The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-11-12
LEASING COAL LAND
BY THE Government
George Otis Smith Gives the
Federal Side of the
Argument.

The following views OF George OtiS
Smith, director OF the United States
geological survey, on the leasing of west
ern coal lands by the government, VIII
be Of interest among the western con-
servationists and those opposed 10 the
proposed system Of federal landlordism.
In the endeavor TO discourage long
time speculative investment in the coal
lands and AT the same time permit pres
ent development. the fixing OF selling
prices has involved difficulties. II has
been recognized that an Ideal adjustment
of values Is we'll nigh unattainable for
many II not for most coal lands These
difficulties suggest the wisdom OF con-
ton. namely, as leasing system. AS
Secretary Fisher has stated; at may
Well be that a liberal but wisely pro-
Lected leasing law would be found 10
than any system OF outright purchase
Thus, under A leasehold law, any uncer-
talnties as 10 quantity OF coal or as to
costs OF operation would not need TO be
so critically estimated in advance, There
would be no necessity OF discounting
every possible future condition, but
could insure all equities of both opera
tor and public, and I should expect that
such adjustments might AS often be
downward as upward.
Under a leasing system, too, II would
be comparatively easy so TO adjust the
relationship between ground rental ano
royalty as to prevent the acquisition of
coal deposits until actual operation be-
tage OF the lease system TO the opera
tor directly, and 10 the public indirectly,
Is relief from the large capital outlay
now required in the acquisition OF the
large acreage absolutely necessary for
a modern mine This argument advanced
against the present policy OF valuinS the
public coal lands at even conservative
prices thus becomes an argument for a
lcaschod law.
The objections 10 n leasing system arc
of two classes Those based upon politi-
cal theory and those based upon eco
uomic considerations, Under political
objections | Will place the arguments so
often put forward against federal land
lordism namely. that the eastern coal
lands were disposed Of In fee and that
the west deserves the same treatment: ::
aud. further. that the natural resources
OF the west should not be made a source
OF profit TO relieve the eastern taxpayer
Past mistakes are poor prccedents for
future bundcrs.
The citizen who argues for the con-
tnuance Of the libc raj wide-opeD public
land policy Of the past is apt TO be ono
who wishes n middlemans profit on a
small investment and we know that
acquired as agricultural ands, or in any
other way, at low price makes his
large and unearned profit out of the coal
operator. and through him out Of the
coal output OF this country is now mined
under lease 10 Justify this objection to
allowing the people themselves 10 lease
direct. As regards The argument OF ro-
serving western resources for the west.
toe few people in the public land states
realize that under the present system OF
sale the proceeds from the coal lands
go directly into western development
through the reclamation fund and can
not be used to relieve the eastern tax
PAYERS except ms the whole country
benefits by the agricultural development
Of these public land states II Is rea-
soma bic to expect that any leasing law
would make similar provision for the To-
cal use Of revenues resulting from leases.
and indeed several OF the bills already
introduced In congress have specifically
recognized the wisdom OF such dispos-
ton
An that the west needs lis: First. op-
portunity for the coal industry TO de-
velop fast as the market justifies
expansion. and with the least possible
risks; and, second, opportunity for the
public TO secure Its coal at prices based
on a minimum cost of production and
without any addition OF unearned and
undue tribute TO private landlords who
desire to speculate on the future needs
of the consumer. These ends, I be-
lievc, can, be best attained by legisla-
tion inaugurstinG a federal leasing sys-
TEN for coal lands OF the public domain,