In Alaska in the Matanuska and Bering River bituminous fields, and in the Nenana lignite field, the government has offered the coal for leasing purposes at 2 cents a ton for the first period, under restrictions providing for conservation of coal and reasonable prices to consumers. Some units have been taken up in the Matanuska and Bering River fields, but, as the measures are badly contorted and the coal beds difficult to trace, progress has been slow and production has scarcely begun. Temporarily, the Alaskan Railway Commission is working some mines at Chickaloon and Eska Creek, to obtain a supply of coal pending the development of other mines by lessees. Congress, in opening the coal lands in the Matanuska and Bering River fields for leasing, has reserved tracts of not exceeding 7,680 acres and 5,120 acres respectively for the use of the Navy.
The United States still owns large areas of coal and lignite lands in the western states. Most of these lands are remote from railroads and difficult of access, but they contain enormous reserves. At present, outside of Alaska, only one mine, the Gebo mine, Gebo, Wyoming, is leased by the government, but extension of a leasing system similar to that of Alaska has been recently effected.
In the United States the anthracite industry is well organized, and its railroad connections make it notably efficient and powerful. Bituminous coal, on the other hand, is so widely distributed on both public and private lands that no private organization has attempted to control the industry. Such control has always been opposed by Congress and the general public.
Except during the war, neither Great Britain nor the United States has attempted any control over commercial mining and the sale of coal. Each country created a fuel administration, and the coal was shipped under government instructions and paid for at prices fixed by the fuel administration. In the United States this government control has practically disappeared with the war, but in England the Coal Control has so far been continued, and the tendency is for the government to retain for the present a strong guiding hand on the various “key” industries. Certainly, in the final analysis, coal mining is a public utility and should be supervised and adjusted by the government accordingly, allowing free latitude for private initiative.
Of the important coal-producing countries, only the German Empire, more or less openly, has fostered in peace times the coal industry and to some extent controlled it. In France there was only an indirect control, through the control by the government of the concessions and taxation of revenues and through tacit knowledge of the operations of the French coal syndicate, which ostensibly at least obtains and disseminates information and conducts mine safety investigations. In the United States, Great Britain, and other countries free competition has been permitted. Free competition does not seem serious in countries like France, where the supply of coal is limited, but it has had more or less serious financial effects where the supply of coal has been very large. In Germany before the formation of the syndicates the coal mining industry had periods of overproduction and serious financial depression; and at other, rarer, periods there was great prosperity. In Great Britain there have been similar times of depression and prosperity, but generally the business has been profitable.
In the United States, except in the anthracite district, where for more than twenty years the operations have been in the hands of comparatively few companies, depression and prosperity have alternated rapidly. The statistics obtained by the census show that the average profits of the bituminous industry prior to 1917 were smaller than those of any other great industry, and this has had an unfortunate effect on the best development of the coal resources. The companies generally have had little or no surplus to develop properly in the lean years; hence they have mined only the best or thickest coal, and in short periods of great prosperity many mines not directly owned by the railroads and steel companies have been worked so as to lead to “squeezes” and great loss of coal. Moreover, these conditions have also been unfortunate for labor; in times of prosperity too many new mines were opened, because of the tremendous and easily accessible resources, and in times of depression the number of days the miners worked has been so reduced that their monthly or yearly earnings have been low enough to make their living a hard one. The average number of days worked per year from 1901 to 1915 was 213. Some system of limited control of trade combinations by the government would appear to be highly advantageous for both the operators and the miners, and should insure a steady supply of coal to the consumers and steady prices with reasonable profits.
As regards trade relations between the United States and other countries concerning fuel supplies, except for a possible agreement on non-subsidy of the coal-carrying shipping, any attempt at a general agreement on so vital a necessity as coal seems unwise, except for non-duplication of elaborate coal storage and rehandling plants in ports requiring small tonnages, and preventing ruinous competition by systematic “dumping” of surplus coal to drive a competitor out of business.
Of all the continents, South America has the smallest coal resources. Although there is coal in Brazil and Chile and other South American countries, it is difficult to reach, and the fields so far known do not give promise of being able to take care of the needs of the countries in which they occur.
The Coal Situation as Affected by the War.
—Immediately after the opening of the war in Europe, July 31, 1914, the German military forces attacked and advanced in the east through Russian Poland, promptly securing the important Dombrova field, which is an extension of the Upper Silesian coal fields. The German forces also advanced in the west through the Belgian coal fields and thence through the extension of these fields in northern France, at the same time seizing the important Briey iron-ore deposits north of Verdun.