Story: Channing Sees Disaster In Proposed Ore Tie Up - 1935

From the Escanaba Daily Press - March 21, 1935

michiganrailroads.com editor's note: In 1935, the United States was in the depths of an economic depression. Ore demand and prices were declining, transportation costs (including the dock operations) were increasing, and the quality of ore was declining. On most of the Menominee Range, the C&NW and MILW competed aggressively from about 1890 into the 1930's. By 1935, both railroads were struggling and so were the mines. The C&NW and MILW entered into a pooling agreement to reduce the cost of transporting ore. Experts point out that the pooling agreement extended the life of the mines in the region for several years. This article represents the MILW's labor perspective on the agreement. At the end of the article, we will summarize the take away points of this pooling agreement.

With Terminal Eliminated, Railroad Men Would Be Forced to Move To Escanaba

Negotiations for a consolidation of ore traffic over the Chicago & Northwestern railway and the Milwaukee Road, which would eliminate Channing as a railroad center and force railway employees there to move to Escanaba, has aroused a storm of protests in Channing. Congressmen have been asked to intervene at Washington and prevent the carrying out the plan which Channing residents claim will make their community a deserted village. The proposal plan causes the operation of lines on the Menominee range near Amasa by the superintendent of the Milwaukee Road, and all other operations on the range and at Escanaba by the superintendent of the North Western. Both roads would consolidate (mining) business now handled individually.

Railroad men living at Channing are confident that if the change goes through it means the end of their community, although not necessarily the end of their jobs. They also assert that it will eventually end greatly curtailed service on the St. Paul, final abandonment of the Iron River-Crystal Falls and Ontonagon lines and perhaps at a not too far distant date suspension of service (by the MILW) to the copper country.

Under the contract with the North Western, the St. Paul would continue to share in the ore business and would do the hauling with its own equipment over the North Western tracks. The split up in the past between the St. Paul and North Western has been on a basis of 34-66 per cent, with the North Western getting the larger amount. This split up, the railmen say, would be continued on the same percentage basis, but with the exception that St. Paul crews would no longer be used at the mines in spotting and switching nor at the Escanaba docks. The St. Paul would get only what is known as "pool" service, that is, straight haulage on the road, and it would get no ore hauled as a part of a mixed train. About half the regular number of men would be required.

Blow for E. & L. S.

Elimination of Channing as an ore terminal, the railmen continue, would affect not only the train crews, but the shop crews, dispatchers and others as well. It would likewise spell disaster for the Escanaba & Lake Superior railroad, over which the St. Paul hauls ore from Channing to its dock at Escanaba. The E&LS, it is pointed out, is dependent upon its contract with the St. Paul to remain in business. Forced abandonment of the line would also be felt by the various settlements through which it passes.

At the outset this order would affect 50 men who comprise the train crews, and later, they state, would be extended to the shop and other workers as Channing ceased to become a terminal.

The railmen affected would, they stated, have to move to Escanaba if they continued to hold their jobs.

Resolution Adopted

The Channing railmen are members of what is known as the Green Bay lodge and at a meeting in that city Sunday, they adopted a resolution calling upon their organizations to do their utmost to block the change.

The resolution asserts that the consolidation "will entail undue loss financially to many of our members by being compelled to abandon their homes." It adds that "whereas our solemn contract with the Milwaukee road gave us the privilege of work in this territory the fulfillment of contemplated action abrogates our contracts and destroys our seniority."

Pointing out that governmental grants of funds have been available for improvement of railroad properties the resolution contends that "in this case aid has been refused," although the railmen "are informed contemplated consolidation is due solely to the dilapidated condition of the C.M.St.P. and P. ore docks at Escanaba."

The resolution warns "that this initial consolidation is forerunner of greater efforts in that direction, to our further detriment" and it is resolved "that we desire the full favor of the organization to be used if necessary to forestall this proposed arrangement and any action held in abeyance."

Haul Is Longer

The railmen concede that the St. Paul ore haul from Iron River is longer, being 97 miles as compared to the North Western's 88 via the Schlesinger short line from Iron Mountain to Escanaba. But they add this is more than offset economically by the fact that because of roadbed grade the St. Paul is able to haul trains of 10,000 tons while the North Western is limited to 8,500.

Of interest to Dickinson county is a loss in tax revenue if the forebodings of the railmen prove true.

"The settlement of Channing today has an assessed valuation of $500,000," a Channing businessman said. "Our rail terminal is the only supporting industry and if it is lost our valuation is practically wiped out. Channing will be practically abandoned."

From the Escanaba Daily Press - March 21, 1935

Take away points of the C&NW/MILW pooling agreement:

• The agreement affected switching of the ore mines, transport of ore, and operation of dock(s). Passenger and other freight service were not pooled leaving the railroads to compete in these areas.
• C&NW begin sole switching duties for Iron River, Crystal Falls and Alpha area mines. MILW began sole switching of Amasa mines.
• Transport of ore from terminals to docks were pooled using locomotives and train crews in proportion to the pooling agreement. Only C&NW ore cars were used due to C&NW dock restrictions.
• The MILW ore dock near Escanaba was closed and the E&LS no longer used or ore transport.
• The C&NW Amasa branch from Crystal Falls was abandoned, Amasa now being served by the MILW Ontonagon branch.
• Trains on the E&LS line from Channing to Wells reduced dramatically and is today all but abandoned, used for car storage.
• A similar pooling agreement was established by the C&NW and the Soo Line for ore operations in the Ironwood area. Some of this ore was also transported to Escanaba.