The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-11-20

recovery are too high to be assessed
against the tonnage OF so small q
tract. The homestead law expresses
the spirit OF American institutions in
that it has encouraged every citizen
to own a home. but there IL neither
sentiment nor sense In a proposition
to sell at low price $50 acres of coal
land to an individual-every citizen
does not need to own a coal mine.
The Leasing Alternative.
The difficulties involved in the ad
ministration OF the present law sug-
gest the wisdom OF considering the
other method OF disposition, namely.
leasing system AS Secretary Fisher
has stated, IT may we'll be that q
liberal but wisely protected leasing
law would be found TO promote devel-
opment more vigorously than any sys-
tenn OF outright purchase"
The greatest advantage of the leas-
ing system, both to the operator and
to the public. is relief from the capi-
tai outlaw now required in the acdlti-
sition of the large acreage absolutely
necessary for a modern mine. This
argument advanced against the pres
ent policy Of vsIuing the public coal
lands at even conservative prices thus
becomes an argument for a leasehold
law.
The objections made to a leasing sys-
tenn 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 re-
sources of the west should not be made
q source Of profit to relieve the eastern
taxpayer. The large tonnage or coal
now mined under lease meets the OBJ
lection TO direct government leasing.
and as regards the arguments OF re-
serving the western resources for the
west, II should be noted that under the
present system of sale the proceeds
from the coal lands go directly into
western development through the rec
lamation fund. and II is proper to ex-
pect that any leasing law would make
similar disposition OF the proceeds.
Other objections express d 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 q tax upon the
consumer than the royalty paid to the
state OF Colorado or to railroad land
company. The average price of
bituminous coal ct the mine in the
United States last year was $t.12,
which usually includes a royalty to
private owners or an equivalent In
terest charge, either OF which would
probably be greater than any gov
ernnent royalty.
Ii we consider the lease AZ con-
trasted with sale outright to the coal
operator. the reduction hi capital nee-
essary for original investment and the
elimination Of many Of the risks in
such investment muat result In rAduc~
Inc cost Of operation ato the mine own
er and thus make possible d cores
pondinaIy lower price OF coal to the
consumer.
Experience Of New xealand.
The other objection to the Lease ays-
tern IL that based upon fears of exsen-
alye federal management ana al ia
effieisnt administration or even malad~
Inanistra4aon III we look out across
the pacific WE discover that 4 row.
ernmenfal leasing system for coal
lands Ii not . theory but al actual
working fact. The Anglo Saxon peo-
pie OF the Australian states have found
the leasing systems not only prarti-
cable, but indeed preferable I'd the
sals of coa lands. n New Zealand.
whers FOR thirty years. the laws have