The Montgomery advertiser., 1903-06-16
UNIVERSITY LANDS
ExAMINER RUTLEDaE SUBMITS
 A REPORT.
Calls Attention of Governor to Value of Coal Leases and Predicts Great Increase in Revenues of
 Institution,

$2o0.000 and s25oo0O. This prediction Is made by T. J. Rutlsdge, Assistant Exam- iner of Public Accounts, in special re- port, after an investigation of the coal land leases made by the University trus- tees.
 The enormous increase will come from lease of. certain coal lands made to the Galloway Coal Company. The lease calls for royalty of cents a ton on all coal mined. the largest figure ever obtained from coal land lease made by the Uhi veTsity Trustees. The land consists of g ''f:rties," or 1.16O acres and the lease runs for twenty years.
 The company has already spent from $4O.0o0 to S4o,000 in the erection of plants and buildings in preparation for the ex- tensfve mining of coal The plant will have capacity of 1,500 or 1900 tons of coal a day
 The new lease will greatly increase the income of the University It will, in fact, give the University financial as surance. hardly hoped for by its best friends.
 The enormous income of over 500, 900 will be in addition to It's revenues from other leases previously made.
 In his report Mir. Rutledge draws at tention co the fact that there Is not, nor has there been. any businesslke or sys-' tematic checking up of the coal mined by the companies leasing the coal lands. He points out that the University may suffer loss for this deficiency and re- comments remedy
 MT. Rutledges report was submitted to the Governor May S. It was in turn laid before the Trustees at their recent meet ing in Tuscaloosa.
 In full it is as follows:
 His Excellency. William D. Jelks, Mont gomerv, Ala:
 Dear Sir-Assgned by Your Excellency | to examine the status and condition of the leased lands of the University of Ala bama, and to check up and verify as far as practicable the output of coal, under these leases, I have discharged that duty to the best of my ability and beg leave to submit the following report;
 The Cahaba Southern Mining Com
 pany Lease.
 "The first lease of tue University coal lands was made In 1895 to the above com pany for period of ten years and em- braced 600 acres of land, located at liar grove, Bibb County, on royalty of ' cents per ton. and since the beginning of operations, in October, 1895, to and in- cluding the month of March, 1903 this company has paid to the Treasurer of the University sS2, a royalty on 463, ,617 tons of coal mined at this point. This shows a revenue of $54.09 per acre from this coo acres of lands for the period above stated. It may take two years to work out the balance of the coal on this tract and MT. P. B. Thomas, Superintendent, who is capable and ex- perienced mine operator. informed me that the University might reasonably ex- pect to receive from $1o,000 to $20,0O0' ad- ditional royalties under this lease This company Is also taking out coal from the same slope on land leased or purchased for the Tennessee Coal and Iron Com pany. adjoining the University tract 'I have checked over the books of this company showing their output in tonnage and con. pared 1t with statement of monthly remittances to the Treasurer of the University and with statements of | their output made to the State Mine In- | spector and can find no error in their | accounts.
 Cahaba Southern Mining Company; Second Lease. l This company has also leased from | the University 520 acres of land adjoining | the first lease for a period of ten years | and right of renewal for ten years. No coal has yet been taken out on this tract. The company has been making extensive preparations to mine coal and is open ing new slope and installing an eX- peusive plant on this land. When put in operation they will have a large out turn from this new mine. The company has paid to the Treasurer of the University the minimum royalty from the execu- ton of this lease thu osgh March,. 1903, amounting to $1.317.45. The Braehead Coal Company Lease. q have never seen this lease. it being in the possession of one of the Univer- sity Trustees at the time I was in Tus- caloosa. The property covered by 1t is located at Braehead on the Mobile and Ohio Railway in Bibb County.
 MT. J. w. Brand, superintendent of this mine, informed me that 1t embraced 600 acres of lands and the royalty paid was 5 cents per ton.
 From June, 1900 to March. 1903. this company has paid in royalties a total of $3,5eS.24. The last payment for March. 1909. was $1S9. %.
 The production of this mine is in cleasing and future payments will be larger than for recent months.
 ''l have checked the Treasurers state ment and the pay roll sheets of this company and compared them to the re- turns made to the State Mine Inspector as far as practicable and think that they have made fair and correct returns. The Galloway Coal Company Lease.
 This is the most important of all the leases yet made of the University coal
 
 Of 1160 acres and runs for twenty years from January 1, 1902. on a royalty of 8 cents per ton, the best figure yet ob- tained In any lease The minimum royal ty agreed upon has been paid up to the last quarter, $4,0o0 having been realized from this source, but the company has not yet taken out any coal from these lands.
 "I wen: out tn their slope. which is about one mile from Brachead on the Mobile and Ohio Railway. 1 his company has built branch road, erected num- l erous houses and is putting up a costly and expensive plant of machinery. The slope Is well under way and they expect to he in full operation on a large scale hy September or October.
 ''rhe superintendent of this mine. Mir w. H. Penhale. informed me that they had already spent $40.O00 to $45,OOO on tijs plant and when In full operation they will have a capacity of 1.500 or 1900 tons of coal per day.
 Up to the present time there has been no check or examination of the business conducted under these coal leases. This state of affairs ought not to continue as the plain principle of business and the magnitude of the interests involved, both clearly indicate. These should be checked uD every three or six months and to guard the University interest from the hazard of loss the work should be un- der the direction of some person of prac- tical mining experience. This is import ant from the fact that some of the com panies mining coa! on University lands are also mining coal on their own lands