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." [Illustration: "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.