USA > Michigan > Saginaw County > History of Saginaw County, Michigan; historical, commercial, biographical, Volume II > Part 51
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46 | Part 47 | Part 48 | Part 49 | Part 50 | Part 51 | Part 52 | Part 53 | Part 54 | Part 55 | Part 56 | Part 57 | Part 58 | Part 59 | Part 60 | Part 61 | Part 62 | Part 63 | Part 64 | Part 65 | Part 66 | Part 67 | Part 68 | Part 69 | Part 70 | Part 71 | Part 72 | Part 73 | Part 74 | Part 75 | Part 76 | Part 77 | Part 78 | Part 79 | Part 80 | Part 81 | Part 82 | Part 83 | Part 84 | Part 85
It was planned to make this essentially a workingmen's mine, the com- pany to be composed of practical mine workers, each of whom was to have an equal share of the stock, and to be equally interested in the output. Every man would thus be working for himself, and whatever his ability and industry gained would be of direct value to himself, instead of going as profit to the capitalist class. The mine and the general business of the company was to be directly controlled by a superintendent, who was accountable to a board of managers; and the decision of this body was to be at all times subject to review by the general assembly of the miner-stockholders.
To the socialist mind the plan had much charm, and many workmen were attracted to it. As organized the company consisted of one hundred men with a capitalization of fifty thousand dollars. A year later the number of shareholders and workers was increased to five hundred, and the capital stock to two hundred and fifty thousand dollars. The individual contribu- tions were not large, and some workmen paid for their shares in labor, believing that if the co-operative plan was worth anything, it was worth the trial.
The organization of the company was perfected with the utmost secrecy, and all arrangements quietly made for sinking a shaft. A little tract of forty acres in the eastern limits of the city, upon which the coal lease, originally held by one of the okl companies. had been allowed to lapse, was quickly secured by the Caledonia Company ; and only when actual work on the shaft was begun, did the coal companies and the public learn what was going on. The shaft was put down with surprising rapidity, and on September 1, 1905, coal was sold from the new mine, the entries of which were at a depth of one hundred and sixty-five feet. There still remained the work of clearing away the waste and rock, extending the entries, and erecting the necessary struc- ture over the shaft; and it was late in the Fall before the company was ready to enter the market with its product.
The Operators Take a Hand
Meanwhile the operators had advanced the price of coal for the local trade, to the regular winter rate of four dollars and fifty cents a ton, although coal was sold at points a hundred miles or more away, with three times the freight charge, at considerably less. Thereupon the Caledonia Company began selling coal at four twenty-five a ton.
CALEDONIA COAL CO.
LOADING COAL IN WAGONS AT CALEDONIA MINE No. 1, 1905
-
SOCIALIST MINERS JUST UP FROM THE MINE, 1905
454
HISTORY OF SAGINAW COUNTY
This unheard-of proceeding aroused the operators to quick action. A conference was held at which they explained to the little group of socialist miners their painful duty. But the miners were not won over.
"We must protect the public against extortion," they contended, a prin- ciple which fell on unheeding ears. The operators were firm. "You know the price of life," they said.
The Caledonia reply was instant and unmistakable. The price of coal was dropped to four dollars, then to three-fifty, at which point it remained for several years.
The action of the operators was equally positive. Coal was rushed to the new mine, at which most of its product was sold, and was offered directly in front of the Caledonia mine at the startling price of one dollar and seventy- five cents a ton. This action was kept as secret as possible, as it was hoped that the socialist miners would be brought to their senses, without wide publicity of the methods employed.
The Caledonia Wins Out
The effect was lacking, however, and when the public realized the situa- tion the little mine was flooded with orders. It was soon evident that the operators were beaten, the supply of one seventy-five coal was withdrawn, and the general retail price for the city trade was fixed at three dollars a ton, delivered, fifty cents under the Caledonia price. But the little socialist mine with only forty acres of coal had already gained many friends, and these con- tinted to stand by it.
It was soon evident that the Caledonia mine was the key to the whole situation as only because of its competition was the low price conceded by the operators. If at any time through lack of support or any other cause the C'aledonia had succumbed, the retail price would at once have advanced to the old figure. There were enough consumers in the city who realized this fact, and they kept the mine well supplied with orders. It thrived largely because of the difficulties that beset it.
True to its promise the Caledonia mine ran regularly, even through the bituminous coal strike of J'06, when every other mine in the State was closed down for several months. The owners of the mine worked it them- selves, they had no labor troubles and were unaffected by labor disturbances outside. Every man was personally interested in the company, and eager to do his utmost for its success. They had the whole market to themselves, during the Summer, but the retail price of their product remained at three fifty a ton. The management was in the hands of strong, capable men.
The wage scale of the company was based directly on the Michigan scale, but was applied to "mine run" instead of to the screened coal, as applied by the operators. This was a decided advantage to the miners, and. moreover, was based on a thirty-six inch vein of coal, although in other mines it was based on a thirty inch vein. Day men received ten cents fer diem above the price fixed by the Michigan scale. In 1906 the average wage paid in the Caledonia mine was two dollars and seventy-five cents a day.
Realizing that their original forty acres of land, hedged in on all sides by the coal leases long held by the old companies, would not hold out very long, the Caledonia people soon after secured five hundred acres of good coal land on the outskirts of the city, and set about to develop it by sinking a new shaft. All the profits of the first mine, above the operating expenses, and the proceeds of the new stock issued to new workers under their plan, were used in this development ; and the company prospered to a remarkable degree. Jater another site for extended operations was located on the West Side, in the vein which had produced the best coal in the valley, and it was fully developed.
455
THE COAL INDUSTRY
The Operators Regain Their Advantage
In January, 1910, discouraged by the continual opposition of the opera- tors, who had become stronger than ever, the Caledonia Company entered into an agreement whereby their entire output was contracted for, covering a period of years, by the Consolidated Coal Company. The expected in regard to the city trade at once happened, the retail price being advanced to four dollars a ton ; and in January, 1911, it was raised to four fifty, at which bgure it has since remained. The entire production of the socialist mines has since been marketed by the Consolidated people, who, strange as it may seem, are the very "masters" the socialist miners regard with such inveterate hatred.
Characteristics of Saginaw Coal
According to a report of the State Geologist, the coal veins in Michigan thicken and thin, divide and unite, and pinch out so rapidly, or are cut out by sandstone beds or by erosion so often, that the finding of a thick bed at one place forms no proof that the same bed or other beds may be found a few hundred feet away. On the other hand, the absence of coal at a particular spot does not preclude the possibility of finding workable coal at astonishing short distance away. The beds are often of such local extent that it is never safe to attempt an exploitation of coal deposits without a proving of the area by thorough drilling, and even this is not always reliable. Too often a coal bed gives way to black shale horizontally or vertically, or its place may be taken by sandstone. Cannel coal and bone coal are often observed as gradations from coal to black shale.
The Saginaw coal, one of the thickest and most extensive seams in the State, is probably the best vein in quality, though its coal is non-coking. Its thickness is often more than three feet and forms the base of most of the mining in this county. It is low in sulphur with a decidedly high heating power, and although leaning toward gas and coking types, the high content of moisture renders poor coke. Some of the later mined coals, especially of the Saginaw seam, running well above fifty per cent. in fixed carbon, with little or no sulphur, are much higher in grade. Saginaw coal in comparative tests with Hocking Valley, made by E. C. Fisher, of the Wickes Boiler Company, proved superior in several respects to that most famous steam coal. By tests the superior St. Charles coal, which comes from the same horizon, does not rank in efficiency with Pocahontas, but was better than several other coals, and nearly equal to the best locking Valley. Its good qualities make it a fine domestic coal and a steaming coal much in favor with railroads.
A Rider is a small coal seam found as a cap to the lower and thicker parts of the troughs of coal, and is formed by the settling and compacting made by the fifty or sixty feet of peaty material in the process of forming the main seam, in which shallow basin the rider was made. The middle or Saginaw Rider is a seam of considerable thickness, and possibly the East Side mines have their shafts in this coal. No bed of coal was ever con- tinuous over the basin, as sandstone often replaced the beds, showing that the coal was cut out after it was formed.
Development of Mines
There are some peculiarities in the occurrence of coal which have retarded and will continue to more or less retard its future development. Sometimes the roof is a porous sandstone or is full of fissures, allowing free circulation of water, but usually the water comes from the coal itself or from the foot walls. Heavy beds of sand and gravel in the drifts carry a great
456
HISTORY OF SAGINAW COUNTY
MINERS SETTING ELECTRIC SHORT WALL CUTTER
deal of water. and are formidable obstacles in sinking shafts. Shale forms an impervious roof, but is likely to be weak and thus need considerable tim- bering if close to the rock surface. An impervious roof is all important in this valley, the amount of water to be handled often being a serious problem. The heavy cost of adequate machinery, and of raising the water to the surface consumes a large part of the profit in mining. For economical handling, shafts are sunk into the lowest part of the coal bed, so that all water will run towards the pumping shafts. To find the most advantageous point for beginning operations requires much preliminary drilling. Some of the larger mines have poor roofs of rotten shale or slate, and require much timbering : and frequently a shale roof slakes with exposure to air and scales off, rendering work extremely hazardous.
With all these discouraging conditions the Saginaw operators may be thankful that fire damp and coal dust explosions in this field are hardly known, while noxious gases such as choke damp are not troublesome. The mines are too wet for dust explosions, and only a few miners have ever been injured by this cause in Michigan. Nearly all the casualities in local mines have been caused by falling slate and coal, due to weak and unsupported roofs.
Costs of Mining
Because of excessive water, quicksands, smaller workable areas, thin veins and lower grade coal, the expense of prospecting and proving up areas, of sinking shafts, of mining thin veins, of timbering bad roofs and of hand- ling water is far greater in this valley than in Ohio and Indiana. Higher mining and wage scale and extra allowances for narrow work tend to swell the expense rolls. The average cost of placing a ton of coal on a car, in 1910, was one dollar and seventy-nine cents a ton, which was sixty to eighty cents more than the average cost in West Virginia.
A larger part of the increased cost is keeping up the mines during the Summer, the water making it imperative that the pumps be kept working. Many operators continue mining throughout the dull season, marketing a
457
THE COAL INDUSTRY
limited production at very slight profit, or even at a small loss. It is the cost of getting rid of the water in the local mines that enables Ohio operators, in dull times, to lay down at a small profit their excess coal at the very tipples of our mines, at prices ruinous to the operators.
Freight rates on Saginaw coal to the markets it reaches run from twenty- five cents to seventy cents a ton, and the difference between these and the rates from mines in Ohio and West Virginia, which range from one dollar and forty cents to one dollar and ninety cents a ton, to the same markets, forms a protective tariff for our coal. Thus, there is a net margin of protec- tion to Saginaw coal ranging from nothing to forty-five cents, or a little more for purely local use. But a ton of the best Ohio or West Virginia coal is worth in actual heating power slightly more than a ton of average Saginaw coal. The difference in quality, measured by British Thermal Units, has a money value of twenty to thirty cents a ton, therefore, Saginaw coal cannot compete with the former at the same prices.
Value of Coal Lands
Experience has shown that hardly half of the computed tonnage of a coal bed is ever realized in actual mining. This is due to incomplete and unreliable drilling, sudden or unexpected variation in thickness of the vein, or weak and treacherous roof. The first reduces the total amount of coal present ; the second reduces the amount of workable coal, and the third the amount of available coal, as a large amount of coal must be left as pillars.
A three-foot vein of coal should yield about three thousand tons to an acre, which at ten cents a ton profit gives three hundred dollars as the value of coal land But undeveloped and unproved land is worth only about one- half that of developed tracts, or five cents a ton as a base price. This figure, however, must be discounted according to the length of time before mining begins and number of years of life of the mine. The value of undeveloped but proven property is estimated at one and one-quarter cents a ton, giving a land value of thirty-seven dollars and fifty cents an acre for the coal.
ELECTRIC CONTINUOUS CUTTER MOUNTED ON TRUCK, READY FOR OPERATION
458
HISTORY OF SAGINAW COUNTY
In 1910 the average price received for coal was one dollar and ninety-one cents a ton, from which was deducted the costs of operation, or one dollar and seventy-nine cents, leaving twelve cents as net profit per ton. Some mines average better, some less, and a few have run at a loss. In Saginaw County there are three thousand three hundred and ninety-seven acres of proven coal lands, estimated to contain nine million five hundred and fifty-six thou- sand five hundred tons of coal, and valued at three hundred fifty thousand nine hundred dollars. From these facts it is obvious that Saginaw coal lands have only slight value over and above their value for agricultural purposes.
Methods of Mining
The thin and variable seams of coal, the treacherous shale roofs, and the abundance of water are the factors determining the methods of mining in this State. In general operators must rely upon a thorough draining system and good pumps to keep the entries dry.
The roof of most of the coal seams is a black shale, and often requires a great deal of support. Usually large pillars of coal are left standing for this purpose, but these cut out a great deal of coal per acre ; and the low yield of about one thousand tons per acre is largely due to the use of the room and pillar system. Timbering is much resorted to, but adequate timber is so expensive, due to the exhaustion of the timber supplies near at hand, as to be almost prohibitive.
From actual experience the mining of veins thinner than three feet is more expensive on account of narrow working quarters and greater amount of dead work. Naturally the average cost per ton of mining a four-foot vein is less than that of a three-foot vein. Veins less than two and a half feet in thickness cannot possibly be mined at a profit under present economic con- ditions. In mines working beds more than three feet thick it is often possible to extend operations into areas much thinner, providing the coal is of good quality and the roof is good.
In the method characterized as "shooting off the solid" the only pre- paration consists of drilling the holes necessary for the explosive charge. Objection to this method has arisen because it is injurious to the mining property, in that the unusual charges of powder weaken the roof and pillars, which increases the liability to falls of roof and coal. Furthermore, it is a wasteful method in lowering the quality of the product. The heavy charges of powder necessary to blow down the coal, when it has not been previously undercut or sheared, result in the production of a much higher proportion of fine coal, and render the lump coal so friable that it disintegrates badly in handling and in transportation. This naturally creates dissatisfaction on the part of the consumer who buys lump coal and gets at best mine-run.
Introduction of Mining Machines
The large coal operators of the Saginaw Valley have kept pace with the manufacturing interests, realizing that the best methods and the best equip- ments are absolutely necessary for successful mining. This is shown by the large number of mining machines installed in local coal mines, and the large proportion of coal undercut by them. The first coal cutting machines were introduced in 1898, and materially increased the quality as well as the quantity of the coal mined. They were so successful that twenty-five machines were used in the following year, and the number gradually increased until a maximum of one hundred and twenty was reached, including seven- teen punches, eighteen chain breast and seventy-two short wall or continuous cutters. Even this new equipment did not keep pace with the growth of the industry, as in 1910 the machine mined coal was only forty per cent. of
1
SHORT WALL
.5752
CLOSE UP VIEW OF SHORT WALL CUTTER, SHOWING COMPACTNESS CF CONSTRUCTION
ELECTRIC CHAIN CUTTER OPERATING IN ENTRY
460
HISTORY OF SAGINAW COUNTY
the total production. The ratio, however, increased rapidly after 1910, and in 1914 nine hundred ninety-eight thousand nine hundred tons, or seventy- seven and eight tenths per cent., were raised by machines; two hundred eighty-one thousand six hundred tons, or twenty-two and nine tenths per cent., were "shot off the solid," while only twenty-three hundred and seventy tons, or two-tenths of one per cent., were mined by hand.
Coal Production
It was not until 1896 that Michigan began to be reckoned among the coal producing states. There was a steady but extremely slow increase from twenty-three hundred and twenty tons in 1860 to about one hundred and thirty-five thousand tons in 1882, the one hundred thousand ton mark being realized in the years 1880 to 1882, inclusive. The panicky times immediately following completely demoralized the struggling industry, so that the production fell off to about thirty-five thousand tons. In 1894 it again declined to about forty-five thousand tons, or ten thousand tons less than in 1885.
The sale of Michigan coal is limited mainly to its home markets, and coal mining wholly outstripped the growth of the cities which were its best customers, so that. in 1907. the production was much greater than their capacity to consume. The banner production of that year glutted the coal markets so that coal prices fell to points ruinous to operators; and the dull iron season of 1908 caused Ohio operators to seek new markets for their surplus coal. With cheaper mining facilities they were able to put their product at a small profit upon Michigan markets at prices that meant bank- ruptcy to our operators, if long continued. The year 1008 showed a decided falling off in local production, due to these causes, which has continued to the present.
The total production of the State in 1914 was one million two hundred eighty-three thousand and thirty tons, valued at the mines at two million five hundred fifty-nine thousand seven hundred and eighty-six dollars. This was an increase of fifty-one thousand two hundred and forty-four tons, or four and sixteen hundredths per cent. in quantity, and one hundred four thousand five hundred and fifty-nine dollars, or four and twenty-six hundredths per cent. in value. over 1913. The Michigan production exceeded two million tons in one year only, 1907 : since then decreasing steadily until 1912 when it reached the minimum for the decade.
The decrease is attributed to the competition of higher-grade coals from West Virginia, and to the small demand for lump coal in manufacturing plants of the State, many of which are equipped with mechanical stokers and use slack coal obtained cheaply from the eastern mines. Michigan slack thus becomes a drug on the market, and the coal mines are obliged to depend almost exclusively on the domestic trade which requires lump coal. In Winter the demand for lump coal exceeds the capacity of the mines, and in Summer the production exceeds the demand.
The Output of Saginaw County
The growth of the Saginaw coal industry has been due to the central location of the field, extensive markets near the mines, and to the complete network of railroads to the large manufacturing centers of the State. Sagi- naw and Bay counties produce abont ninety-two cent of the total amount of coal mined in the State; and out of thirty-seven mines, Saginaw County has sixteen and Bay County twelve.
In 1914 the production in Saginaw County was five hundred eighty-four thousand six hundred and forty-eight tons, of which five hundred thirteen thousand nine hundred and eighteen tons were loaded at the mines for ship-
1
461
THE COAL INDUSTRY
ment ; forty-eight thousand one hundred and ninety-four tons were sold to the local trade; and twenty-two thousand five hundred and thirty-six tons were used at the mines for steam and heat. The total valuation was one million one hundred ninety-four thousand four hundred and thirty dollars. an average value of two dollars and four cents a ton at the mine. The aver- age number of working days was two hundred and fourteen, and the number of miners was eleven hundred and ninety.
The coal production of Saginaw County in short tons from 1899 to and including 1914, the last year of which a report has been issued, is shown by the following table :
Tons 455,607
1'07
1.047,927
1900
601,112
1908.
999.338
1901
938,042
1909
859,434
1902
670,304
1910.
667,282
1903
1,011,898
1911.
667,282
1904
ยข06,289
1912.
489,198
1905
915,803
1913.
521,848
1906.
835,475
1914.
584,648
Analyzing the production of 1913 in this county, we have the following table by months :
Mines
operated
Number of
employees
Number of
hours
Days per
month
.Average
daily
wages
wages
Coal
tons
Total
mining cost
.Average Cust
January
11
1,063
17.7
3.30 $62,205.64
47.168 $93.676.54
1.98
February
11
1.072
7.6
18.2
3.53
68,983.72
51.860
94,641.00
1.82
March.
882
7.5
19.6
3.24
56.033.66
40.608
77.869.69 1.91
April.
914
7.5
18.8
3.64 3.32
62,709. 46,435.20 50,382.69 51,379.94
57,140.74 46,965.60
32,500
2.09
October
8
867
7.0
24.4
3.11
66,673.19
54,014
92.181.13
1.70
November
1
825
7.6
21.7
3.16
56.684.55
42,471
80,726.89
1.94
December
8
922
7.9
22.6
3.40
70,904.83
52,654
96,704.39
1.84
$696,498.76 521.848 $992.687.92
Consolidation of Coal Companies
In order to cut ruinous local competition, reduce mining costs, and to better adapt their output to the demands of the trade, many of the Saginaw operators consolidated prior to 1906, and continued with evident good results. This was manifest in better equipped and better managed mines, so that the equilibrium between production and demand was nearly accomplished ..
The Consolidated Coal Company
The largest of these amalgamated companies is the Consolidated Coal Company, which was organized by the principal operators in this field, the Eddy and Wickes coal interests, and ably managed by Robert M. Randall. This company was incorporated February 8, 1906, under the laws of the State
1
800
7.6
19.9
3.59
42,497
87,651.80 70,225.86 74,045.17 75,528.42 81,319.91 68,117.12
2.06
June July
9
865
7.8
15.3
3.83
8
838
7.6
16.6
3.64
39,059
1.93
August
8
816
7.6
16.6
3.46
47,223
1.85
May
908
7.8
15.4
33,950 37,754
1.95
1.91
September
.Aggregate
mined
Tons
1899
TIPPLE AND POWER HOUSE OF WOLVERINE MINE No. 2, THE CONSOLIDATED COAL COMPANY
463
THE COAL INDUSTRY
of Maine. and the first board of directors was composed of Walter S. Eddy, Arthur D. Eddy, Harry T. Wickes, H. C. Potter, Junior. William J. Wickes, S. T. Crapo, Otto Schupp. Robert M. Randall and George L. Humphrey. The officers of the company were: Walter S. Eddy, president : Harry T. Wickes. Vice-president : George L. Humphrey, secretary-treasurer ; Robert A1. Randall, general manager.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.