New York Paper - Economies in a Small Coal Mine (with Discussion)

The idea of economical production is usually associated with large operations, tonnages, and mines, with even larger capital behind them. , Nevertheless many small mines operate in the shadow of large competitors and make a good showing on the capital invested despite larger overhead expenses. For the purpose of this discussion I will divide the cost of production into classes, and specify opposite each the approximate percentagc expended thereon: 1. Labor, including miners and company men; 60 to 75 per cent. 2. Development, including all necessary .yardage, room turning, crosscuts, etc.; 7 to 12 per cent. 3. Deadwork, covering payment to miners for handling falls, draw-slate, or faults, rock work, water, and in general, all nonproductive labor; 3 to 7 per cent. 4. Supplies: mine timbers, oil, brattice material, lumber, cement, and repairs to equipment; 2 to 6 per cent. 5. Expense: management, selling, office, taxes, etc.; 1 to 5 per cent. 6. Depreciation of coal reserves and royalties; 6 to 10 per cent. 7. Depreciation of equipment and interest on capital invested; 1 to 3 per cent. 8. Fuel; ½ to 1½ per cent. The labor cost for a small mine is relatively much lower than for a large mine, particularly the sum paid to company men. Idle-pay expense is cut to a minimum; the labor item being larger than all the others together, a saving in labor makes a decided showing on the total cost. The development charges in small and large mines are about the same. There should be a small showing on the deadwork item in favor of the small mine. The unit cost for supplies is usually small in the small mine. The operator of the small mine finds, owing to a limited tonnage, that the expenses of management, selling, etc., are abnormally high. The item, depreciation of coal reserves and royalties, is usually about