Evening star., 1938-08-14

some call IL SOCIALISM,. OLHeTS CQu IL
unifcation. Regardless OF what it is,
Great Britain's Legislative houses haze
poted to pay 5000 land o,Uners $780,
100000 to place the nations coal mines
in the hands of the government. 1t is
nove designed to solue a problem uhich
long has been troublesome. The story
back of this interesting and drastic
action, uith an explanation OF the prori-
sions of the lau, is giuen in the tollow-
ing art,cle)
BY WALTER NJ. HARRISON.
Correspondence of the Associated Press.
7 ONDON.-Coal royalties, sniped at by
labor for half century as the ma jor
cause Of the miners troubles, are at
last on the way out in Great Britain.
Four years from now Britain's huge coal
supply will be nationalized, or unified" as
a result of the final passage of the govern
ment's coal bill after months of debate and
compromise between the House of Com
mons and the House of Lords.
Bitterly as some Conservatives oppose
compulsory combination of collieries in the
interests Of economy they had to yield.
Compulsory combinations are an alement
Of the law.
Socialists were resolute in their opposition
to the paying Of huge sums to royalty
owners, but they had to yield just as their
Conservative opponents did.
The government is going to pay s66 ooo,-
900 1880 900 ooo) to take the coal land out
of the hands of the 5000 rich land owners
and estates which have inherited it and
administer it for the benefit of all the
people of the British Isles
Three Main Purposes.
Three main purposes Of the measure are:
!. Government purchase Of privately
owned royalties.
2. Voluntary and compulsory amalgama-
ton of collieries.
3. Protection of consumers.
Britain's coal business has been in the
doldrums since the great war; when the
export market disappeared.
The average number Of coal miners Is
739 900 and the average annual production
Is 75O000,000 long tons.
Multiplied thousands of coal workers
went on relief before 1920 and by 1926
conditions in the business were so de-
plorable that they led to the disastrous
general strike.
The present government pledged solution
Of the coal problem is part of its program
of 1885 Premier Neville Chamberlain has
nursed the complicated measure carefully
through Parliament for the last year.
In 1886 group of go members of Parlia-
ment joined in memorial branding OF the
royalty system as gross hindrance TO
the mining industry"
Pressure against the Landlord tax on
coal had increased to such an extent by
1919 that David Lloyd George set up a
commission which was unanimous in rec
ommending that coal royalties be ma
! tionalized. 1t was before this commission
that Robert Smillie. the brilliant mine
worker, appeared and challenged in debate
the Duke of Northumberland. who at the
time was receiving f96,l9% annually in
coal royalties.
Indorsed by Commissions.
The Coal Commission of 1885 Endorsed
the theory of "unifcation of royalties. -
Further encouragement was given the pro-
ponents of the plan by the Coal Mines Re-
organization Commission Of 1888. The
Departmental Committee which followed in
| 1894 indorsed the same broad policy.
Coal Royalties have been protected since
1868, when the famous court decision
Queen vs. Northumberland. established the
rule that mines of gold and silver belong
| to the King, but mines Of coal to the owner
of the surface of the land.
Since that time coal royalty fortunes
have grown and passed along from genera
ton to generation. Coal royalty is handled
as oil royalties. They are dealt in just
as if they were securities. To own the
royalty is to own the coal.
The Church of England is one Of the
principal beneficiaries from coal royalties,
receiving through ecclesiastical commits
sioners the sum of $4,000 from coal ac
counts in recent typical year. Most Of
the 1000 principal royalty holders are
titled and landed gentry. In an average
year the Duke of Hamilton receives f113-
600, the Marquis of Butte f109.277 and the
Duke of Northumberland EGG, 1874, to name
three examples.
During 1887 the master of the rolls, with
two assistants fixed the sum Of royalty pay
ments. The basis is IS times the annual
income, less per cent for mineral rights
duty and per cent for the building of pit
| head baths.
When negotiations were joined, the
royalty owners demanded fl12,00O,O00. In
final form, the government will pay out
f4430,Oo0 annually for IS years The total
bill i EGG, 6,45O 900, which will retire all pri-
| vate royalties and give the title to all of
| Br,:Ain's visible and undiscovered coal to
| tue people OF the nation.
The proposed coal commission, which
becomes the governments supreme au-
thority in thu industry, will borrow at ga
pc. cent to get the huge sum with which
to pay for the royalties and fl0,000,000 in
addition fol expense money.
The treasury has the authority to guar.
sntee the oommissions borrowings. It Il