The Washington times., 1919-12-27
COAL IS MINED
AT $3.50 TON
Fuel Board Statistics Show Pro,
duction Costs, Including
Labor, in SO Districts.

Costs OF producing coal in eacf
Of the ninety-eight bituminous dis
tricts Of the United States during thu
first year of the existence Of the Fed
eral Fuel Administration-the period
when the expense Of mine operation
reached the highest point because o.
war conditions-is contained in the
report Of the Engineering Committee
of the Fuel Administration, which
was made public here today.
The document gives the average
cost of producing coal in each dis
trict, as well as the minimum cost
Of operation, which would apply to
efficiently operated mines, or opera
tions that are advantageously placed.
and the maximum costs, which In
most cases related to small mines.
Consumers Can Figure Prices
Reasonable prices for the sale o..
coal by retailers can be figured by
each householder and other con-
sumers under the fixed prices the
Government Is maintaining over the
output of the mines The price OF
the coal at the mine (f. o. b. the carr
Run-of-mine coal Is used as the basis
for fixing prices, with Is cents a ton
added for screened or lump coal
The Government price is added to
the freight rate from the mine to the
point of delivery in determining the
cost to the retailer. Handling costs
in the retailers yard varies accord
ing to the facilities for unloading
and delivering to consumers. Statis-
ttcs of the Government show that the
cost varies from 81 to $3.50. but
usually does not exceed $3.50, which
includes the cost of labor. The profits
of the retailer are added to these
costs His office expenses are in
eauded In his -proHts."
ysbSer.' Ceanis.iens.
Reconsignments Of coal shipments
On the railroads. together with COM
missions to jobbers where the coal
is not shipped direct from the mines
to the retailer or consumer, increase
the cost to the householder or small
consumer. The commission allowed
to jobbers By the Government Is Is
cents a ton
The figures on the cost Of operation
were used by DR.. Garneld in fixing the
maximum prices that might be charg-
I'd for coal at the pit mouth by mines
IN q district In order to prevent
excessive profits accruinG to mines
with low costs of operation, bulk
line" was established by the engineers
OF the Fuel Administration for each
al
production cost hgure that the Gov
eminent would recognize in adjusting
prices.
Doubtful Enterprises
Tt was almost invariably found
that at the high cost end of the line
are collected most of the doubtful
mining enterprises" says the report
These include mines that have failed
under normal competitive conditions
Some of them were unjustifiahIe even
under war conditions They use labor
inefriciently. Often their records show
less than half the tonnage per en-
ploye usually obtained at the mines
IN a district A bulk line was located
to exclude these operations, and yet
allow all but their small percentage
of tonnage in a district to be pro-
duced without actual loss"
The "bulk-line" was used as .he
base for establishing margains of
profit under fixed selling prices, but
under IL the percentages of profiS to
the operators varied according to the
costs Of operation Of their respective
mines.
The fixed prices Of the Government
which are now in effect is the sum
at which the coal is sold to contract
holders, and to retailers for disposal
70 householders and other Consumers
The fixed price, with the freight rate
for hauling. represents the cost sum
at which the coal is delivered to re-
tailers at the point OF destination.
The average cost OF handling q ton of
coal in a retailers yard, after un-
loaded from the railroad car. accord
ing to Government statistics, Is from
81 to $50 a ton
Productio. Costs Summary.
The summary of the Engineering
.comnlittee showing the costs OF pro-
duction on the run-of- mine basis In