighborhood of 300 miles. Of this total, about 115 miles is reported as containing an ore bed over 2 feet in thickness. From these figures it is obvious that there is an enormous total tonnage of red ore in East Tennessee; but they also suggest that it would be hazardous to indulge in very extravagant hopes as to the percentage of this total which can be considered workable in the near future. At various points where the red ore is actually worked for furnace use, thicknesses are reported as follows: Rockwood, 2J to 4 feet; Crescent, 5 to 6 feet; Chamberlain, 5 to 7 feet; LaFollette, 3f to 5 feet. The ore varies, of course, in grade through the usual range of Clinton ores. Regarding this point Burchard states that the usual range of the hard ores used now at Tennessee furnaces is between the following limits: iron, 25 to 45 percent; lime, 8 to 20 percent; silica 4 to 15 percent; alumina, 4 to 10 percent; phos- phorus, 0.25 to 0.75 percent; and sulphur, from a trace up to 1 percent. Nine stacks use the Tennessee red ores as their principal ore supply, though commonly some brown ore is used in the charge. 228 IRON ORES The furnaces in question are Chattanooga, Citico, South Pitts- burgh (2), Dayton (2), Rockwood (2) and LaFollette. In Virginia the Clinton red ores occur in workable thickness at only a few points, and mining development has taken place on a very small scale. Beds near Cumberland Gap were once worked for the furnaces at Middlesborough, Kentucky, but have been idle for many years. More recently a red ore mine was operated by the Lowmoor Iron Company some miles south of Lowmoor station, on the Chesapeake & Ohio Railroad. The following reports and papers refer to the Clinton ores of Virginia and Tennessee. BURCHAED, E. F. Tonnage Estimates of Clinton Ores in the Chattanooga District. Bulletin 380, U. S. Geol. Survey, pp. 169-187. 1909. BURCHARD, E. F. The Red Iron Ores of East Tennessee. Bulletin 16, Tennessee Geol. Survey, p. 173. 1913. ECKEL, E. C. The Oriskany and Clinton Ores of Virginia. Bulletin 285, U. S. Geol. Survey, pp. 183-189 1906. MOORE, P. N. Report on Iron Ores in the Vicinity of Cumberland Gap. Reports Kentucky Geol. Survey, vol. 4, pp. 241-254. 1878. BROWN ORES OF THE APPALACHIAN VALLEY The red ores which have just been discussed are sedimentary ores, occurring as definite beds inter-stratified with other rocks; and their place in the geologic system is therefore fixed very closely. The brown ores, which are now to be considered, are very different in origin and associations. They occur as scattered deposits, overlying rocks of different geologic ages, and the brown- ore deposits are of much later age than the rocks which they now overlie. They have originated, in most cases, through deposition from iron-charged waters, the deposition taking place near the ground surface, and being particularly apt to occur where beds of limestone offered a resting place for the iron minerals. The principal brown-ore deposits of the South occur in the Appalachian Valley, or in its foothills. This limestone valley is almost continuous from Canada to Alabama, and throughout its entire extent it presents almost ideal opportunities for the for- mation of brown-ore deposits. Flanked on the east by iron- bearing crystalline rocks, which form the Highlands of New York and New Jersey, the South Mountain and Blue Ridge of Pennsylvania and Virginia, and similar ranges further south, IRON ORES OF THE SOUTHERN UNITED STATES 229 230 Romney shale . . IRON ORES 'Monterey" (Oriskany) sandstone Lewisto wn limestone Clinton (Kockwood) formation rciinci Tus*carora..V Jiiniata / nut ten . . \Bays.. fSevier ..1 Martinsburg.JTellico..V (Athens. Liberty Hall limestone. .] fCbickamauga , Murat limestone j {Knox ) Nolichucky} Honaker ..J Buena Vista" shale (Watauga) ., Sherwood limestone (Shady). . Lower Cambrian quartzlte Lower Cambrian quartzite and shale 2000 I Oriskany brown ore. Clinton fossil hematite. I .) 17 1 I. I ,r Limestone magnetite. II II I . I , I , I . I . I 1.1 II I I I I I 11.11 I.I.I . I I . I . 1.1.1,1 i i ' . r lilt i.'i.i. I. I . I . I . I i i i i i i i . , ' i i. I ! I ill I II I.I.I I I > I I 1 I 1 Valley brown ore (Blue Ridge district) 11)111 I 1 Valley brown ore (New River district). Mountain brown ore. Siliceous specular hematite. 2000 Feet FIG. 35. Geologic section of Appalachian Valley rocks in Virginia. (Harder.) IRON ORES OF THE SOUTHERN UNITED STATES 231 the progress of rock decay has for ages furnished a supply of iron- charged surface waters. The rocks of the valley itself, consisting chiefly of limestone with interbedded shales and sandstones, all containing iron in small but persistent amounts, are more im- mediate sources of supply. The iron-bearing waters have found excellent locations for the deposition of their iron in the valley and its foothills, whose rocks vary in composition, solubility and hardness, and dip at varying angles. The topographic features which result from these conditions have influenced the location and the type of brown-ore deposits which occur in various portions of the valley. The net result of these geologic conditions is that now, reaching all the way from Vermont to central Alabama, we find more or |Vp>j De von ian Shale. [h IT] Monterey (Oriskany) Sandstone. L e w!s to wn (Helderberg) L imes tone. &'<& Brown Ore Replacing Limestone. \ I Underlying Shales, Sandstones, Etc. FIG. 36. Cross-section of typical ore deposits in Oriskany district, Virginia. less extensive deposits of brown ore scattered along the Appalach- ian Valley Region. Occasionally workable deposits are found well out in the valley itself, but usually they occur along its flanking hills. Throughout most of the range, the heaviest deposits are along the eastern side of the valley; but the well-known Oriskany ores of Virginia, long worked at Longdale, Lowmoor and other mines, are on its western side, and the Woodstock and Champion dis- tricts of Alabama are also west of the main limestone valley. In Tennessee, northern Alabama, northeast Georgia and south- 232 IRON ORES western Virginia, however, the brown-ore mines which have be- come serious shippers are principally located close to the eastern side of the valley, and in some cases the deposits lie well up on the ridges flanking the eastern edge. In practically all cases, except in the Virginia Oriskany dis- trict, the brown ore occurs associated with limestones, shales and quartzites of Cambrian or lower Silurian age, or with the clays and other residual material derived from the decay of these rocks. The ores do not form continuous beds, but are in irregular de- posits. These deposits are apt to be richest at or near the sur- FIG. 37. Brown ore body, Vesuvius, Va. (Harder.) face, and to disappear entirely when they are followed deep enough to strike solid rock. Their irregularities of form and richness are very pronounced; but usually a careful study of local geologic features will enable both prospecting and working to be carried on with reasonable economy and certainty. In places, where the ores were originally concentrated along particular beds of rock, the existing deposits still show some approach to alternations of rich and barren layers; in other instances, as for example that IRON ORES OF THE SOUTHERN UNITED STATES 233 shown in Fig. 17, there is little approach to system in the dis- tribution of the ore throughout the clay. This last note brings us to another feature of brown-ore mining. The ore itself, at its theoretical maximum of purity, could con- ceivably carry from 60 to 66 percent metallic iron, according to the particular iron mineral which happened to form the bulk of the ore. But as a matter of fact even the most careful hand min- ing, in the richest deposits, rarely gives ore grading over 55 per- cent metallic iron; and by far the bulk of our southern brown ores, after washing and jigging, will not yield over 50 percent iron. In many districts even this grade can not be attained in a com- mercial way, and one important district does not give much over 42 percent iron for steady shipments. In producing a ton of 50 percent ore, it may be necessary to mine from 2 to 15 tons of crude ore dirt, according to the district. The bulk of the Appalachian output probably comes from ores which concentrate at ratios of between 3:1 and 5:1, however. A large portion of this tonnage is produced by simple washing, without jigging; and even a casual study of the Appa- lachian ores will serve to show that this leaves large margin for improvement. As the Appalachian brown-ore deposits still con- tain, so far as can be estimated, several hundreds of millions of tons of good ore, there is obviously reason to pay more attention to questions of more careful methods of mining and concentration. Commercially, it can be said that the Appalachian brown ores furnish the entire supply for all of the Virginia furnaces ; for sev- eral in east Tennessee ; and for a small group in northern Alabama and northwest Georgia; and that they furnish a part of the sup- ply for the furnaces of the Birmingham district. The following publications refer to the brown ores of the Appalachian Valley region, from Maryland to Alabama. BURCHARD, E. F., and ECKEL, E. C. Iron Ores of the Birmingham District. Bulletin 400, U. S. Geol. Survey. 1909. ECKEL, E. C. The Oriskany Ores of Virginia. Bulletin 285, U. S. Geol. Survey, pp. 183-189. 1906. HARDER, E. C. Iron Ores of the Appalachian Region in Virginia. Bulletin 380, U. S. Geol. Survey, pp. 215-254. 1909. HAYES, C. W., and ECKEL, E. C. Iron Ores of the Cartersville District, Georgia. Bulletin 213, U. S. Geol. Survey, pp. 233-242. 1903. HIGGINS, E. Iron Operations in Northeastern Alabama. Eng. and Mining Journal, Dec. 5, 1908. 234 IRON ORES HOLDEN, R. J. Iron Ores of Virginia. In Mineral Resources of Virginia, 1907. HOLDEN, R. J. Brown Ores of the New River-Cripple Creek District, Virginia. Bulletin 285, U. S. Geol. Survey, pp. 190-193. 1906. JARVES, R. P. The Valley and Mountain Iron Ores of East Tennessee. Resources of Tennessee, vol. 2, No. 9, September, 1912, pp. 326-360. JOHNSON, J. E., JR. Origin of the Oriskany Limonites. Eng. and Mining Journal, vol. 76, pp. 231-232. 1903. MCCALLIE, S. W. The Brown Ores of Georgia. Bulletin 10, Georgia Geol. Survey, 190 pages. 1900. MOXHAM, E. C. The Great Gossan Lead of Virginia. Trans. Amer. Inst. Mining Engrs., vol. 21, pp. 133-138. 1892. PORTER, J. J. The Virginia Iron Industry. Manufacturer's Record, vol. 51, pp. 717-719, 749-752, 788-790. 1907. SINGEWALD, J. T. Report -on the Iron Ores of Maryland. Reports Md. Geol. Survey, vol. 9, part 3, pp. 123-337. 1911. BROWN ORES OF THE TENNESSEE DRAINAGE AREA Second to the Appalachian region so far- as present develop- ments are concerned, but probably far outranking it in unworked reserve tonnages, is the region lying in northwestern Alabama, middle Tennessee and western Kentucky, along the Tennessee River drainage, and in the areas drained by its main tributaries. This great iron region has certain interesting historical associa- tions, for the first furnace in Alabama was built to utilize these ores; and, at the other end of the district, lies the scene of the first serious attempt at promotion by Thomas Lawson the Three Rivers project. Scattered all over the intervening territory are the ruins of old charcoal furnaces and forges, while six or eight furnaces are still in blast on these ores in Alabama and Tennessee. This brown-ore region lies entirely to the west of the coal fields of Alabama and Tennessee, and the ores differ in geologic associa- tions from those of the Appalachian Valley. They are asso- ciated with limestones, it is true, but in the Tennessee area these limestones are of Lower Carboniferous age, in place of the Cambrian and Silurian limestones which are associated with the Appalachian Valley ores. Another point of difference, the result of differing geologic history of the two regions, is with regard to the attitude of the rocks and the ore deposits. In the Appalachian region the rocks have been greatly folded and tilted, so that both ores and associated rocks rarely lie in even approximately horizontal attitudes. In the Tennessee drainage IRON ORES OF THE SOUTHERN UNITED STATES 235 area, on the other hand, the folding and tilting have been very slight; the rocks dip at very low angles; and the brown- ore de- posits mantle over them in comparatively regular form. Regular for brown ores, that is to say; for they are still highly pockety and irregular as compared with red ores or any other well-known type. The area included in the Tennessee drainage which may fairly be expected to be productive of more or less brown ore through- out its extent is very large. From its southernmost point below Russellville, Alabama to its northern limit in Kentucky, the distance is almost two hundred miles. Its width, from east to west, varies from five to twenty miles or more. There is thus an extreme area of perhaps two thousand square miles, over which brown-ore deposits are scattered more or less thickly. Of this total area, close geologic study will probably rule out nine-tenths, as not being likely to contain any large deposits, but this leaves several hundred square miles of very promising territory within which deposits of serious size are likely to occur, and within which a very large tonnage of workable ore has already been developed. As to grade, the ores of the Tennessee Basin seem to fall some- where near the average of the Appalachian region ores. They never, for example, are as poor as the brown ores of the Virginia Oriskany district; while on the other hand they do not on the average grade as high as some of the best Virginia and Alabama Appalachian ores. The concentrating ratio is also about average. Few deposits in the Tennessee Basin will concentrate at a 5 :3 ratio, which is occasionally found further east; but on the other hand none of these Tennessee Basin ores require a 10 : 1 or worse concentration, which occasionally is necessary in southwest Virginia. Taking all of these factors into consideration I should say that the Tennessee Basin now contains a far larger tonnage of brown ore which can be profitably mined and con- centrated to a 48 to 50 percent grade than do all of the Appalachian Valley deposits together. The following publications relate to the brown ores of this district. BURCHARD, E. F. The Brown Iron Ores of the Russellville District Bulletin 315, U. S. Geol. Survey, pp. 152-160. 1907. CALDWELL, W. B. Report on the Limonite Ores of Trigg, Lyon and 236 IRON ORES Caldwell Counties (Kentucky). Reports Ky. Geol. Survey, vol. 5, new series, pp. 251-264. 1880 . CHAUVENET, W. M. Notes on the Samples of Iron Ore Collected in Ken- tucky. Vol. 15, Reports Tenth Census, pp. 289-300. 1886. CHAUVENET, W. M. Notes on the Samples of Iron Ore Collected in Ten- essee. Vol. 15, Reports Tenth Census, pp. 351-365. 1886. ECKEL, E. C. Origin of the Russellville Ores. Bulletin 400, U. S. Geol. Survey, pp. 149-150. 1910. HAUSMANN, F. W. Brown Ore Mining in the Russellville District. Stevens' Institute Indicator, January, 1908. BROWN ORES OF NORTHEASTERN TEXAS The brown-ore field of northeastern Texas covers a very exten- sive area, deposits being known to occur in at least the following twenty counties: Camp, Cass, Marion, Morris, Upshur, Wood, Harrison, Van Zandt, Gregg, Panola, Smith, Rusk, Cherokee, Henderson, Anderson, Houston, Nacogdoches, Shelby, Sabine and San Augustine. Within this field Kennedy has mapped iron-ore districts aggregating over 1000 square miles in area. There is no question whatever as to the areal extent or large total tonnage of the ore cocuring in this field, and estimates of total reserves rang- ing 500 million up to 1,000 million tons may be accepted as well within the truth. The possibility of commercial utilization de- pends upon factors other than total tonnage. The ores occur in approximately horizontal beds, associated with clays, sands and greensands of Tertiary age. The ore-bodies are conformable to the associated beds and often are enclosed in them, but this is not necessarily proof that the ores originated at the same time as the associated sediments. On the contrary, the probability seems to be that the ores, as now found, were formed at a somewhat later period than the associated sands and clays, though these formations probably contributed some or all of the iron needed for the ores. To the miner the question of origin has, in this case, but one practical bearing, in other words, on the probability of finding in depth richer or larger deposits than those now exposed at the surface or in shallow diggings. This point fortunately is not involved in any theoretical differ- ences of opinion as to the origin of the Texas brown ores. Under any probable hypothesis it may as well be understood clearly that (1) As to size of deposit, there is no probability that thicker beds will occur at deeper levels, and IRON ORES OF THE SOUTHERN UNITED STATES 237 FIG. 38. Map of Texas brown-ore district. (Kennedy.) 238 IRON ORES (2) As to richness of ores, the chances are that the richest ores will be found at or near the surface. Ore Formation. The ore occurs in the form of relatively large nodules, or in platey layers, and in either case can be readily and thoroughly cleaned from the accompanying sand. The ore frag- ments themselves, however, contain fine sand grains, so that the silica content of the clean ore is usually higher than might be expected. An extensive series of analyses made on samples collected by Kennedy gave the following average result: Metallic iron, 46.63 percent; silica, 14.47 percent; alumina, 8.17 percent; sulphur, 0.083 percent, and phosphorus, 0.172 percent. This average covers the results of 131 samples, taken in every part of the Texas brown-ore area. Of course individual samples give much higher results. There are also authentic furnace rec- ords showing long runs on ore averaging 55 to 57 percent iron, but these were, in the cases examined, on ore which had been dried previous to charging. It seems probable that by care in handling, shipments could be made for large tonnages averaging about 50 percent iron, but much more should not be expected. [rg^l SurFace Sands |MJ%iJ r ? Bed E^J Underlying Clays, Etc. FIG. 39. Section of typical brown-ore deposit in Texas district. Ore Near Surface. The ores are found on the tops of plateaus, separated by sharp little ravines. Along the sides of the ravines ore fragments often give an erroneous idea of great average thickness, but the deposits, when in place, range from 1 foot to 8 feet or 10 feet thick, and the average over the entire field will probably fall between 2 and 3 feet. In places the ore is at the surface, in others it is covered by a few inches to 5 or 6 feet of sand. Generally, the ores are of good grade and are present in large total quantity, but thin beds. They can be mined cheaply and easily at any given point; and the whole problem is one of assem- IRON ORES OF THE SOUTHERN UNITED STATES 239 bling a tonnage from a series of scattered operations. Transpor- tation to the coast is now available at a fair rate, and the ores could be laid down in Baltimore or other Atlantic Coast points at prices to compete with Cuban ores. It must be borne in mind that, in this discussion of the Texas brown-ore situation, I have had in mind the whole field, and not any individual property. In an area of this size it is probable enough that, at some points, the ore-bodies show greater thicknesses than I have noted; and it is entirely possible that large tonnages may be mined and washed to show a higher grade than has been assumed in the preceding discussion. But these are matters of purely in- dividual interest, and can have no bearing on the value of the field, taken as a whole. The following list comprises the principal publications dealing with the brown ores of northeastern Texas. Kennedy's main re- port of 1891 is, of course, by far the most important and detailed. ECKEL, E. C. The Iron Ores of Northeastern Texas. Bulletin 260, U. S. Geol. Survey, pp. 348-354. 1905. ECKEL, E. C. The Iron Industry of Texas, Present and Prospective. Iron Age, vol. 76, pp. 478-479. Aug. 24, 1905. JOHNSON, L. C. Report on the Iron Regions of Northern Louisiana and Eastern Texas. House Document No. 195, 1st session, 50th Congress. 1888. KENNEDY, W. Reports on the Iron-ore District of Eastern Texas. In 2nd. Ann. Report Texas Geol. Survey, pp. 7-326. 1891. KENNEDY, W. Iron Ores of East Texas. Trans. Amer. Inst. Mining Engrs.-, vol. 24, pp. 258-288, 862-863. 1895. PENROSE, R. A. F. The Tertiary Iron Ores of Arkansas and Texas. Bulle- tin Geological Society America, vol. 3, pp. 44-50. 1892. MAGNETIC AND OTHER ORES OF THE CRYSTALLINE AREA The four ore districts which have so far been considered carry ores differing in grade, origin and associations; but each of the districts is fairly uniform, within itself, in these regards. This is not the case with the group of ores which remain to be briefly mentioned, for they differ among themselves very widely in all of these re- spects. Their only point of agreement is in the area which in- cludes them, and in the general type of rocks with which they are associated. By reference to any general geological map, it will be seen that the Appalachian Valley is bordered on the east by 240 IRON ORES a wide area of crystalline rocks. These rocks, some of which are igneous and others of metamorphic origin, include slates, schists, gneisses, granites, etc. Scattered along this area we find at intervals deposits of iron ore of three general types. There are (1) magnetite deposits, often of great size and purity; (2) specular hematites, varying in grade and character, and (3) brown ores, occurring as gossan capping pyrite deposits. Some of the ores of the crystalline area have been long worked and are well known geologically and industrially. Among these may be noted the magnetites of Cranberry, N. C.; the magnetites and hematites of Pittsville and Rocky Mount, Va. ; and the brown gossan ores from Ducktown, Tenn. But in addition to these known and developed deposits, there are a large number of prom- ising areas which are held back chiefly by lack of transportation facilities. During the past decade three new railroads have crossed the crystal line area at widely separated points the Virginian, the Clinchfield, and the Atlanta, Birmingham and Atlantic. Each of these has opened up new iron territory, and this process of development by means of new transportation lines may fairly be expected to continue until the ores of the crys- talline area become better represented among the shipments of the year. The following papers and reports refer to the magnetites and specular hematites of this portion of the southern states. ECKEL, E. C Gray Hematites of Eastern Alabama. Iron Trade Review, Aug. 6, 1908. GRASTY, J. S. The Gray Ores of Alabama Manufacturer's Record, vol. 50, pp. 550-553. 1906. HOLDEN, R. J. Iron Ores of Virginia. In Mineral Resources of Virginia, 1907. NITZE, H. B. C. Iron Ores of North Carolina. Bulletin 1, N. C. Geol. Survey, 239 pages. 1893. SINGEWALD, J. T. Report on the Iron Ores of Maryland. Vol. 9, part 3, Reports Maryland Geol. Survey, pp. 123-337. 1911 SOUTHERN IRON-ORE REQUIREMENTS In the preceding sections of this chapter the iron ores and chief ore districts of the southern United States have been described, and some idea given as to the large ore tonnages which are avail- able in some of these districts. It will be of interest to take up the question of southern ore requirements, both as these have IRON ORES OF THE SOUTHERN UNITED STATES 241 been in the past, and as they are likely to stand in future. In doing this, our conclusions may be based upon the growth which the southern iron and steel industry has shown, the condi- tions which have limited that growth, and the conditions which favor it. Growth of Southern Iron Industry. Statistics relative to the iron production of the United States, during the period from the Revolution until after the close of the Civil War, are scanty and difficult to handle. The chief difficulty arises from the fact that in most of the earlier statements as to production there is confusion between pig iron, bar iron made direct from ore, and iron wrought from the pig. In the South, where both forges and bloomaries were in operation until very recent years, the oppor- tunities for error are particularly great. So far as can be determined, the southern states made almost exactly one-fifth of the total iron produced in 1810; and this proportion increased quite steadily, reaching its maximum prob- ably between 1840 and 1850. From this date on the southern share of the total dropped rapidly, for the Michigan ranges were now beginning to ship heavily to northern and eastern furnaces. The data available for the two decades preceding the war and for the decade following it are as follows: Date U. S. output, Southern Southern per- tons output, tons centage of tota 1840 286,903 * 125.9 1850 563,775 131,541 23.4 1854 724,000 130,198 17.9 1856 812,000 124,752 15.3 1860 987,559 * 12.8 1870 1,832,875 * 8.6 The history of the Southern iron and steel industry during the war has never been written, though scattered details concerning its development in individual states can be found in different volumes, and Miss Armes has given us an adequate and interest- ing discussion of Jts status in Alabama. Here it need only be said that war was a harsh and pressing schoolmaster, and that the wonder is that southern legislators have so soon forgotten the lessons then impressed. As early as the fall of 1861 it was * Calculated iron ore consumption or value of product. 16 242 IRON ORES understood that man cannot live by cotton alone; and that in modern war courage and devotion must be reinforced by material supplies if a long struggle is to be successfully prosecuted. Under the encouraging influence of the coast blockade, which was as successful as a high tariff in preventing imports, the indust- ries of the South, heretofore neglected in favor of agriculture, grew at a really remarkable rate. Had these favoring conditions persisted, it Ks certain that the South would now be a great manu- facturing nation, and that many idle economic theories would be looked upon as outgrown. But the development thus started was not to continue at that time. The battles of 1862 resulted in the practical isolation of the southwestern states, and in the destruction of the west Tennessee iron industry. The furnaces and mills of southwestern Virginia and northwest Georgia kept in operation, with few exceptions, until the summer of 1864; while Brierfield and other Alabama furnace and the Selma works held on until the closing days, in the spring of 1865. As to the output, few definite data are available. In 1860 the southern states were making some- what over 120,000 tons of pig iron annually. It is probable that during 1861 and 1862 this was greatly exceeded, but from that time on the output fell off as furnaces and mills were destroyed. I have assumed that in 1865 the south was not making over 5 percent of the American total, even allowing for the fact that the Maryland, Kentucky and Missouri furnaces had mostly escaped interference throughout the war. The recovery after peace came was not so sudden as has been intimated by popular essayists. We know that the ghastly farce called Reconstruction did not, in fact, look toward the physical reconstruction of the ruined commonwealths; and so far as indi- vidual effort was concerned food supplies, and readily salable cotton, were more important than manufactures. In 1870, at any rate, the South had recovered only so far as to produce a little over 8 percent of the American total iron output. But in the decade which followed, progress was much more rapid, so that by 1875 the southern proportion had risen to over 12 per- cent, which was about held in 1880. From this time on, there has been an almost uninterrupted growth in the annual output of Southern pig iron up to the pres- ent day, the temporary decreases shown during bad business IRON ORES OF THE SOUTHERN UNITED STATES 243 years being unimportant. The proportion which this Southern output bears to the American total, however, has shown greater variations. From 1880 on, this proportion increased quite regularly, reaching in 1893 its maximum of 22J percent. After that date the ratio decreased, and during the past eight years it has ranged between 12 and 15 percent of the total output of the United States. PIG-IRON OUTPUT 1880-1910 Year 1880 1885 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 Total U.S. 3,835,191 4,044,526 9,202,703 8,279,870 9,157,000 7,124,502 6,657,388 9,446308 8,623,127 9,652,680 11,773,934 13,620,703 13,789,242 15,878,354 17,821,307 18,009,252 16,497,033 22,992,380 25,307,191 25,781,361 15,936,018 25,795,471 27,303,567 South 448,978 682,359 1,833,937 1,738,194 1,947,187 1,599,659 1,274,947 1729,606 1,846,999 1,937,229 2,133,514 2 398,881 2,642,720 2,626,387 3,085,957 3,287,522 2,775,215 3,279,370 3,525,119 3,493,772 2,369,741 3188,091 3,447,291 Ratio, Southern to total percent 11.7 16.9 19.9 21.0 21.3 22.5 19.2 18.3 21 .4 20.1 18.1 17.6 19.1 16.6 17.3 18.3 16.8 14.3 13.9 13.7 14.9 12.4 12.6 The actual tonnage annually produced in the south has in- creased, since 1880, from less than half a million tons to consider- ably over three million tons. The northern output, however, has increased at practically a similar rate, so that in 1912 the South shows little or no proportionate advance from its relative position in 1880; and a distance falling off from the position which it assumed during the early nineties. It is clear enough that the relative decrease shown during the years from 1893 to 1905 was 244 IRON ORES due in most part to the opening of the Mesabi range in Minnesota, which since 1892 has been sending down a steadily increasing tonnage of ore to eastern furnaces. For the past eight years, as has been previously noted, the South has just about maintained its relative position. It will be serviceable if we can determine, from some study of the raw materials and markets available, what the probabilities are as to the future growth, both relative and actual, of the Southern iron and steel industries. The matter of iron-ore supply has already been discussed, but some space may be given to consideration of Southern coal reserves. Southern Coal Reserves. So far as supplies of coal are con- cerned, the South has little reason to avoid comparison with any of the states east of the Great Plains; and when we discuss the prospects of American steel development we may, for all practical purposes, disregard the states west of the Missouri River. In the present paper, therefore, the comparisons made will refer only to the area east of the 100th meridian. The latest figures on coal reserves which are available at the date of writing, are the summaries by E. W. Parker published in the annual volume Mineral Resources of the United States for 1911. In his report on Coal for that year Mr. Parker furnishes data on the unmined coal tonnages still remaining in the various states. These figures I have rearranged so as to better serve the purposes of the present discussion. At the close of 1911, the Geological Survey estimates that there were still remaining in the United States, excluding Alaska, somewhat over three million million tons of coal, of all kinds. Of this enormous reserve, practically two-thirds exists in the area west of the 100th meridian, including the states of the Great Plains, the Rocky Mountains, the Great Basin and the Pacific Coast. As a basis for general manufacturing, this far western tonnage is highly important; but as related to a possible steel industry it becomes almost negligeable, for unfortunately it is not balanced by a corresponding development of iron ores in the western country. So that in our present discussion we may fairly disregard the western coal reserves, and concentrate attention of the unmined coal tonnage which still exists in the states- east of the Great Plains. In the portion of the United States to which our attention is thus limited the Geological Survey estimates a total coal reserve IRON ORES OF THE SOUTHERN UNITED STATES 245 of slightly over one million million tons. About half of this total occurs in the southern states, as that term is applied throughout this publication. The exact division by states is as follows : COAL RESERVES OF THE SOUTH State Tons Alabama 68,572,000,000 Arkansas 1,839,000,000 . Georgia 920,000,000 Kentucky 103,771,000,000 Maryland 7,795,000,000 Missouri 39,833,000,000 North Carolina 199,000,000 Oklahoma 79,201,000,000 Tennessee 25,499,000,000 Texas 30,967,000,000 Virginia 22,380,000,000 West Virginia 149,026,000,000 Total Southern coal reserve 530,002,000,000 Of this total tonnage, practically all is good bituminous coal, though the Texas total includes a notable proportion of lignite. In the other states, however, we may fairly consider that all of the tonnage estimated is coal suitable for general manufacturing uses; that most of it can be coked if proper processes be used; and that a very large proportion of it is strictly " coking coal" as that term is applied to-day by those who think in terms of the bee-hive oven. During 1911 the Southern States mined 117,625,019 tons of coal. At this rate of consumption, the southern coal supply would last for some three or four thousand years; so that we can contemplate a considerable increase in the rate of southern coal mining without becoming alarmed over the impending exhaustion of the coal supply. Even an ardent conservationist would find it difficult to really make much capital out of figures of this type. One may note, in passing, just how seriously this line of reason- ing affects certain investigations and prosecutions which have been much in the public eye during the past year or two. In the appraisal report of 1904, for example, the Tennessee Coal, Iron and Railroad Company was credited with the ownership, either in fee or under lease, of 1,623,639,500 tons of coal of all classes. This tonnage seems enormous, when written out in full, and it 246 IRON ORES would be an excessive supply for the ordinary citizen, purchasing coal only for domestic use. But when it is compared with the 68 million million tons which the official reports credit to the state of Alabama, the T. C. I. tonnage becomes a very small fraction of the total, amounting to about 2J percent of the State's reserve. The " unparalleled and enormous" coal reserves of the Tennessee Company, which were referred to in such a way as to give the impression that they constituted an effective monopoly of the Southern coal supply, do not after all seem so large when compared with the total available tonnages. The same difficulty has arisen elsewhere, as in the western states and Alaska, where the conservation idea has been applied too rigidly to supplies of coal far beyond the necessities of the next ten thousand years. Recurring to our immediate study, it is clear that the coal reserves of the south are so large that exhaustion of the coal sup- ply will nofc be the factor to bring about a slowing down in the rate of southern steel development. The coal supplies of this section are far beyond any probable future requirements of its iron industry; they are well distributed throughout the various states; and they include a far larger proportion of strictly " coking coal" than do the reserves of any other section of the United States. Southern Market Conditions. Three features stand out prominently when the southern iron- industry is studied from a commercial standpoint. These are (1) that until very recently all of the southern output was marketed in the form of pig iron, and that even now most of it is still sold in that form; (2) that the bulk of the output is marketed at points far from the furnace, and is subject to heavy freight charges; and (3) that the market price of southern pig is always lower, and usually much lower, than that of similar grades at northern and eastern furnaces. These three points of interest may be separately discussed, though they are all inter-related very closely. (1) The south has always been an important producer of foundry irons, while a considerable tonnage of steel-making pig has been shipped from Virginia for conversion elsewhere. As a result, even at present considerably less than half of the total pig iron produced in the south is converted into steel at southern plants; while until quite recently the. proportion thus converted IRON ORES OF THE SOUTHERN UNITED STATES 247 locally was even less important. Of course, so long as the acid Bessemer process was the principal steel-making method, this condition could not be changed, for low-phosphorus ores are al- most non-existent in the south. But as things stand now this difficulty is done away with to a large extent, and the further development of southern steel-making will be limited not by technical factors but by questions of capital and markets. If the market becomes broad enough to justify it, we may expect that capital will in time be provided to erect steel-making and finishing plants for such furnace-groups as have supplies of ore and coal enough to justify the increased investment. (2) The fact that local foundry development was never suffi- cient to take up any large proportion of the pig iron produced in the south, had of course the effect of forcing southern furnaces to ship north and west into competitive markets. Even now, with a fair degree of steel production in the south, a large portion of southern pig metal still goes to very distant markets. The extent to which this distant shipping was carried on can be best understood if we take up a specific case, and fortunately the statistics for one of the largest southern companies are available. For many years the Tennessee Coal, Iron and Railroad Com- pany has been one of the largest pig-iron producers in the South. During quite recent years it has also become a steel producer, but during its early history all of its product was marketed as pig iron. Its pig-iron sales now are relatively small in ordinary years, though the possibility that they will be made exerts an influence over southern market conditions. The following detailed figures of production and shipments to various markets during 1888 and 1899 are probably fairly representative of the general southern shipments during those years. They have also been reduced to percentages for convenience of comparison. 1888 1899 Tons Tons shipped Percent shipped Percent New York and New England 30,567 14 75,270 10 Penn.,Ohio, Ind., 111., etc 138,481 62 485,090 63 Southern States 50,406 22 102,735 13 Western and Pacific States 5,305 2 28,735 4 Foreign shipments 75,390 10 Total shipments 224,759 100 767,220 100 248 IRON ORES Though the management of the company pointed to these exhibits with evident pride, it is clear enough that they are not really things to be proud of, and that the distribution of ship- ments shown in them gives some clue to the relatively slow growth of the southern iron industry in general. During later years things improved in this regard, and for 1907 the same com- pany distributed its total product as follows: Sold as pig iron 315,573 tons Converted into steel 287,254 tons Total iron output 602,827 tons It is probably correct enough to say that of its total iron output, 60 percent or more was in 1907 used locally, as compared with the 13 percent so used in 1899. In the past few years the per- centage converted or sold locally has grown still higher, and here- after it is probable that in good business years the entire output will be locally used. This particular instance has been followed out in detail because the exact figures happen to be available, but it throws light on general conditions in the southern industry during the past few decades. Iron has been produced cheaply, and shipped to great distances in order to find a sufficiently broad market. This brings us directly to the price question. (3) It might of course be said that distant shipment does not affect prices, since prices are quoted at furnace, and freight rates are added to these base prices. This would be true enough if only a small proportion of the total output of any district was sold at distant markets. But when, as in the case of southern iron, practically all of the output was sold in distant markets in direct competition with northern irons, the Birmingham price was practically the northern market price less freight. All the advantages of cheap raw materials and low assembling costs were thrown away as soon as the bulk of the product was shipped into distant competitive markets; and southern furnaces have in consequence shown less profits than those in the north. The prospects of improvement in this regard will be noted later. Future Market Possibilities. In discussing the market conditions which have limited southern iron development in the past, we have in reality outlined many of the points on which the IRON ORES OF THE SOUTHERN UNITED STATES 249 hope of future growth must depend. It is clear enough that the southern supply of raw materials is sufficient to justify a far greater iron output than now exists. It is also clear that pig iron can be made cheaply at several points in the south, though this fact is no justification for also selling it cheaply. And as regards the fact itself, unusually low figures of cost must be accepted with some caution. A company which runs its furnaces without lining, or its mines without roofs, can show good paper costs for a time; but there is a natural limit to that sort of thing, and if it is practised too long the receivers are apt to have a bad mess to clear up. There has been a good deal of misunderstanding concerning low-cost southern iron in the past, but this is disap- pearing as accounting methods are becoming more uniform. For our present purposes we may assume that the bulk of .the southern tonnage is produced at a total cost of several dollars per ton cheaper than the bulk of northern iron; but that market conditions in the past have been such that this lower cost did not mean higher or even equal profits per ton. It is evident that even with an ample supply of raw materials it would be difficult to find capital to finance any large expansion of the industry under such conditions. Growth of the southern steel and iron industry must depend on improvement of conditions in the territory 'naturally tributary to southern furnaces and mills, so that this territory is capable of absorbing an increased output at somewhat fairer prices than have prevailed in the past. The Southern states themselves contain slightly over one-third of the population of the entire United States. Of course some of the south can be reached most economically from northern points, but on the other hand Alabama mills have some natural territory in the west, and Virginia and Maryland have market areas to the northward. So that in any general consideration of the matter we may safely assume that the territory naturally tributary to southern furnaces and mills contains one-third of the American population. But it is often overlooked that, in other regards, it is not average market ground. Its agricultural values are high, but its manufacturing is still relatively deficient; its railroad mileage until recently was below the average; and in some other respects it has in the past consumed less iron and steel, per capita, than the remainder of the United States. These facts are conveniently summarized in the following table, which 250 IRON ORES also serves to indicate how conditions are changing in these regards. SOUTHERN MARKET FACTORS, 1880-1910 1880 1890 1900 1910 Population, total 18,614,925 22,538,751 27,445,457 32,480,343 Percent., U. S 36.9 35.8 36.1 35.3 Railroad mileage, total miles. Percent, U. S Capital in manufactures, dollars. Percent U S 24,866 26.7 $329,753,000 11 8 50,350 30.2 $848,868,000 13 61,880 31.8 $1,408,866,000 14 3 87,084 35.5 $2,884,666,000 15 5 Annual manufactured pro- ducts, dollars. Percent, US ... $622,840,000 11 6 $1,242,581,000 13 2 $1,860,113,000 14 3 $3,158,107,000 15.2 Coal production, tons Percent, U. S Pig-iron output, tons Percent, U. S 7,002,254 9.8 448,978 11.7 24,925,345 15.8 1,833,937 19.9 54,510,460 20.2 2,642,720 19.1 120,856,340 24.1 3,447,291 12.6 On examining the data presented in the foregoing table, it will be seen that the southern states have held their relative proportion of the total population quite steadily, showing only slight changes in this regard over the past thirty years. But in the factors which make for increased iron and steel consumption they have advanced very rapidly. Railroad mileage has increased from 26.7 percent of the American total in 1880 to 35.5 percent in 1910; and the relative gains in both the capital invested in manu- facturing industries and in the total annual production of those industries has been particularly marked. Concurrently with these advances in industrial development, the coal production of the south has gained remarkably, as compared with that of the remainder of the United States. The iron production alone has shown no serious gain in relative status; and this fact of itself is sufficient to indicate that the southern iron market is far from being overbuilt at the present moment. With such rapid increases in general manufacturing and coal output, and with the increased railroad mileage which these advances will in turn require, it seems clear that the territory strictly tributary to southern mills and furnaces is gaining rapidly in its capacity for iron and steel consumption; and that there is every reason to believe that this gain will continue in the future. This implies that heavily increased productive capacity must be supplied very shortly, with the prospect that the returns on investment in such increased furnace and mill capacity will be attractive enough to stimulate investment. CHAPTER XIX THE NORTHEASTERN UNITED STATES The northeastern district, which includes New England, New York, New Jersey, Pennsylvania and Ohio, now produces only about 5 percent of the total iron-ore output of the United States. This present rate of output, however, should not be taken as a measure of the ultimate importance of the district, for it contains reserves of ore which both in grade and in quantity are deserving of serious attention, and will^ become more impor- tant as the shipping grade of the Lake ores decreases. General Distribution. The iron ores of the northeastern dis- trict are varied in type, and widely distributed throughout the region. It is possible, however, to group the bulk of the ores under three main types, though several other less important classes also require mention. The classes, with their general distribution, are as follows; 1. Magnetite ores, occurring in the crystalline rocks of the Adirondacks and Hudson Highlands of New York, in the High- lands of New Jersey, and in southeastern Pennsylvania. These ores agree in being magnetites, and in their universal association with igneous or metamorphic rocks, but differ among themselves in origin, character and geologic relations. In most cases they require concentration, but the resulting concentrate can usually be made of high grade within commercial limits as to expense. 2. Red hematites of Clinton age, like those of the Birmingham district, are also found in large quantity in the northeastern district. Here they outcrop along a belt extending from near Rochester to near Utica, New York. South of this, the ores do not show in workable tonnage until we reach Pennsylvania, where they have been important sources of iron in the past and still contain large reserves. 3. Brown ores occur in scattered deposits in the limestone valleys of western New England, southeastern New York, north- ern New Jersey, and eastern and central Pennsylvania. These 251 252 IRON ORES ores have been extensively used locally, and in many localities would probably repay further development. In addition to the three main types above mentioned, note must be made of the extensive though low-grade carbonate ores of Ohio, and of the red hematites of the western Adirondack region of New York. In discussing the ores of the northeastern states, the grouping adopted will be based on both geological and commercial consid- | Cambro- S/lunc Sediments I Granite Syenite ana \ Acidic Gneiss (port V ,l/^ / \r^-^j!= Hematite Deposits. . 9 Titaniferous Magnetites Nontitaniferous Magnetites FIG. 40. Map of Adirondack iron-ore region. (Newland.) erations. The magnetites occur in three quite distinct areas and associations; and the magnetic ores of the Adirondacks, of south- eastern New York and northern New Jersey, and of southeastern Pennsylvania will therefore be discussed separately in the order named. At present these magnetic ores are by far the most important ores of the states now under discussion. But there are also brown ore deposits of some importance, Clinton red THE NORTHEASTERN UNITED STATES 253 hematites of future promise, and a few carbonates and red hema- tites of other type which require brief mention. These ores will accordingly be briefly described after the magnetites. MAGNETITES OF THE ADIRONDACK REGION, NEW YORK The Adirondack region, in the northeastern part of New York State, comprises a roughly circular area of crystalline rocks, FIG. 41. Sketch map of Mineville range. (After Kemp.) something over 100 miles in width from east to west, and per- haps averaging about 125 miles from north to south. The entire area thus includes about 12,000 square miles at the most; and 254 IRON ORES much of this total must be looked upon as possible iron-bearing territory. The rocks are of pre-Cambrian age; and include an old series of gneisses, a later series of schists and crystalline limestones, and igneous rocks of various ages. One particular group of these igneous rocks a series of gabbros and other basic rocks is of special interest as carrying the titaniferous ore-bodies of the region. The normal or non-titaniferous magnetites are associated, in various places, both with the older gneisses and with the later schists and limestones; but the main masses now worked are DICKSON VEIN HALL SLOPE. FIG. 42. Cross-section of Lyon Mt. deposit. (Newland.) those associated with the gneisses. The ores occur in tabular or lenticular masses, and the individual deposits can be followed for distances of miles. They have been ascribed both to direct igneous origin and to contact replacement. The field relations seem to negative the first possibility, and to suggest some type of replacement as being the more probable source of the deposits. In a few instances, it is true, the relations would even seem to suggest a more direct sedimentary origin, but study of these particular deposits is not sufficiently advanced to take this sug- gestion seriously at present. The ores vary considerably, in their natural state, with regard to certain phases of composition. With the exception of a few THE NORTHEASTERN UNITED STATES 255 deposits near Lake George, they are low in sulphur. As regards phosphorus, they vary from the exceptionally low-phosphorus ores of Lyon Mountain to the high-phosphorus ores of Salisbury and Mineville. The iron. content varies from the almost pure magnetite found in some of the Mineville openings down to the 22 or 25 per cent, of iron which at present is the lower limit for profitable concentration. As the Adirondack ore reserves are figured to-day, the average ore of the region would probably fall not much above 35 percent metallic iron. This means that the typical ore is about half magnetite and half gangue rock by weight. The following publications refer to the magnetites and other ores of the Adirondack region in New York State. SCALE OF FEET . 50 100 K>0 FIG. 43. Cross-section of Benson deposit. (Newland.) KEMP, J. F. The Geology of the Magnetites near Port Henry. Trans. Amer. Inst. Mining Engrs., vol. 27, pp. 146-203. 1897. KEMP, J. F. The Titaniferous Iron Ores of the Adirondacks. 19th Ann. Rep. U. S. Geol. Survey, part 3, pp. 277-422. 1899. NEWLAND, D. H., and KEMP, J. F. Geology of the Adirondack Magnetic Iron Ores. Bulletin 119, New York State Museum. 1908. NEWLAND, D. H. On the Association and Origin of the Non-titaniferous Magnetites in the Adirondack Region. Economic Geology, vol. 2, pp. 763-773. 1907. SMOCK, J. C. Iron Mines and Iron Ore Districts of New York. Bulletin 7, New York State Museum. 1889. STOLTZ, G. C. The Cheever Mines, Port Henry, N. Y. Eng. and Mining Journal, Oct. 21, 1911. MAGNETITES OF NEW JERSEY AND NEW YORK HIGHLANDS The Highlands of the Hudson, in Putnam and Orange counties, New York, are made up chiefly of pre-Cambrian crystalline rocks; gneisses of uncertain origin, schists and crystalline limestones, and later granites and basic igneous rocks. This belt crosses 256 IRON ORES New Jersey in a southwesterly direction. Throughout its entire extent, both in New York and New Jersey, it contains numerous deposits of magnetite. Some of these have been worked for considerably over a century, and .are still producing. The importance of the district, minimized for a time by developments elsewhere, is likely to increase in a moderate way during the next period of iron expansion. Any adequate explanation of the origin of these magnetite deposits must take into consideration certain structural and other relations which they exhibit almost universally (1) their flattened, lens-like or bed-shaped form, (2) their general conformity to the foliation of the inclosing rocks, (3) their occurrence along certain definite belts whose trend is closely parallel to the strike of the inclosing rocks, (4) their frequent (or general) association with bodies of crystalline limestone. A brief consideration of these general relations will serve to show that it would be difficult to reconcile them with any theory involving the direct igneous origin of the magnetite deposits. Elimination of the group of theories based upon igneous origin leaves two general types of origin to be considered direct sedimentation and replacement. Of these two alternative hypo- theses the evidence seems to be strongly in favor of the latter. Differences of opinion are of course possible as to the details of the process, but the general method seems quite clear, the usual close association of the magnetites with limestone or other readily replaceable rocks being of interest in this connection. Even in the cases where no bodies of limestone are now to be found with the magnetite, it seems a fair assumption that such limestone beds once existed, and that the replacement process has here been carried to its limit, removing all traces of the replaced rock. The following papers and reports refer to the magnetites of the Hudson Highlands of New York, and of northeastern New Jersey. BAYLEY, W. S Iron Mines and Mining in New Jersey. Vol. 8, Reports New Jersey Geol. Survey, 1910. KOEBERLIN, F. R. The Brewster Iron-bearing District of New York. Economic Geology, vol. 4, pp. 713-754. 1909. SMOCK, J. C. Iron Mines and Iron Ore Districts of New York. Bulletin 7, New York State Museum, 1889. SPENCER, A. C. Genesis of the Magnetite Deposits in Sussex County, New Jersey. Mining Magazine, vol. 10, pp. 377-381. 1904. THE NORTHEASTERN UNITED STATES 257 17 258 IRON ORES STEWART, C. A. The Magnetite Belts of Putnam County, N. Y. School of Mines Quarterly, April, 1908. STOLTZ, G. C. The Forest of Dean Iron Mine (Orange County, N. Y.). Eng. and Mining Journal, May 20, 1908. MAGNETITES OF SOUTHEASTERN PENNSYLVANIA The belt of pre-Cambrian rocks, noticed under the last heading, continues across southeastern Pennsylvania, and there also con- tains a number of workable magnetite deposits. The most important of the Pennsylvania magnetites, however, though occurring in the same general section of the state are entirely SCALE OF MILES o i FIG. 45. Cross-section of Cornwall ore-body. (Spencer.) different from these pre-Cambrian ores in their origin, geologic associations and characters. They are magnetite deposits of Triassic age, formed by contact action along the borders of the great masses of basic igneous rocks which appeared during this period. By far the most important Pennsylvania magnetite bodies is Cornwall, which is typical of the class just mentioned. The following publications refer to the magnetites and hema- tites of southeastern Pennsylvania. HARDER, E. C. Structure and Origin of the Magnetite Deposits near Dillsburg, York Co., Pa. Economic Geology, vol. 5, pp. 599-622. 1910. SPENCER, A. C. Magentite Deposits in Berks and Lebanon Counties, Pa. Bulletin 315, U. S. Geol. Survey, pp. 185-189. 1907. SPENCER, A. C. Magnetite Deposits of the Cornwall Type in Pennsylvania. Bulletin 359, U. S. Geol. Survey, pp. 102 . 1908. THE NORTHEASTERN UNITED STATES 259 CLINTON RED ORES OF NEW YORK AND PENNSYLVANIA Bedded red hematites of Clinton age occur underlying large areas in New York and Pennsylvania. As in the case of the southern Clinton ores, these are in part oolitic, in part replace- ments of fossil fragments, in part merely fillings of iron oxide between sand grains and pebbles. They have been worked extensively in Pennsylvania in the past, and to a considerable extent in New York. During recent years there has been little opportunity for much development of ores of this type, but it is probable that in the near future more interest will be shown along this line. Though their grade is only fair, the reserves are of very large tonnage and easily determined and located. The following reports and papers refer to the Clinton ores of New York and Pennsylvania. ECKEL, E. C. The Clinton Hematite in New York. Eng. and Mining Journal, vol. 79, pp. 897-898. 1905. HIGGINS, E. Stripping Clinton Ores in New York State. Eng. and Mining Journal, Dec. 12, 1908. KELLY, W. The Clinton Iron-ore Deposits of Stone Valley, Huntingdon Co., Pa. Bull. 25, Amer. Inst. Mining Engrs., 1909. NEWLAND, D. H., and HARTNAGEL, C A. Iron Ores of the Clinton For- mation in New York State. Bulletin 123, N. Y. State Museum, 1908. RUTLEDGE, J. J. Clinton Iron Ores of Stones Valley, Huntingdon Co., Pa. Trans. Amer. Inst. Min. Engrs., vol. 39, 1908. BROWN ORES OF THE NORTHEASTERN STATES Brown ores occur in western New England, southeastern New York, northern New Jersey and southeastern Pennsylvania. They were mined extensively in the early days of the iron indus- try, but fell into disuse as charcoal disappeared and better ores came in from the Lake and other regions. At present one mine in New Jersey and a few in Pennsylvania are still operated in ordinary years. So far as future industrial importance is concerned, the north- ern brown ores do not offer much prospect of further develop- ment. The heavy covering of glacial drift makes both pros- pecting and mining much more expensive than in dealing with ores of similar type in the south. The following publications refer to the brown ores of the northeastern states. 260 IRON ORES BAYLEY, W. S. Iron Mines and Iron Mining in New Jersey. Vol. 8, Reports New Jersey Geol. Survey. 1910. ECKEL, E. C. Limonite Deposits of Eastern New York and Western New England. Bulletin 260, U. S. Geol. Survey, pp. 335-342. 1905. HOBBS, W. H. Iron Ores of the Salisbury District of Connecticut, New York and Massachusetts. Economic Geology, vol. 2, pp. 153-181. 1907. HOPKINS, T. C. Cambro-Solurian Limonite Ores of Pennsylvania. Bulle- tin Geol. Society America, vol. 2, pp. 475-502. 1900. RED HEMATITES OF THE WESTERN ADIRONDACK^ A series of deposits of red hematite occurs along the western flank of the Adirondack region, in St. Lawrence and Jefferson counties, New York. Some of these deposits have been worked, at intervals, for eighty years or so; one or two of them are still operated during prosperous years. Comparatively little atten- tion has been paid to exploration in this region, and it is possible that the reserves here are of more importance than is commonly assumed. The developed tonnage is, of course, very small. The ores are red hematites of moderate grade, ranging com- monly from 40 to 50 percent metallic iron as shipped, and averaging probably a little below 45 percent. The following analyses, quoted from the Tenth Census report, are as useful as any later results and show the general range more completely. ANALYSIS OF RED HEMATITES, WESTERN ADIRONDACKS Metallic 40.40 46.32 41.92 42.18 48.36 36.78 54.16 46.46 44.35 iron. Phosphorus 0.204 0.285 0.130 1.138 0.115 0.212 0.156 0.214 0.226 CARBONATE ORES OF OHIO AND WESTERN PENNSYLVANIA Associated with the Carboniferous rocks of western Pennsyl- vania and Ohio are bedded deposits of iron carbonate ores. These were formerly worked on a considerable scale, but with the opening up of the Lake ranges the use of the local carbonates fell off. There is still, however, a small but regular production of carbonate ore reported from eastern and southeastern Ohio. The ores are commonly spoken of as carbonates, and in fact they were such in their original form. But atmospheric and sub-surface weathering has altered much of the ore to brown ore at and near the outcrop. All of the ore now mined is calcined before use in the blast furnace. THE NORTHEASTERN UNITED STATES 261 Analyses of typical Ohio ores, after being calcined, are as follows : ANALYSES OF CALCINED CARBONATE ORES, OHIO 1 2 Iron (Fe) 44.80 44.50 Manganese (Mn) 0.70 0.62 Sulphur (S) Phosphorus (P) 0.67 0.195 0.80 0.57 Silica (SiO 2 ) 18.50 23.00 Alumina (A1 2 O 3 ) Lime (CaO) 5.75 6.45 4.45 5.90 Magnesia (MgO) 1.95 2.55 1. "Ohio block ore." Scioto County, Ohio. Calcined ore. 2. New Castle Mine, Pine Grove, Lawrence County, Ohio. Calcined ore. NORTHEASTERN ORE REQUIREMENTS Having discussed the known ore deposits of the northeastern states, it will be serviceable to consider how far these local re- serves are utilized at present, and what the prospects are for greater development in the future. Present Ore Production. For a number of years past the northeastern district has normally produced bstween two and three million tons of ore per annum, the only recent exception having been the year 1908 when of course the output dropped sharply. On the average, the output of the northeastern states amounts to about 5 percent of the total United States produc- tion. The following summary table gives the figures on these points for a number of years back. ORE OUTPUT, NORTHEASTERN STATES, 1905-1912 Year 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 Iron ore putput, northeastern states, tons 2,520,845 2,582,666 2,823,422 1,590,098 2,280,741 2,605,318 2,098,923 2,139,058 Ore putput, total United States, tons 42,526,133 47,749,728 51,720,619 35,924,771 51,155,437 56,889,734 43,876,552 55,150,147 Percentage, northeast 5.93 5.41 40 42 46 58 4.79 3.88 262 IRON ORES Chief Sources of Supply. The total ore produced in the north- eastern states comes chiefly from three main sources of supply. Almost half of the total usually comes from magnetite mines in the Adirondack region of New York; and almost a quarter of the total each from northern New Jersey and southeastern Pennsyl- vania. Of the small balance, Ohio carbonate ore, red hematite from the western Adirondacks, and brown ores from eastern Pennsylvania account for all but a few thousand tons. The distribution of the magnetite ore which makes up almost all of the northeastern total, by states is shown in the following table, for the years 1910-1912 inclusive. CHIEF SOURCES OF MAGNETITE OUTPUT, 1910-1912 Tons of Magnetite Produced 1910 1911 1912 New York 1,222,471 1,029,231 1,110,345 Pennsylvania 632,409 477,908 476,153 New Jersey 521,832 464,052 364,673 Present Ore Markets. The present distribution and markets for northeastern iron ores may be summarized as follows. Of the Adirondack ores, a portion is used in local furnaces, at Standish and Port Henry; a small fraction commonly goes to furnaces in the Buffalo district; and the remainder, which is over half the total, is shipped by rail to furnaces in eastern Pennsyl- vania. The ores from northern New Jersey are used locally, in furnaces situated in northern New Jersey and eastern Pennsyl- vania. The Cornwall and other eastern Pennsylvania ores are used locally, in furnaces quite near the mines. It will be seen that, except for such tonnage as reaches the Buf- falo region, all of the northeastern ore is at present used in fur- naces situated in the same general region. As to ownership of the ore, it is probably safe to say that considerably over half of the ore now mined each year in the northeastern states goes to furnaces interested directly in the mines. The tptal amount of merchant ore, reaching the general ore market, may range from 500,000 tons to 1,000,000 tons per year. As to competition, the northeastern ores meet foreign ores in New Jersey and Pennsyl- vania markets; and meet Lake Superior ores at Buffalo and in eastern Pennsylvania. Prospects for Future Development. We may assume, without chance of serious error, that at present some three or four hundred THE NORTHEASTERN UNITED STATES 263 million tons of commercial concentrates could be turned out from magnetite ore-bodies which have been well developed and proven up in the northeastern United States. It is probable that at least an equal tonnage could be made from deposits known to exist, but not yet sufficiently developed to warrant close estimates. All this is ore which could be mined, milled and sold at a profit under the conditions which exist to-day. It does not take into consideration the enormous tonnages of Clinton ores and other possible future sources of supply. As against these reserves which are measured in hundreds of millions of tons, we face the fact that the annual ore output in the northeastern states is some two or three million tons a year; and that it is not growing, on the average. The question at issue is whether there is any reason to expect developments which will increase the market for these ores, and permit larger annual output. This question may, in my opinion, be answered in the affirma- tive. There seem to be several causes at work which will, in the near future, create a better demand for at least some of the north- eastern ores. Primarily, there is the growth of iron and steel manufacture in the eastern district; which the recent tariff changes, after a temporary discouragement, will doubtless be found to help rather than hinder. Second, as affecting com- petitive values, we have to consider that the completion of the New York State canals will permit cheaper transportation of Adirondack ores to their markets. CHAPTER XX THE WESTERN UNITED STATES The Western District, as that term is here used, includes the eleven states lying west of the eastern lines of Montana, Wyoming, Colorado and New Mexico. It thus comprises somewhat over a third of the total area of the United States. On the other hand, it produces somewhat less than 2 percent of the total output of iron ore in the United States. Productive Status of the West. The present situation in this regard is well brought out by the following table. IRON-ORE PRODUCTION OF WESTERN DISTRICT, 1906-1912 Year 1906 1907 1908 1909 1910 1911 1912 Production, tons. Percentage of United States. 806,268 831,258 1.69 i 1.61 528,625 1.47 637,582 1.25 861,850 1.51 746,971 1.70 815,425 1.47 The preceding figures are taken from reports of the United States Geological Survey. For the earlier years they include all iron ore mined in the west, not only that used for pig iron but also the tonnage used as flux at plants smelting other metals. Practically all of the tonnage given in the above table now comes from the Hartville region of Wyoming, and goes to the only important western furnace plant, that of the Colorado Fuel and Iron Co., at Pueblo, Colorado. There is a small electric furnace operating in California, and at different times more or less serious attempts have been made to make iron and steel in Oregon and Washington. The Colorado plant, however, is the only large and steadily operated consumer of iron ore in the entire western district, and this condition is'not likely to be changed in the near future. A high tariff might ultimately induce the manufacture of iron and steel at another interior point, such as Ogden, as well as at some coast point. But the market is not large at the best, and under existing conditions it can be supplied more cheaply from outside sources. 264 THE WESTERN UNITED STATES 265 Hartville Region, Wyoming. The Hartville iron region is located in eastern Wyoming, in Laramie County. As at present developed, it is a relatively small area, not over 20 or 30 square miles being involved. Shipments from this region commenced in 1868, and since that date it has become the principal source of supply for the furnaces of the Colorado Fuel and Iron Com- pany at Pueblo. Iron ton f" \ \ ?;cago.Xf ( i Mine \\ . \ V S-^" ' rH Oi 1C tO rH tO tO Tt< OOlMOrHCO^OrT-j^ CO'O O3 rH ^(NOOl^O^rHlO Oi to oo c^ c^ , o^ oo t^ oocoo pi^ d 1 ^ 1 " 11 ^ 00 00 CO tO CO tOOOOOr^rrjrrj'O CDrHOOCS fj fl rn'fO rH < PH - OrHOO^(NcDiO oo'ddt^ i-'ddco a3 of S CD OOrHt>. OOCOT^OOrH OtOOr^t^OO^CDOO COOO CCDOT^dcO X O g rH O - '^ ^H ^^ Ci ^^ ^^ T~H CO C^ tQ r-t !-H ALYSES TjH _ QO CO CO C^ B CO CO t u *o CO Oi ^^ r?H CO CO ryH r^ ^ ^ oooo pjcoco d do ^^ rH rH rH * < CO to co co co co to os COOSO^jOOiOtoiO cooo ddoooiN IO rH rH rH -O5O5CO 00 O5 t^" ^D ^^ t^ CO t>* to C^ coddoco^oooo to CC ^ J I ^ : g -1 Isls'll 1 Islllllsl Cretaceous limestones, and prob- ably originated by replacement of portions of these limestones. In the Province of Lugo are a series of ore-bodies, mostly brown hematite though other ores occur, associated with schists and other metamorphosed rocks of pre-Cam- brian and Cambrian age. Many of these are relatively low grade, but the total reserve amounts to a considerable tonnage. The Province of Lon contains one large group of deposits, and a number less important, the whole aggregating some one hundred mil- lion tons of high-grade ore and another equal quantity of low- grade material. The high-grade ores, near Astorga, are carbonates, weathered near the surface into brown hematites; and are associ- ated with Silurian schists in bed- like deposits. Oviedo Province also contains a considerable reserve tonnage of bedded ores associated with Devo- nian rocks; and the provinces of Huelva, Sevilla, Almeria, Santan- der, Saragossa, Teruel and Guada- lajara possess more or less impor- tant ore-bodies. 1. Santander: granular washed ore. 2. Santander: fines. 3. Bilbao: rubio. 4. Bilbao: rubio. 5. Bilbao: calcined spathic ore. 6. Malaga. 7. Sevilla. 8. Almeria; 9. Cuevas Negras. 10. Purias. 11. Aguilas. 12. Porman. The following data on the iron- ore production and exports of THE IRON ORES OF EUROPE 325 Spain are taken from a recent report of the British Board of Trade. IRON-ORE PRODUCTION AND EXPORTS OF SPAIN, 1891-1911 Year 1891 1893 1895 1897 1899 1901 1903 1905 1907 1909 1911 Spanish ore output 5,040,000 5,362,000 5,426,000 7,301,000 9,247,000 7,779,000 8,171,000 8,931,000 9,737,000 8,645,000 Iron ore exports 4,274,000 4,708,000 5,092,000 6,774,000 8,475,000 6,783,000 7,568,000 8,452,000 8,497,000 8,048,000 7,165,000 Net available for home consumption 766,000 654,000 334,000 527,000 772,000 996,000 603,000 479,000 1,240,000 597,000 Tr/arss/'c Limestone Upper Guadix Formation (Miocene) * FIG. 62. Replacement deposits, Spain. (Hobbs.) RUSSIA European Russia contains a large tonnage of iron ores, but the distribution of much of the total reserve is such that no immediate development can be expected commensurate with the ore avail- able. This is brought out best, perhaps, by the following table, the data for which have been taken from the report on Russian ores by Bogdanowitsch 1 and rearranged to serve better the pur- poses of the present publication. The table contains data on the total ore reserves of the five principal Russian ore districts, the total metallic iron content of these reserves, and the amount of ore mined in each district during 1900 and 1906 respectively. This last item will give some idea of the present commercial development of the various districts. 1 Bogdanowitsch, K. Iron Ores of Russia. In Iron-ore Resources of the World, Stockholm, 1910. vol. 1, pp. 363-544. 326 IRON ORES ORE RESERVES, AND PRODUCTION OF EUROPEAN RUSSIA Total ore reserves, metric tons Ore mined, metric tons Iron-ore tonnage Meta'lic iron contained 1900 1906 Southern Russia Ural district .... 536,000,000 281,930,345 300,000,000 789,000,000 14,000,000 233,320,000 135,355,696 120,000,000 315,600,000 8,300,000 3,443,000 1,660,632 485,729 510,560 3,533 3,656,051 1,242,000 300,905 148,638 1,900 Poland and northern . . Central Russia Caucasus . . . 1,920,930,345 812,575,696 6,103,454 5,349,494 On their face the ore reserves above noted seem satisfactory enough, and until the data are examined more critically it is difficult to explain why the relatively large finishing capacity of the Moscow and other central Russian districts is so far out of line with the comparatively small ore production of that area. As a matter of fact, however, the large total ore reserves credited to central Russia are in reality less important than they seem owing both to grade of ore and thinness of the ore-bodies. From an international viewpoint, the ore deposits of southern Russia are the ones which require most attention; for these are so located as to be of importance to foreign competitors, while the total reserve tonnage is high, and the grade of much of the ore is excellent. The ore reserves of South Russia chiefly ores of two types, which have also a different geographic distribution. These are: (a) Hematites occurring associated with metamorphic schists in the region of Kriwoj Rog, in the Governments of Ekaterinoslav and Cherson. These ores range from 50 to 70 percent metallic iron, though at present the lower grades are not shipped; from 0.01 to 0.06 phosphoric acid; 2 to 11 percent silica; 0.7 to 3.5 percent alumina; traces only of sulphur; ordinarily less than 1 percent of lime and magnesia together; and 0.02 to 0.08 manganese. They are now extensively worked, and it is estimated by Bogdanowitch that some 86 million tons of commercial ore still exist, of which 53 million tons will grade over 62 percent iron. (b) In the Kertsch peninsula series of lower-grade ores occur, but their relatively low iron is made up partly by advantages of location and by the large tonnages available estimated at some 450 million tons. The ores are brown hematites asso- ciated with Pliocene beds; and range from 34 to 42 in iron; 1 THE IRON ORES OF EUROPE 327 to 8 percent manganese; 1.5 to 2.7 phosphorus; and 14 to 17 silica. The analyses below represent actual shipments from mines in the Kriwoj Rog district noted above. ANALYSES OF IRON ORES, RUSSIA 1 2 Iron 67.00 65.88 Manganese n.d. . 08 Phosphorus 0.015 0.02 Sulphur 0.018 0.026 Silica 2.88 2.96 Alumina . 64 1 . 43 Lime n.d. 1 . 46 Magnesia tr. . 39 Water 2.70 3.12 1. Kolaczewsky 2. Nicolaieff. The following summary of the general Russian ore situation is taken directly from a recent report of the British Board of Trade. IRON-ORE PRODUCTION, ETC., OF RUSSIA, 1891-1911 Y ear Russian ore Exports Imports output of ore of ore 1891 1,869,000 8,000 12,000 1893 2,002,000 11,000 26,000 1895 2,704,000 17,000 22,000 1897 3,745,000 15,000 33,000 1899 5,598,000 12,000 44,000 1901 4,577,000 20,000 71,000 1903 4,071,000 305,000 81,000 1905 4,799,000 218,000 77,000 1907 5,268,000 882,000 85,000 1909 5,085,000 508,000 81,000 1911 6,832,000 869,000 106,000 AUSTRIA, HUNGARY AND BOSNIA In taking up the Austrian Empire, we are dealing with a far less important possible source of iron ores than in the countries so far discussed. Not only is the total reserve tonnage relatively small, but other manufacturing conditions seem to indicate that Austro- Hungary has about reached its maximum importance from an international viewpoint, so far as iron and steel production are concerned. Individual plants may increase in size and output, 328 IRON ORES but hardly in the same ratio as those of France, Germany or Russia. Of all the iron-ore deposits in Austria, Hungary and Bosnia, only two districts are of serious international importance. These are respectively Bohemia and Styria, each of which may contain several hundred million tons of workable ore. The chief Styrian ores are carbonates, occurring in large tonnages, but of course relatively low grade. The Bohemian ores include contact deposits of hematite, and also large reserves of purely sedimen- tary ores of lower grade. These last include both oolitic hema- tites and chamoisite. As noted in an earlier chapter (p. 26) the chamoisite ores are hydrous iron silicates, and since ores of this type are rarely used it is of interest to quote several analyses of crude and roasted chamoisite from Uhlig's report on Austrian iron ores; ANALYSES OF IRON SILICATE ORES, AUSTRIA 1 la 2 2a Metallic iron 35.54 44.30 32.78 41.79 Manganese . 05 . 06 . 05 . 03 Phos. pentoxide 2.05 2.55 1.52 2.13 Sulphur 0.27 0.35 0.20 Silica 12.52 15.61 13.38 21.56 Alumina 7.75 9.66 13.12 13.17 Lime 3.35 4.17 3.42 1.76 Magnesia 2.28 2.84 2.08 1.28 Water, etc 19.78 18.92 0.54 1, 2. Crude Ore. la, 2a. Roasted Ore. It can be seen, of course, that the two sets of analyses do not exactly correspond, but they are of value as average results nevertheless. IRON-ORE PRODUCTION, ETC., OF AUSTRO-HUNGARY, 1891-1911 Year Austrian ore Iron ore Iron ore output exports imports 1891 2,073,000 87,000 67,000 1893 2,052,000 104,000 72,000 1895 2,302,000 162,000 116,000 1897 2,986,000 244,000 133,000 1899 3,240,000 322,000 209,000 1901 3,464,000 226,000 215,000 1903 3,104,000 249,000 215,000 1905 3,518,000 318,000 224,000 1907 4,138,000 217,000 384,000 1909 4,384,000 176,000 368,000 1911 4,597,000 112,000 462,000 THE IRON ORES OF EUROPE 329 The proceeding data on the iron-ore production, exports and imports of the Austro-Hungarian Empire are taken from a recent British Board of Trade report. ITALY, GREECE AND THE BALKAN REGION The European countries which remain to be mentioned are not well supplied with iron ores, and are probably of more importance now than they are likely to be in the future. Italy has a single large mine group, on the island of Elba, which still contains a moderate reserve of high-grade ore. The Balkan countries and Turkey have not, so far as known, ore reserves of an amount which is likely to make them of international importance. Greece, however, has a series of well located deposits which are now mined on a moderate scale for export. The ores grade about 50 per- cent iron, but like the Cuban brown ores carry notable percent- ages of chromium and nickel. This gives them special value for a few purposes, but limits their general use. ANALYSES OF IRON ORES, GREECE 123 Iron 50.25 47.16 50.46 Manganese 2.36 0.31 0.19 Chromium n. d. 2.31 2.27 Nickel n. d. n.d. 0.59 Phosphorus 0.02 0.02 0.006 Sulphur 0.015 0.04 0.029 Silica 2.29 7.18 8.37 Alumina n.d. 9.60 7.54 Lime 7.60 2.30 0.69 Magnesia 0.50 1.49 1.91 Water 8.15 3.40 n.d. 1. Gramatico. 2. Thebes. 3. Tragana. BELGIUM Though a large producer of steel, Belgium is now primarily an ore-importing country, drawing its main supplies from Spain, Sweden and Germany. It still contains ore deposits of several types, but only one of these seems to give promise of being of more than temporary importance to the Belgium iron industry. This type includes sedimentary deposits of hematite, occurring as beds in Devonian rocks. The grade is relatively low, but the beds are of workable thickness over considerable areas, so that the total available tonnage is of fair amount. CHAPTER XXV ASIA, AFRICA AND AUSTRALIA In taking up the three continents now to be discussed Asia, Africa and Australia the. treatment of their iron resources can be only tentative. In the first place, there are still vast gaps in our knowledge concerning the actual occurrence of iron ores in these continents; large areas are still practically unknown, and it is not only possible but probable that some of these unknown areas may finally be found to contain very important ore deposits. But these defects in geological knowledge are unimportant com- pared with the uncertainty regarding the progress of general development on at least two of the continents. For, as has been suggested at various points in preceding chapters, the mere oc- currence of iron ore does not of itself imply that important de- velopment is bound to occur. Before we can have any definite idea as to the international importance of a newly discovered ore-body, we must have a fair idea as to the fuel, market, labor and transportation conditions which exist now at that point, or which are likely to exist in the near future. Under these circumstances, it is obvious that a discussion of the iron-ore resources and possibilities of Asia, Africa and Australia must of necessity be colored largely by the writer's ideas concerning the possibilities of general development in those regions. It would of course be possible to simply present a catalogue of known iron-ore localities; and perhaps this easy way out of the difficulty might be justified. In the present chapter, however, I have attempted to do something more than this, since the possible gain to the reader seems to more than balance the risk of failure. In place of presenting all available facts without comment, only such facts have been presented as seem to be of wide importance; and these facts are grouped in such a way as to suggest their probable relative effect upon the future course of the world's iron industry. The statements made are based upon good authorities; my interpretation of their relative 330 ASIA, AFRICA AND AUSTRALIA 331 importance and international bearings may be faulty; the re- sulting discussion, at any rate, is presented as the first attempt to reach general conclusions on these important points. ASIA 1. China, Corea and Japan. These three politically distinct areas are here grouped together since their development seems likely to take the same course, and to be open to influence by the same possible changes in political and economic conditions. In attempting to discuss the iron-ore resources or the iron- making possibilities of China, a lack of definite information re- garding many important points must be taken for granted. As regards either iron or coal supplies we have to deal with numerous detached statements in the records of many travelers, with a few more definite and specific accounts of certain districts by engineers or geologists, and with fairly definite data concern- ing the only modern steel plant in China. The latter, operated by Japanese capital, has of course attracted the attention of political and commercial competitors; and a fairly close esti- mate of its manufacturing possibilities can be arrived at. But with regard to the possibilities of coal and iron development in other areas, there is ample room for serious errors in any attempt to summarize the situation and its probable line of progress. Native iron manufacture has of course gone on in a small way for many tens of centuries; but this does not help much in at- tempting to locate the possibilities for modern large-scale pro- duction. Read notes many localities which seem to give promise of future importance, ranging from near Mukden in the north to Canton in the south; and some of the other papers available give details regarding specific districts. His final conclusion is that the chief iron development is likely to takefplace in the Yang-Tze valley, where good ore supplies and adequate water transportation to markets are available. The one modern plant of China is already located in this area, at Hanyang opposite Hankow in Hu-Pei province. The ore used at the Hanyang furnaces is mined at Ta-Yeh, 50 miles southeast of the plant. Read states that this ore is a hematite, occurring in large bodies along the contact between syenite and a Devonian or Carboniferous limestone. The ores grade between the following limits: 60 to 62 percent iron; 0.05 332 IRON ORES to 0.25 percent phosphorus; 0.05 to 0.12 sulphur; 3 to 5 percent silica; 1 to 2 percent alumina; 0.2 to 0.4 percent magnanese; and 0.05 to 0.25 percent copper. The ore-bodies now worked are credited with containing about 100 million tons of commercial ore. The coke used is from Ping Hsiang, 300 miles south of the furnaces; and manganese ore is obtained in the same locality as the coal. Read's figures on costs at Hanyang are illuminating, and will justify quotation. "The cost of production of iron ore in the open-cut workings at Ta-Yeh is approximately as follows: Mexican per ton. Stripping. $0.08 Mining 0.18 Tramming 0.03 Powder, steel, etc 0.015 Superintendence . 06 Loading, freight to Hanyang, etc. . . . 30 This would make the probable cost of the ore delivered at the blast furnace a little under $1.00 Mexican per ton. Ordinary unskilled laborers receive $0.08 to $0.12 gold per day. Skilled labor receives $10 to $50 Mexican per month; and the efficiency of this labor is remarkably high." As to the iron ores of Japan, they are widely distributed, and the total available tonnage is fairly large, though no single very large deposits are known to exist. Inouye states that the most important ore-bodies are contact deposits associated chiefly with Paleozoic limestones near their contact with igneous rocks. At the largest of these deposits, that of Kamaishi, the ore is a mag- netite ranging from 55 to 60 percent in metallic iron, and usually low in phosphorus. In other deposits the ores are hematites f substantially similar grade. Five deposits of various types are now producers; the magnetite deposits of Kamaishi, Naka- kosaka and Hitokabe, the hematite of Sennin, and the iron sands of Chugoku. Inouye estimates the reserve tonnage in the best known of these deposits at a total of about twenty million tons; but the unexplored reserves are possibly far larger. Inouye states that the Japanese iron industry dates back to the seventh century, and that in its earliest form it was based on the ASIA, AFRICA AND AUSTRALIA 333 use of iron sands as ores. The Imperial Iron Works, founded in 1896 and completed in 1901, has placed the industry on a modern footing. At these works about 200,000 tons of Japanese, Corean and Chinese ores are smelted yearly, yielding about 100,000 tons of pig iron, all of which (and more) is used in the steel plant. In addition, some 40 or 50 thousand tons of pig are made at smaller furnace plants; and 60 thousand tons or more are annually im- ported. These figures are noted here, for in most statistical summaries the entire production of the Imperial works seems to be overlooked, so that we are in danger of crediting Japan with much less iron and steel making capacity than she actually possesses. 2. British India. Three main types of iron-ore deposits seem to offer possibilities in the way of successful ore mining and iron manufacture in British India, though these three types differ greatly in their adaptability to these purposes. The types noted are respectively : a. Hematite and magnetite deposits, associated with pre- Cambrian rocks, and occurring in Madras, Bengal and central India. These ores are in places merely disseminated through masses of igneous or metamorphic rock, and will require con- centration to be serviceable. But at other points we have to deal with deposits which, because of either original greater rich- ness or secondary concentration, show definite ore-bodies con- taining high-grade ore. Two of these richer fields have attracted attention recently, as being the scene of the operations of the Tata Steel Company, in which American engineers are interested. These two areas are located respectively in Orissa (Bengal) and near Raipur (Central Provinces). The former field is the one which is expected to furnish the immediate supply for the Tata plant, which is located near Kalimati, 45 miles from the ores and 150 miles from Calcutta. Both the Orissa and Raipur ores are chiefly hematite, and in each case several hundred million tons of ore are supposed to exist. The Orissa ores carry 64 to 69 per- cent iron, 0.048 to 0.135 phosphorus, 0.021 to 0.036 sulphur and 1.64 to 4.08 silica. b. Carbonate ores in the Coal Measures of Bengal have been used by the natives and by the Barakar iron works for many years as a source of iron. The Barakar plant formerly obtained its entire supply from nodular carbonates occurring in shales in the Raniganj coal field; but recently magnetite and hematite ores 334 IRON ORES from near Kalimati have been used at the three Barakar furnaces. The carbonate ores analyzed 43.43 percent iron, 16.49 percent silica, 2.15 percent manganese and 0.86 percent phosphorus. Approximately 100,000 tons per year of ore are used, on the average, at this plant, its output of pig metal ranging not far from 40,000 tons per year. c. Residual brown ores, often highly aluminous, occur in quantity in the laterite formation in the presidencies of Madras, Bengal and Bombay. Much of these ores are too low grade, or too aluminous, to be worthy of consideration either now or in the near future; but in places analyses are reported which in- dicate ores at least as good as those mined in Cuba from similar deposits. From this brief outline it can be seen that the ore resources of British India are still far from being known definitely. Holland, in his summary, cautions against a too-enthusiastic view of the matter, pointing out that the number of small native bloomaries gives no indication as to the existence of really heavy reserves from a modern viewpoint. But, as against this, we must con- sider that within the past ten years Bose discovered and described two entirely new ore fields; and that when the engineers for the Tata plant tested these fields, they reported an aggregate reserve of some 400 million tons of ore, grading over 60 percent iron. Unless we are willing to assume that, by sheer good fortune, the only good ores in India were thus placed in the hands of the Tata company, we must be prepared to expect heavy tonnages to be turned up in other parts of a country which can produce two such excellent ore fields. On this account I am inclined to credit India with far heavier possible reserves than are considered probable by the Estimates of the Indian Geological Survey. As to the extent to which these resources are likely to be de- veloped, that is another question. There are no foreign furnaces so located that they can draw upon India for a portion of their ore supply, so it may be taken for granted that all of the mining development will be with the idea of using the ore in Indian iron works. The coal and labor supplies seem to be ample to permit such local development; and the markets reachable should be sufficient to take a far heavier tonnage of iron and steel than are now produced in India. The matter seems to rest indeed largely in the hands of the Government; and the manufacturing ASIA, AFRICA AND AUSTRALIA 335 development of India may depend almost entirely upon larger questions of political and economic policy. AFRICA Our knowledge of the iron-ore resources of the African con- tinent is necessarily still very indefinite, and a mere summary of the scattered data would be of little real service to our present work, for it would be difficult to put a catalogue list of African ore deposits into such form that any valuable conclusions could be drawn from it. On the other hand, certain general conclusions seem to be justified, in the light of our present knowledge. These conclusions are of course matters of purely personal judgment, and it may turn out that they are erroneous; but they are offered now as representing, in the opinion of the writer, the really important facts that seem to underlie the mass of scattered details which are now available. They may be summarized as follows : a. Large areas of the African continent, including much of the west coast, have so far either failed to show iron deposits, or are so handicapped by climatic conditions that serious development would be doubtful, even if iron ores are found. b. The north coast region, from Morocco to Tripoli, contains a series of more or less important iron-ore deposits. These are now partly developed, and the undeveloped areas will un- doubtedly soon be opened up. But the deposits of this region will serve as a source of supply for European furnaces, rather than as a basis for the growth of a local iron industry. c. In eastern and southeastern Africa an entirely different state of things exists. Here we have no deposits now developed, and we have no really definite data respecting the undeveloped deposits. But throughout a large area we do have notes on the occurrence of iron ores of a type which may readily become im- portant, and so far as can be judged now, may perhaps become more important than any of the other African fields. This region is suitable for white habitation and labor in most parts, and coal fields occur at various points in it. The data are plainly insufficient for final conclusions; but they obviously point toward the possibility that we are dealing here with a region which may become the location of an important iron production. For our present purposes we may entirely disregard the areas 336 IRON ORES which seem unlikely, for any reason, to become of serious inter- national importance, and concentrate attention upon the two regions which do give promise. 1. The North African Coast Region. For the four divisions making up this region, there are available very complete data on the iron ores of Algeria, fairly full data on Tunis, and prac- tically nothing on Morocco and Tripoli. It is known that the iron-ore deposits of Morocco have been examined by German and French engineers, but nothing definite on the result of these explorations has been published. The following summary must of necessity, therefore, relate almost entirely to conditions in Algeria, but the practical certainty that heavy tonnages exist in the other states must not be overlooked. For a number of years past heavy tonnages have been shipped from Algerian mines to European furnaces, and in later years Tunis has added to these shipments, which now average close to one million tons a year. All of this ore is a rather high-grade hematite, ranging from 50 to 60 percent iron, and low in phos- phorus. The ore-bodies are lenticular in shape, associated with schists and limestones, and probably represent replacements of the latter. Similar deposits occur in Tunis, and Nicou estimates the total reserve tonnage of these two French colonies at from 100 to 150 million tons of commercial ore. ANALYSES OF IRON ORES, ALGIERS 1 2 3 45 Iron 57.10 43.65 52.62 49.70 50.42 Manganese 1.2 1.1 4.88 1.30 1.39 Phosphorus 0.009 0.02 0.01 0.035 0.019 Sulphur 0.017 0.04 0.045 0.08 0.028 Silica 3.64 12.77 4.64 5.45 4.74 Alumina 0.49 n.d. 0.74 n.d. n.d. Lime 1.22 2.91 0.12 9.9 7.49 Magnesia 0.24 0.54 1.14 0.43 0.42 Water 8.65 6.18 7.04 9.75 9.08 1. Timezrit. 2. Oued-Djer. 3. Bar-el-Maden- 4. Temoulga. 5. Zaccar. 2. Eastern and southeastern Africa seems to contain, in most of the provinces and colonies, iron deposits of more or less im- portance; and in some of the areas these appear to be of great promise. For convenience the region will be taken up by administrative divisions, from north to south. In Egypt and the Soudan only scattered records as to iron de- ASIA, AFRICA AND AUSTRALIA 337 posits are available. These appear to indicate the presence of workable brown hematites in Darfur and Kordofan; and of widely distributed deposits of oolitic ores associated with a series of sandstones. No really definite data as to possible tonnages or working conditions seem to be available, but analyses of various samples are fair. Magnetites and other ores are reported from Uganda, British Somaliland, and the East Africa Protectorate, the latter province being apparently of most promise in this regard. Magnetite and hematite ore-bodies are also known to occur in German East Africa, and in Nyasaland. The Congo also reports considerable ore tonnages. In the three divisions still to be mentioned Rhodesia, the Transvaal and Cape Colony the matter assumes a more definite and important aspect. Many types of ore exist here, and some of these may attain commercial importance. Mennell estimates for example, that there are several thousand million tons of lateritic ores in Rhodesia alone brown ores much like those of Cuba, frequently high in alumina and always high in silica but the most promising type is a hematite associated with pre- Cambrian rocks, like the Lake Superior and Brazilian deposits. Mennell considers this last type of deposit to be, in Rhodesia, of high possible economic importance. Similar deposits occur in corresponding rocks in the Transvaal, but are not supposed there to be workable. Contact deposits of later age are, however, promising at various localities in the Transvaal. The entire matter as to the possible economic importance of these east African deposits must be left unsettled until they are examined by some one acquainted with iron mining elsewhere. As it stands now the data are only sufficient to justify the sug- gestion that here is very possibly one of the large ore fields of the world. But careful examination may show that this is an error. AUSTRALIA Though considerable information is available concerning the iron-ore deposits of Australia and New Zealand, much of it is curiously indefinite and amateurish in its form of statement, and apparently prepared by geologists who have had little or no acquaintance with iron-ore mining in developed districts. There is, therefore, a distinct lack of comparative value in most of the 22 338 IRON ORES data obtainable. The brief summary which follows must be read with this fact in mind. New Zealand contains the largest deposits at present known, those of Parapara, which are brown ores associated with and probably replacing, crystalline limestones of Ordovician age. Magnetite beach sands also occur, but with high titanium content. New South Wales ranks next in developed iron-ore tonnage, and because cf its coal resources, these ores attain considerable in- dustrial importance. Those of the Cadia field are in largest quantity. Tasmania contains one promising ore field, that of the Blythe River district, where hematites are associated with Ordovician rocks. Victoria, Queensland, West Australia and South Australia con- tain scattered deposits, some of fairly large size, but few so lo- cated as to give much promise of attaining industrial importance in the near future. Some of the largest, moreover, seem from the data available to be deposits of contact origin, and therefore open to suspicion as to their composition in depth. ANALYSES OF IRON ORES, AUSTRALIA AND NEW ZEALAND State Locality Metric gilica Phos-^ gulphur Water West Australia. Wilgi Mia 63.87 2.48 0.090 0.033 2.41 West Australia. Wilgi Mia 64.36 1.38 0.052 0.023 1.17 South Australia. South Australia. South Australia. South Australia. Queensland. New South Wales. New South Wales. New South Wales. New South Wales. New South Wales. New South Wales. Cutana Cutana Iron Monarch. . . Donnellys Mt. Leviathan Carcoar Carcoar Cadia Cadia Cadia Queahbeyan . . . 62.49 6.26 0.05 .... 1.16 49.73 18.47 0.03 0.15 5.08 66.08 1.19 0.02 1.23 58.68 0.67 1.03 0.05 11.22 64.72 2.51 0.065 4.93 0.13 58.03 56.49 61.38 59.65 11.28 57.96 12.04 9.22 0.154 0.015 5.78 0.064 0.04 7.35 0.051 0.099 1.53 0.17 0.028 n.d. 0.023 0.05 3.20 64.88 6.04 0.011 0.008 0.69 Tasmania. Tasmania. Blythe River.... Blythe River 68.7 68.6 New Zealand. Parapara 58. 19 New Zealand. Parapara 51.39 New Zealand. Parapara 56 . 75 1.6 1.8 3.09 9.56 4.90 0.04 0.09 tr. tr. n.d. n.d. 0.16 0.13 9.64 0.17 0.11 11.84 0.18 0.40 9.65 PART IV. EXTENT AND CONTROL OF IRON-ORE 1 RESERVES. CHAPTER XXVI THE EXTENT OF AMERICAN IRON-ORE RESERVES The Credibility of Reserve Estimates. Before going on to a statement of the various estimates which have been made as to American and tributary iron-ore reserve tonnages, it may not be amiss to consider briefly the manner in which such estimates are made, and the extent to which they can be relied on. Though the matter is purely technical in its nature, it should be possible to explain its principles and results in non-technical language. There are three different sets of factors involved in making an estimate of the tonnage of ore contained in any given property or region. In each case, whether the area and tonnage considered be large or small, we start from a basis of engineering facts, interpret and utilize these facts by means of geologic deductions, and finally correct our tonnage estimates in the light of industrial conditions. An example may make this clearer, and since the principles involved do not vary with the size of the area, we may assume that a single small property is under consideration. In attempting to determine its ore tonnage, there are to be considered first of all the facts that workable ore is shown in some or all of a number of natural exposures, artificial openings, test-pits, or drill-holes. These facts as to occurrence and thickness must be interpreted geologically, for the isolated records mean little un- less some idea can be secured as to the form and geological re- lations of the ore-body. Finally, consideration must be given to the effects of ore grade, working conditions, transportation, etc. It will be seen that the industrial factors last mentioned are really the ones on which differences of opinion can most readily exist. Two men of approximately equal experience and train- ing can hardly differ as to the records of the drill-holes; they may differ somewhat as to the geologic interpretation of those records; 339 340 IRON ORES but they may differ very widely in their ideas as to how much of the ore can be considered available under existing industrial conditions. When the problem is rendered more complicated by attempting to determine what ore will be available under future industrial conditions, the differences in opinion are apt to be still wider. This is an important fact, and must be borne in mind when comparisons are made between tonnage estimates by different authorities. When these estimates differ widely, examination will usually show that there is substantial agreement as to the facts of the case, and that the differences in the final statement are due chiefly to the point at which the line between available and non-available ore has been drawn. In considering the vari- ous estimates which have been made as to the total iron-ore reserves of the United States, which will next be taken up, this phase of the matter must be kept in mind steadily. It is difficult enough to arrive at a definite comparative val- uation for two different ores, to be used in the same region and in a given year when all trade conditions are known. But the problem becomes immensely more difficult when the compari- son is extended to cover a large number of ores, to be used at many different points and during a long series of years under unknown and variable trade conditions. If an investigator of this problem wished to give an air of mathematical precision to his results, he would have to take into consideration differences in grade, character and amount of im- purities, mining costs and conditions, concentration results, nearness to furnaces and to coke, labor costs and pig-iron prices. These factors would be complicated by variations in general business conditions, by the competition of new ore supplies, and perhaps by changes in tariffs. It will be seen that to attempt a rigidly mathematical treat- ment of the problem would be ridiculous, for the unknown vari- ables would make the apparently precise results merely fallacious. In this, as in other problems involving future conditions, it will be best to put aside all attempt to secure misleading precision, and to be content with working out the problem in a manner which will yield serviceable and reasonably accurate results. For most of the purposes of life it is better to be approximately right than precisely wrong. EXTENT OF AMERICAN IRON-ORE RESERVES 341 At the outset the reader will do well to understand that esti- mates of our total iron-ore reserves, and anxiety over their probable duration, are matters of very recent date. England has suffered periodically, for almost a century, from attacks of panic over the impending exhaustion of her coal supply; and the duration of our own supply of Pennsylvania anthracite has been a subject of serious discussion for some time. But the fear of exhausted iron ores does not date back as much as ten years, and its commencement in this country was due to the publication of a foreign report whose absurdity should have been enough of itself to render it harmless. The Tornebohm Estimate of 1905. In 1905, in response to a request from the Swedish Parliament, an eminent Swedish geologist, Professor A. E. Tornebohm, prepared a report on the iron-ore resources of the world. In its original form, the report attracted little notice in the United States, even among those directly interested in the iron industry. Early in 1906, however, a summarized translation of the report was forwarded home by the American consul at Paris, and the wide circulation which is given to consular reports in the United States resulted in drawing considerable attention to the matter in both the daily and the technical press. The character of the Tornebohm report, in the form in which it reached the American public, is fairly indicated by the following extracts : " It will surprise a great many to learn that we are likely to run short in iron inside of a single century, if we keep up the present rate of con- sumption. As a matter of fact we are more likely to increase the con- sumption than we are to reduce it. The world has only 10,000,000,000 tons of iron ore available. Of these Germany has twice as many tons as the United States. Russia and France each have 400,000,000 tons more than this country. * * * Assuming therefore as true the claim of geological science that the extent of workable iron-ore beds is known to within a margin of possible error not exceeding 5 percent, the Swed- ish report, which is based upon the most authoritative information, has naturally attracted world-wide attention. * * * The present output of ore and the amount of ore actually consumed by each is as follows, in tons: 342 IRON ORES Country United States Great Britain Germany Spain Russia and Finland France Sweden Austria-Hungary. . . Other countries .... Total . . Workable Annual Annual deposits output consumption ,100,000,000 35,000,000 35,000,000 ,000,000,000 14,000,000 20,000,000 200,000,000 21,000,000 24,000,000 500,000,000 8,000,000 1,000,000 ,500,000,000 4,000,000 6,00,0000 ,500,000,000 6,000,000 8,000,000 ,000,000,000 4,000,000 1,000,000 ,200,000,000 3,000,000 4,000,000 ,200,000,000 5,000,000 1,000,000 10,000,000,000 100,000,000 100,000,000 "While it is probable that the foregoing statement does not take into adequate account the undeveloped ore deposits of Utah and Alabama, its teachings are nevertheless obvious and impressive. Of the world's workable iron-ore deposits, as at present known, the United States possesses only about one-ninth, and at the present rate of consumption the entire supply will be exhausted within the present century." Of the eleven hundred million tons credited by Tornebohm to the United States, an even ten hundred million were to come from the Lake regions; sixty million from Alabama, with some evident doubt by the Swedish geologist as to what these Alabama ores really were; and the remaining forty million were widely distributed. If properly understood, as a report intended to assure the Swedish people that they controlled a very respectable per- centage of the world's supply of high-grade ores, the Tornebohm report was really effective. From any other point of view it should not have been taken seriously. Its publication by our Consular Bureau, however, gave it a semi-official aspect; and in its summarized and annotated form its newspaper career was amazing. At different times in 1905 and 1906, the Tornebohm report was discussed in print by various authorities. Among others, Hadfield, Shaler, Birkinbine and Leith mentioned it or treated phases of the same subject, while most of the technical journals commented on it editorially. Practically all these commenta- tors deprecated the low estimates of the Swedish geologist, but no new data for revised estimates were offered as substitutes. EXTENT OF AMERICAN IRON-ORE RESERVES 343 The Eckel Estimate of 1907. The following extracts will serve to fix a stage in the development of ideas regarding the iron-ore reserves of the United States : "The Lake Superior district, at present the leading American producer, has been explored more thoroughly than any other ore field in the United States, but estimates as to total tonnage range within rather wide limits. At present the totals commonly quoted vary from 1,500,000,000 to 2,000,000,000 tons. "In the Rocky Mountain and Pacific States a few large iron-ore deposits are known to exist, and many others are reported, but any attempt at an estimate of total tonnage would be, with only our present knowledge of the subject, merely the wildest sort of guessing. "A more promising field lies in the older eastern States. It is prob- able that careful exploratory work will develop magnetic iron ores in New York, New Jersey and Pennsylvania in quantities far in excess of anything usually considered possible in those states. Here also close estimates are impossible. "With regard to the southern iron ores the case is very different. Here the work which the Geological Survey has carried on during the last three years, which was planned so as to obtain data on the quantity of ore available, gives a fairly secure basis for tonnage estimates. It is safe, therefore, to submit the following figures as representing minimum values for the workable iron-ore reserves above the 1000-foot level in certain southern States, with the caution that further exploratory work in the South will probably greatly increase rather than decrease these estimates : Red ore, tons Brown ore, tons Alabama 1,000,000,000 75,000,000 Georgia 200,000,000 125,000,000 Tennessee 600,000,000 225,000,000 Virginia 50,000,000 300,000,000 Total 1,850,000,000 725,000,000 This gives a total estimated reserve, for the red and brown ores of the four states noted, of over 2,500,000,000 tons. If to this we add the ores occurring at deeper levels in the states named, and also the red and brown ores of Maryland, West Virginia and Kentucky, and the mag- netic ores of the other southern States, it is probably fair to assume that the total southern ore reserves will amount to very nearly 10,000,000,000 tons. * * * Much of this ore is, of course, unworkable at the present day, but all of it should be counted on in any estimate of total ore reserves. * * * It may be further added that the estimates as to red-ore tonnage are probably much more accurate than those relative to brown ores. 344 IRON ORES "To sum up the matter, in place of the 1,100,000,000 tons credited by the Swedish geologist, it is probably safe to say that the United States has from ten to twenty times that reserve of iron ore." These large totals were intended to include not only the ore of strictly available present-day grade^ but the ores which could be reasonably expected to come into use within the next thirty or forty years, for the question under consideration at the moment was the possible ultimate exhaustion of the American iron supply. No attempt, however, was made to include the very large low- grade reserves either in the Lake regions or in the South, for the writer felt that the use of such ores would be put off to very remote periods, owing to the increasing importations of ore. This opinion he still retains, as will be seen later. The Hayes Estimate of 1908. No one connected with the American iron industry was really . worrying over a possible shortage in our ore supply, and the matter might perhaps have been dropped at this stage if it had not become entangled with the conservation problem which about that time was being con- sidered by a strenuous executive, a puzzled Congress, and a series of excited organizations ranging from sewing circles to lumber dealers. Everyone who remembers that remarkable episode will recall with pained surprise the unanimity with which we all considered gloomily, in turn, the impending scarcity of the food supply and the possible utilizations of sawdust; the decreas- ing number of western farmers and the increase in southern boll-weevils; the substitution of steel for timber, because wood was a luxury and then later the substitution of concrete for steel because steel would be reserved for coinage. Looking back at it, the pity of it is that all of this national worry was so futile; for how many of the good resolutions made then have been kept? We have, it is true, a more efficient forest service, and a tangible forestry plan. Also, it might be added, the pension list has been kept from decreasing, the Alaska coal is yet intact for future generations, and congressional mileage is still jealously conserved. But with these striking exceptions, the net gain has been very small in proportion to the enthusiasm developed. One of the good features of the conservation movement was the establishment of a commission to inventory the more im- portant raw materials of the United States. The examination of the iron-ore question was assigned to C. W. Hayes, then Chief EXTENT OF AMERICAN IRON-ORE RESERVES 345 ESTIMATES OF IRON-ORE SUPPLIES OF THE UNITED STATES (C. W. HAYES) Commercial districts (States) Magnetite ores Non-titaniferous Titaniferous Available Not available Available Not available 1. Northeastern Long tons 160,000,000 a 12,500,000 Long tons 111,500,000 23,000,000 4,500,000,000 Long tons 90,000,000 Long tons 100,000,000 2 Southeastern 3. Lake Superior 25,000,000 4. Mississippi Valley . 5. Rocky Mountain . . 6. Pacific Slope ... a 51,485,000 a 68,950,000 a 115,440,000 11,800,000 1,500,000 2,000,000 Total 292,935,000 4,761,740,000 90,000,000 128,500,000 a Includes some hematite. Commercial districts (States) Hematite ores Specular and red Clinton Available Not available Available Not available 1. Northeastern.. . 2. Southeastern. . . 3. Lake Superior. . 4. Mississippi Val- ley. 5. Rocky Moun- tain. 6. Pacific Slope . . . Total Long tons 2,000,000 8,000,000 3,500,000,000 15,000,000 4,275,000 Long tons 2,000,000 53,000,000 67,475,000,000 10,000,000 2,100,000 10,000,000 Long tons 35,000,000 463,540,000 10,000,000 Long tons 620,000,000 970,500,000 30,000,000 3,529,275,000 67,552,100,000 508,540,000 1,620,500,000 Commercial districts (States) Brown ores Carbonate ores Available Not available Available Not available 1. Northeastern Long tons 11,000,000 54,400,000 Long tons 13,500,000 168,000,000 Long tons Long tons 248,000,000 62,000,000 2. Southeastern 3. Lake Superior 4. Mississippi Valley . . 5. Rocky Mountain . . . 6. Pacific Slope .... 300,000,000 2,000,000 560,000,000 1,625,000 105,000 Total 367,400,000 743,230,000 310,000,000 Geologist of the United States Geological Survey; and the result was the publication of a most important and detailed estimate 346 IRON ORES of our total iron reserves. Dr. Hayes had a wide acquaintance with American iron ores; and sufficient time and money were available to do the work properly. His report must stand as the basis for all future discussions of this subject. 1. Vermont, Massachusetts, Connecticut, New York, New Jersey, Penn- sylvania, Maryland, Ohio. 2. Virginia, West Virginia, eastern Kentucky, North Carolina, South Carolina, Georgia, Alabama, east Tennessee. 3. Michigan, Minnesota, Wisconsin. 4. Northwest Alabama, west Tennessee, west Kentucky, Iowa, Missouri, Arkansas, east Texas. 5. Montana, Idaho, Wyoming, Colorado, Utah, Nevada, New Mexico, west Texas, Arizona. 6. Washington, Oregon, California.. Hayes' final figures, by districts, are shown by the table below. Total reserves, in tons Districts Available Not available Northeastern 298,000,000 1,095,000,000 Southeastern 538,440,000 1,276,500,000 Lake Superior 3,510,000,000 72,030,000,000 Mississippi Valley 315,000,000 570,000,000 Rocky Mountain 57,760,000 120,665,000 Pacific Slope 68,950,000 23,905,000 Total, United States 4,788,150,000 75,116,070,000 In order to obtain any adequate idea of the valuable local data utilized in the Hayes estimate which is summarized above, reference must be made to the original report. At present it need only be said that little criticism can be directed against the details of the estimate, or against the comprehensiveness of the plan on which it was based. The point which does require attention is the distinction which Hayes made between " avail- able" and " non-available " ore reserve. In the writer's opinion, the defect of the Hayes estimate arises from the fact that this distinction was not carried out on the same basis in the different districts. This matter will be taken up in more detail later, but at present it need only be said that Hayes' practice in this regard tends to increase his estimates of Lake ores and to decrease his estimates of southern ores. His "non-available" ores in the South include large tonnages which would be merchantable to-day; his " non-available " ores in the Lake region include EXTENT OF AMERICAN IRON-ORE RESERVES 347 rocks of a type which will probably never be used in the iron furnace. The Butler-Birkinbine Estimate of 1909. During 1909, but after the publication of the Hayes estimate which has just been discussed, a very interesting estimate appeared in a brief filed before the Senate Finance Committee by Mr. Joseph G. Butler, Jr. The brief covered the entire question of the iron-ore situation in the United States, and brings up a number of considerations overlooked in previous estimates. In this report Mr. Butler was assisted by Mr. John Birkinbine. This estimate gives, as the total tonnage of iron ores of present commercial standard available in the immediate future, the fol- lowing figures for the various districts: Area Tons Lake Superior region 1,618,000,000 Southern States 1,814,940,000 New York 750,000,000 New Jersey 135,000,000 Pennsylvania 45,000,000 Rocky Mountain region 100,000,000 Total available, United States 4,462,940,000 On comparison of the Butler-Birkinbine and the Hayes esti- mates, it will be seen that they agree closely in their figures for total available ore, the two totals being 4,462,940,000 and 4,788,- 150,000 tons respectively. In the distribution of this total'among the various districts, however, they differ widely. The Hayes estimate for the Lake region is cut in half, but his figures for the South and for the northeastern States are more than doubled. These changes seem to me to be entirely in line with the facts of the case, so that in this respect the Butler-Birkinbine estimate may be considered to be a distinct advance upon all previous figures. Revised Estimates, 1912. In the estimate now to be pre- sented, I have taken advantage of all the earlier work hereto- fore quoted, and have revised and re-arranged the results so as to accord with my personal experience and with recent work in various areas by others. The result is presented with some confidence, as representing at least a fair statement of the case, in the light of present knowledge. 348 IRON ORES In taking up the Lake Superior district we are struck at first by the wide variation between the estimates of various reputable authorities; but on considering their statements more carefully it will be found that the differences are more apparent than real, and that they are really differences of definition rather than of fact. The four important recent estimates give totals for the Lake region as follows : Authority Tons Hayes 3,510,000,000 Van Hise and Leith 1,905,000,000 Butler-Birkinbine 1,618,000,000 Minnesota-Michigan Tax Commission 1,584,000,000 On examining the data on which estimates must be based, it appears that the Minnesota Tax Commission assesses the Mesaba and Vermillion ranges in that State as containing practically fourteen hundred million tons; and that the very able engineer who acted for the Michigan Tax Commissioners estimated the assessable tonnage on the Michigan ranges at practically two hundred million tons. There is, to start with, a universally accepted total amount of sixteen hundred million tons. To this must be added the tonnage in certain ranges not con- sidered in the above assessments; the possibilities of new tonnage in undeveloped territory; and the possibility that the assessed tonnages were themselves actually too low. With regard to the first point, tonnages must be added for Cuyuna range in Minnesota, the Baraboo and Clinton ores of Wisconsin; and the Wisconsin portions of the Menominee and Gogebic ranges. It is probable that no one would think of crediting this group with a total of less than one hundred million tons, and most estimates would probably run considerably higher. The definite Lake aggregate so far is therefore seventeen hundred million tons. With regard to the two remaining features which will add to this total there is obviously large room for individual opinion. Finlay estimates that in addition to the assessed tonnages on the Michigan ranges, there are in all probability over one hundred and fifty million tons which these ranges will, in the aggregate, produce. In Minnesota we have to deal with the certainty that a system which taxes ore in the ground is not calculated to en- EXTENT OF AMERICAN IRON-ORE RESERVES 349 courage exploration or development far in advance of actual requirements. And there is, of course, the further possibility of new discoveries in territory now unprospected. Taking all of these facts into consideration, it is difficult to place the tonnage of strictly available ore of present-day com- mercial grade in the Lake region at less than two-thousand million tons; and it is probable that twenty-five hundred million tons would really be nearer to the truth. But for present purposes the lower figure can be accepted with absolute safety. The available data regarding the ore reserves of the north- eastern States are still very poor, so that there is room for wide difference of opinion here as to total tonnages. Newland has given detailed estimates of the Clinton ores of New York; but concerning the important magnetite deposits of the Adirondacks, the highlands of New York and New Jersey, and southeastern Pennsylvania, we have really very little reliable information. Descriptions of the geology of the various districts exist in pro- fusion, but in most of these no attempt whatever has been made to give any consideration to the quantitative side of the matter. Under these circumstances Hayes' estimates for the northeastern States may be accepted tentatively as the best available at the moment, though it is hoped that better data will be in hand in the near future. The Hayes figures for the available ores of this region are ap- proximately three hundred million tons. This is certainly close to the minimum tonnage available; and at the present moment, until closer work has been done in some of the districts, we might assume that the maximum tonnage which we might expect would be perhaps six hundred million tons. For the Rocky Mountain and Pacific States Hayes figures one hundred and twenty-six million tons of available ore. As our information stands now, this is almost certainly a heavy under- estimate, for Utah alone would show a far heavier tonnage. With regard to the other western States data are scanty, and the range of estimate in this district must be wider than in other parts of the United States. For our present purposes it will not seriously affect the accuracy of the final results if we put the western States down for a minimum of three hundred million tons and a possible maximum of seven hundred million. In making up his figures for the southeastern and Mississippi 350 IRON ORES Valley districts, here 'considered together as the southern district, Hayes certainly drew the line between available and non-available ores in a different way from that employed in his Lake estimates. The result is that the two sets of figures are not even remotely comparable. In order to put them on the same footing, it would be necessary to go over the data for each mining region in detail. Space is not available for these computations in the present .chapter, but the final results may be presented briefly. In the Hayes estimates, three of the southern districts suffered more severely than the others, being credited with far less than their minimum possible tonnages. These are (1) the Birmingham red-ore region, (2) the brown-ore area of northeast Texas and (3) the extensive brown-ore region reaching from northwest Alabama through middle and west Tennessee into Kentucky. In each case there were obvious reasons for the under-estimates. At the time Hayes prepared his report Texan ores seemed likely to be out of the market for many years to come; but recent freight arrangements will put them into eastern ports on a parity with Cuban ores of equal grade. In the Birmingham district there has been considerable recent development which enables us to count on far heavier tonnages. Taking all of these facts into consideration, the figures given in the table below are probably justified in the light of existing knowledge as to conditions in the various districts. They are subject to change as more details can be secured. It is worthy of note, however, that such changes will almost inevitably be in the direction of raising the total minimum tonnage here counted on as available. AMERICAN RESERVE TONNAGES District Range of estimate Lake Superior 2,000,000,000 2,500,000,000 Northeastern 300,000,000 600,000,000 Western 300,000,000 700,000,000 Birmingham 1,500,000,000 2,000,000,000 Texas 600,000,000 1,000,000,000 Other Southern 500,000,000 750,000,000 Total United States 5,200,000,000 7,550,000,000 The above estimates include only ores of present-day com- mercial grade such ores as are now used during years of business EXTENT OF AMERICAN IRON-ORE RESERVES 351 prosperity. They do not include the enormous reserves of very low-grade red ores in the South, or the low-grade siliceous ores of the Lake region. The minimum figures, in each case, represent the lowest esti- mates which anyone, writing to-day, could possibly credit to the various districts. The higher figures represent the tonnages which may fairly be hoped for, and, are in my opinion, the closer to the truth. Tributary Reserves. It will be seen from the preceding dis- cussion, that, to adopt an average figure, we can count on six and a half thousand million tons of American iron ore, before being compelled to accept a very startling decrease in grade. But the geographic distribution of this tonnage is such that, if there were no outside supplies, we would have to face very dear pig iron within comparatively few years. Fortunately the free importation of foreign ores will help out in this direction, though it will be seen later that the effect of lowering ore grades will be noticeable even with this aid. In speaking of tributary ore reserves it is hardly fair to include the Spanish, Scandinavian and other Old World ores, for though some of them are imported heavily even now, they will ulti- mately be bought in competition with European furnaces which will need them worse than ours. The reserve tonnage which is, however, properly tributary to American furnaces, includes the ore deposits of Canada, Newfoundland, the West Indies, Ven- ezuela, Brazil, and possibly Mexico. Other large ore reserves will almost certainly be uncovered in the Caribbean region, and possibly elsewhere to the south of us, but the reserves already known are sufficiently large to give a long lease of life to the American steel industry. Some idea of the extent of the tonnage now available may be gained by considering that Spencer estimates that the Cuban brown-ore fields will yield three thousand million tons; and this is probably a very conservative statement of the matter. Other islands of the West Indies are known to carry similar ores, while bordering portions of the mainland show deposits of related type. The Brazilian iron-ore ranges are of the same order of magnitude as our own Lake ranges, while their ore grade is notably higher than the average now obtainable from the Lake. The ores of Canada do not give promise of being so extensive as those al- 352 IRON ORES ready mentioned, but the reserve tonnage of Newfoundland is still heavier. Taking all of the known tributary ore fields into account, and making a very small additional allowance for extensions, it is probably well within limits to assume that there are six or seven thousand million tons of merchantable ore, in countries adjacent to the United States, which are more likely to be used in Ameri- can furnaces than near the mines. The United States has been an importer of iron ore for many years, but until 1879 the importations never amounted to over forty or fifty thousand tons annually. Since that date they have increased, though not steadily; but with the comparatively recent development of the ore fields on the north coast of Cuba the increase is becoming more marked. In 1910, for example, the importations amounted to nearly two million six hundred thousand tons, of which somewhat over half came from Cuba. As the grade of our Lake shipments gradually decreases, the imported ores will naturally become of increasing importance to the American iron industry. Their importation and use will tend to keep the cost of manufacturing pig iron from rising as rapidly as it otherwise would. Imported ores will not be able to stop the trend toward higher manufacturing costs, but they will re- tard the process somewhat. There are no conceivable circum- stances under which American furnaces will be able to make pig iron as cheaply as during the years of 1893-1897. CHAPTER XXVII THE PROBABLE DURATION OF AMERICAN RESERVES Accepting the estimates of the present known ore reserves of the United States, given in the last chapter, as a basis for further discussion, it will be of interest to determine how these reserves compare with the draft that is being made on them now, and with the requirements which they are likely to have to meet within the next few decades. The Draft on Our Reserves. No detailed and accurate figures are available as to American iron-ore production prior to 1889, so that it is not possible to state directly the rate at which our iron ores have been drawn on in the past. But this defect can be remedied by using the data as to pig-iron production, which have been recorded steadily for sixty years, while earlier scattered records enable us to carry the figures back to 1800. The following table has been prepared by me for use in this connection. The figures prior to 1854 are estimates made from scattered data. For the later years, the data are those collected annually by the American Iron and Steel Association, and may be accepted as final. PRODUCTION OF PIG IRON, BY DECADES, 1800-1910 Decades Long tons 1801-1810 500,000 1811-1820 350,000 1821-1830 1,000,000 1831-1840 2,300,000 1841-1850 4,945,000 1851-1860 6,818,737 1861-1870 11,366,963 1871-1880 24,055,278 1881-1890 56,902,041 1891-1900 98,124,754 1901-1910 211,321,934 On inspection of the preceding table it will be seen that the American production of pig iron has, on the average, somewhat 23 353 54 IRON ORES more than doubled in each decade. Of course there will be a point at which this rate of increase will be lowered, but at present YEARS FIG. 63. we must accept the possibility that it will continue for at least a few decades more. What this means in the way of iron-ore requirements can be estimated closely enough for our present PROBABLE DURATION OF AMERICAN RESERVES 355 purpose by assuming that at present a ton of pig iron represents slightly over 2 tons of iron ore; and that the ratio of ore to pig is rising each year. Unless iron production slackens, it will therefore be necessary in the decade 1911-1920 to use about nine hundred million tons of ore; while the next decade will require close to two thousand million tons. If this draft on our ore resources, great though it seems, were distributed evenly the results would not be industrially serious for several decades more. But since the bulk of the ore is at present drawn from one district, there is evidently some reason to give consideration to the matter. The greatest strain, of course, will fall on the Lake Superior district, which now produces about four-fifths of all the iron ore used in the United States. If this proportion of the total out- put were to be maintained, the Lake ranges would have to ship about seven hundred million tons during the decade 1911-1920; and over sixteen hundred million tons during the ensuing ten years. That would make the total Lake shipments, from now to the year 1930, amount to over twenty-three hundred million tons; and as the total Lake reserves of present commercial grade have already been estimated at between two thousand and twenty-five hundred million tons, it will be seen that at this rate the present Lake reserves would not last much past the year 1930. Fortunately, though this calculation is precise enough arithmetically, there are other factors which will put off the exhaustion of the Lake reserves to a time further in the future. APPARENT ANNUAL ORE CONSUMPTION In an earlier chapter the tonnage of ore nominally available for consumption each year was calculated by adding together the domestic production and imports, and subtracting exports. The results, given in a table on page 186, are of some interest, particularly for comparison with similar statistics for European countries, calculated in the same manner by the British Board of Trade in its annual reports on the mining industry. For our present purposes, however, it is necessary to arrive at a somewhat closer approximation to the ore tonnage actually smelted in the United States during each year. For a number of years past an estimate of this sort has been published by the 356 IRON ORES United States Geological Survey, in its annual volume on mineral statistics, and with the corrections noted later this estimate will serve for use now. The official estimate may be expressed in a formula as follows : A = (D + I + Z + SM' + SI/) - (E + SM + SL) In which A is the apparent annual ore consumption, D is the tonnage of ore mined in the United States in any given year, E and I respectively the exports and imports of ore for the same year, SM the stocks of ore held at mines at close of the year in question, and SM' the stocks held at mines at the close of the pre- vious year. SL is the stock held at Lower Lake ports at close of navigation of the year in question, and SL' stocks similarly [held the year before. Z is the tonnage of zinc residuum used at certain eastern iron furnaces. With this explanation the reader is in a position to check the figures given below, and to continue the table for later years if desirable. The table which follows gives the basal data and the results of their use in the foregoing formula, for the years 1889 to 1912 inclusive. All the figures are taken from the Geological Survey publication already mentioned, with the exception of the 1911 and 1912 estimates. These have been re-calculated by the present writer, in order to bring them into conformity with the rest of the series. This change was necessary, because for 1911 and 1912 the official statistician introduced an entirely new basis of calculation, so that the official estimates for these years are in no way comparable with those of the earlier years. The reader will understand, of course, that the results obtained by this method of calculation are not precise, for certain factors of more or less importance are omitted from the formula. There are no allowances, for example, for scrap, blue billy and other occasional ingredients of the charge, and no data available for estimating ore held in stock at furnaces over the close of the year. But with all its defects, the results have a certain compara- tive value, and the final average is doubtless close to the truth. It might be noted that during normal years the actual ore con- sumption would always be somewhat above that shown by the table, since most of the omitted factors are on the side of addition to the supply. PROBABLE DURATION OF AMERICAN RESERVES 357 APPARENT ANNUAL ORE CONSUMPTION, 1889-1912 Year Domestic iron ore produced a Stocks of ore at mines Stocks of ore at Lower Lake ports Dec. 1 Zinc residuum Imports Exports Apparent consump- tion 1889 14.518,041 2,256,973 2,607,106 43,648 853,573 14,366,562 1890 16,036,043 2,000,000 3,893,487 48,560 1,246,830 16,302,025 1891 14,591,178 2,450,279 3,508,489 38,228 912,864 15,476,989 1892 16,296,666 2,911,740 4,149,451 31,859 806,585 16,032,687 1893 11,587,629 3,526,161 4,070,710 37,512 526,951 11,616,412 1894 11,879,679 3,236,198 4,834,247 26,981 167,307 11,600,393 1895 15,957,614 2,976,494 4,415,712 43,249 524,153 17,203,255 1896 16,005,449 3,405,302 4,954,984 44,953 682,806 15,765,128 1897 17,518,046 3,098,287 5,923,755 33,924 489,970 17,380,184 1898 19,433,716 2,846,457 5,136,407 48,502 187,208 20,708,604 1899 24,683,173 2,320,278 5,530,283 65,010 674,082 40,665 25,513,903 1900 27,553,161 3,709,950 5,904,670 87,110 897,831 51,460 26,722,583 1901 28,887,479 4,239,823 5,859,663 52,311 966,950 64,703 29,357,171 1902 35,554,135 3,834,717 7,074,254 65,246 1,165,470 88,445 35,886,921 1903 35,019,308 6,297,888 6,371,085 73,264 980,440 80,611 34,232,399 1904 27,644,330 4,666,931 5,763,399 68,189 487,613 213,865 30,224,910 1905 42,526,133 3,812,281 6,438,967 90,289 845,651 208,017 43,433,138 1906 47,749,728 3,281,789 6,252,455 93,461 1,060,390 265,240 49,355,343 1907 51,720,619 3,033,110 7,385,728 93,413 1,229,168 278,608 51,879,998 1908 35,983,336 6,065,397 8,441,533 110,225 776,898 309,099 32,473,268 1909 51,294,271 6,135,271 8,965,789 141,264 1,694,957 455,934 52,080,428 1910 57,014,906 9,422,285 9,426,881 137,173 2,591,031 748,875 55,246,129 1911 43,876,552 12,206,390 9,131,664 109,296 1,811,732 768,386 42,540,306 1912 55,150,147 10,241,287 9,497,168 104,670 2,104,576 1,195,742 57,763,250 APPARENT AVERAGE ORE GRADE The table which has just been presented and discussed is of immediate service in attempting to determine the average grade of ore used in this country, and the changes which have taken place in this average. For this purpose I have prepared an additional set of calcula- tions, embodied in the table following. Here, using the apparent annual ore consumption as one factor, it has been compared annu- ally with the pig-iron production of the same year. At first glance the data presented in the table immediately pre- ceding may seem too confused, as to trend, to give indications of much value for our present purpose, though even casual inspec- tion will show that the average for the past decade must fall con- siderably below the average for the decade preceding. The conditions are brought out more clearly, as usual, when the data are put in diagrammatic form, as in Fig. 64. The form of the curve shown in this diagram should be studied carefully, 358 IRON ORES APPARENT AVERAGE ORE GRADE, 1889-1912 Apparent ore Pig-iron output, Apparent average consumption, tons tons ore grade 14,366,562 7,603,642 52.91% 16,302,025 9,202,703 56.50 15,476,989 8,279,870 53.48 16,032,687 9,157,000 57.14 11,616,412 7,124,502 61.35 11,600,393 6,657,388 57.47 17,203,255 9,446,308 54.95 15,765,128 8,623,127 54.64 17,380,184 9,652,680 55.56 20,708,604 11,773,934 56.82 25,513,903 13,620,703 53.25 26,722,583 13,789,242 51.55 29,357,171 15,878,354 54.35 35,886,921 17,821,307 49.75 34,232,399 18,009,252 52.63 30,224,910 16,497,033 54.64 43,433,138 22,992,380 53.19 49,355,343 25,307,191 51.28 51,879,998 25,781,361 49.69 32,473,268 15,936,018 49.07 52,080,428 25,795,471 49.53 55,246,129 27,303,567 49.42 42,540,306 23,649,547 55.59 57,763,250 29,728,937 51.46 Year 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 bearing in mind at the same time the general condition of the iron industry in the different years covered by the figure. When this is done, it will be seen that the complex of figures in the table results from the action of several quite regular and distinct tendencies, which sometimes oppose each other and sometimes are cumulative in their effects. Factors Determining Average Grade. The fact is that the question of changing grade is not simple, but complex, and there- fore the curve does not fall regularly with the years. Its form is, on the contrary, determined by a number of factors, of t which the more important are : 1. The general condition of the iron industry. During hard times, when iron production is cut down to the minimum, ore prices are correspondingly low, and the grade of ore used is subject PROBABLE DURATION OF AMERICAN RESERVES 359 to close scrutiny. During a period of low iron production, there- fore, the average grade of ore used will be high. When pros- perity is at hand, however, ore prices are high, and the furnaces will take almost anything that can reasonably be called ore. In a boom period, therefore, the average grade of ore will fall. 2. The discovery of new sources of ore supply. When a new high-grade ore district is discovered the tendency is for 65 J60 55 u.50 o 45 \ V A 01 o cj o cr> YEARS FIG. 64. Changes in average ore grade, 1889-1912. the average ore grade to rise sharply as the new product enters the market, and then to fall gradually but regularly when the new field begins to show signs of exhaustion. During the period covered by this table and diagram only one such important dis- covery was made, and the first heavy shipments from the Mesaba range carry the average for the year 1893 to the highest point on record. 360 IRON ORES 3. General exhaustion of ore supplies. This factor, though overshadowed at times by the two preceding, is the one which must be the final cause of any regular decrease in average grade of ores. It would be important, even if the pig-iron production were constant, but it assumes much greater importance when an annually increasing demand for ore has to be allowed for. The effect of these three main factors can be traced on the diagram with some distinctness. Our highest average was reached in 1893, when a fresh supply of high-grade ore reached the market during a period of low iron production. In this case the two factors had a cumulative effect. If the Mesaba had made its first heavy shipments during a boom year it would have tended to neutralize the temporary lowering of grade due to the boom. When allowance is made for the varying condition of the iron trade in the different years, it must be said that the diagram seems to show a fairly regular decrease in ore grades for most of the period covered by it. From the high point of 1893, the progress downward was practically steady until 1911. That year, for the first time, showed a rise in grade more than could have been anticipated. It remains to be seen, however, whether or not this interruption to the general course of events was more than temporary. The Future Course of Ore Grades. So far as our domestic supplies of iron ore are concerned, the factors which bear upon this problem are sufficiently well defined as to admit of little error in outlining the probable future course of ore grades. With regard to imported ores the case is different, for here we are dealing apparently with an early stage in a movement whose final limits can not well be set. In discussing the course which average ore grades will probably take in the future, it is therefore advisable to consider first the conditions as to domestic supply, and then make some attempt to outline the probabilities as regards imported ores. The Lake Superior ores, which now are the mainstay of the American iron industry, are showing a fairly steady decrease in grade from year to year. The falling off in the average grade of the Lake ores, over the past ten or fifteen years, has been about one-half of 1 percent a year. Part of this decrease is necessary while part is due to intentional use of lower grades during years of large shipment. Conservation of the total supply by such in- PROBABLE DURATION OF AMERICAN RESERVES 361 termixture of low-grade ores is commercialy possible only for such companies as operate on a large scale and with the expecta- tion of remaining in the business for many years to come. The small independent producer, in this as in other industries, is forced to operate uneconomically, and to ship his best ore each year, regardless of prices or business conditions. If the Lake Superior district were the sole source of supply, it could be assumed with fair safety that the average grade would decrease slowly but steadily for some years to come; that the heavy reserves of ore in the neighborhood of 45 percent iron would hold the average around that point for a long period of years; and that between 40 and 35 percent the demand could be met almost indefinitely without causing further decrease in grade. If the Lake Superior average grade reached 45 percent, therefore, its further downward progress would be very slow; and at 40 percent or somewhat less the decrease would be checked for a great number of years. Considering our southern supplies in similar detached fashion, it may be assumed that the average red ore today is little if any above 36 percent iron. Of course, being limey ores, these 36 percent red ores would rank commercially far above siliceous Lake ores of equal iron grade. Without attempting a precise comparison, it may perhaps be assumed for present purposes that they are technically equivalent to a Lake ore carrying 45 to 47 percent iron. The fact of interest, however, is that there are very heavy reserve tonnages of this 36 percent grade available, as compared with either the present southern rate of ore con- sumption, or with any future rate which seems probable. The decrease in average southern grade will therefore be very slow, and if in time the demand justifies the use of 30 percent ore, the reserves of this grade available are sufficient practically to stop any further decrease. A third source of supply that seems to be just on the verge of becoming a more important factor in the situation is the mag- netite reserve in the eastern and southern states. Apparently a slight further decrease in average grade of the Lake ore will open the way for marketing large tonnages of magnetic ores, in addition to the amounts which are now annually used in eastern furnaces. In the preceding sections the possibilities of the Lake hematites, 362 IRON ORES the Southern red ores and the Eastern magnetites have been sepa- rately considered. It is now possible, still disregarding the ques- tion of imported ores, to group these results and obtain some idea as to the domestic ore situation. The matter might be sum- marized by saying that if domestic ore supplies furnished all the ore used in American furnaces, grade would probably de- crease slowly until 45 percent is reached; that its further decrease to 40 percent would be very slow, owing to the large Lake ton- nages available at this level, to the relative slow fall in southern grade, and to the increasing use of magnetic ores. Below 40 percent the decrease would be so slow as to be hardly noticeable, until the domestic reserves were entirely exhausted. If the Lake district ever gets down to a 37 percent average, the South would be running on 30 percent ore; and the average for the country might be 35 percent or thereabouts. Heretofore our attention has been confined, for the sake of clearness, to the domestic ore situation; but this is obviously a very limited view of the case, though it has been the favorite of the conservation enthusiasts. As soon as the question of ore imports is considered, it will be seen that the entire status of the matter is changed. This is due to the fact that we have at our doors, in territory within the political and industrial sphere of the United States, ore reserves so immense as to dwarf our own do- mestic supplies. For our present purposes attention can be limited to the ore fields now developed along the north coast of Cuba, though as elsewhere stated there are good reasons for supposing that the ores now known constitute only a fraction of the total tonnage that will ultimately be found available in that general region. Newfoundland, Africa, Brazil and Europe are equally unnecessary in the present discussion. Even if we limit attention to the Cuban brown ores, we have to deal with a reserve aggregating at least three thousand million tons of ore grading after concentration from 50 to perhaps 55 percent iron. This can be mined, treated, and placed in the United States at a reasonable figure. The relation of these ores to the domestic supply can be summarized about as follows : At the present day steel plants, located along the coast anywhere between New York City and Brunswick, Ga., could use Cuban ores profitably as compared with any possible large-scale do- mestic supply. Assuming that there are no serious changes in PROBABLE DURATION OF AMERICAN RESERVES 363 tariffs, water rates, or rail rates, it seems probable that before the average Lake ore grade fell to 45 percent it would be profitable to run Pittsburgh furnaces on imported ore. This of course would involve a great decrease in the rate at which our domestic re- serves will be drawn on, and a corresponding decrease in the rate at which our average grade will fall. The Effect on Pig-iron Costs. As the grade of the average fur- nace ore gradually lowers, an increase in pig-iron costs necessarily accompanies the decreased grade. It is true that advances in technology or decreases in labor costs may operate in the contrary direction, but savings made in this way will be negligible compared with the other increases in expenses. Lowered grade of ore means not only an increased consumption of ore, fuel, and flux per ton of pig iron, but an increase in labor, re- lining and overhead costs (per ton of pig) due to decreased out- put per day. In addition, as the ore grade lowers, it is probable that the price of ore per unit of iron will rise; and the price of coke will show the same tendency. These latter factors cannot be valued closely, but the increases due to increased consumption of ore, fuel and flux are definite enough. Dealing with ores of the grades now under consideration, with Pittsburgh conditions as to grade of flux and coke, a decrease of 5 percent in the iron content of the ore involves the additional use of about 0.17 tons of ore, 0.12 tons of coke, and 0.36 tons of fluxing stone per ton of pig iron produced. Using the data last noted, and inserting approximate current prices for the three raw materials, it will be found that a drop in ore grade from 50 percent to 45 percent implies an increase in cost, for raw materials alone, of about $1.25 per ton of pig iron. When the other elements of cost, which also increase as ore grade lowers, are considered, the total increase becomes still more serious. In addition, it must be borne in mind that the cost of coke per ton, labor per day, and iron ore per unit, are likely to increase in the future. It is impossible to put a fair value on all of these elements of increased cost, but from those which are definitely known it seems safe to conclude that the cost of pig iron will increase at the rate of between twenty-five and fifty cents per ton, for each decrease of 1 percent in the average iron content of the ores to be used. In an earlier section of this chapter it has been shown that he 364 IRON ORES average grade has decreased almost one-half of 1 percent a year, during the past twenty years or so. If we could assume that this decrease in average grade would continue, it would be necessary to accept the fact that as a con- sequence of the fall in average ore grade, there would be a corre- spondingly steady and marked increase in the cost of making pig iron. But we can hardly go as far as this with safety, for there are two elements which will operate to interfere with a future de- crease in ore grades. First, there is the probability that in future larger tonnages of Lake ore will be subjected to drying or to con- centration prior to shipment, and this will tend to raise or to maintain the average grade of the shipments from the Lake Su- perior region. Second, and still more important, there will be the restraining influence of imported, Adirondack and Texan ores, which will have to be reckoned with from now on. CHAPTER XXVIII OWNERSHIP AND CONTROL OF AMERICAN RESERVES In preceding chapters the total extent and probable duration of the iron-ore reserves of the United States have been discussed in some detail. In this discussion the ore reserves were treated as purely physical bodies, and it was not necessary to refer in any way to their ownership. In the present chapter, however, these same ore reserves will be considered from an entirely different point of view, attention being concentrated upon this very matter of ownership. As will be noted later, there are two dis- tinct questions which can be raised concerning the type and ex- tent of ore-reserve ownership, and signs are not wanting that both of these questions will be brought up for decision in the near future. There is,, first of all, the question whether private ownership of ore reserves has progressed to such an extent that it affords monopolistic advantages. Second to this in point of time, but not of importance, is the broader question whether private ownership is to be allowed under any circumstances. We may cover up these questions in more politic and more accept- able language, but after all they amount to this. Stages in the Evolution of Opinion. It will be seen that both the questions involved are of immediate interest and of great importance, not only to the iron industry, but to all American industrial development. The formulation of a proper public policy for dealing with control of raw materials and other natural resources must be preceded by careful study of all the factors which are concerned in the matter. If we are to retain our present system of entirely private control of such matters, the present status must be justified by proving that it is both equi- table and efficient. For if it can be proven that private ownership leads to either injustice or inefficiency, some form of Government regulation will ultimately result. In either case the policy adopted, to be of permanent value, should be based upon the facts of the case, and not be accepted merely because it happens 365 366 IRON ORES to fit in with what seem to be the political or business require- ments of the hour. It is hardly necessary to recall that two very detailed investiga- tions of the American steel industry have recently been made, by a Congressional Committee and by the Bureau of Corporations respectively; or that a suit for the dissolution of the United States Steel Corporation is now pending in the courts. The fact that these various investigations and suits have been prosecuted during the past few years is of advantage to a certain extent, for they have furnished a large selection of views and data from which to quote. But on the other hand, it involves the very serious disadvantage that the writer, in suggesting that one view of a controverted question seems more reasonable than another, may be considered to have the fate of one particular corporation in mind, and to be arguing the case as a partisan instead of stating the facts and probabilities fairly. This difficulty may as wel be recognized frankly, and the only possible reply to such criticism is to offer the discussion itself in proof, and to submit that it does not bear evidence of having been treated in a partisan spirit. As a matter of fact it may be noted that much of the data here presented had been prepared for use,' in another form, some time before politicians discovered that iron ore could be made to yield publicity as well as pig iron. In an earlier section, where discussion of the ore reserves of the United States was taken up, it was pointed out that until 1906 or thereabouts no one was particularly interested one way or another in the total quantity, probable duration, or ownership of our iron-ore reserves. It was known, of course, that some individuals and corporations owned more ore, or better ore, than others; but it was commonly assumed that this was due either to good fortune or to the exercise of better business judgment. It seems fair to say that, up to then, no one considered that there was anything unjust, either to competitors or to the public, in these conditions. The possibility that any one individual or corporation had secured or could secure ownership of all the iron ores of the country, or of any dangerous proportion of those ores, was not even dreamed of. In 1906, however, an extremely pessimistic foreign estimate of America's ore resources reached the public eye, and became of interest in connection with an already well-formulated "Con- OWNERSHIP OF AMERICAN RESERVES 367 servation Movement." This resulted in a second stage of public opinion regarding iron-ore supplies and their ownership. The Conservation Viewpoint. In order properly to understand the situation at this stage, it must be recalled that the conserva- tion movement, at its inception and for some time after, was not concerned with the ownership of our various natural resources, but with their waste and exhaustion. Reasoning from conditions which undoubtedly existed in the lumber industry, it was perhaps too hastily assumed that a careful study of mining conditions would show that vast quantities of valuable minerals were being left in the mines or otherwise wasted. Soon after this, however, this idea was further developed into the view that, whatever might be the actual situation with regard to mining wastes, there was also need for careful study of the actual extent of some of the more important mineral supplies. Accordingly it was decided to secure as close an estimate as possible of the total available American reserves of iron and certain other metallic ores, of coal, oil and gas, and of phosphate rock. The reason for this particular selection of subjects will probably always remain a mystery, but the list omitted a number of mineral products whose supply is apparently limited, and on the other hand included some of unquestioned abundance. This investigation of mineral resources was carried out by geologists detailed from the United States Geological Survey, and reports on the results of their work were later published by that organization. The work on iron ores had been placed in charge of Dr. C. W. Hayes, then chief geologist of the Survey, and his report is discussed in some detail in an earlier chapter. So far as we are here concerned with the matter, the Hayes report may be summarized as stating (1) that there is no serious avoid- able waste in iron mining; (2) that the immediately available iron ores of the United States, of present commercial grade, aggregate almost five thousand million tons; (3) that, in addition, there are about seventy-five thousand million tons of ore, of lower grade or more poorly located, which will gradually become available as the better ores become exhausted; and (4) that certain reserves of high-grade ore, aggregating several thousand million tons, located in Cuba, Canada, and Newfoundland, must logically be considered a portion of the immediately available American 368 IRON ORES reserve, since they can be used most economically and profitably in the United States. Impossibility of Actual Monopoly. In Chapter XXVII it has been also pointed out that both our own immediately avail able reserves and the ore reserves in commercially tributary ter- ritory are in fact much larger than the Hayes report would imply. In any casual discussion of the matter it will be safe to assume that the available American reserve amounts to at least six or seven thousand million tons, and that the tributary ton- nage is approximately as large. At intervals there has been a good deal of rather indefinite talk about the existence or possibility of absolute monopoly in ore ownership. Consideration of the tonnages involved in the prob- lem, as briefly stated above, will serve to show the great practical difficulties which would prevent the formation of an absolute monopoly, even were there no competitive purchasers or legal prohibitions to hinder attempts in this direction. At present, therefore, both the possibilities and the actual conditions in this line should be fairly well understood, and it is not probable that anyone who has paid much attention to the subject takes the possibility of absolute monopoly very seriously. As to existing conditions, some idea can be gained by consider- ing that even the largest existing steel company has not advanced very far in the direction of ore control. Estimates based on the official reports of the Minnesota and Michigan Tax Commissions credit the United States Steel Corporation with owning approxi- mately 45 percent of the Lake ore reserves. In the South its holdings are far smaller, both relatively and absolutely, amount- ing probably to one-fifth or less of the total southern reserve; while in the western and northeastern ore districts it does not appear as a serious ore owner. For the entire United States, therefore, its proportion drops to perhaps one-quarter of the total; and if Cuba be included, to a far smaller fraction. As a matter of fact, the Pennsylvania Railroad Company, through its control of the Pennsylvania and Cambria Steel companies, is a very close second to the Steel Corporation in the matter of total ore tonnage owned, and far exceeds it if total ownership be compared with actual annual requirements. Many of the smaller companies have, in similar fashion, acquired far heavier ore holdings than the Steel Corporation, relative to their needs. OWNERSHIP OF AMERICAN RESERVES 369 From any point of view, however, it is obvious enough that actual monopoly does not exist, and that it is not even danger- ously approached. It will be later seen that, entirely irrespective of legal conditions, there are good business reasons for not attempting to secure it. Present Status of the Discussion. With the passing of the idea that it would be either feasible or profitable for one company to secure control of all, or almost all, of the American reserve of iron ore, the ground of discussion has been shifted. This shift has been so gradual, however, that even in discussing the subject we are hardly aware of the change. We still speak casually of attempted or threatened monopolies in ore holdings, while as a matter of fact we are really dealing with something quite different, and the arguments which would support or refute the old charges as to monopoly are valueless in treating the present phase of the discussion. Under these circumstances, it is desirable to consider some of the points which are now brought into the field. In doing this it will be absolutely necessary to take cognizance of the various investigations which the United States Steel Corporation has undergone, at the hands of Government bureaus and Congres- sional committees, for in the course of these investigations all possible phases of the question have, at one time or another, been brought into view. It will not be necessary, however, to limit the present study to that particular corporation, for in order to be of any real value the conclusions reached must be of general application. Since practically all of the iron and steel manufac- turing companies of the United States have followed the same general methods as regards acquisition, ownership, and valuation of ore reserves, it is possible to carry out this discussion without narrowing its scope to an individual instance. Recent Views on Ore Ownership. During recent years most of the opinions expressed on this subject have been by lawyers or politicians, rather than by engineers or manufacturers. It is obvious enough that this situation is not likely to result in a careful and impartial consideration of a rather complex technical problem, for neither the legal nor the political habit of mind is adapted to secure an adequate and fair presentation of a matter involving close reasoning from engineering and financial data. The acutely logical mind of the lawyer is often engaged in working 24 370 IRON ORES over a mass of very doubtful data, while the politician too often regards neither basal data nor logic. The result is, that in discussing this subject, we have to deal with an extensive and variable mass of argument and opinion relative to ore ownership, some of which is distinctly worthy of attention, while much more can not be taken very seriously. In considering this great variety of opinion, selection of the views which seem to be important enough to justify further discussion is, of course, largely a matter of personal judgment. The prin- cipal views which have been seriously advanced within the past five or six years, regarding the monopolistic ownership or use of iron-ore reserves, seem to be those which may be briefly summar- ized as follows : (1) That ownership of ore mines by steel companies is an ab- normal and comparatively recent condition; and that the public interest would be best served if an absolutely independent set of mine owners sold ore to a distinct set of furnace men. (2) That, though actual monopoly does not exist, some or all of the larger steel companies hold greater ore reserves than are demanded or justified by their actual requirements, as indicated by their present annual consumption of ore. (3) That, though actual monopoly does not exist, there are not sufficient ore lands remaining in independent hands to permit the formation of a large new steel-manufacturing company. (4) That, regardless of extent of ownership, the steel compa- nies are in a position to earn excessive profits on their finished steel, because of assumed excessive valuations placed on their ore reserves. In glancing over this group of summarized opinions, the reader will immediately note that, whatever their individual value, they are to some extent mutually contradictory. It would be difficult, for example, to accept simultaneously conclusions 1 and 4, for obviously the excessive valuations assumed in 4 would be more than counterbalanced by the new set of intermediate profits which would be introduced if 1 were accepted and followed. Similar contradictions occur elsewhere in the series, when the various arguments and views are critically examined, but in spite of this certain recent reports have managed to accept the entire series simultaneously. Accepting the four views above summarized as representing, . OWNERSHIP OF AMERICAN RESERVES 371 for the moment at least, the most widely published opinions in criticism of the present status of ore ownership, it will be of inter- est to discuss in some detail the general principles by which the. validity of the different views must be tested. It will be found, curiously enough, that many points which are commonly thought to be mere matters of opinion can, in reality, be determined with mathematical accuracy. Of the four questions which have been raised, the first and sec- ond will be considered in the present chapter, as being most closely related to the subject of ore-reserve control. The third does not require detailed discussion, for the chapters devoted to description of the ore-producing districts of the United States will serve to suggest the possibility of increasing output and acquiring unworked properties in the different regions. The fourth ques- tion will be treated, incidentally to a discussion of ore reserve valuation, in a later chapter of this volume. THE FUNDAMENTAL QUESTION OF OWNERSHIP The view first cited brings us face to face with the broadest and most fundamental criticism that can possibly be brought against the existing status of ore ownership. It is of importance, not because of its inherent strength and soundness, but because of its basal character, and because of the dangerous remedies which it invokes. This view, briefly stated, is that any ownership of ore mines or lands by iron or steel manufacturers is abnormal, and contrary to good public policy. It involves, as will be seen, a question of historic fact and a question of future policy. Taking up the first phase of the matter, it is notable that during some of the recent discussions of the steel industry, there became evident a curious misconception of the relations which have normally existed in the past between iron-ore mines and blast furnaces. The Chairman of the Stanley Committee, for example, frequently framed questions on the obvious assumption that ownership of mines by furnace interests dated back only to the advent of the large steel combinations say to 1900 or thereabout. It was evidently taken for granted by Mr. Stanley, as well as by some of his associates on the committee, that during all the earlier periods of the history of the American iron industry, furnace 372 IRON ORES owners ordinarily bought their ore from an entirely independent set of mine owners. This erroneous assumption, unimportant in itself because it relates to a matter of purely historic interest, becomes of great importance as the argument is followed out, for it is used as a basis for conclusions of immediate and serious import. Assuming that ore ownership by furnace interests is a recent development in the industry, the conclusion drawn is that such ownership, in its present stage, is a step in the direction of final ore monopoly. As a matter of historic fact, the assumption that mine and furnace have normally been separate enterprises could hardly be further from the truth. During all of the earlier periods of Ameri- can iron history, the furnace owned and operated the mine, and was ordinarily located near it. In the south, east and west this business relation between the two has persisted uninterruptedly until the present day, so that over the greater portion of the United States merchant ore mines have never been of great importance. The Champlain and imported ores hardly qualify this statement. Some light is thrown upon the views held on this point a cen- tury ago by the following quotation from Cooper, 1 writing on United States practice in 1813. "I have repeatedly met with persons who think that nothing more is necessary to render a place valuable for iron works than that there should be plenty of iron ore on it. But besides this, which ought to be at least a twenty years stock," * * * the author points out that many other things are requisite for profitable operation markets, labor supply, charcoal lands, water power, etc. His suggestions along these lines are interesting, and might still be taken to heart by certain promoters. But our present interest is directed chiefly toward the evident assumption that the iron industry is based primarily upon the mine, and that the furnace was, at that date, merely a method of utilizing a mining property. In the Lake Superior district, however, there was a relatively short period when the independent ore mine was the most impor- tant factor in the industry. This condition arose gradually, was due to peculiar local conditions, and seems to be passing. Since the conditions which caused it have disappeared, the merchant 1 Emporium of Arts and Sciences, new series vol. 1, p. 18. Philadelphia, 1813. OWNERSHIP OF AMERICAN RESERVES 373 mine is apparently on the way to becoming as scarce in the Lake region as it has always been elsewhere in the country. At the commencement of mining in the Lake Superior iron district, the merchant mine was not contemplated, for all of the earlier enterprises were planned with the idea of making charcoal iron in the Lake region itself. Later, when the ore began to be shipped east, it is noteworthy that the very first shipments were to a furnace whose owners promptly secured the mine and com- menced direct operation. As the mining area extended, however, and the older iron-producing centers became more and more dependent upon the Lake district for their ore supplies, the independent or merchant mine became a prominent factor in the industry, and remained so for thirty years or more. The eastern furnace men, confident that all their annual ore requirements could readily be filled in the open market, put their spare capital or new capital into additional smelting and finishing plants, as promising more immediate and larger profits than investments in mining lands. Throughout all this period, however, there had always been mines operated directly by furnace interests, or controlled by them; and each period of depression in the iron business tended to decrease the relative importance of the merchant mines. In the eighties and early nineties this process became more marked, and long before the so-called " Trusts" were formed most of the larger iron and steel-manufacturing companies had mining inter- ests in the Lake region. There is little to indicate that the later formation of the great industrial combinations had much effect, one way or the other, on the decline in merchant mining. It was, after all, merely a return to the conditions which had always existed in the other American iron-mining regions. Effect of Independent Operation. Nothing further need be said concerning the historical side of the matter, on which fortu- nately the record is sufficiently clear and decisive. Some con- sideration must be given, however, to the industrial features of the problem, in an attempt to determine, so far as possible, what form of mine ownership is likely to result in the maximum of economy and efficiency. At present we are concerned chiefly in comparing the results attainable under independent or merchant ownership with those reached when the mines are controlled by the iron and steel 374 IRON ORES companies directly. It must not be overlooked, however, that a third possibility is either openly or implicitly put forward by some critics of the existing status. For the logical result of over- throwing this status would be, not to increase the importance of the merchant mine, but to introduce some form of Government regulation or operation. We may reasonably look forward to meeting, in the near future, arguments in favor of one of the following alternatives: (1) Government ownership of ore lands; (2) Government ownership and operation of sufficient mines and reserves to control the market; or (3) some form of Government regulation of ore prices. These possibilities may sound unreason- able, but they follow logically enough from a conclusion that operation of mines by steel companies is either inefficient or inequitable. As to the facts in the case, direct evidence is difficult, and we can only judge from the comparative results attained in the past, at different mines and in different regions, under the two methods of operation. From this basis, the following conclusions seem to be justified. (1) If all the iron and steel companies bought ore from inde- pendent mines in the open market, the fluctuations in ore prices would be wider than under present conditions. In prosperous years the mines would demand prices greater than they can now secure; in poor years they would sell ore at the cost of mining, without allowance for depreciation or amortization. (2) Over a long series of years, including the usual proportion of good and bad periods, the price of ore would average notably higher than at present, for the mines when conducted as inde- pendent enterprises would expect a higher rate of profit than they are now credited with. (3) So far as technical efficiency is concerned, that would not suffer if all of the mines, though independent of the steel compa- nies, were in the hands of two or three large mining companies. But if the ownership of the mines were widely scattered, so that a number of relatively small mining companies existed, we might expect a marked decrease in efficiency. One result would be, almost certainly, that only high-grade ore would be shipped so long as it could be secured. This would cause an increase in the percentage of waste, and a shortening of the life of the ore reserves. OWNERSHIP OF AMERICAN RESERVES 375 From the standpoint of either industrial efficiency or of the public interest, there seems therefore to be little to justify the criticism that independent ownership and operation of the mines would yield better results than are secured now. THE LIMITATIONS OF RESERVE OWNERSHIP The question next to be considered is whether the iron and steel companies have secured ore reserves so far in excess of their requirements as to justify the suspicion that the purchases were really monopolistic in intent, if not in effect. It is obvious that in order to settle this question it is first necessary to decide what the actual requirements of a modern steel company are, in the line of ore reserves. It will be found, on examination, that both their minimum requirements and their allowable maximum reserves are fixed by business considerations; and that both are clearly definable. Minimum Permissible Reserves. Taking up first the ore requirements of a modern steel company, it is to be noted that the minimum ore reserve which a steel-manufacturing company can safely carry is determined, and determined within rather close limits, by the amount of its investment in manufacturing plant and other fixed property. It would be obviously injudicious to risk a heavy investment which might be made entirely valueless within a few years by a shortage in ore supply. To be in a sound financial position, a steel company must therefore own sufficient ore to justify the erection of a steel plant of commercially com- petitive size, and to guarantee that this plant will be able to remain in operation on a competitive basis for a long period of years. The length of the period whose ore supply should be made cer- tain may, in fact, be fixed with some approach to accuracy. A modern steel company, making its own pig iron and steel, and selling a varied line of finished products, will necessarily have invested in plant and other fixed property somewhere in the neighborhood of forty to sixty dollars per ton of steel annually sold. These figures seem to be within the limits of the data presented recently in a report of the Bureau of Corporations, which certainly did not err in the direction of overcapitalization, and they may therefore be accepted as close to the possible mini- mum investment for which such a plant could be put together. 376 IRON ORES We may therefore assume that the average plant investment, excluding ore lands and working capital, is fifty dollars per ton of annual product. It is clear that if the profitable life of this plant is limited by the duration of its ore supply, a short-lived ore supply will necessarily mean that a heavy allowance must be made each year to cover the ultimate scrapping of the plant. However, this allowance may be handled in an accounting sense, it will in fact be a direct addition to the cost of producing each ton of steel. Disregarding for the moment the effect of interest charges to this account, it is roughly accurate to say that if the ore supply is only sufficient to last ten years, it adds five dollars per ton to the cost of producing steel; if the ore supply will last twenty-five years, this additional charge will be only two dollars per ton; if the ore will last fifty years, one dollar per ton of finished product will cover the final scrapping loss. In reality, each of these figures would be decreased somewhat by interest credited to the sinking fund, but that fact does not seriously alter their relative importance, or affect the bearing of the present argument. Industrially, it is evident that, other things being equal and merchant ore unobtainable, the relative duration of their two ore reserves will determine the competitive status of two steel com- panies. A company which must charge off five dollars per ton of steel in order to provide against a short-lived ore supply can not hope to compete with a rival whose charge to this account is only one dollar per ton. It is obvious that there is a practical limit to the utility of this line of reasoning. The difference in the sinking-fund charge per ton decreases rapidly as the duration of the ore supply increases, and after a time becomes practically negligible. Taking this into account, it might perhaps be said that a modern steel com- pany can hardly afford to have less than a twenty-five year sup- ply of ore ; that a larger supply would be even more economical ; but that after a fifty or sixty year supply is secured the economy due to still longer life becomes too small to be important com- mercially. Maximum Advisable Reserve. It has been seen that the minimum ore reserve which a steel company can safely and economically provide is fixed, within quite definite limits, by purely business considerations. It is equally true, though it OWNERSHIP OF AMERICAN RESERVES 377 seems to be less commonly understood, that the maximum reserve which it is economical or advisable for a company to own is also fixed by business considerations. That is to say, whatever the state of the law or of public sentiment on the subject, there is a point beyond which it is not profitable to go, in the way of owning large ore supplies. This point is fixed by the rapidity with which carrying charges interest, taxes, etc. accumulate on ore which is not used within a reasonable number of years after its purchase. At this point it is necessary to call attention to the differences introduced by variations in the original cost of the ores. Obvi- ously the carrying charges on a hundred-year supply of cheaply acquired ores will be less than on an equal supply of more expen- sive ores; but the full effect of this factor is rarely comprehended. If we recall that the average holdings of Lake Superior or north- eastern ores may have cost the companies from twenty to fifty cents or more per ton, in the ground, while the average Cuban or southern ore reserve has perhaps cost from one-tenth of a cent to two or three cents per ton, it will be seen that the difference in carrying cost must be enormous. The result of this is that it is economically possible to carry far larger reserves of Cuban or southern ores than of the more expensive northern ores. Data on Actual Reserves. The following table presents specific data relative to some points which have just been discussed in a general way. In it will be found the total reserve-ore tonnage of a number of typical American iron and steel companies, and the present annual rate of ore consumption of these same companies. From these two sets of figures it is of course a mere matter of arithmetic to determine the approximate length of life of the ore reserve of each company, provided its average annual require- ments do not increase. This they are of course likely to do, but we may for our present purposes assume that all of the companies will grow at about the same rate, so that the figures in the last column are in any case strictly comparable. With regard to the sources of the data used, it may be said that the annual consumption given is either the exact or the approxi- mate tonnage taken out during 1910, a record-breaking year so far as ore shipments were concerned. The reserve tonnages for the Steel Corporation in the Lake district are based on those reported by the Minnesota and Michigan Tax Commissions; 378 IRON ORES while its Alabama reserve (400,000,000 tons) is taken from reports by a number of engineers. The Republic reserves are quoted from annual reports of that company ; and the Sloss figure from an appraisal report. The Pennsylvania and Bethelem data are from semi-official notices regarding the Cuban lands of the two companies. The Woodward figure is submitted by the present writer, and though calculated on a different basis from the other southern reserves, is close enough for our present use. The Dominion and Nova Scotia figures are estimates based on recent work, and are probably conservative, amazing though they may seem to anyone whose attention has been fixed on the Lake district. Taken as a whole, these estimates of reserve tonnage may be accepted as being fair, impartial, and as accurate as possible. ORE HOLDINGS AND CONSUMPTION OF STEEL COMPANIES Company Ore district Tonnage owned Present annual draft Duration of supply, years United States Steel Corp Lake district 900 000 000 21 000 000 43 United States Steel Corp. . . . Lake and Alabama. 1,300,000,000 23,000,000 55 Pennsylvania Steel Co Cuba alone 600,000 000 934 092 642 Republic Iron & Steel Co . Alabama 89,000 000 700 000 127 Republic Iron & Steel Co... . Lake and Alabama. 128,000,000 2,000,000 64 Bethlehem Steel Co Cuba alone 250,000,000 318,814 783 Sloss-Sheffield Co Alabama 78,000,000 800,000 95 Woodward Iron Co Alabama red ores. . 235,000,000 500,000 450 Dominion Steel Corp Newfoundland 600,000,000 700,000 425 Nova Scotia Steel & Coal Co. Newfoundland 2,000,000,000 600,000 3300 When the figures in the subjoined table are examined, and compared with the requirements as calculated in preceding sec- tions, it will be seen that there is little reason to believe mono- polistic intent has had much influence on ore-reserve purchases. The companies whose chief holdings are in the Lake Superior district have really rather scanty reserves there. They would probably be glad to increase their holdings, but present prices for Lake ores in the ground are high, and the carrying charges would be heavy. The companies which have secured reserves in the south or in Cuba, where ore lands are still incomparably cheaper than in the Lake region, are subject to lighter carrying charges, and can therefore take on far heavier reserves without entering upon policies of doubtful economy. OWNERSHIP OF AMERICAN RESERVES 379 The Industrial Effects of Overvaluation. The factors which influence ore prices, and the methods and results of ore-reserve valuation have both been discussed in considerable detail else- where in this volume. In the present place there is no necessity to go over this ground again, but attention may be called to the conclusions which were reached first, that most companies have rather undervalued than overvalued their ore reserves, from a strictly business point of view, and second, that no company has ever valued its reserves as high as their smelting or industrial value would justify. If these conclusions be generally accepted, there is little need to consider what effect overvaluation might have, provided it were practised. One fact, however, would seem to be obvious. That is, that unless all steel companies equally overvalued their ores, there could be no possible effect on prices. As a matter of fact, overvaluation by one or two companies, under any decent accounting system, would simply result in placing them at a distinct disadvantage in competition . The Feasibility of New Competition. Another phase of the subject may be touched on briefly, as being too irrelevant to be given much weight, though the argument has been recently advanced in all seriousness. Reference is made to the complaint that it would be impossible to build up a great new competing unit in the American steel industry, because our ore reserves are now so held that an adequate ore simply could not be secured by purchase from owners unconnected with the iron industry. Looked at impartially this seems to be about parallel with a complaint that a builder wishing to erect structures on Manhattan Island would not be able to secure the necessary land by purchase from an original Indian owner. So far as the statements about present ore ownership are concerned, it is very doubtful if they are based on accurate premises, but even if that were the case, the con- clusion does not seem to be sound. If it were true that a new steel company would not be able ( to put together large ore holdings by purchase from small individual owners, the conditions would not be due to the intentional operations of the existing companies, but to our general system of private land ownership. A new arrival in any line of business can hardly hope to secure his site, his raw materials, his labor or his customers as cheaply as the competitors who were first on the ground; and there does not seem to be any good reason to single out the iron industry for 380 IRON ORES criticism in this respect. In closing this discussion it is well to point out that this particular line of criticism would become im- portant only if it could be proven both (1) that it is impossible to secure adequate ore supplies for a new plant, on a reasonable basis, and (2) that if this is the case, the impossibility is due to deliberate attempt at monopoly on the part of the existing companies; for if the effect were purely incidental, due to a gen- eral shortage of ore supply, it could hardly be open to criticism. In the writer's opinion, neither of these conditions can be proven. Whatever the hopes and expectations of 1901 may have been, time has shown that effective ore monopoly, on a tonnage basis, has not been attained. On the contrary, the most surprising feature of the iron industry has been the manner in which new and enormous reserves have been discovered and utilized. Cuba, Brazil, and Newfoundland are cases in point. Ten companies the size of the largest one now existing could get their reserve necessities satisfied in these new fields. CHAPTER XXIX THE IRON-ORE RESERVES OF THE WORLD The principal known iron-ore deposits of the world have been described in certain preceding chapters (Chapters XVI to XXV) and in the course of the descriptions an attempt has been made to give some idea of their relative importance. In the present chapter this matter will be taken up in more detail, and so far as possible placed on a quantitative basis. It is of course obvi- ously impossible that any one engineer should have a personal acquaintance with more than a fraction of the world's ore depo- sits, and under ordinary circumstances it would be impossible to hazard anything like a summary of the reserve tonnage of the world. But fortunately a recent publication has placed in con- venient form the bulk of the statistical raw material required for such an estimate; and this will be used in the light of such knowledge as we have concerning its precision and accuracy. In 1908 the Executive Committee of the llth International Geologic Congress, planning for the meeting at Stockholm in 1910, asked various geologists for reports on the iron-ore resources of different countries with which they were familiar, with the design of securing a complete description of the known iron-ore resources of the world. These reports were published 1 in 1910, with a valuable prefatory summary by H. Sjogren. World Estimates, I. G. C. The statistics received by the International Geologic Congress were classified into three groups, according to the exactness with which the estimates had been made. In group A were included "such cases in which a reliable calculation of the extent of the deposit, based on actual investi- gations, has been carried on; group B includes those deposits in which only a very approximate estimate can be arrived at; and group C includes such deposits as can not be represented in x The Iron-ore Resources of the World, two volumes and atlas. Published by the General Staff, Stockholm, 1910. 381 382 IRON ORES THE I RON -ORE RESERVES OF THE WORLD 383 figures at all. The table below shows to what extent the reports received belong to one or the other of these groups"; and it also shows what portion of the earth's surface was not included at all in the inquiry, for one reason or another. Total area, in square kilometers Area included in group A. sq. kilom. Area included in group B. sq. kilom. Area included in group C. sq. kilom. Area not included in the inquiry, sq. kilom. Europe .... . . 9,724,321 9,063,725 260,333 166,520 233,743 America . . . . . 38,323,629 7,851,470 10,689,348 17,605,631 2,177,183 Australia. . . . 8,948,120 1,296,661 6,667,500 983,959 Asia . . 44,179,400 452,922 218,200 31,807,388 11,700,890 Africa . . 29,758,100 1,057,400 11,373,000 17,327,700 Totals 130,933,570 17,368,117 13,521,942 67,620,039 32,423,472 Percent . . 100.00 13.3 10.3 51.6 24.8 As some guide to the extent of our present knowledge, it may be noted that the areas included in group A comprise practically all of Europe, the United States, Cuba and Japan; and that group B includes the Balkan States, Newfoundland, Brazil, Mexico, Algeria, Tunis, New South Wales, Victoria, Corea and New Zealand. Canada, Central America, all of South America except Brazil, and almost all of Asia, Australia and eastern Africa are included in group C. Much of China and Thibet, central and western Africa, and Alaska are among the utterly unknown regions not included in the inquiry. The effect of this limitation of existing knowledge on the actual distribution of probable ore reserves will be referred to again. A further distinction was made in the individual reports, as to the probable commercial importance of the various ore fields. This distinction is difficult to make when only a few fields are compared; and it becomes increasingly difficult to maintain it when the scope of the inquiry is broadened to cover the entire world. In summarizing the reports Sjogren uses the terms " actual reserves" and " potential reserves" without definite explanation; but with a fairly steady line of division. The actual reserves seem to include the ore tonnages occurring in fields which are now being worked commercially; the potential reserves in- clude unworked fields, and in a few instances, the lower grade or deeper ores of worked fields. 384 IRON ORES SUMMARY OF WORLD'S IRON-ORE RESERVES (SJO'GREN) Actual reserves Potential reserves Iron ores, metric tons Metallic iron contained, metric tons Iron ores, metric tons Metallic iron contained, metric tons Europe 12,032,000,000 4,733,000,000 41,029,000,000 12,085,000,000 America 9,855,000,000 5,154,000,000 81,822,000,000 40,731,000,000 136,000,000 74,000,000 69,000,000 37,000 000 Asia 260,000,000 156,000,000 457,000,000 283,000,000 Africa 125,000,000 75,000,000 Many billions Many billions World totals 22,408,000,000 10,192,000,000 123,377,000,000 53,136,000,000 Taken as a whole, the final report of the International Geologic Congress was fairly representative of the state of knowledge re- garding iron-ore reserves at its date of issue, though there were wide differences in the value of different sections of the report. Even at the time of its publication, therefore, there were several points to which attention might profitably have been called; and the desirability of some further discussion of the subject has increased since then. There have of course been very obvious reasons against publishing any critical and detailed discussion of the question of ore reserves so long as that question was a matter of current political and legal importance, but with the progress of the dissolution suit these objections have disappeared. In the following sections an attempt is made to summarize, in convenient form, the chief facts relative to the ore supplies of the world as they are now known, with particular reference to those of North America, South America and Europe, which are elements in the competitive steel industry of the world, as that industry is now developed. During the past few years, active exploration and development, by many different corporations and individu- als, have greatly increased our knowledge of the iron-ore deposits of North and South America at least, and have made it possible to substitute somewhat more definite figures for certain of the less definite portions of the International report of 1910. The present discussion is offered as a suggestion along the lines which have been noted, rather than as a final analysis of the subject, for as will be seen there are still notable gaps even in our knowledge of the ore deposits of the two Americas; and with regard to Asia Africa and Australia the data are too incomplete to be more than suggestive. It will be understood, of course, that in preparing this summary I have made free use, not only of my own results THE I RON -ORE RESERVES OF THE WORLD 385 in the districts which I have studied, but of all available sources of information bearing on these and other districts. ORE RESERVES OF NORTH AMERICA In one of the preceding tables it is stated that the International estimate credited almost ten thousand million tons to North America. This total was made up as folllows: Country or district Ore tonnage Newfoundland 3,635,000,000 Canada no data United States: Lake Superior 3,500,000,000 Clinton ores , 505,300,000 Miscellaneous ores 252,500,000 Mexico 55,000,000 Cuba 1,903,000,000 Total, North America 9,850,800,000 The total reserve credited to the United States, something over four billion tons, was thus less than that determined by Hayes some years previously. The difference is largely due to the fact that in the International estimate no portion of the Texan or Adirondack tonnages are credited to actual reserves, all being placed in the class of potential reserves. The entire omission of Canadian ores from the estimate was due to lack of really definite data on the subject. The estimate given for the Clinton ores of the United States is far too low one company alone owns as much as that; and a single mine property in the Russell ville region will account for all of the 45 million tons credited to the " Mississippi Valley" region. On the other hand, the Lake fig- ures are relatively too high though actually they may be low enough. The Newfoundland figure, curiously enough, though based on entirely incorrect data, is very close to later results in its total. In view of later developments in some of the North American districts, and of the more exact information now available for others, it will be of interest to attempt an estimate on a more uniform basis than was possible several years ago. The data available regarding the ore deposits of the Lake Superior district have not changed materially, but in some of the other regions extensive prospecting and development work has given a far more definite basis for tonnage estimates than was at hand until recently. As will be seen, however, there are still numerous ore 25 386 IRON ORES districts and areas where the data for estimates are still too in- complete to allow more than a statement as to proven tonnage, and a guess as to possibilities. One of these practically unknown areas happens to be the country first to be discussed. Dominion of Canada. It is still difficult to make any estimate as to the iron-ore reserves of Canada, even in an approximate way. The known ore deposits of the Dominion are widely scattered over a very large area, and differ greatly in type. The inter- vening areas are, in many cases, little known. At present, it can be said that any attempt to estimate the ore reserves must take account of certain tonnages of sedimentary hematite ores in Nova Scotia; of a group of fairly large magnetite deposits in New Brunswick; of a number of smaller scattered magnetite bodies in Quebec and eastern Ontario; of some devel- opments in the Canadian portion of the Lake Superior district; and of a series of contact deposits along the Pacific coast. Of the ores named, pretty close estimates can now be made for those in Nova Scotia, New Brunswick and British Columbia; while the Quebec and Ontario tonnages can not be approximated very closely. Taken as a whole, it is probable that even the most conservative figuring would credit the Dominion with about one hundred and fifty million tons of known and partly developed iron ores; while a more enthusiastic view of the Lake ranges might increase this estimate, heavily. For our present purposes, the lower figure named will be accepted. Newfoundland. In turning to the adjoining colony, we meet an entirely different situation, for Newfoundland possesses what is probably the largest ore tonnage in small area anywhere in the world. To add to its interest, this large reserve is almost entirely submarine. The known and developed ores of Newfoundland are found in the southeast portion of the island, and occur as ,a series of sedimentary beds, in rocks of early Ordovician age. They agree in origin with our own Clinton or red ores, but are of somewhat earlier geologic age. About a dozen ore beds have been located and described in various reports, but three of these are workable. These three workable beds give an aggregate average thickness of ore of close to 30 feet. The ore is a very dense red hematite, grading 52 or over in iron, and the tonnage per square mile of ore territory is therefore very heavy. THE I RON -ORE RESERVES OF THE WORLD 387 The ore beds and their associated rocks occur in a trough or basin. The southwestern end of this trough outcrops on Bell Island, from which the rocks and ore beds dip northwardly under the waters of Conception bay. The accompanying sketch map will serve to give some idea of the surroundings and geology of the entire area involved in the question of reserve tonnages. Geologic studies give reason to suppose that the ore beds con- tinue northwardly, about as shown on the map. If we assume that they can be worked as far out as Cape St. Francis, the ore trough up to that point might contain some ten billion tons of ore. A certain portion of this area will be difficult to work; and in the worked portion heavy allowance must be made for ore left to support the roof. Discounting for these factors, we may fairly assume that the Wabana trough contains some four thousand million tons of recoverable ore. About half of this tonnage is controlled by the Nova Scotia Steel & Coal Co. United States. With regard to the iron- ore reserves of the United States, there are available a number of different recent estimates, differing little as to the facts of the case, but made on different bases as to grades and commercial conditions. An estimate which I prepared a year or so ago and which is given in detail in Chapter XXVII of the present volume seems to fit in best with our present purposes. It is as follows : RESERVE TONNAGES, UNITED STATES District Minimum Maximum Lake Superior region , 2,000,000,000 2,500,000,000 Southern red ores 1,500,000,000 2,000,000,000 Texas brown ores 600,000,000 1,000,000,000 Other southern ores 500,000,000 750,000,000 Northeastern states 300,000,000 600,000,000 Western states 300,000,000 700,000,000 Total U. S ^200,000,000 7,550,000,000 To this estimate as originally made, was added the note that it included only ores of present-day commercial grade such ores as are now used during years of business prosperity. It does not include the enormous reserves of very low-grade red ore in the south, or the low-grade siliceous ores of the Lake region. The minimum figures in each case represent the lowest estimate which anyone, writing today, could possibly credit to the various dis- tricts. The higher figures represent the tonnages which may fairly be hoped for and are, in my opinion, the closer to the truth. 388 IRON ORES For the purposes of the present chapter, the maximum figures may be accepted tentatively. The Texas maximum might be de- creased somewhat; on the other hand, some of the other southern ore tonnages might be increased. Cuba. The high-grade hematites which formed the original source of Cuban ore shipments are derived from a series of depos- its on the south coast, near Santiago. These deposits are now estimated to contain, according to various engineers, a total of from five to eight million tons of ore. Similar ores occur else- where in Cuba, as well as in Porto Rico; but no large additional tonnage can be credited to them. With regard to the brown-ore deposits which fringe the eastern portion of the north coast of Cuba, the situation as regards re- serve tonnages is very different. These brown ores cover exten- sive areas, and the deposits are fairly regular in thickness, char- acter, etc. Current estimates from various sources agree closely in placing the total known tonnage of crude ore at about three thousand million tons. This corresponds to approximately two thousand million tons of dried commercial ore, but in the present discussion the crude ore figures will be used and the necessary correction can be made by using also the crude ore average grade, say 35 percent natural. Mexico, Etc. From Mexico and Central America, we receive, at frequent intervals, very enthusiastic estimates of new or well- known iron- ore deposits. Unfortunately, when traced down, almost all of these Mexican and Central American iron ores appear to be found either as contact deposits or as ordinary gossan ores. In either case, tonnage estimates are likely to be made too high, owing to the excellent appearance which ore deposits of these types present at the surface. The tonnages actually known to exist in Mexico and Central America might perhaps be placed at fifty million at least; more optimistic estimates might run as high as one hundred million. ORE RESERVES OF SOUTH AMERICA In attempting to appraise the iron-ore reserves of South Amer- ica, it is best to realize, at the outset, that enormous areas of that continent are still practically unknown, so far as their ore possibilities are concerned. On the other hand, there is very satisfactory knowledge of the reserve tonnages of certain limited THE I RON -ORE RESERVES OF THE WORLD 389 areas; and one of these areas happens to contain the largest known 'tonnage of high-grade ore in the world. Under these circumstances it is possible to summarize the existing state of knowledge with fairly definite results, even while admitting that there are obVious gaps in that knowledge. For geological as well as geographical reasons, it would be advisable to separate the South American ores into three groups, but because of the various company interests involved, this will not be done at present. The ores of the north and west coasts will be grouped together; while those of the Brazilian area will be discussed separately. Brazil. The existence of large iron-ore deposits in Brazil has been known for many years, but it is only within the past few years that these deposits have given promise of becoming active factors in the ore industry of the world. Their grade and tonnage are such as to overcome disadvantages of location. The Brazilian ores which require consideration at present are located in the state of Minas Geraes, and outcrop over extensive areas. They are hematites, high in iron and normally low in phosphorus. The deposits have been examined by many geolo- gists and mining engineers among whom may be mentioned Harder, Merriam, Chambers, Leith and Kilburn Scott; and there is substantial unity of opinion as to their main features. As to origin, the Brazilian ores are regarded as sedimentary, occurring in original bedded deposits, with no trace of the secondary concentration which has been so effective in the Lake Superior region. As to tonnage, estimates by Merriam and Leith would justify the assumption that some 7500 billion tons of ore exist, of which perhaps half will grade over 64 or 65 percent metallic iron, and with phosphorus below the Bessemer limit. The remainder will grade between 55 and 65 percent iron. The industrial significance of these figures as to grade and reserve tonnage requires little comment. The tonnage cited is three times that credited to the Lake Superior region; the average grade is that of ore which at one time existed on the lakes, but which has disappeared from circulation. Venezuela, Chile, Etc. It is highly probable that in future large deposits of residual brown ores, similar to those of the north coast of Cuba, will be located in South America, but at present the known ore deposits, outside those of Brazil, are of two differ- 390 IRON ORES ent types. In Chile, and for that matter all along the west coast of South America, there are a number of deposits of high-grade ores, often mixed magnetite and hematite, and apparently similar in origin and character to the contact deposits of Mexico and British Columbia. Some of the known deposits of Venezuela, on the other hand, appear to be more closely allied to the magnetite deposits of the Adirondacks and other portions of the eastern United States. Taking the Venezuelan and Chilean deposits together, it seems probable that two hundred million tons would be a fair estimate of the ore which has been prospected and partly developed to date. There are, of course, large possibilities in excess of this tonnage, but on the other hand, some of the deposits are of a type whose tonnage it is particularly easy to overestimate. A maxi- mum estimate, to cover probable development, might run as high as five hundred million tons for the ores of the northern and western portions of South America. ORE RESERVES OF EUROPE The International Report of 1910 contained very detailed descriptions of the iron-ore resources of each of the European countries, with estimates of their ore reserves, both actual and potential. It would be absurd for the present writer to attempt any revision of these estimates, and they will be accepted exactly as presented in the International report, so far as the tonnages are concerned. In order to facilitate reference, however, some rearrangement has been made with regard to the order and group- ing of the various countries. RE RESERVES OF EUROPEAN COUNTRIES (REARRANGED FROM GREN). ALL QUANTITIES STATED IN MILLIONS OF METRIC TONS Actual reserves Potential reserves Metalic Metalic Iron ore iron Iron ore iron content content Germany and Luxembourg. . 3878 1360 Considerable Considerable France 3300 1140 Norway and Sweden 1525 864 1723 630 Great Britain 1300 455 37,700 10,830 Russia (inc. Finland) 865 387 1101 441 Spain and Portugal 711 349 75 39 Austro-Hungary, Bosnia .... 284 104 424 142 Greece 100 45 Belgium 62 25 Italy, Switzerland 8 4 4 2 Total Europe 12,032 4,733 over 41,000 over 12,000 THE IRON-ORE RESERVES OF THE WORLD 391 THE WORLD'S IRON-ORE RESERVES When we turn from the New World to the Old, we find that only one of the older continents has been sufficiently examined to permit even an approximate estimate of its iron-ore resources. In view of the scanty information available concerning the greater portions of Asia, Africa and Australia, it would be folly to add their small known reserves to the fairly well-determined reserves of Europe and the two Americas and then call the result a world total. It will be far better to omit the three un- known continents from the total, in which case the result ob- tained will be substantially an estimate of that portion of the world's iron-ore reserve which is tributary to the Atlantic basin. TOTAL KNOWN ORE RESERVES Continent Actual ore tonnage Equiv't tons " metallic iron North America 14,760,000,000 6,455,000,000 South America 8,000,000,000 5,000.000,000 Europe 12,032,000,000 4,733,000,000 Total 34,792,000,000 16,188,000,000 We arrive, therefore, at the comfortable total of almost 35 billion tons of ore, equivalent to 16 billion tons of metallic iron, as being known to exist on three of the continents. All of this ore is of present-day commercial grade; and much of it is of Bessemer type. As against this total known reserve of commercial ore, we may set the fact that the world is now making pig metal at the rate of some 65 million tons a year. On this basis, the known supply is sufficient to last over two hundred years more. If the world's ore requirements increase steadily in the future, there are still three unknown continents to draw from; and a vast tonnage of low-grade ores, not above considered, on the three continents which have been considered. An actual ore scarcity can, therefore, hardly be taken seriously. On the other hand, as profits in the iron business decrease, the location of the various ore deposits becomes of far more impor- tance than it has been in the past. Every ton of ore included in the preceding estimates can be mined, concentrated when neces- sary, and shipped to some large existing furnace district at a total cost of not over ten cents per unit. This is not an impossible figure for the furnaces to pay, and it means that the securing of 392 IRON ORES anything approaching a monopoly, on a tonnage basis, is impos- sible. But there are very large tonnages which can reach smelt- ing centers at costs of four, or five, or six cents per unit and these more favorably located ores will become of increasing relative importance as time goes on. Probable Future Discoveries. In estimating the known ore reserves of the world, it was noted that the data with regard to Asia, Africa and Australia are so fragmentary and incomplete that it was not worth while making use of them. There are ob- viously very great gaps in our knowledge of the iron-ore resources of the world, and it will be of interest to make some estimate as to the results which are likely to be attained when these gaps are filled i.e., when our knowledge of the ore reserves of Asia, Africa and Australia reaches the same degree of completeness as our present knowledge of the iron resources of the Americas and Europe. Thanks to a method suggested and used by Professor Sjogren, it is possible to do this with some degree of exactness. The Sjogren method will be followed, but it will be applied to the revised estimates of American tonnage which have been discussed in the earlier part of this chapter. If we assume that the ore resources of Europe and of the two Americas are fairly well known now and so far as commercially usable ores are concerned this is more nearly the case than is commonly thought we can use this assumption as the basis for reasoning concerning the probable reserves of the three unknown continents. This reasoning will involve the further assumption, which is correct enough for all practical purposes that if very large land areas be compared, their iron-ore reserves are likely to be in proportion to the areas. It is clear that, given some knowledge of the geologic principles and causes which are involved in the formation of iron-ore deposits, we are warranted in extending our reasoning from the known to the unknown continents. The ultimate basis for our work must be the following relations : Continent North America . . . Reserve tonnage 14,760,000,000 Area, square miles 8,626,000 Tons per square mile 1710 South America 8 000 000 000 6,837,000 1170 Europe 12 032 000 000 3 850 000 3140 Total and average 34,792,000,000 19,313,000 1790 THE IRON -ORE RESERVES OF THE WORLD 393 The average for the three continents falls, it will be noted, at about the North American ton-mile factor. Assuming that this same figure will fairly represent the ore-bearing probabilities of the three unknown continents, we have the following results: Continent Area .', toSSSS? Estimated probable square miles factor reserve tonnage Asia 17,256,000 1790 30,890,000,000 Africa Australia 11,509,000 2,947,000 1790 1790 20,600,000,000 5,270,000,000 Total probable reserv Total reserves known es unknown continents . continents . . . . 56,760,000,000 34,792,000,000 Probable world reserves, commercial ore 91,552,000,000 Of course this amazing total is merely an arithmetical quantity, and as such subject to any errors which may have been introduced in the data and assumptions employed. But it may fairly be assumed that it does, in this case, come as close to representing the real probabilities as to the world's total reserve of commercial ore as does any other method now available. Concerning the result itself, little need be said. It effectually disposes of some of the more hysterical statements which have been made about impending iron scarcity. The Duration of the World's Ore Supplies. In discussing the duration of American iron ore reserves (Chapter XXVIII), it has been noted that during the past decade the question of their possible early exhaustion has been brought to the front by a number of writers and legislators. In that chapter the matter was discussed solely as a local problem, but the general question of ore exhaustion can now be taken up in the light of the data presented on earlier pages of the present chapter. In 1910 the entire iron-ore production of the world amounted, in round figures, to 142 million tons. The known supply of commercial ores is placed in an earlier table, at some 35,000 million tons; and I have noted that this is limited to three con- tinents. The probable supply of commercial ores in the world has also been calculated above as about 91 thousand million tons. With these data in hand, as a basis, we may take up the probable duration of these deposits. By reference to detailed statistics covering the past growth of the world's iron and steel industry, it will be found that for a 394 IRON ORES century the iron output has increased at a rate of slightly over 50 percent each decade. It may also be noted that in the opin- ion of the present writer this rate of growth is likely to continue for a few decades more. For our present purposes we might be safe in assuming that the pig-iron output and ore requirements of the world, during the next few decades, will be about as follows: Annual Annual Year pig output, ore requirements, tons tons 1910 65,000,000 142,000,000 1920 100,000,000 250,000,000 1930 150,000,000 375,000,000 1940 200,000,000 500,000,000 1950 250,000,000 625,000,000 Using these figures, it will be seen that between 1910 and 1950 the total iron-ore requirements might reach the aggregate of 15,000 million tons. This is about one-half of the known ores of commercial grade; it is less than one-sixth of the probable ore tonnage of the world; and it would be an unimportant fraction of the ore that would be available if we lowered our standards much below present-day commercial grades. The final conclusions which may be accepted as being derived from this study of the iron-ore reserves of the world are as follows : 1. Even admitting that the world's supply of pig iron will always be produced by charging relatively crude ores into a fur- nace, the supply of ore of strictly present-day commercial grade will last for considerably over a century. 2. If, without improving manufacturing or concentrating methods, we simply assume that pig iron will rise in price a few dollars say an average of $20 per ton in place of an average of about $14 per ton this rise in price will admit to use ten times as much ore as is now considered available. 3. But in speaking thus confidently of the world's supply of metal, we must not forget that local supplies will give out, even though a large total still remains elsewhere in the world. We may therefore expect great shifts in manufacturing centers to occur in the future, as they have in the past. 4. Coincident with the growing scarcity of local ore supplies in some countries now important in the iron industry will come changes in fuel conditions, in distribution of population, and in THE IRON-ORE RESERVES OF THE WORLD 395 market areas; all of which will aid in causing a redistribution of manufacturing centers. Grade and Phosphorus Content. Several points remain to be considered, bearing upon the amount of high-grade and of low- phosphorus ores available in the known ore reserves of the world. This is a matter of particular interest, and does not seem to have been summarized in the International report with sufficient allowance for recent developments. A table covering this matter, quoted from the report in question, follows: CHIEF ORE RESERVES ORE 60 PERCENT IRON (1910 REPORT) Reserves Country high-grade ore Russia 99,000,000 Sweden 1,095,000,000 Mexico 55,000,000 Cuba 3,000,000 Australia 49,000,000 Total world reserve 1,301,000,000 Concerning this question Sjogren remarks: "From the table it is evident that about four-fifths of the known and recorded rich iron ores come in the deposits of northern Sweden. The high-grade ores, such as for example Kirunavaara, will therefore in future be very much in demand and the possession of such ore resources will form a decisive factor in the competition in the market of the world." As opposed to this point of view, it may be suggested that the Brazilian ores, present in enormous tonnage, far outclass those of Scandinavia both in iron content and in their freedom from phosphorus. With a certain hesitancy, due to other factors, the same thing might be said of the Chilean ores. Perhaps a fair statement of the case would be somewhat along the following lines. It is not true that ores suitable for the acid Bessemer and even the acid open-hearth processes are scarce; on the contrary they are now known to be very abundant. So far as quantity is concerned, there is no difficulty whatever. But we must admit that most of these very low-phosphorus ores are very inconveniently located, so far as existing or probable steel centers are concerned; and this means' that ores for either acid Bessemer or acid open hearth are likely to be dearer in future 396 IRON ORES than they are now. As against this fact, we have to set the condition that, so far as one can judge, both the processes named are on the wane, relatively to other processes. The absolute necessity for a low-phosphorus ore is therefore disappearing, though its desirability still remains, in any normal basic open- hearth practice. On the other side of the account is to be set the fact that the basic Bessemer process, which requires very high-phosphorus ores, has a far smaller visible supply than has the acid Bessemer. Newfoundland and Middlesboro supply an ore which is a shade low in phosphorus for good basic Bessemer practice; and the Lorraine region is the only one where cheapness and high phos- phorus content go together. The only other possibility, the use of magnetites of extreme high-phosphorus type, does not offer much consolation so far as the chance of securing large tonnages at low cost is concerned. As the world's steel trade stands to-day, there would be more real interest in the discovery on any coast of a large ore-body carrying 2 percent phosphorus than in the discovery of a Bessemer ore-body. The Possibility of Metallurgic Improvements. The preceding discussion of the probable duration of the world's iron ore reserves is based on the assumption that the iron and steel to be produced in the future will be made in substantially the same manner as the bulk of the tonnage is now produced. It has been concluded that even on this assumption, the ore supply of the world is in no im- mediate danger of exhaustion. But there are always the possi- bilities that present processes will be greatly improved, or that entirely new processes will attain importance; and these possibili- ties require some consideration in the present connection. In describing the operation of the blast furnace (pp. 142-148) it was said that the existing furnace is a very efficient machine, and that the possibilities of its improvement are comparatively small. All this is true enough, for the blast furnace does convert its charge into pig iron in a very economical way; and if we start with a given quantity and grade of ore and coke, it is probable that no more efficient way of converting the ore into pig can be found than by its smelting in a blast-furnace. But this very statement of the case indicates the inherent limitations of the present day process, and supplies a suggestion as to the possible changes which the future may bring forth. The blast furnace is THE I RON -ORE RESERVES OF THE WORLD 397 an efficient machine; but it requires a rather expensive source of heat and an ore charge of good grade. If, as may be the case at some points in the future, the fuels are low-grade and the ores are miserably poor, the blast furnace can hardly be expected to handle that kind of charge economically. It is under such con- ditions that entirely new metallurgical methods may be devised to meet the changed circumstances. Usually, in discussing possible change in iron metallurgy, stress is laid on the possibility of using electric heat for the smelting of the ore, but it is always assumed that the ore to be used will be of substantially the same character and grade as that now charged into the blast furnace. In an earlier chapter some reasons were given for not expecting much from the electric furnace in the way of producing ordinary irons and steels under existing conditions; and under the conditions of our hypothetical future the electric furnace of itself will be even less effective. What will be needed, in case the world ever gets down to using such low-iron and high-silica rocks as are sometimes discussed as possible future ores, will be a two-stage process. In the first stage, the natural iron silicate will be converted into a convenient iron salt a sulphate, chloride, carbonate or oxide and this iron salt will be freed from the silica and other impurities of the gangue. In the second stage the practically pure iron salt will be reduced to metallic iron and the fact that slag will be absent will make a very simple form of electric or other furnace possible. So much for the distant future, when as some authorities fear, our descendants will have to work rocks carrying 20 to 30 per- cent iron, and 40 to 50 percent silica. In the meantime, we may safely assume that for a long time to come the blast furnace will be an essential feature of iron metallurgy, and that our handling of ores will have to be adapted to its requirements and limitations. This implies that, as ore grades lower and ore prices increase, much better concentrating methods will have to be adopted. The furnaces of 1950 may be running on charges as good as the average of to-day, even though the average grade of ore mined will be far lower. CHAPTER XXX WORLD COMPETITION IN IRON AND STEEL In earlier chapters the growth of the American iron and steel industries have been discussed in some detail, and in the course of this discussion reference was incidentally made to the rate at which the same industries had progressed in competing countries. In the present chapter this last matter can be taken up in more detail, and some idea given as to the growth of the world's iron and steel industries in the past, of the present status of world competition in those industries, and of the probable form which this competition is likely to take in the future. For we can not commit a greater error than by taking it for granted that the industries of the world have reached a fixed or stable condition; and on examining the bases on which these particular industries rest, it will be seen that the changes in relative importance are likely to be as serious in the future as they have been in the past. The nineteenth century saw the early development of the British iron trade to a commanding and apparently permanent leadership; but it later saw the growth of the American industries to a still more important position; and toward its close the remarkable growth of German manufactures. The twentieth century may in turn see the United States and Germany struggling for control of the world's markets in competition with Asiatic and perhaps African mills. The Growth of the World's Iron Industry, 1800-1910. The manner and degree in which the iron industry of the world has grown during the past century are well brought out by the table presented below. The data used in this table are of various degrees of accuracy, according to the dates and the countries. It may be assumed that prior to 1850 the figures, except for Great Britain, are merely fair approximations to the truth; that in later years the more general collection of official statistics gives us an increasingly firm basis for calculation; and that since 1870 the only reasonably important producer whose output is not defi- nitely known is China. But for all practical purposes, even 398 WORLD COMPETITION IN IRON AND STEEL 399 after making allowances for the possible inaccuracies of the earlier years, the table may be accepted as close to the truth. It is, at all events, the first attempt to combine these data over a complete series of years. PIG-IRON PRODUCTION OF THE WORLD, 1800-1911. QUANTITIES GIVEN IN MILLIONS OF TONS H || I 8 s| 6 4 1 8 It .s 1 3 la a 1 w J> o3 a a3 1 1 "oJ 1 o 11 S o ^ o tf < PQ GO 02 +3 6 1800 0.06 0.02 0.20 0.06 0.04 0.01 0.02 02 0.05 0.48 1810 0.06 0.03 0.27 0.09 0.07 0.02 0.03 03 0.06 0.66 1820 0.02 0.04 0.40 0.14 0.10 0.03 0.04 03 0.08 0.88 1830 0.16 0.08 0.68 0.27 0.18 0.04 0.06 04 0.10 1.61 1840 0.29 0.15 1.40 0.35 0.19 0.06 0.10 06 0.15 2.75 1850 0.56 0.25 2.35 0.41 0.23 0.10 0.14 0.09 0.20 4.33 1860 0.82 0.60 3.83 0.90 0.34 0.18 0.32 0.19 0.25 7.43 1870 1.67 1.40 5.96 1.18 0.36 0.37 0.56 0.30 0<35 12.15 1880 3.84 2.73 7.75 1.73 0.45 0.46 0.61 0.41 0.09 0.02 0.40 18.49 1890 9.20 4.66 7.90 1.96 0.93 0.97 0.79 0.02 0.46 0.18 0.01 0.50 27.58 1900 13.79 8.38 8.96 2.67 2.85 1.43 1.00 0.09 0.52 0.09 0.65 40.33 1910 27.30 14.56 10.01 3.97 2.98 2.01 1.82 0.71 0.59 0.37 0.21 0.60 65.13 1911 23.65 15.32 9.53 4.44 3.52 2.09 2.01 0.82 0.62 0.35 0.24 0.80 61.40 On examining the preceding table it will be seen that since 1900 seven countries have regularly produced over one million tons per year of pig iron, and that the combined output of these seven important producers now is about 97 percent of the total pig-iron production of the world. The seven are, in order of present output, the United States, Germany, Great Britain, France, Russia, Austro-Hungary, and Belgium. The three leaders alone produced in 1910 almost exactly four-fifths of the world's output. But in addition to the plain facts which it offers as to past and present output, the table suggests several interesting lines of inquiry. It may be asked, for example, what the probabilities are as to the future rate of increase in this great industry, and what factors are likely to cause the first slow-down in rate of growth. Then again, taking another standpoint, it may be asked how the output of pig iron in any given area bears on its international relations, so far as competition in steel and finished products is concerned. In the present volume neither of these questions can be discussed at any great length, but their impor- 400 IRON ORES tance requires that at least brief consideration be given to them in turn. The Rate of Growth of the Iron Industry. The first of the questions suggested relates to the probable future rate of growth of the iron industry; and as a basis for hazarding a suggestion we must first examine the history of the past century as set forth in the preceding table. When the production in each tenth year is summarized, and each total compared with that following, it is found that the rela- tion shown is as follows: RATE OF GROWTH OF THE IRON INDUSTRY, 1800-1910 Period Rate of increase Period Rate of increase 1800-1810 37.5 1860-1870 76.9 1810-1820 33.3 1870-1880 52.2 1820-1830 82.8 1880-1890 49.1 1830-1840 70.8 1890-1900 46.2 1840-1850 57.4 1900-1910 61.5 1850-1860 71.6 For the entire period since 1800, the average rate of increase per decade is 58.1 percent; for the last forty years, the rate is 52.3 percent. These two figures correspond closely enough to prevent us from assuming that the iron industry has already reached a stage where a distinct falling off in the rate of increase can be observed. Taken together, they would seem to justify the assumption that for a few more decades at least, the world's output of pig iron is likely to increase at the rate of about 50 percent every ten years. This would imply that in some pros- perous year near 1820 we may fairly expect to see a world's production of one hundred million tons of pig iron; and that by 1830 an annual output of 150 million tons may be normal. The rate of increase here assumed is considerably below that at which the iron industries of certain countries have recently developed, but since it has been calculated on a broader basis, it is probably more .reliable than if based on local growth. So far we have been considering merely the matter of tonnage produced, in an attempt to make some estimate of its future growth. But a large local production of pig metal does not necessarily imply that a profitable market will be found for all of it, and some attention may therefore be profitably given to the matter of steel production, of home consumption and of exports. WORLD COMPETITION IN IRON AND STEEL 401 Steel Production, Consumption and Exports. Such data as are available concerning the steel production of the world are presented below. They are not given for the earlier years of the nineteenth century, for steel as a commercial metal did not really exist until the Bessemer and open-hearth processes had been perfected. STEEL PRODUCTION OF THE WORLD, 1850-1911. QUANTITIES GIVEN IN MILLIONS OF TONS 03 d t 1 03 3 03 iS 1 s 3 03 T3 g * (H -S s -c a 55 'So s>> *"O d i a s J3 W i 03 3 ^ 03 "5 !* P o o Pn tf ^ PQ s 02 02 1850 1860 01 0.03 1870 07 13 0.09 01 1880 1 25 66 1 38 39 31 10 04 30 4 43 1890 4.28 2.23 3.68 0.58J 0.38 0.50 0.20 0.11 0.17 0.07 0.05 12.25 1900 10.19 6.54 4.90 1.541 2.16 1.14 0.64 0.02 0.29 45 27 87 1910 26.09 13.48 6.47 3.36 3.48 2.12 1.91 0.73 0.72 0.46 0.38 0.35 59.55 1911 23.68 14.78 6.56 3.81 3.87 2.29 2.16 0.78 0.65 0.46 0.23 0.30 The steel data, of courseware not so exact as those relative to pig-iron production, for the different countries report output of steel on somewhat different bases. England and the United States, for example, report on the basis of total tonnage of ingots and castings produced; but some other countries report what is practically steel for sale, and in combining these two types of figures errors are of course introduced. On comparing the pig- iron and steel totals, it is perhaps close to the truth to estimate that, after allowances are made for scrap used, about four-fifths of all the pig iron produced is converted into steel. It would be convenient if we could drop the inquiry at this stage, and assume that the competitive ability of each country was measured by its annual steel production; but unfortunately the matter is not so simple. Belgium, for example, which does not rank particularly high as a producer, has so small a home con- sumption that her tonnage available for export is relatively very heavy. There must also be considered the form in which the steel is exported, for it is obvious that there is more profit to the producing country in shipping highly finished material than in exporting ingots or bars. It is in fact very difficult to compare the various countries, in their competitive ability, on an equitable basis. 26 402 IRON ORES The following table throws some light on the exporting impor- tance of the various countries. It is quoted from the annual statistical report of the French iron masters, and all of the figures are therefore in metric tons. IRON AND STEEL EXPORTS OF LEADING NATIONS, 1896-1909 Germany Great Britain Belgium United States France 1896 829,510 1,933,549 525,796 89,491 84,839 1897 768,176 1,955,405 542,375 230,101 100,079 1898 847,534 1,708,154 563,830 453,460 93,803 1899 777,181 1,797,367 534,464 479,991 83,863 1900 838,360 1,624,500 417,769 707,806 51,885 1901 1,410,534 1,577,070 473,155 493,277 95,821 1902 2,126,803 1,958,136 601,518 201,502 160,512 1903 2,199,984 1,970,718 738,810 146,912 234,131 1904 1,673,793 1,947,925 706,268 943,987 269,928 1905 1,983,732 2,176,297 834,946 843,898 304,485 1906 2,116,908 2,328,749 866,169 845,029 238,739 1907 1,995,206 2,457,671 877,778 790,875 298,184 1908 1,773,807- 2,071,713 814,632 591,781 350,993 1909 1,935,215 1,937,034 958,489 775,151 300,455 The products included in the above table differ somewhat in each country but may fairly be summarized as covering ingots, bars, sheets, structural and railroad material and plates. The Basal Factors in World Competition. When the question of world competition is considered with regard to a bulky and cheap product such as iron, it is evident that certain factors might be of importance in connection with smaller industries can be entirely disregarded here, and that attention can be concentrated upon a few relatively important factors. For our present pur- poses we may conveniently summarize these under the following headings : 1. Coal supplies. 2. Ore supplies. 3. Market conditions. 4. Labor conditions. 5. Financial and political conditions. Of the five factors named, two coal and ore supplies are fixed, so far as any particular area is concerned, though even here the progress of the industry may in future make available raw mate- rials now considered unprofitable. The three remaining factors are based less upon natural conditions than upon human relations and are therefore subject to more or less rapid change. In dis- WORLD COMPETITION IN IRON AND STEEL 403 cussing the question of iron production it is a common error to fix the attention too firmly on the natural factors, and to think only of the raw materials. As a matter of fact, though of course an iron industry can not develop anywhere without raw materials, the history of its growth in various countries shows that the human or shifting factors far outweigh in effect the natural or fixed ones. So far as the subject of coal reserves enters into this question, it may be summarized with sufficient accuracy for our" present purposes by grouping the coal producing countries roughly ac- cording to current estimates of their reserve tonnages. The United States and China would occupy the first group, each hav- ing probably over 1,000,000 million tons of unmined coal in reserve. The second group would comprise countries whose coal reserves are supposed to fall within the limits of 100,000 million and 500,000 million; and this group would include Germany, Great Britain, Canada and New South Wales. A third group would include countries whose reserves are less than 100,000 million tons; here would fall India, South Africa, Russia, France, Spain, Belgium, Austro-Hungary and many others. Finally we might note that the probable coal reserves of Japan, Mexico, Central America, South America, and much of Asia and Africa are almost negligible. With regard to the question of iron-ore reserves, reference should be made both to the preceding chapter on the ore reserves of the world, and to the still earlier chapters dealing with the iron- ore resources of the individual countries. These chapters con- tain sufficient data on this subject to be serviceable in the present connection. In the following summary an attempt is made to place the gen- eral facts regarding the coal and iron-ore reserves of the world in convenient form for our present purposes. With this in view, the principal countries are grouped in four classes, as regards ore- reserve tonnages, and these four are in turn subdivided into other groups based on coal-reserve tonnage. The final result is that there are sixteen possible sub-groups in which any country may be placed. By using the data on ore and coal reserves presented in this and preceding chapters, modified where necessary to suit our present requirements, the proper place of most of the impor- tant countries can be ascertained quite accurately. 404 IRON ORES The grouping here offered is, of course, not precise or final, for in addition to gaps in our knowledge of the ore and coal supplies of the Asiatic and African areas, there is the difficulty of using a few classes to express almost infinite gradations in ore and coal reserves. It is necessary, for example, to place in the same sub- group different countries whose reserves may in reality differ quite widely in importance. But with all these defects, the summary does succeed in presenting the general facts more clearly than has been done heretofore, and it offers a valuable check upon our current idea of the relative future importance of different areas. The numerals preceding the names of the individual countries show, it may be noted, the order in which they rank at present as iron producers. SUMMARY OF WORLD'S COAL AND IRON-ORE RESERVE SITUATION Known available iron ore reserves I. Ore reserves II. Ore reserves III. Ore reserves IV. Ore reserves 2000 million between 1,000 and between 200 and less than 150 tons or over 2000 million tons 1000 million tons million tons A. Coal re- AI All AIII AIV serves of 1 United > China (?) over 700,000 States. million tons B. B I B II B III B IV Coal reserves 2 Germany. 3 Great Britain. 16 Australia. between 8 Canada. 100,000 mil- lion and 500,000 mil- lion tons. C. C I CI1 cm CIV Coal reserves 4 France. 1 South Africa? 5 Russia. 7 Belgium. between 6 Austria. 10,000 mil- 14 British. lion and India. 100,000 mil- lion tons. D. D I DII Dili DIV Coal reserves Brazil. 9 Sweden. 11 Spain. 12 Italy. less than Cuba. Chile. Greece. 10,000 mil- Newfound- 15 Mexico. lion tons. land. 13 Japan. The small figures indicate the present rank of the various countries in iron and steel production. WORLD COMPETITION IN IRON AND STEEL 405 The World Competition of the Future. An examination of the data which have been presented on the earlier pages of this chap- ter is sufficient to show that at present the leading steel producers of the world are the United States, Germany, and Great Britain; and that these three are still so closely matched so far as natural resources are concerned that even slight shifts in Government policy may be enough to give one a distinct advantage over the others. For the present, and for the immediate future, this is a fair view of the case. But the situation changes sharply when we attempt to get some idea of the probable conditions a few decades FIG. 66. Chief competitive steel centers of the world. hence, for by that time differences in natural resources will have begun to tell heavily against one of the competitors. When coal and iron-ore resources, labor conditions and probable markets are all taken into account, it is difficult to escape from the conclusion that within a relatively short period, as the lives of nations are measured, the competition for leadership not only in steel but in general industries will lie between the United States, China and Germany. Even those who talk most loudly about the Yellow Peril do not seem to have realized the precise nature 406 IRON ORES of our disadvantage in the race struggle which is to come. When the East meets the West in final conflict, wherever and whenever that conflict may take place, it will be a case of full bunkers against exhausted ones; and no amount of courage or ingenuity will make up for deficiencies in coal supply. Fortunately, speak- ing from a purely national point of view, our own coal resources are so enormous that we can view this situation with some equa- nimity; but for Europe it is of more than passing moment. The Limit of Iron and Steel Development. In discussing the manner in which the world's output of iron has grown during the past, it was noted that for over a century, the increase in output has averaged about 50 percent every ten years. It was further pointed out that this rate of increase showed no signs of immediate diminution, and that if it is maintained it will imply the produc- tion of 100 million tons of iron in 1920, and of 150 million tons in 1930. If the same rate should persist to the end of the present century, the world's pig-iron output of the year 2000 would be approximately 2500 million tons. It is obvious that if we are to accept the possibilities that such tonnages will be required annu- ally, we must also be prepared to admit the most dismal fore- bodings of the ultra-Conservationists; for in most discussions of the subject the final conclusion is that we will come to wreck because of the utter exhaustion of our ore and coal supplies. This is a discouraging conclusion, and it has little of practical value, for not even a political theorist has yet shown us how to eat our cake and have it too. So it may be of interest to discuss the question from a different standpoint, and see if any results of value can be obtained. At the outset we may fairly assume that the iron production of the world will not maintain its present rate of increase forever; but that this rate will, at some period unknown, begin to fall off, so that instead of showing a 50 percent increase in output each decade, the increased production may be only trifling, and that ultimately there may be no increase at all. We know that this falling off must happen at some time; we do not know just when it will happen; but we do know that when it happens it will be due to the operation of one or more of the following three causes : 1. Actual decrease in the world's steel requirements. 2. The use of substitute materials for iron and steel. 3. Exhaustion of the ore and coal supplies. WORLD COMPETITION IN IRON AND STEEL 407 It will be profitable to take up these three factors separately, in the order in which they have just been named, and try to determine how far each one is likely to exert a serious influence over the future of the steel industry. 1. Decreased Demand. Though steel and iron are not im- perishable, the amount which is lost to the world each year is a mere fraction of the annual supply, and this fraction is becoming relatively smaller each year. The chief loss is by rusting, though the more spectacular losses to which attention is called are through shipwrecks, mine disasters, etc. As the world goes on we may fairly expect that both these sources of loss will decrease, at least relatively to the annual supply. But this implies that the bulk of the year's output is added to a steadily increasing stock of iron and steel already in use; and obviously there must come a time when the stock on hand will be sufficient for all uses, with the help of comparatively slight additions and renewals. This may be accepted as a certainty of the future; and the only question then is, whether the slacking off in demand is likely to occur soon or at an indefinitely future day. Of course this question cannot be answered with any precision, but even a summary of the main facts bearing on it brings out some points of interest. If we could confine attention to Europe and the United States, it could be said that both the annual output and the consumption have shown steady and large increases for many years; but that in spite of this fact there are certain features indicating that the turning point may be nearer than expected. There must be noted, for example, the fact that in certain lines the industry is not progressing as rapidly as heretofore; the rail-mill capacity of the United States, as an instance, is probably almost twice as great as the average annual requirements. And there is the far more important fact that the great producing nations have, during the past decade, been led to depend more and more upon the export trade, not only during years of depression at home, but in normal years. It is indeed very doubtful if the civilized por- tion of the world, confined to its own markets, could hold the 50 percent rate of increase for more than a decade longer. But the outlook becomes more encouraging when the other parts of the world are recalled to mind. At present European and American mills supply the iron and steel requirements of a civilized area which contains about one-third of the inhabitants 408 IRON ORES of the globe. At first glance it might be assumed that the sudden modernization of the world would afford a market for about three times our present annual steel production. This, however, would be an error of the same type which is encountered when the western United States is compared, as a possible steel or cement market, with the east or middle west, on a purely popu- lation basis. Steel consumption is not entirely dependent on population; and large portions of the earth will never be as im- portant consumers as Europe. If we had any exact data on the coal reserves of the world they might serve as a better basis of comparison than population. But since exactness is not required in the present discussion, it might perhaps be safely assumed that if the entire world could be suddenly modernized up to the stand- ard of Europe and the United States, a market for between 125 and 175 million tons of steel per year could be found now. This is somewhat more than double the present output of the world; but it is only about what the present rate of growth will produce by 1930. So that even on this basis, two decades more may see the beginning of a decreased rate of growth in the steel industry of the world. In an earlier chapter, where the duration of the world's iron supplies is considered, calculations have been made on this basis. 2. Substitute Materials. The second possibility is that, even though the world's requirements for structural material continues to grow at the present rate, this demand may be partly or wholly satisfied by the use of some other metal or of some non-metallic material as a substitute for iron and steel. This is of course a possibility, and one that appeals strongly to popular writers on the subject. It is very easy to refer casually to the possibilities of electro-metallurgy, to call attention to the growth of the cement industry, and to mention the development of aluminum manu- facture. But when we pass out of the domain of magazine writ- ing and into the realm of facts, the solution offered does not seem so simple or so promising. The inherent difficulty of the matter is brought out sharply as soon as we recall that an efficient substitute must be cheaper than the material for which it is substituted. This statement would be subject to exceptions, but in considering a large-scale industry it may be accepted as substantially true. More than that, when we are dealing with some hundreds of millions of tons WORLD COMPETITION IN IRON AND STEEL 409 per year, it is clear that in order to be cheaper, the substitute material must be naturally very common. Now, if the reader will refer back to the tables in Chapter II, where analyses of the rocks of the earth's crust are presented, it will be seen that the only elements commoner than iron are silica and alumina, though lime and magnesia follow close behind. It is out of this group of four elements that our theoretical substitute for iron and steel must be manufactured. The substitute may be a metal, an oxide, or a silicate compound. My views as to the possibility of securing a substitute for iron from this group are perhaps unorthodox, from a popular stand- point, but they have some basis in fact, and may as well be stated. It must be borne in mind that we are not dealing with unknown elements or compounds, but that all of the possible components of the group are very well known. We have already a very fair idea of the properties which maybe expected from aluminum, silicon, silica, lime, magnesia, lime silicate, etc.; and in no case does there appear to be any serious chance that a product can be developed to take the place of any large portion of the world's iron requirements. Some of the theoretically possible materials can be dismissed with mere mention, and even the two best known aluminum and Portland cement do not seem promising. Any study of the resources and possibilities of the aluminum industry will lead to the conviction that this metal will become a very serious competitor for copper, that in time it may replace part of our tin-plate requirements, but that it is extremely unlikely that it will cut into the iron trade in any other way. As for cement, a rather intimate acquaintance with that industry leads me to consider cement not as a competitor to steel, but as a subsidiary material. Portland cement, as at present made and sold, does- not seriously reduce the requirements for iron at any point, and in some ways tends rather to increase those require- ments. It is of course possible that cement, as it may later be made and used in another form, may have more influence over the steel industry. 3. Raw Material Exhaustion. It is a current idea that exhaus- tion of iron ore and coal reserves will occur so soon as to put a stop to the normal development of the iron industry. In the present study, as shown by the paragraphs relating to the decreased demand for iron, this conclusion, is not accepted. So far as such 410 IRON ORES a matter can be decided far in advance, it seems far more probable that the first slackening in our rate of growth will take place long before the ore and coal supplies of the world show signs of ex- haustion; and that decreased demand will become effective long before we have to accept any substantial reduction from existing standards of ore grade. Much of this matter has been gone over in Chapter XXIX, where the probable duration of the world's ore supplies is discussed in some detail. Here it will only be necessary to summarize the main facts of the case. No good estimate of the world's actually available coal supply is known to have been made, but a series of partial estimates will give a basis good enough for our present purposes. It may then be assumed that to meet the world's total future fuel require- ments there are some four million million tons of real coal in known coal fields and at reasonable working depth. To this, for the more distant future, we might add very heavily for lignites and low-grade coals, for new fields, and for coal at depths now con- sidered unworkable. At present the world is using this supply at the rate of some one thousand million tons per year. The coal supply will hardly give out at any early date, no matter how fast the demand increases; and as long as there is any commercial coal left, the iron industry will get its share of it. As for the duration of the ore supply, that has already been discussed in sufficient detail in Chapter XXIX. Here it is only necessary to say that the world's supply of good ore will suffice all probable demands of the iron industry for a century or so more, even allowing a rate of increase which the present writer does not think likely to occur; while if we contemplate the use of lower- grade ores several centuries may elapse before the ore supply will be in serious danger, even assuming the same remarkable rate of growth in ore utilization as occurred during the nineteenth century. CHAPTER XXXI QUESTIONS OF PUBLIC POLICY There remain to be considered certain questions regarding the relations which exist, and those which should exist, between the Government and the iron-mining industry. Some phases of these questions have been touched upon in the course of the chapter devoted to ore ownership in the United States, but a more general treatment of the subject seems advisable in the present place. There are, in addition, a number of contact-points be- tween Government and private enterprise which may profitably be at least summarized here. The Limits of State Interest. For almost all of the nineteenth century, the public policy of both Great Britain and the United States was based, more or less explicitly upon purely individual- istic theories of State action. Until within the past ten years any suggestion of active Government control or intervention in in- dustrial affairs, except to insure justice between competitors, would have been looked upon as an idle theory, with no possibility of acceptance here. So far as mine control was concerned, no member of either political party would have dared to suggest any- thing more radical than that the Government might, perhaps, lease its mineral lands instead of giving them away. Thinking men always assumed that there was the possibility of future trouble dormant in the hard-coal situation, but that was looked upon as a special and very exceptional case. With the conservation movement of 1906, however, we entered upon new ground. From that time on the change in popular sentiment has been very obvious, and of course our politicians have changed with it. To-day there is no hesitation about pro- posing Government control or actual ownership of any kind of property or industry; and there is as yet no sign that this move- ment is approaching its culmination. Of course, if we accept the idea that all of our industries are to become socialized, there is no reason to interpose an argument 411 412 IRON ORES on behalf of any special industry or group of industries. Pure socialism is conceivable, but it is doubtful if any of our politicians are courageous enough to declare openly in favor of its adoption. On the other hand, if we are to stop at any point short of socialism, there must be some basis for deciding where that stop is to be made. Even a politician must think, occasionally, and attempt to supply some justification for his votes and actions. Assuming that we are to have a Government of .the type here called Progressive, and in England Liberal, we may allow for a considerable extension of State activities, provided- they follow some recognizable and logical course. And, for our present pur- poses, it is well worth while attempting to determine what that course should be, as applied to the mining industries in particular. There will, I think, be substantial agreement as to some basal features, and violent disagreement as to some details of actual practice. The Encouragement of Development. One feature upon which there should be close agreement among all parties relates to the general attitude which the State should take toward industrial development. In the modern industrial State all the interests of the Government favor the most rapid possible development of natural resources, consonant with commercial profit. As applied to the mineral industries this attitude involves two distinct phases of Governmental activity. First, there should be a reasonable inducement or encourage- ment for active search for new mineral deposits. Such encourage- ment would primarily take the form of offering the discoverer a reward for successful effort. This reward would naturally in- clude a free or cheap title to the discovery, whether that title be fee simple or leasehold. The reward would become more certain if the title be clear, definite, and free from the probability of vexatious and expensive litigation. Unless private exploration is to be rewarded in this fashion, the Government must be prepared to undertake both search and development itself, and past history does not justify much hope in this regard. Second, there should on the other hand be some requirements that development should be carried on as rapidly as commercial conditions justify. This may be secured by a sliding scale lease, the rental increasing annually; or by revocation of title in case actual shipments have not taken place within a certain number of QUESTIONS OF PUBLIC POLICY 413 years after discovery. But since it is commonly to the interest of the owner to prosecute work as rapidly as possible, all such requirements should be so drawn as to give him the benefit of the doubt, and merely be designed to protect the State from inten- tional pocketing of ore reserves. This brings us, naturally, to another phase of the relations of the State to mining industries. The Prevention of Monopoly. The State has, of course, an interest in seeing that the mineral properties which it gives, sells, or leases are not used as the basis for extortionate prices on the part of the new owners; and it is justified in taking proper steps to insure that monopoly of raw materials be prevented. On this point there is probably general agreement, but there is wide difference of opinion as to the actual facts in any given case, and as to the preventive or remedial action to be taken. During the past decade, for example, there have at various times been charges that certain raw materials were being acquired on a monopolistic scale by one or more corporations. Among the mineral raw materials so discussed may be named iron ore, coking coal, aluminium ore, anthracite coal, and a few minor products. On the assumption that such monopoly existed, there has been a widespread demand for restriction of ownership to some definite percentage of the total supply. This has involved certain errors as to the facts of ownership, and more important errors as to the feasibility and effects of extensive ownership. In reality there are very few mineral materials which could be completely monopolized in ownership at any .reasonable cost. Diamonds are, as we know, subject to highly artificial price regu- lation; and potash and nitrates are held in what is substantially a Government-aided monopoly. A few minor products are controlled quite completely by either producers or refiners. Of the metals, tin, nickel, and aluminium are the only impor- tant ones offering much possibility of control through ore owner- ship. The world's known reserve of tin ores is small, and a company using much of the metal might do well to insure against extortion by owning part of the supply; for the annual output is cornered with some frequency. Nickel is also scarce, or rather it occurs at only a few points in workable tonnage. Aluminium has been controlled rather through patents than by ore ownership, though the latter element also is supposed to exist. Lead and silver, produced mostly as by-products, could not 414 IRON ORES possibly be controlled through ore ownership, but on the other hand offer distinct opportunities for the refineries. Iron ores cannot be controlled as to tonnage, and as yet no control exists on any saner basis. The same may be said of coking coal, or of bituminous coals in general. The investment required would make mine control impossible commercially. The situation as regards anthracite coal is very different from those which have been noted, and furnishes the weakest point in the entire matter. The companies involved have not been notable for their tactful handling of a question which required very careful treatment; and the results of the pending suits may easily be more surprising than pleasant. Finally, the copper situation can not be discussed adequately here, and it can only be said that no successful control of copper prices has ever been based upon actual monopolistic ownership of mineral properties. As a summary of the entire matter, it may be said that except in a few very unimportant instances price control is never based upon monopolistic ownership of mines or mineral properties. THE CONSERVATION OF IRON-ORE RESOURCES In several of the preceding chapters of this volume it has been necessary to allude casually to the Conservation Movement which became so striking a feature of the political landscape during the second administration of President Roosevelt, and it is possible that the allusions were not always made in the most respectful manner. The disrespect, however, is not due to the conservation idea itself, for that deserves very careful attention; but to the way in which its more extreme advocates attempted to support and execute it. In this regard the Conservation Move- ment merely shared the fate of all reforms. All of our past experience goes to show that any new and important view as to government policy will inevitably, at the outset, meet with so much opposition and ridicule that its supporters will finally take a far more advanced stand than if the reform had been accepted quietly. The result is, of course, that there is a very violent expression and execution of the reform, followed by a natural reaction from the excess of reform; and then, at a later time, the matter is taken up again and put into execution in a reasonable QUESTIONS OF PUBLIC POLICY 415 way. As regards conservation of natural resources we seem to have passed through the successive stages of earnest enthusiasm, of extreme and senseless popularity and of reaction. It is now possible to discuss the matter without treating it as a purely partisan affair. Whatever extremes it may have been led into later, the Con- servation Movement at the outset had a very sound basis of fact and argument. It is true that certain of our natural resources are being wasted or used uneconomically. Since this enhances the cost of the output, and decreases the total supply, it is a mat- ter of general public interest, and not merely a private business affair. It is idle to say that an owner may do as he pleases with his own property. We know, as a matter of fact, that as soon as he develops ideas in this regard which run counter to sound public policy, a way will be found to control the situation legally. The waste or uneconomical use of a natural product such as timber is serious, but is it obviously far more serious when the product wasted is one, like ore, which does not reproduce itself. If it could be established that existing conditions as to ownership do encourage waste of ore, there would be some reason to place legal restrictions upon such private rights as led to such waste. But, unfortunately for this particular application of conservation principles, it has never been suggested by any competent author- ity that private ownership of iron mines leads to waste of ore. It has, however, been pointed out that excessive competition among a multitude of small owners may very easily lead to ex- travagant and wasteful mining methods; but that is an argu- ment in favor of the large corporation as against the small owner. On that account it is not pressed to the front by advocates of government control, even though its truth is commonly accepted. Bearing in mind the enormous ore reserves known to be available, it is difficult to find any good reason for advocating government control of the iron-mining industry, based on any theory as to the necessity for conservation. In discussing the conservation of iron ores, it is still necessary to limit consideration to its effects on the welfare of the country in which one lives. There may come a time when national bound- aries will be of merely historic interest, and when the nations will compete in friendly rivalry for the privilege of doing each other the most good. The man of that time if indeed that sex 416 IRON ORES has much to say about the matter will be able to say with truth that he looks upon the whole world as his country. But at pres- ent, though certain of the purer spirits of the Peace Congress have already attained that advanced stage of enlightenment, the world in general is still unconvinced. The nations still compete for business, with little of either kinship or kindness apparent, and we must still take a national view of any public policy. Disre- garding the distant outlook, we must deal with conditions as they are, and as they affect the United States. Such restriction of ideas and policies suggests that, though no obstacle should be placed in the way of the cheapest possible development of our own iron ores, the most effective conserving agent will be the free use of foreign ores whenever they are economically available. This implies that our tariff against foreign ores, in force until quite recently, was an economic mis- take; and that it should not be replaced under any circumstances. Further, it implies that export duties levied by foreign govern- ments upon ores which may reach our furnaces are, in reality, discriminations against our steel industry. The Taxation of Iron Ores. Another point of contact between Governmental and private activities is furnished by the taxation of ores and of ore reserves. Until recently this was hardly a matter of serious interest, for in the older states the general practice has been to tax mining property on a basis roughly corresponding to the value of machinery and improvements in sight, and to pay no attention to the possible value of the ore reserves. In the Lake Superior region, however, other methods of taxa- tion have been devised and put in force or perhaps it would be fairer to say that taxation has actually been made methodical. For, whatever we may think of the different methods in use in the Lake states, they all have at least the merit of being exact and based upon intelligible rules. Both Minnesota and Michigan levy a tax upon iron-ore re- serves, but the two methods differ sharply in their underlying theory and in their practical effects. Minnesota divides the ores into a number of classes, classified according to ore grade, accessi- bility and other factors; and then assigns a certain tax rate per ton to the ore of each class. Michigan based its tax system upon the probable net annual return from the various properties, so QUESTIONS OF PUBLIC POLICY 417 that though expressed as an ore reserve tax, it is really a tax upon probable net earnings. From the economic point of view, the Michigan plan seems to be sounder than the Minnesota plan, though of course the relative effects of the two plans will be really determined by the manner in which the different theories are actually put into practice. After having been mined, iron ore of course becomes personal property, and as such is taxable at any point on its journey where it remains long enough for a valid taxing right to be established. In the case of the Lake Superior ores, there are three points at which ores are normally carried in sufficient quantity to make this possibility of interest. The three stocking points are (1) at the mines and upper Lake docks; (2) at lower lake docks and at (3) the furnaces. Since the states of Michigan and Minnesota have already taxed the ore in the ground, no fair claim could be set up to place an additional tax on ore in stock-piles in the Lake Superior region. With regard to lower lake ports the case is different, and here at least one state Ohio is ready to levy a tax on ore in transit. In discussing the transportation of ore from the Lake Superior district to the furnaces, it was noted that the stocks of ore carried through the winter at ports on Lake Erie are increasing each year. The figures on page 209 will serve to give some idea of the ore tonnage normally carried at Lake Erie ports through the winter, and which may now be subjected to local taxation. In considering the effects of taxation in this connection, it will be well to bear in mind that the levying and collection of a tax, whatever its nature, does not create wealth. It merely takes wealth from one class of citizens and turns it over to the govern- ment to be spent, theoretically, for the common good. In the case of a special tax on an article of commerce or industry, such as we are now considering, it is obvious enough that the original payer of the tax will not assume the burden permanently, but will shift it as promptly as possible to the purchaser of his goods, by raising prices to cover the tax. This process, carried out at each stage of the industry using goods, finally results in causing the " ultimate consumer" to pay -higher prices for the finished product. Export Duties. The question of the ultimate payment of tax burdens becomes a matter of still broader interest when the tax 418 IRON ORES is levied in the form of an export duty on ore. Several countries have done this, for several different reasons. It is justified commonly on the argument that ore mining does not imply as much industrial development or wealth creation as steel-making; and that consequently the country may reasonably levy a tax on exports of raw materials designed for finishing in another country. Sweden, Spain, Brazil and Newfoundland have, in one form or another, levied export duties on iron ores. In the cases of Spain and Sweden the issue is frankly stated; in Brazil it takes the form of a port tax; in Newfoundland a royalty was levied as a substi- tute for a proposed export tax. The effect of an export tax will differ, according to competitive conditions. When the ore so taxed is being taken by a furnace district which requires it very much, the amount of the tax can usually be added to the price of the ore. But when the taxed ore is subject to keen competition from ore mined elsewhere, the tax can not be so shifted to the furnace, and in that case it falls as a direct burden on the miner CHAPTER XXXII QUESTIONS OF PRIVATE POLICY As in dealing with questions of public policy, the preceding discussion has left untreated, or inadequately treated, certain matters relating to the proper policy of individuals and corpora- tions with regard to iron-ore reserves. The present brief chapter will touch upon some of the more important of these questions, and will suggest certain points which, in the opinion of the writer, are deserving of consideration. Reasons for Reserve Ownership. In an earlier chapter of this volume, it has been pointed out that the ownership of large ore reserves implies a steady burden upon the company owning them; and that there are actual financial limitations to excessive re- serves, regardless of legal or other considerations. This line of argument might be extended, of course, to operate as an objection to any ownership of ore reserves whatever; and it is perfectly true that if a company were assured of being able to cover its ore requirements in the open market, during twenty or thirty years to come, it would not be financially justified in own- ing ore reserves, unless they were obtainable at a bargain price.. But it would be difficult to give such assurances in most cases. The merchant ore market in the Lake Superior district is large, but for a large steel company to depend entirely upon merchant ores would be considered hazardous by most people. It should at least own sufficient tonnage to be sure that, under no circum- stances, would it be entirely at the mercy of general market con- ditions. It might not use this owned tonnage in normal years,, but it should be there ready for use. If the ownership involves extra costs, they may fairly be looked upon as insurance against the possibilities inherent in a boom year. For companies not located along the Atlantic coast, or within the Lake Superior shipping radius, the argument for ownership of ores is even stronger. For in other areas there is practically no merchant tonnage on which one could depend in any year. Further than this, there are reasons connected with the financ- 419 420 IRON ORES ing of steel companies which practically force the ownership of large reserves. With the exception of a few small and particu- larly strong companies, dependence for funds is on one or more of the great banking houses. During recent years there has been a growing tendency, when furnishing funds for expansion and development, to insist upon the ownership of large raw material reserves. The banking view, due perhaps to official and other hysteria over raw material exhaustion, is that the ownership of such reserves constitutes a guarantee of higher value than the other tangible and intangible assets. Perhaps this idea has been too strongly emphasized at times, but it is substantially sound after all, and so long as it is commonly accepted among financial houses it must be reckond with by manufacturers. Ore Reserves and the Banking House. The industrial reasons for holding relatively large reserves have been discussed in an earlier chapter, and the financial considerations which operate to place a maximum limit on reserve holdings have also been noted. There is, however, another point of contact between financial conditions and ore reserves which requires some consideration, for it has afforded one of the more pressing reasons for the accumu- lation of such reserve tonnages. Until the development of the great consolidations some twenty to thirty years ago, the relation between the banking house and the steel or iron company was limited in extent, discontinuous, and comparatively unimportant in effects. In the cases of a highly successful firm or closely held corporation, this is still true. Such industrial units as the old Carnegie partnership, the Jones and Laughlin Company of the present day, and such successful smaller units as La Belle and Woodward are only indirectly dependent upon banking support and direction. Industrial units of this fortunate type are not, therefore, steadily and normally subject to banking opinion in the conduct of their business. In the case of the majority of corporations, however, the rela- tion between the manufacturing company and the banking house has become very intimate, continuous and important in its effects. It has affected the question of ore-reserve ownership to a very striking degree, through the way in which bankers have in recent years laid stress upon the desirability of raw-material control. Ten or twelve years have sufficed to bring about a very definite, though rarely clearly stated opinion in this regard, and it will QUESTIONS OF PRIVATE POLICY 421 be of advantage to trace briefly the stages of its growth, and to attempt some forecast of its probable future trend. After a few years of operation had shown that the newly formed Steel Corporation was able to weather industrial storms, circum- stances brought about public statements by several prominent officials. Made in the first flush of success, some of these state- ments contained elements of later trouble, and have since been repented in sackcloth and ashes. However we may look upon them now, these statements had a very obvious and definite effect upon public opinion in general, and upon banking opinion in particular. To the casual reader it seemed certain that one very important element in the success of any steel company must be the ownership of ore reserves, and of very large ore reserves at that. To the banker there was the additional appeal, that only through ownership of such reserves could there be any guarantee of the ultimate value of a bond issue. A few years later came the pessimistic Swedish estimate of world reserves, and our own Conservation movement, both of which have been discussed in an earlier chapter. Taken together with the prevailing industrial sentiment, there is no reason for surprise that insistence upon huge raw-material tonnages became a cardinal principle w r ith many banking houses. It is probably safe to say that for some eight or ten years past there has been little chance of raising money for any new industrial enterprise unless more than adequate reserves of coal and ore could be shown. Perhaps the matter was overdone, but there was an element of truth in the prevailing opinion, and it would be unfortunate if recent discussions caused a reaction in the other direction. It is still advisable for a steel company to own ore reserves, and large ore reserves. But we must limit our ideas as to the possibility of monopolistic ownership on a mere tonnage basis, and we must pay more attention to other factors. The thing that counts is not the mere ownership of enormous tonnages; it is the control of the most desirable tonnages. The United States is full of unmined ores, but nothing can shake the dominance of the Lake ores over the best portion of the American steel market. The world has ample supplies of ore scattered widely over its surface, but among them all it will finally be found that one is so located that its control will enable its owners to dictate price policy on both coasts of the Atlantic. It is not mere tonnage that must 422 IRON ORES be aimed at, but grade, location, mining costs and shipping advantages. Effects of Overvaluation. A question which still remains to be considered relates to the effects of overvaluation of ore re- serves on the various parties who may be considered to have rights in the matter. One phase of this subject has already attracted considerable public attention, and in an earlier chapter it was pointed out that one of the principal complaints against the existing status of ore ownership was based upon the view "that, regardless of extent of ownership, the steel companies are in a position to earn excessive profits on their finished steel be- cause of assumed excessive valuations placed on their ore re- serves." This view will be discussed now, but it is not the only thing which requires attention in this connection, for if over- valuation exists it is far more detrimental to other parties than to the consumer of the finished product. It is easy enough to make vague general statements as to the effects of overvaluation, but as these may lead to erroneous conclusions, it will be better to start from a definite basis and follow out closely the different effects which will arise from an initial error in valuation. For our present purposes we may assume the case of a steel company having ore reserves amounting to one thousand million tons. We may further assume that a fair present valuation for this ore would be fifty cents per ton; but that for one reason or another the company has carried it at a valuation of one dollar per ton. What effects will spring from this overvaluation; and how will the company itself, its security -holders, its competitors, and the consumers of its product be affected? First of all, it is obvious that in our assumed case, the assets of the company, as shown on the balance sheet, are greatly inflated, for ore properties which should be given a total value of five hun- dred million dollars are being actually carried at a valua- tion of one thousand million dollars. The effect of this upon the stabilit}^ of the company itself, and on the prospects of its security-holders, will depend on how this excess is balanced on the other side of the sheet. It is clear that there is a large nominal value which could not be realized on, and if bonds have been issued to such an extent that any part of their security depends upon the ore valuations, the security of the bonds and the stability of the company will both be affected very QUESTIONS OF PRIVATE POLICY 423 seriously. On the other hand, if the bonds are secured by other physical property, and the excessive ore valuation is balanced merely by stock issues, the stability of the company will not be endangered but the stock issues will show, by their market price, that the public has discounted the overvaluation. Investors who bought any of the issues without knowledge that the assets were unfairly valued will find that both the security of their issues and their market value have depreciated when the truth becomes known. New investors, however, can not complain on either ground. Turning to the effects of overvaluation on operating conditions and competition, it is to be noted that the company which has practised it at the outset will have to pay for it each year. If our assumed company uses 40,000,000 tons of ore annually, to make 20,000,000 tons of steel, it will have to charge off $40,000,- 000 per year for amortization of ore reserves. A competitor of the same size, which has valued its ore fairly, will have to charge off only half this amount. If the two companies sell their steel at the same average price, the conservative company will actually show $1.00 per ton more profit than the other. So far as competition is concerned, overvaluation therefore offers diffi- culties, and not advantages. Finally, the question arises as to the effects of overvaluation of raw materials on the prices of finished products. In private life even the wording of the question would determine the answer, for no one imagines that a merchant, by overcharging the cost of his goods, can really sell them for higher prices than do his less im- aginative competitors. It is certain that, in similar fashion, no amount of overvaluation of ore reserves can possibly have the slightest effect upon the selling price of finished steel. The price of the steel will be regulated by competition; if there be no free competition, it may be regulated by combination; but in neither case will an imaginary valuation placed upon ores have any effect whatever on the matter. It is true, on the other hand, that over- valuation of the ores will serve to conceal the true rate of profit, but that is equally true of overvaluation of any other part of the capital used in the industry. To sum up the matter, it may be said that overvaluation of ore reserves puts the balance sheet on a permanently false basis, and on this account alone it is reprehensible. Its effect on the 424 IRON ORES company and on holders of securities will be either dangerous or merely objectionable according to the kind and amount of securi- ties outstanding against the ores. So far as new investors are concerned, the effect in either case is negligible, for it will have been discounted by market prices. With regard to competitors, overvaluation places the company practising it at a distinct disadvantage. So far as consumers are concerned, overvaluation is of no interest. It may conceal profits, but it can not produce them. The Strategic Value of Large Tonnages. There is one phase of the matter of iron-ore reserve valuation which is rarely alluded to in print, and not commonly given its proper value in corporation practice. Reference is made to the technical and moral value possessed by very large reserve tonnages, over and above the value which they would have as mere aggregations of ore. It is obvious that there are certain difficulties in the way of free dis- cussion of this subject, for the proper commercial utilization of such large reserves may involve acts or suggestions which a zeal- ous government would consider as tending to restrain trade. But it is at least possible to outline the subject broadly, in the hopes that actual developments will in later time serve as more definite illustrations. From the purely technical standpoint it would be safe to as- sume that if an iron-ore deposit containing fifty million tons of ore is worth a certain sum, an exactly similar deposit containing five hundred million tons would be worth exactly ten times that sum. This is true technically, but not commercially, because in passing from a fifty million ton reserve to a five hundred million ton holding, we have in reality gone across a very important border line between two entirely different classes of holdings. A deposit containing fifty million tons of ore must be valued merely as incidental to the existing iron industry; it will not induce or justify any extensive departures from current metallurgical prac- tice of furnace locations. Its ore must be valued by the ton, in competition with other ores. But in dealing with ore reserves figuring up in the hundreds or thousands of millions of tons, the conditions are changed more radically than is commonly understood. A fifty million ton deposit must be of well-known and purely conventional type before interest will be attracted by it. A five hundred or QUESTIONS OF PRIVATE POLICY 425 thousand million ton deposit on the other hand, may show very uncommon ores or mining conditions without seriously affecting its value. The large tonnage will justify the extensive invest- ments in mining and transportation which may be necessary; it will justify attempts to modify concentrating or metallurgical processes to fit the new ores; it may bring about a shift in the location of furnaces and steel mills. These essential differences in value between ordinary and very large holdings may be better brought out if concrete examples are suggested. Fifty million tons of low-grade aluminous ore does not sound inviting, but the three thousand million ton re- serve in Cuba is distinctly a commercial factor. One hundred million tons of ore in the interior of South America, even if of exceptionally good grade, might lie undeveloped for several more centuries; but the existence of seven thousand million tons in Brazil can not be overlooked industrially. Fifty million tons of ore lying in a bed under the Atlantic Ocean, so as to require submarine mining, would hardly affect the steel trade; but the four thousand million tons of Newfoundland may be the most important single factor in our next stage of progress. It will be seen that there is a distinct additional value attaching to very large ore holdings, this additional value being entirely out of proportion to increase in mere tonnage. It is difficult, if not impossible, to express it in figures, but it certainly exists and must be allowed for in any valuation of such holdings. As soon as an ore-holding reaches a size to justify changes in metallurgical practice or plant location, its ores acquire a technical and moral value far above that which .they would have if merely sold on a competitive basis in an open ore market. It may be that the present guardians of our political freedom and business relations might object to the use of the word moral in the last paragraph, and point out that some of the implications which could be drawn from this statement of the subject might result in business transactions not entirely consonant with the principles of the New Freedom. This may be admitted, but fortunately the examples chosen were selected from ore deposits occurring outside our borders; and the most important of them is in a colony ruled by law and Englishmen. Of course large ore tonnages, as well as small, can be utilized by smelting into iron and conversion into steel; and the present discussion merely 426 IRON ORES suggests that, under certain circumstances, they have other utilizations which give them additional value. The Low-cost Producer. It is entirely conceivable that a single corporation mighf control 60 percent of the steel output of a country, without being really in a position to exert much influence on prices. This situation would exist if its 60 percent did not include the low-cost production of the country, for in the long run it is the low cost producer who will fix the minimum prices during depressions, and who will come close to fixing the average range of prices during normal times. The only time that a high-cost plant has much effect on prices is during abnormal booms, when the maximum price obtained is likely to be deter- mined by the cost at the dearest mill. This gives the low-cost producer a strategic importance entirely out of relation to the size of its output, provided only that this output is sufficiently large to make some impression on the gen- eral market. Those who have kept in touch with the copper situation during recent years will realize this, and can offer in proof the manner in which one mine has served as a weapon in price disputes. The same thing applies to the steel business, and indirectly to the section of it in which we are at present interested the control and handling of iron-ore reserves. Elsewhere I have stated, in very strong terms, the opinion that anything like monopoly of iron-ore reserves is now impracticable owing to the tonnages which would have to be taken into account. That statement does not require any qualification, but it must be read in connection with the present section before its bearing is fully understood. The company which controls any large tonnage of the cheapest ore in the world, or the cheapest portion of the ore supply of any given furnace district, does not need to strive for mono- poly. The advantages of monopoly come automatically to the low- cost producer. And they come in a way which is both legal and legitimate. The question of effective monopoly, therefore, does not depend entirely upon the percentage of an industry which is controlled by one company; but upon the ownership or control of the critical or low-cost portion of the industry Without this, mere size will avail little; with it, price control may usually be made effective without necessarily acquiring any preponderating per- centage of the industry. INDEX For general topics, reference should be made to the very detailed table of contents, the index being designed chiefly for specific or doubtful headings . Acid bessemer process, 149-151 Acid open-hearth process, 149-151 African ores, 335 Alabama, 132, 220-226, 228-235 Alberta, 284 Algiers, 336 America, Central, 295 North, 181-296 South, 297-304 . Analyses of iron minerals and rocks, bog ores, 50 brown ores, 25 carbonate ores, 26, 53, 319 chamosite, 26, 328 earth's crust, 9 glauconite, 26 goethite, 25 greensand, 26 hematite, 24 igneous rocks, 16 limnite, 25 limonite, 25 magnetite, 23 pyrite, 27 pyrrhotite, 27 sedimentary rocks, 18 siderite, 26, 53, 319 silicate ores, 26, 328 thuringite, 26, 328 turgite, 25 xanthosiderite, 25 of iron ores, Africa, 336 Alabama, 65, 223 Austria, 26 Algiers, 336 Australia, 338 Austria, 328 Birmingham, U. S., 65, 223 Brazil, 302 Analyses of iron ores, British Columbia, 285 Canada, 50, 280, 282, 283, 284, 285 Chile, 303 China, 331 Cleveland district, 319 Cuba, 289, 291 England, 53, 317, 319 France, 308, 314 Germany, 26, 308 Greece, 329 Great Britain, 53, 317, 319 India, 333 Japan, 332 Lake Superior district, 202- 204, 214 Lorraine, 308 Middlesboro, 319 New Brunswick, 280 Newfoundland, 65, 275 New York, 255, 260 New Zealand, 338 Nova Scotia, 282 Ohio, 261 Ontario, 283, 284 Quebec, 50, 283 Russia, 326, 327 Spain, 324 Scotland, 53 Sweden, 50, 322 Tennessee, 65, 227 Utah, 267 Venezuela, 300 Wabana, 65, 275 Wales, 53 Wyoming, 267 Anticline, 19 Asia, iron ores of, 330-334 427 428 INDEX Atikokan range, Canada, 194, 283 Auger drilling, 120 Austria, ores of, 327 Australia, iron ores of, 337 Baraboo range, U. S., 194 Basic bessemer process, 149-151 open-hearth process, 149-151 Beach sands, 48 Bell Island, Nfd., 273-277 Belgium, 329 Benson mines, 255 Bessemer, acid, 149-151 basic, 149-151 Birmingham, U. S., 222-225 Blast-furnace requisites, 142-151 Blue billy, 27 Bog ores, 49 Borings, 118-120 Brazilian ores, 300 Briey, France, 305-310 British Columbia, 285 India, 333 Brown hematite, 25 ores, 25 Calif ornian ores, 268 Canadian ores, 278-287 Carbonate ores, 26 Central American ores, 295 Chamosite, 26, 328 Charcoal as fuel, 144 Chemical composition; see Analyses. Chicago district, 140 Chile, 302 China, 331 Chromium in ores, 99, 103, 105, 154, 158 Churn drill, 120 Cleveland district, 318-319 Coke fuel, 144 Columbian ores, 297 Composition; see Analyses. Core drilling, 119 Cornwall, Pa\, 258 Crystal Falls district, U. S., 194 Cuban ores, 288-292 Cumberland district, England, 315- 318 Cuyuna range, U. S., 194 Density of gangue materials, 124 of ores, 123-126 Diamond drilling, 119 Dikes, magmatic, 101 Drilling methods, 118-122 auger drill, 120 churn drill, 120 core drill, 119 diamond drill, 119 Ecuador, possibilities, 302 Electric smelting, England, 315-322 European ores, 305-330 Exploring methods, 118-122 Export duties, 417 Ferrous and ferric iron, 20, 21 Fertilizer slags, 151, 310 Fierro, U. S., 268 Finland, 322 Florence district, U. S., 194 Fluxes in furnace, 145 Foundry irons, 148 France, ores of, 305-311, 314, 315 Fuels in furnace, 144 Gangue materials, 157 Germany, ores of, 305-314 Georgia, ores of, 225, 228 Glauconite, 26, 54-57 Goethite, 25 Gossan ores, 90 Gravity of gangue minerals, 157 Gravity of ores, 157 Great Britain, ores of, 315-322 Greece, ores of, 329 Greensand, 26, 54-57 Guianas, possible ores, 297 Han Yang operation, China, 331-333 Hartville district, U. S., 265-267 Hematite, composition, 24 INDEX 429 Igneous rocks, 14-16 India, ores of, 333 Italy,' 329 Iron carbonate, 26 oxides, 20, 24 Ridge, Wisconsin, 213 silicates, 26 sulphides, 27 Japan, ores of, 331 Lake ores (bog ores), 49, 50 Lake Superior district, U. S., general description,* 194-214 geology of ores, 81-84, 194-201 mining costs, 129-132 Lancashire, England, 315-318 Laterite ores, 98 Limnite, 25 Limonite, 25 Longdale, Va., 231 Loon Lake, Canada, 194, 283 Lorraine, ores of, 305-311 Lowmoor, Va., 231 Luxembourg, ores of, 305-311 Lyon Mt. mines, N. Y., 255 Magmatic dikes, 101 Magrnatic segregations, 101 Magnetite, 23 Marquette range, U. S., 194 Mayari, Cuba, 290 Mayville, Wis., 213 Mesabi range, U. S., 194, et seq. Mexico, ores of, 294 Michipicoten range, Canada, 194, 283 Middlesboro district, England, 318, 319 Minas Geraes, Brazil, 300 Mineville, N. Y., 253 Moa district, Cuba, 290 Native iron, 22 New Brunswick, 279-280 Newfoundland, 273-278 New Jersey, 255 New Mexico, 268 New York, 253, 255, 259 Nickel in ores, 99, 103, 105, 154 North America, ores of, 181-296 ' ore reserves, 385 North Carolina, 239 Norway, 322 Nova Scotia, 281-282 Ohio, carbonate ores, 260 Ojibway mill and ore exports, 186 Ontario, ores of, 283, 284 Oolitic iron ores, 62-64 Open-hearth process, acid, 149-151 basic, 149-151 Oriskany district, Va., 77, 80, 228 Pennsylvania, ores of, 258-260 Peru, ore possibilities, 302 Phosphorus in ores, 147, 155 in pig iron, 151 slags, 151, 310 Pig iron, allowable phosphorus, 150 uses, 149 Pittsburgh district, 140 Porto Rico, ore possibilities, 293 Pyrite, 27 Pyrrhotite, 27 Quebec, ores of, 283 Railroads and rates, 165, 205 Rich Patch, Va., 77 Royalties on ores, 168 Russia, ores of, 325 Salisbury district, U. S., 79 Santiago district, Cuba, 288 Santo Domingo, ore possibilities, 293 Scandinavian ores, 322 Scotland, ores, 315 Sedimentary rocks, 16-18 Segregations, magmatic, 101-104 Siderite, 26 Silicate ores, 26, 328 South Africa, ores of, 336 South America, ores of, 296-304 Spain, ores of, 323 430 INDEX Specific gravity, gangue minerals, 124 iron ores, 123-126 Steam-shovel work, 128-132, 135, 136 Steel-making processes, 149-151 Submarine mining, 273 Sunrise district, U. S., 265 Swanzy district, U. S., 194 Sweden, ores of, 322 Syncline, 19 Tata operation, India, 333 Taxation of iron ores, 416 Tennessee, ores of, 225-236 Test pits, 122 Texada Island district, Canada, 285 Texas, ores of, 236 Thomas (basic bessemer) slag, 151, 310 Thuringite, 26, 328 Titaniferous ores, 104 Tofo, Chile, 302 Torbrook, Canada, 281 Trenches in exploring, 122 Tripoli, ores of, 336 Tunis, ores of, 336 Turgite, composition of, 25 United States, see Table of Contents, descriptions of ores, 181-272 iron-ore production, 183, 186 pig-iron production, 353, 357 ore reserves, 339, 387 Venezuela, ores of, 297 Vermillion range, U. S., 194 Virginia, ores of, 228 Wabana, Newfoundland, 273 Wales, carbonate ores, 53 Westphalia, 311 Wyoming, 265 Xanthosiderite, composition of, 25 YC 33735 UNIVERSITY OF CALIFORNIA LIBRARY