The labor journal. [volume] (Everett, Wash.) 1909-1976, 1917-11-02
MONOPOLY POWER
(By Scott Nearing)

of it's natural fertility in soil, min
erals or other resources, are mon
opoly returns. Much of the return
on anthracite coal falls in this class.
The supply of anthracite coal in
the United States is very limited.
The demand for it is widespread. The
owner of anthracite coal land can set
a price that will represent the diff
ference betewen competitive condi-
tions and the consolidated ownership
of the anthracite coal field.
So absolute is the monopoly power
that is inherent in the ownership of
a natural resource, limited in supply,
that the owner of a piece of an
thracite coal land may receive, for
his bare ownership, a price in pro-
portion to the amount of coal that
his land contains. This is true
without any reference to the condi
tions under which the land was OBJ
tained.
Thus, for example, man has gone
into the mountains and bought
tract of cleared land. The timber
has been cut off; the hills are rugged
and precipitous; the valleys narrow
and unfertile. Some day the land
will be reforested. Meanwhile
it lies fallow, a prey to the periodic
forest fires that sweep off the un-
dergrowth and prevent the develop
ment of a good growth of timber
This land sells for 20 cents an
acre.
The owner feels that he has
bargain - $1,000 for 5000 acres of
land He builds hunting lodge,
posts "No Trespassing" signs, and
spends few days winter and sum-
mer hunting and fishing. To him the
land would have been cheap at twice
the price.
A geologist, in making a survey
of the region, discovers anthracite on
the tract. There are two veins
one thick and fine; the other thin
and poor. They are both workable,
however.
The nearest railroad is four miles
from the 5000 acre tract. The land
has not changed in its makeup for
million years, and yet, no sooner
is the discovery Of this coal made
known than the owner of the hunting
lodge is asking 500 an acre for
land that was cheap at 20 cents
yesterday.
What is the explanation? Under
this land there lies vein of coal.
People want it. They are willing
to pay we'll for it, and the land own
err, because he is the owner, is able
to sell for $500,000 a tract that cost
him $1,000. The difference in value
represents the monopoly power that
attaches to the ownership of re-
source, limited in amount and gen.
orally desired by the community.
The owner of the 5,000-acre tract |
may decide not to sell his land. In
stead, he may make 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 proportion 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.
The owner, for no reason other
than 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 piece of land
will be able to put price on his
piece.
Anthracite coal land falls in this
monopoly class. There are only
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
coal land to set a price
on it and receives a monopoly re-
turn for their ownership.
The continent is so arranged geo.
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 ev-
cry anthracite owner. Add to this
the successful business ventures that
have eliminated in the concentration
II. II "a .1..,, tgNI