The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-25
COAL OPERATORS AND
RETAILERS DENY THEY
ARE MAKING MONEY

so long as 1t costs us as much as 1t
does at the mines and we pay the
freight that we do. If the price was
less at the mines and the freight less
we would charge less for the coal, as
we did in 1914. but 1t Is idle to talk
about 1914 with the conditions of 1921.
The present is black enough for
the retail yards and If the operators
cannot find some way of relieving
us next year, | see no future for the
retail coal yard business"
Royalties
"Royaities ON coal will average
about IL cents n tom. says 4. E.
Durham of the Bryan Coal cor
poratiOn, who lease coat lands TO
20 operators.
sour firm WIS Formerly an OPP
erntor and may mt some future
time be nm operator, but at the
present we only handle the leases
of coal lands. particularly In the
Warrior field.
.some figure that royalties
amount to.5 per cent of the cost
price of coal"
Comparative Costs
One operating company which has
been interested in preceding articles
in The lAge-Heraid has formulated
the following relative cost OF the pro-
duction of coal:
Labor cost for one ton of coal.
1914, September 1877 cents: October.
s1.o1; September, 1891, $2.23; October,
1921, s2.22. Increase. 225 per cent.
Increase in freight rates, 1914 to
1921, ESQ per cent.
Increase. in cost of supplies, Oc-
tober 1914. to October. 1921. is AIS
to 4S5 per cent.
Price of Sipsey coal, retail, 1914,
s425 to $3.50; price, 1921, is 1915; in
crease of coal price, liz per cent
Labor and supplies comprising 80
per cent of cost of production has in
creased from ESQ to 400 per cent;
freight has been increased ESQ per
cent; war tax has been added; price
of coal, retail, has increased 100 to
$50 PERI cent"
Claims. High Operation
II. Isenberg of the Alabama Coal
company is one of the retailers who
claims, high operating expense. He
figures his unloading expense from
20 to % cents and the cost per ton to
deliver coal from 81 TO $3.50.
He gives the following price ratios
en- brands handled.
"Cahaba costs IS at the mine, 81
for freight and switching and war
tax 20 to rs cents to unload; sells
for 50.
Carbon Hill costs from 1915 to 81
at mine. war tax and freight and
switching, s1.15; 20 to rs cents to un-
load; sells for $3.50.
The operators don't want to lower
the price or can't, SO the price will
stay the same for some time.
=. II, N4tli rI 10
10 to 15 per cent steam coal, for which
we only get 81 a ton. Ordinarily we
figure it costs 81 ton to deliver 1t.
but when there is very little delivery
the overhead goes on and at times it
costs us $3.50 to make delivery of
one ton"
Rue Their Purchases
One of the large operators
states that the early fall persua-
sion which was brought to bear
on the public to buy from wagon
mines. causing the bulIespurchase
of wagon mine coal, has been rued
by purchasers. s +,,,,
81 had one man with 10 tons
of coal in his cellar call me up
and complain about the burning
qualities. He offered to give the
coal to anyone who would haul 1t
away mt one time.
Most Birmingham consumers de-
mand quality coal. They do not wish
to do their sorting, and believe that
is the work for the operator or deal
err. They want mostly lump or nut,
and do not care for mine run. The re-
tailers get enough steam coal from
their forkings without attempting to
handle any mine-run coal"