IRON AND STEEL

America’s iron industry began along the Atlantic seaboard during the colonial period. Most of these iron foundries were small and produced iron of inconsistent quality. These operations came and went rapidly. Demand for iron in America was small and producers’ plants were too modest to realize the advantages associated with economies of scale. Moreover, they lacked the technical sophistication that allowed Great Britain to dominate the world iron industry at the time. Poor transportation routes kept producers isolated from both their sources of raw materials and their markets. They relied on charcoal as fuel, which had one large disadvantage: the supply was scattered and dwindled once local timber stands disappeared.
    Between 1860 and 1885, American railroads used 1/3 of all iron produced. Eastern plants, unable or unwilling to modernize, fell even further behind production schedules under the restraints imposed by east coast mine owners who limited the amount of ore mined to keep prices artificially high. Therefore, entrepreneurs west of the Appalachians capitalized on newly discovered coal and ore deposits.

Location, location, location....
The proximity of fuel (coal, coke and charcoal) to the center of iron production remained the most important influence on the location of 19th-century iron plants. Since the fuel was bulky and also had a tendency to deteriorate, transport costs for long distances were often prohibitive. Thus, convenient fuel resources favored the development of the iron industry near the Pennsylvania coal fields south of Pittsburgh.  A similar situation existed in Alabama. Here, an iron production center developed around Birmingham, where local iron and coal deposits existed. Unfortunately, the coal contained a high level of sulphur and produced an inferior grade of iron.
    The only other known deposit of ore lay in the inhospitable forests near the southern shore of Lake Superior. Nonetheless, when William Burt and his surveying team discovered iron ore along the southern Lake Superior shore in 1844, it hardly caused a stir. In fact, none of the party even bothered to file a claim on any portion of the area. "The cause of this indifference," wrote one historian, "doubtless lay in the knowledge of the almost insuperable obstacles which would have to be overcome before the iron could reach market." These impediments became painfully evident to the Jackson Mining Company, the first iron mine in Michigan. In February 1847 it established a forge near their mine to smelt the ore into transportable bars of rough iron called "blooms." Investors hoped that shipping iron in this form to Pittsburgh might make the venture profitable. But transportation costs (fuel) pushed the company’s completed cost per ton to $200, while the market price at the time was $80. In sum, the Jackson Mining Company did not have the financial and engineering capabilities to overcome the problem of distance between the Lake Superior iron ore deposits and the steel mills far to the south. During the second half of the century, however, three interrelated developments opened the region.
    Because the Jackson Mining Company operated in an isolated and desolate area 20-30 miles from the lake, they found it difficult to transport supplies into the region and ore out. Initially, they relied only on sleighs in the winter to haul supplies and ore. (The heavy ore sank wagons into the soft topsoil at any other time of the year.) Later, a few primitive roads connected the mines with the lakeshore. Railroads were decades away and even then proved unprofitable. Water offered company officials the only economical option for transporting their ore southward. But there was a major snag---the falls of the St. Marys River at Sault Ste. Marie. The inconvenience at the falls caused time delays, driving up transport costs. For centuries Native Americans congregated there to fish and trade, portaging their canoes around the rapids. In the 19th century, portaging ore-filled boats was out of the question. Workers had to unload both upbound and downbound ships, haul the cargo 1.25 miles around the falls, and reload it aboard another vessel. Occasionally, teams of men and horses dragged entire ships out of the water and towed them around the falls on rollers. 
    Thus, it comes as no surprise that, shortly after Michigan attained statehood in 1837, government representatives appealed for federal government funds to build a canal around the falls. With congressional support from the lower Mississippi River states, canal proponents finally received the necessary support in 1853. The canal opened on schedule in June 1855.  The opening of the canal, named the Michigan State Locks, but eventually called simply the Soo Locks, perfectly coincided with the increased demand for iron as railroads expanded westward. Between 1850 and 1860, the railroad network in the United States nearly quadrupled in size. The new locks expedited the shipment of much-needed iron ore to steel mills in the southern Great Lakes. In return, investment capital flowed north to the Lake Superior region, expanding mining operations and improving transportation arteries.
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Source: Unknown


The Civil War increased the need for Lake Superior iron, and the volume of shipment began a steady increase, with additional mines opening on the range. In 1861, the output for the Marquette Range was 120,000 tons; by 1868, annual figures had reached a half million tons; and, by 1873, the range produced over one million tons of ore, a figure that steadily increased through the turn of the century.

How important were iron and steel?
In 1926 economist J. Russell Smith observed that in the United States economy "a thousand industries must have iron and steel or they cannot go on." The railroad, the catalyst for the iron industry’s early growth, connected communities across the country with its network of iron and, later, steel. A large number of these cities, in turn, produced items of iron and steel transferred by the trains: farm equipment from Cyrus McCormick’s Chicago factory to rural areas of the Midwest and Great Plains, the revolutionary typewriter from New York to offices around the country and spools of barbed wire from midwestern plants to the Great Plains.
    The importance of iron in settling the Great Plains during the Gilded Age is apparent in a letter dated 28 August 1877 by Kansas homesteader Howard Ruede. In the letter, he provided an inventory of his worldly possessions for his family in Pennsylvania, listing besides food and staples, "stove, tin wash boiler, 2 iron pots, teakettle, 2 spiders (a cast-iron frying pan with short legs to stand among coals on the hearth). 3 griddles, 3 bread pans, 2 tin cups, a steamer, coffee pot, coal oil can, gridiron, wash basin and 2 lb. Nails." Although Ruede could not then afford one, he referred frequently to his neighbors’ plows and how important it was for him to purchase one. He wrote of the various iron tools he used-axes, shovels and pitchforks. With few exceptions, everything Ruede mentioned was made of iron.
    In larger cities, iron and steel made architectural creations possible. The Commercial Style that emerged in the 1870s relied on iron beams for strength. The increased used of steel girders and beams allowed further architectural innovations, culminating in the mighty skyscraper. A growing United States presence, first in the western hemisphere and later worldwide required a plentiful supply of high-grade steel. Both battleships and iron-carrying vessels sailing from the Lake Superior mines made use of steel construction.
    These uses made iron production an indispensable ingredient in America’s national economic growth. Although many factors contributed to the development of the iron and steel industry, it is difficult to imagine one more critical than ore carriers, given the geographic proximity of the components necessary for iron and steel production near the shores of the Great Lakes.

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Source:  Photograph by Randy Schaetzl, Professor of Geography - Michigan State University

This material has been compiled for educational use only, and may not be reproduced without permission.  One copy may be printed for personal use.  Please contact Randall Schaetzl (soils@msu.edu) for more information or permissions.