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A NERVE CENTRE OF VAST INDUSTRY

THE UTILIZATION OF THE WHOLE WATER-POWER OF LAKE
SUPERIOR FOR A MULTITUDE OF ALLIED INDUSTRIES - A
RAILROAD TO HUDSON'S BAY – THE ENERGY OF THE MAN
WHO IS DEVELOPING A REGION OF IMPERIAL EXTENT

BY

DWIGHT E. WOODBRIDGE

O

Mr.

new

water

NE of the greatest industrial move tries that have been developed are the mining

ments of the time is the rediscovery of iron ore, sulphur, nickel and copper ; the

of water-power, and the new era in its manufacture of iron, steel, and a dozen other use since the long-distance transmission of such products; lumbering; the construction power has been made practicable. and operation of railway and steamship lines Francis H. Clergue, a young lawyer of Ban on the lakes and to European ports, and gor, Maine, was among the first to realize the colonization on a large scale. Everyone of enormous possibilities of the

these has grown more or less naturally out of power. Seven years ago, having secured its predecessor. For instance, spruce lumber financial backing, he began a search for a lo is worth from $8 to $10 a cord at the paper cation fitted for his purpose.

He traveled mills. Before Mr. Clergue began to build a westward, examining numerous falls and pulp mill, he bought spruce stumpage from rapids, but found nothing satisfactory until the Canadian government at ten cents a cord. he reached the Sault Sainte Marie. Its pos Thus he produced pulp more cheaply than any sibilities were apparent at a glance, he demon of his competitors. Sulphite pulp is worth strated the value of the property to his nearly twice as much as paper pulp, and he debackers, the utilization of the power of Lake termined to undertake its manufacture. The Superior was at once decided upon, and a first necessity was a supply of sulphur. That company was organized.

from Sicily, used in the paper mills of the The first canal, completed several years United States, cost much for freight alone. ago, is upon the Canadian side of the rapids, But a hundred miles to the eastward of the and is cut about half a mile through the sand- Sault, and easily accessible, were mineral destone rim of Lake Superior. It furnishes posits whose ore was a combination of sulphur, 20,000 horse-power, but when it was first nickel, copper and iron.

nickel, copper and iron. Could not the suloffered for sale no one wanted it. The de- phur in this ore be utilized ? A laboratory was mand for cheap energy had not reached the built, and the problem was soon solved. shores of the western lakes, and manufac Then a mine in the Sudbury country was turers were unwilling to move their plants to bought and furnaces for roasting the ore and such a remote point. The builders of the a mill for making the pulp were put up. canal saw that, if they were to escape failure After roasting the ore there remained a bythey must make use of the power themselves. product rich in nickel. The chemists were Mr. Clergue was equal to the emergency. called upon to devise an electrical method for He had often been in the paper mills about separating and reducing it. After much exhis home in Maine; he was familiar with the periment they succeeded, and long contracts manufacture of pulp; and, since an abundant were made with the greatest of German steel supply of raw material was at hand in the makers, for the purchase of an electrically forests of spruce which stretch northward smelted, nickel-steel product to the amount of from the Sault, he determined to build a mill. 250 tons a day. This mill is now annually making $800,000 Mr. Clergue's chemists, moreover, in the worth of pulp at a handsome profit.

course of their ferro-nickel experiments, found The building of this mill was the first step the ore from the Sudbury mine too rich in nickel in a great industrial scheme. Other indus to make a hard steel without the addition of

a non-nickeliferous pig iron. Here opened been loaded on Lake Erie with steel for Enganother instructive chapter. A short time land last November. When they return, before there had been a "rush” of gold four other ships of equal or greater capacity, hunters to the Michipicoten river, 125 miles will be practically completed in the Clyde north of the Sault, on the shores of Lake yards. By that time, too, a line of three Superior. One of the prospectors found, not passenger ships between the Sault and gold, but an outcrop of hematite iron which he Clergue's new Manitoulin railway to the East, offered for $500, and Mr. Clergue bought the and Michipicoten to the Northeast will be in claim. The engineers whom he despatched operation. to examine and report upon his purchase This brings us to the railway projects of found a vast deposit of ore, covered only by this exceptional man of forty-two, which are rotting leaves and mold.

intended to make the Sault the entrepôt of a In the summer of 1899, a supply of iron populous agricultural and industrial region. was needed for the manufacture of nickel- The Manitoulin and Northshore railway will : steel. One day in August, a scow, carrying open up the mineral riches of Sudbury and civil engineers, navvies, horses and tools, was Manitoulin. Greater things, however, are extowed out of the Sault harbor bound for the pected from the Algoma Central, which runs Indian mission of Michipicoten. Arriving northward from the Sault, and will soon touch there the men went ashore, and cleared a the main line of the Canadian Pacific. Becorner in the edge of the forest. Tree-clad yond that it will run through the primeval mountains rose on all sides, and there seemed wilderness. Two hundred miles further and no possible route for the railroad that they it will tap Hudson Bay, that great arm of the had been ordered to build. Twelve miles Atlantic which Canadian statesmen have for away lay the ore, and it was their task to a generation dreamed of reaching with a railreach it immediately by the easiest route. way. “In five years," says Mr. Clergue, That was the order, and the only one, from “we shall be carrying salt-water fish from their chief.

Hudson Bay to the interior of the states." Before cold weather set in, the line crossing It is proposed during the next five years ravines and mountain walls of rock was sur to settle 50,000 Englishmen and other deveyed, steam shovels were brought from the sirable Europeans on the land along the line. Sault, saw-mills were started, buildings were Many are already on the ground, and some erected, and supplies for the long winter were thousands are booked to arrive during the landed at a dock so new that it still gave summer. Mr. Clergue's ideas on colonization forth the fragrance of the forest. The first are characteristic : every effort will be made arrivals in the spring found the road graded by his railroad and the parent company at and ready for the track layers; and, before the Sault to transform these immigrants into the end of July, 1900, one could ride from the a self-supporting and contented population. mine over a track laid with 80-pound steel The Algoma Central will be a colonization rails, in cars of fifty tons capacity, pulled by line of railroad. Thousands of forty-acre 100-ton locomotives. Since then vast quan- farms will be laid out, each with the same tities of ore have been shipped to Canada and railway frontage. The settler, in addition to the United States, and now blast furnaces for forty acres, will be given more land in the making pig-iron, open hearth furnaces for re rear of his first holding. His railroad frontage ducing it to steel, electric furnaces for the will not be increased, nor will he be permitted ferro-nickel, and rolling mills for the manufac- to monopolize the desirable locations. ture of rails are being built at the Sault. The Algoma Central will give every farmer

To ship ore from the Michipicoten mine access to a side track within a mile of his ships were lacking, and the rates then charged farm. It will also act as a market for his on the lakes being too high, four ships were surplus. Mr. Clergue has planned, for inbought in England. These ships were the stance, that if more wheat is raised along the first to pass into the lake through the deep road than can be profitably sold, his power channel lately completed by the Canadian company will erect a plant at the Sault for government; and this channel was also first milling it, giving a steady market free from used by them to carry cargoes from the great costly transportation charges; if there are lakes to the Old World, all of them having more potatoes than will bring a fair price, the

company will make starch, for which there is

traveler up the lakes, instead of halting to always a demand; and, if there are too many watch the white water rush down jagged cattle, or if for any reason the terminal market rocks, will see only the dry bed of a vanished is unfavorably affected, it will erect abbatoirs river where the rapids were, and he will hear and coldstorage warehouses. The settler in the roar only of the water through the canals, marketing his crops will, in short, have the the whirr of wheels and the whiz of saws. assistance of the Consolidated Company, The most noteworthy traits of the man which, with its twenty millions of capital, now who has planned and is directing these enterbinds together the dozen or fifteen enterprises prises are his masterly grasp of large underthat Mr. Clergue has developed. The com takings, and his power to inspire others with pany's interests are so vast, and its millions confidence, and to shape them to his way of of acres are of so little value without the thinking. All who follow his lead swear by success of the settler, that its own future and him, and the day's work with them ends only his are substantially one.

when the task is accomplished. Results are Meantime, Mr. Clergue is mindful of the what he seeks, and those who help him to win quest that first led him to the Sault, and he them are sure of prompt and generous reproposes to utilize every drop of water run ward. Few corporations pension men for life ning from Lake Superior except what is who sell for a song what afterwards proves to needed for the canals and locks of the Ameri be worth millions, but the name of the discan and Canadian governments.

coverer of the Michipicoten mines is on the On the Michigan side a second canal, pay-roll of the Clergue company and will rewhich will have 50,000 horse-power is being main there until death erases it. cut, the largest canal ever cut for the utiliza Nor is Mr. Clergue too busy for sentiment. tion of power. It will run two and a half When he began clearing the débris that had miles, half of its length, through walls of accumulated above the mines of Hudson Bay sandstone, and then through heavy clay 200 Company occupation, near the sleepy village of feet wide and thirty deep at the upper end, Sainte Marie, he came upon the lock built by and it will broaden at the lower end into a the fur traders two centuries ago to get their stream nearly fourteen hundred feet in width. boats around the rapids. The very fact of It will turn eighty great turbines. Part of the the existence of this lock had been forgotten. power thus generated will be used by the He carefully rebuilt it, encircled it with a bit company for manufacturing calcic carbide and

of greensward, and is now completing a large alkali, for refining metals, and for other pur office building overlooking it. Near the old poses, but most of it has already been leased lock he found the rotted remains of a stockade for long terms to outside corporations at surrounding a tumble-down fort. A paraprofitable prices.

peted stone wall now replaces the stockade, These two canals will not consume all the and the fort, repaired and made habitable, is flow from Lake Superior not needed for navi Mr. Clergue's artistic home. gation purposes, and so a third power canal He has chosen a historic spot as the centre has been started. This will be on the Cana- of his labors; for it was on the site of Sainte dian side, some distance from the river, and Marie that in 1670 the Intendant of France, is to be almost as large as the Michigan one. with all the regalia of royalty, received the That the diversion of such a tremendous submission of the tribes of the far northwest, quantity of water may not permanently lower even to the China seas. Here St. Lussan the level of Lake Superior, remedial works and his comrades took possession for the are now being built at the head of the rapids Grand Monarch of a region whose limits they of Sault Marie. It is planned that as the could not guess; here for decades came the flow through the power canals increases, the courcur de bois and the fur trader; and dams of the remedial works shall be similarly here in later years has passed the most splenincreased, so that the increasing flow through did procession of commerce the world has the canals shall be offset by a retarded flow

The new industrial empire which the through the rapids. Thus, a few years hence, Bangor lawyer and his associates are buildwhen all the available water shall pass through ing could scarcely have

ing could scarcely have a more romantic birththe canals, there will be no rapids; and the place.

SHARING PROSPERITY

SOME EXPERIMENTS WHICH SHOW WHY ONE PLAN FAILS AND
ANOTHER SUCCEEDS - CLOSER COOPERATION OF EMPLOYEE
WITH EMPLOYER AND ATTENTION TO DETAILS THE RESULT
- REWARD FOR MERIT IS THE IDEA, NEVER FOR CHARITY

BY

R. E. PHILLIPS

I

N 1886 a large commercial house in New The plan is even wider in its detail. If a

York had an exceptionally prosperous salesman in one department refers a customer

year. Believing that success was due to another, he is given half credit for any partly to the intelligent co-operation of their sales resulting, or if he is busy and is asked employees, the manager decided to give them for by the customer he again gets half credit. a share in the profits, and for three years a All this has brought results: the worker cash bonus of three per cent. on wages was

has a definite end to work for. One of the paid. But the plan failed. For the first salesmen said frankly that the entire force year, indeed, the employees worked with was working harder. Another told of a numgreater interest, but by the second year they ber of his associates who had considerably had taken the additional money as a matter

bettered their condition under the new arof course. In 1889 a question came up over rangement. Still another figured that in putting eight layers of goods under the cut- January he made an extra profit of a dollar a ting machine for a certain pattern instead of week. What may eventually result remains four. It meant doubling the output with to be proved. But the plan will probably practically no extra work. Yet because the succeed, for the underlying idea is right. company insisted there was a strike. The Themen give something for something. share in the yearly profits had not brought There is no charity in it. closer co-operation—and chiefly because the Similar in principle is an experiment which company gave away money instead of paying has been carried on for a much longer time at it for service. And the scheme was abandoned. the Bourne Cotton Mills at Fall River.

But with the beginning of the present year Twenty-three semi-annual dividends averaging the company decided to try an experiment three and a half per cent. on wages have alalong somewhat different lines. Profits now are ready been paid. The plan originated in a distributed only if the various salesmen earn

curious way.

Jonathan Bourne, the first their share, though the bonus to be divided is president of the company, was originally a calculated on the volume of business done in merchant in the whaling trade. It was the all departments and not in separate depart- custom to offer a share of the catch to the ments. The man at the necktie counter, if men. Mr. Bourne thought this idea should he sells more ties in a month than were sold apply to a cotton mill as well as to a whaling at that counter during the same month a year vessel. He proposed it to the company's diago, received a share just as the man does in rectors in 1888, and it was accepted. In the the clothing department, where the actual following May the treasurer of the company profits to the concern are much larger. A outlined the proposed plan to the employees. complete record of what each man sells On July ist, 1889, it was put into operation, is kept, and this determines his salary. If and six months later the first cash dividend by large sales he lowers the percentage was paid. allowed for marketing the goods his salary is In return for added interest in the success increased. If the sales drop off and the per of the Bourne Mills, all employees share—in centage is increased, the salary is reduced. proportion to wages earned—in the concern's The man receives in money, in as far as it is profits. Faithful and continuous service was possible to judge, exactly what he is worth. the only condition.

the only condition. This was the whole plan

in a nutshell. The amount of the dividend to the fact that the pay has always been largely be divided was settled upon as not less than based upon piece-work, have been taken into six, and not more than ten, per cent. of the consideration by the company in determining semi-annual dividend paid to the stockholders. results. But, as the treasurer of the comBy this arrangement the company did not di- pany recently said, good management is vulge its private business or its total profits. largely the result of an effective working force. During the first eight years the directors con From the beginning the company has tried sidered and passed upon the plan twelve times. to enforce upon the employees how clearly They tried to get at the feeling of the em the dividend paying must depend upon them, ployees, and watched carefully for specific particularly during the years when business results. In 1895 a circular was sent to each is dull and competition close. By making workman, enclosing a blank ballot, with the examples of carelessness attention to details request that he return it with an estimate of has been gained. If the belts in a cotton the advantages of their profit-sharing. All factory are allowed to run three minutes an ballots were sealed. There was some curious hour on loose pulleys it means a loss of five answers.

per cent. in the production. But that has all One man said that the plan was unfair to become real to the employees, because they the stockholders.

see that carelessness reduces profit—their's Six in all voted “no” to its continuance. as well as the stockholders'. In the making The others were all in its favor.

of “seconds,” too, there has been a successOne said, “It shows respect from the ful change. master. I have received over one hundred The employees call their profit-sharing a and twenty dollars in dividends. Thanks.” divvy,” and regard it much as a stockholder

Another, who had been a little over four regards his dividend on stock. But they have years in the company's employ, said: “It come to rely in large measure upon the genraises the laborer above the mere wage-earner, erosity of the company to keep it going. and I believe the principle right and a benefit One day, a few years ago, 110 of the male to me.”

employees left work without permission, to One of the women employees wrote: “I attend a field-day celebration in Fall River. think it is a benefit, because there is not so It was a breach of discipline. Nothing was much changing of help, and they become done about it until the day came for paying more interested in their work. It is our duty the semi-annual dividend. On that day each to do our work, but it is encouraging to feel of these men received an envelope marked that we are rewarded for it."

“gratuity," with a note inside to the effect Many of them emphasized the fact that the that although they had forfeited their diviplan "showed respect from the master," and dend, a sum not as large as they would have so encouraged them to do better work.

received, but larger, as a matter of fact, than But results in the development of business any previous dividend, was restored to them had more weight than this expression of as “gratuity.” This good action broke the opinion. Good wages are of the very first back of the coöperative idea. In showing importance. No plan of betterment is pos good will by a gift, compensation for service sible without what the workers call “ honest” was at once lost sight of. It was a return to pay. The average wage paid now by the the old method. It involved the principle Bourne Mills is $7.50 a week. Formerly it of the whole plan. The treasurer of the comwas $6; and this was the average in the other pany has often said in the presence of the cotton mills nearby. It cost one of the mills men that it was a pleasure to pay them their in the neighborhood of $300,000 to come to “divvies ;” and the first pamphlet issued the standard set by the Bourne Company. mentioned the company's generosity in proThe average pay under the profit-sharing has posing it. This seems the one weak point in increased ten per cent., and this notwith the system. For, in its development, it standing that the general standard price of stands for charity. wages was higher formerly than now, and By way of contrast, the Proctor & Gamble that the working hours have been reduced Company may be mentioned. The company's from sixty to fifty-eight hours a week. The

factory is just out of Cincinnati in the little fair rate of wages, good management, and town of Ivorydale. Here there are about

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