The Birmingham age-herald., 1924-03-07
STATE LEASES
 lIIEAND WILL
 WORK CONNECTS
Coal At Flat Top To Be Mined On Royalty
 Basis
JsTATE CAPITAL BUREAU)

(SIATE CAPITAL BUREAU)
 MONTG0MERY, March 6.-Gov. wv. Brandon today approved con tract entered into between the state board of administration and the Sloss. Sheffield Steel and Iron company, ef- fecfiys Juiy.sl. r7s24. doing away with the present system of working ,convicts at Flat Top coal mine. Terms of the contract provide that the coal shall be delivered by the state at the surface on railroad cars at $1.30 per ton of z000 pounds washed coal, the state leasing the mine. The state will have complete control, not only of convicts employed in the mine, but of all em- ploges engaged in the operation of the mine, it was anneunced, and the sign ing of the contract is declared to rep resent an important step in the actual abolition of lease system which has for Q many years been desired.
 4S5 Convicts There
 The number of convicts employed at Flat Top is given at approximately 4S5. It will be noted that the contract diff fers from that recently made with the Bessemer Coal, Iron and Land company for Bell Ellen mines, in that the state will deliver the coal at the surface, the company retaining ownership and dis position of the fuel, while at Bell Ellen the mines were leased on a royalty basis, the state to sell the coal.
 It was pointed out that Flat Top is a much larger operation than Bell Ellen, with an output of around 2,2OO tons of coal daily, and it was deemed ad- visable to try out the sale of coal by the state on a moderate scale at first. The lease system is abolished in both cases, it is stated.
 Contract Explained
 Ain explanation of the Flat Top con- tract is given in the following letter from the state board of administration, by President L.BA. Boyd, to the gov ernor: yr sM ..,
 sWe are handing you herewith con, tract with Sloss+ Sheffield Steel and Iron company, in triplicate for your approval ., ,;e fers from the one under which the eonyiets are now employed nanny III the following pointA:
 .1. Whereas, The convicts are now being worked att certain sum per month per man, under this agreement the state is leasing the mine as well ns all equipment and prison facilities the state to produce the coal on rali- rvad cars at base price per ton ot washed coal. Under the terms of thls arreement the state not only has com nlefe control of the convicts employed in the mine, but all employees engaged in the operation of said mine will be entirely under the, control of the state, Sloss-Sheffield to pay the tonnage tax.
 State Safeguarded .
 70 The state has been safeguarded acainst any undue amount or repair work accruing in the interval between the present and the date the contract becomes effective to wit: July ], 1SI4. Thh. date was postponed Tn order that the state might be able to ger the op- eratiou under the contract with the Bessemer Coal, Iron and Land com many we'll underway, believing 1t would have been too large an undertaking 10 trv to make such radical change Tn tyx6 operations at the same tirne- The mine is to be inspected by state mlne i,,snector> just before the date It De- c,,u,es effective to see that the repalr work has been done.
 "a As in the Bessemer Coal, Iron and Land conpany contract, we nave c,,deayored to do one thing for the statefs wards which has never been, sIeue before to wit provide a means Dy which the eonvicts may receive com uensation for injuries. This IS iegiti- mate expense off operation, so consid, cred by the federal government and all operators and therefore will be set aside as such in a separate fund to be expended for this purpose only, up to, the amount of such fund.
 gro summarize, permit us to say that we have had two obJectlves Tn mind: A- ii . .u
 -"1. To relieve the contract of all neunblance of lease of the convicts; and,
 s;ro provide compensation for in- turtles sustained by convicts in the dis charge of their duty.
 AWe have tried to safeguard the rtate against any loss due to causes not under asir control and we hope, and believe, that the contract will prove of mutual benefit to all parties.
 sWe sincerely trust that 1t meet with your approval, and assure you Of cur sincere desire to make this opera tion reflect credit upon your admins tration."