New York Paper - Anthracite Mining Costs (with Discussion)

It was stated in a former paper1 that an intensive study of anthracite costs was being made by the engineers of the United States Fuel Administration. The results of this study are now available and are offered as a supplement to the former paper. Anthracite costs as reported for the 6-months period, December, 1917, to May, 1918, inclusive, as compiled by the Federal Trade Commission, were used as a base, and charts similar to those described in the former paper were made for the standard white ash anthracite and for red ash and Lykens valley coals. Adjustments The adjustments of cost from a reported to a price-fixing basis, as described for the bituminous methods, were applied but showed only minor adjustments as necessary. The great spread in anthracite prices on the varyingsizes, which for the 6-mo. period under review ranged in average from $5.244 for nut to $2.074 for barley coal, makes the question of the percentage of sizes produced at the different collieries a vital one. The realization with the same prices for each size must be within very wide limits, when it is considered that the percentage of prepared coal reported from different collieries varied from over 80 per cent. to below 30 per cent. for fresh-mined coal. Hence, as the spread in prices for the various sizes must be predicated on some percentage, it is essential to find some method of adjustment to allow for this variation. The logical method of adjustment is to calculate actual costs to costs as of the standard percentage of sizes, so that the margin between the adjusted costs and the average realization shall be the actual margin for each colliery between its actual costs and actual realization due to its particular percentage of sizes. As a base for realization the actual percentage of sizes for fresh-mined coal for the 6-mo. period was adopted. This percentage is given in Table 1.