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MARINE REVIEW. VoL. XV. CLEVELAND, O., FEBRUARY 25, 1897. No. 9. A Brighter Outlook For the Vessels. Lake vessel owners have every reason to feel pleased over develop- ments in the iron and steel industry since the break in the steel rail pool and 'since details of the Carnegie-Rockefeller ore and transporta- tion deal have been coming to light. A statement regarding the lake freight feature of this big transaction, which is published on this page, is reliable in every sentence. It shows that Mr. Rockefeller, with his large vessel interests, is not by reason of this agreement prompted to do anything that would reduce carrying charges on the lakes. On the contrary it may now be said that he is a vessel owner more so than a producer of ore and that his interest will be in the maintenance of -- liberal carrying charges. The statement referred to seems to bear out fully this feature of the situation. Another meeting of iron ore producers, representing mines of all the Lake Superior ranges, including the Mesabi, was held in Cleve- land, Monday. The Rockefeller interests were represented by Mr. F. T. Gates of New York, who has been in charge of all of Mr. Rocke- feller's operations in the ore and vessel business and in the recent agree- ment with the Carnegie company. Mr. Gates, with the representatives of the Minnesota Iron Co. and tae Norrie mine, were of course, the central figures in the meeting. Discussion regarding the possibility of continuing the pool was based on the action of Mr. Rockefeller in turning over toa consuming interest --the Carnegie company--an immense tonnage of ore, on a contract that guarantees a big business for his railway, the Duluth, Mesabi & Northern, at a freight rate that is practically fixed at 80 cents a ton, as the contract provides for an increase in mine royalty corresponding to any decrease that may be made at any time in the rail freight. Thus the question of tonnage for the two iron ore railways of Minnesota--the Duluth & Iron Range and the Duluth, Mesabi & Northern--comes up as another important feature in the affairs of the pool. The Minnesota Iron Co. holds, of course, that Mr. Rockefeller did not act entirely in good faith with the pool in his agreements with the Carnegie interests. The lease of Rockefeller mines on the Mesabi to Carnegie not only shuts off the Minnesota company from opportunity to compete for the sale of a large quantity of ore, but also puts an end to the possibility of the Duluth & Tron Range railway, an..adjunct of the Minnesota company, getting any of this tonnage. The Carnegie-Rockefeller agreement was en- tirely against the interests of the Minnesota company, and while Mr. Gates, the representative of the Rockefeller interests, was ready to go ahead with the pool for another year the Minnesota representatives were not, The Norrie mine owners were also an important factor, as they wanted a very low price fixed upon the product of their big mine, fearing that they would not sell their ore unless the price was made low. A figure somewhat below $3 a ton was spoken of for the Norrie, but the owners of the mine did not regard it as low enough. It is said that Mr. Gates thereupon agreed to take for the Rockefeller interest the entire product of the Norrie mine at the price spoken of, if the question of price for the Norrie was to remain as the only bar to the continuation of the association. It is said also that he offered concessions to the Minnesota company, with a view to overcoming the disadvantages which they have encountered in the Carnegie deal. The meeting concluded. with wide differences between the largest of the ore interests, but with an understanding that the various questions should be taken under advisement and that another meeting is to be held on Monday next. In view of the complicated questions involved in this preliminary meeting, it is the general opinion that the chances are decidedly against a continuance of the pool. There is some talk of maintaining the organization so as to cover reports of sales, etc., even though the pool may go under. The argument. in this regard is that in event of a big improvement in the market for ore, there would not be so much difficulty in,coming {together again and arranging prices. Notwithstanding these differences between the ore eee it is well to note that the tendency is toward improvement in all branches of the iron industry, and it has been so since the dissolution of the steel rail pool. Heavy orders for rails and other steel products have caused a stiffening of pig iron prices, and although there is a very large surplus of Bessemer ore on dock, there is a sign of a better _ future in actual quotations on the London market covering Ameri- can rails and American pig iron. There is every reason to expect also a large production of non-Bessemer ores, as it is understood that southern makers of pig iron are now finding it absolutely impossible to compete for business in northern markets where they have been a disturbing element for some time past. Cost of production in these markets has been reduced below the southern level. Vessel owners may yet be paid better freights in 1897 than they expected a few weeks ago, especially if they do not attempt to hurry matters in their deal- ings with the ore producers. An Authorative Statement, An editorial in Iron Age of Feb. 18, 1897, purports to give with unerring accuracy the principal facts in regard to the Carnegie-Oliver- Reokefeller agreement. -We have it on the very best authority that this editorial article is itself in error in several important particulars, notably in the matter of the azreement respecting the lake freight rate to be paid by the Carnegie interests to the Rockefeller boats annually for transpurting the ore. The editorial declares that the Rockefeller boats are to carry the ore "at the average lake freight rate for the season, which must not in any event exceed 70 cents maximum."' Here is where the New York journal is inerror. The Rockefeller- Carnegie agreement as to lake freight rates provides for neither a max- imum nor a minimum rate. So far as anything in this agreement is concerned, either expressed or implied, the freight rate may rise to any conceivable figure. The agreement provides simply this: 'That the Carnegie and Rockefeller interests will seek at the opening of the season, to fix a rate mutually satisfactory. If they fail to fix such rate during the season, they may fix it.at the close of the season. Failing to fix the rate at the close of the season they mutually agree to take the average of both contract and wild rates for the season be- tween Lake Superior and Lake Erie ports, whatever that may be. This average is not the average of daily rates but is computed by ascertaining the rate actually paid on each ton shipped during the season. The Iron Age was misled by erroneous information regarding the way in which 70 cents actully figures in the contract. Pending the- final settlement, the Carnegie interest agrees to pay provisionally 70° cents per ton on each cargo, this being the figure supposed to represent approximately the cost of handling. But this figure is exclusively provisional and temporary, having no relation whatever in any season to the final settlement for that season. After a great deal of delay, due to labor troubles and other causes, the Brown Hoisting & Conveying Machine Co. is ngw putting the finishing touches on minor parts of the car dumning machine of new design erected on the docks of the Cleveland & Pittsburg Railroad Co. Cleveland. Four other machines of this kind--two at Toledo, one at, Huron and one at Ashtabula --are well along towards completion, and it is confidently expected that they will be ready for the opening of navi- gation, as their completion depends mainly upon minor alterations that may be made as a result of tests now being conducted with the Cleve- land machine. From a mechanical standpoint this new car dumper is. even more wonderful than any of the others now in use. The work- manship is of the very finest kind. In the transfer of coal from the ear to large bottom-dump buckets, and then to the vessel, every move-_ ment is of an easy, sliding kind, and it is more than probable that there will be less breakage of the coal with the machine than would occur in the old system of shoveling from cars to buckets. When the sey-_ eral machines of this type are completed there will be ten car dumpers © at Lake Erie ports, four of which are in Cleveland. The wooden steamer Helena has been fitted with an electric light " plait, So . a a