The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-09-26
Cost of Opening Mine.

Cost of Opening Mine.
The witness then explained at length
what expense is entailed in opening a
coal deposit He said it is first ahso-
lutely necessary that the deposit be
reached by a railroad In drawing
his Illustrations Mr.. Hopkins used a
full section of land or the maximum
acreage (640 acres) allowed a corpora
ton by the government. His teS-
timOny showed that without the com
plete friendship of a railroad an opera
tor cannot open tie richest kiTd of a
deposit with any profit. This peculiar
condition affords the railroads the up
per hand i'm controlling coal fields, their
production and it's distribution.
A mine worked during the entire year
is more profitable than one worked
spasmodically and for this reason
smelter consumption is sought after by
all coal companies.
Commissioner Prouty asked, In
some districts in Pennsylvania they
pile anthracite near the mines where
it will be handy during seasons of eX-
ira demand. Why can't they do that
tsre?'
Com panles Can Store Coal.
Mr.. Hopkins answered. Large cor
porations do that with the soft coal
ere. but dealers and individuals, con-
sumers can't do il The large corpor-
alton does not suffer any loss through
disintegration because slack can be
used for steam generating. The dealers
and consumers would suffer this loss
On the other hand"
Mr.. Hopkins said the track TO the
Cumberland mines WAS laid when tie
reached the camp. The Oregon Short
Line railroad operated the spur The
witness had understood the Union Pa
cific Coal company paid no charges
upon tracks laid for it by the Union
Pacific or Oregon Short Line railroads.
He said he had issued transportation
under a one-cent per mile rate 10 bring
miners into the field for this company,
but other coal companies paid tariff i'm
importing men. Mr.. Hopkins said
the one-half cent per ton per mile
rate enjoyed by the Union Pa
cifc coal department was much
lower than the published rate. The
commission next asked for detailed
explana ton of the weight basis used
by the companies in paying their
miners The witness said this basis
varied with the different companies
At some mines the basis was 1000
pounds. at others 2.24O. and still others,
as at Rock Springs, about 5000.
In explaining the percentage of slack
made in mining, Mr.. Hopkins said the
estimate furnished the commission by
d. o. Clark in Omaha was high. This
was 40 per cent. While some mines
production carries so per cent. the av-
erage percentage of slack at the rail-
roads mines in Utah and Wyoming is
not above 40 per cent.
Prices Here Too High.
Coming to the prices maintained for
coal in Salt Lake, Mr.. Hopkins said
they are entirely too high. He said
three and a half mills is about the
actual cost of freighting the coal into
the local market. The railroads are
getting liz cents at the present time. Il
should like TO own railroad" said the
witness, answering a question asked
relative TO the rates maintained by
the railroad companies. Mr.. Hopkins
said he knew nothing of any or mill
per ton per mile ever being offered to
any concern by the Rio Grande, and
knew nothing also of any agreement
said to have been made by the Rio
Grande to turn coal over TO the Central
Pacific at rate of $1.60 or $40 This
agreement and rate were supposed TO
! have been made to place Rio Grande
coal i'm competition with Amy coal.
/ The Almy supply aimed at was being
/ produced by the Rocky Mountain Coal
& Iron company, which was owned by
| the Pacific Improvement company,
I which, in turn, was sub-compdny of
! the Southern Pacific.
| Returning to prices maintained in
! Salt Bake, Mr.. Hopkins said the $3.50
margin OF local coal dealers is not ex-
| cessive when the cost of maintaining
/ yards, branches and delivering the coal
/ is considered. With the loss through
disintegration the profit made by the
/ dealers is in the neighborhood of sc
/ cents per ton.
When asked who controls the coal
market in Salt Lake, Mr.. Hopkins said
| he thought the Union Pacific. why
/ the Union Pacific more than the Utah
Futl?" asked Commissioner Prouty.
Mr.. Hopkins then explained that
while but % per cent of the coal used
| in Utah is obtained from Union Pa
cific mines, that company regulates the
prices of coal through it's priority in
the field. The Rio Grande has ad-
] Vantages i'm shorter hauls and
mine conditions, but from force OF
| habit. presumably falls into line with
| the Union Pacific. 1.-THE Utah Fue
will not cut prices. anyhow" explained
Mr.. Hopkins. THAT would not be
business" Outside of saying that both
railroad and coal companies are tC
! IoI tie ldI SllOIldSSS OF coal III
Salt Lake, Mr.. Hopkins, could see nc
reason why these famines should occur
with such persistent regularity The
witness could not answer a question
pertaining TO the Rio Grande mines en-
joying special rates from the railroad
company, but thought it not at ali i'm
probable.
p. j. QueaIy's Testimony.
/ p j. Quealy, vice-president and gen
eral manager OF the Kemmerer Coal com
pany, wa: the next witness. The com
pany was organized under the laws o.
] Wyoming in 1897. M. s. Kemmerer anC
! himself are the principal stockholders
explained Mr.. Qusaly. The witness begar
az a coal operator with the Rock Spring.
| Coal company in 1875 This company be
gan by Leasing small parcels of land A
lease was obtained from Archibald BIai
! among others. The mine was abandoned
before the lease expired. The Union Pa
/ eific Coal company went into Rocl
Springs as coal department Of the rail
road. explained Mr. Quealy. Mr.. Queai,
after quitting the field went into tn
| business again with the Kemmerers an,
! leased land now owned by that company
Before going into this the commission
asked Mr.. Quealy if he had not operate,
i'm the meantime. He answered in tn
affirmative. saying with Fred w. era.
he became interested in the Sweetwate
/ dfsfrict H., sold his fDtprpEt in f1i