The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1911-11-18
SHALL LTHEGOVERNMENTSELL
OR LEASE ITS COAL DEPOSITS

becomes an argument for leasehold
law.
The objections made to a leasing sys-
TEN are, first, that the eastern coal
lands were disposed of in fee and that
the west deserves the same treatment;
and, further. that the natural resources
of the west should not be made a
source of profit to relieve the eastern
taxpayer The large tonnage of coal
now mined under lease meets the OBJ
lection to direct government leasing,
and as regards the argument of reserv-
ing the western resources for the west,
it should be noted that under the pres
ent system of sale the proceeds from
the coal lands go directly into western
development through the reclamation
fund.- and Il is proper to expect that
any leasing law would make similar
disposition of the proceeds.
Other objections express a fear that
the cost of coal TO the consumer would
be increased; but the royalty paid into
the United States treasury can be no
greater tax upon the consumer than
the royalty paid to the state of Colo
RADIO or to railroad land company
The average price of bituminous coal
at the mine in the United States last
year was Slip, which usually includes
a royalty to private owners or an
equivalent interest charge, either OF
which would probably be greater than
any government royalty.
If we consider the lease as contrast
ed with sale outright to the coal oper
ator. the reduction in capital neces
sary for original investment and the
elimination of many of the risks in
such investment must result in reduc
ing cost of operation to the mine own,
er and thus make possible a cores
ponding lower price of coal to the con
sumer.
Experience of New Zealand.
The other objection to the lease sys
tenn is that based upon fears of expen
lsive federal management and of in
efficient administration or even malad
ministration. If we look out across
the Pacific. we discover that a gov
Iernmental leasing system for coal lands
lis not theory but an actual working
fact. The Anglo-Saxon peoples of the
Australasian states have found the
leasing system not only practicable
but indeed preferable to the sale OF
coal lands. In New Zealand where
| for 30 years the laws have permitted
to the operator a choice of either sale
or lease of public mineral lands, a con
elusive argument for the leasing sys
tenn is given in the latest statistics Of
mineral production, which show that
approximately 80 per cent of the totaI
mineral product of that country was
liihCu uuuOI lcdSeuOlu. IL our trans
Pacific neighbors can administer g
lease law SO satisfactorily and if the
mine operators in New Zealand prefer
operation under leasehold, will a simi
liar system be fraught with either dan
ger or failure in the United States?
All the west needs is, first, oppor
tunity for the coal industry to develoI
as fast as the market justifies expan
sion. and with the least possible risks
and, second, opportunity for the public
to procure its coal at prices based OF
a minimum cost of production, withou
any addition of unearned and undue
tribute to private landlords who de
sire to speculate on the future needs
of the consumer. These ends can bt
best attained by legislation establish
ing federal leasing system for thu
coal lands of the public domain.