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24 MARINE REVIEW AND MA CONSOLIDATED LAKE SUPERIOR CO. President Shields Issues an Appeal to the Stockholders--The Earnings of the Company Conservatively Estimated. President Cornelius Shields of the Consolidated Lake a, perior Co. has flatly told the stockholders of the ane t i unless they come to the 'rescue and subscribe for the bonds ately offered to them, the entire property must pass into the hands o its creditors. In a circular letter sent to the stockholders he an- nounces that unless the proposed Pen bond issue is ae the whole property must be turned over to creditors. The cred- itors are New York and Philadelphia banks, headed by Speyer & Co. of New York, who hold all available collateral security of the company for three loans aggregating $5,050,000. President Shields in his appeal says: ee a ei Bs "The Consolidated Lake Superior Co. is in a critical condition from which it can be rescued only by prompt and decisive action on the part of the stockholders. By means of the issue of $12,- 500,000 of thirty-yeat 4 per cent. bonds there must be provided the full amount of $7,500,000 with which to take care of the temporary loans of $5,050,000 and about $1,500,000 of current debts. Unless this entire sum can be provided in some way the whole property must pass into the hands of creditors, and forced liquidation, with ail of the works idle and unproductive, 1s sure to result in the sacrifice of a great part of the investment. On the other hand, if the_$7,800,000 can be provided the company will be free of its floating indebtedness, with working capital sufficient to carry on its business, and in a position to. earn double the amount of its fixed charges." ' Since Mr, Shields took the general management of the Clergue group of industries at Sault Ste. Marie he has made a very businesslike investigation of its affairs and has been very impartial and candid in his statements. His recent report to the directors on the company's condition and eee gives the fol- lowing figures as to estimated earnings of the various undertak- ings for the fiscal year ending June 30, to04, and the fixed charges to be met during the same period: Estimated earnings--Helen iron ofé mine, $108,000; steel rail mill, $400,000; saw mill, $78,000; veneer mill, $40,000; pulp mills, $78,000; Algoma Central steamship lines, $80,000; Algoma Cen- tral & Hudson Railway, $175,000; Manitoulin & North Shore Railway, $28,000; street railway and fetry, $30,000; Michigan Lake Superior Power Co., $110,000; Lake Superior Power Co., $20,000; Tagona Water & Light Co., $35,000; car shops, $15,000; Grace gold mine, $15,000; total, $1,170,000. : Fixed charges--Michigan Lake Superior Power Co., $175,- 000; street railway and ferry, $30,000; Tagona Water & Light Co., $9,600; town debentures, $12,423; total, $227,023. The foregoing would leave estimated net earnings for the year of $942,977. Commenting on these figures Mr. Shields says: "This state- ment can be accepted as a conservative estimate of the earnings for the coming fiscal year. Any change from these figures are likely to be in the direction of larger earnings rather than a de- crease." In a foot note dated July ro, 1903, the president point- ed out that two months have elapsed since the report was pre- sented and adds: "It seems only proper to state that the esti- mates and opinions contained in the report have been abundantly substantiated." Mr. Shields' report is based upon personal in- vestigation. "Everything doubtful," he! says, "has been thrown out; estimates of earnings have been graded down to a point that seems to be free from doubt, and estimates of cost have been made high to provide for all possible contingencies." The condition of the various productive properties of the company is gone into in detail. Speaking of the Helen mine, and of the limits of the ore body on the second or lower levels, Mr. Shields says that it has been demonstrated that the walls of the ore body are not converging so far; on the contrary the walls are practically parallel and probably continue thus to a considerable depth. Continuing he says: "The quantity of ore above the lower level can be closely cal- culated, and it is safe to count upon about 700,000 tons thus measured up. Present knowledge of the mine warrants the cal- culation that every foot of additional depth within the walls now defined will add 7,500 tons to the present ore body. Since the report was written (May 5, 1903) the drill has been put down about 107 ft. below the lower level and is still (July 11, 1903) going in good shape. In three years the Helen mine has shipped 584,000 tons of ore. The ore mined during the winter and on the stockpile at the opening of navigation amounted to 102,841 tons of No. 1 and 44,700 tons of No. 2. The present output is from 1,000 to 1,200 tons per day, which we may be able to bring _ up to 1,500 tons during the season. We are counting upon the shipment of about 350,000 tons during the season. At 30 cents a. ton profit, this should yield a net profit of $105,000 during the year. - This is the mine profit only, transportation being consid- ered separately. Helen ore is of non-Bessemer grade and will average for the season about 59.00 iron, 0.14 sulphur and 0.10 phosphorus. The company owns several other iron ore prospects on the Michipico- ten range of sufficient promise to warrant thorough examination Since the report was written, at which time the shaft at the Josephine mine was down to about 150 ft., four drill holes have been put down on the Josephine with satisfactory showing of ore that promises to come within the Bessemer limits. On the Mes- aba range the company has one-quarter of section 16 (the Wood- ee mine). Only a small portion of this tract has been ex- plored with the drill, but 2,500,000 to 3,000,000 tons of non- RINE RECORD. | i er ore have been measured up. Despite the Josephine eeaitae of Bessemer, the company has no Bessemer. It -- att Helen, but will have to buy Bessemer ore for this mixture. t will also be necessary to buy some pig iron to supplement the company's own production in order to run the rail mill to the best advantage. Even under these conditions the company cay make a good profit on fails, particularly in view of the $7 q ton duty and of the bounties on pig iron and steel ingots. The estimated profits on the steel rail plant--34.2 per cent. of the company's total estimated income--are based on the esti. mates of Gen. Supt. D. D. Lewis, which have been independently reviewed. The Dominion's increase of the 20 per cent. in bounties will increase profit on steel rails about 87 cents a ton. On this basis the mill cost of rails is put at $22.47. Interest and deprecia- tion have been allowed at 10 per cent. on $4,500,000, the invest. ment, The output of rails for the fiscal year is put at 125,009 tons, or 500 tons for 250 days. Allowing $3.60 per ton for jp. terest and depreciation, makes total cost of rails $26.07 per ton, With 20 per cent. of Helen ore at $2.25, 80 per cent. of old- range Bessemer at $4.25, coke at $6 and charcoal at 6 cents q bushel, the cost of charcoal pig iron 1s figured $12.66 and coke iron at $13.13, after allowing for bounties. Two hundred and fifty tons per day coke iron and 150 tons charcoal iron from company's furnaces and 100 tons per day of coke iron from Mid- land furnace, in which the company has a two-fifths interest (tak. ing their iron at $20 per ton), the company would have 500 tons daily at average cost of $14.66 and enough to run the mill. As- suming $30 to $31 at mill for rails, which is allowing for only a small portion of the advantage from the $7 duty, there would be at least $4 profit, or $500,000 on 125,000 tons. To be safe, however, Mr. Shields has reduced this 20 per cent. and figured on $400,000 from the steel rails. The revenues of the Michigan Lake Superior Power Co. are estimated at $200,000 for the year--$100,000 from the Union Car- bide Co. and $100,000 from the Trans St. Mary's Traction Co, The Algoma Central Railway is estimated to earn $175,000, Other. sources of income are discussed in detail, including the Grace gold mine, which has yielded a net profit of $1,500 to $1,- 800 a month, and the large amount of ore on hand assures at least $15,000 net for the year. AROUND THE GREAT LAKES. = Capt. George McLeod has been appointed master of the Great Lakes and St. Lawrence river steamer Crerar. ; Capt. George Pierce has been appointed master of the new steamer Leonard of the United States Transportation Co.'s fleet. The United States revenue cutter Tuscarora, destined for the great lakes, will do duty as guard during the international yacht races. David Kennedy, an old resident of Detroit, and for many years an engineer on the great lakes, died last week. He is sur- vived by a widow and four children. Judge Hazel of Buffalo has ordered the sale of the propellor P. H. Brickhead for debts. She will be sold by the United States marshal at Buffalo today (Thursday). The fueling scow Shawmut, owned by E. L. Hedstrom, was sunk by the Anchor liner Mahoning while fueling the steamer Pawnee at Buffalo last week. The Mahoning was not damaged. The steamer Visitor, with United States Assistant Engineer Blunt in charge, is engaged in making a resurvey of the harbor en- trance and channel at Huron, Lake Erie, with a view to building new piers. No. 2 dock at the Ship Owners' Dry Dock Co.'s works, Chi- cago, is being lengthened to 350 ft. This company has begun work on the building of a steel lightship for the government that is to cost about $35,000. _ Maj. Lansing H. Beach is superintending the erection of a new lighthouse at Crisp point, 16 miles west of Whitefish point, on Lake Superior. The equipment for the new light was taken to the site by the tender Amaranth. Work has been started in Chicago by the Chicago & Great Lakes Dredge & Dock Co. on an immense concrete wharf that will cost the Chicago drainage board $100,000. The wharf will be 800 ft. long, extendine from Madison to Randolph streets along the south branch of the river. @ It is announced that the Lumber Carriers' Association, at they monthly meeting of the board'of managers in Detroit, Aug. 4, will advance carrying charges to $2.75 or $3. Ever since the opening of the season the carriers have said the present $2.50 rate was too low to make money, but conditions did not warrant an advance. | The Gilchrist steamer John Craig, which sank upon Simmon's reef on June 26, has been given a partial survey in dry dock at Detroit and is found to be in bad shape. The stem is badly twisted, bilge hogged on port' side, planking loosened up and will have to be replaced for 60 ft*back. Mr, Gilchrist has abandoned her, as a constructive total loss, to the underwriters. The wreck of the barge Champion, lying near the head of Russell's island, St. Clair river, has been abandoned by owner an underwriters and will very probably be blown up. The steamet Colby and whaleback 137 grounded last week in trying to find their way around the sunken barge, the light on the head of the island having gone out. The wreck has since been lighted. |) Capt. Henry Stone took the new steamer Wilbert L. Smith out of Lorain a few days ago on her maiden trip. Just eleven weeks after the keel of this vessel was laid at the Lorain yard 0 the American Ship Building Co, she was ready for a cargo. The Smith is one of a half dozen 6,000-ton steamers built within the °