Historically, the first mention of iron ore in northern Minnesota dates back to the report of J. G. Norwood, made in 1850, in which he mentioned the occurrence of iron ore at Gunflint Lake, but claimed no commercial importance in his discovery. The Geological and Natural History Survey of Minnesota, Volume 4, page 583, records the following: "H. H. Eames, state geologist of Minnesota in 1865 and 1866, was the first to observe and report iron ore on both the Vermilion and Mesabi ranges, and to consider it of any value. In his report for 1866, he describes the ore outcroppings near the southern shore of Lake Vermilion, and in his report, published the following year, is an account of the ore at Prairie River Falls, on the western end of the Mesabi, and several analyses showing it to be of good quality."
"White Pine—What of Our Future Supply?" (Page [174].)
As early as 1880, Professor A. H. Chester, in the interest of private parties, made a personal examination of the Vermilion Iron Range, and predicted that an iron ore district of immense value and importance would be found to exist on that range. George C. Stone of Duluth, one of the parties who had employed Chester to make the examination for iron ore, was elected a member of the Minnesota legislature, and, through his instrumentality, in 1881, a law was passed, "to encourage mining in this state, by providing a uniform rate for the taxing of mining properties and products." This law provided for a payment of a tax of fifty cents for each ton of copper, and one cent for each ton of iron ore, mined and shipped or disposed of; each ton to be estimated as containing two thousand two hundred and forty pounds. The Duluth and Iron Range Railroad was constructed from Two Harbors, on Lake Superior, to Tower, Minnesota; and in August, 1884, the first shipment of iron ore was made from the Minnesota Mine at Tower.
Promising outcrops of iron ore bearing rocks were found east of Tower, where now is the flourishing town of Ely. Work was begun on these outcrops, resulting in the finding of the Chandler Mine, by Captain John Pengilly, from which, in 1888, the first shipment of iron ore was made, the railroad having been extended from Tower to Ely, for the purpose, primarily, of shipping the iron ore to Two Harbors, and thence to the eastern markets. Other mines were later found in this vicinity. The building and equipping of this railroad created a demand for manufactured lumber, for railroad ties, and for telegraph poles. Sawmills were built at different points along the line of the railroad and at its terminals, so that the years immediately following were busy ones for those dealing in standing timber and its manufactured products.
My associates and I had acquired interests in these localities, so that much of my time for nearly a decade, was actively employed along the line of the Vermilion Range. During these years from 1882 to 1888, the most practical modes of travel, and almost the only ones, were either by birch canoe and portaging from lake to lake in summer, or by dog train during the winter. Sometimes these trips were pleasant ones, but quite as often they were attended by incidents not always agreeable.
On one of these occasions late in October, accompanied by one white man known only as "Buffalo," I started to travel east from Tower, on Lake Vermilion, along the route followed by the Indians, to the foot of Fall Lake, a distance of forty-five miles. It was some time after noon when we pulled out from shore in our two-man canoe, a small craft, affording just room for two men to sit, and to carry their pack sacks and scant supplies. Soon it began to rain, and the wind commenced blowing. We were approaching an island, when Buffalo, who had had much experience on the Great Lakes as a sailor, insisted that we could not reach our landing at the easterly end of the lake, before dark, without the use of a sail. Arriving at an island, we pulled our canoe ashore, and Buffalo quickly improvised a sail, which was hoisted in the bow of the canoe and the boat was again launched. In this manner we sailed and paddled at a much accelerated speed, but all of the time we were in imminent danger of being capsized, it being my first experience of riding in a birch canoe carrying a sail. Fortune favored the undertaking, however, and we made a safe landing in time to pitch our tent and make our camp for the night.
During the night the cold increased, and when we arose in the morning, we found that ice had formed on the water in the little bay of the lake. We made a number of portages that day, the cold increasing so that in all of the little bays, ice was forming. We succeeded in crossing Burnt Side Lake and entering the river leading to Long Lake as it was getting dark. We were then six miles from what we knew to be a comfortable ranch near the lower end of Long Lake, which Buffalo strongly urged we should try to reach that night, although to do so meant that we must pass between some islands where, in places, we knew the rocks projected out of the water, and therefore were perilous to our birch canoe. We decided to make the effort, and soon after pushing out from shore, we were only able to faintly discern the outlines of the islands that we must pass. Fortunately, these were soon alongside of us, and we had passed the last dangerous reef of rocks. Then, to our great satisfaction, we saw the light from the lantern which had been hung out on a pile driven close by the outer end of the dock at the foot of the lake, about four miles distant, where the ranch, that we hoped to reach that night, was located. The wind had died down so that the surface of the lake was comparatively smooth, but we noticed that our mittens, which had become thoroughly wet, were freezing on our hands. For one hour we paddled in silence, when the light toward which we had been steering, became much more visible, and soon we landed at the little dock, thankful that we had made our journey safely. Our appetites were keen for the good, broiled steak and hot potatoes that previous experience had taught us we were pretty sure to receive, and in this we were not disappointed.