New York Paper - Valuation of Iron-Mines (with Discussion)

At first blush one is tempted to say that iron-mines are like any other mines, and that principles governing miniug-property in general will apply to them. But there are certain considerations which seem to repay reflection. Gold and copper are more or less independent of transportation. The proof of this is that those metals are profitably mined and shipped from the remotest corners of the earth. Their value is determined by the cost of production on the ground. This is quite true of gold, not quite so true of copper, not at all true of iron. If New York were a. fishing-village and Chicago a swamp, Calumet & Hecla might still be a bonanza. The main element of its value is the 60 lb. of fine copper per ton which it produced for years. But the Mesabi Range is absolutely dependent upon the industrial activity in the United States. Iron-manu-facture in Europe would give it no value whatever. If Chicago and New York had a population of Peruvians or Hindus, the Hull-Rust mine would be as worthless a bit of landscape as any tundra in Alaska. I have discussed these facts more or less casually and dimly in my book on the cost of mining and in my report to the Tax Commissioners of Michigan.1 I shall try here to bring them out in more detail. I have already referred to some differences in the problem of mining as between the more precious metals, e.g., gold, and the less precious and more abundant minerals, like iron and coal; but it is interesting to note that the literature of the eco-