Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-03-04
A STATE ROYALTY
FROM COAL LANES
President Roosevelt Favors Prop
osition of Government Leas-
ing Same.
HOW 1T WORKS IN COLORADO.
The Chief Question to be Considered Is
The Rate OF Royalty That
Must Be Paid.

President Roosevelt. following UP
his recent recommendation concern
ing the public coal lands. has sent to
Congress a special message further
outlining his policy and urging the en-
actment of laws to carry II out. He
advocates. says the Engineering and
Mining journal the leasing of these
coal lands. and reservation by the
government of the right to supervise
their development
In support Of his argument the
president refers to the successful oper-
alton of this policy In certain foreign
countries. This reference was entirely
unnecessary, inaSmuch as in our own
country examples OF such a system
may be readily observed. In Colorado.
where thousands of acres of public
coal lands have been taken up by cor
porations which are at present operat-
ing and developing mines, the state re-
taIns possession Of certain section
t640 acres) OF land In every town
ship. In coal districts this square mile
OF land, generally known as a school
section" Is leased TO and developed
by the operators VINO control the adj
joining area. The state retains en-
gineers who examine the mining oper-
atoms carried on under school lands,
and check UP by measurement the adj
Nances % all entries and rooms. thus
forming the basis for estimates OF the
monthly tonnage extracted
The estimates prepared by the state
engineers are compared with those
made by the engin GERS of the COM
pany, and from this comparison n
basis for the monthly settlement Is de-
termined. The royalties accruinE to
the state from leases on such coal
lands amount 90 a considerable figure
The president. in his message did not
specify the rate at which these coal
lands ought to be leased. but sug-
gested that the same liberalty bc ex-
tended as has already been shown by
the government In its dealings with
the public. In the meanwhile. the
house committee on public lands has
reported favoraply upon a bill con-
forming somewhat TO the presidents
recommendations, which authorizes
the president TO lease coal lands at a
royalty of not more than cents a
ton.
The idea of liberality on the part OF
the government will certainly be car
ried out If cents per ton Is to be the
maximum royalty. Thousands o. ocres
of coal lands throughout the United
States are being worked today on the
royalty basis, and in no instance is
the minimum royalty SO low as that,
so far as we are aware. In most parts
of West Virginia the royalties range
from 6.5 to 12.5 cents per ton: in
Pennsylvania, Kentucky Illinois and
Colorado, the average royalty is about
cents per ton. In metalliferous min
ing royalties are rarely less than 10
TO Is per cent, even In the case of tho
lowest grade OF ore, such as the zinc
ore ~ the Joplin district. which Is
worth only about Sl.50 per ton. The
average value Of coal In the western
states is about Sl.2b per ton at the
mines. This II VIII = observed that
even the existing custom is decidedly
more favorable to the lessee in coal
mining than in metalliferous mining.
and as everyone is aware. the collier
les exploited under current royalties
are In most instances profitable TO the
operators, If the public coal lands
are to be leased, why should the MAXI
mum royalty be so low as 9 cents per
ton?
However, even that low rate will
produce an income that will show in
strong contrast with the present poll
icy of giving away these resources. lie
we consider that the average
thickness OF the workable coal
seams underlying the government land
Is i've feet, and that only 1000 tons
of coal will be produced from each
acre, the government will receive $50
In royalties for each acre of coal that
is worked under lease. less the cost
o. ADMINISTRATOR Up 10 date about
30,O0O,000 acres of public coal land
have passed under private control.
There is no doubt that a large part
OF these holdings were acquired by the
present owners at a price not exceed
Ing Sc per acre, and In many cases for
less than 81 per acre. 1t is conserya-
lively estimated that the government
still controls 10000, 900 acres.
As to Jhe amount OF land to which
one lease is limited C2.56O acres) in the
bill before Congress. this area is sut-
ficiently large TO justify the installa,
tlon Of substantial plant, and since
such All area would produce from
100000 10 100000 tons OF coal.
the life of the operation would extend
over period OF from eight to II.
years. The chief question 10 be cons
sidered Is the ratio of royalty. has
much AS the value of the remaining
coal lands Is largely dependent upon
their proximity to existing or project
ed railways, or upon their situation in
distritrs likely 10 be developed by
railways in The nesr future. II would
appear that the rate of royalty ought
to take this into consideration.