The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-26
Henryetta Coal Field
Serene and Peaceful
AS Strike Draws Near

other grades will have 60 balance in
order tu mako the average reoliZa-
tlOu price. Thus II 25 cents IL taken
of the price OF slack, 10 will have
90 bc add,ditJ the price OF lump and
nut IN prnpcr proportion. The pres
cnt price ~ lump is f5.75. and nut
N.55, and slack $500. Using the
average percentage OF lump. nut and
slack Nado from the mine run, a ton
OF mine Iuu coDi screened for com
mcrcial use and sold at these prices
VIII average Il mlnc run realization
price ut $3.50, which gives only the
small margin OF cents above the
cost OF production. After deducting
the selling cost ut g per cent, the
operator has an approximate loss or
10 ccuts IA his ton OF coal. The
| prices ON the various grades go up
ana down lu accordance with the
demand un the market, During the
| past year plentiful supply OF fuel
| oil made heavy 'urund ON the coal
market, aud tho Ifico OF slack coaf
was forced down i1 competition. and
as already explained. the price OF
lump and nat coal we're adjusted to
meet the balance the low price Of
| slack.
shipping Costs high.
Nouhor have the selling COM
panles escaped the losses on the coal
| business during the past year. The
/ operators contract with these selling
companies to handle their coal on
n basia OF @ per cent commission on
! the market price. which commission
/ varies from 30 cents TO 25 cents de-
| pending on the grade Of coal and its
market price, and figures from a
number OF the large selling COM
| panics show that II cost thom over
| 30 cents and 35 cents per ton TO sell
| the coal they shipped last year. As
an example Of the market price OF
coal al various selling agencies,
! IIenryotta lump coal IL retailed In
| Oklahoma city at from 50 TO Sl2
mar ton, depending on the distance
! from the mines. This is due to the
| fact that this freight on "a ton OF
coal is nearly as much as the rrice
| Of the coal at the mines as , 10
delivered at n selling point. Alva,
Oklahoma. Is another instance. Here
the freight rate Is $3.l0 1-2 plus the
| price OF the coal at the mine of
s5.75. then 25 cents for unloading,
10 cents TO cover natural shrinkage
In weight during transit, and 75
cents to deliver to the consumer nets
a cost to the dealer of $40, while he
probably sells IL for Si2. getting a
| minimum profit after dCt ing
overhead expenses. The freq fate
to Altus. oklahoma, Is t3.S, l-2
making tho cost 10 the dealer there
3l0.27. Cherokee. CordeD and Ho-
bart have rate OF s2.g7, making
the cost to these dealers f9,S7, while
he sells at 3l0.b0. Duke, Oklahoma,
has a rate OF s3.b1 Grandheld s3.6f
l-2. clinton s2.s3 i-2. Durant ,2.16,
nj -. u sA.sf. a
S3.37 Ia, Oklahoma city t2.29 liz
and Dallas, Texas $3.5I. and in each
OF these selling points the dealer
o iter figuring his cost as outlined,
adds a small margin of profit 10
arrive at his selling price.
Lower coal prices to the consumer
can only be brought about by a re-
duction first by lower production
price, and second by lower freight
rate. ono leads to the other. as a
lower production cost OF coal Will
result In n cheaper fuel for the rail-
roads. thus lowering their operating
expenses. which in turn should en-
able them to n reduction OF freight
rates, Lower production cost only
can come with the lowering os
wages. for labor is now 10 per cent
OF the cost OF coal. Thus the public
who must pay the price whatever
II be, will be vitally Interested in the
outcome OF the pending meeting be-
tween the operators and the United
Mine Workers OF America. As an
evidence OF what prolonged strike
means I'm this field, Henryetta has
approximately 1000 coal mine
employees. and one of the local OPP
orators alone paid out In wages dur
ing the slack working year OF 1921,
the immense sum OF Sl,250,000 and
there are IS operators In this field.