The daily Alaska citizen., 1919-12-20
CHEAPER FUEL

local business men and Enginccr-in-C Charge Browne. if ii did not insure cheaper fuel for .o.aI consumption and mining operations, u least clarified the coal situation and brings The matter into such shape that local people and interests can proceed along business lines to get at the heart of the en- tire prob.cm- cheaper fuel. It is vital to rDe entire interior that a cheaper fuel be secured Wood is becoming scarce and its cost i~ steadily increasing each year mak- ing mining operations dcarer and cutting down the production of gold each year,
 The hope has been held out to Us for years that with the coming of coal from the Nonma coal fields our fuel problem would be solved Operators have cIung to their ground awaiting this fuel. The coal k in sight. AIr. Browne declared that the inc commission ~ ready to haul any ship mcut~ that are offered. He admits, how cvrr and local business men confirm his .lm~~iou that at the prospective price to be- charged for the initial production of the HcaIcy river coal is so great that it will be impossible for the miner to effect any say ing over his present fuel bill. The price which will be charged is said to be $6.25 per short ton. To this must be added a transportation charge of $2.50 per ton for Fairbanks or Gilmore and d higher charge for delivery at Chatanika. The cost per ion to the consumer on the cars at the point of destination will be $8.75 per ton. Adding fl bp tO sumner aud comparing the values of wood and coaI in heat units, the cost of the lat tcl per ton to the gold miner or the Fair banks consumer will run between eleven and twelve dollars. This price is too eX- ccS~iye to cause any big demand for coal.
 Ii iS obvious that in order to revive the mining industry a lower price must be- made Nr. Browne declared in the con- ference Thursday that coal must eventually be put on the cars at the mine for $}.5O to @4OO per ton. He said that any coal opcr- ator who did not put his prices to that figure after reaching an actual mining stage was sure to go under as it would sig naIize a failure on the part of the miner. The reduction. he said, must come from the fuel producer as the transportation rate is as low as can be made until permanent bridge is put in across the Panama river. It i~ clear that the commission stands to lose money in hauling coal across the river at charge of fifty cents per ton. Increas- ed tonnage means increased losses under the circumstances to the commission. Even if tho steel sbOuId hp mt down across inc Panama during the winter there is not much prospects for a reduced transporta- tiOn charge. On the other hand increased tonnage for the coal miners means lessened expenses and increased revenue. There is only on immediate source of increased ton mage and that lies in Fairbanks and the creeks adjacent. Outside of the cOmmis- Sion's needs. which are limited Nenana itself offers no field for a coal market How to get around the present excessive price and build up that tonnage by increasing consumption is the problem that Fairbanks is facing While the solution will be of direct benefit, 1t must be remembered that 1t is also for the material benefit of Fair benefit the entire interior by putting coal on the market at a price that will enable every operator within reach of water trans portation to cut down his fuel bill
 At first glance it would seem that the coal producers should be willing to suffer an initial loss and cut his prices down to