Denver labor bulletin., 1917-09-01
MONOPOLY POWER
By SCOTT NEARING.

All returns which come from land,
because of its location or because of
its natural fertility in 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
demand for it is widespread. The own
price that will represent the difference
between competitive conditions and the
consolidated ownership of the anthra-
cite 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 anthracite
coal land may receive, for his bare
ownership, price in proportion to
contains. This is true without any
reference to the conditions under
which the land was obtained.
Thus, for example, man has gone
into the mountains and bought a tract
of cleared land. The timber has been
cut off; the hills are rugged and prec-
| ipitous; the valleys narrow and un-
fertile. Some day the land will be re-
forested Meanwhile it lies fallow, a
/ prey W lne IlTeS
sweep off the underground and pre-
went the development of a good growth
of timber. This land sells for 20
cents an acre.
The owner feels that he has a bar
gain-S1 900 for 5000 acres of land.
He builds hunting lodge, posts "No
tresspassing" signs, and spends a few
days winter and summer hunting and
fishing. To him the land would have
been cheap at twice the price.
A geologist, in making 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 5,000-acre tract. The land
has not changed in its make-lp 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 S10O 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
pay well for it, and the land owner,
because he is the owner, is able to sell
for $500,000 a tract that cost him
81 900. The difference in value rep
resents monopoly power that attaches
to the ownership of a resource, limited
in amount and generally desired by
the community.
The owner of the 5,OOO-acre tract
may decide not to sell his land. In
stead, 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 90
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.
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 a
few acres of such land. These few
acres are wanted by large number
of people. The excess of demand over
thracite coal land to set a price on it
and receive a monopoly return for
their ownership.
The continent is so arrenged geolog-
ically that for every acre of anthra-
cite land there are 100000 acres of
land that do not contain anthracite.
This geologic fact places great mon
opoly power in the hands of every
anthracite owner. Add to this the sue
cessful business ventures that have
eliminated in the concentration of the
anthracite acres under the control of
a very small group of interests, and
the monopoly picture is complete.