coal trade bulletin - Clpdigital.org

44 THE COAL TRADE BULLETIN.
upset and destroyed; and reforms in the handling
and selling of your product cannot be accomplished
without a frank discussion of the ignorance, errors
and abuses attendant upon that branch of the
business.
Having assumed that the producer has an accurate
knowledge of the cost of production, the
question of a reasonable return on the capital invested
is next in order. The figures compiled
by the federal government show that the average
returns from all mines in the United States for
the year 1909 were 3 per cent, on the capital invested.
The coke making mines of Pennsylvania,
including the Connellsville district, were exceptions,
with returns exceeding 6 per cent.
The three leading coal producing states showed
returns on all mines as follows: In Pennsylvania
a gain of 4.6 per cent., in West Virginia a deficit
of 0.9 per cent., and in Illinois a gain of 1.7 per
cenS.
This shows conclusively the necessity of figuring
into the selling price a larger percentage on
the investment than has been the custom. I
leave it with you to decide what is the reasonable
return upon your investment and risk.
Now, just a word as to the cost of selling. This
varies according to the volume and method of
marketing, and, while it is a profitable field for
discussion, I think there is much misapprehension
on the part of the producer as to* the present
actual cost of doing business, especially where the
territory has unlimited proportions.
This is brought about partly by the receipt at
the mines, during an active market, of numerous
inquiries from persons more or less unreliable—
many of whom have only desk loom in some large
jobbing centre, with little or no financial responbility—whose
flattering promises lead the unthinking
operator to imagine that his entire product
can be sold without any effort. The operator
loses sight of the fact that these undesirables
are only heard from during active periods, while
the legitimate sales agent is hard at work the year
round to keep the plant in operation and, at the
same time, maintain the market. This is no
small job I assure you and it is worthy of the best
efforts of any man.
The matter of terms is important. As the
measure of a tradesman's profit is determined by
the time required for the turnover of his stock
so is this question vital to us. If everyone's
terms were identical—say 30 days net—it would
be a simple matter. But when we consider that
the interest for 60 days, at six per cent., on $1.00
coal is lc per ton, on $1.50 coal is l%c per ton
and on $2.00 coal is 2c per ton, you can readily
see how much of the selling price is squandered
in extra time given to buyers.
It is indeed unfortunate that the federal govern­
ment, having done so much toward educating the
producer as to the true value of his property, the
scientific compilation of his costs and the safeguarding
of life and property, has not been so
zealous and active in teaching and helping him to
procure for his product a reasonable return. This
is especially unfortunate when compared with the
attitude of governments of other important coal
producing countries toward their operators.
The day of individualism has passed and we
have entered upon an area of collective effort,
which, when rightly directed, will redound to the
benefit of all.
I am neither a prophet nor the son of a prophet,
but I have the faith to believe that in the near
future there will be brought about, by popular
approval, a radical change in the attitude of our
own government toward securing a reasonable return
for the product of our mines.
TENTATIVE PROGRAM FOR SUMMER MEET­
ING OF COAL MINING INSTITUTE OF
AMERICA.
The executive board of the Coal Mining Institute
of America held a meeting in Pittsburgh
recently and adopted the following tentative program
for the summer meeting, to be held at Monongahela,
Pa., in June.
Local committee on arrangements at Monongahela—Alex.
McCanch, chairman; William Bird,
Henry Louttit, H. T. Booker and XV. A. Luce.
First Day—Morning—Address of welcome. Addsess—"Lake
Erie and Ohio River Ship Canal."
President Jesse K. Johnston to secure the speaker.
Afternoon — Paper—"Mine Timbering." (a)
Method of timbering and quality of timber, J. M.
Armstrong, (b) Method of timbering with reference
to over-lying strata and geological formation,
William Seddon. (c) Possible substitutes for
mine posts, U. S. Bureau of Mines representative.
Evening—In charge of local committee of arrangements
for entertainment or otherwise. Stereopticon
presentation of timbering by representative
of H. C. Frick Coke Co., lecturer to be secured
by I. G. Roby.
Second Day — Morning — Paper — "Accidents
Caused by Machine Mining as Against Pick Mining,"
by A. P. Cameron. Question Box, conducted
by W. E. Fohl.
Afternoon—Paper—"Practical Results from Efficiency
Methods in Mining," I. G. Roby to secure
Austin King, chief inspector for the H. C. Frick
Coke Co., to present this paper.
The annual meting of the New England Retail
Coal Dealers' association will be held in June, instead
of March, with a view to combining an outing
with the usual convention features.