The weekly Alaska citizen., 1919-12-22
VGGAG Eaiv FUEL

local business men and Engineer-i in- Charge Browne, if it did not insure cheaper fuel for local consumption and mining operations, at 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 problem-cheaper fuel. It is vital to the entire interior that cheaper fuel be secured. Wood is becoming scarce and its cost is steadily increasing each year mak- ing mining operations dearer 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 Nenana coal fields our fuel problem would be solved. Operators have clung to their ground awaiting this fuel The coal is in sight. MT. Browne declared that the the commission is ready to haul any ship ments that are offered. He admits, how ever, and local business men confirm his admission, that at the prospective price to be charged for the initial production of the Healey river coal is so great that it will be impossible for the miner to effect any sav- 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 $2.5O per ton for Fairbanks or Gilmore and higher charge for delivery at Chatanika. The cost per ton to the consumer on the cars at the point of destination will be $8.75 per ton. Adding the cost of transfer from the cars to con- sumer and comparing the values of wood and coal in heat units, the cost of the lat ter per ton to the gold miner or the Fair banks consumer will run between eleven and twelve dollars This price is too ex- |cessive to cause any big demand for coal.
 It is obvious that in order to revive the mining industry lower price must be made. MT. Browne declared in the con- ference Thursday that coal must eventually be put on the cars at the mine for $350 to $4.00 per ton. He said that any coal oper- 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 nalize failure on the part of the miner. The reduction, he said, must come from the fuel producer as the transportation rate is las low as can be made until a permanent bridge is put in across the Panama river. lose money in hauling coal across the river lat charge of fifty cents per ton. Increas- ed tonnage means increased losses under the circumstances to the commission Even if the steel should be put down across the Tanana 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 Oniy 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 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, it must be remembered that it is also for the material benefit of Fair banks and this district. Ultimately it will benefit the entire interior by putting coal lon the market at 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 where the product would be available for