File:The inside history of the Carnegie Steel Company, a romance of millions (1903) (14753634836).jpg

Identifier: insidehistoryof00brid (find matches)
Title: The inside history of the Carnegie Steel Company, a romance of millions
Year: 1903 (1900s)
Authors: Bridge, James Howard, 1858-1939
Subjects: Carnegie Steel Company Steel industry and trade
Publisher: New York, Aldine Book Company
Contributing Library: Robarts - University of Toronto
Digitizing Sponsor: University of Toronto

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urnaceCompany. None of the other Carnegie partners would haveanything to do with the enterprise. The Cascade Company, having a large body of ore in sight,made special exertions to get a contract to supply the LucyFurnace; and it is told of Kirkpatrick that, having found aspecially rich specimen, he had it analyzed, and, on the strengthof its high metallic contents, he undertook to supply ores equalto any Lake Superior ores, Columbia ore only excepted. Withthis guarantee a contract was made with the Lucy FurnaceCompany; but when the Cascade mineral was worked in thefurnace it developed only forty-five to fifty per cent, of metalliciron instead of sixty-two to sixty-six per cent, as had been ex-pected. By this time new mines in the Lake Superior regionhad developed ore bodies which approached very closely in valueto the Columbia ore; and, under the guarantee, the owners ofthe Lucy Furnace felt that they had a claim against the Cas-cade people for damages. The claim was made, and was met
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6S A RIVALRY OF GREAT FURXACES by denials and counter-claims; and after some unpleasant corre-spondence the Carnegies entered suit for $200,000 damages.Before this came into court, Jay Cooke & Co. failed and thepanic of 73 ensued. The Cascade and Escanaba companies,having used up most of their funds and all of their credit—which was exceptionally good at the outset—found themselvesin no position to meet panic conditions while burdened withthis great suit. They therefore deemed it prudent to compro-mise with the Lucy Furnace owners for $100,000, to be paid ininstalments. Few payments were made under this settlementbefore both the Cascade and the Escanaba companies failed;and the members found themselves personally responsible forthe companies debts. Mr. Kloman, who had imagined theconcerns to be limited liability companies, was a shining markfor the creditors, and he was pushed to the verge of bank-ruptcy. Fearing that such a catastrophe, if forced by Klomans credit-ors, would

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