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MARINE REVIE VoL. XIII. CLEVELAND, O., MARCH 26, 1896. No. 3s Establishment of Ore Prices. The announcement that $4 a ton had been agreed upon as the base price by producers of Bessemer ore in the Lake Superior region was not a surprise to vessel owners. Although leading members of the associa- tion of ore dealers have been holding meetings in Cleveland at different times during three months past, and have been so busy as to make the sessions continuous for a week at a time, it has been quite generally un- derstood that their work has had reference to relative prices of the vari- ous ores and to allotments for the different mines, and that they would finally announce the base price at about $4. The price fixed on the pro- duct of the big Norrie mine, Gogebic range, is, as usual, made the basis upon which all other prices are arranged. At $4 Norrie ore is now offered at $1.10 a ton higher than the price at which it sold a year ago, and the advance in all other Bessemer ores is about in the same proportion, Mesabi Bessemers of the same contents as Norrie in iron and phosphorus will sell for $3.45. Franklin, one of the special ores of the Mesabi, will sell for $3.75, and among prices on other high grade ores are $4.50 for Minnesota and $4.25 for Chandler. But it isnot necessary to give prices This statement of ore prices is, of course, an important step in the direction of closing up lake freights and all other matters pertaining to the ore business for the coming season, but the question arises, How will the furnace interests take to an advance of $1.10 over prices which they paid for ore last year? Will they come into the market and buy shortly, or will they enter a vigorous protest against the advance and refuse to to make. purchases until they are absolutely compelled todoso? Ore dealers seem to think that the new prices will be paid without great op- position. They are of the opinion that the firm stand which they have taken will, just as it did a year ago, tend to strengthen the entire situa- tion in the iron industry. They have the strongest kind of an organiza- tion, and it would certainly be to the advantage of all interests to have success attend their efforts in this matter of raising values. They may be forced to go ahead moving ore upon the opening of navigation with- out making sales, but they have the advantage of knowing that their pro- duction is to be limited and that lower lake docks will not, as in the past, be crowded with stocks of ore far in excess of what will be required for the year tocome. All things considered, they have the advantage of the LAKE FREIGHT STEAMER GLOBE. (Built by Globe Iron Works Co., Cleveland, and sold recently to John Gordon of Buffalo tor $185.000.) in detail. It is enough to say that the entire range of values is based on the advance of $1.10 a ton in the price of Norrie. It is probable that prices would have been announced by the ore dealers some time ago but for a reduction in the demand for iron and steel since January, which has resulted in more ore being carried over at this time than it was expected would be now on the docks. The associa- tion some time ago agreed upon an output of 9,500,000 tons of Bessemer, but in view of less favorable conditions in the iron market, a cut of 20 to 25 per cent. has been made in the apportionment of the various mines, and the output of Bessemer is accordingly reduced to about 7,500,000 tons. 'This action does not mean, however, that this will be all the Bess- emer ore produced; neither does it mean that 7,500,000 has been fixed as the entire output of ore. This Bessemer limit of production may be in- creased later, if the market warrants an increase, and there is of coursea big output of non-Bessemer ores that has not as yet been passed upon by the association. It may be noted, however, that the association now has under consideration the matter of dealing with non-Bessemer ores just as they have with the Bessemer product. situation if their combination proves as strong as is expected. They offer $1 on season lake freight contracts from the head of Lake Superior, and in this they are taking little chance, even as regards unsold ore, as it is not at all probable that the ruling lake freight can go much below $1. The vessel owner would be in a better position to secure more than $1 lake freight if ore sales should be made before the opening of naviga- tion at the advanced prices. If the great bulkof the ore is not sold before the opening of navigation, it would seem that the best policy for the vessel owner would be to wait with the ore dealer until sales are made. As there is no hope for any improvement in the draft of water from Lake Superior next season, and as handling charges as well as labor and other important items will be higher, there is a general disposition among vessel owners to refuse the dollar rate. Mathematical calculations show that an iron ship weighs 27 per cent. less than a wooden one, and will carry 115 tons of cargo for every 100 tons carried by a wooden ship of the same dimensions, and both loaded to the same draught of water.