Thomas Edison, Famous for His Wisdom on Failure in Business, Winds Down His Iron Ore Processing Venture, in Which He Lost Two Million Dollars (His inventions had revolutionized the mining industry, which he had found so promising)

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The iron ore business was made unprofitable by new ore discoveries at Lake Superior, and cheaper rail shipping rates set by Andrew Carnegie and othersWhen people think of Thomas Edison, they think of his great inventions and the huge industries they created. He made phonographs, movies, founded General Electric to provide light, and so much more. But sometimes the mind of Edison fastened on an idea that, though susceptible to important inventions, did not prove commercially viable.About 1885 American industrialists began to worry that the Great Lakes and other sources of high-grade ore were being exhausted. So to take advantage of and address this perceived iron ore shortage, in 1891 Edison launched a mining operation called the New Jersey and Pennsylvania Concentrating Company. He promptly set about securing locations for what he hoped would be likely successful mining operations, He developed a concentrating process, designed rock-crushing technology, and an electromagnetic ore separator to extract low-grade ore from crushed boulders. The final product was a briquette made of powdered, concentrated iron ore. The purpose of the concentration, or magnetic separation, was to reduce the cost of transporting ore to the furnace and to facilitate the smelting. Edison?s specific contributions to the process were the conveyor-belts, the giant roller-grinders, and a large crane to lift the loosened rock into the first huge roller-crusher. The roller-crushers effected a further economy in the use of dynamite and in the labor of blasting. In the early process, dynamite was used to break the rock into smaller particles; later, Edison minimized this expense by developing crushers which could pulverize huge boulders.On the sites were an enormous complex of mines, crushers, separators, and subsidiary buildings. At its highest level of activity, the main plant employed nearly 500 men. Edison was so absorbed in the ore operation that he began to spend much time away from home at the mine. Edison invested about two million dollars of his own money in this project.The product didn't do well commercially, being unable to compete with the high-grade ore being discovered and mined by Lake Superior. Moreover, the Pittsburgh steel barons, Carnegie, Phipps, Frick and Schwab, made sure they were able to ship ore more cheaply than Edison could extract it. In 1899, Edison left the industry altogether and lost his entire investment. but was quoted as saying: ?I can at any time get a job at $75.00 a month as a telegrapher, and that will amply take care of all my personal requirements.?One of the leases for mining operations was from the Dover Savings Institution. As its business situation deteriorated, in 1895 Edison decided to terminate the lease and cut his losses.Typed document signed, October 12, 1895, addressed ?To the Dover Savings Institution, George Pierson, Trustee,? announcing the termination of the lease. ?Please to take notice that it is the intention of the New Jersey & Pennsylvania Concentrating Works to surrender the Mineral Lease made by the Dover Savings Institution to the said Concentrating Works, dated May 24th, 1890, on the land and premises therein described, situate, lying and being in the Township of Randolph in the County of Morris and State of New Jersey. This notice is given by virtue of the provision in said lease for the termination thereof, before the expiration of the term therein mentioned. And you are further notified, that the said New Jersey and Pennsylvania Concentrating Works will not pay any rentals or royalties or be liable to said Dover Savings Institution on any covenant or covenants in said lease contained from and after the period of three months from the date of the service of this notice upon you as one of the trustees of said Dover Savings Institution.? Edison paid Dover the outstanding royalties of $2437.49.Edison turned his attention to movies and phonographs, where he had considerably more luck.

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Thomas Edison, Famous for His Wisdom on Failure in Business, Winds Down His Iron Ore Processing Venture, in Which He Lost Two Million Dollars (His inventions had revolutionized the mining industry, which he had found so promising)