Coal Mine Accounting

It is quite generally conceded that the coal mining industry is among the most progressive in the adoption of modern and efficient equipment and mining methods, but most woefully antiquated in many respects in the matter of systematic accounting. The cause of this condition is problematical, but is usually thought to be due to false economy. We realize that those who do not understand accounts, or like accounting, are inclined to be disdainful of accounts and statistics, and to under-estimate the benefits derived from the expense and labor involved in proper accounting. The business that is run without a proper accounting system is subject to haphazard financing and courts disaster. Furthermore, the operator who disposes of his product without due regard to the requirements of the industry as a whole, as reflected in the cost of doing business, is an unfair competitor. No one will deny that the possible production of coal in the United States is much in excess of the demand. While it is true there is an occasional shortage in certain localities, it is due to temporary abnormal conditions which are overcome in a short period of time, when the mines are again obliged to take idle time, and herein lies the danger, not alone to the operator who neglects to keep informed as to operating costs; but to his competitor as well. While physical conditions and operating methods differ materially, accounting methods must likewise differ in some respects, but irrespective of how the result may be obtained, a true statement of cost is absolutely essential. Daily cost statements may be preferred by some, but have proven unsatisfactory, generally speaking, because of variation in production as well as in both labor and material expense from day to day; therefore, we will confine our attention to a monthly cost statement. To be most effective, operating cost statements should be prepared and submitted to the officers as soon after the close of the month's busi¬ness as possible, to enable them to remedy any defects in the operations that might be discovered by an analysis thereof. Opinions differ materially with respect to the most efficient method of compiling and the distribution of labor and material. The writer believes that a time book which provides space in which to enter the number of hours worked each day of the month by each employe, together with distribution thereof, is the most accurate, simple and complete. This record will show the service performed by an employe each day of the month and the account to which same is properly chargeable. This, of course, refers only to the employe working by the-day or month. While there can be but little said concerning the compiling and distribution of miners' wages, as the weighman's bulletin used almost