s 
 
 14.GS: 
 CIR141 
 c. 1 
 
 John a; Harrison 
 
 STATE OF ILLINOIS 
 
 DWIGHT H. GREEN, Governor 
 
 DEPARTMENT OF REGISTRATION AND EDUCATION 
 
 FRANK G. THOMPSON, Director 
 
 ILLINOIS GEOLOGICAL 
 SURVEY LIBRARY 
 
 DIVISION OF THE 
 
 STATE GEOLOGICAL SURVEY 
 
 M. M. LEIGHTON, Chief 
 URBANA 
 
 CIRCULAR NO. 141 
 
 LONG-TERM MANUFACTURING OPPORTUNITIES 
 IN THE UPPER MISSISSIPPI VALLEY 
 
 By 
 WALTER H. VOSKUIL 
 
 Reprint of Special Bulletin Number Six 
 
 University of Illinois 
 
 College of Commerce and Business Administration 
 
 Bureau of Economic and Business Research 
 
 PRINTED BY AUTHORITY OF THE STATE OF ILLINOIS 
 
 URBANA, ILLINOIS 
 1948 
 
STATE OF ILLINOIS 
 
 D WIGHT H. GREEN, Governor 
 
 DEPARTMENT OF REGISTRATION AND EDUCATION 
 
 FRANK G. THOMPSON. Director 
 
 DIVISION OF THE 
 
 STATE GEOLOGICAL SURVEY 
 
 M. M. LEIGHTON. Chief 
 URBANA 
 
 CIRCULAR NO. 1 
 
 LONG-TERM MANUFACTURING OPPORTUNITIES 
 IN THE UPPER MISSISSIPPI VALLEY 
 
 By 
 WALTER H. VOSKUIL 
 
 Reprint of Special Bulletin Number Six 
 
 University of Illinois 
 
 College of Commerce and Business Administration 
 
 Bureau of Economic and Business Research 
 
 PRINTED BY AUTHORITY OF THE STATE OF ILLINOIS 
 
 URBANA, ILLINOIS 
 1948 
 
TABLE OF CONTENTS 
 
 PAGE 
 
 Introduction 7 
 
 Basic Industrial Materials in the Upper Mississippi 
 
 Valley 9 
 
 Basic Industries in the Chicago Industrial Area ... 12 
 
 Steel 13 
 
 Coke and Coal 20 
 
 Liquid Fuels in the Economy of the Upper Mississippi 
 
 Valley 22 
 
 Food Supply 26 
 
 Summary 29 
 
 Appendix 30 
 
Digitized by the Internet Archive 
 
 in 2012 with funding from 
 
 University of Illinois Urbana-Champaign 
 
 http://archive.org/details/longtermmanufact141vosk 
 
INTRODUCTION 
 
 A major concern in the foreseeable future is the 
 creation and maintenance of productive employ- 
 ment. This is an inseparable part of our modern 
 industrial economy and not a special problem limited 
 to a temporary postwar transitional period, even 
 though that period may present the problem in un- 
 usually acute form. 
 
 With the necessity for employment and for busi- 
 ness opportunity goes also the laudable desire for 
 profits and good wages. These two can come only 
 from high production (a large volume of output) 
 and high productivity (a high output per worker). 
 A high output per worker means a large share of 
 goods for each ; and this, after all, makes for a high 
 standard of living. 
 
 Manufacturing, transportation and communica- 
 tion, marketing and merchandising, construction, 
 power supply, and the service industries today 
 afford the largest opportunities for the creation of 
 productive employment. 
 
 Productive employment is something more than 
 activity for a wage; it involves the creation of 
 values. The goal of productive employment is to 
 achieve a high level of output, through intelligently 
 directed coordination of men, machines, and mate- 
 rials. Only then is it possible to have a high stand- 
 ard of living, a high purchasing power in the 
 community, and a sound basis for employment 
 opportunity. 
 
 Modern technology, which pervades the entire 
 gamut of our productive economy, is actually re- 
 stricting the employment opportunities in agricul- 
 ture and mining. Mechanization has so changed 
 American agriculture that between 1915 and 1945 
 the tractor, the truck, and the automobile eliminated 
 the need for the labor of thousands of men. Since 
 
 1900 the productivity of the adult farmer has risen 
 from an index of 100 to 154. In such important 
 segments of the mineral industry as coal mining, 
 the output of the workers has nearly doubled since 
 the turn of the century. The natural increase in 
 farm and mine population must, in order to seek 
 lucrative employment, turn elsewhere for oppor- 
 tunities. The high productive possibilities of modern 
 technology, if fully utilized and intelligently directed 
 to meet human wants and desires, will find their 
 greatest productive outlet in the manufacture of 
 consumer goods, directly or indirectly. Accompany- 
 ing this trend will be a corresponding increase in 
 trade, transportation, and services, with increasing 
 employment opportunities in these activities. 
 
 Role of the Basic Industries 
 
 The productivity of manufacturing, both as a way 
 of making a living and as a means of providing 
 each of us with the multiplicity of necessities, con- 
 veniences, and luxuries which we enjoy, depends 
 upon suitable industrial materials, the application of 
 power, and the presence of technological skills. 
 Given these three factors, we have the means not 
 only to high productivity but also to an abundant 
 variety and a wealth of selection in consumer goods. 
 
 Basic industrial materials from which an array of 
 manufacturing activities branch out are: (1) steel; 
 (2) manufactured fuels — oil products; (3) manu- 
 factured fuels — coke; (4) food grains; (5) meat 
 products; (6) fibers; and (7) forest products. 
 
 Sustained productivity in all phases of manufac- 
 turing activity, and in all steps of the manufacturing 
 process, is based upon the continued functioning of 
 those industries which supply the basic industrial 
 raw materials. 
 
BASIC INDUSTRIAL MATERIALS IN THE UPPER 
 MISSISSIPPI VALLEY 
 
 The raw materials of industrialism upon which the 
 diverse and extended manufacturing activities of 
 the Upper Mississippi Valley depend are produced 
 in one or a few localities within the region and 
 supplemented to some extent by shipments of these 
 basic materials into the area. The Chicago district 
 is almost solely the source of pig iron and steel, 
 although a small contribution comes from Granite 
 City. Petroleum products are produced, in the main, 
 in three districts — Chicago, Wood River (below 
 Alton), and southeastern Illinois. Food products, 
 such as meat and flour, are available at convenient 
 points in the area. 
 
 The Chicago industrial area is a leader, or at 
 least a producer, in five of the basic industries: 
 steel, oil products, coke, meat products, and flour. 
 This industrial district is unique in the Upper Mis- 
 sissippi Valley in that it is the focus of industries 
 that manufacture industrial raw materials and 
 producers' goods. These industries, in turn, make 
 many of the producers' goods for manufacturing 
 establishments not only in Chicago itself but in 
 
 Map 1. Industrial Areas in the Upper Mississippi 
 Valley with 2,500 or More Wage Earners, 1939 
 
 Map 2. Income Received in the Upper Mississippi 
 
 Valley, 1939, Distributed by Counties 
 
 (in thousands) 
 
 other manufacturing cities in the Upper Missis- 
 sippi Valley. 
 
 Because of this industrial interdependence of the 
 entire Upper Mississippi Valley, and also because 
 of Chicago's key position as the site of the basic 
 industries which serve as gateways to more than 
 230 types of industries in the Upper Mississippi 
 Valley, the starting point of any study of the indus- 
 trial possibilities and future of Chicago and its 
 associated manufacturing cities in the Upper Mis- 
 sissippi Valley is an examination of the basic in- 
 dustries, for the purpose of determining the status 
 of those elements that are necessary for their 
 assured continuity. 
 
 Specifically, these basic industries should be ex- 
 amined as parts of the structure of the Chicago 
 industrial district. Also a study should be made of 
 the growth and changes within the district, the raw 
 materials used by the basic industries of the district 
 
10 
 
 University of Illinois 
 
 and the adequacy of their supply, the changing in- 
 ternal structure of the Chicago district as it has been 
 affected by the rise or decline in importance among 
 the basic industries, the trends in concentration or 
 decentralization, and the rise of new products or 
 changes in the older established industries. 
 
 Such an examination, however, is of value only 
 as a means to an end. What we are really trying to 
 determine is the key role of the basic industries in 
 the creation of industries for the manufacture of 
 consumer goods. If we understand the function of 
 the Chicago basic industries, we are then prepared 
 to plan against future eventualities, e.g., provide 
 for alternative sources of raw materials if it seems 
 that existing sources may cease to be adequate, and 
 promote new industries that are feasible in this 
 economic area. 
 
 The industrial empire for which Chicago's basic 
 industries supply the raw materials of manufacture 
 extends over nine states or parts of states. This is 
 illustrated in Map 1, which shows the Census distri- 
 bution of leading industrial areas in the Upper Mis- 
 sissippi Valley in 1939. This distribution represents 
 the pattern of industrial development, the resultant 
 of various and varying economic forces during a 
 
 period of vigorous industrial growth. The war years 
 subsequent to 1939 did increase the level of out- 
 put of industrial production but did not change 
 the pattern substantially. A wide variety of enter- 
 prises is located in these several districts, to which 
 the basic industries of Chicago supply such mate- 
 rials as foundry coke, pig iron, primary steel shapes, 
 steel wire, prepared liquid fuels, etc. About 75 per 
 cent of the wage earners in manufacturing in this 
 economic region are outside the Chicago industrial 
 district. 
 
 Manufacturing Opportunity and 
 Purchasing Power 
 
 The opportunity for manufacturing outlets depends 
 ultimately on purchasing power, and purchasing 
 power is estimated by multiplying the number of 
 people earning incomes by the average level of in- 
 dividual income. 
 
 In the prewar year of 1939, purchasing power 
 among principal income groups in Illinois and the 
 adjacent economic territory was nearly 20 per cent 
 of the national total. This income was concentrated 
 in a relatively small area. 
 
 I IE 
 
 I $1,275 AND OVER 
 
 150 TO $1,274 
 
 3 $850 TO $1,149 
 
 JNDER $850 
 
 NITED STATES $ I, 200 
 
 -J 1 
 
 Map. 3. Per Capita Income of the Civilian Population, by States, 1946 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 Map 4. Percentage Increase in Total Income Payments, by States, 1940-1946 
 
 Map 2 shows the county distribution, for the 
 Upper Mississippi Valley, of combined incomes 
 derived from selected types of payment: (a) wages 
 and salaries in manufacturing; (b) wages and sal- 
 aries in wholesale trade; (c) wages and salaries in 
 retail trade; (d) wages and salaries in mining; and 
 (e) farm income. 
 
 Although these items do not represent all income 
 payments within the area, they do account for ap- 
 proximately 80 per cent of the income, and hence 
 provide a reasonably good index of purchasing 
 power. 
 
 It is evident from the map that, aside from the 
 large income payments in the urban centers, there is 
 a belt of remarkably high purchasing power in rural 
 Illinois, Indiana, southern Wisconsin, southern Min- 
 nesota, Iowa, and portions of Missouri. This pro- 
 ductive urban-rural area, of which purchasing 
 power is one measure, is the potential local market 
 for industrial consumer goods. 
 
 The favorable economic position of Illinois in the 
 
 economy of the nation is shown in two maps re- 
 produced from the Survey of Current Business, for 
 August, 1947. Map 3 shows per capita income pay- 
 ments in 1946 for each state, including mustering- 
 out payments, family-allowance payments, allot- 
 ments of pay to individuals by military personnel, 
 cash terminal leave payments, and state govern- 
 ment bonuses to veterans of World War II. Map 
 4 shows for each state the percentage increase 
 in total income payments from 1940 to 1946. An 
 examination of these two maps shows that the 
 higher percentage changes in the southeastern and 
 southwestern states in the period 1940-1946 did not 
 overcome the leading economic position of the 
 Upper Mississippi Valley states. When the dis- 
 torted production pattern brought on by the war 
 has come to an end and a peacetime economy again 
 functions, the level of income payments in Illinois 
 and its neighboring states will be sustained more 
 easily than in those states and areas which were 
 heavily stimulated by war requirements. 
 
BASIC INDUSTRIES IN THE CHICAGO 
 INDUSTRIAL AREA 
 
 The Chicago industrial area 1 comprises Cook, Du 
 Page, Kane, Lake, and Will counties in Illinois, and 
 Lake County in Indiana. Within this area there is 
 a wide variety of industries and a considerable de- 
 gree of segregation of industrial groups. Table I 
 presents data for the principal basic industries. 
 
 In Chicago itself there are large meat-packing 
 establishments. Toward the south and east, along 
 the lake shore in Illinois and Indiana, are the heavy 
 steel industries. In the western and southwestern 
 part of the area are steel fabricating industries, 
 machinery, light industries, etc. About one-fifth of 
 Chicago's manufacturing activity is concerned with 
 the production of raw materials for further proces- 
 sing, fuels, and basic food supplies. Historical de- 
 
 1 The term "industrial area," as used by the Census, sig- 
 nifies an area having as its nucleus an important manufac- 
 turing city and comprising the county in which the city is 
 located, together with any adjoining county or counties in 
 which there is a great development of manufacturing 
 industries. 
 
 velopment, as well as geographic factors, accounts 
 for the present-day distribution of industry within 
 the area. 
 
 More than half of the manufacturing activity of 
 the United States is concentrated in 97 counties, 
 which have been grouped by the Bureau of the 
 Census into 33 industrial areas. An area is defined 
 as having had not less than 40,000 factory workers 
 when these groupings were first established in 1929. 
 Among these industrial areas, Chicago is exceeded 
 only by New York and has held second place since 
 1899, when it displaced Philadelphia. In Map 5 are 
 shown the industrial areas located in northern and 
 eastern United States and the comparative trend of 
 growth since 1899. Although the position of New 
 York and Chicago in first and second place re- 
 mained unchanged, among the remaining 28 indus- 
 trial districts there has been a relative gain in 
 position, principally in those districts bordering the 
 Great Lakes. 
 
 /n 
 
 '""2>v 
 
 n 9 #;Youngstown A |ientog> rV" y0RK clT Y 
 
 (I O Pittsburgh OReodrng-JNEW 
 ^.wheeling <W.»od.«pM. 
 
 ■ y£ 4---^ 
 
 Map 5. Change in Rank of Industrial Areas East of the Rocky Mountains, 1900-1939 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 13 
 
 Table I 
 
 Basic Industries in the Chicago Area, 1939 
 
 (Thousands of dollars) 
 
 Type of Industry 
 
 Salaries 
 
 and 
 Wages 
 
 Value of 
 Product 
 
 Value 
 Added by 
 Manufac- 
 ture 
 
 All industries 
 
 Iron and steeK . 
 Meat packing. . . 
 
 Oven coke 
 
 Petroleum re- 
 fining 
 
 Flour mills 
 
 Total — Basic in- 
 dustries 
 
 Percentage — basic 
 industries to 
 all industries.. 
 
 5784,145 
 
 117,157 
 33,771 
 5,516 
 
 16,408 
 661 
 
 54,277,816 
 
 569,859 
 389,983 
 56,360 
 
 219,884 
 11,178 
 
 51,909,989 
 
 212,567 
 68,288 
 10,157 
 
 59,184 
 2,814 
 
 5173,513 
 22.1 
 
 51,247,264 
 29.2 
 
 5353,010 
 18.5 
 
 Source: Census of Manufactures, 1939. 
 a Includes products of blast furnaces, steelworks and roll- 
 ing mills, and steel castings. 
 
 The relative position of each of the 33 industrial 
 districts, as measured by the dollar value of prod- 
 ucts manufactured therein, is shown in Chart 1. 
 
 Steel 
 
 In the analysis of basic industries, steel is given 
 first place. It occupies a key position in our indus- 
 
 trial economy, and in the production process it 
 performs a three- fold function. First, steel is the 
 primary material which has made possible the cre- 
 ation of modern industrial productivity. Second, 
 steel provides the raw materials for a wide variety 
 of industries engaged in the manufacture of con- 
 sumer goods and also of machines which are used 
 in the manufacture of still other types. Third, steel 
 creates the opportunity for the growth of other 
 industries that contribute to the final production of 
 goods made possible in a steel-based economy, as for 
 example, non-ferrous metal industries, cement, 
 chemicals, etc. Therefore, a steel center is and will 
 remain the most favorable basis of a diversified 
 industry. 
 
 Basis of High Productivity. High productivity 
 is a relative term, but to the layman it means either 
 more goods or better goods. High productivity 
 means an abundance of food produced, more yards 
 of cloth, more pairs of shoes, more tons of coal 
 mined, more barrels of oil produced, more miles of 
 transportation for the same cost in exchange for a 
 day's work, more time for leisure after material 
 wants have been comfortably satisfied. When man, 
 the producer, raises the level of his output, in these 
 and thousands of other commodities, there are more 
 goods to be consumed, there are more goods for 
 
 the United States, by Value of Product in Billions of Dollars, 1939 
 
University of Illinois 
 
 each person, and the standard of living goes up 
 accordingly. 
 
 Steel plays a key role in achieving high productiv- 
 ity. Iron ore is abundant, and steel can be made 
 from it at a low cost. In its alloyed forms, steel is 
 a versatile metal: it can be made brittle or tough, 
 hard or soft, pliable or elastic, to suit the needs of 
 the user. It is the stuff used to make the machine 
 tools that shape and build our mechanized plants, 
 and also to construct the power-driven machines 
 that, under man's skillful direction, pour out the 
 goods. The broad requirements of modern industrial 
 society, with its vast tonnage movements, its ma- 
 chines capable of rapid output, and its high-speed 
 transportation, can be met only by iron in combina- 
 tion with its alloying materials. Let it be emphasized 
 that all other industrial materials, new and old, in 
 large quantities or small, play a role, and a neces- 
 sary one, as helpers of steel in the productive 
 process. Our industrial society is indissolubly re- 
 lated to steel. 
 
 Springboard for Industrial Opportunity. A 
 steel industry is the nucleus for a wide variety of 
 industries in a relatively small area, and this situa- 
 tion results in large aggregate wage payments and 
 other forms of income. The purchasing power thus 
 derived in turn favors the development of new 
 industries. 
 
 The industries that naturally group around steel 
 are: 
 
 1. Non-ferrous metal and other industries which nec- 
 essarily supplement steel in the manufacture of goods, 
 such as copper, lead, zinc, aluminum, etc. 
 
 2. Industries that come into being in connection with 
 the steel industry, as a part of industrial production, 
 such as structural materials for industrial plants — 
 cement and concrete, quarry products, refractories, 
 fluxes. 
 
 3. Industries which are located in concentrated popu- 
 lation areas either by reason of a favorable market or 
 because of better access to labor supply. This would 
 include a wide variety of purely local industries such 
 as bakery products, chemicals, apparel, printing and 
 publishing, wholesale trade, and banking and finance. 
 The forces that establish a population center tend to 
 gain in strength and to bring about further concentra- 
 tion. This movement is borne out by the population 
 trends up to the outbreak of the war and will, no doubt, 
 be resumed in the postwar period. 
 
 Chicago is one of the great steel-producing dis- 
 tricts of the United States and of the world. This 
 district provides the raw material and serves a wide 
 array of metal-working industries in Chicago and 
 throughout the smaller industrial cities of Illinois, 
 Wisconsin, Indiana, Minnesota, western Kentucky, 
 Michigan, Iowa, Missouri, Kansas, Nebraska, and 
 
 the Dakotas. The continued productivity of the in- 
 dustries in this large area is no more assured than 
 the permanence of the steel basis upon which they 
 are built. 
 
 The steel-making process involves the assembling 
 of large tonnages of ore, coking coal, and fluxing 
 stone. These raw materials must be available in 
 large quantities to assure a supply for decades to 
 come. 
 
 The magnitude of operations in steel production 
 requires also, for economical output, a large market 
 outlet. The survival power of a steel district is, 
 therefore, a function of adequate resources and 
 ability to maintain its position in its market area 
 against the encroachments of rival districts. 
 
 Geography of Steel Districts. The most eco- 
 nomical source of steel is that location at which the 
 raw materials can be assembled, the steel produced, 
 and delivery made to a large market, all at the low- 
 est possible total cost. In determining plant location, 
 assembly costs are most important ; more than four 
 tons of raw material must be assembled for every 
 ton of steel produced. 
 
 The greater proportion of the raw materials is 
 used in the blast furnace, but integrated steel works 2 
 have developed from blast furnace plants because: 
 (a) as steel approaches the finished stage, the cost 
 of shipment becomes a smaller percentage of the 
 cost of the product to the buyer; (b) integration 
 assures more constant and reasonably full utilization 
 of blast furnaces and open hearths; and (c) the 
 economics of converting molten iron into steel and 
 other heat conservation factors are important in the 
 economical production of steel. 
 
 In an integrated steel industry, economies are 
 achieved both in saving of heat and in effective use 
 of surplus gas. For example, pig iron is conveyed 
 from the blast furnace to the steel plant in the 
 molten state, thereby conserving the heat in the 
 molten metal. Surplus gas from coke ovens is used 
 for operating air compressors and for heating the 
 stoves of the blast furnace. Coke-oven gas also sup- 
 plies the fuel for the open-hearth steel furnace and 
 for heating the soaking pits. 
 
 Limitations imposed by the necessity for the most 
 favorable combination of assembly, production, and 
 delivery costs have confined steel production to a 
 few geographical areas. The most favorable com- 
 bination of the three variables is to be found at 
 ports on Lake Michigan and Lake Erie and in the 
 Pittsburgh district, including the Mahoning and 
 
 2 An industry is integrated when all steps in the process 
 from mining to production of finished steel are under a 
 single over-all management. 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 15 
 
 Table II 
 
 Estimated Assembly Costs in the Production of 
 
 Pig Iron, Summer of 1937 
 
 (In dollars per gross ton) 
 
 Producing Center" 
 
 Iron 
 Ore 
 
 Coal 
 
 Flux 
 
 Total 
 Cost 
 
 Weirton-Steubenville. . 
 
 #5.508 
 5.804 
 3.497 
 3.497 
 
 3.497 
 5.193 
 3.487 
 
 #0.468 
 0.284 
 2.714 
 2.909 
 3.249 
 1.979 
 3.867 
 
 #0.337 
 0.337 
 0.241 
 0.241 
 0.086 
 0.170 
 0.241 
 
 #6.313 
 6.425 
 
 
 6.452 
 
 
 6.647 
 
 
 6.832 
 
 
 7.342 
 
 
 7.595 
 
 
 
 Ohio valleys. These locations were primarily deter- 
 mined by the assembly costs of Lake Superior ores 
 and the coking coals of West Virginia, western 
 Pennsylvania, and eastern Kentucky. 
 
 Comparative assembly costs of raw materials at 
 principal production centers in this area have been 
 estimated as shown in Table II. 
 
 The relationship of assembly costs among these 
 several districts, as it existed before the war, is 
 not necessarily constant. Greatest changes have 
 probably occurred in those districts to which a rail 
 
 haul of materials is required, since there have been 
 advances in freight rates granted to railroads. If this 
 is the case, the most pronounced changes in as- 
 sembly costs would occur in ore movements to 
 Weirton-Steubenville, Pittsburgh, and Youngstown, 
 and in coal movements to Cleveland, Buffalo, De- 
 troit, and Chicago. It is noteworthy that costs of 
 shipping coal to Chicago exceed costs of transporta- 
 tion to any other district. At present, all but a 
 negligible quantity of coking coal used in the Chi- 
 cago steel industry is obtained from the Appalachian 
 fields, principally eastern Kentucky and southern 
 West Virginia. 
 
 Steps in Steelmaking. The production of steel 
 begins at the blast furnace, where iron ore and other 
 materials are smelted to emerge as pig iron and 
 slag. This is the first major step and the first inter- 
 mediate product in a long series of operations end- 
 ing in finished steel goods. Pig iron is converted into 
 steel by the removal of impurities and the addition 
 of controlled quantities of carbon and scrap and 
 alloying materials, in Bessemer or open-hearth 
 furnaces. 
 
 The approximate amounts of principal raw ma- 
 terials required per ton of pig iron are: 4,075 
 pounds of iron ore (assuming ore of reasonably 
 
 COKE OVENS 
 
 STEEL FURNACES 
 
 ROLLING MILLS 
 
 Chart 2. Flow Chart of Steelmaking, 1943 
 
16 
 
 University of Illinois 
 
 high metallic content, 50 per cent or more), 2,700 
 pounds of coking coal, and 900 pounds of limestone. 
 Another 1,500 pounds of coal may be consumed for 
 power and heating before a ton of finished steel 
 product has left the mills. 
 
 The flow of materials through successive stages 
 of production to finished rolled steel products is 
 illustrated in Chart 2, which is based on Department 
 of Commerce data and shows the materials used and 
 the disposition of the products in a war year. In 
 addition to depicting the various raw materials used 
 in the production of pig iron, the diagram indicates 
 the output of by-products, the importance of scrap 
 in the manufacture of steel, the more important 
 rolling-mill products, and the major consuming in- 
 dustries. The large proportion of the products which 
 went to shipbuilding is explained by the fact that 
 1943 was a war year. 
 
 The grouping of by-product coke ovens, blast 
 furnaces, and steel mills into an integrated produc- 
 tive unit affects the economics of the manufacture 
 of steel. The by-product gases of the coke oven and 
 blast furnaces and the by-product heat in molten 
 pig iron can be used effectively in the process of 
 steel manufacture. 
 
 The making of steel through the several steps in 
 the process is shown in Chart 3. 
 
 Raw Materials for the Chicago Steel Industry. 
 Among the materials needed to sustain a large steel- 
 producing industry in the foreseeable future is an 
 adequate supply of iron ore and scrap metal. There 
 are many deposits of iron-bearing ores available in 
 this country and abroad — ores of high or low iron 
 content, in large and small deposits, on the surface 
 and deep-seated in the earth. 
 
 The American steel industry is built mainly upon 
 the Lake Superior ore district, and the Chicago 
 steel industry relies solely upon this district for its 
 ore. The future of Chicago is, therefore, tied up 
 with the extent and character of the Lake Superior 
 ores. In the future, these ores must adequately meet 
 
 Table III 
 
 Average Annual Production of Iron Ore by 
 
 Districts, 1936-1945 
 
 (Gross tons) 
 
 District 
 
 Average 
 Production 
 
 
 63,773,139 
 
 
 6,461,336 
 
 
 2,649,169 
 
 Northern New Jersey-Southeastern 
 
 New York . 
 
 443,024 
 2,334,583 
 
 
 
 
 the competition of ores from other districts, domes- 
 tic or foreign, which supply steel output in Lake 
 Erie ports, Pittsburgh, and on the Atlantic seaboard. 
 Therefore, it may be well to examine the present 
 status and future outlook for ore production in the 
 
 Table IV 
 
 Estimated Ore Reserves in Lake Superior 
 
 District, as of 1944 
 
 (Gross tons) 
 
 State, District 
 
 Ore Reserves 
 
 Minnesota: 
 
 1,020,138,504 
 12,636,820 
 
 
 
 62,059,815 
 1,094,835,139 
 
 Total, Lake Superior District in 
 
 
 231,393 
 
 
 1,095,066,532 
 
 Michigan: 
 
 32,686,550 
 
 
 51,357,761 
 50,376,403 
 
 
 Total, Lake Superior District in 
 
 134,420,714 
 
 Total, Lake Superior District in 
 
 Minnesota and Michigan .... 
 
 Total, Minnesota and Michigan.. . 
 
 1,229,255,853 
 1,229,487,246 
 
 a Not included in Lake Superior District. 
 
 Chart 3. Steps in the Process of Steelmaking 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 U 
 
 Lake Superior district supplying Chicago, which 
 contributed 85 per cent of the national total during 
 the period 1936 to 1945 inclusive. 
 
 The relative importance of the major producing 
 districts is shown in Table III. 
 
 The Chicago district (Illinois and Indiana) con- 
 sumes approximately 25 per cent of the Lake 
 Superior ores, sharing the output of this district 
 with furnaces in Pittsburgh and Lake Erie ports. 3 
 
 Table IV shows the estimated reserves of high- 
 grade merchantable ore in Minnesota and Michigan 
 as of 1944; the reserve in the Lake Superior district 
 was estimated at 1,229,255,853 tons.* Iron ore from 
 which the Chicago steel industries draw their sup- 
 plies is obtained from the Minnesota and Michigan 
 ranges shown in Map 6. 
 
 Future Ore Supplies. The following statements 
 regarding future ore supplies were made by the 
 authorities herein cited: 
 
 We can clearly see the exhaustion of the deposits of 
 
 8 Minerals Yearbook, 1944 (U. S. Bureau of Mines), p. 
 547. 
 'Ibid., pp. 551-552. 
 
 reasonable cost high-grade ore that can be consumed 
 directly in the furnace without treatment. — L. P. Bar- 
 rett (V. P., Jones and Laughlin Ore Co., Inter-State 
 Iron Co., Pittsburgh), "Competitive Position of Minne- 
 sota Low-Grade Ore," Skillings' Mining Review, Vol. 
 XXX, No. 41, January 31, 1942. 
 
 For the Lake Superior region as a whole, the direct 
 shipping ore, including wash ore, constitutes less than 
 1 per cent of the bulk of the iron formation. — Barrett. 
 
 The supply of iron ore needed in the future must 
 come from material running 20 per cent to 30 per cent 
 iron. — Barrett. 
 
 Low-grade ore of various types exists in many places 
 in the Lake Superior district and the total is very 
 large. — (Davis, p. 7.) 5 
 
 If the time should come when 30 per cent ore could 
 be used under Lake Superior conditions, the tonnage 
 available would be something enormous. — C. K. Leith 
 (quoted by Davis). 6 
 
 If the iron formation is to be considered an ore, 
 there is enough ore in the Lake Superior region to last 
 the world a thousand years. — J. R. Finlay (quoted 
 by Davis). 5 
 
 6 C. K. Leith and J. R. Finlay are both quoted by E. W. 
 Davis of the Mines Experiment Station, Minneapolis, Min- 
 nesota, in "A Report Presented to Materials Division of 
 the War Production Board," May 20, 1942. 
 
 Map 6. Location of Lake Superior Iron Ranges and Ore Ports Serving the Ranges 
 
IS 
 
 University of Illinois 
 
 While the low-grade ores occur generally over the 
 Lake Superior ore-producing districts, the quantity on 
 the Mesabi probably far exceeds that of any other 
 district. — (Davis, p. 7.)" 
 
 The beneficiation (up-grading) of low-grade iron 
 ores is expected to provide new sources to replace 
 the waning reserve of high-grade deposits; and re- 
 search in this field has been under way for a num- 
 ber of years. 
 
 The Mesabi Iron Range is about 100 miles long and 
 from one to three miles in width. This range is a con- 
 tinuous deposit of a type of iron-bearing rock called 
 taconite assaying about 30 per cent iron. — (Davis, 
 
 P . 7.y 
 
 Chart 4 shows a generalized cross section of this 
 range. 
 
 Interest is centered primarily on the Lake 
 Superior ores, including taconite. The great mass of 
 taconite, called "Class III low-grade ore-bearing 
 rock" on Chart 4, contains from 25 to 35 per cent 
 iron and from 40 to 60 per cent silica. While all of 
 it has the same general structural characteristics, 
 
 Chart 4. Generalized Cross Section of the Iron 
 Formation of the Mesabi Range 
 
 The taconite is composed of both magnetic and 
 nonmagnetic ore. Commercial methods are now in 
 existence which can separate the magnetic ore from 
 the taconite and effect a concentration. 
 
 Chart 5, reproduced from a 1942 report to the 
 War Production Board by E. W. Davis, Director 
 of the Mines Experiment Station, University of 
 Minnesota, shows graphically the quantities of ore 
 then remaining on the Mesabi. The triangular piles 
 depict comparative amounts of various types of 
 ore: those with diagonal bars represent Class I 
 ores ; the solid black portions, Class II ores ; and the 
 clear portions, Class III ores. 
 
 The Class I ores are high-grade and require no 
 concentration. For these and for the Class II con- 
 centrate, accurate tonnage estimates were available. 
 The size of the magnetic taconite pile as compared 
 with the direct shipping ores is noteworthy. The 
 largest pile represents immense quantities of Class 
 II ore and nonmagnetic taconite for which no com- 
 mercial method of concentration is yet known, and 
 which can therefore not be considered an iron ore 
 reserve. 
 
 Chart 5. Total Ore and Concentrate of the Mesabi 
 Range, as of January 1, 1942 (in millions of tons) 
 
 important variations do occur. In general, the tacon- 
 ite can be divided into two classes: magnetic 
 taconite and nonmagnetic taconite. In the magnetic 
 taconite, the iron oxide exists as magnetite, which 
 is a strongly magnetic mineral. In the nonmagnetic 
 taconite, the iron oxide exists largely as hematite, 
 a mineral that is not magnetic. From the standpoint 
 of concentration, this is a very important distinction, 
 because methods are now in commercial use which, 
 with minor modifications, can be used to concentrate 
 the magnetic taconites, whereas the nonmagnetic 
 taconites, like much of the Class II ore materials, 
 are much more difficult to concentrate. 
 
 After several years of research and pilot plant 
 experimentation, one large mining company is con- 
 structing a commercial-scale plant for the produc- 
 tion of concentrate from taconite. 
 
 The making of iron ore concentrate from taconite 
 involves the quarrying of hard rock, crushing and 
 grinding to a flour-like fineness in order to break 
 apart the particles of silica and the particles of iron 
 ore. The iron ore is then separated from the silica 
 by running it under magnets, if it is in magnetic 
 form, or by a process known as froth flotation, if 
 it is in nonmagnetic form. Since the product is in 
 the form of fine particles, it is necessary to sinter 
 or agglomerate it so as to get it into lumps large 
 enough to be shipped and used in furnaces. The 
 taconite deposit extends in a band the whole length 
 of the Mesabi Range, a distance of about 75 miles. 
 It exists in such enormous quantities that it offers 
 an assured source of iron ore for an indefinite time 
 in the future. 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 According to the Bureau of Foreign and Domes- 
 tic Commerce, United States Department of Com- 
 merce, iron ore deposits of commercial grade and 
 size also exist at Steep Rock, Canada; Bell Island, 
 Newfoundland; and on the Quebec-Labrador bound- 
 ary in Canada. These may also be considered as 
 available, when needed, to the Great Lakes steel 
 industry. 
 
 Coal and Coke. Coal requirements for steel are 
 of two kinds: (a) general fuel for power and heat- 
 ing, and (b) metallurgical coke. The manufacture 
 of a ton of steel requires about 2,700 pounds of 
 coking coal and about 1,500 pounds of coal for 
 power and heating. Coal for general fuel is cheaply 
 available in unlimited quantities from Illinois and 
 Indiana fields. Coal for the production of metallur- 
 gical coke used in the Chicago area is supplied prin- 
 cipally by five states — Pennsylvania, West Virginia, 
 Kentucky, Virginia, and Illinois. 
 
 Steel as an Industrial Raw Material. Steel is 
 an alloy of iron, carbon, and small quantities of one 
 or more alloying metals, principally manganese, 
 nickel, chromium, molybdenum, vanadium, tungsten, 
 copper, aluminum, and silicon. 
 
 The unique qualities of iron — and its alloy, 
 steel — single out this metal as the basic material 
 upon which the industrial structure of the nation is 
 built. The physical and economic characteristics of 
 iron which give the metal this distinctive function 
 in industry are three: 
 
 1. Low cost — Natural abundance, relatively low 
 cost of mining the ore, and relatively low cost of re- 
 ducing it to metal result in low cost for steel. 
 
 2. Versatility of iron and its steel alloys — The 
 methods of heat treatment and the use of one or more 
 of the group of metals known as the ferro-alloys have 
 provided the steelmaker with the means of producing 
 a variety of steel alloys, each of which is endowed 
 with a combination of properties by which a particular 
 use of steel is most efficiently served. 
 
 3. Property of magnetism — This property, which is 
 present in a pronounced degree only in iron, is funda- 
 mental to the development of modern electrical ma- 
 chinery. The entire range of magnetic and electric ap- 
 pliances is dependent upon this property in the metal. 
 It is essential for the construction of the generator, the 
 electric motor, the telephone, the radio, and a large 
 number of electrical measuring instruments. The elec- 
 trification of industry and the widespread application 
 of electric power in manufacturing, transportation, 
 and communication are based upon the magnetic 
 property of iron. 
 
 Chart 6 demonstrates the truth of the statement 
 that ours is a steel age. During 1944, according to a 
 progress report on disposal of iron and steel war 
 
 Chart 6. Steel Among Industrial Raw 
 Materials, 1944 
 
 plants, approximately 110,000,000 tons of processed 
 metallic and nonmetallic basic materials were used 
 by manufacturing industries in the United States. 
 On a tonnage basis, steel accounted for 85 per cent. 
 
 It is noteworthy that the light metals, aluminum 
 and magnesium, accounted for less than 2 per cent. 
 There has been much speculation about postwar dis- 
 placement of steel by light metals. Yet it may be 
 seen in the figure that if all light metals which we 
 have the present capacity to produce were to be 
 used in lieu of steel, such a development would still 
 have a relatively small effect on over-all steel 
 consumption. 
 
 Market Territory Served by Chicago Steel. The 
 great steel centers adjacent to the Great Lakes 
 would not have developed if outlets for at least a 
 considerable part of their products had not been 
 close at hand. The market for steel produced in the 
 Chicago industrial area embraces all of Wisconsin, 
 all of Illinois except the vicinity of Granite City, 
 western Michigan, and northwestern Indiana. With- 
 in this area there is an unusually high degree 
 of concentration of industries closely related to 
 primary steel production for their supply of in- 
 dustrial raw materials. 7 These industries embrace: 
 (1) products of iron and steel; (2) machinery; 
 (3) automobiles and equipment; (4) transportation 
 equipment. 
 
 Table V shows that in the United States 26 per 
 cent of all workers were employed in these indus- 
 tries in 1939, and in the territory served by Chicago 
 steel 31 per cent of all workers were so engaged. 
 
 7 A wide array of semi-finished steel goods and consumer 
 products is made from steel. 
 
University of Illinois 
 
 Table V 
 
 Persons Employed in Manufacturing, Upper Mississippi 
 
 Valley and the United States, 1939 
 
 Geographical 
 Division 
 
 (a) 
 Number 
 Employed in 
 Manufac- 
 turing 
 
 (b) 
 
 Number 
 
 Employed in 
 
 Industries 
 
 Closely 
 Related to 
 Raw Steel 
 
 Per- 
 centage of 
 (b) to (a) 
 
 
 759,710 
 340,563 
 621,173 
 254,625 
 104,445 
 223,467 
 88,789 
 
 235,835 
 147,332 
 424,944 
 87,499 
 22,304 
 36,199 
 20,025 
 
 974,138 
 
 549,194 
 2,457,197 
 
 31 
 
 
 43 
 
 
 68 
 
 
 34 
 
 
 21 
 
 Missouri 
 
 16 
 
 Iowa 
 
 23 
 
 Total, Upper Mis- 
 sissippi Valley 
 
 Total excluding 
 Michigan .... 
 
 United States 
 
 2,392,772 
 
 1,771,599 
 9,622,923 
 
 41 
 
 31 
 26 
 
 Source: Census of Manufactures, 1939. 
 
 Coke and Coal 
 
 Coke is an artificially prepared fuel, the residue that 
 remains after certain bituminous coals have been 
 subjected to destructive distillation. Its character- 
 istics are hardness, porosity, and strength, the qual- 
 ities essential in a fuel that must be quick-burning 
 and also able to withstand the heavy pressure in 
 the blast furnace without crushing. 
 
 The primary function of coke is to reduce iron 
 ore to the metallic state. The reduction of iron ore 
 in the blast furnace, using coke as a fuel, is so far 
 superior in terms of economy to any other method 
 of ore reduction that it has no rivals. This fact is 
 of fundamental significance, for the use of coke is 
 at present the only means which we have for obtain- 
 ing iron cheaply. 
 
 The evolution of coke manufacture, first in the 
 beehive oven and, more lately, in the by-product 
 oven, stands as one of the significant developments 
 in the transformation of society from the handi- 
 craft and semi-handicraft stage to a power-operated 
 economy. For, in addition to its unique character- 
 istics as a fuel for the reduction of iron ore, an 
 adequate coke supply freed the metallurgical indus- 
 try from the sharp limitations of fuels hitherto 
 available for smelting ores — charcoal and anthracite. 
 
 With the introduction of the coke oven and the 
 blast furnace, the requisite for industrialization — 
 cheap steel — emerged as a reality. These two in- 
 struments of production, the coke oven, as the pro- 
 ducer in mass tonnages of a requisite fuel, and the 
 
 blast furnace, as the highly efficient producer of pig 
 iron, also in mass tonnages, are the gateways to a 
 highly productive, versatile, complex, industrial 
 economy. Other methods of obtaining iron have 
 been proposed but, so far, none shows any possi- 
 bility of replacing the blast furnace fired by coke. 
 The coke oven, then, together with the blast furnace, 
 becomes the symbol of productiveness, the basis of 
 a high standard of living, and of power. 
 
 Sources of Coking Coal. Coal presently suit- 
 able for the manufacture of coke occurs in a lim- 
 ited portion of the Appalachian fields, principally 
 in Pennsylvania, West Virginia, Alabama, and east- 
 ern Kentucky. Minor quantities have been contrib- 
 uted by other states east of the Mississippi River. 
 
 In Map 7 are shown the counties in the United 
 States that produce coking coal. Shipments of 
 coking coal to ovens in the Chicago industrial 
 district are reported from six states. The counties 
 that are most important contributors to this large 
 consuming market are shown in solid black. The 
 importance of each state as a source of coking 
 coal for the steel industry in the Chicago district 
 is shown in Table VI. 
 
 In the Chicago district, assembly of coal for the 
 steel industry is one of the important elements of 
 
 Map 7. Counties in Eastern States Which Produced 
 Coking Coal, 1939 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 Table VI 
 
 Tons of Coal Purchased for Coking Purposes, 
 
 Chicago District, 1939-1944 
 
 West Virginia . 
 
 Kentucky 
 
 Virginia 
 
 Pennsylvania. . 
 
 Illinois 
 
 Indiana 
 
 7,236,605 
 5,380,882 
 651,619 
 464,105 
 262,233 
 35,269 
 
 Source: Minerals Yearbooks, 1939-1944 (U. S. Bureau of 
 Mines). 
 
 cost. Out of a total assembly cost of coal, ore, and 
 flux, as indicated by a study of conditions in 1937, 
 the cost of shipping coal to the Chicago district was 
 51 per cent of all costs, as compared with 4 per cent 
 for Pittsburgh, 7 per cent for Weirton, 27 per cent 
 for Youngstown, 42 per cent for Cleveland, 44 per 
 cent for Buffalo, and 48 per cent for Detroit. 
 
 One of the key problems, therefore, in maintain- 
 ing the competitive position of the Chicago steel 
 industry is a reduction in coal assembly costs. The 
 crux of the situation is the high cost of shipping 
 coking coal from coal districts in southern West 
 Virginia and eastern Kentucky to Chicago. A sub- 
 stantial contribution to lower costs of coal can pos- 
 sibly be made through the development of processes 
 for the coking of a blend of Illinois and eastern 
 coals. Investigations of this possibility are in 
 progress, with apparently promising results. 
 
 Production of steel becomes less dependent upon 
 coke in an aging industrial economy. As more scrap 
 becomes available, the quantity of coke required for 
 each ton of steel is reduced. This is illustrated in 
 
 Coke Consumed in Steel Production, the Chicago 
 
 District and the United States, 1916 and 1940 
 
 (Thousands of net tons) 
 
 
 United States 
 
 Chicago District 
 
 
 1916 
 
 1940 
 
 1916 
 
 1940 
 
 Metallurgical coke used" 
 
 47,875 
 47,907 
 
 1.00 
 
 45,471 
 66,983 
 
 1.47 
 
 6,227 
 7,856 
 
 1.26 
 
 7,637 
 
 Tons of steel per ton 
 of coke used 
 
 1.75 
 
 Sources: Minerals Yearbook, 1940; Mineral Resources of 
 the United States: Part I, Metals, 1916 (U. S. Dept. of the 
 Interior). 
 
 a Coke is used in producing pig iron, which is the first step 
 in steel production. 
 
 Chart 7, which shows the tons of steel produced per 
 ton of furnace coke used from 1915 to 1945. The 
 Chicago steel industry is less dependent upon coke 
 and new sources of metal than some of its rival 
 districts, as is shown by the comparative ratios in 
 Table VII. 
 
 The heavy demand of the blast furnace industry 
 for the coking-coal supplies of the Appalachian 
 fields is the most critical factor in the supply of new 
 metal for a steel industry. The present outlook is 
 favorable for the immediate future, and in the 
 meantime the contribution of scrap to the annual 
 requirements of the steel industry and the develop- 
 ment of new coking-coal sources in Illinois will have 
 the effect of extending the life of the critical coking- 
 coal reserves. Investigations of the coking proper- 
 ties of coal are under way to bring additional re- 
 serves of coal within the category of coking coals. 
 
 Chart 7. Tons of Steel Produced per Ton of Furnace Coke Used, United States, 1915-1945 
 *Data not available 
 
LIQUID FUELS IN THE ECONOMY OF THE 
 UPPER MISSISSIPPI VALLEY 
 
 The wide use of machinery powered by liquid fuel small ones. Now machines are being developed for 
 units is woven into the very fabric of the American small farms as well, and these farms may be ex- 
 industrial economy. Altogether a stimulus of eco- pected to make more rapid strides toward increased 
 nomic activity amounting to 10 to 12 per cent of the output per worker." 10 The key to the continued ex- 
 national productivity springs from the desire to pansion of mechanization is an assured supply of 
 own and operate an automobile. low-cost liquid fuels. 
 
 Direct users of oil, which include motor-car The importance of mechanical power and trans- 
 owners, owners of oil-heated homes, bus lines, and portation powered by internal combustion engines in 
 ocean liners, have an immediate interest in ade- the Upper Mississippi Valley states is shown in 
 quate liquid fuel supply. Table VIII. 
 
 But back of the automobile owner, for example, - . , . . . , p . 
 
 are vast manufacturing and service industries each ^" ' " 
 
 of which is dependent upon the automobile. Among Requirements and Supply. The productive pat- 
 
 these are steel, alloys, rubber, plastics, lead (min- tern of agriculture, manufacturing, transportation, 
 
 ing), cement, sand, gravel and stone quarrying, and power production in the states of the Upper 
 
 plate glass, and, in a minor way, resins, paints, Mississippi Valley as it is organized on a peacetime 
 
 and textiles. basis requires the refined products of petroleum in 
 
 Automobile manufacturers under a peace econ- about the following annual quantities: 
 
 omy normally take 15 to 18 per cent of the steel Barrels 
 
 output, 80 per cent of rubber manufactures, nearly Gasoline 133,000,000 
 
 half the output of the plate glass industry, and a Kerosene 19,000,000 
 
 large amount of lead, used in storage batteries. One Fuel oil 65,000,000 
 
 quarter of the cement output goes into highway Tractor fuel 2,000,000 
 
 construction, which is a direct outgrowth of auto- There is no doubt that these requirements will be 
 
 mobile travel ; associated with the industry also are substantially increased in the future. 
 
 large tonnages of sand, gravel, and crushed stone. To supply the various consumers, refineries are 
 
 Paralleling the manufacturing and construction located at strategic points in Illinois — in Chicago, 
 
 industries are the vast wholesale and retail distribu- at Wood River near Alton, and in the southeastern 
 
 tive activities and service industries, which together part of the state. 
 
 employ a million persons with an aggregate yearly The supply of liquid fuel for home heating, for 
 
 pay roll of one billion dollars. farm power, and for manufacturing, at low costs to 
 
 The pattern of agricultural production in the the users, arises out of the price interrelationships 
 
 Upper Mississippi Valley is becoming geared to among the refined products obtained from crude 
 
 machine production powered by the internal com- petroleum. In the production of motor fuel — the 
 
 bustion engine. Gasoline, kerosene, and Diesel fuel "cash crop" of the industry — the refinery also 
 
 are the fuels used in the agricultural economy. yields by-products of heavier fuel oils which enter 
 
 "Mechanization of farms is responsible for much the market at relatively low prices. Abundant sup- 
 
 of the steady rise in the efficiency of farm labor." 8 plies of low-priced oil for industrial fuel and for 
 
 "Production per farm worker in 1944 was twice as home heating are contingent upon an abundant flow 
 
 great as in 1910. " 9 of crude and a high demand for motor fuel. 
 
 The adaptation of power machinery to crop pro- The relative outputs and values of the major 
 
 duction is especially effective on the level farm lands refined products from crude oil as they leave the 
 
 and large farm units of Illinois, Iowa, and neighbor- refinery are portrayed in Tables IX and X. Modern 
 
 ing states. "Mechanical power in its earlier stages refinery technology is continually finding ways to 
 
 was best adapted to large farms, and the large increase the yield of motor fuel and correspondingly 
 
 farms gained in efficiency much faster than the reduce the yield of by-products (see Table XI). 
 
 8 Report of the Chief of the Bureau of Agricultural Petroleum Reserves and Supply. The over-all 
 
 Economics, Fiscal Years, 1943-44 (U. S. Department of oil needs of Illinois and the Upper Mississippi Val- 
 
 Agriculture), p. 16. 
 
 Ibid., p. 15. I0 Ibid., p. 17. 
 
 22 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 Table VIII 
 Liquid Fuel Consumption in the Upper Mississippi Valley, 1939 
 
 Gasoline 
 Consump- 
 tion 11 
 (thousands 
 
 Number of 
 Tractors on 
 
 (1940) b 
 
 Private and Commercial 
 
 Passenger 
 Cars, Busses, 
 and Taxis 
 
 Trucks, 
 Tractor 
 
 Publicly 
 Owned 
 
 Vehicles, 
 
 Federal, 
 State, 
 
 County, 
 etc. 
 
 Motor- 
 cycles, In- 
 cluding 
 Official 
 
 Fuel Oil 
 Consump- 
 tion' 1 
 (thousands 
 
 Number of 
 Oil-heated 
 Homes 8 
 
 Illinois 
 
 Indiana 
 
 Wisconsin 
 
 Minnesota 
 
 Michigan 
 
 Iowa 
 
 Missouri 
 
 Upper Mississippi 
 Valley (a) 
 
 United States (b). . . . 
 
 Percentage (a) to (b) 
 
 33,803 
 15,973 
 13,494 
 13,111 
 27,455 
 13,103 
 15,590 
 
 132,529 
 539,963 
 
 24.5 
 
 126,069 
 73,221 
 81,195 
 
 105,075 
 66,524 
 
 128,516 
 45,155 
 
 625,755 
 
 1,567,430 
 
 39.9 
 
 1,624,031' 
 824,196 
 705,751 
 721,473 
 
 1, 326,808* 
 671,858' 
 735,485 
 
 6,609,602 
 26,201,395 
 
 25.2 
 
 225,592' 
 136,646 
 142,907 
 118,577 
 145,503 h 
 94,554' 
 141,609 
 
 1,005,388 
 4,413,692 
 
 22.8 
 
 13,863 
 8,751 
 
 10,515 
 8,522 
 3,305^ 
 7,815 
 4,852 
 
 57,623 
 
 394,783 
 
 14.6 
 
 7,256 
 5,405 
 3,695 
 2,343 
 4,645 
 2,838 
 2,317 
 
 28,499 
 
 126,233 
 
 22.6 
 
 22,561 
 8,977 
 5,793 
 5,909 
 
 10,119 
 2,969 
 9,339 
 
 65,667 
 456,943 
 
 14.4 
 
 159,822 
 19,034 
 76,091 
 
 117,362 
 
 557,304 
 2,907,980 
 
 a Minerals Yearbook, 1941. 
 
 b Census of Agriculture: 1940, Third Series. 
 
 Statistical Abstract of the United States, 1940. 
 
 d Minerals Market Reports, M.M.S. No. 892, January 31, 1941. 
 
 6 Census of Housing: 1940, Second Series. 
 
 f Busses included with trucks. 
 
 g State, county, and municipal vehicles included a 
 
 private and commercial vehicles. 
 h Taxicabs included with trucks. 
 
 Table IX 
 
 Production of Refined Petroleum Products, 
 
 Central Refining District, 1944 
 
 (In barrels) 
 
 Product 
 
 Quantity 
 
 Gasoline 
 
 142,276,000 
 56,890,000 
 34,544,000 
 13,665,000 
 
 
 
 
 
 4,526,000 
 
 
 Source: Minerals Yearbook, 1944 (U. S. Bureau of Mines). 
 
 Table XI 
 
 Percentage Yields of Refined Petroleum Products 
 
 in the United States, 1916-1944 
 
 Year 
 
 Gaso- 
 line 
 
 Kero- 
 sene 
 
 Fuel 
 Oil 
 
 Other 
 Products 
 
 1916 
 
 19.8 
 26.8 
 35.1 
 46.6 
 47.3 
 46.1 
 44.5 
 
 14.0 
 12.7 
 8.1 
 5.3 
 
 5.8 
 5.7 
 5.4 
 
 45.0 
 48.6 
 49.3 
 40.2 
 37.3 
 38.6 
 47.2 
 
 21.2 
 
 1920 
 
 11 9 
 
 1925 
 
 7.5 
 
 1930 . . . 
 
 7 9 
 
 1935 
 
 9.6 
 
 1940 . . 
 
 9 6 
 
 1944 
 
 2.9 
 
 
 
 Source: United States Department of the Interior. 
 
 Table X 
 
 Dollar Value of Refined Petroleum Products, 
 
 Central Refining District, 1940 
 
 
 Product 
 
 Value 
 
 
 5447,695,850 
 69,961,450 
 60,336,360 
 30,411,360 
 
 
 
 
 
 
 
 
 Source: Piatt's Oil Price Handbook, 1940. 
 
 Table XII 
 
 Proved Reserves of Petroleum in Selected States, 
 
 as of January 1, 1946 
 
 (In barrels) 
 
 State* 
 
 Proved Reserves 
 
 
 889,839,000 
 
 
 349,620,000 
 303,674,000 
 64,186,000 
 56,721,000 
 
 Arkansas 
 
 
 
 
 41,243,000 
 
 
 Source: Quarterly bulletin of the American Petroleum 
 Institute, April, 1946. 
 
 a These states furnish the bulk of the oil for the Upper 
 Mississippi Valley. 
 
24 
 
 University of Illinois 
 
 ley are approximately 30 per cent of the total for 
 the nation. This large consumption reflects the 
 highly mechanized agriculture, industry, and trans- 
 portation of the region. 
 
 In Illinois and in near-by states are located re- 
 serves of petroleum which supply refineries in the 
 Chicago district, at Wood River, and in southeast- 
 ern Illinois; additional reserves of petroleum for 
 the needs of the Chicago refineries are available 
 from the Mid-continent states and are transported 
 by pipe line and barge. The estimate of proved re- 
 serves as of January 1, 1946, is shown in Table XII. 
 
 Present estimated reserves represent only a por- 
 tion of recoverable petroleum supplies. Each year 
 exploration uncovers new supplies to replace the oil 
 withdrawn for use. In the past ten years all states 
 that directly supply oil to the Upper Mississippi 
 Valley district, with the exception of Oklahoma and 
 Michigan, have added more reserves than a ten- 
 year production. Chart 8 shows data reported in the 
 quarterly bulletins of the American Petroleum Insti- 
 tute for April, 1945, and April, 1946, and the Oil 
 and Gas Journal, January 25, 1947. Kansas figures 
 for 1946 include Nebraska and Missouri ; Kentucky 
 figures for 1946 include Tennessee. 
 
 Estimates of Reserves Are Conservative. The 
 estimates used in this report include only blocked- 
 out reserves of crude oil known to be recoverable 
 under existing economic and operating conditions. 
 They do not include: (a) oil under unproved por- 
 tions of partly developed fields; (b) oil in untested 
 prospects; (c) oil that may be present in unknown 
 prospects in regions believed to be generally favor- 
 
 able; (d) oil that may become available by second- 
 ary recovery methods from fields where such meth- 
 ods have not been applied. 
 
 Oil Supply for the Future. Modern technology 
 is showing the way by means of which a permanent 
 supply of liquid fuel can be assured. In addition to 
 the known supplies of petroleum in developed pools 
 and fields, and the additional discoveries that will 
 continue to be made each year, there are five re- 
 serve sources from which liquid fuel may be ob- 
 tained if the present supply becomes inadequate. 
 
 The First Reserve — Refinery Products. The 
 first reserve is that portion of the refinery product 
 which is made up of heavy residual oils and still 
 gases. Modern technology is continually developing 
 and improving processes whereby more of the 
 highly valued products are recovered from crude oil 
 in the refinery process. 
 
 The Second Reserve — Natural Gas. Gasoline 
 and other liquid hydrocarbon may be made from 
 natural gas at a manufacturing cost, for the gaso- 
 line, of approximately 5 to 6 cents a gallon if 
 natural gas is available at about 5 cents a thousand 
 cubic feet. 
 
 The known reserves of natural gas in the Texas 
 Panhandle and in Kansas can be made to augment 
 existing sources of liquid fuel without impairing the 
 services to existing natural gas markets. (Science- 
 Supplement, Vol. 106, No. 2627, May 4, 1945, p. 12.) 
 
 Proved reserves of natural gas in the United 
 States are estimated to be in excess of 140 trillion 
 cubic feet. In the principal gas-producing states in 
 
 Oklahoma 
 
 i i 
 
 ii i i 
 
 1 i 
 
 1,521,044,000.. 
 
 
 
 
 
 
 
 i 
 
 1,049,475,000.. 
 
 
 
 
 
 
 
 
 
 
 
 Illinois 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 KEY: 
 
 HB9^B Reserves 
 
 Discovered and Accumulated Production, 1935-1946 (i 
 
 
 
 
 
 Michigan 
 
 213,465,000.. 
 
 ....■HMM 
 
 
 
 
 
 89,371,000.. 
 81,362,000.. 
 
 82,214,000.. 
 46,381,000., 
 
 Chart 8. 
 
 ■ ■■■1 1 
 
 ....□ 
 
 Petroleum Reserves: 
 
 discovered Jan. 1, 1935 to Dec. 31, 1946 
 iduclion, Jan. 1, 1935 to Dec. 31, 1946 
 
 n millions of barrels) 
 
Long-ierm Manufacturing Opportunities in the Upper Mississippi Valley 
 
 25 
 
 the Mid-continent, the reserves are estimated as 
 follows: 11 Trillion 
 
 cubic feet 
 
 Kansas 11 
 
 Oklahoma 6 
 
 Texas 82 
 
 Louisiana 17 
 
 Substantial additions to this reserve are antici- 
 pated from future discoveries. 
 
 The Third Reserve — Secondary Recovery. The 
 recovery of oil from fields or pools by the applica- 
 tion of gas pressure or water flooding has added a 
 reserve over and above the estimates. This method 
 of production is practiced in Illinois and has added 
 to the recoverable supply of oil. 
 
 "Testimony of E. DeGolyer before the Federal Power 
 Commission in hearings at Kansas City on September 18, 
 1945, and reported in the New York Times of September 
 19, 1945. 
 
 The Fourth Reserve — Imported Oil. Oil from 
 South America can supplement domestic supply in 
 quantities ample to meet domestic requirements for 
 many decades. 
 
 The Fifth Reserve — Coal and Shale. "This 
 natural and competitive development of substitute 
 processes, plus information from abroad, has 
 already shown us how to make unlimited quantities 
 of gasoline from coal at prices lower than those 
 prevailing after World War I and, if allowed to 
 continue the natural course, will almost certainly 
 reduce the costs of gasoline made from coal or the 
 richer oil shales to a figure not over 5 cents per gal- 
 lon above present gasoline costs from crude 
 petroleum." 12 
 
 12 R. E. Wilson, "Liquid Fuel from Non-Petroleum 
 Sources," Chemical and Engineering News, Vol. 22, No. 15, 
 August 10, 1945, p. 1245. 
 
FOOD SUPPLY 
 
 Indispensable as a foundation of an enduring pro- 
 ductive economy is a sustained and assured supply 
 of food at low cost. Low-cost food is a resultant of 
 several environmental factors — - fertile soil, level or 
 gently rolling topography, mechanization of agricul- 
 ture, and low-cost transportation. These conditions 
 are met in a superior manner in the Upper Missis- 
 sippi Valley. Upon the level prairie and cleared 
 woodland areas, vast in extent and almost unbroken 
 by intervals of wasteland, mechanization in agri- 
 culture has achieved its highest degree of develop- 
 ment. The same factor of topography has favored 
 low-cost transportation and encouraged alternative 
 methods. Both rail and highway transportation play 
 an important role in the cost of assembling food 
 materials and in distributing food products. 
 
 Highly fertile soil adds to the productivity of 
 mechanized agriculture and of the farmer because 
 each acre operation results in a high yield per man- 
 day effort. "Use of tractor and motor power has, 
 since 1920, released more than 60 million acres of 
 crop and pasture land from feed production for 
 
 work stock into production of commodities for sale. 
 If the trend away from horses and mules continues 
 until 1950, another 8 to 10 million acres will 
 be made available for commercial production." 13 
 A large part of this change has occurred in the 
 states of the Upper Mississippi Valley. Census fig- 
 ures for the past twenty-five years show a consistent 
 decline in the number of horses and mules on farms 
 in those states, from 6.7 million in 1920 to 2.8 mil- 
 lion in 1945, a decrease of almost 60 per cent. 
 
 Thus one of the limiting factors to population 
 growth and industrial expansion — a land base for 
 food supply — is still expanding in this area as me- 
 chanical power continues to replace animal power, 
 releasing millions of acres of land hitherto used in 
 producing feed for work animals to become avail- 
 able for commercial production. 
 
 Map 8 shows the distribution of tractors on farms 
 in the various states, and the percentage of land in 
 farms in the Upper Mississippi Valley is depicted 
 in Map 9. 
 
 18 Report of the Chief of the Bureau of Agricultural 
 Economics, Fiscal Years, 1943-44, p. 17. 
 
 Map 8. Distribution of Tractors in the United States, 1940 (in thousands) 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 27 
 
 Map 9. Percentage of Farm Land in Counties of the 
 Upper Mississippi Valley, 1939 
 
 The importance of agriculture as an industry in 
 Illinois and other states of this region may be ob- 
 served in Table XIII, which presents data as shown 
 in the most recent Census of Agriculture, that for 
 
 1945. The proportion of soybeans produced in the 
 Upper Mississippi Valley is outstanding. Oats, corn, 
 and swine raised in these states represent a signifi- 
 cant proportion of national production. 
 
 Meat Packing and Food Supply 
 
 The position of meat among the major items of 
 food produced in this country is shown in Table 
 XIV. Meat products account for 32 per cent of the 
 value of product of the principal items of food and 
 allied products (not including liquors), and form 
 a large part of the American worker's food budget. 
 
 In the Upper Mississippi Valley states the meat- 
 packing industry occupies a position of fundamental 
 significance. In Illinois it leads all others in number 
 of workers, and in the Chicago district it is ex- 
 ceeded only by the steel industry. Data on employ- 
 ment in this industry over two decades are shown 
 in Table XV. 
 
 The further development of this industry in Chi- 
 cago and in the smaller industrial centers in the 
 Upper Mississippi Valley is limited only by the 
 potential productivity of the farm lands in this fer- 
 tile and productive economic region. 
 
 There are two ways in which the food potential 
 of these states has been expanded in the past two 
 decades: (a) by the addition of acreage formerly 
 devoted to feeding work animals; and (b) by im- 
 proving the productivity of the land itself through 
 soil treatment, control of diseases and pests, fertili- 
 zation, hybridized crops, and improved breeds of 
 plants and animals. 
 
 Table XIII 
 
 Agriculture in Illinois, the Upper Mississippi Valley, and the United States, 1945 
 
 (In thousands) 
 
 Geographical Division 
 
 Acreage of 
 
 Number of 
 
 Farm Land 
 
 Wheat 
 
 Corn 
 
 Oats 
 
 Soybeans 
 
 Cattle 
 
 Swine 
 
 Sheep 
 
 
 1,142,818 
 
 64,740 
 
 91,202 
 
 41,503 
 
 10,873 
 
 3,833 
 
 1,780 
 
 87 
 
 335 
 1,997 
 
 685 
 
 81,909 
 
 59,759 
 
 4,690 
 3,231 
 1,336 
 2,615 
 7,652 
 2,771 
 
 40,922 
 625 
 
 Illinois (b) 
 
 31,602 
 20,027 
 23,615 
 33,140 
 34,454 
 35,278 
 
 1,211 
 1,257 
 57 
 1,139 
 113 
 1,175 
 
 9,140 
 4,554 
 2,667 
 5,773 
 10,993 
 4,658 
 
 3,142 
 1,175 
 2,718 
 4,305 
 4,697 
 1,804 
 
 3,278 
 1,900 
 3,962 
 3,790 
 5,432 
 3,261 
 
 Indiana 
 
 549 
 
 
 358 
 
 Minnesota 
 
 1,122 
 1,354 
 
 Missouri 
 
 1,257 
 
 Total, Upper Mississippi Valley (c) . . . 
 
 178,116 
 
 4,952 
 
 37,785 
 
 17,841 
 
 8,717 
 
 21,623 
 
 22,295 
 
 5,265 
 
 Percentage (b) to (a) 
 
 2.8 
 
 1.9 
 
 10.0 
 
 7.6 
 
 35.3 
 
 4.0 
 
 7.8 
 
 1.5 
 
 Percentage (c) to (a) 
 
 15.6 
 
 7.6 
 
 41.4 
 
 43.0 
 
 80.2 
 
 26.4 
 
 37.3 
 
 12.9 
 
 Source: Census of Agriculture: 1945. 
 
University of Illinois 
 
 Table XIV 
 
 Value of Product, Principal Items of Food Manufacture 
 
 in the United States, 1939 
 
 (In thousands of dollars) 
 
 Meat-packing products 
 
 Bread and bakery products 
 
 Canned, dried fruits and vegetables 
 
 Beet and cane sugar 
 
 Creamery butter 
 
 Candy 
 
 Ice cream and ices 
 
 Condensed, evaporated milk 
 
 Sausages, prepared meats, etc., not prepared 
 
 in meat-packing establishments 
 
 Biscuits, crackers, pretzels 
 
 Source: Bureau of the Census. 
 
 Flour and Other Mill Products 
 
 The milling of flour is important not only as the 
 first step in converting wheat and other grains into 
 edible foods but also as the springboard for indus- 
 tries engaged in the manufacture of prepared foods. 
 This includes breadbaking, the manufacture of bis- 
 cuits, crackers, pretzels, macaroni, spaghetti, etc. 
 The flour milling and food processing industries, in 
 the main, serve local or regional markets. 
 
 The relative position in flour milling of the states 
 in the Upper Mississippi Valley and the western 
 wheat-growing states is shown in Table XVI, as is 
 also the position of the four principal cities engaged 
 in flour manufacture. 
 
 Employees in Wholesale Meat-Packing Establishments 
 in the Upper Mississippi Valley, 1919-1939 
 
 Year 
 
 Upper 
 Missis- 
 sippi 
 Valley 
 
 Illinois 
 
 Other 
 States 4 
 
 Illinois 
 
 Per- 
 centage 
 
 of 
 Total 
 
 1939 
 
 67,747 
 69,706 
 65,127 
 65,631 
 63,298 
 73,805 
 71,782 
 73,414 
 84,331 
 74,695 
 111,670 
 
 23,492 
 26,120 
 25,217 
 23,704 
 23,680 
 29,618 
 29,609 
 30,236 
 36,144 
 32,136 
 54,179 
 
 44,255 
 43,586 
 39,910 
 41,927 
 39,618 
 44,187 
 42,173 
 43,178 
 48,187 
 42,559 
 57,491 
 
 34.7 
 
 1937 
 
 37.5 
 
 1935 
 
 38.7 
 
 1933 
 
 36.1 
 
 1931 
 
 37.4 
 
 1929 
 
 40.1 
 
 1927 
 
 41.2 
 
 1925 
 
 41.2 
 
 1923 
 
 42 9 
 
 1921 
 
 43.0 
 
 1919 
 
 48 5 
 
 
 
 Source: Census of Manufactures. 
 
 a Indiana, Wisconsin, Minnesota, Iowa, Missouri, Kansas, 
 and Nebraska. 
 
 Dollar Value of Flour Milling Products in 
 Upper Mississippi Valley, 1939 
 
 State — City 
 
 Value of 
 Product 
 
 
 £69,859,000 
 67,437,000 
 
 48,097,000 
 
 42,766,000 
 
 24,569,000 
 17,485,000 
 
 
 (Minneapolis-St. Paul: 39,981,000) 
 
 (Kansas City: 34,513,000) 
 (St. Louis: 9,757,000) 
 
 (Chicago: 11,178,000) 
 
 
 
 10,021,000 
 8,355,000 
 5,304,000 
 1,227,000 
 
 
 
 
 
 Source: Bureau of the Census. 
 
SUMMARY 
 
 Growth in industrial opportunity must be based on 
 the type of resources available for industrial pro- 
 duction, the extent of these resources, and the pur- 
 chasing power of the area in which a market is 
 being sought. Through the past six decades the 
 Chicago industrial area and its interrelated districts 
 in the Upper Mississippi Valley have grown re- 
 markably. The most important factor in attracting 
 this population has been the great economic oppor- 
 tunities offered here. The vital question in the fore- 
 seeable future is the prospect of maintaining these 
 opportunities, for a population can be supported 
 only if there is adequate basis for employment. This 
 report presents a preliminary investigation of the 
 conditions in the basic industries needed to sustain 
 employment. 
 
 In the postwar world hard work and high pro- 
 ductivity will be essential over a long period of time. 
 The waste of war is reflected in a high national 
 debt — a deficit which can be erased only by both 
 high production and high productivity. 
 
 One of the primary requisites of high productiv- 
 ity — that is, a high output per man and a high 
 degree of total employment — is freedom to select 
 the most efficient methods of production and the 
 most economical location of industry with respect to 
 markets, materials, and fuel. 
 
 For continued production and employment at a 
 high level, assuming efficiency in production and 
 economy in location, an industrial area must be 
 amply supported by basic raw materials, fuels, and 
 food supplies. The industries which are considered 
 basic in the Upper Mississippi Valley and which 
 supply the necessary elements for a large industrial 
 base are steel, coke, oil products, meat packing, and 
 flour milling. 
 
 Steel and Coke 
 
 Steel is the raw material for a wide variety of 
 manufacturing industries, large and small, not only 
 in the Chicago industrial area itself but also in the 
 smaller manufacturing cities of downstate Illinois, 
 Wisconsin, Minnesota, Iowa, Missouri, and Indiana. 
 The ultimate source of the primary steel produced 
 in the Chicago district is the vast ore bodies of the 
 Lake Superior district. To reduce this ore to steel 
 requires metallurgical coke, made largely from coal 
 mined in the West Virginia fields. Although the 
 drafts upon high-grade ore have been heavy, there 
 is a vast reserve of low-grade ore, 'practically inex- 
 haustible, that can, when needed, continue to sustain 
 the steel industry of the Chicago district. Coking 
 
 coal is in no danger of early exhaustion. It is now 
 becoming evident that Illinois coals, when blended 
 with eastern coal, can supply a substantial portion 
 of the coking-coal needs of the steel industry in the 
 Chicago district. 
 
 Liquid Fuels 
 
 A substantial part of the Upper Mississippi Valley 
 liquid fuel requirements are supplied from near-by 
 oil fields in Illinois and the Mid-continent, and the 
 area has access to more distant supplies from 
 Louisiana, Texas, and, if need be, from South 
 America, available by low-cost tanker, river-barge, 
 and pipe-line transportation. 
 
 Meat Products 
 
 The supply of meat products from the Upper Mis- 
 sissippi Valley area — the most important item in 
 the American workman's diet — is potentially 
 greater than that necessary to supply the population 
 of this area. This has been increased during the 
 past two decades by bringing under cultivation sev- 
 eral million acres of land in areas adjacent to the 
 Upper Mississippi Valley states and by improved 
 crop technology and feeding practices. 
 
 Although Chicago's percentage of meat packed 
 has decreased, this means merely a decentralization 
 of this activity in the Upper Mississippi Valley and 
 an increase rather than a decrease in the amount of 
 meat available at a minimum of transportation and 
 distribution costs. 
 
 Grain -Mill Products 
 
 The production of flour and other grain-mill prod- 
 ucts is decentralized throughout the Upper Missis- 
 sippi Valley cities. Minneapolis, Milwaukee, and 
 Kansas City are more important than Chicago as 
 centers for the processing of grain products. 
 
 Market Opportunity 
 
 The uniquely favorable combination of a highly in- 
 dustrialized area in the midst of a highly productive 
 agricultural area has created a region of locally high 
 purchasing power — the summation of agricultural 
 crops sold and wages paid in manufacturing, retail 
 and wholesale trade, mining and other industries. 
 
 Finally, the primary industries of the Chicago dis- 
 trict and the abundant raw materials of the Upper 
 Mississippi Valley states offer most of the favorable 
 conditions necessary for an era of sustained 
 productivity. 
 
APPENDIX 
 
 Table 1 
 Consumption of Coal by Manufacturing Industries, 1939 
 
 Industrial Area* 
 
 Number of 
 Wage Earners 
 
 United States 
 
 New York-Newark-Jersey City . . . 
 *Chicago 
 
 Philadelphia-Camden 
 
 Detroit 
 
 Boston 
 
 Pittsburgh 
 
 Cleveland. ■■■'■, 
 
 *St. Louis .* 
 
 *Milwaukee 
 
 *Minneapolis-St. Paul 
 
 Indianapolis 
 
 Total, Eleven Districts 
 
 Total, Illinois Coal Market Area 
 
 7,886,567 
 
 849,608 
 483,593 
 321,725 
 311,332 
 237,496 
 191,903 
 140,653 
 126,831 
 
 98,414 
 . 48,608 
 
 38,838 
 
 2,849,001 
 757,446 
 
 142,787,289 
 
 5,585,366 
 13,615,216 
 4,253,159 
 7,329,380 
 2,372,195 
 16,594,696 
 6,540,233 
 1,971,454 
 1,596,678 
 632,207 
 769,458 
 
 61,260,042 
 17,815,555 
 
 Average 
 
 Tons 
 Consumed 
 per Worker 
 
 28.1 
 13.2 
 23.5 
 10.0 
 86.5 
 46.5 
 15.5 
 16.2 
 13.0 
 
 21.5 
 23.5 
 
 Source: Census of Manufactures: 1939. 
 
 * Cities in Illinois Coal Market Area. 
 
 tt This term signifies an area having as its nucleus an important manufacturing city and com- 
 prising the county in which the city is located, together with any adjoining county or counties in 
 which there is a great development of manufacturing industry. 
 
 b Includes 1,788,246 tons of anthracite. 
 
 Table 2 
 
 Tons of Coal (excluding railroad fuel) Shipped to Consumer States 
 
 in the Illinois Coal Market Area, 1945-1946 
 
 
 Total Shipments* 
 
 Shipped by Rail 
 
 Shipped by Water 
 
 Consumer State 
 
 1946 
 
 1945 
 
 1946 
 
 1945 
 
 1946 
 
 1945 
 
 
 37,110,823 
 12,456,486 
 6,839,142 
 1,364,254 
 5,548,302 
 6,467,394 
 1,668,896 
 305,469 
 818,696 
 
 40,261,246 
 12,995,171 
 7,228,858 
 2,079,281 
 5,587,158 
 7,854,271 
 2,116,632 
 270,036 
 819,462 
 
 35,387,957 
 3,754,143 
 6,720,991 
 1,364,254 
 1,632,711 
 6,467,394 
 1,661,327 
 93,573 
 466,293 
 
 38,200,066 
 4,106,165 
 7,122,466 
 2,079,281 
 1,676,937 
 7,854,271 
 2,108,321 
 61,102 
 470,687 
 
 1,722,866 
 
 8,702,343 
 
 118,151 
 
 2,061,180 
 8,889,006 
 
 
 
 106,392 
 
 
 
 3,915,591 
 
 3,910,221 
 
 
 
 7,569 
 211,896 
 352,403 
 
 8,311 
 208,934 
 348,775 
 
 
 
 
 Total, Nine States 
 
 72,579,462 
 
 79,212,115 
 
 57,548,643 
 
 63,679,296 
 
 15,030,819 
 
 15,532,819 
 
 Source: Monthly Coal Distribution Reports (U. S. Bureau of Mines), No. 172 (1945); No. 184 (1946). 
 8 Does not include shipments by truck, for which data are not available. 
 
Long-term Manufacturing Opportunities in the Upper Mississippi Valley 
 
 Table 3 
 
 Consumption of Fuel, by Kind and Quantity, and Cost of Fuel and of Purchased Electric Energy, in Manufacturing 
 
 Industries in the Illinois Coal Market Area, by States, 1919, 1929, and 1939 
 
 State and year 
 
 Coal 
 (net tons) 
 
 Coke 
 
 (net tons) 
 
 Fuel Oil 
 (barrels) 
 
 Gas 
 (M cu. ft.) 
 
 Total Cost 
 of Fuel and 
 
 Purchased 
 Electric 
 Energy 
 
 Total Cost 
 of All Fuels 
 
 Illinois 
 
 1939 
 
 10,270,060 
 20,315,068 
 16,769,792 
 
 1,132,933 
 2,392,687 
 2,171,655 
 
 139,803 
 
 636,569 
 
 1,410,002 
 
 1,626,162 
 2,965,300 
 2,529,596 
 
 1,702,026 
 3,322,325 
 4,133,992 
 
 162,436 
 694,098 
 920,908 
 
 74,021 
 232,890 
 194,378 
 
 31,737 
 132,283 
 99,950 
 
 3,638,095 
 5,794,275 
 5,387,834 
 
 2,705,566 
 5,018,738 
 3,903,043 
 
 56,459 
 103,287 
 134,841 
 
 12,299 
 30,871 
 60,523 
 
 210,841 
 464,538 
 440,452 
 
 80,135 
 156,925 
 194,758 
 
 9,133 
 99,877 
 56,904 
 
 636 
 1,965 
 1,498 
 
 996 
 5,341 
 9,103 
 
 83,535 
 272,010 
 
 542,938 
 
 6,663,773 
 11,151,489 
 4,876,501 
 
 232,800 
 739,623 
 573,958 
 
 2,541,433 
 3,056,301 
 3,168,330 
 
 778,292 
 757,854 
 292,661 
 
 1,300,443 
 2,401,441 
 1,839,968 
 
 151,363 
 
 538,709 
 430,064 
 
 15,827 
 18,451 
 2,559 
 
 19,962 
 60,458 
 73,454 
 
 1,649,029 
 
 1,628,872 
 
 616,799 
 
 160,962,119 
 
 55,534,753 
 3,557,698 
 
 9,857,796 
 374,054 
 181,957 
 
 25,966,766 
 36,319,485 
 13,022,876 
 
 16,981,571 
 
 14,384,487 
 1,438,853 
 
 19,880,166 
 10,517,620 
 1,658,684 
 
 5,166,991 
 108,010 
 75,956 
 
 141,240 
 66,235 
 6,451 
 
 2,058,430 
 853,379 
 11,992 
 
 2,130,951 
 8,016,028 
 1,270,809 
 
 $ 94,433,401 
 163,925,284 
 125,668,595 
 
 11,858,637 
 17,804,999 
 14,060,998 
 
 8,793,739 
 14,428,979 
 15,477,575 
 
 16,159,612 
 26,884,058 
 22,311,828 
 
 19,721,994 
 30,082,748 
 26,555,791 
 
 4,044,618 
 6,777,227 
 7,030,388 
 
 662,291 
 
 1,112,891 
 
 971,825 
 
 1,086,789 
 1,497,829 
 1,079,684 
 
 32,439,443 
 46,545,165 
 
 42,248,215 
 
 $ 63,431,740 
 
 1929 
 
 130,932,032 
 
 1919 
 
 
 Iowa 
 
 1939 
 
 6,824,085 
 
 1929 
 
 12,459,845 
 
 1919 
 
 Kansas 
 
 1939 
 
 5,667,459 
 
 1929 
 
 10,730,514 
 
 1919 
 
 
 Minnesota 
 
 1939 
 
 10,522,302 
 
 1929 
 
 20,790,065 
 
 1919 
 
 
 Missouri 
 
 1939 
 
 10,445,030 
 
 1929 
 
 19,201,640 
 
 1919 
 
 
 1939 
 
 2,240,541 
 
 1929 
 
 4,766,025 
 
 1919 
 
 
 North Dakota 
 
 1939 
 
 388,777 
 
 1929 
 
 888,194 
 
 1919 
 
 
 1939 
 
 620,099 
 
 1929 
 
 1,082,387 
 
 1919 
 
 
 Wisconsin 
 
 1939 
 
 20,898,959 
 
 1929 
 
 34,122,235 
 
 1919 
 
 
 Source: Census of Manufactures: 1939. 
 * Figures not available. 
 
University of Illinois 
 
 Table 4 
 Average Value per Net Ton of Coal at Mines, 1880-1946 
 
 Anthracite Bituminous 
 
 1881.. 
 1882.. 
 1883.. 
 1884. . 
 1885.. 
 1886.. 
 1887.. 
 1888.. 
 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.. 
 
 «1.47 
 
 2.01 
 
 2.01 
 
 2.01 
 
 1.79 
 
 2.00 
 
 1.95 
 
 2.01 
 
 1.91 
 
 1.44 
 
 1.43 
 
 1.46 
 
 1.57 
 
 1.59 
 
 1.51 
 
 1.41 
 
 1.50 
 
 1.51 
 
 1.41 
 
 1.46 
 
 1.49 
 
 1.67 
 
 1.84 
 
 2.04 
 
 1.90 
 
 1.83 
 
 1.85 
 
 1.91 
 
 1.90 
 
 1.84 
 
 1.90 
 
 1.94 
 
 2.11 
 
 2.13 
 
 1.12 
 1.07 
 0.94 
 
 1.00 
 0.99 
 0.99 
 0.99 
 0.99 
 0.96 
 0.91 
 0.86 
 0.83 
 0.81 
 0.80 
 0.87 
 1.04 
 1.05 
 1.12 
 1.24 
 1.10 
 1.06 
 1.11 
 1.14 
 1.12 
 1.07 
 1.12 
 1.11 
 1.15 
 1.18 
 
 1914.. 
 1915.. 
 1916.. 
 1917.. 
 1918.. 
 1919.. 
 1920. . 
 1921.. 
 1922.. 
 1923.. 
 1924. . 
 1925.. 
 1926.. 
 1927.. 
 1928.. 
 1929.. 
 1930.. 
 1931.. 
 1932.. 
 1933.. 
 1934. . 
 1935.. 
 1936. . 
 1937.. 
 1938.. 
 1939. . 
 1940. . 
 1941.. 
 1942.. 
 1943.. 
 1944. . 
 1945.. 
 1946. . 
 
 52.07 
 2.07 
 2.30 
 2.85 
 3.40 
 4.14 
 4.85 
 5.00 
 5.01 
 5.43 
 5.43 
 5.30 
 5.62 
 5.26 
 5.22 
 5.22 
 5.11 
 4.97 
 4.46 
 4.17 
 4.27 
 4.03 
 4.16 
 3.81 
 3.92 
 3.64 
 3.99 
 4.26 
 4.50 
 5.06 
 5.57 
 5.90 
 6.68 
 
 51.17 
 1.13 
 1.32 
 2.26 
 2.58 
 2.49 
 3.75 
 2.89 
 3.02 
 2.68 
 2.20 
 2.04 
 2.06 
 1.99 
 1.86 
 1.78 
 1.70 
 1.54 
 1.31 
 1.34 
 1.75 
 1.77 
 1.76 
 1.94" 
 1.95 
 1.84 
 1.91 
 2.19 
 2.36 
 2.69 
 2.92 
 3.06 
 3.44