Analyzing the Cost of Producing Anthracite

ONE of the most, if not the most, difficult of the problems associated with the mining and distri-bution of anthracite is to get clearly into the minds of the consumers and of the editorial and reporto-rial writers in the public press the relationship between the cost of production, the price at the mine and the price that the consumer pays for his coal, delivered in the cellar. One sees in his morning paper a statement to the .effect that out of the $12 or $13 per ton that his dealer charges him, the miner gets only $2 or even less, and he asks himself or the paper asks for him, "Who gets the difference?" Not infrequently the amount that the miner gets is given for run-of-mine bituminous coal while the price quoted is that of prepared anthra-cite, egg, stove, or chestnut, as the case may be, delivered to the bin of the consumer; and the difference stands out with all the more prominence; and it sticks in his memory with a persistency which no manner of explanation is able to efface. A recently published official report for the year. 1921 of one of the State Bureaus stated the total production of anthracite in net tons of 2000 lb., and included not only the output recovered by washeries from old culm banks and by dredges from creek and river channels, but also the colliery consumption;, i.e., the coal used by the companies in the operation of the collieries. This resulted in a total production of 90,509,075 net tons for which the labor cost was stated at $283,961,300, or $3.13 per net ton, equivalent to $3.50 per gross ton. This figure of $3.50 was immediately seized upon as representing the labor cost per gross ton of fresh-mined commercial coal. It is almost a hopeless task to try to correct such errors of statement in the first place, and, in the second place, to correct the misapprehen-sions that arise from them. As a matter of fact, the report was misleading in regard to the labor cost of the entire production shipped, as the coal used for colliery consumption should be deducted. Correctly stated, the report should have shown, calculated in terms of gross tons of 2240 lb., the legal weight in Pennsylvania, as follows: Gross production 80,607,359 tons Less colliery fuel 8,757,137 tons Commercial production 71,850,222 tons Total labor bill $283,961,300.00 Labor cost per ton...: 8 3.952 The foregoing figures" of tonnage are obtained from the State Department of Mines. Even these include the quantity recovered from calm, banks by washeries, and consequently the $3.95 arrived at as the average labor cost is somewhat less than that actually involved in the mining of fresh-mined coal. Unfortunately, the figures of washery production and the cost of producing it are not available.