The labor world. [volume] (Duluth, Minn.) 1896-current, 1917-08-25
MONOPOLY POWER.
BY. scott Nearing.

By Scott Nearing.
All returns which come from land,
because of it's location or because OF
its natural fertility of soil, minerals or
other resources, are monopoly re-
turns. Much of the return on anthra-
cite coal falls in this class.
The supply of Anthracite coal in the
United States is very limited. The de-
mand for it is widespread. The
owner of anthracite coal land can set
price that will represent the differ
ence between competitive conditions
and the consolidated ownership of the
anthracite coal field.
So absolute is the monopoly power
that is inherent in the ownership of
natural reource, limited in supply,
that the owner of a piece of anthra-
cite coal land may receive, for his
bare ownership, a price in proportion
to the amount of coal that his land
contains. This is true without any
reference to the conditions under
which the land was obtained.
AAS0S AoA NAoA4ApAOs 4l1A IDS 6Ouc
into the mountains and bought q tract
of cleared land. The timber has been
cut off; the hills are rugged and pre-
cipitous; the valleys narrow and I'M
fertile. Some day the land will be re-
forested. Meanwhile it lies fallow, q
prey to the periodic forest fires that
sweep off the underground and pre-
vent the development of good
growth of timber. This land sells for
20 cents an acre.
The owner feels that he has a. bar
gain-$1, 900 for 5000 acres of land.
ell builds hunting lodge, posts mo
Trespassins" signs, and spend few
days winter and summer hunting and
fishing, To him the land would have
been cheap at twice the price.
the region, discovers anthracite on
the tract. There are two veins-one
thick and fine; the other thin and
poor. They are both workable, how
ever.
The nearest railroad is four miles
from the 5,0O0-acre tract. ! The land
has not changed in its makeup for a
million years, and yet, no sooner is
the discovery Of this coal made known
than the owner of the hunting lodge
is asking 800 an acre for land that
was cheap at 20 cents yesterday.
What is the explanation? Under
this land there lies a vein of coal.
People want it, They are willing to
because he is the owner, is able to
for
$1,000. The difference in value rep
resents the monopoly power that at
taches to the ownership of resource,
limited in amount and generally de-
sired by the community.
The owner of the 5,000-tract may
decide not to sell his land. Instead,
he may make a stipulation that for
each ton of coal dug from the mine
he is to receive 10 cents. From that
time on, and as long as the property
is producing coal, this owner of 20
cent hunting lands will be receiving
an income greater or less in proper
ton to the amount of coal mined, so
long as the property is productive.
This royalty privilege is another phase
of the monopoly power of ownership.
1110 O"iOI 1OA 1SdSO11 Ot1lCI I1ldIl
his ownership, is able to share in the
products of the land to which he holds
title. Wherever there are two pieces
Of land wanted by three men. the
owner Of each pice of land will be. able
to put price of his piece.
Anthracite coal land falls in this
monopoly class. There are only a.
few acres of such land. These few
acres are wanted by a large number
of people. The excess of demand over
supply enables the owners of the an
thracite coal land to set price on it
and receive monopoly return for
their ownership.
The continent is so arranged geo.
logically that for every acre of an
thracite land there are 100000 acres
of land that do not contain anthra-
cite. This geologic fact places great
monopoly power in the hands of every
anthracite owner. Add to this the
successful business ventures that have
eliminated in the conception Of the
anthracite acres under the control of
a very small group of interests, and
the monopoly picture is complete.