LIBRARY 
 
 OF THE 
 
 UNIVERSITY OF CALIFORNIA. 
 
 RECEIVED BY EXCHANGE 
 
 Class 
 
leport of Proceedings 
 
 OF THE 
 
 AMERICAN 
 
 MINING 
 
 CONGRESS 
 
 Fourteenth Annual Session 
 
 Chicago, ML, October 2428, 1911 
 
 Published by the American Mining Congress 
 At Office of the Secretary, Denver, Colo,, 1911 
 
Report of Proceedings 
 
 of the 
 
 American Mining 
 Congress 
 
 Fourteenth Annual Session 
 
 Chicago, 111., Oct. 24-28 
 
 * * * 5 i i 
 
 t *< " 
 
 Published by the American Mining Congress 
 
 At the Office of the Secretary, Denver, Colo., 1911 
 
vstt) 
 
 PREVIOUS SESSIONS OF CONGRESS. 
 
 DATE. 
 
 CITY. 
 
 PRESIDENT. 
 
 ADDRESS. 
 
 
 1st 
 
 July, 
 
 1897 1 
 
 Denver, Colo. 
 
 Hon. Alva Adams, 
 
 Pueblo, Colo. 
 
 
 1st 
 
 July, 
 
 1897 
 
 Denver, Colo. 
 
 Hon. L. Bradford Prince, 
 
 Santa Fe, N. M 
 
 
 2nd 
 
 July, 
 
 1898 
 
 Salt Lake City, Utah. 
 
 Hon. L. Bradford Prince, 
 
 Santa Fe, N. M 
 
 
 3rd 
 
 July, 
 
 1899 2 
 
 Milwaukee, Wis. 
 
 Col. B. F. Montgomery, 
 
 Cripple Creek, 
 
 Colo. 
 
 3rd 
 
 June, 
 
 1900 
 
 Milwaukee, Wis. 
 
 Col. B. F. Montgomery, 
 
 Cripple Creek, 
 
 Colo. 
 
 4th 
 
 July, 
 
 1901 
 
 Boise, Idaho. 
 
 Hon. L. Bradford Prince, 
 
 Santa Fe, N. M 
 
 
 5th 
 
 Sept.. 
 
 1902 
 
 Butte, Mont. 
 
 E. L. Shafner, 
 
 Cleveland, Ohio. 
 
 
 6th 
 
 Sept., 
 
 1903 
 
 Deadwood and 
 
 
 
 
 
 
 
 Lead, S. D. 
 
 Hon. J. H. Richards, 
 
 Boise, Idaho. 
 
 
 7th 
 
 Aug., 
 
 1904 
 
 Portland, Ore. 
 
 Hon. J. H. Richards, 
 
 Boise, Idaho. 
 
 
 8th 
 
 Nov., 
 
 1905 
 
 El p'aso, Texas. 
 
 Hon. J. H. Richards, 
 
 Boise. Idaho. 
 
 
 9th 
 
 Oct., 
 
 1906 
 
 Denver, Colo. 
 
 Hon. J. H. Richards. 
 
 Boise, Idaho. 
 
 
 loth 
 
 Nov., 
 
 1907 
 
 Joplin, Mo. 
 
 Hon. J. H. Richards. 
 
 Boise. Idaho. 
 
 
 llth 
 
 Dec.. 
 
 1908 
 
 Pittsburgh, Pa. 
 
 Hon. J. II. Richards. 
 
 Boise. Idaho. 
 
 
 12th 
 
 Oct., 
 
 1909 
 
 Goldfield, Nov. 
 
 Hon. J. II. Richards, 
 
 Boise, Idaho. 
 
 
 13th 
 
 Oct.. 
 
 1910 
 
 Los Angeles, Cal. 
 
 Dr. E. R. Buckley. 
 
 Rolla, Mo. 
 
 
 14th 
 
 Oct., fc 
 
 1911 
 
 Chicago, 111. 
 
 John Dern, 
 
 Salt Lake City, 
 
 Utah. 
 
 
 1 Temporary 
 
 * 
 
 ...: 
 
 
 
 
 
 
 2 Passed to 
 
 June, 
 
 1900. ' 
 
 ' 
 
 
 
INDEX 
 
 Page 
 
 Auditing Committee, Report of 110 
 
 Bituminous Coal Industry, Discussion on Condition of 61 
 
 Complex Ores, Discussion on Treatment of 70 
 
 Directors, Election of 110 
 
 Financial Statement _of Secretary 100 
 
 Members, Annual Meeting of 100 
 
 Members, Adjourned Meeting of 108 
 
 Mine Accidents, Discussion on Prevention of 51 
 
 Mineral Land Laws, Report of Committee on. . . 119 
 
 Mineral Statistics, Report of Advisory Committee on. . US 
 
 Nominating Committee, Report of 110 
 
 Resolutions, Discussion Incident to Action on 88 
 
 Resolutions, Membership of Committee on 51 
 
 Revision" of By-Laws, Report of Committee on 108 
 
 Smoker Tendered by Chicago Business Men L'.} 
 
 Workmen's Compensation, Report of Committee on 113 
 
 Workmen's Compensation, Discussion of Report on 38 
 
 SPEAKERS. 
 
 Abbott, W. L Economics of Coal Industry 224 
 
 r.nlihvin, Geo. E Response to Address of Welcome 19 
 
 The Alaskan Question 299 
 
 Bartlett, C. O Workmen's Liability Insurance 191 
 
 Bent, E. T Affiliation of Coal Operators 105 
 
 Bogle, W. S Bituminous Coal Industry 254 
 
 Sotting", D. A Prevention of Mine Accidents 58 
 
 Buckley, Dr. E. R Permanent Headquarters 102 
 
 Brooks, Dr. A. H Future of Alaska Coal 291 
 
 Brownlee, A. G The Malm Process ' 168 
 
 Callbreath, J. F., Jr Metallurgical Processes 83 
 
 Permanent Headquarters 104 
 
 Increase of Directorate Ill 
 
 Calverley, Walter! Bituminous Coal Industry 61 
 
 Chaney, Hon. J. C Response to Address of Welcome 28 
 
 Chapman, H. L Response to Address of Welcome 27 
 
 Conner, Eli T Response to Address of Welcome '. 31 
 
 Daniels, W. P Investigation of Malm Process 80 
 
 Forestry Committee 82 
 
 Mine Frauds 85 
 
 Davis, H. D Prevention of Mine Accidents 56 
 
 De Laverg-ne, E. M Report of Resolutions Committee 88 
 
 Permanent Headquarters 103 
 
 De Lestry, E. L Response to Address of Welcome 33 
 
 Workmen's Compensation 44 
 
 Nominating Committee 101 
 
 Affiliation of Mining Associations 109 
 
 Dern, John Introducing President Taft 99 
 
 Permanent Headquarters 103 
 
 President's Annual Address 121 
 
 De Pulligny, Jean Response to Address of Welcome 14 
 
 Dinwiddie, J. M Mine Frauds 83 
 
 Douglas, Dr. Jas Disposal of Public Lands 214 
 
 Elliot, James .Coal Mining Industry 224 
 
 Finney, J. E . Mine Run Syste'm 233 
 
 Fishback, Martin Conservation vs. Encouragement 334 
 
 Fisher, Hon. Walter L. . . Alaskan Problems 363 
 
 Foster, Dr. Martin D Congress and Mining Industry 390 
 
 Gibson, Thos. W Response to Address of Welcome .' . 16 
 
 232495 
 
< SN'D-EX 
 
 Page 
 
 Gillie, John Response to Address of Welcome 30 
 
 Goodsell, B. W Deep Waterways 92 
 
 Gould, C. N 1 Response to Address of Welcome 31 
 
 Granberg, H. O Metallurgical Investigation 86 
 
 Griffith, William Pennsylvania Leases.. 71 
 
 High Grade Coals of Alaska 329 
 
 Gulley, Hon. Ransom Response to Address of Welcome 19 
 
 Hammond, John Hays Mining Investments 163 
 
 Harnwell, F. W Response to Address of Welcome 16 
 
 Harriman, H. R New Federal Alaskan Policy 309 
 
 Haworth, Dr. Erasmus. . . Response to Address of Welcome 21 
 
 Committee on By-Laws 107 
 
 Report of Nominating Committee 110 
 
 Holmes, Dr. J. A The Mining Industry 69 
 
 Jacobs, Hon. J. H Response to Address of Welcome 23 
 
 Jones, John H Workmen's Compensation 180 
 
 Joseph, H. S Committee on Freight Rates 98 
 
 Joslin, Falcon Alaskan Coal Situation 351 
 
 Kirby, E. B Revision of Mineral Land Laws 86 
 
 Knight, Jesse Power Sites 78 
 
 Conservation and the People 158 
 
 Kuhn, D. W Sherman Law and Coal Industry 257 
 
 Leehey, Maurice D Coal and Transportation in Alaska 337 
 
 McGann, Lawrence E . . . . Address of Welcome 26 
 
 Malm, John L Committee of Metallurgists 80 
 
 Martin, E. L Response to Address of Welcome 29 
 
 Vote of Thanks 88 
 
 Mayer, John Workmen's Compensation '. 38 
 
 Maynard, T. Poole Cement Resources of South 208 
 
 Moderwell, C. M Opening of Convention 8 
 
 Moore, Philip N Response to Address of Welcome 30 
 
 Moorshead, A. J Bituminous Coal Industry 246 
 
 Nugent, Horace Response to Address of Welcome 13 
 
 Payne, Dr. H. M Affiliation of Coal Operators 106 
 
 Pratt, Dr. J. H Mining Schools 91 
 
 Purdue, Dr. A. H Mine-Run Law in Arkansas 227 
 
 Ropiequet, R. W Bituminous Coal Industry 64 
 
 Ross, David Workmen's Compensation 46 
 
 Ross, G. McM Alaskan Situation 97 
 
 Scholz, Carl Economics o/ Coal Industry 241 
 
 Searcy, W. N Response to Address of Welcome 19 
 
 Ore Treatment Problems 196 
 
 Smith, Dr. Geo. Otis Coal Land Legislation 285 
 
 Spry, Hon. Wm The Public Lands Question 138 
 
 Stevenson, Andrew Prevention of Mine Accidents 51 
 
 Stevens, Horace J The Copper Industry 146 
 
 Stewart, Duncan M Transportation in Alaska 320 
 
 Stoek, Dr. H. H Address of Welcome 8 
 
 Taft, Hon. Wm. H Government and Mining Industry 394 
 
 Talmage, Dr. J. E Response to Address of Welcome 32 
 
 Permanent Headquarters 103 
 
 Taylor, H. N Bituminous Coal Industry 62 
 
 Taylor, James Prevention of Mine Accidents 51 
 
 Taylor, S. A Workmen's Compensation . 43 
 
 Electrical Standardization 49 
 
 Bureau of Mines 110 
 
 Traer, Glenn W Coal Operators' Meeting 76 
 
 Verner, John Prevention of Mine Accidents 55 
 
 Vinson, Z. T Workmen's Compensation 39 
 
 Wetherly, E. C Committee on Freight Rates '. . 98 
 
 Williams, Walter Anti-Trust Laws and Coal Industry 2?0 
 
 Woodson, C. C Workmen's Compensation 45 
 
INDEX 
 
 PAPERS AND ADDRESSES. 
 
 Page 
 
 Annual^Address of President John Bern, Salt Lake City 121 
 
 The Public Land Question Hon. William Spry, Governor of Utah 138 
 
 Past, Present, and Future of Copper ... Horace J. Stevens, Houghton, Mich. 146 
 
 Conservation and the People Jesse Knight, Provo, Utah 159 
 
 Mining as an Investment John Hays Hammond, New York City 163 
 
 Importance of the Malm Process in the Metallurgy of Complex Ores 
 
 A. G. Brownlee, Idaho Springs, Colo. 168 
 
 Workmen's Compensation John H. Jones, Pittsburgh 180 
 
 Workmen's Liability Insurance C. O. Bartlett, Cleveland 191 
 
 The Federal Investigation of Ore Treatment Problems 
 
 W. N. Searcy, Silverton, Colo. 196 
 
 Portland Cement and Cement Resources of the Southern States 
 
 T. Poole Maynard, Atlanta, Ga. 208 
 
 Some Reflections on the Disposal of Public Coal Lands 
 
 Dr. James Douglas, New York City 214 
 
 Condition of the Coal Mining Industry of Oklahoma 
 
 James Elliot, McAlester, Okla. 221 
 
 The Economics of the Coal Industry W. L. Abbott, Chicago 224 
 
 The Operation of the Mine-Run Law in Arkansas 
 
 Dr. A. H. Purdue, Fayetteville, Ark. 227 
 
 The "Mine-Run System" of Mining Coal. . . .J. E. Finney, Huntingdon, Ark. 233 
 
 The Economics of the Coal Industry Carl Scholz, Chicago 241 
 
 The Condition of the Bituminous Coal Industry 
 
 A. J. Moorshead, St. Louis, Mo. 246 
 
 The Condition of the Bituminous Coal Mining Industry 
 
 Walter S. Bogle, Chicago 254 
 
 Sherman Anti-Trust Law with Special Reference to the Coal Mining Indus- 
 try D. W. Kuhn, Pittsburgh 257 
 
 Anti-Trust Laws in Their Relation to the Mining Industry 
 
 Walter Williams, Benton, III. 280 
 
 What the West Needs in Coal Land Legislation 
 
 Dr. George Otis Smith, Washington, D. C. 285 
 
 The Future of Alaska Coal Dr. Alfred H. Brooks, Washington, D. C. 291 
 
 The Alaskan Question George E. Baldwin, Valdes, Alaska 299 
 
 Wanted, an Informal Public Sentiment to Support a New Federal Policy 
 
 Toward Alaska Henry R. Harriman, Seattle, Wash. 309 
 
 Transportation in Alaska Duncan M. Stewart, Seward, Alaska 320 
 
 The High Grade Coals of Alaska William Griffith, Scranton, Pa. 329 
 
 Conservation vs. Encouragement Martin Fishback, El Paso, Texas 334 
 
 Coal and Transportation in Alaska Maurice D. Leehey, Seattle, Wash. 337 
 
 The Alaskan Coal Situation Falcon Joslin, Fairbanks, Alaska 351 
 
 Alaskan Problems Hon. Walter L. 'Fisher, Secretary of the Interior 363 
 
 The Relation of Congress to the Mining Industry 
 
 Dr. Martin D. Foster, Washington, D. C. 390 
 
 The Federal Government and the Mining Industry 
 
 Hon. William Howard Taft, President of the United States 394 
 
RESOLUTIONS 
 
 SUBJECT INTRODUCED BY PAGE DISPOSITION PAGE 
 
 'l 'Metallurgical Teatlng Stations. . Harry S. Joseph 35 Substitute Adopted.. S9 
 
 2 Bituminous Coal Industry Kanawha Coal Opera- 
 
 ' tors' Ass'n 36 Substitute Adopted.. 92 
 
 .. v]!iska coal Lands Valdrz Section A. M. C. 37 Substitute Adopted.. 96 
 
 l' Miners' Wage S.-ale Js. Flotchor 37 Tabled - 
 
 5 Deep Wat.Txvays B. W. Goodsell 37 Substitute Adopted. . 9C 
 
 6 Workmen's Compensation and 
 
 Anti-Trust Laws ','.., 2. T. Vinson 38 Substitute Adopted. . 
 
 6a Workmen's C..mp'iisatl<ni E. T. Bent 38 Substitute Adopted. . 92 
 
 7 Metallurgical Investigations H. O. Granberg 56 Substitute Adopted.. 89 
 
 8 Amendment of Anti-Trust Laws. Glenn W. Traer 65 Substitute Adopted.. 92 
 
 9 "Shooting Off the Solid" J. E. Finney 65 Substitute Adopted. . 92 
 
 in Maintenance of Mining Schools. . II. N. Taylor G6 Adopted 90 
 
 11 Mefnllurgiciil Investigations W. N. Scarcy 67 Substitute Adopted. . SO 
 
 12 Metallurgical Appropriation W. P. Daniels 72 Substitute Adopted. . 89 
 
 1 .", Alaska Coal Lands Falcon Joslin 73 Substitute Adopted . . 96 
 
 1 4 Mine Frauds W. P. Daniels 73 Substitute Adopted . . 94 
 
 15 Revision of By-Laws W. P. Daniels 75 Tabled 
 
 . . Bureau of Mines Pa. Delegation 97 Adopted 97 
 
 .. Publicity Committee * 94 Adopted 94 
 
 .. Parks' on Mineral Lands * 00 Adopted 9ft 
 
 .. Obituary * 97 Adopted 97 
 
 . . Thanks' 95 Adopted 95 
 
 *Prc>rared by ('< mmittee on Resolutions. 
 
 OFFICIAL ROSTER, 1911 
 
 OFFICERS. 
 JOHN DERN, President. SAMUEL A. TAYLOR, 1st V. Pres. 
 
 D. W. BRUNTON, 2nd Vice Pres. E. A. MONTGOMERY, 3rd V. Pres. 
 
 J. F. CALLBREATH, JR., Secretary. 
 
 DIRECTORS. 
 JOHN DERN, Salt Lake City, Utah. A. G. BROWNLEE, Denver, Colo. 
 
 E. R. BUCKLEY, 'Chicago, 111. SAMUEL A. TAYLOR, Pittsburgh Pa. 
 
 D. W. BRUNTON, Denver, Colo. L. W. POWELL, Warren, Ariz. 
 
 E. A. MONTGOMERY, Los Angeles. GEO. WINGFIELD, Reno, Nev. 
 Dr. JAS. DOUGLAS, New York City. tGEO. W. E. DORSEY, Salt Lake. 
 CHAS. A. BARLOW, Bakersfield. B. F. BUSH, St. Louis; Mo. 
 
 ADVISORY BOARD. 
 
 RICHARD E. SLOAN, Phoenix, Ariz. D. W. BRUNTON, Denver, Colo. 
 THOS. C. BURKE, Sumpter, Ore. \\ r . T. PERKINS, Seattle, Wash. 
 
 KDWARD HORSKY, Helena, Mont. 
 
 EXECUTIVE COMMITTEE. 
 
 D. W. BRUNTON, Denver, Colo. JOHN DERN, Salt Lake City, Utah. 
 
 A. G. BROWNLEE, Denver. 
 
 tDeceased. 
 
OFFICERS AND COMMITTEES, 1911 7 
 
 STATE VICE PRESIDENTS. 
 
 Alaska . CHAS. ESTMERE Candle 
 
 Arkansas A. W. ESTES YelBville 
 
 Arizona WILL. L. CLARK Jerome 
 
 California . . .SEELEY W. MUDD Los Angeles 
 
 Canada HON. H. H. LANG ' , Cobalt, Ont. 
 
 Colorado . E. A. COLBURN Denver 
 
 Delaware . HUGH C. BROWNE Wilmington 
 
 Idaho J. H. RICHARDS Boise 
 
 Illinois . . . . J. A. EDE . La Salle 
 
 Kansas ERASMUS HAWORTH Lawrence 
 
 Minnesota . . .E. L. DeLESTRY St. Paul 
 
 Missouri . . .H. H. GREGG Joplin 
 
 Nevada H. H. BROWN Tonopah 
 
 New Mexico C. T. BROWN Socorro 
 
 New York . . .DR. JAMES DOUGLAS New YorK 
 
 Oregon J . FRANK WATSON Portland 
 
 Ohio C. O. BARTLETT Cleveland 
 
 Oklahoma C. N. GOULD Norman 
 
 Pennsylvania J. V. THOMPSON Uniontown 
 
 Sonora (Mexico) DAVID COLE Cananea 
 
 South Dakota T. J. GRIER Lead 
 
 Texas WM. B. PHILLIPS Austin 
 
 Utah DUNCAN MacVICHlE Salt Lake City 
 
 Virginia E. A. SCHUBERT Roanoke 
 
 Washington MATT BAUMGARTNER Spokane 
 
 West Virginia I. C. WHITE Morgantown 
 
 Wisconsin GEORGE L. JARRETT. . . Platteville 
 
 Wyoming EDWIN HALL Cheyenne 
 
 COMMITTEES. 
 
 GENERAL REVISION OF MINERAL LAND LAWS. 
 
 E. B. KIRBY, Chairman. 
 
 Alaska J. L. STEELE. Nevada D. C. McDONALD. 
 
 Arizona WILL L. CLARK. New Mexico J. J. MURRAY. 
 
 California J. ROSS CLARK. Oregon FREDERICK POWELL. 
 
 Idaho E. M. HEIGHO. Oklahoma DR. C. N. GOULD. 
 
 Montana CORNELIUS KELLY. South Dakota I. A. WEBB. 
 
 Missouri E. B. KIRBY. Utah F. J. HAGENBARTH. 
 
 Wyoming EDWIN HALL. 
 
 SMELTER RATES AND ORE TREATMENT. 
 
 E. A. COLBURN, Denver, Colo., Chairman. 
 
 HARRY L. DAY, Wallace, Idaho. STUART CROASDALE, Denver. 
 
 S. E. BRETHERTON, San Francisco, Cal. 
 
 FEDERAL LEGISLATION. 
 
 JOHN HAYS HAMMOND, New York, Chairman. 
 
 GEO. W. E. DORSEY, Salt Lake, D. W. BRUNTON. Denver, Colo. 
 
 J. H. RICHARDS, Boise, Idaho. GEO. WINGFIELD, Reno, Nev. 
 
 ALASKAN MINING LAWS. 
 
 HENRY R. HARRIMAN, Seattle, Wash., Chairman. 
 J. L. STEELE. Seattle, Wash. M. D. LEEHEY, Seattle, Wash. 
 
 FREIGHT RATES. 
 
 TRACY C. BECKER, Los Angeles, Cal., Chairman. 
 H. S. JOSEPH, Salt Lake, Utah. DUNCAN MacVICHlE, Salt Lake, Utah. 
 
 FINANCE. 
 
 E. A. MONTGOMERY, Los Angeles, Cal., Chairman. 
 
 DAVID KEITH, Salt Lake, Utah. W. F. R. MILLS, Denver, Colo. 
 
 < I K< ). WINGFIELD, Reno, Nev. B. F. BUSH, St. Louis, Mo. 
 
 UNIFORM MINING LAWS. 
 
 AS'. R. INGALLS, New York, N. Y., Chairman. 
 
 IK. .TAS. DOUGLAS, New York. J. R. FINLAY, Goldfield, Nev. 
 
 .1. I'. ('HANNING, New York. J. H. HAMMOND, New York. 
 
 WORKMEN'S COMPENSATION. 
 JOHN H. JONES, Pittsliurg, Pa., Chairman. 
 
 DAVID ROSS, Springfield, IBs. W. R. WOODFORD, Pittsburg, Pa. 
 
 J. W. DAWSON, Charleston, W. Va. THOS. L. LEWIS, Indianapolis, Ind. 
 
 STANDARDIZATION OF ELECTRICAL EQUIPMENT. 
 In Coal Mines 
 
 SAMUEL A. TAYLOR, Pittsburg, Pa., Chairman. 
 
 J. R. BENT, Oglesby, Ills. H. M. WARREN, Scranton, Pa. 
 
 GEO. R. WOOD, Pittsburg, Pa. G. A. SCHREIER, Divernon, Ills. 
 
 G. T. WATSON, Fairmont, W. Va. W. A. THOMAS, Pittsburg, Pa. 
 
 In Metal Mines 
 
 GEN. IRVING HALE, Denver, Colo., Chairman. 
 H. S. SANDS, Denver, Colo. CHAS. A. CHASE, Denver, Colo. 
 
 MINERAL STATISTICS. 
 
 GEO. W. RITER, Salt Lake City. Utah, Chairman. 
 A. W. WARWICK, Denver, Colo. B. N. BLAIR, Joplin, Mo. 
 
OFFICIAL ROSTER, 1912 
 
 OFFICERS. 
 
 SAMUEL A. TAYLOR, D. W. BRUNTON, 
 
 President. 1st Vice-President. 
 
 E. A. MONTGOMERY, CARL SCHOLZ, 
 
 2d Vice-President. 3d Vice-President. 
 
 J. F. CALLBREATH, JR., Secretary. 
 
 DIRECTORS. 
 
 JOHN BERN, E. R. BUCKLEY, 
 
 Salt Lake City, Utah. Chicago, 111. 
 
 SAMUEL A. TAYLOR, CHARLES A. BARLOW, 
 
 Pittsburgh, Pa. Bakersfield, Cal. 
 
 D. W. BRUNTON, A. G. BROWNLEE, 
 
 Denver, Colo. Denver, Colo. 
 
 E. A. MONTGOMERY, JAMES DOUGLAS, 
 
 Los Angeles, Cal. New York City. 
 
 GEORGE WINGFIELD, CARL SCHOLZ, 
 
 Reno, Nev. Chicago, 111. 
 
 L. W. POWELL, HARRY N. TAYLOR, 
 
 Warren, Ariz. Chicago, 111. 
 
 JOHN MAYER, Kansas City, Mo. 
 
 ADVISORY BOARD. 
 
 RICHARD E. SLOAN, D. W. BRUNTON, 
 
 Phoenix, Ariz. Denver, Colo. 
 
 THOS. C. BURKE, W. T. PERKINS, 
 
 Baker City, Ore. Seattle, Wash. 
 
 EDWARD HORSKY, Helena, Mont. 
 
 EXECUTIVE COMMITTEE. 
 
 D. W. BRUNTON, JOHN DERN, 
 
 Denver, Col. Salt Lake City, Utah. 
 
 A. G. BROWNLEE, Denver, Colo. 
 
 *State Vice Presidents and Committees for 1912 will be announced in the 
 January Issue of the Monthly Bulletin. 
 

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D. W. BRUNTON || JOHN DKRN DR. K. K. BUCKLEY E.A.MONTGOMERY 
 
 1st Vice-Pres,, Denver. Duecior, Salt Lak City. * Director, Chicago. _ 2d Vice-Pres., Los Angeles. 
 
 
 A. G. BROWNLEE 
 
 JOHN MAYER 
 Director, Kansas City 
 
 
 GEORGE WINGFIELD 
 I Director. Reno, Nev 
 
 SAMUEL A. TAYLOR 
 
 President of American Mining Congress 
 
 Pittsburgh, Pa. 
 
 LOUIS W.'POWEI. 
 
 wm 
 
 Ct 
 
 DR. JAMES DOUGLAS 
 Director, New York. 
 
 CARL SCUOI.Z 
 
 Vice Pies., Chicagc 
 
 OFFICERS AND DIRECTORS 1912 
 
REPORT OF THE PROCEEDINGS 
 
 OF THE 
 
 Fourteenth Annual Session of the American 
 Mining Congress. 
 
 Chicago, Illinois, October 24-28, 1911. 
 
 TUESDAY, OCTOBER 24, 1911. 
 
 Opening Session. 
 
 2:00 O'clock P. M. 
 
 The Fourteenth Annual Session of the American Mining Congress, 
 held at Chicago, Illinois, October 24-28, 1911, was called to order by 
 Mr. C. M. Moderwell, Chairman of the Local Executive Committee, 
 Tuesday afternoon at 2 o'clock. 
 
 Invocation by the Very Reverend Dean Walter T. Summer. 
 
 MR. MODERWELL: Gentlemen of the American Mining Con- 
 gress: I make my appearance before you today because I happen to 
 be connected with the local arrangements committee. Our work is 
 practically done, except that we want to see to your comfort while 
 you are here, and see that you have your share of pleasure and do your 
 share of the work. 
 
 We all greatly regret the serious accident which prevents Gov- 
 ernor Deneen from being with us but we are glad that he has sent as 
 his personal representative, Dr. H. H. Stock, Professor of Mining En- 
 gineering, University of Illinois, who will now welcome the delegates 
 on behalf of the Governor and the state of Illinois. 
 
 DR. STORK: The position of a substitute speaker is always an 
 unfortunate one, for those who must hear him as well as for the substi- 
 tute. In the present instance the substitution is particularly unfortunate 
 and regrettable as the Governor of Illinois, who was scheduled to wel- 
 come the American Mining Congress to the state, is prevented from being 
 present by illness and injury. 
 
 As most of those present know, about two months ago Governor 
 Deneen broke his leg while attempting to save others from being 
 injured and has since then been confined to the house. He was, how- 
 ever, recovering nicely and confidently expected to address the Con- 
 gress in person until four days ago, when he slipped and again 
 wrenched his leg so severely as to materially increase his period of 
 confinement to the house. He has therefore, delegated me to bid you a 
 most cordial welcome to the state of Illinois and to express his hope that 
 the Chicago session of the American Mining Congress will be the 
 most successful one in its history and one at which measures may be 
 inaugurated that will work for the advancement of the mining industry 
 throughout the world. 
 
 Governor Deneen expected to speak upon recent legislation in 
 Illinois affecting the conservation of life, resources, property and the 
 rights of employer and employe. It is his desire that I outline to the 
 Congress what has been done in Illinois during the past three or four 
 years in attempting to solve some of the problems connected with 
 the coal industry. 
 
10 '-..-. ^ 
 
 Speaking in very general terms the geological conditions in Illinois 
 are similar to those in the other middle west states and not ma- 
 terially different from those in western Pennsylvania, West Virginia 
 and Alabama in so far as they affect the technical problems connected 
 with coal mining. This similarity of natural condition means similar- 
 ity in the mining problems and suggests at once the great desirability 
 of similarity and uniformity as nearly as local conditions will permit, 
 in the legal regulations surrounding mining, so that no one state may 
 be placed at a disadvantage on account of the legal restrictions placed 
 upon mining in that state. 
 
 It is possible that some of the delegates to the Congress do 
 not realize that according to the reports of the geological survey, 
 Illinois ranks third among the mineral producing states. For many 
 years she held second place as a producer of coal and is still a -strong 
 competitor with West Virginia for second place, moreover much of the 
 coal produced in Illinois is utilized within the state and an economic 
 factor of considerable importance. Again Illinois is second in the 
 list of producers of zinc spelter and second in the production of 
 petroleum, and what may surprise many, it ranks third as a producer 
 of pig iron. The iron and steel industry that is rapidly developing 
 around the southern end of Lake Michigan bids fair to make Chicago 
 and its suburbs a second Pittsburgh. These statistical facts are men- 
 tioned, not in a spirit of state-praise nor to draw invidious comparisons 
 with other mining states, but to emphasize the fact that mining prob- 
 lems in Illinois are being studied not only from a theoretical stand- 
 point but the investigations are being carried on in a region where 
 mining is a very important industry and by men who are interested 
 in the subject because of the lives at stake and the capital invested. 
 
 It has been conclusively demonstrated that it is practicable, in 
 Illinois at least, to have a commission composed of parties vitally 
 interested in the industry suggest to the legislature laws that are 
 acceptable to the miner, the operator, and the public. These laws may 
 not be entirely satisfactory to either of the three parties interested 
 but they are acceptable and they should not give rise to the same con- 
 troversies as laws that are proposed by either of the three parties 
 without regard to the wishes of the others. 
 
 Three years ago the Forty-Sixth General Assembly of Illinois had 
 before it some forty separate mining bills, some proposed by the 
 miners, some by the operators, but none % acceptable to both parties; 
 and in consequence the mining committe'es of the senate and house 
 were at a loss to know which bills to accept. Late in the session 
 when it appeared as if all mining legislation would fail miners and 
 operators compromised upon two measures, one providing for the 
 appointment of a commission to investigate mining conditions and to 
 revise the mining code of the state and another providing for the 
 establishment of a Department of Mining Engineering at the State 
 University. These two laws may seem like a meager output for a 
 legislative session, but each represents a basic principle and need in- 
 the mining industry, and I believe those who arranged and agreed 
 to the compromise laid a wiser foundation even than they imagined. 
 The first law recognized the possibility of uniting apparently diamet- 
 rically opposite elements by consultation and conference and the results 
 of two years' work have shown this principle to have been a sound 
 one. % The second law recognized the necessity and value of scientific 
 training and investigation in connection with coal mining, a fact too 
 long overlooked and unrecognized in the United States. 
 
 The Mining Investigation Commission was composed of nine 
 members appointed by the Governor, three .representing the operators, 
 three the United Mine Workers and three the general public, no one 
 of these latter three could be identified or affiliated with the interests 
 of either the mine owners or the coal miners, nor dependent upon the 
 patronage or good will of either one, or be in political life. Governor 
 Deneen appointed as representatives of the miners and operators those 
 
AMERICAN MINING CONGRESS 11 
 
 who were recommended to him by these respective organizations and 
 those representing the general public were nominated jointly by the 
 miners and operators so that the commission was absolutely free 
 from political bias and neither the miners nor the operators could 
 claim that their interests were not fairly represented upon the com- 
 mission as they had entire freedom in the selection of their own 
 representatives and an equal say in the choice of the representative 
 of the general public. The commission first made a compilation and 
 careful study of practically all of the coal mining laws of the United 
 States, Canada and Great Britain, and in its subsequent work constant 
 reference was made to all laws that had been passed, in an effort to 
 combine in the Illinois law the good features of all of these other 
 laws. In addition to the examination of laws from other states, cer- 
 tain investigations were carried on to determine technical data that 
 were not available. As a result of these investigations a number of 
 separate laws covering different phases of the question were unani- 
 mously reported to the legislature and all of these were passed prac- 
 tically as suggested by the commission in so far as they concerned 
 the regulation of the mines, the only changes made being items of 
 administration and not matters affecting the security of life and prop- 
 erty. Time will not permit, nor is this the place to go into great 
 detail concerning these laws, but a few of the leading requirements 
 that indicate an advance over previous legislation may be of interest. 
 
 Immediately after the disaster at Cherry a law was passed re- 
 quiring the installation of fire fighting appliances, telephones, and other 
 signalling devices, providing for a regular fire drill and for the fire- 
 proofing of shafts. A Mine Rescue Station Commission was established 
 and this commission now has three fully equipped stations, one in the 
 northern, one in the central and one in the southern part of the state 
 .where men are always on duty subject to call in case of accident and 
 where men are being trained in the use of oxygen helmets and other 
 fire fighting appliances and in rendering first aid to the injured. 
 
 The complete revision of the mine laws as passed by the forty- 
 seventh session of the legislature fixes standard sizes of black pow- 
 der, limits the number of shots that can be fired, prohibits any inflam- 
 mable structure within two hundred feet of the, head of the shaft, 
 increases the frequency of mine inspection, greatly enlarges and clearly 
 defines the duties of mine inspectors, provides refuge places for the 
 men at the foot of the shaft, requires men to be checked in and out 
 of the mines each day, and in general aims to state clearly and dis- 
 tinctly the duties of all those connected with the mines. 
 
 A separate law regulates the drilling of oil and gas wells and 
 provides for the mapping df the same. Another law provides for the 
 investigation of mining conditions in the state by the State Geological 
 Survey and the Department of Mining Engineering at the State Uni- 
 versity acting in co-operation with the Federal Bureau of Mines. 
 Authority was also given for the establishment of miners' and mechan- 
 ics' institutes throughout the state but failure to provide funds to 
 carry on this work will delay its organization. 
 
 These laws indicate an attitude of progress and a desire to im- 
 prove the conditions under which mining should be carried on in the 
 state in so far as those conditions can be regulated by legislative action. 
 
 The improvements required by these laws are all highly desirable 
 and are suggested by good engineering, but they mean a necessary 
 increase in expenditure- and an added burden to an already heavily bur- 
 dened industry. While many other improvements could undoubtedly 
 be suggested there is a point beyond which improvement cannot be 
 made by legislative action without becoming confiscatory of the prop- 
 erty. In the opinion of many, that point has been nearly reached in 
 some states in the economic side of coal mining is amply provided 
 for elsewhere on the program but several paragraphs from the report 
 of the mining investigation commission apply very aptly at this 
 
12 OFFICIAL PROCEEDINGS 
 
 point not only to conditions in Illinois but to many other states as 
 well and I shall therefore, quote from that report, which says, 
 
 "The number of shipping mines in Illinois is greatly in excess of 
 the number required to supply the maximum demand for Illinois coal. 
 This has resulted in the actual annual average running time of all 
 mines operating in Illinois for several years past being materially less 
 than two hundred days per year. With a more reasonable adjustment 
 of mining capacity to the greatest possible maximum demand (which 
 is entirely feasible in so far as the commercial or physical considera- 
 tions are concerned) it should be possible for the mines to be operated 
 an average of at least two hundred and fifty days per year. The result 
 of this condition is that all of the mine employes in Illinois (now about 
 seventy thousand) are idle on an average at least sixty days per year 
 more than need be if there were a reasonable adjustment of mining 
 capacity to the fullest trade requirements. 
 
 "Stated in another way, the entire force of mine employes is idle 
 one-fourth of the time they should be able to work after making all 
 allowance for unavoidable idle time. This has the same effect as 
 though one-fourth of them were idle all the time. In other words, 
 fifteen thousand men, in effect, are idle throughout the entire year, but 
 held in the industry by the attraction of the excessive number of mines 
 annually in operation. This is an enormous economic waste. If pro- 
 ductive capacity were reasonably adjusted to the fullest requirements, 
 it would still be possiblbe to spare fifteen thousand men from the 
 industry to engage in other occupations where their labor might be 
 needed. This is a severe loss to mine employes. Even when piecework 
 or day wages are high, annual wages are low. 
 
 "It is also a fact that in mines idle a great part of tire time a greater 
 proportion of the outlay for labor is wasted in non-productive work 
 during idleness instead of being applied to productive work in getting 
 out coal. It is a further fact also, by reason of the frequency of 
 periods of long idleness, that coal which might be mined under 
 steadier work is lost by reason of caving roof and other unavoidable 
 conditions arising out of idleness." 
 
 The advisability of having more uniform mining legislation in 
 states competing in the same market was never more urgent than^ at 
 the present time, especially in order that the burdens of production 
 may be equally borne. Governor Deneen recognizes this condition and 
 in the personal invitation which he extended to the executives of the 
 coal producing states than Illinois will enact legislation looking to 
 he says, "It is almost certain that within the next few years other 
 coal producing states than Illmois will enact legislation looking to 
 the better operation of the industry. It is very important that these 
 enactments, so far as practicable, tend toward uniformity. To produce 
 results in that direction co-operative effort is necessary. A rare op- 
 portunity now offers, it seems to me, for a conference among ourselves 
 and with these gentlemen who are deeply interested in this subject 
 and have given it much consideration, and who can be most helpful 
 in securing the adoption of systematic co-operation, for the purpose 
 of arriving at some sound conclusions that will assist us in the formu- 
 lation of a general plan for future legislation in our respective states." 
 
 While each state must of course, suit its laws to its local condi- 
 tions, there are certainly broad general principles affecting the entire 
 coal mining industry that can be the- basis of legislation for each State 
 so that the mines in each state may enter the competitive race more 
 nearly on an equal footing than they do at the present time. 
 
 Next in importance to more uniformity in legislation is a cam- 
 paign of education of the general public m regard to the coal industry. 
 As is the case in every other industry the pre-eminent financial suc- 
 cesses are the gage by which the general public measures the industry 
 and it knows nothing of the many who have fallen by the wayside nor 
 of the average conditions prevailing in the industry as a whole. 
 
AMERICAN MINING CONGRESS 13 
 
 An investigation and publication broadcast of the amount of cap- 
 ital invested in the industry, the cost of mining and marketing coal, 
 in fact a systematic investigation by a commission or committee 
 should do much to remove the prejudice that many now have against 
 the coal operator and miner and should give a basis for the settlement 
 of disputes between employer and employe for which there is now 
 very little non-partisan data. 
 
 MR. MODERWELL: It now becomes my pleasure to introduce 
 to you Mr. John Bern, the President of the American Mining Congress 
 and to turn over to him the gavel of this meeting. (Applause.) 
 
 THE PRESIDENT: Gentleman and Ladies of the Convention: 
 It is indeed very gratifying to me as your presiding officer to see such 
 a large representative delegation here this afternoon. I have attended 
 a good many of our congresses in the past, but it is usual that our 
 first session is rather sparsely attended,' owing to the fact that many 
 delegates come a great distance. I have received several telegrams 
 today from my own state, saying that the delegates are en route, but 
 have not yet arrived, and will not until tomorrow. 
 
 In behalf of the Congress I want to thank Dr. Stock, the repre- 
 sentative of the Governor, for his cordial address of welcome. My 
 response shall not be made at this time, as I shall speak to the con- 
 vention somewhat later. As you have noticed from our program, a 
 great many members of the Congress are listed for response. We 
 have had at various conventions representatives from other govern- 
 ments, both from the European governments and from South America. 
 We have with us today a representative of the great empire of Britain, 
 whom we bid welcome to this convention. I have the pleasure of 
 introducing to you His Britannic Majesty's Consul General, Mr. Horace 
 Nugent, who will now address you. 
 
 MR. NUGENT: Mr. Chairman and Ladies and Gentlemen: Per- 
 mit me as representing His Britannic Majesty's Government to express 
 to you my hearty appreciation of the cordial words spoken by Dr. 
 Stock to the delegates attending the convention from beyond the bor- 
 ders of your great state. It had been hoped that the British ambas- 
 sador at Washington would be able to favor us with his presence, 
 and to address the meeting, but Mr. Bryce, to his great personal regret, 
 fqund that the exigencies of his official work and some previous engage- 
 ment would prevent his coming to Chicago at this time. Now, gentle- 
 men, you are all aware that Great Britain has been singularly blessed 
 in mineral resources; in fact, it is merely to state a truism to say to 
 you that whatever success has attended our commercial and industrial 
 enterprises has been very largely due to this fact. Therefore, under 
 these circumstances it is not to be wondered at that we, both as a 
 government and as a people take a profound interest in all concerning 
 the mining industry, and not only from an economical point of view, 
 but also from the side of the welfare of the miners. During recent 
 years a large amount of legislation has been enacted in Great Britain, 
 whereby we trust and hope many of the more satisfactory problems 
 concerning the welfare of the mining community may be partly solved. 
 Allusion has already been made to some of these enactments, and I 
 have no doubt that during the sessions of the Congress further allu- 
 sions will also be made to them. It may possibly be that you may 
 benefit to some extent by our experience in this respect, although no 
 doubt the conditions obtaining in the United States are in many 
 respects very different from those in the United Kingdom. On the 
 other hand it is perfectly certain to say that we have much to learn 
 from you, and I therefore look forward with great personal satisfac- 
 tion to attending the sessions of the Congress and trust at their close 
 to transmit to my government a report of the proceedings, which 
 proceedings I n'eed hardly add are, I am convinced, sure to be fraught 
 with much interest and benefit. (Applause.) 
 
 THE PRESIDENT: Gentlemen, the American field of mining 
 has offered many opportunities to our fellow citizens of the United 
 
14 OFFICIAL PROCEEDINGS 
 
 States, but a great deal of money is often required to develop and 
 open up the treasures of the earth. Oftentimes our American pros- 
 pector or mine owner who has not the requisite amount of money to 
 open his mine and failing to interest sufficient capital at home, has 
 gone across the pond to interest the people of Great Britain and 
 France, and a great deal of their money is being invested all over our 
 western field. Some of our very best mines are controlled by the 
 people of England and of France. Their engineers rank high with 
 our splendid force of engineers in the United States. They are always 
 keenly looking after the interests of the people of their own country, 
 and when those governments send representative men to our con- 
 ventions to see what our engineers and mining men have to say with 
 reference to their particular field, they are keen to learn and to ob- 
 serve and to be able to report to their respective governments. We 
 have with us today a representative of the French government, and 
 it is my pleasure now to introduce to you Monsieur Jean De Pulligny, 
 Director of the French Mission of Engineers to the United States. 
 
 MONSIEUR DE PULLIGNY: Mr. President, Gentlemen: It 
 is both a great honor and a sincere pleasure to address such an 
 audience as is now before me, which includes most eminent repre- 
 sentatives of nations, states and of the mining industry. It has been 
 asked that I should speak a few words in behalf of French engineers 
 and of the French secretary of state for public works whose dele- 
 gate I am this evening, but it is with great diffidence that I have 
 accepted the honor bestowed upon me. 
 
 Indeed, I am fully alive to my own want of experience as an 
 English speaker, and I cannot even claim your sympathy as a miner, 
 for I belong to that branch of engineering connected with public 
 works in general and with the building of ports in particular. 
 
 Nevertheless, thanking very heartily the officers of the Congress 
 for their confidence, I shall take up daringly the pleasant burden which 
 they have so graciously laid at my feet and try to express in a few 
 words what may be the principal ideas of an old-fashioned continental 
 man about the vital problems put under your consideration. 
 
 A greater safety for miners, more complete recovery of the coal 
 and better methods of ore reduction, for the cost of all that, who shall 
 pay the bill? What must the government do and what must it not do? 
 Such are, if I am not mistaken, the fundamental questions which the 
 mining men of America are facing on their path. 
 
 These problems we have also found before us in the Old World, 
 and long ago. I do not only speak of the French mining men, but 
 also of the German, and of our English cousins, which have done 
 large gallery work like good moles, and gathered a fair experience 
 of metal and coal mining. I say that we have met these problems and 
 I can add that we have worked out appropriated solutions appro- 
 priated to our circumstances, which are vastly different from yours 
 certainly, but, all the same, I think that our work may be of some 
 interest to you. 
 
 I feel certain that you have already begun studying it and that 
 you will keep on that study. 
 
 The inquiries that private undertakings have, up till now, started 
 separately, you will now work out methodically and with the powerful 
 resources supplied by co-operation. 
 
 Your Bureau of Mines will verify and continue the theories and 
 experiments of the French engineers, from Berthelot to Vieille, in- 
 ventor of the smokeless gunpowder, on temperatures of ignition and 
 safety 'explosives; your Bureau of Mines will verify and continue the 
 experiment of my comrade, Engineer Taffanel, who has in charge the 
 experimental gallery at Lievin, Pas de Calais, where he studies the 
 spreading of explosions in coal dust and the sudden stoppage of such 
 spreading by automatic showers of shale dust. 
 
 In regard to miners' safety, you will find ample and careful regu- 
 lation- in our laws. It has always been designed in accordance with 
 
AMERICAN MINING CONGRESS 15 
 
 the mine owners and its working is supervised by delegates of the 
 workmen themselves, so that safety is not only assured, but confidence 
 is won. And I may say that the practicability of this scheme is firmly 
 demonstrated by long years of smooth and peaceful working. 
 
 On all these points your Bureau of Mines will gather most useful 
 and complete information, including facts relating to the important 
 subject of the hook-worm disease from our "Comite des Houilleres," 
 which is a private board maintained by the French mine owners and 
 from our public "Board of Mines," administered by an eminent body 
 of Government engineers who enforce the compliance with safety regu- 
 lations and the observance of proprietary rights of^the state, 
 
 Many from this body of engineers have been' authorized by the 
 Government to enter the service of mining companies and practically 
 most of these place such engineers at the head of their undertakings. 
 
 Such seem to be, gentlemen, the principal sources of practical 
 knowledge open to you: Experience of the Old World, properly 
 adapted to widely different conditions, and also new investigations 
 conducted by the Bureau of Mines in your experiment station or in 
 the mines themselves. 
 
 When the conclusions resulting from long, careful and unpreju- 
 diced studies shall be laid before the government and the public at 
 large, showing a just consideration of tfie coal production as a private 
 business as well as a public function, it is impossible that your 
 economic necessities should be misunderstood any longer. 
 
 Especially in this country the economic necessities force their 
 own consideration before any others, and with this fact we need not 
 be impatient, for it is only the assertion that a man must first secure 
 the means of living before he can do anything else. 
 
 Perhaps you must have patience and wait a little before you can 
 attract due public attention to the mining interests. 
 
 There are here many more questions clamoring for that attention 
 than can promptly receive it, and the life of the American nation is so 
 full of things needing to be done that it is impossible they should all 
 be taken up and disposed of in the most desirable order. 
 
 Now, gentlemen, I will no longer trespass upon your time. There 
 is, however, one thing that I am still bid to do. It is to apologize for 
 the smallness. of the offering which I bring you this afternoon, should 
 you test it for quality or even for quantity. But this last defect you 
 will perhaps easily excuse, as I have heard from wise people that a 
 great deal of excellent advice is somewhat worse than wasted by being 
 supplied, even to eminent gentlemen, in too great quantities or under 
 inappropriate circumstances. 
 
 Therefore I will say no more, except to return my sincerest 
 thanks to one and all of the present members for the honor that has 
 been bestowed upon myself. 
 
 I also wish to congratulate you most heartily for having wisely 
 understood that only by co-operation can you or any set of men hope 
 to exert the full and legitimate influence of the large interests which 
 they represent. 
 
 And 'keeping the best for the last, .1 feel happy to express the 
 hope that this session of the American Mining Congress may, as it 
 has been said, open a new and prosperious era to the mining industry 
 of the United States, the largest of civilized lands, the biggest of 
 civilized nations! (Applause.) 
 
 MR. HORACE J. STEVENS, Michigan: The gentleman from 
 France has apologized for the scantiness of his contribution, and I think 
 in testimony of the appreciation of this gathering it might be said that 
 we thank him most heartily, not for the scantiness, but for the value, 
 und we especially appreciate this contribution as coming from the con- 
 stituted representative of our first and earliest friend among the 
 nations of the world, the Republic of France. (Applause.) 
 
 THE PRESIDENT: We have a distinguished gentleman with us 
 representing Bolivia, The investment of- the capital of the United 
 
16 OFFICIAL PROCEEDINGS 
 
 States has been more or less limited as yet in that great southland, but 
 with the completion .of the Panama canal, it is only a question _of a 
 very limited time when American capital will be invested extensively 
 in the southern republics, and their large treasure vaults opened for 
 the benefit of the entire world. I have the pleasure to introduce to 
 you Mr. Frederick W. Harnwell, Bolivian Consul. 
 
 MR. HARNWELL: Mr. Chairman, and Gentlemen of the Con- 
 gress: I was asked by the Bolivian minister to be present at the 
 deliberations of this Congress, with the idea that Bolivia rtlight profit 
 largely by the. Wisdom of this convention, and at the same time 
 i .was also asked by ybitr honorable secretary to respond to an address 
 
 f Welcome. I told him at the time that being a native of the United 
 tates I was quite unfamiliar with mining conditions in Bolivia aild 
 felt my inexperience and lack of knowledge, and that my feelings 
 prompted me to. remain silent. Up to the time 1 came here a few mo- 
 ments ago I thought my reason for remaining silent had been satis- 
 factory to your secretary, but it seems that it was not. I attempted 
 to decline because of my lack of familiarity, but in that declination 1 
 was keeping to myself what the Bolivian minister said in his letter, 
 that he felt a very keen appreciation that this Congress had seen fit 
 to ask Bolivia to be present and take part in the deliberations. Prob- 
 ably many of you know much more about the mineral wealth of 
 Bolivia than I do, merely a consul in Chicago, but I know that the 
 wealth of Bolivia is in her mines, and that she is enormously rich in 
 mineral deposits. The appreciation of the minister at Washington 
 is very well placed, because I hope after the adjournment of the Con- 
 gress to be able to report to him and to furnish him with the delib- 
 erations which may aid in giving to Bolivia the experience and the 
 knowledge that has come to this wise body of men along exactly the 
 line of Bolivia's greatest resource and wealth, and believe the develop- 
 ment of our mineral deposits will result not only in increasing otir 
 country's wealth, but I have no doubt it will increase the wealth of 
 many that are connected with this Congress. In my opinion the expe- 
 rience of men operating mines in the United States along that great 
 central backbone of the United States, which is Hkewise the backbone 
 of the South American continent, has been obtained where the condi- 
 tions must be similar, the obstacles to overcome identical, so that your 
 experience is of great value and results can be obtained by you through 
 your learning and experience quicker -in Bolivia than by any similar 
 body of men. Gentlemen, I simply want to say in conclusion that not 
 only do I appreciate the honor conferred upon me as representing 
 Bolivia to express .my appreciation, but in that the paramount expres- 
 sion of appreciation is that of the Bolivian Government. (Applause.) 
 
 THE PRESIDENT: Gentl'emen, when we western metallurgical 
 miners speak of the different mines either of gold, silver or lead, being 
 mined in the innumerable camps in Colorado, New Mexico, Arizona, 
 California, Utah, Idaho, Nevada, Oregon, Washington, and up to the 
 northern boundary of the country we immediately think of this coun- 
 try as the most prolific in pouring out its wealth from the mother earth 
 We Americans under our present apex law lay claim to extra lateral 
 rights as we have the property over there; we even possibly go so 
 far as to claim the apex right in Canada and go beyond the line. Of 
 course, their law is according to vertical planes, and they will not 
 permit us to follow the apex into their ground. When AVC are unable 
 to follow the apex we will go over and acquire it in another way, but 
 while there is a boundary line between the two nations, both belong 
 to the English speaking race, and when you get over there you hardly 
 know when you have crossed- the line, for pur interests are identical 
 and our objects mutual. We have today with us a representative of 
 the Canadian Government, and I take pleasure in introducing to you 
 Mr. Thomas W. Gibson, Deputy Minister of Mines, Toronto, Canada. 
 
 MR. GIBSON: Mr. President, and Ladies and Gentlemen of the 
 American Mining Congress: I feel honored in being asked to say a 
 
AMERICAN MINING CONGRESS \1 
 
 word in behalf of my native country, and I wish at the outset to ex- 
 press on behalf of the Canadian delegation to this Congress our appre- 
 ciation and thanks for the very cordial welcome which has been so 
 heartily expressed by you, Sir, and by Dr. Stock. This Congress hag 
 met for the consideration of weighty and important problems, some 
 of which are peculiarly connected with the conditions in the United 
 States, and some of which affect mining and the mining industry 
 wherever situated or carried on, and I trust that on behalf of Canada, 
 and more particularly on behalf of the Province of Ontario because 
 I come to you accredited by the government of the Province of On- 
 tario rather than by the government of the Dominion of Canada I 
 shall be able to car-ry away from the deliberations and discussions of 
 this Congress much information which will be useful and beneficial to 
 my own land. Broadly speaking, the conditions under which we in 
 Canada live and labor are the conditions under which you live and 
 labor. The mineral resources of Canada are many and varied. We have 
 practically every metal in commercial quantities except perhaps tin, 
 and We have very many of the. non-metallic and useful substances. 
 We have coal in Nova Scotia on the Atlantic coast, and we have coal 
 in British Columbia on the Pacific coast; we have it in Alberta and 
 Saskatchewan, and much of it is of excellent coking quality. We 
 have iron, the other pillar upon which rests the fabric of modern 
 industrialism, in all the provinces in considerable quantities, much of 
 it yet undeveloped. Of the precious metals we have gold in the 
 Yukon, in British Columbia, in Nova Scotia, and in Ontario. In On- 
 tario the latest discoveries of gold in what is known as the Porcupine 
 district have given rise to a very great deal of interest. The gold 
 there is found in veins of quartz, and some of the surface showings 
 have been spectacular to a degree. That district is not yet producing 
 bullion, but doubtless it would have been ere now had it not been for 
 the disastrous forest fires which swept that country in the month of 
 July, and which destroyed the works at some of the most important 
 and advanced mines. 
 
 In silver Canada stands third among the silver producing com- 
 munities of the world; Mexico is first, the United States is second, and 
 Canada is third. Mexico produces 33 per cent of the world's output 
 of silver, the United States 26 per cent, and Canada 15 per cent. This 
 production of silver is largely due to the phenomenal richness of the 
 silver mines at Cobalt. These mines were opened in 1904, beginning 
 with a production in that year of about 2-50,000 ounces, and have steadily 
 increased in output until in 1910 the production was about 30,000,000 
 ounces. For the present year the production will be considerably 
 greater, so that from the opening of those mines to the end of 1911, 
 we will say, the production of silver from that camp will not have been 
 less than 125,000,000 ounces. I have no doubt that many of you are 
 familiar with the mines of Cobalt, as they have drawn the attention 
 especially of silver miners from all over the world. Indeed, the camp 
 is one of the mining phenomena of the 20th century. 
 
 In copper we have large resources in British Columbia and in 
 Ontario. In British Columbia the copper is associated largely with 
 gold; in Ontario with nickel; and the nickel-copper mines of Sudbury 
 are the chief source of copper produced by the province of Ontario. 
 Copper pyrite occurs in large deposits in the province of Quebec. 
 The nickel mines of Sudbury are the most important in the world, 
 and now produce from 60 to 70 per cent of the entire supply of nickel 
 required by the commercial and industrial world. The lead and zinc 
 resources of British Columbia are extensive. In the non metallic sub- 
 stances Ontario and Quebec have large deposits of mica of a very 
 high quality. This amber mica, so-called, is nuted for its flexibility 
 and its resistance to electrical currents, and is therefore in great demand 
 by the manufacturers of electrical apparatus. Quebec yields the best 
 asbestos in the world, and supplies the markets of America. We have 
 large deposits of iron pyrites, used in the manufacture of sulphuric 
 
18 OFFICIAL PROCEEDINGS 
 
 acid. We have probably the largest" deposits of corundum known. 
 Corundum, as you are aware, is used as an abrasive; it is the active 
 principal in emery. We have graphite; we have talc and feldspar and 
 gypsum and phosphate of lime; we have arsenic in quantities sufficient 
 to poison the whole people of the United States, Mr. President, if 
 we desired to enter upon a campaign of that kind, and a little left to 
 attend to our own people. We have petroleum and natural gas and 
 salt. In fact, the mineral industry of Canada, along with the other 
 primary industries of agriculture and lumbering, forms the main stay 
 of the social fabric so far as its material and industrial side is concerned. 
 
 We have before us many problems in Canada. The United States 
 has been longer in business than we have. It started earlier, and it 
 has arrived at a more advanced stage in its national history, but we 
 believe, Mr. President, that the 20th century is Canada's century. We 
 have within the borders of our land vast areas of agricultural soil 
 second to none in the world. We have great forests; we have prac- 
 tically inexhaustible mineral wealth, and we have a people whose moral, 
 mental and physical characteristics place them on a level with any 
 other nation in the world. 
 
 Having these raw materials then out- of which to form a nation, 
 we look, not only with hope but with confidence, to pur future. We 
 purpose to work out upon our side of the boundary line many of the 
 same problems that the United States has worked upon, and some of 
 which it has solved on the southern side of the line. We desire to 
 emulate, your successes. We desire to profit by your mistakes. If we 
 can learn anything from the experience of. the past or from the observa- 
 tion of the present, we can learn it .in just such meetings and such 
 congresses as this, where are brought together the experience and the 
 knowledge and wisdom of men engaged in a practical industry such 
 as mining. 
 
 _ Sir, standing here as I do, I am conscious that though I am on 
 foreign land, I am not in the midst of an unfriendly people. The 
 people on both sides of the line speak the same language, they think 
 the same thoughts, they are engaged in the same occupations, and we 
 in Canada hope that in working out the destinies which lie before us 
 as a country we shall do so in friendly and harmonious relations with 
 the great people to the south of us. We have had political questions of 
 recent days which I have no doubt have given rise to a searching of 
 heart on this side of the line, as well as on our side of the line, one 
 of them being the question of reciprocity in the exchange of natural 
 products. This was approved by the Congress of the United States, 
 but was rejected by the people of Canada. Now that rejection, I ven- 
 ture to say, was not due to any unfriendly feeling or want of regard 
 for the people of the United States. Notwithstanding the apparent 
 want of harmony, so far as that question is concerned, I believe that 
 underlying all these surface conditions there is a great body of amity 
 and friendliness common to both sides of the line. (Applause.) And 
 it is under such conditions and with a spirit of that kind prevailing with 
 us, and I am sure prevailing with you, that we desire to carry on the 
 work of developing the mining, the agricultural, the lumbering and the 
 other industries in which our people are engaged. Mr. President 
 I thank you very heartily for the cordial attention which this assembly 
 has given me, and on behalf of the Canadian delegation I express my 
 gratitude for the way in which we have been received. (Applause.) 
 
 THE PRESIDENT: The population of Alaska is not very great, 
 not a great many of our people of the different States have traveled 
 in that far northern country, the developments so far are very limited, 
 and yet perhaps there has been more said and Avritten in our papers 
 and magazines the last few years about Alaska than of any other state 
 in the Union, and it is fortunate in a way that Alaska is on the top of 
 the list with reference to responses by the delegates or representatives 
 from the different states and territories. I now have the pleasure to 
 introduce to this convention Mr. George E. Baldwin, of Valdez, Alaska 
 
AMERICAN MINING CONGRESS 19 
 
 MR. BALDWIN: Mr. Chairman and Ladies and Gentlemen: At 
 some future time during the deliberations of the American Mining Con- 
 gress, I am scheduled to make a talk on Alaskan subjects. This after- 
 noon I can only express to you my thanks and my appreciation, not 
 only for myself, but for the rest of the Alaskans who are here, of 
 having the pleasure of meeting with you. I don't care to take up any 
 more time just now, but shall ask your attention and consideration to 
 what we shall have to say when the Alaskan problems are discussed 
 here before this meeting, because we in Alaska loolc with great hope 
 and expectation for good returns from the deliberations of this Con- 
 gress, knowing that you are a friendly people to us and having been 
 so in the past I am satisfied you will be in the future. 
 
 THE PRESIDENT: We will now hear from Mr. A. W. Estes, 
 Little Rock. 
 
 PROF. A. H. PURDUE, ARKANSAS: Mr. Estes is not present, 
 but the Honorable Ransom Gulley, of Little Rock, has been conscripted 
 to fill his place. 
 
 THE PRESIDENT: We will hear from Mr. Gulley. 
 
 MR. GULLEY: Ladies and Gentlemen: Our President says 
 Arkansas. By solemn legislative act we are Arkansas (saw). (Laugh- 
 ter.) My friend, Professor Purdue, of the University of Arkansas, has 
 said that L was conscripted. I was a confederate soldier four years, but 
 I was a volunteer. I have never been conscripted in my life. 
 
 As I am expected to respond to the address of welcome, I want 
 to say to you that we thank you from our very hearts for the cordiality, 
 for the handshake, for the smile that has been given us on every hand, 
 because we feel that we are at home in Chicago. (Applause.) The 
 Queen of Sheba said after she. had visited King Solomon that half had 
 not been told her. The half of this Mining Congress had not been 
 told me before I came here. I want to say, and my very heart inspires 
 the thought, I want to say a word of friendly greeting to my neighbor 
 over in Canada. Notwithstanding your, rejection of the doctrine of 
 reciprocity, we speak one language and I endorse your sentiments 
 and I want to tell you that we love you and I want to say to my Eng- 
 lish brother today that I always did love my mother. England was 
 the mother of this country. We have gotten a little too large for the 
 old lady to help us. Maybe she let us alone too long. I want to say 
 to my brother from France the first speech of my life, the first dec- 
 lamation of my life wasvdelivered in a log school house in North Caro- 
 lina, and it was a eulqgy upon LaFayette. His name .ever has been 
 a household word in all this country. (Applause.) To my brother down 
 here in Bolivia, South America, I feel that we are about half cousins. 
 I am from the southern part of the United States. But, my friends, 
 I want to say .another thing, there is no North, there is no South, nor 
 East, nor West in these United States since the Confederate general, 
 Joe Wheeler led the boys in blue and the boys in gray up San Juan 
 Hill and captured Santiago beneath the American flag. There is no 
 North and no South and no East and no West. . (Applause.) I feel 
 just as much at home here as I do in Little Rock. I am glad to be 
 here and thank you for listening so attentively, although my friend, the 
 Professor, said I am conscripted. - 1 am a volunteer. (Applause.) 
 
 THE PRESIDENT: I shall next call upon Mr. W. N. Searcy, 
 Silverton, Colorado, to respond. 
 
 MR. SEARCY: Gentlemen of the American Mining Congress: 
 I desire to express to you the deepest and most heartfelt gratitude on 
 behalf of the people of Colorado for the very gracious reception you 
 are giving us. Perhaps I feel this greeting a little more because my 
 old home in my boyhood, days was south .of Springfield, in the state 
 of Illinois. I feel that perhaps many of these delegates who come from 
 the West, whether from Colorado, Arizona, California or Nevada, I 
 feel that many of them in journeying from the mountains across the 
 plains to the city of Chicago must feel that they are coming home. 
 You can .hardly pass through a state in traveling from the mountains 
 
20 OFFICIAL PROCEEDINGS 
 
 to the East but what some western man will remark that here his 
 boyhood days were passed. That leads me to remark that the relation 
 between the West and the East is after all that of child toward parent 
 and parent toward child. The sons of the eastern homes have gone to 
 Colorado, to Nevada and to California, to build up those common- 
 wealths, to seek their fortunes, and to undertake to build states modeled 
 after your commonwealth of Illinois. As has been so forcibly and 
 eloquently stated, I hope that this feeling arising out of mutual interest 
 may be such that in this mining convention and in all the conventions 
 this organization shall hold in the future, there may be no East and 
 no West and no North and no South. 
 
 I believe that the city of Chicago has outgrown not only the 
 expectations of the western people who left here years ago and are now 
 returning to visit you. It has not only outgrown their expectations, 
 but I am not sure 'but that it has outgrown even the conception of its 
 founders; destined some day I believe to become the greatest city on 
 the American continent and the greatest city in the world. I desire 
 to make the suggestion that I believe the city of Chicago is too modest. 
 I believe it would not be immodest on the part of this great city now 
 if it would undertake to put signs on its street corners so that strangers 
 undertaking to pass along the main thoroughfares may read as they 
 run, for we have got to run when we cross the streets of Chicago. 
 (Applause.) 
 
 On behalf of the people of Colorado we not only thank you but 
 like the Missourians in their kind and courteous hospitality, we would 
 like to say to you that now you have entertained us and are enter- 
 taining us, and we want "you-all" to come sometime and see us. Col- 
 orado cannot offer such a great city in which to entertain you, such 
 wondrous sky scrapers; it cannot offer to you such sights of immense 
 traffic and industry, but I- believe it can offer to you the most heartfelt 
 greeting and hospitality which will at least emulate the gracious recep- 
 tion you are giving to us. Colorado is preparing for you, Mr. Chair- 
 man, preparing for the people of Chicago, and the delegates of this 
 convention to visit our state and make themselves at home. I shall 
 not undertake to tell you the mineral wealth of Colorado, perhaps you 
 know that as well as I, nor its wonderful agricultural wealth, but I do 
 desire to tell you now that we are preparing a highway such as has 
 not been seen in our country before, a thousand miles in length. We 
 are extending from the city of Denver to all those cities at the foot 
 of the mountains, then across the San Luis valley and over the great 
 continental divide to Durango, then from Durango up to the summit 
 of the beautiful city of Silverton, and then down the Ouray valley, 
 and down to Grand Junction, back again up the Eagle River, and 
 across the continental divide and down to the city of Denver. In 
 undertaking to travel on this circle you will pass the healing springs 
 of Colorado at Manitou, the Wagon Wheel Gap, Pagosa Springs, Glen- 
 wood Springs, the Waters of the Ouray, Idaho Springs, and we can 
 only hope that as you journey over this highway through the state 
 of Colorado every one of your ills may be healed, and you may come 
 home happy and content. Beyond these healing waters you will be 
 able to camp on the Rio Grande, catch trout, fry them under the 
 spruce trees, and you will be able to gather the apples at Durango 
 and Grand Junction and to eat peaches at Paonia, melons at Rocky 
 Ford, and all the way around this circle you will pass through scenic 
 grandeur such as the painter cannot reproduce nor the photographer 
 bring back to you. One reason for responding this way to the very 
 cordial reception which has been given to us, is to call your attention 
 to the fact that in visiting our state, the people of Chicago will receive 
 back some of this hospitality, and find means of escaping from the 
 summer heat for up in the mountain towns summer heat is unknown. 
 At the very time our newspapers report deaths in August and July, 
 because of the oppressive temperature in the East, perhaps the frost 
 will be glistening on the blades of grass along the streams. Now I 
 
AMERICAN MINING CONGRESS 21 
 
 speak of these things, not to boast of my beloved state, but as an 
 answer to the hospitality which has been given to us, and which has 
 made us feel at home, and I speak of it in the sense of saying to these 
 people who are so kindly entertaining us to express our appreciation 
 of this wonderful hospitality and to say that now that we have visited 
 you we will try to respond when you come to visit us. (Applause.) 
 
 THE PRESIDENT: A great many of you perhaps may^think 
 that it is rather singular to ask a representative of the state of Kansas 
 to attend the Mining Congress, Kansas being considered strictly an 
 agricultural and prairie state. But Kansas has great coal fields, zinc, 
 lead, and other minerals, and in the true sense of the word is quite a 
 mining country. We have a representative here from that state, and 
 I am sure we will be pleased to hear from him, Dr. Erasmus Haworth, 
 state geologist of Kansas. 
 
 DR. HAWORTH: Mr. President and Gentlemen. My heart is full 
 of one phase of the subject which I hope properly belongs to this con- 
 gress, and with your permission I am going to talk about four or five 
 minutes on that subject. From time immemorial, a hundred years at 
 any rate that I can remember, and I don't know how much longer, the 
 mining school teachers of the United States have succeeded in getting 
 this Congress to pass a resolution at every one of the sessions in favor 
 of Federal aid to mining schools. That is as far as that has ever gone, 
 and I have concluded that one of the reasons why it was so easyjx^get 
 such a resolution through the various sessions of this Congress is 
 because so little attention was paid to it, not enough interest even to 
 vote "No." We have now succeeded in part in accomplishing one of 
 the objects of the organization of this Congress in the way of Federal 
 recognition. All of us remember in the early days, ten, eleven or 
 twelve years ago, one of the strongest efforts put forth by practically 
 all the members, was along the line of having a department of mining 
 organized by the government with a member in the cabinet of the Pres- 
 ident of the United States. This has been accomplished in part, insofar 
 as we have organized a Bureau of Mines, and Federal recognition to 
 that extent has been given. I believe that the future welfare and pros- 
 perity of that Bureau of Mining, which I most earnestly hope they 
 develop until ultimately it becomes a department of mining (applause), 
 will be fostered more by the establishment of a direct connection be- 
 tween the government of the United States and the various institutions 
 of learning which may be scattered here and there throughout the 
 United States than by any other one individual agency. 
 
 I have given a great deal of thought to this subject. I have tried 
 to draw a comparison in history, and we have a fairly good parallel, 
 it seems to me, in the great department of agriculture with the almost 
 innumerable agricultural schools here and there throughout the United 
 States. Now, it is common knowledge to every one that early in the 
 last half of the century which has just closed, Federal recognition of 
 those agricultural colleges was given, and all of you today I presume 
 will agree with me when I say, it seems to be a true statement, that 
 the stability that has been given to that cause through these various 
 educational institutions has been the most powerful of any one factor 
 in bringing about the great recognition of the agricultural interests of 
 America that we have today. 
 
 Only a few weeks ago in Kansas City was held the annual session 
 of our great conservation congress. The president was the editor of 
 of an agricultural paper, and the speakers, almost without exception, 
 were men connected with the agricultural industries of America. In 
 the session from beginning to end, those taking part in the discussion 
 were representatives of these institutions, and finally we were told that 
 there has been organized recently a national bureau called the soil fertilty 
 bureau, which has among its membership all of the great men of 
 America, and we understand the aim of this bureau is to foster agricul- 
 ture. Its purpose is simply this, to put a government official, paid by 
 the government of the United States, into every county in all the broad 
 
22 OFFICIAL PROCEEDINGS 
 
 domains of the United States of America. Now, the agriculturist and 
 his associates have been discussing this subject, and they have been 
 preaching it in season and out of season, and more than that, they have 
 been acting upon it. They have been working with the greatest zeal 
 that any set of men have ever worked within the United States, so far 
 as I am able of judging, in order to get the government of the United 
 States to do something to recognize them and help them give a million 
 dollars today, five million dollars tomorrow, and twenty million dollars 
 next year, and so on. 
 
 The time has come, gentlemen, practically right now, when a large 
 proportion of the members of the congress of the United States simply 
 go down to Washington feeling that they must vote for a larger appro- 
 priation for the agricultural department than was voted the year before 
 because the people want it. 
 
 On the other hand, the gentlemen interested in the mining industry 
 have been doing practically nothing in that line. We stagnated, so to 
 speak. All of you know that in order to get any public recognition we 
 have got to be stirring around and doing something. I want in addition 
 to make the statement of fact, which everybody who has ever been to 
 Kansas knows, that we are exceedingly grateful for everything we can 
 get, and we are always hoping to get more. I want to state that it is 
 my unbiased, deliberate and invidual opinion that there is no other one 
 thing the American Mining Congress can do, which will be one-half as 
 powerful a factor in building up the future development and everything 
 which we want to accomplish, as taking hold of this matter and getting 
 governmental recognition of some form of institutions wherein we may 
 have the fundamental principles of Uie great industries that we are 
 interested in taught and developed from year to year, so that we wil 
 have at least one point of stability in the enterprise and undertakings 
 that we have established. 
 
 Now, just one word further by way of comparison. I don't care 
 what an organization is, it must have something to make it stable 
 What is the history of this organization? We have had this congress 
 called year after year with nothing about it to give it stability, nothing 
 about it which tends to permanency, except popular interest in the grea 
 mining industry. Sorh,e of our best friends in the organization realizec 
 eventually that something had to be done, and the Mining Congress 
 corporation was formed so that we would have a certain element o 
 stability and provide a certain central point around which all these 
 other interests would gather. This matter to which I refer is simply 
 another step along that line. We will have, if we get an appropriation 
 made by congress from year to year, and thereby governmental recogni 
 tion-v of the mining schools of America, a second factor of stability 
 We will then have something which is perpetual, something which coulc 
 be called to the assistance of any and every move that the American 
 Mining Congress might want to make in the future. I believe that nc 
 matter what we may try to accomplish in the future, whether it be tin 
 development of the Bureau of Mines into a department of mines am 
 mining, covering every field of mining industry, or whether it be any 
 thing else that works for the good of the great American people, the 
 upbuilding of the mining schools would give us a certain element o 
 stability that we cannot get in any other way. Therefore, I hope when 
 a resolution is presented here at the proper time to bring about Federa 
 recognition of mining schools, that this Congress will vote "Yes" on 
 that resolution, and that they will express their vote in so loud a voice 
 that the sound will reach the ear of every member of the Congre'ss in 
 the United States. 
 
 ^ Now, Mr. President, and ladies and gentlemen, down in Kansas in 
 a mining way we are getting along very nicely. We are doing every 
 thing that we can in order to develop those industries of which we have 
 a few. We mine lead, ore, zinc, coal, salt and gypsum, and are develop 
 ing valuable oil fields. I want to say to you that Kansas is in favor o 
 anything and everything that is good which this Congress may bring 
 
AMERICAN MINING CONGRESS 23 
 
 forth, and you may look to us to help in every way that seems desirable. 
 All you have to do is to ask us. I am referring now to the gentlemen 
 who are interested in the great mining enterprises of the states. I thank 
 you, Mr. President. (Applause.) 
 
 THE PRESIDENT: At a number of "bur former sessions I have 
 been sorely disappointed in not greeting a -delegate from the great 
 mining state of Michigan, which perhaps has the greatest iron mines 
 in the world, and which has boasted for years with every right of 
 having the greatest copper mines, and held that title until Utah asserted 
 itself and developed some which far outclass any of the Lake Superior 
 district. Today we have, with us the Honorable John H. Jacobs, mayor 
 of Marquette, Michigan, who will respond in behalf of that state. 
 
 MAYOR JACOBS: Mr. President and Fellow Members of the 
 Mining Congress: I can only tell you what we are doing in my neigh- 
 borhood, and how we are getting along, and what prospects we have of 
 improving. Marquette, in Marquette county, is the center of our iron dis- 
 trict in Michigan. It leads westerly to Gogebic, Menominee, Dickinson and 
 Iron counties; the ore is shipped from Marquette and Escanaba, Michi- 
 gan, Two Harbors, Minnesota, and Ashland, Wisconsin. The ores from 
 the border line of Michigan nearest Wisconsin are largely shipped from 
 the port of Ashland. Now Marquette county is one of the originals of 
 the old iron counties of the United States. The iron business was well- 
 known in Marquette county as far back as 1854. The ore was then hauled 
 by mules and horses from the mines to Marquette, a distance of about 12 
 miles. From 1854 to 1860 there were 3,115,600 tons transported in that 
 way. Our enormous increase of tonnage since that time is best read 
 in the figures, for theje have been shipped, exclusive of the output for 
 1911, a total of 96,296,717 tons of ore from Marquette county alone. 
 Gogebic county has shipped something like 56,000,000, and Menominee 
 and Dickinson counties about 30,000,000 tons more. The grand total 
 already shipped from the Lake Superior district up to^ the close of 
 navigation in 1910 is 493,489,562 .tons. During the past six years more 
 ore has been discovered in Northern Michigan, Wisconsin and Minne- 
 sota than was supposed to have ever existed up to that time. Mining 
 is being fast reduced to a science. Our shafts today are being built 
 of concrete to make them safe and durable. The local managements 
 include the best equipped men that technical training and experience 
 can produce. Mine inspectors are appointed by our boards of county 
 supervisors. These inspectors are familiar with all the details of 
 practical mining, also the dangers incident to that hazardous calling, 
 and their duties are to inspect the mine at least once a month to 
 conserve the safety of the men employed in and around the mines. 
 Some of the mines require the men before beginning work to sign a 
 contract releasing the mines from liability in case of their injury or 
 death through accident while at work, in return for which the com- 
 panies stipulate certain payments graded to meet the degree of acci- 
 dent sustained, and the companies also agree to provide competent 
 inspection of dangerous places. We have the very latest machinery of 
 all kinds. The Pioneer Iron Company is manufacturing charcoal. The 
 Cleveland Cliff Company is purely a mining company, which is now 
 improving its water powers, and improving everything in such a 
 way that everything is very cheaply done and very easily handled. 
 One thing I. want to mention, and perhaps a good many people here 
 will be surprised when I tell them that we are manufacturing charcoal 
 now in the city of Marquette, and from the smoke of the charcoal 
 furnace we manufacture many, many different products, such as creo- 
 sote, wood alcohol, rose-water perfumery, formaldehyde, white wine 
 vinegar, sulphuric acid and many kinds of medicines. The great value 
 of these products makes them finally the principal one and the iron 
 the by-product. Between the iron and the wood the medicines are 
 collected and then refined through the combination of both iron and 
 alcohol, which are used to precipitate them in such a way as to make 
 the different articles. We also make chloroform. It is simply won- 
 
24 OFFICIAL PROCEEDINGS 
 
 derful what is bejng done. When we first began our lake shipments 
 <of iron ore, our methods were so primitive in handling the same that 
 ;it required from 12 to 14 days to load a 500-ton vessel. Today by more 
 .improved dock and other facilities we can load a 10,000-ton vessel 
 'inside of 4 hours. For the information of this Mining Congress I will 
 read the following from the report of the mineral statiscian for the state 
 of Michigan for the year 1909: 
 
 The ore producers of the Lake Superior District had a record year 
 in 1909. 
 
 The total of shipments was the largest in the history of the 
 region and showed a gain of more than 70 per cent over 1908. 
 
 Notwithstanding a shortage of labor and the somewhat restless 
 condition of general business, the work of producing and shipping iron 
 ore proceeded with great vigor. Important discoveries were made and 
 large bodies added to the total known ore reserves. 
 
 The figures below show the shipments by ranges including in 
 Michigan, the Marquette, Menominee and Gogebic ranges, and in 
 Minnesota, the Mesabi and Vermilion ranges. 
 
 The following table shows the shipments, by ranges, of Lake Su- 
 perior iron ore from 1902 to 1910 inclusive: 
 
 Total, 
 Year. long tons. 
 
 1902 27,562,566 
 
 1903 24,271,761 
 
 1904 21,755,359 
 
 1905 34,252,115 
 
 1906 38,421,173 
 
 1907 42,170,878 
 
 1908 26,892,538 
 
 1909 42,504, 1 1 
 
 1910 46,600,000 
 
 Total production of Lake Superior iron ore by ranges, from dis- 
 covery to 1910 inclusive, in long tons: 
 
 Mesabi 195,703,424 
 
 Marquette 91,903,991 
 
 Menominee 71,313,115 
 
 Gogebic 60,820,503 
 
 Vermilion 29,125,385 
 
 495,566,415 
 
 The first iron ore sold at Lower Lake Ports was in 1855 and the 
 price was $10.00 per ton at the Lower Lake Ports. The next year the 
 price dropped to $8.00 per ton, for both Bessemer and non-Bessemer. 
 
 MARQUETTE RANGE. 
 Year. Bessemer. Non-Bessemer. 
 
 1855 $10.00 $10.00 
 
 1856 8.00 8.00 
 
 1857 8.00 8.00 
 
 1858 6.50 6.50 
 
 1859 6.00 6.00 
 
 I860 5.25 5.50 
 
 }861 5.25 5.00 
 
 862 5.25 5.37 
 
 J863 7.50 7.50 
 
 864 8.50 8.50 
 
 865 7.50 7.50 
 
 J866 9.50 14.00 
 
 }867 10.50 11.50 
 
 868 8.25 . 8.25 
 
 8.25 9.50 
 
 8.50 9.50 
 
AMERICAN MINING CONGRESS 25 
 
 1871 . 8.00 8.00 
 
 1872 9.00 7.50 
 
 1873 12.00 9.00 
 
 1874 9.00 7.00 
 
 1875 7.00 5.50 
 
 1876 6.75 4.50 
 
 1877 6.50 4.25 
 
 1878 5.50 4.25 
 
 1879 6.25 4.75 
 
 1880 9.25 8.00 
 
 1881 9.00 7.00 
 
 1882 9.00 6.25 
 
 1883 6.25 5.00 
 
 1884 5.76 4.50 
 
 1885 . 5.50 4.25 
 1886 . 5.50 475 
 
 1887 . 7.25 5.25 
 
 1888 5.50 , 4.75 
 
 1889 . 5.50 4.50 
 
 1890 . 6.75 5.75 
 
 1891 6.00 4.75 
 
 1892 5.50 4.85 
 
 1893 4.25 3.50 
 
 1894 2.75 2.15 
 
 1895 . 3.50 2.30 
 
 1896 . 4.00 2.85 
 
 1897 . . . 2.65 2.60 
 
 1898 3.35 2.45 
 
 1899 3.50 2.50 
 
 1900 6.48 5.00 
 
 1901 4.92 3.85 
 
 1902 5.00 4.00 
 
 1903 5.15 4.25 
 
 1904 3.85 3.35 
 
 1905 3.75 3.20 
 
 1906 4.25 3.70 
 
 - 1907 5.00 4.20 
 
 1908 4.50 3.70 
 
 1909 4.50 3.70 
 
 1910 5.00 4.20 
 
 In 1909 the total shipment of Lake Superior iron ores amounted 
 to 41,700,000 long tons, of which about 7,000,000 tons were distributed in 
 Lake Michigan, and 33,700,000 tons reached ports on Lake Erie, a small 
 quantity passing on to Lake Ontario and beyond. ^ 
 
 At the west end of Lake Superior water shipments amounting to 
 29,200,000 long tons, coming from the Mesabi and Vermilion ranges, 
 were made from Two Harbors and Duluth, Minn., and Superior, Wis. 
 These were increased to 33,000,000 long tons by the addition of 3,800,000 
 tons from the Gogebic range forwarded from Ashland, Wis., and were 
 still further increased to 35,900,000 tons by shipments from the Mar- 
 quette range, via Marquette, Mich., and by a small quantity from the 
 Michipicoten range in Canada. 
 
 With the exception of a comparatively small tonnage required for 
 local blast furnaces, this immense quantity passed through the Sault 
 Ste. Marie canals and moved on to the Straits of Mackinac, where a 
 part of the ore from the Lake Superior ports, together with some ore 
 from the port of Escanaba (the point of shipment both for the Menom- 
 inee range ores and for part of the Marquette range ores) proceeded 
 down Lake Michigan to various ports, such as Milwaukee, Fruitport, 
 Chicago and Gary. Some of the furnaces at these ports also obtain 
 considerable ore from local mines in Wisconsin. The remainder of 
 the ore from Escanaba passed eastward through the Straits of Mackinac 
 and, with the shipments from Moose Mountain, Ontario, joined the 
 
26 OFFICIAL PROCEEDINGS 
 
 main column through Lake Huron, some being disposed of at Mid- 
 land, Ontario, and Detroit, Mich., but the great bulk being distributed 
 to the lower lake receiving docks at Toledo, Sandusky, Huron, Lorain, 
 Cleveland, Fairport, Ashtabula and Conneaut, Ohio, Erie, Pa., and 
 Buffalo and Tonawanda, N. Y. 
 
 I want to say that I attended a good roads congress not long ago 
 in this very building, and resolutions were passed organizing a good 
 roads committee in each state, and I would like to see a mining com- 
 mission appointed in each state to report to this general Congress, and 
 I believe that it would be a good thing for the mining business, and I 
 further think that mining ought to be taken up by the National Govern- 
 ment and it should give its loyal support to the mining business as well 
 as it does to the agricultural industry. It seems they have seven millions 
 of dollars to improve the agricultural industry and the mining indus- 
 try seems to be next to agriculture, which is one of the most necessary 
 products that the world needs and must have. I think by urging this 
 matter to Congress that it will succeed, from what I have understood, 
 and make mining more prosperous than it is at this time. I am making ' 
 the first representation from our Michigan mining district, of which 
 there has been little thought of up to this time, but I find it is a matter 
 of great importance and should be well cared for by our mining people 
 from my state of Michigan, and I assure you that in your next Con- 
 gress there will be a better representation here than there is today. As 
 a member and delegate I want to thank you for your kind attention 
 and for the kind treatment I have received. (Applause.) 
 
 MR. S. A. TAYLOR, Pennsylvania: Mr. Chairman: There are a 
 number of things to come before this meeting and I move at this time 
 that we adjourn to meet at 8 o'clock this evening. 
 
 Whereupon an adiournment was taken until 8 o'clock p. m. 
 
 TUESDAY, OCTOBER 24, 1911. 
 Evening Session. 
 
 The evening session was devoted to the entertainment of the 
 visiting delegates at a smoker tendered by the business men of Chicago 
 at which refreshments were served and the responses on behalf of the 
 several states were interspersed with some instrumental and much vocal 
 music. Mr. Harry N. Taylor, President of the Illinois Coal Operators' 
 Association, acted as toastmaster. 
 
 THE TOASTMASTER: Mr. Lawrence E. McGann will say a 
 few words on behalf of the Hon. Carter H. Harrison, Mayor of 
 Chicago. 
 
 MR. McGANN: Mr. Toastmaster and Gentlemen of the Congress: 
 When the Mayor of our city asked me to attend this meeting this even- 
 ing in his behalf he told me to tell you that he exceedingly 
 regretted his inability to attend this meeting so that he might 
 personally extend to you most hearty welcome. 1 have been reminded 
 that I was not expected to make a speech, which is wholly pleasing to 
 me, but I would like to take this opportunity 10 say that in no city in 
 the Union will be more appreciated many of the subjects that you have 
 under consideration, the general conservation of great natural values, 
 and added to them the greater subject and also one of the great econ- 
 omies, the conservation of life and limb as well as the preservation of 
 property. The conservation of individual interests that will protect 
 American education and intelligence has passed the day where the man 
 who ignores it can succeed. The individual interests of the different 
 classes of trade and combinations that go to make up the great Amer- 
 ican nation, will be contended for with an intelligence such as has not 
 been known in any other part of the world. The intelligence that is taught 
 in our public and our private schools, and that is inborn in every Amer- 
 ican citizen breathing in the free air of America; the consciousness of a 
 proper interest in his own individual self and in the nation, and the cour- 
 
AMERICAN MINING CONGRESS 27 
 
 age to preserve the values in his individual self and in those associated 
 with him; that is the conservation of today; that is the conservation that 
 the -engineers of every character, that the financiers of every characer, 
 that the captains of industry must recognize as the dominating question 
 of America and of the world, and I congratulate you, gentlemen, on the 
 gathering here and the calling into being of a Congress of gentlemen 
 so intelligent, so capable, so addicted to the habit of computing values 
 and of Determining chances, and of recognizing facts when you meet 
 them and of formulating plans for success. 
 
 You will pardon me for taking advantage of this opportunity to 
 express these views, but they were impressed upon me as I entered 
 this hall this evening by a gentleman whom I have met frequently and 
 who is active in this association. An expression of his inspired me, or 
 suggested to me that these thoughts, or an expression of them, would 
 not come amiss at this time. I thank you, Mr. Toastmaster and gen- 
 tlemen. (Applause.) 
 
 THE TOASTMASTER: We will now hear from a gentleman 
 whose almost untiring efforts during the past two or three months ha? 
 made this meeting of the American Mining Congress such a success 
 as it is, Mr. C. M. Moderwell, Chairman of the Executive Committee. 
 
 MR. MODKRWELL: Mr. Chairman: I announced at the 
 meeting this afternoon that I had made my last appearance, and I didn't 
 know anything further would be required of me tonight except to takj 
 my share of the provender. Speaking for myself, and for the gentlemen 
 who have already expressed themselves in the same way, we are very 
 anxious to get to the actual business of the evening, and I am not 
 going to disappoint them by making a speech at this time. I have 
 better taste. (Applause.) 
 
 The Toastmaster then called on Mr. T. H. O'Brien, New Mexico. 
 
 MR. O'BRIEN: Mr. O'Brien will also show his good taste by 
 not saying anything this evening. Thank you. (Applause.) 
 
 The Toastmaster then called on Mr. Horace L. Chapman, of Ohio. 
 
 MR. CHAPMAN: Mr. Toastmaster and gentlemen of the American 
 Mining Congress: I did not come here for the purpose of making a 
 speech, but I came here to be a listener and to learn something from 
 gentlemen here more familiar and better qualified to talk upon the sub- 
 jects for which this Congress was organized. 
 
 I desire on the part of Ohio to tender to this Congress and to the 
 city of Chicago and my friend, Harry Taylor, whom I have known for 
 many years, the thanks of our people for your hospitality upon this 
 occasion, and I hope that the results of this Mining Congress as organ- 
 ized, in the future will bring great improvement to all the industries 
 which it^ represents, and especially to the coal industry of the central 
 competitive field. 
 
 I came here many years ago when a boy, you might say, more 
 than half a century ago, to this city of Chicago when Cincinnati in pop- 
 ulation rivaled it. Now, where are you? Two and three-quarters mil- 
 lions people, the second largest city upon this continent, and in mv 
 judgment in another half century, if no misfortune befalls, Illinois will 
 boast of having the city of the largest population in this country if n&t 
 rivaling England's capital London. (Applause.) I came here many 
 years ago to a convention of operators, miners of coal, when an arrange- 
 ment was made by which .we entered into contracts covering that indus- 
 try, and I shall never forget the scourging that the Chicago newspapers 
 gave me for more than two weeks every day from one to two columns 
 in each of them, because they claimed that I was holding up the con- 
 vention on the part of Ohio for some interests that were there, that we 
 should not be unjustly dealt with, but when the outcome came those 
 same gentlemen had to take back every word that they had said con- 
 cerning me as an individual. I thank you, gentlemen, ^for the honor 
 that you have conferred in calling upon me to make a 'short address. 
 (Applause.) 
 
28 OFFICIAL PROCEEDINGS 
 
 THE TOASTMASTER: There is a gentleman here who by splen- 
 did efforts in the past was one of the main factors in getting certain 
 legislation passed which has had great bearing upon the mining indus- 
 try of this country, Honorable John C. Chancy, of Indiana, former 
 member of Congress. 
 
 MR. CHANEY: Mr. Toastmaster and Gentlemen of the Amer- 
 ican Mining Congress: Indiana never fails to make a speech 
 when it has permission. I come from the region in Indiana of the very 
 best quality of bituminous coal (laughter). We have millions invested 
 in those enterprises, and we have until the Mining Congress began to 
 pay attention to us, never conserved our resources for they were prac- 
 tically exhaustless, and we haven't begun to appreciate that the end 
 is anywhere in sight this side of the millennium. 
 
 I am very pleased to have a part, a small part, in disposing of the 
 provender of this occasion and to touch elbows with the men who rep- 
 resent the great mining industries of the United States and of Canada 
 and possibly elsewhere. I am glad to be introduced as having had 
 something to do with legislation which furthers the interests of the 
 various sorts of mines throughout the country. I am glad to have been 
 able to be a part in the establishment of the Bureau of Mines in the 
 United States, but I am particularly pleased with having had the oppor- 
 tunity to propose and see passed the appropriation which enabled the 
 rescue stations of the country to be established for the conservation 
 of human life. We have been interested in excellence and we have 
 achieved excellence in nearly all the branches of human effort, and it 
 is this fact which has made the United States of America rank fore- 
 most in the civilization of the earth. I am pleased to know that we 
 reach out after excellence in every department of life. Mr. John Dern 
 succeeded in achieving excellence in the gold mining department of 
 human effort through cyanide. Now, I do not know whether it is safe 
 for everybody to indulge in cyanide as a means of achieving excellence 
 or not. Over at Boston the other day there was a man who indulged 
 in cyanide as the means of disposing of one of his sweethearts so that 
 he might enjoy the other, and over there the newspapers say that is 
 the durnest way in the world of disposing of your sweetheart (laugh- 
 ter). I believe, however, in excellence and all things that go to achieve 
 excellence. I understand that the Mining Congress seeks to lift up to 
 the highest possible level all of these various energies of human life, 
 and therefore I am somewhat disposed to find fault with what is teem- 
 ing throughout the country in the way of an endeavor to eliminate com- 
 petition which has always heretofore been the spice of life, for it seems 
 to me that when we eliminate competition we to a certain extent elim- 
 inate emulation and therefore interfere with excellence. So far as pos- 
 sible I would hold fast to competition that we may go on' to higher 
 and better results and achieve excellence in all departments of life. 
 
 I congratulate this Congress in its great assembly of people so 
 intently interested in the highest usefulness of the. mining industry for 
 through the minerals which have been brought out of the earth and 
 are to be brought out of the earth are contributed the fundamental prin- 
 ciples of progress. We may talk of invention but only as applied to 
 these things which are dug out of the earth will invention bring us on 
 to greater victories and more wonderful achievement. 
 
 I am proud, too, that we are able to meet in this great city of 
 Chicago which has within it all of the elements which embellish and 
 encourage higher civilization. Truly here everybody -is welcome that 
 you may distribute your gold to these people, v/elcome that you may 
 disburse here your money among this people, and also help them to 
 estimate their value not only in dollars and cents but in the height and 
 depth and breadth of their buildings. Let us, therefore, not only ap- 
 preciate where we are but realize the. fact that we are here to learn of 
 these men who have made life a specialty, who have studied each of 
 these departments with care and with resolution and let us with that 
 aggressive spirit drink in from these men whose lives are pitched in 
 
AMERICAN MINING CONGRESS 29 
 
 these fields of splendid effort and go home to our various places and 
 apply those principles to the best interests of the communities whence 
 we come. To the coal miners of the country we especially send greet- 
 ing and when you want to make an investment that is worth some- 
 thing, when you want to estimate values that amount to something, 
 come down to Sullivan County, Indiana, and invest in coal land. (Ap- 
 plause.) 
 
 THE TOASTMASTER: It is now my pleasure to introduce a 
 representative of the South, Prof. E. L. Martin, of Atlanta, Georgia. 
 
 PROF. MARTIN: Mr. Toastmaster: Reference to the printed 
 program will show that Mr. T. R. Lombard was scheduled to respond 
 on behalf of Georgia to the very gracious and eloquent welcome extended 
 to the Mining Congress this afternoon. As it so happens that only 
 myself is present, from that state, I have been informed by pur Sec- 
 retary that the program committee has unanimously and enthusiastically 
 done me the high honor of selecting me to appear this evening as M,r. 
 Lombard's substitute. 
 
 Now, Mr. Chairman, that fact was only communicated to me a 
 few moments ago, and in such service as I have seen in the matter of 
 making occasional public addresses, it has always been with me a 
 mooted question, whether it was the more painful to be loaded with 
 a speech and not have an opportunity to go off, or not to be loaded, 
 be compelled to go off. In view of the embarrassment under which 
 1 labor at this moment, I am inclined to resolve the doubt in favor of 
 the latter predicament, and before I conclude, I fear that my auditors 
 may unite in making this view of it unanimous. 
 
 Hailing as I do from Atlanta the livest municipal wire in all 
 Dixieland I have been much gratified to observe the pride which 
 Chicagoans very naturally and deservedly feel in having their city 
 referred to as "The Atlanta of the Northwest." 
 
 As school children, we learned from the Roman general and his- 
 torian, Julius Caesar, that Omnia Gallia Divisa Est in Partes Tres. 
 Should the average Atlantian be called upon to give the history of his 
 city, he would undoubtedly begin by declaring that "All Atlanta is 
 divided into three parts one of which is the Southern states, and the 
 other two Atlanta." From what I have heard and also observed of the 
 Chicago spirit I doubt not that the loyal Chicagoan would declare that 
 "All Chicago is divided into three parts, one of which is the United 
 States and the other two Chicago." And I am inclined to think that 
 the members of this Congress present from all parts of the country 
 who are partaking of your royal hospitality would applaud the sentiment. 
 
 Mr. Chairman, I observe that a very large majority of the mem- 
 bership of this Congress is composed of gentlemen who come from the 
 states of the West, conspicuous for their mineral wealth, while I hail 
 from a state whose citizens are interested in the mining industry, chiefly 
 as investors, but their interest is none the less keen and vital because 
 of this difference. 
 
 I believe it is well authenticated that about the earliest successful 
 gold mining done in the United States was in Georgia, and that prom- 
 inent among the forty-niners who opened up the gold fields of California, 
 were the hardy miners from the "Empire State of the South." It is now 
 patent however to our people that Georgia gives promise of only scant 
 reward to those who seek the precious metals within her confines. But 
 conscious as they are of the fact that the Generous Giver of All Good 
 has filled to overflowing with golden treasure the great rock-ribbed 
 vaults which He fashioned and placed among the mountain fastnesses 
 of the West, and that He intended that all His children who might 
 possess the courage to seek this rich and goodly heritage should become 
 sharers therein, our people have resolved to co-operate with their 
 brethren of the West, by furnishing much of the capital necessary to 
 unlock and develop it. 
 
 I am gratified to say to you, sir, and to all others present, that in 
 many instances they are. beginning to reap the fruits of their faith 
 
30 OFFICIAL PROCEEDINGS 
 
 and courage. They have only asked and shall only continue to ask that 
 they be given the truth regarding the propositions in which they are 
 requested to-invest, and that they be dealt with fairly and honestly. On 
 their behalf I wish to say that they look to this organization to insist 
 that laws be enacted in each of the mining states (as has already been 
 done in quite a number) which will give to them and their investment, 
 protection from the fakir and the bunco steerer. With this done eastern 
 and southern capital will flow westward with ever-increasing tide to 
 develop the latent mineral wealth which there abounds. 
 
 In conclusion, Mr. Chairman, permit me again to thank you and 
 the citizens of Chicago, for your royal hospitality, and to say I belieye 
 that here, in pre-eminent degree, is found that virile, vigorous spirit, 
 which typifies American life and progress, making of the United States 
 the undisputed queen among the sisterhood of nations, and of Chicago 
 the brightest gem in the coronet of cities which bedecks her brow. 
 
 THE TOASTMASTER: We will now hear from a distinguished 
 engineer, Mr. Philip N. Moore, of Missouri. 
 
 MR. MOORE: I have been informed that it has been the im- 
 memorial custom of this assemblage to call for a response on behalf 
 of the state of Missouri from your distinguished member and my dis- 
 tinguished friend, Dr. Buckley, but Dr. Buckley is no longer eligible 
 for some reason, perhaps the terror of these responses or the fear that 
 the habit of much speaking might' grow chronic with him, anyhow he 
 has left our state. Possessing a pull of favoritism unexampled he calls 
 on the speaker, unused to such things, to represent the grand old State 
 of which he is a most unworthy member. - It is one of the advantages 
 of years, it has plenty of disadvantages, but one can recall in his own 
 observations the various fluctuations of. the industries in his state. In 
 the days of long ago your speaker, a youngster on the geological sur- 
 vey, hoping to attain immortal fame at $75.00 a month, used to hear 
 one of the great orators of Missouri _ who regularly was called upon as 
 the reserve whenever the appropriation for the geological survey was 
 in danger. The colonel had one speech, it always came, he begged the 
 members of the legislature to realize the enormous mineral resources 
 of the state which were now deeply buried in the bowels of the earth 
 calling for danger and grime and heavy expense for their realization 
 but that they stood forth proudly on the crests of the mountains where 
 sun-kissed they first greeted the coming of the dawn. Gentlemen, the 
 iron ores of Missouri, which in those days first greeted the coming of 
 the dawn, long since have gone underground and from the old state 
 comes in .its place not the iron but the lead and zinc which make her 
 memorable, and the coal which in time will make her rank with the old 
 state of Indiana. 
 
 If you will pardon me for but a moment, gentlemen, I have heard 
 this evening the word conservation. We conjure with that word, we 
 use it loosely and inaccurately, but I want, as this is the only chance 
 I shall have at this meeting to be heard, I want to call your attention 
 to one danger in the line of conservation, to one leak, to one untouched 
 feature which in our growing regulations by labor and by capital seems 
 to be gradually dropped out of sight. I refer to the conservation of 
 industrial liberty (applause). It has been my fortune not long since 
 to discuss with some distinguished members of our profession the con- 
 ditions in mining in one of the great nations on the other side where 
 the rule is that everything is forbidden which is not permitted; with 
 us it has been our proud boast that everything is -permitted which is 
 not forbidden. In the growing regulation from above and from below 
 it seems to me, and gentlemen, it behooves us all to remember that our 
 gains, as we have made them, have been made by industrial and indi- 
 vidual liberty (applause). 
 
 The Toastmaster then introduced Mr. John Gillie, of Montana.. 
 MR. GILLIE: I feel like telling Mr. Taylor the same thing he 
 told me a few minutes ago. However, I am very glad to have a chance 
 to say something and of having the opportunity to be here. This is a 
 
AMERICAN MINING CONGRESS 31 
 
 very representative meeting of the mining industry, and coming from 
 Butte I might give you a whole lot of statistics on copper, but I think 
 as we are met here this evening matters of that kind would not be very 
 interesting to you. So I shall merely thank you for the compliment. 
 
 THE TOASTMASTER: I take pleasure in calling upon Mr. C. 
 N. Gould., to respond on behalf of the state of Oklahoma. 
 
 MR. GOULD: No equal area that the sun shines upon has, during 
 recorded history, made such rapid, majterial development as has Okla- 
 homa during the past ten years. Her history reads like a romance. 
 Even those of us who have had a part in this development can scarcely 
 realize the wonderful advancement that has taken place. 
 
 Where twenty years ago were bare plains are now flourishing 
 cities; where, ten years ago, were wooden shacks, now stand twelve 
 story sky-scrapers; where ox teams and cow ponies crossed the plains 
 are now long lines of steam railroad and trolley cars. 
 
 Oklahoma has grown, not by accident, but because of the fact that 
 she is endowed with unparalleled natural resources. With soil and 
 climate unsurpassed, no state in the Union has such varied agricultural 
 resources. In the increase in the mileage of railroads, the increase in 
 bank deposits, and increase in population in the two chief cities during 
 the past ten years, she leads the world. 
 
 But it is in the matter of minerals that you, as delegates to the 
 American Mining Congress, are interested. And in minerals Oklahoma 
 is richly endowed. No State has either a greater variety or a greater 
 amount. 
 
 Material prosperity is based on power, and power is dependent on 
 fuel. The state that possesses large amounts of fuel has a great advan- 
 tage over a state without fuel. Oklahoma has 80,000,000,000 tons of 
 coal locked up in her hills; she produced last year 54,000,000 barrels of 
 petroleum, and has a daily production of 2,000,000,000 cubic feet of gas. 
 She has asphalt enough to pave all the streets of all the cities of the 
 United States for a thousand years; her lead and zinc mines are as 
 prolific as those of Missouri; she has 125,000,000,000 tons of gypsum 
 enough to make 10,000 tons of plaster daily for 43,000 years; she has 
 salt water enough to make 500 cars of salt a day; she has a ledge of 
 glass sand fifty feet thick and one hundred miles long; manganese and 
 hematite iron ore of high grade; mountains of granite and marble; 
 sandstone and limestone, with Portland cement rock, clays and shales 
 in inexhaustible quantities. 
 
 All the minerals, that go toward the development of a prosperous 
 state are found in great abundance in Oklahoma, including the struc- 
 tural materials, the metals and the fuel for their manufacture. 
 
 At the present time not one-half of one per cent of the mineral 
 wealth of the state has been developed. We in Oklahoma are sending 
 out of the state for practically everything we use in the way of manu- 
 factured articles. Our salt, our lime, our granite, our building stone, 
 our brick, our tile, our Portland cement, our asphalt, and even much of 
 our coal, are produced in other states. 
 
 What Oklahoma needs more than anything else at the present 
 time is more money to develop its mineral resources. With vast unde- 
 veloped resources in our midst, a region containing a large and rapidly 
 increasing population, the utilization of her minerals is but a question 
 of time. No better investment can be made than in mines, plants and 
 factories under conditions such as now obtain in Oklahoma. 
 
 The Toastmaster then introduced Mr. Eli T. Connor, of Philadel- 
 phia. 
 
 . MR. CONNOR: Mr. Chairman, Gentlemen of the Mining Con- 
 gress: The excellent addresses to which I have listened today, and this 
 evening, leave very little for the delegate from Philadelphia to say. We 
 have heard from most of the great mining states of the Union; from 
 the representative of our neighbors on the North, Canada; -and from 
 the delegate of our great and good friend, the Republic of France, that 
 which is instructive, pleasing and entertaining. 
 
32 OFFICIAL PROCEEDINGS 
 
 The wonderful advances that have been made in the art of mining, 
 in our great western states, in the past few years, are of great interest 
 to all mining men, but particularly to miners from the old Keystone 
 State. As this is the first meeting of the Mining Congress that it has 
 been my good fortune to attend, I cannot help but express some sur- 
 prise that the state which is foremost in quantity and value of products 
 of the mine, is not more largely represented at this gathering. It is 
 'hardly necessary for me to mention here, in the presence of these emi- 
 nent mining men from all over the country, and who have so elo- 
 quently portrayed the progress of each of their several states, the fact 
 that many of the progressive miners of the country took their first 
 lessons in underground development in Pennsylvania. The representa- 
 tive of his Majesty's government has quite properly designated Great 
 Britain as the "Great. Mother" of the mining industry. I had thought 
 of applying this term to the Keystone State, but as it has already been 
 pre-empted, I will claim for Pennsylvania that it is the "Daddy" of the 
 American mining man. Wherever I go, in coal mines of the country, 
 as far west as the Pacific coast, and in the provinces of Canada, I meet 
 men whose early training was acquired in the mines of some part of 
 the state of Pennsylvania, and I believe that while the contribution of 
 my state to the economic development of the country, of its products 
 of the mine, is of paramount importance, as compared with all other 
 states of the Union, the well-trained, energetic, and resourceful men 
 who have there been developed, and who have scattered to all points 
 of the compass, in pursuit of the great mining industry, constitutes a 
 still more important force for the uplifting of mankind. 
 
 I have before mentioned the comparatively small representation 
 of my state, at the present Congress, but I wish to again refer to it 
 and to express the hope that the next annual meeting of the Congress 
 may be in my home city of Philadelphia, which as is probably well 
 known, is the cradle of the coal mining business, the oldest known coal 
 corporation in Pennsylvania, the Lehigh Coal Mining Co., having been 
 organized in Philadelphia, in 1792, this being the origin of the Lehigh 
 Coal & Navigation Co., which is still one of the most prominent anthra- 
 cite coal mining companies in Pennsylvania. 
 
 My thought is that if the Congress will select Philadelphia as its 
 next place of gathering, much greater interest can be aroused in the 
 objects aimed at by the Congress, .not only among coal mining men of 
 the East, but among engineers, owners and investors, in all kinds of 
 mining ventures, throughout the country". 
 
 T have been authorized by the mayor of the city of Philadelphia, 
 to officially invite the Congress to our city, next year, and trust that 
 the directors of the Congress will take favorable action upon this 
 invitation. 
 
 The Toastmaster then introduced Dr. J. E. Talmage, of Utah. 
 
 DR. TALMAGE: I am honored in the request to make a brief 
 response in behalf of the delegation here present representing the State 
 of Utah, to the address of welcome to which we have listend this after- 
 noon. In thus responding I am not unmindful of the fact that Utah 
 is one of the guests of the great state of Illinois and her distinguished 
 daughter. It would be more in accord with the proprieties, perhaps, for 
 the guest to say but little of herself, yet I am specifically invited to say 
 a word with respect to Utah as a mining state. 
 
 I can say with assurance that Utah stands high among the mining 
 states high in the literal sense, for even our valleys are a mile or more 
 above sea level, and our mountains, in which He mineral treasures be- 
 yond measure or count, tower to nearly three times that altitude. Even 
 the base of the mighty Wasatch barrier is far above the tops of the Alle- 
 ghenys. Out in our land aviators rise from the ground at an altitude 
 which, m places removed from the mountains, ordinarily marks the cul- 
 mination of their ascent. 
 
 But in another sense, the sense of importance and greatness, Utah 
 ranks high among her sister states engaged in the mining industry. 
 
AMERICAN MINING .CONGRESS 33 
 
 Year by year she presents a continually increasing output of gold, sil- 
 ver, copper, and lead, while her immense reserves of iron and zinc re- 
 main practically untouched. Our mineral bi-products represent im- 
 mense values. It was said today by the distinguished representative from 
 the British Dominion on the north that Canada had enough arsenic to 
 poison all the people of the United States. Of Utah it may be said that 
 she has enough to poison the world. She has been allowing a million 
 dollars worth a year to escape from her smelters, until the law, like a 
 watchful guardian compelled her to curb her extravagant waste. As 
 for sulphur, Utah could set up a rival institution to that of Satan himself 
 and keep the sulphurous fumes going for ages. Utah has salt enough 
 to keep the world from spoiling as long as mankind shall need to be 
 salted. She has gypsum enough to plaster all Paris and the world be- 
 side. Her* hydro-carbons are so plentiful that only the best and rarest 
 are mined and marketed. Among the producers of the rarer metals she 
 is rapidly attaining a place of enviable importance. She is exploiting 
 deposits of minerals containing uranium and vanadium and the yet 
 rarer radium in unique combination. 
 
 And among the other bi-products of the mining industry Utah 
 maintains a steady yield of litigation cases in number and richness to 
 keep the lawyers working double shift. Her mills and smelters are 
 among the largest in the world. We read in ancient writ that by faith, 
 mountains may be moved, and we read further that faith without work?; 
 is dead. The vitalized faith manifested in works by the Utah copper pro- 
 ducers is literally removing an entire mountain, slice by slice, in the 
 Bingham district. 
 
 Utah is vitally interested in the work of the American Mining Con- 
 gress and has manifested her interest in that organization from the 
 first. She pledges her co-operation and aid in any action this Congress 
 may take looking to the betterment of conditions attending mines, min- 
 ing, and miners. 
 
 The Toastmaster then introduced Mr. E. L. DeLestry, of Min- 
 nesota. 
 
 MR. DE LESTRY: Mr. Chairman and Gentlemen: On behalf of 
 the state of Minnesota we desire to express our great appreciation 
 for your hearty welcome to your wonderful city. Coming to Chi- 
 cago is like coming to an old home, at least to me, for many 
 pleasant associations still linger in my memory from the earlier years 
 of my life, spent in this city. If the North Star Stale has not heretofore 
 taken an active part in the work of the Mining Congress it is not on 
 account of its lack of mineral wealth. Our state now contributes annually 
 twenty-eight million tons of iron ore to the markets of the world. Its 
 production in magnificent building stones of great value can handly be 
 estimated. With the splendid granites of St. Cloud, which appear in 
 many of our public buildings, the dolomites of Winona, the beautiful 
 standstones of the Kettle river, and the famous lime stones abounding 
 in every direction we still have vast areas of undeveloped iron lands 
 open to the energetic miner. We estimate that the supply of marketable 
 iron ores of Minnesota will yield for a century to come. 
 
 Aside from our local resources many thousands of dollars of 
 Minnesota capital have gone into the developing of mines of the far 
 west and still continue to assist in the further development of the 
 country's greatest industry, which we here represent. Only the near- 
 sighted parsimony of our legislature has so far kept the state from 
 having a well established department of mines but the time is surely 
 coming when such a department will be established in our state. Gov- 
 ernor Eberhardt recommended it in his last message to the legislature 
 and the matter will be kept fully alive in the future. 
 
 I am firmly of the opinion that once our citizens, who are in any 
 manner interested in mining realize the great work this Congress is 
 doing, they wilt not hesitate to become actively associated with us and 
 I believe we can greet the next annual convention at least with a Twin 
 City section fully organized. The public must be educated to all great 
 
34 OFFICIAL PROCEEDINGS 
 
 movements but I wish to say in closing my remarks that the news- 
 papers of the state are treating us with utmost liberality in promulgat- 
 ing the news as it pertains to our efforts. 
 
 Again we thank you for your greetings and we already feel sure 
 that our stay in your city will be both pleasant and profitable. 
 
 Whereupon an adjournment was taken until 10 o'clock a. m., Octo- 
 ber 25. 
 
 WEDNESDAY, OCTOBER 25, 1911. 
 Morning Session. 
 
 The meeting was called to order by Dr. E. R. Buckley, at 10 
 o'clock a. m. 
 
 THE CHAIRMAN: It has been the custom, ladies and gentlemen, 
 yearly, for the president to present to the members of the American 
 Mining Congress an annual address. This address follows various lines 
 of instruction, and is a review of the work of the American Mining 
 Congress. I think that perhaps there is no man associated with the 
 American Mining Congress who knows better or more fully the work 
 of this organization than our present president. (Applause.) Our presi- 
 dent has been untiring in his efforts to build up and to make this organ- 
 ization successful in every way. He is a man who is in touch not only 
 with the practical mining industry and successful miners and operators, 
 but he is also a man well versed in the technology of mining. I think we 
 have been extremely fortunate during the last year in having Mr. John . 
 Dern, of Salt Lake City, as the president of this American Mining 
 Congress; not only because of the personality of Mr. Dern, president, 
 but because he comes from a city in the west which stands pre-emi- 
 nently first in this great industry. I think that the -members of the 
 American Mining Congress owe to Mr. Dern and his people much more 
 than a vote of thanks for the interest that they have shown in this 
 organization and the help which they have given it in the years past, and 
 so I take great pleasure this morning, ladies and gentlemen, in pre- 
 senting to you our president, Mr. John Dern, of Salt Lake City. 
 
 Mr. Dern's address will be found at page 121 of this report. 
 
 THE CHAIRMAN: Mr. President, I am sure I express the senti- 
 ment of this meeting when I say that we have been most highly enter- 
 tained by your instructive and interesting address. (Applause.) 
 
 The next number on the program for this morning is the report 
 of the committee on workmen's compensation, by Mr. John H. Jones, 
 its chairman. 
 
 SECRETARY .CALLBREATH: The report of this committee is 
 printed in the issue of "Fuel," which has been distributed, and the read- 
 ing of that report will be dispensed with, with your permission. 
 
 The report of the committee on workme'n's compensation will be 
 found at page 113 of this report. 
 
 THE CHAIRMAN: This report is to be discussed by Mr. C. O. 
 Bartlett, Cleveland, Ohio; Mr. James W. Wardrop, Pittsburgh, Pa., and 
 Mr. John Mayer, Kansas City, Mo. 
 
 M'R. HARRY S. JOSEPH, UTAH: I would like to ask whether 
 this discussion will be limited to this morning's session. 
 
 THE CHAIRMAN: That will depend upon the number of people 
 who desire to discuss this report. If we have sufficient time this morn- 
 ing we will close the discussion this morning. If the Congress desires 
 to have the discussion continued to some future time it is in their hands 
 to postpone that discussion. 
 
 MR JOSEPH: The reason I bring this up, Mr. Chairman, is that 
 all of us have not had the opportunity to see this report that has been so 
 ably prepared, and in this morning's issue of the papers there is a dis- 
 patch from Washington to the effect that the committee having in 
 charge a measure which will probably include the sum and substance of 
 this proposed workmen's compensation measure, is working upon a 
 
AMERICAN MINING CONGRESS 35 
 
 measure to be presented to Congress, and they invite suggestions, and I 
 believe before limiting the discussion to this morning's session that we 
 ought to carry it through the entire session, so that we may all have 
 a chance to study, not only that measure, but also to study the law 
 as presented by this committee of the Congress. 
 
 THE CHAIRMAN: A motion will be in order at any time during 
 the sessions of this congress, to take up this discussion at a further 
 meeting. We will now hear from Mr. C. O. Bartlett, of Cleveland, Ohio. 
 
 MR. BARTLETT: Mr. Chairman and Ladies and Gentlemen of 
 the American Mining Congress: To begin with, I wish to say 
 a word or two about the paper which has just been read by 
 our worthy president. I assure you that it makes me feel good 
 to hear such a paper. It was my fortune to' meet with this convention 
 some years ago, at Deadwood, S. D. It was also my fortune to say at 
 that convention that it was necessary to include the coal industry in the 
 work of the American Mining Congress. At that session I think we 
 only .had two representatives of the coal men there. I said at that time 
 that other things must be considered if we would make a success of 
 this Congress. I remember in particular of some one speaking of pro- 
 ducing $7,000,000 worth of gold in the great homestead mines in Lead, 
 S. D., and it occurred to me then that they were producing more than 
 that value in granite down in the little state of Vermont; and in our 
 state of Ohio we produced last year $21,000,000 worth of clay products, 
 and when the president speaks of these products it makes me feel good. 
 It is what we ought to do. It has been a long, hard fight to put this 
 American Mining Congress on its present footing, and we are much 
 indebted to such men as Dr. Buckley and Dr. Holmes and Mr. Callbreath 
 and Mr. Richards, for the work they have done. To illustrate, at that 
 time hardly a single paper was supporting this institution. I think the 
 Mining World was about the only one represented at that Congress. 
 Now we are supported by every mining paper in the United States. The 
 future is great for us. 
 
 Mr. Bartlett's paper will be found at page 191 of this report. 
 
 THE CHAIRMAN: This address will be followed by one on the 
 same subiect by Mr. James W. Wardrop, of Pittsburgh, Pa. 
 
 MR. WARDROP: Mr. President and Ladies and Gentlemen: I 
 might preface my remarks by saying that I expect to present the argu- 
 ment of Mr. John H. Jones, the chairman of the committee that produced 
 this compensation law, now before you, or to give you from the chair- 
 man of that committee the views of the committee and the basis upon 
 which it worked to present what you have now in print, and which you 
 expect to discuss. 
 
 Mr. Wardrop then read Mr. Jones' paper, which will be found at 
 page 180 of this report. 
 
 The Chairman announced that a brief discussion by Mr. John Mayer 
 would be given the ficst thing in the afternoon, and after some announce- 
 ments by the Secretary an adjournment was taken until 2 o'clock p. m. 
 
 WEDNESDAY, OCTOBER 25, 1911. 
 Afternoon Session. 
 
 The meeting was called to order by the President. 
 
 The Secretary read resolutions Nos. 1, 2, 3, 4, 5 and 6a as follows: 
 
 Resolution No. 1, Introduced by Harry S. Joseph, Utah. 
 
 Whereas, There exists in the Rocky Mountain states many 
 mining properties containing developed low grade ore deposits and 
 vast dumps containing metal bearing ores not susceptible by present 
 known methods of treatment whereby the precious metals can be 
 economically and profitably extracted; and 
 
 Whereas, It should be incumbent upon the general government 
 to lend all possible aid to the end that conservation in its true mean- 
 
36 OFFICIAL PROCEEDINGS 
 
 ing and sense, viz.: the prevention of waste of natural resources may 
 be practically carried out; and 
 
 Whereas, the extraction of metals from apparent worthless 
 ores fulfills the above doctrine in part; and 
 
 Whereas, It is now a settled fact that Salt Lake City, Utah, is 
 the center of the mining activities of the West, 
 
 Resolved, That it be the sense of The American Mining Con- 
 gress in convention assembled, that the President and Congress of 
 the United States be and are hereby memorialized to enact such 
 legislation as shall establish under the auspices, direction and author- 
 ity of the United States Bureau of Mines at Salt Lake City, a 
 metallurgical, experimental or ore testing station for the purpose of 
 devising methods to extract the metallic values from such low-grade 
 ore and furnish the mining world with the results of such experi- 
 mentation, and appropriate $250,000 for such purpose; 
 
 Resolved further, That the officers of the American Mining 
 Congress draft a suitable bill embodying the above; that copies of 
 same, together with this resolution, be forwarded to the President 
 of the United States, and to every senator and representative, and 
 that all honorable and energetic means be used to the end that such 
 a bill may become a law. 
 
 Resolution No. 2, Introduced by the Kanawha Coal Operators' 
 
 Association. 
 
 Whereas, The President of this United States, in his address 
 before the conservation congress at St. Paul, Minn., and on other 
 occasions, so earnestly and properly insisted upon speakers and 
 others confining their remarks to concrete suggestions or plans by 
 which more might be accomplished than had been done to conserve 
 our resources; and, 
 
 Whereas, The conservation of bituminous coal is one of great 
 importance to this nation; and 
 
 Whereas, Unlike other manufactured products the condition 
 under which the necessity is marketed prevents the producer from 
 deriving a sufficient profit to enable him to conserve the coal in the 
 ground and the installation of the most modern appliances by which 
 a far greater tonnage than is now produced could be mined from 
 each acre of coal area instead of leaving a large portion of it in the 
 ground in such shape that it can never be gotten out; and, 
 
 Whereas, Notwithstanding the many statements sent broadcast 
 from time to time that the producers of bituminous coal are charg- 
 ing an exorbitant price for it, said statements being made by men 
 of prominence and well informed on most subjects show that they 
 undertake to discuss a most important subject which they do not 
 understand, and a subject concerning which they could easily obtain 
 accurate, reliable and exhaustive statistics by calling on the heads 
 of the mining bureaus of our various coal producing states, which 
 statistics would correctly show that the coal from most of our states 
 having the greatest deposits of the highest grade bituminous coal, 
 and from which the greatest tonnage is now being produced, is sold 
 by the producer at a price that nets him an average annual profit 
 of less than ten cents a ton, and in many cases and for long periods 
 of time at a price below actual cost of production, notwithstanding 
 the fact that the production of coal is one of the most hazardous 
 and dangerous enterprises in which funds can be invested or labor 
 be employed; and, 
 
 Whereas, The larger as well as the smaller producer of bitumi- 
 nous coal has for years been forced to market his product at an 
 actual loss or a profit which is insignificant when compared with 
 the nature of the investment and the hazard surrounding it; and, 
 
 Whereas, This deplorable condition of the coal trade is largely 
 the result of the producers of coal being unwilling to do what might 
 
AMERICAN MINING CONGRESS 37 
 
 be technically construed as a violation of the Sherman anti-trust law; 
 be it, therefore, 
 
 Resolved, That it is the sense of this association that the 
 Sherman anti-trust law should be construed as to admit of such 
 understandings and co-operation between the producers of bitumi- 
 nous coal as would admit of the marketing of tliat product at a 
 reasonable profit to the producer to the end that he may receive a 
 fair return on his investment, and at the same time conserve the 
 coal supply in the ground; and be it further 
 
 Resolved, That a copy of this resolution and its preamble be 
 forwarded to the American Mining Congress, which convenes at 
 Chicago, 111., October 24, 1911, and that Congress be requested to 
 pass it, and request each of its members to forward a copy to his 
 representative in the Congress of the United States. 
 
 Resolution No. 3, Introduced by the Valdez Section of the American 
 Mining Congress. 
 
 Resolved, That the American Mining Congress supports the 
 unanimous voice of Alaska in opposing the leasing of Alaska coal 
 lands. Government operation would be preferable because it would 
 give the government absolute control. Leases could be made only to 
 great corporations under terms that would give them monopolistic 
 advantages. Otherwise they would not accept a lease. 
 
 Resolved, That the unanimous demand ot Alaskans for the 
 abolition of forest reserves in the territory ought to be granted. 
 These segregations are a useless expense to the government, an 
 annoyance and handicap to residents who are trying to develop the 
 resources of the territory, and have never saved a dollar's worth of 
 timber or water from monopoly or waste because the annual produc- 
 tion of both in the forest reserves many times exceeds the con- 
 sumption. 
 
 Resolution No. 4, Introduced by James Fletcher, Illinois. 
 
 Whereas, The present scale of wages expires on the first day of 
 April, 1912, and a new scale must be adopted by the miners and 
 operators; and, 
 
 Whereas, Experience has shown us that it is sometimes very 
 difficult for the operators and miners to agree on a scale; therefore 
 be it 
 
 Resolved, That this Congress recommend that in case of a 
 disagreement between the operators and miners on a just and equit- 
 able scale, the matter shall be settled by a Board of Arbitration 
 consisting of three members of each state, one to be appointed by 
 the miners' organization and one by the operators and a third to be 
 agreed upon by these two; provided the two members thus appointed 
 cannot agree on the third member, said member shall be appointed 
 by the President of the United States. 
 
 Resolution No. 5, Introduced by B. W. Goodsell, Illinois. 
 
 Resolved, That the American Mining Congress is in hearty 
 sympathy and accord with the efforts being made by the sixty mil- 
 lions of people tributary to the great valley of the Mississippi River 
 through the "Lakes to the Gulf Deep Waterway Association" to de- 
 mand from the United States Government through its Congress to 
 lend every possible aid towards securing a .fourteen-foot channel 
 between the Great Lakes and the Gulf of Mexico through the Illinois 
 and Mississippi rivers, and thus save to our people not only a suf- 
 ficient amount in transportation charges every three years to cover 
 the entire expense, but also to regulate freight rates to the Atlantic 
 seaboard -which are now seven times greater than through this nat- 
 ural outlet from the Great Lakes to New Orleans when accomplished. 
 All mining interests between the state of Ohio on the east and Cali- 
 fornia on the west will be equally benefited with our great agricul- 
 
38 OFFICIAL PROCEEDINGS 
 
 tural interests by this connecting link between the great west and 
 the Panama Canal, and eastern markets along the Atlantic coast. 
 
 Resolution No. 6, Introduced by Z. Taylor Vinson, West Virginia. 
 
 Resolved, That the committee on resolutions be and it is here- 
 by requested to report the advisability of requesting Congress to 
 enact such legislation as will provide a suitable method of providing 
 for an equitable workingmen's compensation for injuries received, 
 and a modification of the Sherman anti-trust act so as to permit 
 reasonable trade agreements between those engaged in the mining 
 industry. 
 
 Resolution No. 6a, Introduced by E. T. Bent, Illinois. 
 
 Resolved, That the American Mining Congress hereby de- 
 clares in favor of the enactment of workmen's compensation laws 
 in the several states; that such laws should become the sole remedy 
 for those coming under its provisions; that they should either be 
 compulsory upon both the employer and the workman, or else op- 
 tional with both; that if optional, the workman must elect within 30 
 days after securing employment and before he is injured or the 
 compensation act applies; that there should be a permanent state 
 board to administer the act; that the advisability of inserting the 
 state insurance and state industry features be left open for local 
 determination; that if said features are not inserted mutual insur- 
 ance by industries be permitted by the act under proper regulations; 
 and that the pension payments instead of lump sums payments be 
 required, with "adequate means for commuting to a lump sum on a 
 proper showing either for the purchase of an annuity or for payment 
 to the said state board for the purpose of creating an annuity fund. 
 THE PRESIDENT: We will proceed with the regular program, 
 and first we will have a few remarks by Mr. John Mayer, Kansas City, 
 Mo., on workmen's compensation. 
 
 MR. MAYER: Workman's compensation is comparatively a new 
 thought out in the Southwest, yet we have had to meet it in one of our 
 states, Kansas, and will probably have to meet it in the other three 
 states covered by our association. 
 
 The reasons advanced for this kind of legislation are many and the 
 principal ones you are familiar with. Summed up it is the idea of mak- 
 ing the industry pay for ' everything that goes to make it a going con- 
 cern. The purchase of machinery and the repairs thereto, the loss in. 
 total if destroyed by fire or other accidents, are now made a fixed charge 
 and the claim is advanced that so also should there be made such a 
 charge for the loss of life or the crippling of employes, as they are 
 necessary to keep your institution a going concern. Society should bear 
 the burden by making the results of accidents an overhead or fixed 
 charge against the industry whether accidents occur to machinery or 
 men, and we have a more advanced idea that if this could be equitably 
 done that the present policy of leaving employes that have been totally 
 or partially disabled or their dependents in case of death, a charge upon 
 the public, will in a measure be done away with; they will be able to 
 care for themselves and thereby lessen the load of public charities which 
 is growing. 
 
 The thought is beautiful, but we must remember that human nature 
 is pretty generally alike the world over, and when we make legislation, 
 the selfishness and interest of all should be carefully considered. Com- 
 pensation for accidents is likely to become a reward for carelessness. 
 An industry may become an industrial pension bureau, and for these and 
 other reasons it is well to consider a few of the important points that 
 should be considered in such legislation. 
 
 We believe that such a law should be optional. We believe that 
 where the employer comes under the compensation law of a state that 
 the liability laws, if any there be, in that state should be modified so that 
 the employer could have at least the common law defense against the 
 
AMERICAN MINING CONGRESS 39 
 
 employe that refuses to come under the compensation law. The em- 
 ploye should not have two methods of procedure against the employer. 
 The employers' liability should be the compensation provided in the law 
 and should not be any more, under any circumstances. 
 
 We hold that the fund created to care for these accidents should be 
 contributed to by both employer and employe in a proportion to be found 
 just and equitable, and this for the reason that the fund then will be 
 more honestly guarded. When both parties to the fund are paying for 
 its maintenance they will jointly see that it is not plundered. 
 
 There may be reasons for different measures of compensation in 
 the different states owing to different wages paid or different physical 
 conditions, but we should try and have any measure recommended by 
 this Congress as general as it is possible to make it. As to the rules for 
 obtaining the measure of compensation, the creation of the fund from 
 which to pay the compensation and the rules regulating the handling 
 and safeguarding the interests of both parties, and so far as the coal 
 mining industry is concerned the state system of inspection, if a com- 
 mon fund is created, they should be so thorough and impartial that the 
 careful employer would not be called upon to help pay for the careless- 
 ness of some other employer. This brings us to the idea that we have and 
 that is that each employer should pay for his own accidents. This may 
 be argued against by some on the ground that the employe's may not be 
 able to collect what is due them from some employers and thereby lose, 
 but on the other hand these are the class of employers that will make 
 the burden of keeping up a common fund so great on the other employ- 
 ers that it may be necessary for them to refuse to come under the com- 
 pensation act and then liability laws will surely follow. 
 
 The measure of compensation should be adequate, but at the be- 
 ginning should be the minimum, as each succeeding legislature will see 
 that it is raised if at all possible. 
 
 Above all, this class of legislation should be as nearly uniform as 
 it is possible to make it in all the states, to obviate a certain class of 
 business in one state working under a much different law, and thereby a 
 different fixed charge for the production of its commodities, to come 
 in competition with a similar industry in an adjoining state. 
 
 THE PRESIDENT: An opportunity will now be given to any one 
 to discuss this question. 
 
 MR. Z. TAYLOR VINSON, West Virginia: Mr. President and 
 Gentlemen of the Congress: I think there are three or four tremendous 
 problems that have been presented by the previous speakers for your con- 
 sideration at this meeting. One of these problems is the matter of a proper 
 workingmen's compensation law. Another matter -which has been par- 
 ticularly pointed out is how best to secure Congressional action that will 
 modify or amend the Sherman anti-trust law so as to relieve us from 
 the cruelty of its operation. The operation of the anti-trust law and 
 its effect upon the coal industry and the best methods of changing or 
 modifying that law is as important for us to consider here and now as 
 the workingmen's compensation act. 
 
 My excuse for saying anything at this time is due to the fact that 
 I have been requested to prepare a bill for the consideration of Congress 
 at its next December session, having for its purpose the creation of a 
 National Mining Commission, vested with power and authority to (1) 
 prescribe rules and regulations for mining coal that will be real conserva- 
 tion of that great natural resource; (2) to prescribe rules and regulations 
 to prevent mine accidents and protect the health of miners; (3) to ad- 
 minister the provisions of a workingmen's compensation law provided 
 for in the bill; (4) and to pass upon and approve or condemn trade 
 agreements between coal producers, wherein such agreements would 
 lessen or limit to some extent the acute competition that now prvails 
 between them. 
 
 After consulting with those whom I knew could give me valuable 
 suggestions in getting the best opinions and judgment of men having 
 long experience in the coal mining industry, I am constrained to believe 
 
40 OFFICIAL PROCEEDINGS 
 
 that the creation of a Natonal Mining Commission to regulate the coal 
 mining industry along the lines of the Interstate Commerce Commission, 
 and one that will have universal and complete jurisdiction over the min- 
 ing business throughout the United States will solve, in the main, all 
 these problems. 
 
 At a former meeting of this Congress a committee was appointed to 
 investigate and prepare a bill for the various state legislatures to adopt, 
 having for its purpose the creation of a workmen's compensation law. 
 This committee has discharged its duty and made its report, filing there- 
 with a copy of the bill it proposes for the various legislatures to enact 
 into law. 
 
 From the preceding discussions and expressions of opinions it is 
 very evident that the success of any workmen's compensation law as 
 applied to the coal mining industry must be based upon the principle of 
 uniformity throughout the various states. I do not beli-eve it is possible 
 in the nature of things to secure anything like uniform legislation by the 
 legislatures of our states. We have heard these discussions and they, 
 have all been exceedingly able, offering good suggestions, indeed, but it 
 seems to me that if the interest of the coal mining industry as well as the 
 interest of the public is to be advanced, then it is necessary to get as far 
 away as possible from state control of that industry. 
 
 A DELEGATE: Is National control any better? 
 
 MR. VINSON: Yes, infinitely. Assuming that the Congress has 
 jurisdiction to enact legislation of this kind or purpose, let us see what 
 it means. The suggestions embodied in the bill which I have prepared 
 contemplate that there will be paid into the treasury of the commission 
 by the coal operator one cent per ton on the coal mined, and one per 
 cent to be deducted from the pay roll of the employes. That fund, based 
 upon last year's production, would amount in round numbers to $8,000,- 
 000, to be known as the Miner's Relief Fund, and as soon as a man was 
 injured at the mine he would be placed immediately under the jurisdic- 
 tion of the local physician, as all mines have local physicians. Let me 
 say, however, at this point, that the commission would be composed of 
 men who are skilled in the coal mining industry, from the mining to the 
 selling of it, so that their knowledge would be complete. They would 
 be selected from different sections of the country and each one would 
 be an expert in that business. 
 
 THE PRESIDENT: The Chair regrets very much to cut off such 
 an interesting discussion, but under the rule I am compelled to do it. 
 
 MR. S. A. TAYLOR, Pennsylvania: Mr. Chairman, I move that the 
 time be extended to Mr. Vinson to amplify his argument. I know 
 he is able to do it and it would be of very much more interest than 
 general discussion. 
 
 Motion seconded and carried. 
 
 MR. VINSON (Continuing): I want to thank you one and all for 
 this courtesy, and promise you that I will be as brief as possible. To 
 illustrate, a man is hurt; he is then put under the immediate care of the 
 local physician, and the physician from the commission, which would be 
 a federal employe located somewhere in the district, would go immedi- 
 ately and take charge, acting together with the local doctor. While the 
 injured man continued to be incapacitated his wages would go on and 
 would be paid out of the Miner's Relief Fund. After he has recovered, 
 the commission would cause a full investigation and report to be made of 
 the extent and permanency of the injury and would pay to him such 
 sum as would be a reasonable compensation for any permanent disability 
 which he had suffered. This plan of compensation I think is a great 
 advantage .over the employer's liability laws, because in the enforcement 
 of the liability laws it was very aptly stated this morning that it always 
 means fight and long and expensive litigation in the courts. Under acci- 
 dent insurance laws the reports and statistics show us that for every 
 dollar paid into the insurance fund it requires sixty cents to pay the cost, 
 expense and profits of administering that fund," and the man who is 
 entitled to compensation receives only forty cents on every dollar paid 
 
AMERICAN MINING CONGRESS 41 
 
 in for his benefit. By the plan proposed, the man who is hurt begins to 
 receive his compensation immediately, and if he recovers and is disabled 
 there will be an allowance made to him that is just and equitable, to be 
 ascertained and fixed by men who have full knowledge of the conditions 
 and who have no motive to do anything more than fair and exact justice 
 to that man. For these reasons I think 'the National Commission is 
 greatly to be preferred over any other method of providing a just com- 
 pensation for accidents and would certainly be superior to state super- 
 vision. In West Virginia and no doubt the conditions are similar in 
 other states it would be well nigh impossible to have so large a fund 
 of money administered properly and keep it out of politics. It is more 
 than likely, if not reasonably certain, that the distribution of such a 
 fund would be controlled by the political machine, to the detriment of 
 the men who are justly entitled to it. This plan would operate to give 
 the injured workman everything he is entitled to, and give it to him 
 at once, without court or jury or any legal proceeding, and even without 
 a demand, and the commission could give it to him in such sums and 
 in such manner as would best suit. his needs and wants. If he was the 
 kind of man that would probably take care of his money and invest it in 
 such a way as to secure to himself and those dependent upon him the full 
 benefits of it. the commission would probably pay ft all to him at once; 
 on the other hand, they would pay it out to him or his family in monthly 
 or weekly allowances, as the best interest of the beneficiaries might de- 
 mand. Of course in the event of his death, those dependent upon him 
 would be cared for and receive the fund in the same manner. 
 
 The idea is entertained by some that the employer should furnish 
 and provide the whole of the relief fund. I believe that better results 
 can be obtained if the employes contribute something to this fund, say, 
 on the basis of one per cent of their wages. This would amount, gener- 
 ally speaking, to forty or fifty cents per month, and the employes would 
 not feel it as a charge upon them, and yet it would relieve their minds 
 from the feeling that they were to some extent objects of charity. If the 
 party injured had contributed to the fund out of his own means, he 
 would feel, and justly feel, that he was entitled to this compensation as 
 a matter of right, and it would remove the idea of a charity or pension. 
 
 For the reason that the compensation would be just, and cover the 
 extent of the injury so far as money can compensate for such injuries 
 and the payment of it would be both immediate and certain, without 
 charge or cost or delay of any character, it seems to me that this plan 
 has a great advantage over any possible state action that we may hope 
 for; because, do the best we can and use our best efforts to have a uni- 
 form bill adopted by the legislatures of the various states, we could not 
 hope to accomplish this under eight or ten years' time, and then such 
 legislation would not be uniform. If this fund is to be provided by a 
 method that is uniform throughout all the states, it seems to me that a 
 National law is the only possible way to achieve that result. Then such 
 payments will, of course, in the first instance, be made by both employer 
 and employe, but it can be charged to and borne by the industry itself. 
 It will not have to come from the employer alone, nor from the employe, 
 but it can and will go into the cost of production and the consumer 
 must ultimately pay it, and this is a burden that the consumer ought to 
 bear. If we should have a workmen's compensation law in West Vir- 
 ginia, and you do not have it in Pennsylvania or Illinois, or other coal 
 producing states, then obviously the coal operators of West Virginia will 
 have to bear that burden alone, and it will be impossible under competi- 
 tive market conditions to bring about any uniformity unless all the states 
 adopt substantially the same plan, but if it exists in practically ihe same 
 degree throughout the whole country, then the burden would be borne 
 by all in the first instance and ultimately refunded by the consumer. 
 
 A gentleman pointed out this morning the fact that when you wear 
 out your machinery, tools and other implements used in the production 
 of coal, the depreciation or loss is charged to the cost of production. 
 Now, when we wear out human life and limbs in this industry, simple 
 
42 OFFICIAL PROCEEDINGS 
 
 justice demands that such loss should be charged to the cost of produc- 
 ing this commodity and should be paid ultimately by the consumer. 
 
 Let us consider for a moment, if you will pardon me, the operation 
 of the Sherman anti-trust law upon the coal mining industry, and par- 
 ticularly in this connection dp I desire your suggestions and your assist- 
 ance, for, not only are we as coal mining men interested in having laws 
 that will not depress our industrial enterprises, but the public at large is 
 vitally concerned in securing and maintaining that freedom of trade which 
 is consistent with the public welfare. In West Virginia the conditions are 
 such that neighbors and friends engaged in mining in the same neighbor- 
 hood and on the same seam of coal are such competitors in the market 
 for the sale of their product that whether they will or no, they are 
 absolutely destroying each other year by year and day by day All right 
 thinking men must conclude that that condition ought not to prevail in 
 any industry, but I assume that the same conditions do, as a matter of 
 fact, prevail in other states. I believe you will all agree with me that 
 if the Sherman anti-trust law is carried out and administered as it is 
 written, it will bankrupt 90 per cent of the industrial enterprises in this 
 country. The only reason that we have today for enjoying the industrial 
 and commercial prominence that we do is due entirely to the fact that 
 the department of justice has been unable to execute the law, owing to 
 the magnitude of the undertaking. The operation of that law naturally 
 and necessarily if enforced means the "survival of the fittest." The small 
 mine with an annual production of 100,000 tons located along side the 
 large company that produces 2,000,000 or 3,000,000 tons can not sell or 
 dispose of its coal for less than 10 cents a ton; he cannot produce it 
 within eight or ten cents a ton as cheaply as the larger concern, and, as 
 a consequence, the 2,000,000 ton production goes into the market in com- 
 petition with the 100,000 ton production, having advantage of \2 l /> to 15 
 cents a ton in a lesser cost of production. 
 
 If we have a continuation of the Sherman anti-trust law operating 
 and driving the small concern and the big companies into competition 
 and enforcing that competition all the time, the result is that the little 
 man must go out of business, although there is no unfair or illegal meth- 
 ods of competition practiced by the larger concern. The big producer 
 has the ability to secure large contracts at advance prices. He possesses 
 in many instances machinery, cars, docks, depots, boats and storage 
 plants that are denied to its smaller competitors. The big concern elimi- 
 nates the middle-man, his expenses and profits, and such a continual and 
 forced competition, where the struggle is so unequal, must ultimately 
 drive the little producer out of business. 
 
 I think you will quite agree with me that something must be done 
 to save the "small producer from destruction, and I have been unable to 
 think of anything better than the establishment of the National Commis- 
 sion about which I have been talking. This commission would have the 
 power, and it would be its duty to ratify and approve any reasonable 
 contract or agreement between the smaller producer and the larger one 
 that would eliminate the cost of sales and introduce greater economics in 
 production. Or, if he desired to sell or lease his plant to the larger con- 
 cern, the commission could grant him the privilege of doing so, without 
 being subject to indictment and fines or imprisonment. But as the law 
 stands today, if he were to undertake the execution of a plan whereby the 
 smaller plant should desire to enter into trade agreements with the 
 larger one, the lawyers in the case would tell him that he is in great 
 danger of indictment and ultimately of serving a sentence in jail. 
 
 If this commission of expert coal men had jurisdiction of these mat- 
 ters and could administer the fund raised for the compensation of in- 
 jured miners, it then ought to go further; it ought to have the power 
 to prescribe the rules and regulations for the safe mining of coal. They 
 could prescribe such rules much more intelligently than any legislation 
 could possibly do it. You can select from this audience five men that 
 would be infinitely better qualified to say how your mines in Illinois 
 shall be served, how much air should be provided in this one and what 
 
AMERICAN MINING CONGRESS 43 
 
 should be done to that one, than would be possible for your legislature. 
 If this industry can be administered by the wisest, most experienced and 
 ablest men connected therewith, then we may expect the best possible 
 results; otherwise, I do not believe that we will be satisfied, or rather, I 
 might say, our efforts here will not be as successful and will not help the 
 industry as a whole over -all the country nearly as much as if we had it 
 under one general governing power, composed of men of your own kind. 
 MR. E. M. DELAVERGNE, Colorado: You did not state, I believe, 
 who would pay the commission for the physician in the case. 
 MR. VINSON: That would be a government expense. 
 MR. DE LAVERGNE: You spoke of competition cutting the 
 throats of these producers. You did not suggest any regulation that 
 would prevent the producers cutting the throats of the consumers. 
 
 MR. VINSON: The check on that would be in the hands of the 
 commission. If the producers went to the commission with a trust or 
 monopoly agreement asking the commission to approve it, they would 
 not approve it. In other words, the commission would stand not only 
 to protect the coal producers, but the public as well. 
 
 MR. S. A. TAYLOR: Mr. Chairman and Gentlemen: In answer 
 to one argument that Mr. Mayer raised, I would just like to 
 call attention to Sections 5 and 6 of this law. In discussing this matter 
 we have had just the argument brought before us that Mr. Mayer has 
 raised, and I think if you read those two sections you will find that they 
 take care^of that very thought, namely, that the party who is injured is 
 in a position to elect to take the compensation and he is virtually 
 estopped from proceeding against his employer under ^the liability act. 
 The wording of these sections is very concise and I will just read them: 
 
 Sec. 5. The provision made for indemnity of employes under 
 this Act is and shall be construed as being in lieu of and in satis- 
 faction of all claims for indemnity against any employer by any 
 employe by reason of any injury received in the course of his em- 
 ployment, and the acceptance of any benefit under the provisions of 
 this Act by any person or persons shall constitute a bar against any 
 action brought by any such person against his said employer on 
 account of any such accidental injury. 
 
 Sec. 6. The institution of any suit in law or equity by any em- 
 ploye against his employer for damages on account of personal in- 
 juries received in the course of his employment as aforesaid, shall 
 constitute a forfeiture of said employe's right to receive indemnity 
 from the fund herein provided for and the amount to which said 
 employe would in the absence of such suit be entitled to receive from 
 such fund, and in addition thereto his proper court costs expended in 
 defending such suit shall be paid by the State Auditor (or other 
 agency authorized to administer the fund) to said defendant employer 
 upon the termination of such suit to reimburse him to that extent 
 for the judgment and costs for which he may become liable in any 
 such suit; the total amount of such payment, however, shall not ex- 
 ceed the sum of five thousand ($5,000) dollars. 
 
 The point I wish to make is that in the preparation of this law not 
 only have we discussed this thoroughly, but it was discussed by various 
 members of the association before this committee took it up, and the pri- 
 mary object was this: If the person maimed or killed chose to enter suit 
 against his employer, he would then not be permitted to get the benefit 
 of this act. They either had to do one thing or the other. After they 
 chose to receive the benefits under the compensation _act they were 
 estopped to proceed under the liability act. I believe" this could be 
 modified to make that clear. 
 
 MR. MAYER: This law does not make an employe come 
 under. You catch my remark? In other words, it is not com- 
 pulsory, Mr. Taylor, for an employe to come under this bill. He is 
 free to take either horn of the dilemma. If he has got liability legisla- 
 tion he will take liability legislation, especially if all your defenses are 
 removed like fellow servant, hazardous risks and contributory negligence. 
 
44 OFFICIAL PROCEEDINGS 
 
 If you have got those liability measures on your statute books as there 
 are in some of our statutes, and you pass this bill, you can't compel the 
 employe to come under this bill, and if you can't compel him to come 
 under this bill he can then, if he has a good case against you, sue you 
 under the liability act and stick you for any amount up to $100,000 for 
 permanent disability. If it is a poor case he will take the compensation 
 provided in this bill. For instance, if he hasn't got any case he will take 
 the benefits under the measure here, but if you have got laws on your 
 statute books against you, which many of us have, he will take whichever 
 horn of the dilemma will amount to the most for him, and what we main- 
 tain is that in passing this legislation that the defenses, those particular 
 liability measures, applying to our business, should be removed. 
 
 MR. S. A. TAYLOR: Replying to that question, I will say that 
 came up in some of the states and if they were not entitled to sue under 
 the employers' liability act, they were entitled to sue under common 
 law. In other words, an act such as this is questioned because it raises 
 the question whether any man can be deprived of his common law right 
 to sue for damages. 
 
 MR. HpRACE J. STEVENS, Michigan: That is not a common law 
 privilege, it is a statutory provision. The liability legislation is a statu- 
 tory measure. 
 
 MR. S. A. TAYLOR: I understand that, but suppose, as in many 
 cases, the states do not have a liability act and yet under the common 
 law he can sue for damages, so that there is a question in drawing this 
 bill whether any bill could be drafted by which the common law provision 
 would be set aside; and in that event these two clauses that were placed 
 in here were put there with that express purpose, that if they could force 
 them to elect whichever benefit they would take, after they had chosen 
 they would be estopped to proceed under the other. 
 
 MR. E. L. DELESTRY, Minnesota: Mr. Chairman and Gentlemen- 
 lam not interested in coal mining, but I represent such immense interests 
 in metal mining in seven different states that I believe I may be heard 
 just for a moment and give you the experience we just had a few months 
 ago with a similar measure in the state of Minnesota, which fell by the 
 wayside by adverse decision of the supreme court. I wish to go on 
 record here once and for all and as heartily supporting the metal states 
 of the southwest in the position taken by Mr. Vinson of West Virginia. 
 To attempt any state legislation to meet this issue is a hopeless task. 
 
 I was one of the committee appointed by the governor to frame 
 a workmen's compensation law for the state of Minnesota. One-half of 
 that commission was taken from the ranks of labor; the other half was 
 divided into operators in iron, miners of building stones and manufac- 
 turers. We endeavored to place upon labor its just burden of the com- 
 pensation act, and we have had sittings daily for three months and pre- 
 pared the bill which we believed was equitable and wise, placing upon the 
 ranks of labor 25 per cent of the charge of the compensation, and we 
 placed in that bill a repeal of all liability acts then in existence. We 
 sent that bill to the legislature, and it was passed. The very interests 
 whom we tried to benefit, the laboring element, instituted a suit and beat 
 us out in the supreme court this last year. Now you gentlemen speaking 
 for the coal industry must kindly remember that some of us have similar 
 interests in the metal mining industry, and if you are going to pass a 
 workmen's compensation act we ought to have something to say on 
 that subject. It was the metal industry that secured for you the Bureau 
 of Mines. It was the metal industry that spent its time and money in 
 Washington, and while we are tickled to death to have the coal men come 
 in even at this late day and join hands, let us go along the lines of least 
 resistance, and the suggestion from the gentleman from Virginia is in 
 my opinion the only practical conclusion which we as mining men and 
 employes can ever reach. 
 
 I had not intended to take part in this discussion. I would not go 
 before another state legislature to try to get a compensation act through, 
 
AMERICAN MINING CONGRESS 45 
 
 either in Minnesota or in Arizona, for all the gold there is in our moun- 
 tains. 
 
 Now, gentlemen, if we have succeeded to get in the entering wedge 
 by the creation of the Bureau of Mines, and there is the man (referring 
 to the Secretary) you have got to thank as. one of the men of five on 
 our committee who was always on the job. (Applause.) We did the very 
 best we could. We took what we could get as an entering wedge, and 
 we even suggested the men who should run that bureau. Gentlemen, 
 this is just the beginning of big things to come if we are to protect the 
 industry, whether it be coal mining or what not, and the workmen's 
 compensation system must be uniform and applicable to every branch 
 throughout the United States or the United States Supreme Court will 
 knock it higher than Gilroy's kite. You can't go in*o any state and single 
 out one industry like coal mining and say we want this tax it must be 
 made to apply generally. 
 
 I have heard in the discussion something about paternalism in Ger- 
 many. Thank Heaven we don't have to go to Germany. I know what I 
 am talking about, because I studied in Heidelberg for four ye~ars. We can 
 go to the Government of the United States and get such a measure as 
 this advocated by Mr. Vinson, and my friends in Congress will surely 
 support it and each industry that I represent will support it, providing the 
 old liability legislation is wiped out. You have 44 states to fight with on 
 one hand where you won't succeed, where you have only one United 
 States Government, and when you get an interstate commerce proposi- 
 tion you will succeed. (Applause.) 
 
 MR. STEVENS: Mr. President, I would like to ask one question. 
 If we secure a national compensation act along the lines suggested by 
 the gentleman from West Virginia we will have left the specific statutory 
 law providing for the collection of damages or the common law under 
 which damages' can be collected in every individual state in the Union. 
 We will be caught coming and going, too. 
 
 MR. DE LESTRY: We have today a railroad commission to regu- 
 late railroad rates, and an interstate commerce court of last resort. 
 That sticks, doesn't it? 
 
 MR. C. C. WOODSON, Arkansas: I wish to say this: Las* 
 vinter we had a proposition something like this before the legislature 
 at Little Rock, and there was one railroad attorney who came before 
 the committee and said that the money which the railroad people paid 
 out did not go to the man who was damaged in many instances. It 
 went to attorneys, for court costs, and other things. He said the year 
 before they paid out something like $1,200,000. He said some of it 
 was spent very unjustly. There was one party who got $35,000, while 
 probably 75 per cent of the cases that come before the court had been 
 beaten, and he felt as a railroad attorney that if some kind of com- 
 pensation bill could be worked out that it would be better for the labor- 
 ing people, better for the working people, because 75 per cent of them 
 that take cases into court get beaten. If- some kind of equitable measure 
 could be gotten up through Congress or some other way whereby the 
 employes of the company when they were injured could get a certain 
 amount of wages so as not to increase the cost that they had been to 
 in this suit, it would be satisfactory to their railroad, and it struck me 
 as a mining operator that it was a very good thing. Just like the gen- 
 tleman from Kansas City, I don't feel that we ought to adopt a resolu- 
 tion asking Congress to tax 1 cent a ton for all the coal mined and then 
 let the man who had a good case against us come in and sue for dam- 
 ages and get $25,000. If they did I would not be in business long. I 
 am not competent even to serve on a committee to consider these 
 things, but these are points that the gentlemen v/ho are on this com- 
 mittee should think about very seriously, and if we can work out this 
 question through a compensation 'bill covering everything, why I say 
 we ought to enter into it, whether metal miners, coal operators, or 
 what we are. 
 
46 OFFICIAL PROCEEDINGS 
 
 MR. VINSON: May I answer the question asked me by the 
 gentleman from Michigan? I had in contemplation that the Federal 
 action in taking charge and jurisdiction and control of this matter 
 would take the whole thing entirely out of state jurisdiction under the 
 provision of the Constitution, that the Constitution of the United 
 States and-- the acts of Congress are the supreme law of the land, 
 placing us under the same jurisdiction precisely as that creating the 
 Interstate Commerce Commission, which has denied to all states and 
 state officials any interference with interstate commerce. This is Inter- 
 state business pure and simple. As the gentleman said, who has just 
 spoken, the very fact that this law would provide that the party who 
 was injured would get his compensation would be: forever a bar from 
 bringing or maintaining any suit; in other words, the operator would 
 nay one cent a ton for complete indemnity against all suits. 
 
 MR. STEVENS: It might be absolutely unconstitutional. 
 
 MIR. VINSON: As to the legality of that I have got a brief upon 
 the subject, and I will be very glad to furnish the gentleman a copy. 
 
 MR. GLENN W. TRAER, Illinois: I wish to ask for informa- 
 tion. Is it the view of the committee that this bill will protect the 
 employer by reason of its providing that in the case of a suit by the 
 employe under the common law or the ordinary statutory rights and 
 a judgment in his favor, that this commission shall reimburse him? 
 Is it the belief that the employer will thereby be fully protected against 
 any sum that juries may see fit to give in an ordinary accident law? 
 It seems it has limited the maximum amount which may be paid from 
 this fund to reimburse for damages. In 'Illinois we frequently have 
 verdicts much in excess of $5,000, and the verdicts are increasing right 
 along. 
 
 MR. J. W. DAWSON, West Virginia: Of course the committee 
 understood judgments against employers would exceed $5,000, but they 
 thought that the amount, $5,000, would equal the average amount of 
 judgments that would be recovered against employers, and they did 
 not think it wise to make it too large, for the reason it might run up, 
 unnecessarily, and the charge would not let them out. 
 
 MR. TRAER: I would like to ask- whether the committee then 
 took into account the possibility that as soon as juries should learn that 
 an employer was going to be recompensed in these ordinary actions at 
 law out of this fund, as soon as they should "learn that, what means 
 could be employed to prevent them from simply increasing the ver- 
 dicts which they had been in the habit of giving so far, and which, .as 
 I say, are increasing continually? What means could be employed in 
 the view of the committee to prevent juries from simply making the 
 verdict larger? 
 
 MR. DAVID ROSS, Illinois: I will say briefly in answer to Mr. 
 Traer, that the principal consideration that the committee had in mind 
 upon that proposition was to take this class of cases out of the juris- 
 diction of juries altogether. We have had now too much litigation on 
 this subject, and it is not a legitimate subject for court decision. The 
 entire purpose of this legislation is to dispense .with the necessity of 
 having lawsuits, and the experience of countries where such laws have 
 been in operation has been to do away practically with the necessity 
 of litigation at all. Now even in the governments from countries whose 
 constitutions are very much different from ours, they do not recognize 
 individual rights to the extent that republics have done, but in the 
 fundamental law of those countries the right of an individual to sue 
 his employer to recover damages is recognized and is fundamental. It 
 is a serious question in law whether that privilege can be absolutely 
 abridged; the bulk of legal judgment is that it cannot, and that you 
 cannot under any system of compensatory legislation, or of liability law, 
 take that privilege from men whether they be citizens of American 
 republics or subjects of foreign countries. Under the British com- 
 pensation law less than 4 per cent of damage claims have been liti- 
 gated; 96 per cent of them have been adjusted without question, and 
 
AMERICAN MINING CONGRESS 47 
 
 settled to the satisfaction of everybody under the compulsory law of 
 that country, and that seems to be the experience of all the other coun- 
 tries that have had occasion and the necessity of enacting legislation 
 such as that here proposed. Unfortunately, Mr. Chairman, it is more 
 of a legal question than it is an industrial issue, arid that is the obstacle 
 today in the state of Illinois and in all the other states of the Union, 
 and in the Federal Government. It is a question of just how far you 
 can go in the way of law. To what extent can you determine and 
 measure the rights of men? By what legal plan are you going to decide 
 upon the equities between men and men? It is a legal question now, 
 unfortunately so. We nave been compelled here in Illinois in legislat- 
 ing upon this subject, to make our law optional. Practically ten other 
 states in the last year and a half have enacted optional law. That 
 means that the individual can accept the compensation provided for 
 in the compensatory law, or that he might elect to disregard the com- 
 pensation and sue under the general liability law. "Jhe opinion of the 
 appellate court of New York, declaring invalid,' the compensation 
 law of that state because it was compulsory, has induced the. other 
 legislatures to pass such optional laws. The only general distinction 
 in the list of progressive states on this subject is that of Washington. 
 Instead of proceeding as we did in Illinois and in the other states pass- 
 ing laws providing for specified benefits, in Washington they have exer- 
 cised what you might call the revenue power or the taxing power of 
 the state, and providing for taxing, if you please, the different hazardous 
 occupations, and from the proceeds of such taxation secure sufficient 
 revenue to pay the compensation provided for in the law. Under that 
 act while it is supposed to be a denial of the individual, legal idea of 
 freedom of contract, as generally understood, the supreme court of 
 the state, and providing for taxing, if you please, the different hazardous 
 taking the view that inasmuch as it deals directly with the health and 
 welfare and safety of the great wage-earning class of the state it comes 
 necessarily within the police power of the state, and under that phase 
 of the constitution the supreme court of the state of Washington has 
 affirmed the validity of that law, and that act will be passed up for the 
 consideration of the Federal Supreme Court of our country; and prob- 
 ably in view of educational influences that are everywhere at work on 
 this and other problems affecting our life and our government, that 
 court when it commences to consider that question may take the same 
 view as the same court took on another question involving the real or 
 presumed rights of individuals as it did in a case coming from the state 
 of Oregon. The Federal Supreme Court affirmed the law of Oregon 
 on the question as to the hours that women should be permitted or 
 compelled to work, and it may continue that good work, as I hope it 
 will, by endorsing the validity of the law of Washington making abso- 
 lutely compulsory the compensation for accidents. We are coming to 
 it and I don't think we can evade it. The issue is here in Illinois and 
 has been for years back, as it is in every other industrial state of the 
 Union. 
 
 THE PRESIDENT: I regret that I am compelled to cut short 
 this discussion, but your time has expired. 
 
 Upon motion additional time was given. 
 
 MR. ROSS: I had practically finishe'd with that branch of the 
 argument. I simply want to emphasize and call attention to the ex- 
 cuses that the average man has got to make to his better judgment as 
 a reason why he is against certain proposed laws. When this matter 
 came up originally nobody seemed to be seriously concerned about it, 
 but when public attention was riveted on it, when it threatened to 
 become the subject of law and of legislation, then the interest that 
 seemed to be against the trend of such legislation urged that they were 
 in sympathy with the tendencies of such laws, but in order to make 
 them effective it was necessary that they should be made uniform, and 
 that none of us could move until every one of the 93,000,000 of people 
 in this country were ready to move. That condition has never hereto- 
 fore prevailed, and it never will. You have got to begin these great 
 
48 OFFICIAL PROCEEDINGS 
 
 reforms in the localities where the sentiments in their favor demand it, 
 and that argument, that objection, has been urged before and can be 
 urged against any proposition. It was urged by the employers of 
 Massachusetts fifty years ago when the legislature of that state for 
 the first time proposed the imposition of certain so-called restrictions, 
 providing certain regulations in behalf of men and women engaged in 
 the production of the wealth of that state. The manufacturers of Mas- 
 sachusetts made the objection, offered the criticism that localized em- 
 ployers are urging against this law, that its adoption would handicap 
 them as competitors; that they would be shut out of the markets, and 
 that it would mean ultimately ruin to their business. As a theory that 
 looks all right, but it doesn't work out that way in practice. The manu- 
 facturer of Massachusetts lived long enough to realize that what they 
 supposed was a handicap in business ultimately proved to be a com- 
 mercial and economic advantage, and they never lost their place in the 
 industrial scale, because of standing for and because of being primarily 
 compelled to observe and ,adopt such regulations. Now, we hear the 
 echo of that historic measure from certain states that have not yet 
 sufficiently progressed to adopt such legislation as your report endorses; 
 and that the employers living in the states yet under the old common 
 law liability would be at an immense advantage over the employers 
 conducting their business in states where compensation systems prevail. 
 I think they have got the reverse English on that. I think that this 
 advantage would be against the employer who is willing to stand the 
 expense incident to the eternal test of what a man might recover under 
 a general liability law, and not against employers who had come under 
 reasonable compensation legislation. 
 
 I want to say to the employers of labor and the delegation to this 
 convention is made up largely of that class of men, and I like it for that 
 reason, I like to think that this program has gone far enough to receive 
 a favorable consideration and the adoption of a report from a com- 
 mittee representing your membership as employers of labor who are 
 ready and willing .to take this important matter out of the hands of 
 pettifogging lawyers and center it on a basis of humanity, settle it on 
 a basis of right, on a basis of honest business. I want to say to that 
 class of employers, whatever state you may come from, that when your 
 state adopts this proposition, when you know for a certainty just what 
 you have to do with people in the way of costs, and when the men 
 whom you employ know when an accident occurs to them what is com- 
 ing to them, without the necessity of a lawsuit, it will reduce the cost 
 of production, it will multiply the profits to capital and enhance the 
 labor. Let us take the great broad view of the proposition. Let us be 
 governed, Mr. Chairman, as far as we can, by the experience of others, 
 and let us confront the facts fairly and fully and not waste our time 
 dilly dallying with mere theory and indulging in baseless fear. I thank 
 you. (Applause.) 
 
 DR. E. R. BUCKLEY, Illinois: I would like to make this one sug- 
 gestion if I may. I am very much interested in this discussion, but I ap- 
 prehend that this entire matter will come before the resolutions commit- 
 tee, and that it will probably be threshed out by the resolutions commit- 
 tee and then brought on the floor of the Congress, and it is very likely 
 that the gentlemen who* are speaking now will wish to be heard on that 
 resolution, and I would suggest that as the time is getting late and we 
 are still on the forenoon program, that the discussion be postponed 
 until the time the resolution comes before the resolutions committee 
 and later before the Congress. 
 
 THE PRESIDENT: Doctor, I think you are misinformed. This 
 is a report of a committee, and it is now before the convention for its 
 adoption or rejection. 
 
 DR. BUCKLEY: I would move you then, Mr. President, that the 
 report of the committee be referred to the resolutions committee for 
 their consideration. 
 
 Motion carried. 
 
AMERICAN MINING CONGRESS 49 
 
 MR. HARRY S. JOSEPH, Utah: Before offering a motion that 
 I desire to propose I wish to say that some of us who have been attend- 
 ing the Congress from year to year in looking around among this gath- 
 ering miss an old and familiar face, that of Col. Dorsey, who has gone 
 to the Far Beyond since our last meeting. I move you, Mr. Chairman, 
 that it be the sense of this convention that the committee on resolu- 
 tions bring in a suitable resolution of respect in honor of Col. Dorsey, 
 he having served this Congress in the capacity of director for many 
 years. 
 
 MR. S. A. TAYLOR: I want to second that motion, but I wish 
 to state that already there has been under consideration not only Col. 
 Dorsey, but several other prominent mining men, with the intention of 
 bringing in a resolution for each one of them. 
 Motion unanimously carried. 
 
 THE PRESIDENT: We will now be favored with an address on 
 "The Copper Industry," by Horace J. Stevens, Houghton, Michigan. 
 . Mr. Stevens' paper will be found at page 146 of this report. 
 
 THE PRESIDENT: The next subject is a very important one 
 and is to be discussed by the different state mine inspectors in attend- 
 ance, "How to prevent Mine Accidents." The subject is now open for 
 discussion. I am sure there are quite a number of mine inspectors here 
 as delegates, and I hope that some of them are in attendance this after- 
 noon so as to speak to us on this subject. 
 
 MR. S. A. TAYLOR: There are quite a number of the mine in- 
 spectors in attendance, but they have evidently left the room, and I 
 would suggest that that subject be left for tomorrow morning. 
 
 THE PRESIDENT: If there is no one here to speak on that 
 subject we will proceed to the next one, "Federal Investigation of Ore 
 Treatment Problems," by Mr. W. N. Sear<!y, Silverton, Colorado. 
 Mr. Searcy's address will be found at page 196 of this report. 
 MR. H. O. GRANBERG, Colorado: Mr. Chairman, I would like 
 to know if General Irving Hale is here, and whether that part of the pro- 
 gram will be discussed. 
 
 SECRETARY CALLBREATH: Mr. Hale is not here. He is 
 very ill, having suffered a stroke of paralysis about ten days ago. We 
 have a statement by the other two members of his committee that in 
 consequence of the illness of General Hale it* will be impossible for 
 them to make a report. 
 
 MR. GRANBERG: I would like to hear something on that sub- 
 ject. I have some information that I would like to impart to the Con- 
 gress on electrical smelting of the precious ores. 
 
 SECRETARY CALLBREATH: This committee had nothing to 
 do with that. Its work covered only electrical installation in mines. 
 
 MR. S. A. TAYLOR: Your committee on electrical standardiza- 
 tion for coal mines have no special report to make other than to 
 report progress and to state t hat the report which they made 
 to the last convention in Los Angeles was adopted almost verbatim 
 by the- Pennsylvania state legislature in their mining laws this last 
 year, with only a few minor changes to comply with certain statutory 
 rights and duties imposed on mines by other officers of the state. 
 Outside of that, Mr. President, it was adopted practically verbatim. 
 We have had no objections to the report made to the last Congress; 
 on the contrary, we have received a great many very commendatory 
 letters from different sections of the country, stating that the practices 
 suggested in that report were in their judgment proper. I presume that 
 this year will show forth the weaknesses, if there be any, in that report 
 in the actual practice, or rather putting it into practice in the state of 
 Pennsylvania. Outside of that we have nothing to report but prog- 
 ress, and we would suggest that this same committee be continued. 
 There is a possibility that this year we may receive some suggestions 
 along the line of modification after the actual putting into practice of 
 our report. 
 
50 OFFICIAL PROCEEDINGS 
 
 MR. GRANBERG: I would like to inquire if this committee on 
 the use of electricity in metal mining will be continued, owing to the 
 absence of Mr. Hale, or will that subject be^under discussion now or 
 at some future time? 
 
 THE PRESIDENT: That is entirely a matter for the conven- 
 tion to decide. 
 
 MR. GRANBERG: It is a subject that I am very much interested 
 in, and I would like to see that subject opened up and discussed. I 
 haVe made a close study of it for some time and I don't think it should 
 be passed without discussion. It is too bad the chairman of that com- 
 mittee could not attend. 
 
 THE PRESIDENT: In view of the fact that the committee is 
 not ready to make a complete report and the suggestion by one of the 
 gentlemen, I think it would be a good idea, if there is no objection, 
 that that committee may be continued for another year. There being 
 no objection that committee is continued. 
 
 Whereupon an adjournment was taken until 8 o'clock p. m. 
 
 WEDNESDAY, OCTOBER 25, 1911. 
 Evening Session. 
 
 The meeting was called to order by Mr. S. A. Taylor. 
 
 THE CHAIRMAN: The first paper we will have this evening will 
 be by Mr. Glenn W. Traer, Chicago, on the subject "Anti-Trust Laws 
 in Their Relation to the Mining Industry." 
 
 Mr. Traer's paper will be found at page 270 of this report. 
 
 THE CHAIRMAN: I am sure we have listened with a great deal 
 of interest to Mr. Traer's paper. We have another paper by Mr. D. W. 
 Kuhn, of Pittsburgh. Mr. Kuhn is unavpidabliy absent, and Mr. James 
 W. Wardrop, of Pittsburgh, will read his paper. 
 
 SECRETARY CALLBREATH: Mr. Chairman, I would like to say 
 that Mr. Kuhn understood he was to be here tomorrow night, and that 
 we were to have this part of the program at that time, but the order was 
 changed to meet other conditions, and in consequence of that Mr. Kuhn 
 is not able to be here. Mr. Kuhn will be here at the time originally 
 fixed for the discussion of the subject. 
 
 Mr. Wardrop then read Mr. Kuhn's paper, which will be found at 
 page 257 of this report. 
 
 Mr. Walter Williams, of Illinois, then addressed the convention 
 wpon the subject discussed in the two "previous papers. 
 
 Mr. Williams' address will be found at page 280 of this report. 
 
 THE CHAIRMAN: Mr. Chapman, we would like to hear from you. 
 
 MR. H. L. CHAPMAN, Ohio: Mr. Chairman and Gentlemen: 
 I can say I am fully in accord with the ideas presented in thje two ad- 
 dresses that have been read on this proposition here tonight, and 
 those of the gentleman who has just spoken. I hope that something 
 will be brought about as the result of this discussion before the Congress 
 that will benefit the coal industry of the country and get it out of the 
 chaotic and disastrous condition in which it now is. 
 
 Whereupon an adjournment was taken until 10 o'clock a. m. Octo- 
 ber 26. 
 
 THURSDAY, OCTOBER 26, 1911. 
 Morning Session. 
 
 The meeting was called to order by President John Dern. 
 
 THE PRESIDENT: The convention will please come to order. 
 I believe the secretary has some announcements to make. 
 
 SECRETARY CALLBREATH: I am requested by Mr. Eli T. 
 Connor to request all members of the Mining and Metallurgical Society 
 of America to meet in the red room immediately upon the adjournment 
 
AMERICAN MINING CONGRESS 
 
 51 
 
 of the session. The visiting ladies are requested to meet in the red room 
 at 1:30 o'clock sharp. The local committee has arranged some entertain- 
 ment for visiting ladies. 
 
 The resolutions committee has been only partially selected. Those 
 states which are not represented should provide a representative this 
 morning because the time is short which the committee will have to 
 work, and the committee is in session right now. The other states 
 should act as promptly as possible. I will call the roll, and the states 
 that are not represented will kindly respond at once. 
 
 The Secretary then called the roll of the states and the membership 
 of the resolutions committee was announced as follows: 
 
 COMMITTEE ON RESOLUTIONS. 
 
 Alaska, George E. Baldwin. 
 Alabama, Dr. E. A. Smith. 
 Arkansas, J. E. Finney. 
 California, -Nat H. Wheeler. 
 Canada, H. H. Lang. 
 Colorado, E. M. De LaVergne. 
 Georgia, E. L. Martin. 
 Idaho, Ralph Nichols. 
 Indiana, Jabez Wooley. 
 Illinois, David Ross. 
 Iowa, G. F. Kay. 
 Kansas, J. N. Hodges. 
 Kentucky, C. J. Norwood. 
 Michigan, F. W. McNair. 
 Minnesota, C. E. VanBarneville. 
 Missouri, W. J. Jenkins. 
 Montana, F. W. C. White. 
 Nebraska, Erwin H. Barbour. 
 
 New Jersey, Henry B. Kummel. 
 New Mexico, T. H. O'Brien. 
 New York, W. W. Miller. 
 N. Carolina, Dr. Joseph Hyde. Pratt. 
 Ohio, Lewis T. Wolle. 
 Oklahoma, James Elliott. 
 Oregon, T. C. Burke. 
 Pennsylvania, Eli T. Connor. 
 South Carolina, H. L. Scaife. 
 South Dakota, W. J. Blake. 
 Texas, R. J. Broman. 
 Utah, Harry S. Joseph. 
 Vermont, George B. Milne. 
 Virginia, Van Ness Hermancc. 
 Washington, A. J. Reed. 
 West Virginia, Z. Taylor Vinson. 
 Wisconsin, Prof. W. O. Hotchkiss. 
 Wyoming, George L. Black. 
 
 THE PRESIDENT: At yesterday's afternoon session we passed 
 one of our most important subjects for the reason that quite a number 
 of the state mining inspectors were absent. ( As this is an important 
 theme we thought best to postpone it until this morning so as to give 
 all of those men a chance to speak on the subject of how to prevent mine 
 accidents, under the ten minute rule. Understand, no one is to speak 
 longer than ten minutes as we have an extensive program for the day. 
 I will first call on Mr. James Taylor, state mine inspector of Illinois, who 
 will lead the discussion: 
 
 MR. TAYLOR: Mr. President and Gentlemen of the American 
 Mining Congress, and Ladies: One of the most important subjects 
 before this Congress is that of mine accidents in and about coal mines. 
 It is a question that has been discussed in our National organization of 
 inspectors, and we feel as inspectors of coal mines that there should 
 be a change. Since this Congress has convened eight persons in Illinois 
 were killed in a coal mine on Monday, simply because the one necessary 
 thing to prevent accidents is individual effort of each and every person 
 in or about coal mines was lacking. Our system of mining coal is radi- 
 cally wrong, and the time has come, gentlemen, when the inspectors feel 
 that a change should be made for the benefit of those working in and 
 about coal mines. You can legislate all you please, that is not going 
 to prevent accidents in our coal mines. 
 
 I desire, Mr. Chairman and Gentlemen, to read from my report to 
 the Labor Bureau of Illinois, made two years ago. "In my text at that 
 time I wrote the following. You will find it on page 351 of the coal 
 report for 1911. 
 
 Mining Laws Printed in Foreign Languages. 
 
 The greatest number of accidents in coal mines occur singly, and 
 should teach us the importance of individual effort in preventing 
 and reducing their numbers. 
 
52 OFFICIAL PROCEEDINGS 
 
 The increase in the number of non-English speaking miners, 
 renders a close oversight over these workmen imperative; they 
 should receive such instructions and training as would enable them 
 to take care of themselves and those with whom they are working. 
 
 When we take into consideration that the majority of the 
 men now mining coal in this state are unable to speak the English 
 language, we shall better understand the importance of educating 
 and training of this foreign element, who are not only foreign to 
 our language, but are entirely foreign to any knowledge of our 
 methods of coal mining. 
 
 I would suggest, that a set of questions be arranged, with 
 answers, in the various languages and given to each foreign miner 
 working in or about our coal mines; and he should not be allowed 
 to work alone in a coal mine until such time when he is able to 
 speak and understand the following English words and phrases: 
 Want props; way to escape shaft; way to hoisting shaft; air-course; 
 close the door; fire, bad roof; set a prop; look out; roof falling; keg 
 of powder; explosion; gas, danger, keep out; have no light on head 
 when handling powder; get on the cage; get off the cage. They 
 should also be thoroughly instructed in the state code of signals, and 
 how to reclamp the hole in the powder keg after each charge is 
 taken out. The Slav, Pole, Hun or Italian is not willfully more 
 careless than the American speaking miner, but he is inexperienced 
 and ignorant of our language, hence the necessity of his being taught 
 the meaning of such words and phrases as have been mentioned, 
 before he is permitted to work by himself in or around a coal mine. 
 He should also be required to work with a foreign, American speak- 
 ing miner, until such time that he is competent to understand and 
 speak the foregoing English words. The mining law should be 
 printed in the principal foreign languages parallel with the English 
 language. 
 
 Regulation of Electrical Mining. 
 
 The increase in the number and use of electric mining machines 
 and motors has been noticed during the last few years, and nowhere 
 more marked than ia connection with coal mines of this state. 
 
 The electric mine locomotive has done for underground haulage 
 what the trolley car has done for the surface. It has come to stay 
 with us and must be taken into account in the product of our mines. 
 Up to this time we have no legislation in Illinois regulating the 
 installation of electric machinery in coal mines. No one can deny 
 that there is danger connected with the use of electric power in 
 and about mines, yet there has been no law enacted along these 
 lines. 
 
 In compliance with section 12, paragraph (i) of the general 
 mining laws, I would recommend the passing of an act regulating 
 the installation of electric machinery in and about coal mines and 
 establishing a standard method and practice in installing electric 
 machinery in mines. 
 
 First Aid Work in Case of Accidents. 
 
 I am desirous of seeing at each mine in this district, the estab- 
 lishing of first aid companies, or squads; the results of first aid 
 work in case of accidents cannot be too highly commended, it not 
 only trains men, immediately available for rescue work at time 
 of an accident, but prompt treatment given the injured prevents 
 unnecessary suffering. 
 
 The importance of this work should be recognized by all opera- 
 tors of shipping mines not only of this district but of the state, 
 and I hope that they will take the matter under advisement; and 
 if any coal company or set of miners desire to establish a first aid 
 squad and will let me know, I shall be glad to help, and do all in 
 my power in teaching such a squad*how best to perform this human- 
 itarian work at our coal mines. 
 
AMERICAN MINING CONGRESS 53 
 
 I would_ appeal for volunteers from each mine in my district 
 to form a first aid squad, the work must be entirely voluntary, and 
 no pecuniary inducements of any sort are to be considered. I will 
 endeavor to prevail on the coal companies to furnish all equipment 
 necessary so that men volunteering for this work will be put to no 
 personal expense; however, I desire that every man shall feel that 
 he is doing philanthropic work and may thereby possibly save the 
 life of many badly injured miners and be the means of placing them 
 in the hands of a surgeon in a much better condition than would 
 be possible without the first aid work. 
 
 In case of accident the essential points are a knowledge of 
 what to do; promptness; self-possession and perseverance. Who 
 will make the first call? What coal company will be the first to 
 provide one or more cars for no other purpose than to be used 
 in conveying injured persons in your mine to the surface. They 
 should be long, low, and wide without ends, having a spring mattress 
 to support the stretchers. Such a car will save many a miners life. 
 MR. TAYLOR (Continuing): Gentlemen, I spoke of our sys- 
 tem of mining coal. Our system is wrong. As one of the inspectors 
 of Illinois I have again and again remonstrated against our sys- 
 tem. Our system of miring coal should be classified. It is a trade, 
 and the men that we have today handling powder in aur mines should 
 be selected. Some men in our coal mines are fit for nothing else than 
 to load coal; others should handle the powder, fire shots; others should 
 handle machinery, and when this classification comes to us I feel that 
 our accidents, at least in Illinois, will be reduced. Each individual should 
 be taught that he is responsible for certain conditions. Most of you 
 know that some time ago here in Illinois it was the lack of individual 
 effort on the part of two men at the Cherry disaster that caused 265 
 men to lose their lives. It is the lack of individual effort in every acci- 
 dent that we have ever had in the state of Illinois. Individual effort 
 should be made, and if it were made these accidents would be reduced. 
 For that reason I am in favor of the classification of workmen in our 
 mines. Who was called upon to take the responsibility of the disaster 
 at Cherry? Who was called upon to risk their lives? It was the mining 
 inspectors of Illinois. We are the fellows. They think it is our duty. 
 Gentlemen, I want to say that no person in this meeting today is more' 
 anxious, more interested in the reducing of accidents in and about the 
 coal mines than your state mine inspectors. (Applause.) 
 
 MR ANDREW STEVENSON, State Mine Inspector, Michigan: 
 Mr. Chairman and Gentlemen of the American Mining Congress: I have 
 listened very attentively to the remarks that have been made by the 
 delegates to this convention and I think many of them have been appro- 
 priate to this occasion. But, while the discussion was going on, I 
 thought how much grander it would be if the remarks were put into 
 practice. You are all aware of the fact that actions always speak louder 
 than words. Words in this day and age without work are like faith 
 without works, both being alone. Gentlemen, when the Honorable 
 Chase S. Osborn, Governor of Michigan, gave me my commission to 
 attend this convention as a delegate, if I understand the Governor right, 
 and I think I do, I do not believe it was his intention that I should 
 come here to see and be seen, but as a disciple to learn and listen to 
 the arguments and ideas presented here by the able men that attend 
 this convention. 
 
 I would like to make a few remarks along -the lines of the dis- 
 cussion yesterday in regard to compensation and what should be done 
 in order to prevent so many serious disasters happening in the future 
 as there have been in the past in the coal mines of the United States. 
 I do not think I could do better on this occasion than to tell a little of 
 my practical experience as a miner. I recollect not long ago one case 
 in particular of a man who was hired to mine coal. He was given a 
 place to work in and a kit of tools and mining supplies, but after being 
 shown his place to work he did not know anything about coal mining. 
 
54 OFFICIAL PROCEEDINGS 
 
 He was at a loss to know what to do in order to get coal ready for 
 the next day. He depended solely on the men around him for informa- 
 tion of what he had to do to mine coal. I remember the advice one 
 of the miners gave him. He said: "Inasmuch as you do not know 
 anything about coal mining, I will show you how it is done." He showed 
 him where to drill a hole and told him how much powder to use. He 
 said to him: "After the cartridge is made place one end of the fuse 
 in it and split the other end, then light -the fuse and run to a place of 
 safety." But, instead of the man cutting off three or four feet of the 
 fuse, which would have been sufficient for that shot, he put one end 
 of the fuse in the cartridge and split the other end of the coil some 
 fifty feet in length. Gentlemen, that is a sample of the men that are 
 sometimes hired to mine coal. If that man had been injured, or if he 
 had injured or killed some one else, either that day or a month or so 
 later, would he have been responsible? Not knowing the dangers at- 
 tached to coal mining, I do not think he^would, neither do I think com- 
 pensation should coyer a case of this kind. What the miners want is 
 a preventive for accidents along these lines. 
 
 I know of another case which happened where a man was given 
 work "and when lunch time came the men working around him invited 
 him to come out and have lunch with them, but, instead of that, he 
 got his pipe and tobacco and commenced searching for a match after 
 hunting around for some time he finally found one in his coat pocket. 
 That man had never been in a coal mine in his life before, and was so 
 unaccustomed to the use of a lamp that had he not found a match in 
 all probability he would have gone without a smoke all day. What the 
 miners want are laws to prevent men of that kind from being injured 
 in the mines or injuring any one else. 
 
 Again, .we will say that we have many mines that have electric 
 plants installed for the purpose of running coal cutting machines and 
 motors for hauling coal. The system of haulage may be motor or the 
 head and tail rope, but there is no other way for the men to go to and 
 from their work but on these haulage roads, and in going or coming 
 from his work the miner may meet a trip of coal cars and in a hurry 
 to get to a place of safety his light goes out, leaving him in darkness. 
 In order to get out of the way of the trip he squeezes into the first 
 "opening to avoid the cars, but being in the dark he may not be clear 
 of the track. When the trip comes along he probably is injured or killed. 
 Would compensation be a remedy for a case of that kind? The miners 
 think not. It is a preventive they want for such a case. 
 
 In some of the same mines there is considerable powder used, 
 but, in order to save the coal company the expense of building a special 
 car that would be non-conductive of electricity, and paying a man to 
 take the powder in when there is no current on the wires, the company 
 will send that powder down in the morning, put it in a steel or iron 
 car and tell the mule driver to take it in with him. The probabilities 
 are, just as it happened the other day when eight men lost their lives, 
 that he may run into a live wire with that car load of powder. It ex- 
 plodes and the man is killed. Is compensation to cover a case of this 
 kind? No; it is a preventive that we want. 
 
 In regard to cages and how constructed. We have laws that say 
 every hoisting shaft must be equipped with substantial cages fitted to 
 guides running from the top to the bottom; said cages must be safely 
 constructed; they must be furnished with suitable iron covers, not less 
 than three-sixteenths of an inch in thickness, to protect persons riding 
 thereon from falling objects. The cages must be equipped with safety 
 catches, which catches must be examined daily by the mine owners or 
 their representatives. Cages, catches and rope fastenings shall be ex- 
 amined daily, and cages tested by drop quarterly, and a record of these 
 examinations shall be kept by^ the company. Now, that part of the 
 law is all right, but when the*coal companies do that, does it justify 
 them when they put on hoisting ropes in leaving them to remain on 
 until they become crystallized or brittle and break? When nine times 
 
AMERICAN MINING CONGRESS 55 
 
 out of ten the cage never stops until it reaches the pit bottom, if it 
 should happen that there were men on the cage when the rope breaks, 
 and there have been cases of that kind, there can only be one result 
 and that is the men on the cage are killed. Now, I think what the miners 
 want is that every precaution should be taken for their safety in the 
 line of hoisting ropes. Then, when that is done and an accident happens, 
 give them compensation. 
 
 We have mines running today that have veins of coal five or six 
 feet in thickness, and are 'Worked under the room and pillar system. 
 I will say, to' illustrate a case in one of these mines, there is an entry 
 with twenty or thirty rooms turned off it. Ten or twelve of the rooms 
 may have been worked out and part of the pillars between rooms drawn, 
 letting the roof fall, perhaps to the height of twenty or thirty feet, or 
 perhaps to the rock which may be a few feet more or less. That being 
 a gaseous mine gas no doubt would accumulate in that dome or high 
 place. The wrecks of the rooms still standing, air, if there was any in 
 circulation in those abandoned rooms, would not go any higher than 
 the thickness of the vein of coal. Some day a miner may be passing 
 these abandoned rooms when a fall of slate would take place where 
 the gas has gathered, driving the gas out on the miner's naked light. 
 The result would be an explosion. If it should be a dusty mine perhaps 
 causing a dust explosion, killing all the men on the entry. Now, I 
 believe the miners want laws that will compel coal companies to exercise 
 all due precaution in the operating of their mines, so that accidents 
 could not happen along these lines, and that no foul nor obnoxious 
 gases that are dangerous to breathe could get out of these abandoned 
 rooms and get mixed with the air that men have to breathe to the 
 extent that their health would be impaired. 
 
 Then, again, we will say that there are mines here in Illinois and 
 in other states that have been running for thirty or forty years, and 
 the escape shaft may not be over lOCTfeet or so from the main hoisting 
 shaft; while the working places may have been extended back a mile 
 and a half or perhaps two or three miles. When the men are all at 
 work a fire may take place and the men cannot reach the escape shaft 
 nor the main hoisting shaft, just as in the Cherry disaster. What would 
 be the result? The men would lose their lives. Would compensation 
 be any recompense for the mothers, wives, sisters and little orphan 
 children who had lost their dear ones in that mine? No, indeed! What 
 I think is required is a law enacted whereby accidents could not happen 
 from such causes. 
 
 The subject of compensation is secondary to that of mine fatalities. 
 They have been occurring so often in the past that we think something 
 should be done to try and stop accidents happening from the sources 
 that I have mentioned. Give us laws of that kind and see that they 
 are rigidly enforced. I realize that just as long as there are coal mines 
 and railroads there will be accidents, but let us see to it that we try 
 every way in our power to make them as few as possible. 
 
 MR. H. S. JOSEPH, Utah: I move you, Mr. Chairman, that the 
 subject matter contained in the annual address of the president of the 
 Congress be referred to the committee on resolutions, with instructions 
 to draw up such ajesolution as the matter in the address may suggest. 
 
 (Motion carried.) 
 
 MR. JOHN VERNER, Iowa: Mr. Chairman and Gentlemen of the 
 American Mining Congress, I was not aware until a few moments ago 
 that I would have the privilege to address you on the subject of mine 
 accidents and I shall only state very briefly my views as to the funda- 
 mental requirements for their prevention. This morning I saw displayed 
 on the floor below a number of appliances intended to be used to provide 
 an increased measure of safety to life and property in the mines. These 
 appliances have merit, and commendation is due the men who invented 
 them and placed them on the market, but the fact .remains that the 
 mere providing of mechanical devices, commendable as it is, cannot be 
 depended on to assure safety. It has just been said by Mr. Taylor of 
 
56 OFFICIAL PROCEEDINGS 
 
 Illinois, that individual effort is required for the elimination of mine 
 accidents and I fully agree with him, but I desire to add that individual 
 effort, supplemented by the intelligent co-operation of all mine employes, 
 promises still better results, for the safety of a mine depends and must 
 always depend on the combined efforts of all connected with it, from 
 the trapper boy to 'the superintendent and manager, and in order that 
 these efforts may produce the best effects, it is necessary that the mine 
 worker be taught to understand and appreciate the nature and possible 
 extent of the dangers incident to mining, to the end that with the full 
 knowledge of these facts he may be better prepared to protect himself 
 and others against these dangers and that he may also more fully 
 realize the need and value of prompt and intelligent action to prevent 
 them from getting beyond control. The human factor in the prevention 
 of mine accidents is paramount and the man who, in case of an incipient 
 mine fire, for instance, uses his dinner pail filled with water or his coat 
 promptly and effectively to put out the fire, is of vastly more importance 
 in the preservation of life and property than the installation of many 
 alarm gongs in a mine or even a well equipped fire fighting apparatus 
 stored at the bottom of the shaft or possibly on the outside. (Applause.) 
 
 THE PRESIDENT: Is Mr. Rotting of Washington present? We 
 are waiting for Mr. Botting to return, and I will call on Mr. Rutledge 
 of Illinois in the meantime. Is Mr. Rutledge present? 
 
 During the short intermission, waiting for Mr. Botting to return, 
 I will give the members present an opportunity to introduce any resolu- 
 tions which they may wish to introduce this morning, which would 
 come under the beginning of our regular program for this morning. 
 
 The Secretary then read resolution No. 7, which was referred to 
 the committee on resolutions. 
 
 Resolution No. 7, Introduced by H. O. Granberg, Colorado. 
 
 Whereas, There are known to be several experimental proc- 
 esses for the smelting and refining of metals and some in practical 
 operation on iron and magnetic cobalt and nickel, silver ores, and 
 
 Whereas, It is claimed this system is capable of recovering 
 a larger percentage of all metallic values than has ever been recov- 
 ered by any method heretofore employed; therefore, 
 
 Be It Resolved, That the American Mining Congress appoint 
 a committee of three members, consisting of one electrical engineer, 
 one metallurgist, and one metal mine operator, to fully investigate 
 the practical and commercial utility of the several systems now 
 claiming to smelt and refine metals by the electrical process. 
 
 THE PRESIDENT: Mr. H'. G. Davis of Pennsylvania. 
 MR. DAVIS: Mr. President and Gentlemen. of the American Min- 
 ing Congress: At my own solicitation I am glad to have the opportunity 
 to stand before you today as a representative of the hard coal mines. 
 We. in the anthracite region of Pennsylvania have our accidents and 
 they are very numerous. During the last four or five years we have 
 made special efforts with the intention of reducing these accidents. 
 
 We have-had organized in the various towns and cities in the region 
 what are known as district mining institutes under the auspices of the 
 Y. M. C. A., and the mining men of the different localities in Lacka- 
 wanna, Luzerne and Schuylkill counties, and we feel as though we are 
 up against a proposition that we cannot remedy or relieve very greatly. 
 It is true that the number of accidents have been reduced by the con- 
 certed and individual efforts made along this line, but we do not feel 
 that we are in a position as yet to make any boasts with regard to it. 
 However, we want to say to you that we are victims of circumstances. 
 
 Mr. Taylor of Illinois just told us that the system is wrong. That, 
 of course, refers to Illinois. Our system is also entirely wrong. The 
 Welsh, English or German or other intelligent miners have all been 
 ostracized or banished from our region. We have a law that compels 
 an intelligent man to work in pur mines two years as a laborer before 
 he can become qualified as a miner, with the result that the non-English 
 
AMERICAN MINING CONGRESS. 57 
 
 speaking miner comes to our regions, and" he has friends or he makes 
 friends very shortly, through whom he secures a miner's certificate. We 
 have a board of examiners composed of about twelve miners for each 
 county, who are supposed to examine these miners, and the applicants 
 are supposed to be intelligent enough to answer- twelve questions in the 
 English language before they can receive a certificate of competency. 
 How they get those certificates we are unable to tell, but an applicant 
 comes to the top of our shafts or slopes, and, of course, he is asking 
 for a chamber (thus meaning a place to cut coal). The mine foreman 
 says: "Do you understand gas?" He doesn't understand the question. 
 And then this question is put to him in this way, he says, you forstay 
 gas? Oh, yes, me forstay gas. Me burn gas in number eleven, and me 
 burn in Malby. He knows all about it. He has been burned by gas 
 twice. (Laughter.) Now, the mine foreman has very little choice. I 
 know of one mine foreman in the city of Wilkes-Barre, who once said 
 "I will not employ any of those fellows if I don't get a car of coal out." 
 That was several years ago, and he kept that up until he had 133 places 
 standing idle. That is quite a proposition. The superintendent finally 
 told him you have got to hire some one to get coal out. What did he 
 do? He was compelled by force of circumstances to employ men who 
 really didn't know anything about mining, but they were qualified by the 
 state board of mine examiners. 
 
 Now, as one of the individuals who has got to contend with these 
 circumstances and their results not a mine inspector, however, but 
 I want to say for the mine inspectors of the anthracite region that they 
 are all a conscientious lot of fellows. They generally live a considerable 
 distance from the mines, and before they know of the mine fires we 
 generally put them out. (Laughter.) Before they read in the morning 
 papers that we have had an explosion, the dead and injured are all 
 taken care of, and then the mine inspector does his part. (Laughter.) 
 
 I don't know anything about Illinois coal inspectors, but I don't 
 want the anthracite inspectors to get the credit that belongs to others, 
 and permit me to state to you, gentlemen, that the mine, foremen and 
 mine superinendents are the men who are generally on the ground when 
 the accidents occur, and are the men who are supposed to face the 
 music. They have to contend with the conditions existing and not the 
 mine inspector, as described by Mr. Taylor to this Congress. I do not 
 know, of course, what the conditions are in the state of Illinois, but 
 am satisfied that the men behind the guns in the state of Pennsylvania, 
 especially in the hard coal fields, are the mine foremen and the mine 
 superintendents, but what I wish to say is this, personally, I have no 
 objections to the law qualifying a miner, but I do object when an Eng- 
 lishman or Irishman or Welshman, or any man who has practically 
 been brought up in the coal pit, comes to our region and is compelled 
 to work for two years as a laborer for a Polander who never saw a 
 coal mine in his life, before he can be qualified as a miner. It is true 
 he can lie and he can get somebody to vouch for him, and within three 
 weeks after he reaches us he can be qualified as a miner. Now, I have 
 always thought that the law is wrong in the first place. There should 
 be no specified time, in other words, cut out the service clause. I am 
 willing to qualify a man and I am willing to put him on his merits, and 
 I believe that the accidents in our mines are to be reduced only by the 
 concerted effort and the individual effort and the education of the men 
 that have got to work in the mines. I know of no other way to do it 
 better than that. I don't believe you can make laws that will do it. 
 We have in Pennsylvania laws enough to take care of the coal mining 
 industry in the United States and the United Kingdom together. 
 (Laughter.) What do they amount to? Nothing. We have rules of 
 the company that I work for and we, ourselves, violate them sometimes. 
 We ought not to have any rules that we cannot enforce. We ought not 
 to have any rules that we could not insist on being obeyed at all times. 
 
 Gentlemen, I think it is up to the Mining Congress and other mining 
 institutions of this state to request the gentlemen who a.re representing 
 us at Harrisburg to repeal the law. (Applause.) 
 
58 OFFICIAL PROCEEDINGS 
 
 THE PRESIDENT: Is Mr. Botting here? 
 
 MR. D. A. BOTTING, State Mine Inspector, Washington: Mr. 
 Chairman and Gentlemen of the Congress: I didn't come here prepared 
 to make any speech on mine accidents. I have listened with a great 
 deal of interest to Mr. Davis of Pennsylvania giving the mine inspectors 
 a rub, but I don't altogether agree with him on that. Mine inspection 
 is one of the problems that all states have to contend with. The great 
 trouble I find in the duty of mine inspection is that the mine inspector 
 is not clothed with enough authority to enforce his ideas or even enforce 
 the laws on the statute* book. We have a lot of laws in the state of 
 Washington, and I think there are laws in the other states, too, and 
 when we close a mine down the operator has a chance to go to court 
 and put the case before the judge as to why we shut it down, and he 
 goes back to the state board of mine inspectors as to the reason. In 
 plain English, the mine inspector is between the devil and the deep sea. 
 He has got the mine examining board on one side and the mine opera- 
 tors and the mining engineers on the other, and if he goes into court, 
 or if he doesn't go to court, the question is turned over to the state 
 mine examining board. If they see fit to turn down his rulings or 
 opinions on this particular question he has to go away back and sit 
 down. 
 
 Now, mine inspectors in my opinion, the majority of them, are 
 very hard working officials. I was the only inspector in our state for the 
 last seven years. Last year I had an assistant given me. I worked 
 probably more hours than any other man in the state of Washington. 
 I have been subject to telephonic and telegraphic communication for 
 eight years and I never had a vacation. I have, however, given this 
 matter considerable study and I believe that one of the things that 
 has never been discussed and which every inspector has to go up against 
 in preventing mine accidents is that you have got to get at. the indi- 
 vidual as well as the operator. In the old countries, like France, Ger- 
 many and Belgium and England, they provide punishment for the indi- 
 vidual for the violation of the laws and rules governing each town, 
 and I think that the mine inspector should get down and advocate 
 a law of that kind in the United States and every state in it, and then 
 we will begin to cut down our individual accidents. I find that in going 
 to our mines the miner is working at the face of the roof, probably 
 they are back fifty or sixty feet from the face. We have a cap rock 
 in our district and it sounds pretty good, and all at once the rock goes 
 down, and two men gone. Now, those men should be liable to punish- 
 ment for not keeping the timber up in the mine. And if they fail they 
 ought to be punished. If they keep the timbering up the cap rock would 
 have no chance to come down. I don't know how many of the inspectors 
 will agree with me on that proposition. But I think that is one of 
 the weak parts in all state mining laws, that there is no provision whereby 
 a miner can be punished for violating the laws and rules, outside of 
 removing the gas light or something of that kind. They are not subject 
 to punishment for the negligence which causes those individual accidents. 
 Now, in my state I will give you an illustration of what occurred 
 two years ago last February. An accident occurred in a little mine in 
 Lewis county. I had intended to put on safety lamps, but there was 
 very little gas in there, I thought, it was only in driving the chutes. I 
 had permitted the men to keep a safety lamp open up to this time and 
 every once in a while a fellow got burned and probably two, and there 
 was a fellow killed. I issued an order that they should put safety lamps 
 in that mine. Now, I want this Congress to understand that it was 
 not once in three weeks that there was gas in those chutes. The result 
 was that thirty-five of the miners quite that day, and the superintendent 
 sent for me and told me he could not run the mine. I told him "I don't 
 care whether he ever run it or not," and I have not had a man burned 
 in those chutes since, and that is going on three years. (Applause.) 
 
 My idea of preventing men being burned in any mine where gas 
 is generated, and I don't care whether it is once a month or once in six 
 
AMERICAN MINING CONGRESS 59 
 
 months, if you work that mine with safety lamps you are not going 
 to have any men burned. In our country the mining conditions are very 
 much different from most of the mines in the east. We mine coal from 
 seven up to eighty degree pitch. We work in those pitches and in some 
 of those leyels, and we mine coal as high as 800 feet off the level, and 
 carry our timbers, and the men use only our safety lamps all the time. 
 While it may be inconvenient for most of the men, it is better to have 
 a little inconvenience than to have men killed. I got a law through 
 our legislature two years ago, not this last session providing that no 
 safety lamps should be used in the mines unless they were hermetically 
 locked. The reason I did that was that I found upon searching the differ- 
 ent men that every once in a while I found a key in a fellow's pocket that 
 would open those lamps, and I began the system of making search. 
 After I found those keys I punished those men, and that is one of the 
 offenses they can be punished for in our state, that is, for carrying keys 
 to open those lamps, and we fined a great many of them $75 and costs. 
 That didn't stop the practice at all, so- I got back and cut out the key 
 lamps entirely. I have the fire boss use a key lock lamp. I found that 
 on two occasions here in the last year that two of my fire bosses got 
 burned just from haying that privilege. They got up into the fields 
 and backed down a bit and thought there was no gas there, opened the 
 lamp and struck a match, and two of them were in the hospital for 
 two months. 
 
 One of tl\e other things for which I made provision was to have 
 signs up one foot wide and two feet long, indicating the direction of 
 escape out of the mine. I am now one of the mining commissioners, 
 appointed to revise the mining laws of our state, and I propose to insert 
 in the laws of our state a law that every employe has got to walk out 
 through the escape at least once a month. (Applause.) I would like 
 to have the mine inspectors say that the employes should be punished 
 for the violation of mining rules. (Applause.) 
 
 THE PRESIDENT: .Gentlemen, I think this concludes this dis- 
 cussion, and you will now have the pleasure of listening to an address 
 by one of your directors on the subject of the present condition of the 
 coal mining industries, Mr. B. F. Bush of St. Louis. (Applause.) 
 
 MR. A. J. MOORSHEAD, Missouri: Mr. Chairman and Gentlemen: 
 I am here representing Mr. Bush, who, I regret to say, was unable to 
 be here. When I was in Mr. Bush's office the other day he introduced 
 me to some .gentlemen and he said there that next to himself I was* 
 the greatest coal miner in this country. I replied and said that I had 
 questioned his title to first honors for several years, that every time 
 that I had undertaken to do it he knocked me down, and a gentleman 
 present said: "That is nothing, you got away lightly, he killed a man 
 here this morning." (Laughter.) 
 
 Mr. Chairman and gentlemen, I hardly feel that I am a fair repre- 
 sentative substitute to prepare and read an address for Mr. Bush. How- 
 ever, on account of other duties, it was a matter of impossibility for 
 him to take up the subject and be here, much as he would have liked 
 to have attended. 
 
 Mr. Moorshead's oaper will be found at page 246 of this report. 
 
 THE PRESIDENT: Gentlemen, while we no doubt all regret 
 very much that Mr. Bush could not be with us and present his views 
 in person, yet we believe that Mr. Bush in selecting Mr. Moorshead 
 has chosen a very capable substitute. The subject just treated by Mr. 
 Moorshead is now open for discussion. I am sure there are other gentle- 
 men who wish to speak on this matter and I will call upon Mr. Walter S. 
 Bogle of Chicago. 
 
 Mr. Bogle's address will be found at page 254 of this report. 
 
 Whereupon an adjournment was taken until 2 o'clock p. m. 
 
60 OFFICIAL PROCEEDINGS 
 
 THURSDAY, OCTOBER 26, 1911. 
 Afternoon Session. 
 
 The meeting was called to order by the President. 
 
 THE SECRETARY: The members of the resolutions committee 
 will meet in the red room at the north end of the hall at once. The 
 committee is now in session. 
 
 MR. H. S. JOSEPH, Utah: Mr. Chairman, I would like to have all 
 those who introduce resolutions appear before the resolutions com- 
 mittee, inasmuch as the committee will consider all resolutions that have 
 already been introduced this afternoon. We would like the gentlemen 
 who introduce resolutions to appear for hearing before the committee 
 now. 
 
 The Secretary then read Resolution No. 8: 
 
 Resolution No. 8, Introduced by Glenn W. Traer, Illinois. 
 
 Whereas, The bituminous coal mining industry of the United 
 States is in a condition which is harmful to the public interest and 
 is disastrous to all who are interested in or dependent upon -such 
 industry; and 
 
 Whereas, This condition very largely has been brought about 
 and has been seriously aggravated by unwise laws which are de- 
 structive or repressive in their tenor and effect, even as now con- 
 strued by the highest court of the land; and 
 
 Whereas, The present form and spirit of such laws, as con- 
 strued by the courts and expounded by the highest public officials, 
 tend to the unnecessary and avoidable waste of an exhaustible 
 natural resource which in indispensable to the life of industry and 
 civilization; and therefore be it 
 
 Resolved, That it is the sense of this Congress that the anti- 
 trust statutes, both Federal and state, should be so amended as to 
 (a) state plainly that contracts or combinations for the regulation 
 of industry shall not be condemned 'as criminal or held invalid be- 
 tween the parties, except to such extent as they may be proven 
 materially harmful to the public interests; and (b) that provision 
 be made for the creation of a National Trade Commission and of 
 similar commissions in the respective states, which shall have sole 
 original jurisdiction for determining prima facie the legality of such 
 contracts or combinations, subject to the right of Appeal to the 
 upper courts by the public officials or interested parties. 
 
 SECRETARY CALLBREATH: The resolutions committee desires 
 to announce its wish to have all resolutions introduced before the ad- 
 journment of the morning session tomorrow, and to state that it will not 
 consider resolutions introduced after noon of tomorrow. 
 
 THE PRESIDENT: A resolution was adopted yesterday instruct- 
 ing the Chairman to appoint a committee to draft an amendment to 
 the by-laws so as to admit coal operating organizations and kindred 
 organizations to affiliate with this Congress. I desire to announce that 
 I wish to appoint Mr. E. T. Bent, of Illinois; Mr. E. L. De Lestry, of 
 Minnesota; Mr. D. MacVichie, of Utah; Mr. J. W. Dawson, of West 
 Virginia, as such committee, and I would further suggest that inasmuch 
 as our Secretary is very familiar with our by-laws and articles of incor- 
 poration, that he be added to such committee as ex-officio member. 
 If there is no objection to that, it will be so ordered. 
 
 (At this point Vice-President S. A. Taylor, of Pittsburgh, took 
 the chair.) 
 
 THE CHAIRMAN: We will now take up the unfinished morn- 
 ing program, and the first on the program is Mr. Harry D. Turney, 
 of Columbus, Ohio. Is Mr. Turney in the room? It appears not. The 
 next is Mr. W. R. Woodford, of Pittsburgh. He is not here. Mr. Kuhn 
 was to take his place. I believe he is not here. The next is Mr. James 
 Elliott, of Oklahoma. 
 
AMERICAN MINING CONGRESS 61 
 
 MR. J. E. FINNEY, Arkansas: Mr. Chairman, Mr. Elliott was sick 
 and could not be present and asked me to read his paper for him. 
 
 Mr. Elliott's paper will be found at page 221 of this report. 
 
 THE CHAIRMAN: We will now call upon Mr. Walter Calverley, 
 of Windber, Pa. 
 
 MR. CALVERLEY: Mr. President and Gentlemen of the Conven- 
 tion: Until a few moments agcr I had no intimation that I would be. 
 asked to talk, and I am at a loss to know where to start. As I look upon' 
 the question under discussion, it would seem to me more a question to 
 be discussed from the commercial end of the coal mining business, and 
 this is the end of the coal mining business with which I have had very 
 little to do. 
 
 You will excuse me if I depart a little from the subject matter 
 under discussion. I have heard some discussions in this hall in which 
 various ideas were advanced upon the prevention of mine accidents, and 
 also some good discussions about providing compensation for workmen 
 in case of accident. Let me say right here that I am fully convinced 
 that some plan must be worked out in the very near future, which 
 will provide compensation to those so unfortunate as to be temporarily 
 or permanently incapacitated from following their usual occupations, 
 so as to provide a weekly or monthly income while the injured party 
 or parties are convalescing. Of course, we all know that we will always 
 have mine accidents just as long as we engage in the exploiting of differ- 
 ent coal fields. However, there is one unfortunate thing to be deplored, 
 and that is that the public is given to believe that the men engaged 
 in the coal mining industry, having invested their money in coal lands, 
 are interested only in getting that money out again, and have little regard 
 for human life; these captains of industry have been pronounced the 
 "Romanovs" of the American coal fields in some of our leading journals. 
 I have seen many of them make great sacrifices, yet they are not given 
 any credit for providing any safeguards, or giving any thought whatever 
 to the care and protection of their workmen. I have had thirty years' 
 experience in mines in this country, and ten years' experience in England, 
 and I am proud to be able to state that mining has made some rapid 
 advances along the right line. I feel that the miners labor under better 
 conditions than they ever did before in the history of coal mining. I 
 also feel that while the operators can certainly do more than has been 
 done heretofore, we are forced to the conclusion that we must have the 
 co-operation of the workmen themselves; without this there is a limit 
 as to how much we can accomplish. 
 
 One of the real problems in coal mining is the education of 
 the miner. Last year I visited Europe and set foot upon my native 
 soil for the first time after an absence of thirty years, and I 
 went to see what the mining conditions were like as compared with 
 the mining conditions and practices in this country. I could not 
 help being strongly impressed as I looked across some of the working 
 faces down the shaft mines I visited by the way the men did their 
 work as compared with the men I have to handle on this side. I feel 
 that if we had the same class of labor in our mines as the labor I found 
 in the mines of Great Britain and Germany, we would have a different 
 tale to tell than that which we have to tell today. I know in my sphere 
 of experience, I am safe in saying that ninety per cent of the men who 
 work at the face of the coal come from Continental Europe, and they 
 have had little or no experience in mining prior to coming to these 
 shores, and a majority of them are not able to speak or even understand 
 the English language. I am pleased to note, however, that we are mak- 
 ing some little change for the better in this direction, and we ought 
 to have them thoroughly understand the rules and regulations, and have 
 them impressed with the importance of strictly observing and being 
 guided by the same. In the mines under my charge I have rules hanging 
 up in a conspicuous place not only the rules prescribed by the state law 
 but rules that we have made ourselves with a view to safeguarding 
 our employes. It is almost a daily occurrence that we have to discipline 
 
62 OFFICIAL PROCEEDINGS . 
 
 some of the men for violating these rules. I think, though, that by 
 having our overseers, mine foremen and assistant mine foremen, mingle 
 among the men and use every endeavor to inculcate proper ideas and 
 habits among them, that they must necessarily absorb some of these ideas 
 and habits and thereby reduce the casualty list and accomplish some 
 good. I might relate several instances where accidents have happened 
 that it has been my experience to deliberately pull men out of dangerous 
 . places, and insist upon their making 'themselves safe, and as soon as 
 my back was turned they would deliberately go back into the very same 
 place of danger; these are things of every day occurrence. Most of 
 the accidents that happen in mines are due to the willful neglect of 
 ordinary precautions which should go with coal mining. 
 
 The labor question is one of the serious questions that confronts 
 us, and we must give due consideration to the source from which most 
 of the common labor comes, and their previous experience in industrial 
 life. This thing of not employing men in the mines until they are able 
 to speak the English language, and have had experience in coal mining, 
 is not to be treated seriously at this time. Years of experience do not 
 serve to make all men cautious. Another thing, the demand for coal 
 during the past few years, by reason of the 'phenomenal industrial 
 growth, has been such as to make it absolutely necessary to employ any 
 man that came along, to be able to meet the demands of the market. 
 Now, we would never think of sending a man into the mine to work by 
 himself if he was ignorant of mining. There are perhaps some cases 
 where such has been done, but it is not the rule by any means to send 
 a man ignorant of mining into the mine unless he is accompanied by 
 some one conversant with mining. Some of the discussions upon the 
 subject have been dwelt upon as to the cause of serious accidents by 
 some of the inspectors. I have every regard for the state inspectors, 
 and it has been. my experience to see some of them play noble and heroic 
 parts. I have also seen the men upon the property ready to step to 
 the front in times of accidents from explosions or other causes, ready 
 to risk their lives when necessity called for the rescue of unfortunates 
 who might have been in the mine when the catastrophe took place. It is 
 altogether proper to give credit where credit is due, and the public must 
 believe that a large majority of the men in charge of mines, and those 
 owning mines, are just as humane in their feelings as men engaged in 
 any other line of business, and I think that they have shown the whole 
 world on many memorable occasions that they have the courage and 
 also the desire to take their own lives in their hands when it comes 
 to rescue work in connection with mine disasters, and they are also 
 ready at all times to listen to any suggestion with a view to eliminating 
 the dangers that follow the coal mining industry. It is the duty of 
 the employer, of course, to do this, and it is also the duty of the employe 
 to put forth his best effort to protect himself. 
 
 THE CHAIRMAN: We will now call upon Mr. Harry N. Taylor, 
 Chicago. 
 
 MR. TAYLOR: Gentlemen of the Congress: I suppose you want 
 the poor unfortunates in the coal business to tell you just what is the 
 matter with our business, and I am going to tell you in just as few 
 words as I can what, in my opinion, I think we are suffering from. 
 There are three or four direct causes and probably four or five indirect 
 causes, which, if they could be eliminated would very much stimulate 
 the coal business, not only in Illinois, but in all the adjoining and com- 
 petitive states. Our first trouble is that our cost of production is fixed 
 by a hard and fast rule, and contract with the labor organizations, which, 
 under the present method, is practically interpreted by them to mean 
 what they want it to mean, regardless of what the language of the 
 contract is. In former days, even working under a contract similar to 
 this contract, when business became dull it was possible by shifting 
 around the work in the mines to keep your cost down in comparison 
 to the slow business, but under the present construction put on this 
 contract by the miners, if you do away with a man you do away with 
 
AMERICAN MINING CONGRESS 63 
 
 the job, and any attempt to divide the job up immediately calls down 
 the wrath of the organization upon the poor operator, and his mine 
 is closed down and his cost goes up and his expense continues. So 
 much for that side of the question. 
 
 On the other side, we have in Illinois a condition brought about 
 largely by the mine run system, the making of multitudinous sizes of 
 coal. In many parts of the state they make as high as 12 and 13, and 
 even a higher number of sizes of coal. Now, if 'every operator could 
 get his orders in exactly the same proportion that he makes the sizes 
 of coal, he could not be subjected to a better proposition, but as it is 
 one man gets an order for a thousand tons of egg coal, we may say 3 
 inch egg, and in order to make that, because of his screening arrange- 
 ments, he must produce 3,000 tons of coal, 2,000 tons of which he has 
 no market for. If he gets an order for a certain size of nut coal he 
 has to produce 2,000 tons of coal in order to supply his customer with 
 1,000 tons of the kind he wants, and so on, until we have always a. surplus 
 of sizes of coal which that particular operator has no market for, and 
 has to dump, wnich breaks down the price on the sizes of coal his 
 neighbor happens to have an order for, and that condition of affairs 
 has been the real bottom of our over production in many parts of this 
 state, and the cause of our low prices. 
 
 Then, again, the policy of some of our railroads as taken from 
 the view of conserving the coal interests has a very important bearing. 
 Some of our railroads, pushed as they are to operate as cheaply as 
 they can, have forced the coal men to bring their price down to the 
 lowest possible cost, and the price at which the coal is sold to the large 
 consumers is so near that of the pay roll that when a man on that line 
 of road gets a mine opened up that has particularly good conditions 
 he immediately makes his lowest price, working under those best condi- 
 tions, and shuts up the mine next to him or forces it to run at a loss. 
 A little water, or any trouble in a coal mine makes you shut that mine 
 down or run at a loss. The closing of these mines causes the loss of 
 millions of tons of coal that should be worked for public good. The 
 consequence is that the operator, in his endeavor to run, is forced to put 
 coal out to the small consumer, the domestic trade, at an abnormally 
 high price to try to bring his average up from the abnormally low price 
 that he sells the coal to the large consumer for, whereas if the railroads 
 would pay just a little more it would not be necessary to force the sale 
 of a small portion of coal at an extraordinary high price, and every- 
 body would get a more even price, and all the industries would be 
 much better off than they are under the present unwarranted competitive 
 conditions. 
 
 Now, I believe that on the whole, if the railroads and large con- 
 sumers could see their way clear to pay even 5 cents a ton more than 
 they are now paying, that they would conserve a large amount of coal 
 which is wasted through the causes I have just mentioned, through the 
 inequality of conditions. Every one of the coal carrying roads are lined 
 with abandoned shafts, which could be worked if the price was a little 
 higher. In other words, the operators have to keep so close to the 
 cost of production .that the slightest inequality makes them abandon 
 a mine. This is one of the curses of our business. 
 
 Now, gentlemen, there is one other question touched on this morn- 
 ing, and that is the change in our present laws which would allow us 
 to get together and adjust prices so we could obtain at least a living 
 profit on the money we have invested. If the government will treat 
 the coal industry as they do the farmers and manufacturers and not 
 only give us experimental stations, but allow meetings so that we could 
 get our industry on a stronger footing without greatly raising the price 
 to the large manufacturer or consumer, giving a lower price to the small 
 consumer, the general public would get the 'benefit of such permission 
 to get together and handle our business the same as any other business 
 is handled. We then could get a labor contract that could be enforced 
 and the public would be benefited as a whole. 
 
64 OFFICIAL PROCEEDINGS 
 
 THE CHAIRMAN: I have now called the names of those listed 
 for discussion on the program, and we will now have general discussion 
 under the five minute rule if there are any others who would like to 
 discuss this question. 
 
 MR. HARRY N. TAYLOR: I would like to hear from Mr. R. W. 
 Ropiequet of St. Louis. 
 
 MR. ROPIEQUET: Sometimes while listening to coal men dis- 
 cuss this situation, I am reminded of a little incident that happened when 
 I was a boy. I was on top of a shed one Sunday afternoon with a 
 cousin of mine, who ripped his coat. He was afraid of being punished, 
 and when he got down on the ground he ran up against a brother of 
 mine, and then said, VSee what you did? You ripped my coat." Some- 
 times I think if we would begin to stop discussing the things on the 
 outside, and look a little bit more on the things on the inside, we would 
 get along just a trifle better. I believe that we use the anti-trust law a 
 good deal like the fellow that ran along and ripped his coat and blamed 
 it on to some one else, after he had ripped it himself. I know that 
 is not along the line of. our general discussion, or along the line that 
 we generally like to hear, but I believe it is actually true of the coal 
 situation. 
 
 We are our own worst enemies. We talk about the competitive 
 field, and the whole thing that is in that competitive field is that every 
 fellow has got his knife out to try to do up the other fellow. I believe 
 if we could change the laws on the statute books today that with the 
 same human nature that is in the coal business at the present time, 
 it would not take very long before the coal men would be exactly 
 in the same position they are in now. Before we can ask anybody to 
 do anything for us we ought to straighten out our own household. The 
 differences that exist in the competitive fields today are such that men 
 are enemies of each other in this business, and they can't get together 
 on any platform until they are straightened out; and I believe that if 
 this mining congress would accomplish anything of benefit to the coal 
 business, that if, instead of attempting to get together and memorializ- 
 ing congress and the state legislatures, and the President of the United 
 States, this Congress would appoint a "club committee," consisting of 
 interests outside of the coal business, who would get right together with 
 their club and tell the coal men they have eot to behave themselves in 
 their own ranks and straighten out their own inequalities and get upon 
 a basis of brotherhood between themselves, that then we might get out 
 and accomplish something on the outside. Until that is done, I do not 
 see how we are going to accomplish anything by any cries of legislation. 
 
 There is no question about one matter of unanimity among coal 
 men. It was voiced here the other evening in the meeting, when every- 
 body was always ready to sing "There is a hole in the bottom of the 
 sea." Now, that hole that is in the bottom of the sea hasn't been put 
 there by the anti-trust legislation; it hasn't been put there altogether 
 by the miners; it hasn't been put there by the outside. But it has been 
 kicked into the sea and the boat by the coal men themselves, who are 
 in the boat on the sea, and they are sinking because they don't seem 
 to have enough brain power or enough brotherly spirit, or enough inter- 
 est in their own business to get together and close up that hole in the 
 bottom of the sea, and in the boat, instead of kicking about the waves 
 on the outside. 
 
 Mr. Chairman, if your metal mining industries who talk about get- 
 ting these coal men on the outside to affiliate with you, if you could get 
 them into the school room of organization with a promise that they 
 would be good enough to let some outside interests come in and fix up 
 the differences that are between them, then they could present a united 
 front; but, even if you would take the anti-trust law off of the statutes 
 of the United States today, if you would let Mr. Wickersham and the 
 other fellows go across the sea where Teddy went; if you would get 
 Mr. Taft not to say a solitary word; and then if you would give the 
 coal men the right of way; the very first thing that would happen, would 
 
AMERICAN MINING CONGRESS 65 
 
 be that Indiana would get off by itself to see how it can knife Illinois, 
 and Illinois get off by itself and see how it can knife Indiana, and the 
 southwest would not be in it at all. That is the truth about the situation. 
 Let us face it. (Applause.) 
 
 THE CHAIRMAN: "The Economics of the Coal Industry" is 
 the next subject for discussion. This has been divided into three parts, 
 into which it naturally falls. First, coal operators or producers; second, 
 the miners; and third, the consumers. Mr. Carl Scholz will represent 
 the position of the coal operators, and we will now be glad to hear 
 from him. 
 
 Mr. Scholz's address will be found at page 241 of this report. 
 
 MR. SCHOLZ (Continuing): By way of explanation, I may say 
 that I referred to the securities issued by the syndicate as bonds, these 
 bonds are what we would call stock. The coal companies simply advance 
 a working fund which is utilized by the syndicate to conduct its busi- 
 ness until collections are made, and you will be undoubtedly surprised 
 to know what a small amount of money is required to conduct such a 
 large business, because the syndicate is practically able to dictate its 
 own terms and collections are made very promptly and very efficiently. 
 The syndicate has adopted a number of restrictions, such as confining 
 the sale of coal to consumers of a stipulated quantity. No consumer 
 taking less than 6,000 tons of coal per year can deal with the syndicate 
 direct. He is referred to another sales organization existing under the 
 syndicate, and as a whole, these regulations are so well carried out that 
 the consumer himself prefers to buy from the syndicate or its agents 
 rather than from the independent markets which are supplying coal 
 in the same fields. You will be surprised to know that Berlin, with an 
 annual consumption of two and a half million tons of coal, derives one- 
 half of its output of coal from England. Hamburg and similar towns 
 located on the sea and receiving water coal derive all their coal from 
 England. The syndicate cares only to sell to markets which are profitable. 
 
 In estimating the conditions of the English mines, I was surprised 
 to learn that their conditions were very much like ours. Operators 
 complained of hard times and their organizations met with little success. 
 Every operator pointed with envy to -the syndicates existing on the 
 continent, which are by no means confined to the coal mined in Germany, 
 but the output of France is handled through a syndicate also, As gen- 
 erally known, France has an anti-trust law, and when I called on the 
 chairman of the central committee of France, I asked him about the 
 syndicate. "Why," he said, " we have no syndicate." I at once inquired 
 from the next man I saw in Brussels what he knew about the French 
 syndicate. "Why, sure we have a syndicate, but we call it an informa- 
 tion bureau." They collect statistics and, although they call it an in- 
 formation bureau, their real and only purpose for existence is to main- 
 tain a staple price and thereby enable their operators to live. There 
 are syndicates in Belgium, France and Germany, with a total tonnage of 
 about 150,000,000 tons per year, which are controlled to the absolute 
 advantage of the operators, their miners, and to the disadvantage of 
 none, as far as I can see. 
 
 A number of inquiries were made as to public feeling of the con- 
 sumers towards the syndicates, and I was much surprised to learn that 
 the public was much better satisfied with conditions now existing com- 
 pared with the time when the coal was sold in the open market, such 
 as we are now doing. The elimination of suicidal competition, fluctuation 
 of prices to both extremes and the fair distribution of coal to large 
 and small consumers with reasonable differences in prices is valued by 
 the consumers. I thank you. 
 
 The Secretary then read Resolutions Nos. 9 and 10: 
 
 Resolution No. 9, Introduced by J. E. Finney, Arkansas. 
 
 Whereas, The brightest and ablest minds of this country are 
 being exercised to prevent the gross unnecessary waste of our nat- 
 ural resources and to protect life and limb; and 
 
66 OFFICIAL PROCEEDINGS 
 
 Whereas, The present wasteful and dangerous method of min- 
 ing coal should receive most careful consideration; and 
 
 Whereas, Much relief can be secured in protecting the lives 
 of miners and in the conservation of coal by the more general use 
 of picks and the prohibition of excessive use of powder; therefore 
 be it 
 
 Resolved, That we recommend that the practice of shooting-off- 
 the solid be discouraged; and 
 
 Resolved, That we believe that the best way to improve this 
 dangerous and wasteful method of mining is to advocate the pay- 
 ment for mining coal universally and exclusively on the screen lump 
 basis. 
 
 Resolution No. 10, Introduced by Harry N. Taylor, Illinois. 
 
 In view of the increasing importance and complexity of the 
 mining and metallurgical industries, the deplorable waste in mining 
 under present methods, and the great need of trained men to aid 
 in improving these conditions and in developing greater safety and 
 efficiency, 
 
 Be It Resolved, That the American Mining Congress, now in 
 session at Chicago, urges the Congress of the United States at 
 Washington to provide for aid and co-operation in the maintenance 
 of mining schools in the several states in a manner analagous to 
 that which has been done in behalf of agriculture. 
 
 Be It Resolved, That the members of the American Mining 
 Congress and the friends of the mining industry throughout the 
 country are hereby urged to co-operate in securing the proper legis- 
 lation necessary to carry above purpose into effect. 
 
 THE CHAIRMAN: The next speaker on the program is Mr. 
 Thomas L. Lewis, of Bridgeport, Ohio. 
 
 SECRETARY CALLBREATH: Mr. Chairman, Mr. Lewis was in- 
 vited to speak tomorrow, but could not be here at that time and wired 
 that he could co^rne if he was allowed to speak earlier. I wired him that 
 we could place him .on the program at an earlier time, but he received my 
 telegram too late to come. I have a telegram from Mr. Lewis expressing 
 his regrets that the telegram was received too late for him to make 
 arrangements to be here. 
 
 THE CHAIRMAN: The next speaker is Mr. W. L. Abbott, of 
 Chicago. He is not here. 
 
 SECRETARY CALLBREATH: Mr. President, Mr. Abbott was 
 in the hall at noon and asked when he would be called. I told him not 
 before four o'clock, and it is my fault that he is not here. 
 
 THE CHAIRMAN: Well, while we are waiting for Mr. Abbott, 
 we will have a paper by Professor A. H, Purdue, of Arkansas, on "The 
 Operation of the Mine-Run Law in Arkansas." 
 
 Prof. Purdue's paper will be found on page 227 of this report. 
 
 THE CHAIRMAN: While we are waiting for Mr. Abbott to 
 come in, we will hear any discussion that might be desired on this sub- 
 ject. I believe we might revert to the discussion of conditions and 
 remedies under the ten minute rule, as I see Mr. Kuhn in the room. 
 I will call on him now to discuss this subject. 
 
 MR. D. W. KUHN. Pennsylvania: Mr. Chairman and Gentlemen: 
 I certainly haven't very much to say; nothing, in fact, but I might tell 
 a story. The chief justice qf North Carolina at the beginning of the 
 Civil War couldn't get his officers to enforce a decree, so he rendered 
 an important decision, which he knew very well wouldn't be carried 
 out, and wound up the opinion by saying "The judiciary is exhausted." 
 I want to say, gentlemen, that in the paper I prepared," which I under- 
 stand was read here last night very much better than I could have read 
 it, that I exhausted myself on that, and for me to say anything further 
 would simply be repeating what was very ably read last night. The 
 only thing I could say, and that is an idea that is uppermost in my mind, 
 is that the coal mining industry should do less talking and have fewer 
 
AMERICAN MINING CONGRESS 67 
 
 resolutions and fewer discussions, and for a short time, at least, get 
 down to see if they could do something to benefit the industry. The 
 only way that appears to me is that in some form of concentration, 
 it does not necessarily follow that the entire industry should be put 
 into one great corporation, or any great combination, but there will 
 have to be some form of concentration. In my opinion the way to do 
 that is for each coal mining district to bring themselves together where 
 physical conditions will warrant, bring the coal mining operators to- 
 gether for the purposes of operating the mines and for the purposes of 
 selling the product and conducting the coal mining industry with respect 
 to. markets. I have a great deal to say in a way, but I don't feel that 
 I could do justice to it in a brief speech of this kind. I would urge and 
 urge strongly that for once in our lives we get down to some basis by 
 which we will act as well as talk. Roscoe Conklin said he believed in 
 the arduous greatness of things done, not said. You believe that. I 
 believe that. Let us act on it. (Applause.) 
 
 THE CHAIRMAN. Mr. Abbott has come into the room and he 
 will discuss the economics of the coal industry from the coal consumers' 
 standpoint. 
 
 Air. Abbott's address will be found at page 224 of this report. 
 
 THE CHAIRMAN: One of the words used by Mr. Abbott brings 
 to my mind that the Coal Baron started with the song. of "Old King 
 Cole," which has been changed in the changes of time until now Coal 
 Baron is spelled B-a-r-r-e-n, and the song changed from "Old King Cole" 
 to "Over the Hills to the Poorhouse." (Laughter.) 
 
 The subject is open for discussion limited to five minutes each. 
 If there is no discussion I will ask Mr. J. E. Finney, of Arkansas,- to read 
 the paper that he was to read yesterday. 
 
 MR. LTXXEY: It is not my purpose to read all of this paper, as 
 Professor Purdue read a paper in your hearing on this same question.*! 
 will read three or four pages of this paper, and the balance of it, which 
 is confined largely to a reproduction of the report of the Arkansas Geo- 
 logical Survey, under the direction of Professor Purdue, will be printed, 
 I take it, in the proceedings. 
 
 Mr. Finney's paper will be found at' page 233 of this report.- 
 
 The Secretary then read: 
 
 Resolution No. 11, Introduced by W. N. Searcy, Colorado. 
 
 Resolved, That, Whereas, The metal mining industry of our 
 nation, including the mining and reduction to pure metal of the 
 iron, copper, lead, zinc, gold, silver, tungsten and other metal bear- 
 ing ores, is of vital importance to the national welfare; 
 
 And, Whereas, The demand for and production of such metals 
 are constantly and rapidly increasing, and the use and application 
 of the industrial metals are continually extending and broadening 
 all to such extent that we are more than doubling the annual extrac- 
 tion of metal in each twenty years of national existence; 
 
 And, Whereas, The continued and unhampered production of 
 these metals will not only be necessary to the prosperity of our 
 country's industries, but will be indispensable to our continued ad- 
 vance in civilization; our nation having already reached the stage 
 of progress wherein the equipment of armies, the building of navies, 
 the maintenance of inland transportation, the construction of cities 
 and the founding of the industries themselves are all absolutely de- 
 pendent upon the metal supply; 
 
 And, Whereas, In the industry of metal production, and espe- 
 cially in the mining and reduction of complex ores in <mr western 
 states, a great percentage of loss of the valuable*, metal is suffered, 
 which loss is apparently unavoidable under existing methods; and 
 many valuable metallic and mineral by-products are also dissipated 
 in the course of ore treatment because of the inadequacy of existing 
 processes to save such by-products at a profit; 
 
68 OFFICIAL PROCEEDINGS 
 
 And, Whereas, This loss in such metal production amounts, at 
 the least, to from fifty to one hundred million dollars worth of 
 metal per year, out of the ores extracted in the western states 
 and territories alone; 
 
 And, Whereas, This loss of metal is in general irretrievable, 
 resulting in a substantial and permanent lessening of the available 
 metal supply of our country; 
 
 And, Whereas, The department* of agriculture of the United 
 States has fully proven the efficiency of local or field experiment 
 station work in solving the many problems of the farming industry, 
 and there is every reason to believe that similar good results may 
 be achieved by the same system of investigating and solving the 
 problems of the mining industry; 
 
 Now, Therefore, Be It Resolved, By the American Mining 
 Congress, That the President and Congress of the United States be, 
 and they hereby are, earnestly requested and petitioned to recom- 
 mend and enact such appropriation measure or other legislation 
 as may be necessary to enable and authorize the National Bureau 
 of Mines and Mining to make thorough investigation of the condi- 
 tion and problems of the metal mining industry and to institute, 
 maintain and conduct local or field experiment work and research, 
 and such other metallurgical and experimental work as that Bureau 
 may deem requisite all to the end of improving the methods and 
 condition of the metal mining industry, and saving from waste 
 and conserving for use the metal resources of our country, and be 
 it further 
 
 Resolved, That a copy of this resolution be furnished and pre- 
 sented to the President, the Director of the Bureau of Mines and 
 Mining, and each United States senator and representative in 
 Congress. 
 Whereupon an adjournment was taken until 8 o'clock p. m. 
 
 THURSDAY, OCTOBER 25, 1911. 
 Evening Session. 
 
 THE PRESIDENT: Gentlemen of the Convention: The gentle- 
 man who is to address you this evening is one who needs no introduction 
 to you, as I believe you all know him, and I know you have been waiting 
 for him to come here to address you again this year, as he has at every 
 mining congress for a great many years. He is our most esteemed 
 fellow citizen and co-laborer for this cause, the director of the Bureau 
 of Mines, Dr. Joseph A. Holmes. (Applause.) 
 
 Dr. Holmes' address, illustrated, will be published later as a sup- 
 plement to this report. 
 
 THE PRESIDENT: While it may seem a little out of place to 
 call a man back to the platform after giving us such an exceedingly 
 interesting lecture, still we from the West, whose sympathies have been 
 strongly aroused in behalf of bituminous coal miners, particularly in 
 the middle west, and let it be understood we want to aid you in every 
 possible way, would like, if possible, to have Dr. Holmes say a word 
 of cheer and encouragement as to what we may expect from the bureau 
 of mines in the way of assistance for the precious metal mining indus- 
 tries. I realize that the work was started to avoid the great loss of 
 life, and that is' the first principle to be considered in mining, and while 
 the appropriations made by our Congress to take up this work at this 
 time are inadequate, we fully believe with the assistance of 'you east- 
 erners who are principally interested in coal and iron mining that the 
 bureau of mines will get an appropriation by your support that will be 
 sufficient to give us the required assistance and help. I should like very 
 much if Dr. Holmes would give us a few words in regard to what his 
 ideas are with reference to the assistance that the precious metal miners 
 of the west may expect. 
 
AMERICAN MINING CONGRESS . 69 
 
 DR. HOLMES: Mr. President, Ladies and Gentlemen: I appre- 
 ciate this invitation from the presiding officer, and especially because 
 of the friendly spirit in which it is extended. It should not have been 
 necessary, however; for I should have included in my original address 
 the statements for which he is now asking. 
 
 I am quite aware of the fact that while the creation of the Bureau 
 of Mines was rendered much easier by the series of unfortunate coal 
 mine disasters immediately preceding it, as a matter of fact, the existence 
 of the bureau is due largely to the persistent efforts in its behalf during 
 the past twenty years of the American Mining Congress, backed by 
 the western metal-miners. I am also aware of the fact that there is 
 a reasonable basis for the complaints now frequently heard in the 
 western states and territories to the effect that the bureau is doing 
 practically nothing to aid these metal mining branches of the industry 
 that were so largely responsible for its creation. 
 
 But President Dern has indicated, and I think thei members of 
 the Mining Congress generally understand, that the conditions attend- 
 ing the immediate creation of the new bureau are responsible for this 
 situation. At that time the coal mine disasters and the saving of life 
 were prope.rly uppermost in the public mind, and in the thought of 
 Congress in making the appropriations for the bureau's first work. 
 Now that that work is well under way, I believe Congress will give 
 friendly and favorable consideration to the needs of the metal mining 
 industries, if these needs are properly presented before it. 
 
 The country is coming to understand more clearly every year how 
 essential to our national welfare are the two great foundation industries, 
 agriculture and mining. Agriculture has for years been receiving proper 
 recognition and aid from the Federal government to the extent of 
 from $10,000,0()0 to more than $15,000,000 a year for the reason that 
 its representatives demonstrated the fact that there was much work 
 in behalf of farming that the Federal government could do to better 
 advantage and with less of the costly duplication that would charac- 
 terize this work if undertaken by each of the several states or by 
 private individuals. And if Congress can be shown that there are 
 extensive inquiries and scientific investigations needed in behalf of the 
 mining industry, that are national in character and can be conducted 
 to better advantage by the Federal government than by each of the 
 several states or private individuals it is reasonably certain that Congress 
 will accord to mining a generous treatment similar to what it has done 
 for agriculture. 
 
 Indeed, the appeal for national recognition and aid in behalf of 
 mining presents several advantages over the appeal in behalf of agri- 
 culture. The products of the mine are no less than those of the farm 
 essential to our national welfare; but while in the annual crops of the 
 farm we have the perpetual renewal of these supplies, of the products 
 of our mines we have but the one supply, which supply has required 
 the ages of the past for its creation, and it must meet the needs of the 
 nation for. all time to come. Mining is therefore an industry in which 
 in an important and special sense the nation must safeguard its own 
 future, by seeing to it that these resources so essential to its permanent 
 welfare are used wisely and without unnecessary waste. 
 
 The needs, the purposes and the plans of the individual or the 
 corporation are 1 local and temporary. Too often even the state in its 
 commendable efforts toward present developments loses sight of the 
 future needs and future rights of its citizens. It is therefore the right 
 and duty of the nation in every way consistent with our form of govern- 
 ment, to see to it that in the use .of resources essential to national 
 welfare these resources are developed and used with the highest 
 possible efficiency or without unnecessary waste. 
 
 Again while agriculture is the safest, mining is the most hazardous 
 of all our great industries. And while mining is often spoken of as an 
 industry of ^organized .companies in contrast with agriculture as an 
 industry of individuals, as a matter of fact mining is also in a most 
 
70 OFFICIAL PROCEEDINGS 
 
 important respect equally an industry of individuals; and it is especially 
 an industry in which a single individual, by accident or by thoughtless 
 mistake, may cause the destruction of scores or even hundreds of his 
 fellow workers underground. 
 
 Both the loss of life and the waste of resources in the metal mining 
 and other mining industries of the western states are far in excess 
 of what they are ordinarily supposed to be or what they ought to be. 
 The need of such general inquiries and investigations as will aid in 
 developing both safer and less wasteful mining and metallurgical 
 operations is being fully recognized; and I believe that any request for 
 the extension of the work of the Bureau of Mines to cover inquiries 
 and researches to meet these needs in the west will meet with general 
 approval and will receive favorable action by Congress. Meanwhile, 
 I am sure the President and members of the Mining Congress fully 
 understand, the Bureau of Mines must keep well within the limits fixed 
 by the letter and spirit of the existing legislation. 
 
 THE PRESIDENT: We are to have the pleasure this evening of 
 listening to an address or a lecture by a most estimable gentleman, 
 whom up to only recently I always considered in reality a metal man, 
 but I see that he is on the program for an address on coal mining. No 
 doubt he could perhaps tell us as much about copper as he could about 
 coal, but this being a "coal day" I presume he will confine his remarks 
 entirely to this subject. I have the pleasure of introducing Dr. James 
 Douglas, of New York, one of the old timers. (Applause.) 
 
 Dr. Douglas' paper will be found at page 214 of this report. 
 
 THE PRESIDENT: Gentlemen, I am sure you have all enjoyed 
 the interesting discussion and lecture of Dr. Douglas. His company 
 certainly seem^ to have one of the most complete plants among the 
 mines in the southwest and perhaps in the central west. I invite general 
 discussion of this subject, which has' been introduced by the doctor. 
 Does any one here wish to make any remarks on this subject? 
 
 DR. HOLMiES: With the risk of saying too much in one evening, 
 I rise to speak for the second time. There are two or three points 
 brought out by Dr. Douglas in his admirable paper that I feel we ought 
 not to let pass unnoticed. I have always had the feeling that no one 
 in this country has done as much for metal mining and the metallurgical 
 industry as has Dr. Douglas. (Applause.) He has appeared before the 
 Congress in an entirely new role, ' and I think we are greatly indebted 
 to him for taking us into his confidence and giving us the inside bus- 
 iness details with reference to this great experiment which he has been 
 trying in another branch of the industry. 
 
 As one travels through the European coal mining, districts you 
 are impressed with the stability of the coal industry. You see mag- 
 nificent steel tipples and coke ovens of the most modern types, and 
 washeries built on the plans which he has described to you as having 
 been followed by his own company, but you rarely see that in this 
 country, which illustrates the {instability of the coal mining industry in 
 the larger part of the United States. Not that we have any less enter- 
 prise, or that we are any less ambitious to have big permanent stable 
 plants than they are in other countries, but the price which they get 
 a ton for coal averages twice what we get in this country; they normally 
 get a price twice that of ours, and they know they are going to get 
 that same high price next year and the year afterward^, because of the 
 economic conditions under which they live. 
 
 I remember hearing Mr. O'Brien say that the things which you 
 can reach in the long run may be best for you, but there is no special 
 advantage for the shortwinded fellow. Dr. Douglas' company has been 
 most fortunate under -his management in being able to do things in 
 the manner which he has prescribed. Like a man who sometimes draws 
 a good salary and operates a farm, he can afford to manage that farm 
 in a way the other fellow who did not have the salary could not, and 
 what makes his attitude in this matter particularly commendable is 
 the fact that in order to demonstrate certain general facts and principles 
 
AMERICAN MINING CONGRESS 71 
 
 for the benefit of the mining industry he has been willing to make the 
 outlay which his company has made. ' There never has been a proposi- 
 tion with reference to safety that we have suggested to Dr. Douglas 
 that he has. not been ready to put into practice. Usually when we 
 came to look into it it was found he had it in practice before we 
 suggested it. There never has been a suggestion with regard to saving 
 his coal or operating it on a less wasteful basis that he was not prompt 
 to take and put into practice. 
 
 It has been with him a great experiment, and it is an important 
 contribution to the coal mining industry in this country, and we are 
 most fortunate that he has been willing to make it. Two things which 
 he has developed there seem to me to be especially commendatory, and 
 1 am glad he has mentioned them, one is the safeguarding of the lives 
 and the other is the effort to prevent the wasting of materials. When 
 we talk to the American people about the coal industry they begin 
 to immediately think about the rich barons, and we never will reach 
 them except on those two bases. People of this country are becoming 
 more and more interested in the prevention of the unnecessary loss 
 of life, and when we go to them with regard to this great proposition 
 of the coal mining industry, we have got to go on one of those bases. 
 That is the reason the more we can talk and impress the people of this 
 country with the loss of life and the waste of resources, the sooner we 
 will get them to reason and see that something must be done and make 
 them willing to let conditions be changed, to let the coal people com- 
 bine and get together in order that they under the circumstances may 
 safeguard lives and prevent unnecessary waste of resources more 
 effectually. 
 
 I certainly, as one member of the Congress, feel very grateful to 
 Dr. Douglas that he has been willing during the past six years to 
 undertake to carry through the splendid experiments the results of 
 which he has given the organization the benefit of here tonight. (Ap- 
 plause.) 
 
 MR. WILLIAM GRIFFITH, Pennsylvania: Dr. Douglas' closing 
 remarks seem to me lead up to what we call in Pennsylvania the per- 
 petual lease, the leasing of the coal in the ground. We regard that as 
 one of the very best methods of conserving the coal, conserving the 
 interests of the owners, and conserving the interests of the operators 
 and providing a reliable and long tenure lease upon which the financier 
 can afford to put money into a proposition. The short tenure leases 
 are a delusion and a snare. The northern anthracite coal field of Penn- 
 sylvania contains about one-third of the total area, but it ships and 
 has shipped for years a great deal more than one-half of the total output 
 of the anthracite fields. One of the very great reasons why the north- 
 ern anthracite field is in advance of the others is that in the northern 
 field they started with perpetual leases, and in the other field they 
 started with short term leases, about 15 years, with the privilege of 
 continuation at the end of that time. The .operators took no stock 
 in the promise, like the one-hoss shay, but built to last 15 years to the 
 day, and no longer. The result was we had a whole lot of small opera- 
 tors, poor equipment, and in the northern fields where we had leases 
 that were perpetual with an annual minimum rental the operators built 
 large and substantial plants, intended to last as long as it was possible 
 for them to last, intending to bring out just as much coal in one plant 
 as it" was possible to produce. The result is that the production in the 
 northern field quickly ran away with the combined production of our 
 other fields in the anthracite field. 
 
 THE PRESIDENT: Will you please permit me to ask a question? 
 Was the lease on the anthracite region a lease from the state or from 
 private individuals? 
 
 MR. GRIFFITH: From whom ever owned it, from the land- 
 owners, and I see no reason why the government or the state 
 could not adopt a similar arrangement for the lands owned by the 
 government or the state. The courts have time and time again decided 
 
72 OFFICIAL PROCEEDINGS 
 
 that a perpetual lease, or a lease for all the coal in the ground, is a 
 sale of the coal on the installment plan, and I can see no reason why 
 the government as a land owner cannot put that method in force. That 
 sort of an arrangement will, as Dr. Douglas has suggested, lead to a 
 conserving of the coal and the introduction of large and staple plants, 
 instead of small, wasteful, two-cent operations that we often times have 
 in coal fields. 
 
 A DELEGATE: I would like to ask Dr. Douglas in the operation 
 of the underflue oven in comparison with the Beehive oven, what is 
 the difference in repairs? You get a larger output from the underflue 
 oven than you do from the Beehive, but how do the repairs compare? 
 
 DR. DOUGLAS: Well, the first ovens we put up required con- 
 siderable alterations. The bricks were not the best suited for the pur- 
 pose, but we repaired some of the ovens and they showed very little 
 wear and tear. The very best brick should be used under the flues. The 
 reason for couching the coal in the ovens, as we do, is so that the water 
 can't get through the floors to the silica brick and cause them to so 
 degenerate that they will need repairs. Therefore, a thoroughly good 
 firebrick, in spite of the very high volatile of our Trinidad coal, is a 
 great deal better than the silica brick, and the ovens as we have recon- 
 structed them will require very little repair. They seem to stand the 
 heat very well, although the heat in them is considerably higher than 
 the heat under the flue overts. 
 
 MR. CARL SCHOLZ, Illinois: I want to confine my remarks 
 to one point and that is the fixed charge of 15 cents a ton, which should 
 be added to the actual labor and material cost of every ton of coal 
 produced. If we can impress the coal producers of this Congress with 
 that figure I am quite sure the coal mining industry will be put on a 
 good business basis. I think we are indebted to Dr. Douglas for his 
 own observations and for placing them before us. (Applause.) 
 
 Whereupon an adjournment was taken until 10 o'clock a. m., Octo- 
 l^er 27. 
 
 FRIDAY, OCTOBER 27, 1911. 
 Morning Session. 
 
 The meeting was called to order by the President. 
 
 THE PRESIDENT: The first thing in order will be the introduc- 
 tion of resolutions. 
 
 MR. W. P. DANIELS, Colorado: I want to introduce a resolution 
 that I hope may be considered by the committee as a substitute for 
 everything that has been heretofore introduced on the subject. 
 
 The Secretary then read Resolutions Nos. 12, 13, 14 and 15; 
 
 Resolution No. 12, Introduced by W. P. Daniels, Colorado. 
 
 Whereas, In the opinion of the American Mining Congress, the 
 effort to procure appropriations for ore testing plants at particular 
 points is unwise and will result in a conflict of interests that will 
 defeat the object, and believing that the use of any appropriation 
 for the benefit of the metal mining industry should be left ta the 
 discretion of the Bureau of Mines; and, 
 
 Whereas, the metal mining industry has not received the con- 
 sideration and assistance that it has a right to expect, and the appro- 
 priation which it is understood is to be recommended by the Secre- 
 tary of the Interior, it is entirely inadequate; therefore, be it 
 
 Resolved, That the Congress disapprove the appropriations for 
 ore testing plants that are to be expended at specified places, and 
 earnestly urges the appropriation of $1,000,000 for the use and benefit 
 of the metal mining industry. 
 
AMERICAN MINING CONGRESS 73 
 
 Resolution No. 13, Introduced by Falcon Joslin, Fairbanks, Alaska. 
 
 Whereas, The sudden suspension of the coal land law of Alaska, 
 though undoubtedly illegal, and recognized as such by the depart- 
 ments and by Congress itself, has remained effective to this date, and 
 
 Whereas, It is now contended that the law shall remain sus- 
 pended forever, and that the whole system of selling the coal lands 
 shall be abandoned and a leasing system substituted; and 
 
 Whereas, Of the more than two hundred entrymen, who have 
 surveyed their claims and paid the purchase price, only thirty-three 
 have been able to get any decision favorable or unfavorable from the 
 land office. The decision in these cases was adverse to the claim- 
 ants, and whether the claimants will forfeit the amount they have 
 paid to the Government and lose the great sums they have spent 
 in exploring and development work, and the years of time they 
 have given, remains to be seen; and 
 
 Whereas, The other claimants are in the deplorable condition 
 of having spent years of time and hundreds of thousands of dollars 
 in the exploration, development and purchase of the lands from the 
 Government, and can neither get the land nor get back their money. 
 Neither have they under the existing law any access to the courts 
 for a judicial determination of their rights; therefore, be it 
 
 Resolved: First. That the existing law of the land in refer- 
 ence to the sale of coal lands in Alaska should be enforced and 
 administered until Congress, the law-making body of the Nation, 
 sees fit to repeal or amend it. 
 
 Second. That the assumption of authority by the executive 
 department to suspend and abrogate the coal land law of Alaska in 
 order to force the passage of a different law by Congress, or for 
 any other purpose, is not justifiable. 
 
 Third. That if the existing law is to be abrogated or repealed, 
 it should be done by Congress that made it, and scrupulous care 
 should be taken that rights acquired under the law be respected, and 
 the faith of the Nation kept with those who have spent their time 
 and money in exploring and developing the coal lands. 
 
 That the claimants whose money the Government has taken, 
 should have their entries promptly passed upon, and where found 
 regular, their patents issued without further delay. 
 
 That the law should be construed liberally in their favor, with 
 the object of carrying out its true spirit and intent, which was 
 undoubtedly to bring about the sale of the coal lands and to en- 
 courage the opening and development of the industry of coal mining. 
 
 Resolved, That it is the sense of the American Mining Con- 
 gress that some form of local self-government be at once provided 
 for Alaska. 
 
 Resolution No. 14, Introduced by W. P. Daniels, Colorado. 
 
 Whereas, The American Mining Congress has placed itself 
 upon record as opposed to fraud and deception in the promotion and 
 sale of stocks in mining and other corportions, and 
 
 Whereas, Prevention of fraud is much preferable to punish- 
 ment after has been and is a practical failure by reason of the diffi- 
 culty of showing fraudulent intent, and 
 
 Whereas, The prevention of deception and fraud by punitive 
 legislation, it has been committed, and it is the opinion of this Con- 
 gress that proper publicity would deprive the fake promoter of the 
 opportunity for fraud and deception that exist under present laws 
 and would save to the investor the large amount of which he is 
 continually being defrauded by the concealment of facts of which 
 he should be informed; therefore, be it 
 
 Resolved, By this fourteenth annual session of the American 
 Mining Congress, that we endorse and approve the bill herewith and 
 urge its adoption, with such changes as may make it applicable in 
 the different States. 
 
74 OFFICIAL PROCEEDINGS 
 
 A Bill For An Act in Relation to Corporations. 
 
 Be it enacted by the General Assembly of the State of 
 
 Section 1. Whenever full paid stock is issued for property by 
 any corporation, doing business in this State, it shall be the duty 
 of the president and secretary of any such corporation, within ten 
 days from date of the issuance of such full paid stock, to file, or 
 cause to be filed, in the office of the Secretary of State, a description 
 of the property transferred to the corporation for such stock, with 
 the name or names of the person or persons, or of the corporation 
 from whom purchased, the number of shares of stock issued to each 
 of such persons if the property be transferred from individuals, and 
 if known to such president or secretary, the actual amount paid by 
 the person or persons or the corporation so transferring said prop- 
 erty to the corporation purchasing the same for such full paid stock, 
 and if not known, such statement shall so state, and if any portion 
 of the stock so issued in payment for property is donated to the 
 corporation issuing it, such statement shall show the amount of 
 stock so donated. Such statement shall be verified by the president 
 and secretary of the corporation, and with a certificate of its filing 
 in the office of the Secretary of State shall be published in any 
 general prospectus issued by such corporation. 
 
 Section 2. Every stock certificate issued by any -corporation, 
 which is not for stock sold by the corporation all the proceeds of 
 which go into the corporate treasury, shall have printed or stamped 
 across the face of such certificate, with ink, the color of which is 
 conspicuously different from that with which the body of such cer- 
 tificate is printed, and in letters not smaller than those printed from 
 12 point type, the words, "This certificate is a transfer of ownership 
 of the stock represented by it and not a sale by the company." 
 
 Section 3. Before any foreign corporation shall be authorized 
 to do business in this State, in addition to the requirements of any 
 existing law, it shall make and file with the Secretary of State, a 
 certificate signed and verified by its president and secretary, which 
 shall show what proportion of its capital stock has been paid for 
 in money and what proportion has been paid for in real or personal 
 property, labor or thing of value other than money, the price per 
 share at which such stock issued in payment for property was sold, 
 with a description of such property with the name or names of the 
 person or persons, or corporation, from whom purchased; the num- 
 ber of shares issued to each of such persons if the property be pur- 
 chased from individuals, and if knowi) to such president or secre- 
 tary, the actual amount by such person or persons or corporation, 
 from whom such property was purchased, and if not known, the 
 certificate shall so state. If any portion of such stock issued in pay- 
 ment for property is donated, to the corporation issuing it, such 
 certificate shall show the amount so donated. Such certificate with 
 a certificate of its filing in the office of the Secretary of State shall 
 be published in any general prospectus issued by such corporation. 
 Any foreign corporation failing to comply with all of the provisions 
 of this act, after being authorized to do business in this State shall 
 forfeit such authority in addition to the penalties hereinafter 
 provided. 
 
 Section 4. The Secretary of State shall be entitled to a fee 
 of one dollar for filing any statement or certificate required by 
 this act. 
 
 Section 5. Any officer of any corporation failing to comply 
 with the provisions of this act, or wilfully certifying any false state- 
 ment in any statement or certificate required by this act, shall be 
 deemed guilty of a misdemeanor and upon conviction thereof, shall 
 be punished by a fine of not less than one hundred, nor more than 
 one thousand dollars, or by imprisonment in the' county jail for not 
 less than thirty days nor more than one year, or by both such fine 
 and imprisonment. 
 
AMERICAN MINING CONG 
 
 Section 6. Where the capital stock of 
 
 business in the State of is sold by any 
 
 or other agent -or promoter of any such corporation to any purchaser 
 thereof for a cash consideration without a compliance with the pro- 
 visions of this act in reference thereto, an action may be maintained 
 in any court having jurisdiction in this State for the purchase price 
 of such stock, and proof of the failure to comply with this act on 
 the part of any officer, director or other promoter of any such cor- 
 poration, shall be prima facie evidence of fraud in the sale of such 
 stock. 
 
 Section 7. Any law or part of law in conflict herewith is 
 hereby repealed. 
 
 Resolution No. 15. Introduced by W. P. Daniels, Colorado. 
 
 Whereas, The American Mining Congress has by amendments 
 to its laws, provided for the establishment of branches of the Con- 
 gress wherever fifty or more members desire the establishment of 
 such a branch, looking to the ultimate establishment of state and 
 local organizations to be governed by a national body consisting of- 
 representatives of such local and state organizations, and 
 
 Whereas, The present laws of the Congress did not originally 
 contemplate a delegate or representative organization with subor- 
 dinate bodies, self-governing within the provisions of the laws of 
 the Congress, and the amendments providing for the establishment 
 of branches is not in harmony with the original plan or the present 
 laws; therefore, be it 
 
 Resolved, That a committee of three members of the Congress 
 be appointed by the President whose duty it shall be to prepare and 
 report to the next annual session of the. Congress, such amendments 
 or such a revision of the present laws as will provide for a representa- 
 tive national governing body with state and local bodies, subordinate 
 to and under the jurisdiction of the National body, and it is the sense 
 of the members of this session of the Congress that all life mem- 
 bers of the Congress who are or may become life members under 
 its existing laws, should be made life members of the National Con- 
 gress with all of the rights and privileges of the representative or 
 delegate members that may be provided for in su-ch report. 
 
 MR. J. M. DINWIDDIE, Iowa: I have been appointed several 
 times as a delegate, but have never been able to come until this time. 
 We are going to act on resolutions, and you have no Congress in ses- 
 sion or members in session to act on these resolutions. I would like 
 to know what the result is when you act on them, now that the members' 
 meeting is adjourned. 
 
 SECRETARY CALLBREATH: The official call states that the 
 resolutions adopted by the Congress become the platform of working 
 operations during the coming year. That has always been the rule. 
 Where resolutions are adopted more extensive than it is possible to put 
 into effect with the funds available for that purpose, it has been the 
 rule to endeavor to put those into effect which, have seemed to be the 
 most important. 
 
 THE PRESIDENT: The next will be a paper on "The Future of 
 Alaskan Coal," by Dr. A. H. Brooks, chief of the Alaskan division, 
 United States Geological Survey, Washington, D. C. 
 
 Dr. "Brooks' paper will be found at page 291 of this report. 
 
 THE PRESIDENT: The next number on the program is "The 
 Development of Alaska," by Mr. George Murphy, Seattle, Wash. Mr. 
 Murphy has been callecr away by telegraph, and consequently that part 
 of the program will have to be omitted. 
 
 The next will be an address by Duncan M. Stewart, Seward, 
 Alaska, on "Transportation in Alaska." 
 
 MR. STEWART: Mr. Chairman and Gentlemen: My first duty 
 is to express to you my appreciation of the high honor that has been 
 conferred on me by the invitation to address you today, and if only 
 
76 OFFICIAL PROCEEDINGS 
 
 the acceptance of the invitation did not involve the very serious responsi- 
 bility and heartrending feeling of inability to rise to the importance of 
 the occasion and to deal adequately with the subject entrusted to me, I 
 can assure you that I could also express to you my pleasure and my 
 happiness at this moment. I believe, gentlemen, that any man who has 
 the temerity to address a public gathering charges himself with the very 
 serious responsibility of saying something, of delivering some kind of 
 a message. We have heard a great deal of clap-trap and buncombe by 
 people who knew little or nothing about the subject from the stand- 
 point of a resident. It has not helped, and when I feel that it devolves 
 upon me to discuss a subject of vital importance to a country twelve 
 times the size of the state of New York and whose area is more than 
 the combined area of Oregon, Washington, California, Arizona and 
 Nevada, you will appreciate that my responsibility is in no way dimin- 
 ished. Realizing this then, gentlemen, as one privileged to address you 
 as a resident of Alaska, as one deeply interested in the development of 
 natural resources, yet holding no brief from corporation, court, or any 
 one else, in that country or elsewhere, I beg to assure you that these 
 words of mine this morning are based absolutely on facts, and I shall 
 deal only with facts. I will lay contentious matters aside and place 
 these matters of actual fact without the burden of statistical figures 
 before you, so that you will get some kind of idea of what we have 
 in that country, and what we have to contend with, and shall leave it 
 to you to draw your own conclusion, and see what we are going to 
 do about it. With that understanding I bespeak for the subject your 
 earnest consideration and for myself your kind indulgence. 
 
 Mr. Stewart's paper will be found at page 320 of this report. 
 
 (At this point Dr. E. R. Buckley took the chair.) 
 
 MR. GLENN W. TRAER, Illinois: As the chairman of a special 
 meeting of the coal operators, on attendance at the convention, I have 
 been requested to report that it was unanimously voted by the coal 
 operators present to recommend to their various associations and bodies 
 of coal operators at home that they take membership in the American 
 Mining Congress in conformity with the resolution which was passed 
 this morning, I believe, and on the basis there stated that they take 
 substantial membership. It will also be recommended by these repre- 
 sentatives to their organizations that each organization appoint a repre- 
 sentative on an auxiliary committee to co-operate with the directors of 
 the American Mining Congress in the work which it is intended to carry 
 on, and provision was made for a definite and specific report to be made 
 to the various coal operators' organizations. 
 
 CHAIRMAN BUCKLEY: Gentlemen, I am very sure that the 
 men who have been actively associated with this organization for ten 
 or twelve years, or perhaps longer, appreciate very much the action taken 
 on the part of the coal operators, and I think we can assure them- that 
 the Mining Congress will not only be of benefit to them, but that they 
 can be of very great benefit to the Mining Congress. 
 
 The next address on the program will be by Mr. George E. Baldwin, 
 of Valdez, Alaska, on the subject of "The Alaskan Question." 
 
 MR. BALDWIN: Mr. Chairman and Ladies and Gentlemen: I 
 was put down to speak on the "Alaskan Question," but wish to say that 
 broadly speaking there is no "Alaskan Question" any more than there 
 was an "Ohio Question" a hundred years ago, or a "Wyoming Question" 
 fifty years ago. I shall specifically speak upon the needs of Alaska. 
 
 Mr. Baldwin's paper will be found at page 299 of this report. 
 
 MR. BALDWIN, continuing: What Alaska asks is the same treat- 
 ment that has been accorded the pioneers ever since the first settlers 
 crossed the Alleghenys and went upon the public lands. If your system 
 has been a failure so far, we don't see any evidence of it, because when 
 we come down to these cities from the wilds of Alaska, they look pretty 
 good to us. (Applause.) 
 
 CHAIRMlAN BUCKLEY: Gentlemen, the Alaskan question has 
 perhaps received more publicity the last few years than any other sub- 
 
AMERICAN MINING CONGRESS 77 
 
 ject concerning the American people. As this matter is being ex- 
 haustively discussed by papers this morning, there may be others here 
 who would like to speak on the subject, and opportunity is now af- 
 forded them. 
 
 MR. WILLIAM GRIFFITH, Pennsylvania: I feel, gentlemen, 
 like saying a word to the Mining Congress, from the view point of 
 practical mining engineering of today, with regard to the effects of 
 geological structure upon the coal of Alaska. You know the geological 
 survey of the United States reports about the conditions with refer- 
 ence to the purely geological question, and they have but little to do 
 with the economics of these matters. Now, any mining engineer who 
 is interested in the practical mining of coal today, who goes into those 
 Alaskan fields, will immediately be impressed with the very great and 
 very unfavorable effects of the geological structure upon the econom- 
 ical condition affecting the coal beds, and the result of all this is that 
 the quantities and values of the Alaska coals, especially the high grade 
 coals, have been enormously and outrageously exaggerated through 
 the public press all over the country, and we have been getting errone- 
 ous ideas in regard to these things. After returning from Alaska after 
 making a couple of examinations of the Matenuska fields, I was par- 
 ticularly impressed with the exaggeration that was going on through 
 the country, and in my efforts to try to stem this tide I prepared a 
 paper some time ago for publication, and although I exerted my very 
 best efforts I absolutely failed to have this matter published. Of course, 
 the technical journals are willing to take articles of that kind, but the 
 newspapers don't want any articles, apparently, that consist simply of 
 unadorned facts. It is almost an impossibility to get anything of that 
 kind before the American people. Now in order to bring this matter 
 properly and fully before you perhaps I had better read that paper to 
 you. The idea of this little talk is to just set before you the true condi- 
 tions from the view point of the miner today, with reference to the 
 mining practice of today, not the mining practice of a thousand 
 years from today, when the improvements in the Arts and 
 Sciences may enable us to mine and use a whole lot more coal than 
 we now do but the practical mining basis that Dr. Douglas talked to 
 us last night. 
 
 Mr. Griffith's paper will be found at page 329 of this report. 
 
 MR. GRIFFITH (continuing): Now, it must be evident to any- 
 body who has considered this subject that if it shall be concluded wise 
 to lease the coal beds of Alaska, that the royalty, to be received by the 
 Nation from such leases will be the very smallest benefit the Nation 
 will receive. The great benefit to this Nation and to its people will 
 come from the development of that coal for defensive purposes of the 
 Nation in the navy, for industrial and other uses, and for the develop- 
 ment of the territory, the development of Alaska, and that small por- 
 tion of the royalty that comes to the Nation should be spent for the 
 welfare of Alaska, for the schools and other useful institutions in that 
 locality. I thank you very much, gentlemen. (Applause.) 
 
 (At this point President John Dern assumed the chair.) 
 
 THE PRESIDENT: Gentlemen, before proceeding further with 
 our program, your Chairman desires to express his pleasure to the 
 members and delegates for the good attendance at all of our sessions. 
 We have had a splendid attendance, which is gratifying to those who ad- 
 dress you. The only fault I have to find is that you are not prompt in 
 the beginning; you come in a little bit too late. This afternoon we will 
 be favored with an address by the Governor from my state (Governor 
 William Spry, of Utah), whom -we esteem very highly, and who is the 
 only western governor who has given up his time to come all the way 
 from Utah to attend the American Mining Congress. (Applause.) And 
 I bespeak for him as a personal favor to me, and of course by doing 
 that you will confer it upon him, that you will be here promptly at 2 
 o'clock and give him a good audience. 
 
78 OFFICIAL PROCEEDINGS 
 
 AIR. PHILLIP N. MOORE, Missouri: I would like before this 
 Alaska leasing question be passed, to ask Mr. Griffith whether he 
 shares the opinions of the preceding speaker as to the absolute impossi- 
 bility or impracticability of a leasing system for the Alaska coal. 
 
 MR. GRIFFITH: I think time leases are a bad thing, and prob- 
 ably that is what the preceding speaker ref.erred to. We have found 
 in the anthracite coal fields that a perpetual lease, that is, for all the 
 coal in the ground, is one of the very best arrangements that the 
 operator can use. It not only tends to conserve the coal, but enables 
 the operator to use his money for equipment instead of spending so 
 much for the land, and if perpetual leases for Alaskan coal were arranged 
 for under the Government in such a manner that they would not be 
 hampered by Government red tape, I believe that it would add very 
 much to the rapidity of the development of Alaska. Such lessees 
 should have two or three years before the minimum begins in order 
 that the lessees may investigate the land and find coal, in the first place; 
 and in the second place that they may have an opportunity to build 
 their operations and equip them in good style, operations and equip- 
 ment intended to last if possible until coal is exhausted. If you have 
 perpetual leases, which are really a sale of the coal on the installment 
 plan, to be paid for as it is mined (that is what a perpetual lease is), 
 that sort of lease would be all right, and it is right in line with what 
 Dr. Douglas recommended last night the leasing of land with royalty 
 from time to time during its tenancy. 
 
 THE PRESIDENT: Mr. Falcon Joslin, of Fairbanks, Alaska, 
 will now address the Convention on "The Alaskan Coal Situation." 
 
 Mr. Joslin's paper will be found at page 351 of this report. 
 
 Whereupon an adjournment was taken until 2 o'clock p. m. 
 
 FRIDAY, OCTOBER 27, 1911. 
 Afternoon Session. 
 
 The meeting was called to order by the President. 
 
 THE PRESIDENT: The first number on the program will be a 
 paper by Mr. Jesse Knight, of Utah, on "Conservation and the People." 
 Mr. Knight has requested Dr. Kingsbury, President of the University 
 of Utah, to read the paper for him. 
 
 Mr. Knight's paper will be found at page 159 of this report. 
 
 THE PRESIDENT: Inasmuch as Mr. Knight requested Profes- 
 sor Kingsbury to read his paper for him, he might be willing to eluci- 
 date a little further on the same subject. If Mr. Knight cares to be 
 heard he mav have the privilege now. 
 
 MR. KNIGHT: I am not used to public speaking. I am more 
 used to doing things with muscles than with language, and I will not 
 detain the audience but a few minutes. I want to say a few words on 
 the consistency of preserving power sites. We are so situated in Utah 
 that in any mine in the high mountains small streams of great fall 
 can be utilized and it can hurt no one to build a little power plant 
 where coal is almost impossible of access. You can easily run a wire 
 and help out the mining industry more with that than any one thing 
 I know of, and along the mountains a stream can be used two or three 
 times and then drop into its natural channel before it reaches any 
 possible chance for irrigation. Then again in building these power 
 plants we have a low water season, and we have to make reservoirs 
 and instead of wasting the water it is all preserved and. consequently 
 from every standpoint it is a saving and a help to the farmers. I have 
 never heard but one objection or one reason, and that was because of 
 the use of this water. We told them that considerable more water was 
 saved by putting it through the pipe than to let it lose a large portion 
 of its volume among the rocks and gravel and that we would bring it 
 down to the headgate in time for, them to use it. He said, "What good 
 is it when you take the electricity out of it" (laughter). That is the 
 
AMERICAN MINING CONGRESS 79 
 
 only reason I have ever heard in God's world for preserving it. That 
 may be a good reason, I am not mechanical enough to say, but I am 
 suggesting that it is not a good reason and I will endeavor to give you 
 my reason. From my point of view there can only be one reason for 
 holding the power sites off the market, or leasing them. For that mat- 
 ter some of them in our state have been taken off the market. I can 
 see no reason in the wide world, only to hold them until the big monopo- 
 lies or the big combines that already use electricity, get ready to use 
 them and then there is not any doubt in my mind but what they would 
 do just like the larger interests, for when they want something they 
 usually can have it for nothing. That is the way I view things, at 
 any rate. If any one here in the East can give me any reason for 
 hojding the power sites off the market, why I am here to learn. I 
 haven't been able to think of any reason. Under the statutes of our 
 state they can't hold the power sites unless they build on them, and 
 if they built on them no matter how many big concerns built, wouldn't 
 it be the means, if they built more than they deeded, wouldn't it be 
 the means of selling power cheaper? If they were to build on all the 
 power sites in the United States, I don't care how big the concerns 
 are, it would have that effect, but I take it there is no danger of building 
 on all of them, only so far as they can sell power and keep the price 
 up to prohibitory use from the common people. My object in good 
 power plants is also for self protection. The electric power that was 
 being sold where I was operating, in a mining camp where coal was 
 extremely high, I undertook individually to do what I have already out- 
 lined in the paper, and I don't wish to take up much more time. We 
 have so many better speakers, but I don't believe you have any 
 harder workers or better thinkers than I am. (Applause.) I am a 
 pioneer. I have been in Utah 64 years, and I have always been a hard 
 worker. I don't propose to make a long talk, but I want to compliment 
 the papers that have been read and the discussion that has been had. 
 It has been very instructive to me, and I see by the conditions here 
 that the country is over developed until the people want some way to 
 be relieved from an oversurplus and bring the prices down, and I want 
 to help the 'Eastern people as well as the Western people in anything 
 that is right and just. I thank you. (Applause.) 
 
 THE PRESIDENT: As I stated this morning just before ad- 
 journment, we will have the pleasure of listening to one of our Western 
 Governors, the Governor from my own state, who has taken the time 
 to come the long distance from Utah to Chicago to address this con- 
 vention. The Governor is a man of the people, one of the most popular 
 of the West, one who understands the needs of the people and under- 
 stands the Western country, and his subject this afternoon on which 
 he will speak is "The Public Lands Question of the West." I have the 
 pleasure, ladies and gentlemen, of introducing Governor William Spry, 
 of Utah. (Applause.) 
 
 Governor Spry's address will be found at page 138 of this report. 
 
 THE PRESIDENT: Gentlemen, next on the program is an ad- 
 dress by Dr. George Otis Smith, Director of the United States Geological 
 Survey, on the subject of "What the West Needs in Coal Land 
 Legislation." 
 
 Dr. Smith's paper will be found at page 285 of this report. 
 
 THE PRESIDENT: The next paper on the program is a dis- 
 cussion of the Malm process, by Col. A. G. Brownlee, Idaho Springs, 
 Colo., but Mr. Brownlee is very sick and has not been able to attend 
 this convention. The paper will be read and discussed by Mr. John L. 
 Malm. 
 
 Mr. Brownlee's address will be found at page 168 of this report. 
 
 MR. \\M. \>. DANIELS, of Colorado: I would like to ask Mr. 
 Malm a question. He will appreciate the fact that suggestions pertaining 
 to the handling of low grade ore are received with just a little bit of sus- 
 picion, and I would like to ask if it would be agreeable to you. sir, if a 
 competent committee of metallurgists were appointed by this Congress 
 
80 OFFICIAL PROCEEDINGS 
 
 to take up the matter of the Malm process and make a thorough and 
 complete examination so as to report to this Congress later on? 
 
 MR. MALM: In referring to the new Bureau of Mines, among 
 other matters, that was one of the things I had in mind, and we could 
 thereby get the support of the Bureau of Mines in the solution of this 
 problem without a large appropriation or perhaps no appropriation from 
 Congress. 
 
 Dr. Holmes has made mention of the fact that Dr. Douglas has 
 been in a position to take, accept and install safety devices as sug- 
 gested by the bureau for the conservation of life and of coal. Dr. 
 Douglas has installed these devices and has demonstrated their value, 
 isuch suggestions are exactly what the metal miners want. We do hope 
 that the ethics of the Bureau of Mines and its staff will be such as to 
 permit them to investigate metallurgical methods and recommend to 
 the metal miners such as have sufficient merit to warrant their 
 exploitation. 
 
 Metal miners through the Western states are afraid of processes 
 generally. They would, however, make possible a thorough commer- 
 cial demonstration of any methods which claimed to solve the complex 
 ore problem provided it was investigated and endorsed by either the 
 staff of the Bureau of Mines or a committee of able and unprejudiced 
 metallurgists appointed by such an organization as this the American 
 Mining Congress in whom the mining fraternity has confidence. Mr. 
 Brunton, Mr. Brownlee, Mr. Stuart Crossdale and- others of this Con- 
 gress, have given this matter some thought and I desire to say that 
 it would not have been brought to the present state of perfection had 
 it not been for the encouragement received from these men. I would 
 most certainly welcome an investigation of this method which I bring 
 to you and would offer every facility. 
 
 MR. DANIELS: Will a motion for the appointment of a com- 
 mittee or a commission of experts be in order? 
 
 (At this point Vice-President S. A. Taylor took the chair.) 
 
 CHAIRMAN TAYLOR: I think probably it would be a question 
 whether they would serve gratuitously or not. If they would expect to 
 be paid it is a question whether the Congress would have the funds to 
 compensate them. I know of no objection outside of that at present. 
 
 MR. DANIELS: If a motion can now be entertained I want to 
 move a committee of five competent metallurgists be appointed by the 
 President of the Congress to investigate the Malm process. 
 
 MR. F. M. RYNERSON, Washington: I second the motion. 
 
 MR. DANIELS: I believe that thoroughly competent gentlemen 
 will be very glad to serve the Congress without expecting any remun- 
 eration; but if they do not I believe that so far as the interests of the 
 metal mining industry are concerned, no money can be spent by the 
 Congress that will be of more benefit to the miners, to the entire Rocky 
 Mountain region, and to the Congress itself as money that it might 
 be necessary to pay to competent men to investigate this Malm process 
 or any other process that may be brought be-fore us that promises a 
 reasonable assurance of success. If I may digress enough to speak 
 briefly in regard to the Bureau of Mines, if a resolution that I had 
 the honor of introducing this morning shall be adopted by the Con- 
 gress, the appropriation even though it does not reach the amount 
 named in that resolution, shall be made for the benefit of the Bureau 
 of Mines. I believe that no part of this appropriation can be expended 
 with more benefit to the interests of the metal miners than towards the 
 investigation and reporting to us on this very important matter. Mr. 
 Malm answered the second question which was whether he would 
 submit to a thorough investigation by a competent commission under 
 authority of the bureau of mines, and I believe that the present director 
 of the Bureau of Mines if he gets the money can take up those very 
 things. Now it is impossible to test these processes to determine 
 whether they are available or not without some money, and these 
 gentlemen who have the processes come to us and say we have got 
 
AMERICAN MINING CONGRESS 81 
 
 it so far and can't go any farther until we have some more money. As 
 I said, we are a little suspicious of Mr. Malm and some of the others, 
 and we hesitate about putting up the money, if perchance we have it. 
 If Mr. Malm, or any one else, can come to us with the authority of a 
 competent Commission, appointed and acting through the Bureau of 
 Mines or the American Mining Congress and can say there is good 
 reason at least to believe that this process will be available, we are then 
 encouraged to go down in our pockets. 
 
 MR. MALM: Our industry is in a deplorable condition, if we 
 can't get the contribution of the services of engineers for the investi- 
 gation of the problem which is as important as fhis one. It seems to 
 me enough metal miners and metallurgists of prominence and of ability 
 ought to be found connected with this Congress to offer their services. 
 The reason I recommend this is I believe that an investigation of this 
 kind, working in connection with the committee on frauds, if you 
 have such a committee, would be of . great benefit. I should like to 
 see a committee of the American Mining C6ngress, or of any other 
 scientific association which is interested in this problem, get at the 
 facts and report. 
 
 MR. DANIELS: I would just like to say if my motion does not 
 include the investigation of any process that seems worthy I would 
 like to so amend it. 
 
 MR. E. L. MARTIN, Georgia: I don't want to criticise at all, 
 but I know how hard it has been for this American Mining Congress 
 to pay even its Secretary, and for that reason we have to be pretty 
 careful about voting to spend money for this particular purpose, e'spe- 
 cially when we haven't the money. This is the only fault I have to 
 find about it. Our Secretary could inform us about our financial con- 
 dition better than any one else. 
 
 CHAIRMAN TAYLOR: He might be a little bit backward about 
 it, but I know the Secretary's salary is practically two years in arrears, 
 so that he would likely not care to state, but I think the Congress 
 ought to know that. I felt that we would have some difficulty in paying 
 the expenses of the services of experts of this kind, and yet I believe 
 with Mr. Malm that there ought to be engineers sufficiently interested 
 to investigate these questions and give the mining world the benefit 
 of their investigation. 
 
 MR. J. M. DINWIDDIE, Iowa: If we go on record adopting this 
 motion we certainly will show that we are somewhat interested in metal 
 mining, and if we fail to raise the money to pay the expenses of these 
 men and we can't get any to volunteer their services, it will not reflect 
 on our intention at least, and I would like to see the motion adopted to 
 see what we can do. 
 
 .MR. HORACE J. STEVENS, Michigan: It seems to me while 
 this is a matter a little outside of the proceedings, that we ought to pass 
 the hat and pay the Secretary his back salary. I am willing to chip 
 in $10 and. perhaps a great many others are willing to contribute. It 
 is not creditable to .us to .leave matters in this condition. 
 
 Upon the motion being put it was declared carried. 
 
 MR. MALM: I should like to see that motion refer to all processes 
 for the treatment of complex ores. 
 
 MR. DANIELS: I have no objection to any minor change of 
 that kind, that will accomplish the result. 
 
 MR. STEVENS: My preceding remarks were entirely out of 
 order, but it seems to me that something should be done regarding 
 this two years' back salary. If there is no other way of raising it, why 
 can't we get together and square it up? 
 
 MR. RYNERSON: I rise to a question of personal privilege. I 
 move you, if it is in order that tomorrow morning after the reading 
 of the minutes of this Congress, that this debt of the Secretary be 
 made a special order of business, that it might be taken up and the 
 debt liquidated, so far as possible, anyway. 
 
 Motion unanimously carried. 
 
82 OFFICIAL PROCEEDINGS 
 
 CHAIRMAN TAYLOR: We have a little time and I notice that 
 we passed over the discussion under the five-minute rule of Dr. Smith's 
 paper. We will now hear any remarks or discussion of that paper, 
 if ^there be any. 
 
 SECRETARY CALLBREATH: Mr. President, I would like to 
 make an explanation of a statement which I think Dr. Smith did intend 
 to make. The statement was made by Dr. Smith that all the money 
 received from the Government lands in the West was returned to the 
 West through the reclamation service. In a way that is true, but it 
 amounts to a borrowing of this money and not a payment to the 
 West. The money becomes a mortgage upon the land which is to be 
 reclaimed, and will eventually be paid back to the United States 
 treasury. While the reclamation work is of great value to the West 
 it is hardly fair to say that this money is paid back to the West; it is 
 loaned back to the West. 
 
 MR. DANIELS: I would like to say just a word by way per- 
 haps of something that might be termed as ultra conservationism. It 
 was with a very great deal of pleasure and interest that I listened this 
 afternoon to two of the most intelligent and temperate discussions of 
 this question that it has ever been my lot to hear, but if we will stop 
 for a moment to think that it was the violation of law that made ultra 
 conservationism. we will appreciate at once that there was some reason 
 for it. I am minded to think of the different sentiment that is exhibited 
 in this Congress from time to time in regard to the administration of 
 the forestry bureau. I believe that some of those present, none of 
 those perhaps who read the report of the forestry committee appointed 
 by this Congress which was presented to the session at Goldfield two 
 years ago, will accuse any member of' that committee of being preju- 
 diced in favor of the then administration of the forestry bureau. That 
 committee up to the time that I ceased to be a member of it, existed 
 for about a year and half. It invited complaint from all over the Rocky 
 Mountain region; it investigated the complaints carefully, and the net 
 result was that it could find no good cause of complaint against the 
 administration of the forestry bureau that was not immediately rem- 
 edied when brought to the attention of the proper officers, except one 
 complaint concerning the use of timber. 
 
 Perhaps because there was no one to defend it this report was 
 practically kicked under the table and the members of the committee 
 with it, because the session at Goldfield, as it has been reported to me, 
 would not listen to anything in the way of criticism of Mr. Pinchot. 
 We seem to have drifted a long way on the other side. Now this 
 committee found what has been my own observation, so far as the 
 state of Colorado is concerned, during an experience of about 16 years 
 of metal mining, that the great trouble with the forestry bureau, the 
 great cause of complaint was the method necessary to comply with the 
 law in locating and proving up mineral claims. There were abuses by 
 over zealous employes and by employes that, as has been said, by 
 some one, deemed themselves autocrats by virtue of their position, but 
 those abuses after they came to the knowledge of the forestry com- 
 mittee as then composed, were remedied just as soon as they were 
 properly brought to the attention of the proper officers. There was at 
 one time a rule of the bureau requiring that a- ranger should pass upon 
 a claim and say whether it was likely to make a paying mine or not, 
 before the approval of the application for a patent. Well, that was 
 one of the most absurd things that was ever thought of, but when it was 
 brought to Mr. Pinchot's attention it was remedied. There is no such 
 requirement as that now, and has not been for more than two years, 
 and yet within the past three months the Governor of that great mining 
 state has said that it is still the practice of the forestry bureau. I 
 have no brief to defend the forestry bureau, or the ex-forester, but let us 
 give fair, honest and candid treatment. 
 
 MR. DINWIDDIE: Mr. Chairman, have you a committee on 
 fraud, to report? 
 
AMERICAN MINING CONGRESS . 83 
 
 SECRETARY CALLBREATH: There was no such committee 
 appointed last year. 
 
 MR. DTNWIDDIE: I notice in the proceedings of 1909 that 
 a resolution was offered asking those interested to urge both state 
 and Nation to pass a law requiring sworn statements of the conditions 
 of mines. That was in connection with the item of fraud. It seems to 
 me that they commenced after the fraud had been committed. What I 
 want to argue for and in the interest of a revival of legitimate mining, 
 is that there should be such a committee and that the committee should 
 provide that the public should Icnow from whence the land came out 
 of which the claim was made, what it cost, what it is capitalized for, 
 what the promoter got out of it, and there should be no permission to 
 sell promoters stock until the treasury stock is exhausted. To put those 
 things in a way accessible to the public before the mine was sold, 
 before it was promoted, would be a step in the right way to prevent 
 fraud, and then when we investigate we know what we are doing. 1 
 believe that would revive legitimate mining conditions in our country 
 and prevent promoters from disgracing the mining industry. 
 
 SECRETARY CALLBREATH: May I say a word on the sub- 
 ject? I have felt during all my time as Secretary of the Mining Con- 
 gress that the subject which has just been under discussion was one 
 of the most important items of work which the Mining Congress could 
 carry on. I have felt that no effort would be of greater service than 
 that which would protect the mining investor against unfair promo- 
 tion, and direct him into those channels into which he might hope for 
 a profit. What the West needs is the greater development of its min- 
 eral resources, and what the Nation needs is that there shall be greater 
 development of her gold resources. We are all agreed that the 
 financial condition of our country is fundamentally wrong. We are 
 through commissions and otherwise attempting to frame some method 
 by which the present dangerous condition can be averted. When 
 California produced $50,000,000 worth of gold in 'a year there was no 
 money stringency in this country, and whenever the time comes that 
 our Western mountains, pouring forth their stream of gold, shall again 
 produce a proportionate amount, all our monetary commissions can 
 retire. We will have no further use for them. How are we going to 
 do that? We must do it by honest, intelligent development work. We 
 must do it by the encouragement of those men like our friend who 
 stood before you this afternoon with a process, by which he believes 
 that he can solve the treatment of low grade ores on an economical 
 basis. The great wealth of the West is not in the high grade ore which 
 we hear so much about. It is not the Independence and the Portland 
 and the other big gold producing mines, but it is the low grade ore 
 where a difference of 50-cents a ton in the cost of treatment or in trans- 
 portation would make the difference between success and failure in 
 management. How are we going to work this out? By intelligent and 
 continued development work and investigation along the various lines. 
 
 One of the things which the West needed through the Bureau of 
 Mines was that it might carry on to a final conclusion the very investiga- 
 tion which has been carried on thus far through what is known as the 
 Malm process. The word process is a hateful word. Hundreds of men 
 have lost fortunes by trying to develop secret processes because they 
 were not smart enough to understand whether the man presenting the 
 process to them was telling the truth or not. Men have shown by labora- 
 tory tests something which apparently looked good by which the process 
 man seemed able to take out of the ore values which assayers could 
 not find, and hundreds of men have invested their money and lost. 
 The mention of a secret process is hateful, and yet we must not lose 
 sight of the fact that it is only through investigation that better results 
 can be obtained. Nature put these values in the ore, and there must 
 be some scientific process by which we can crawl into the hole which 
 nature went in and come out with the values of all those metals, ready 
 for the market. This is not the work of a day. It is the work of years. 
 
84 OFFICIAL PROCEEDINGS 
 
 It is not a work which is going to cost a few dollars; it is going to 
 cost thousands and possible hundreds of thousands of dollars to carry 
 out such scientific investigation as will enable us to reverse the process 
 of nature. Today we are paying thousands of dollars to the smelters 
 to buy coal and coke to burn up certain parts of the ore and send it 
 off into the air through the smokestack, in order that we may get the 
 residue of mineral value, often burning out more than we recover. 
 This enormous waste should be prevented. Its prevention will be 
 real conservation. The protection of investors is a necessary element 
 entering into this investigation, because just to the extent that you 
 have money invested in honest, intelligent development enterprises you 
 will have the men back of the investigations which will lead to the 
 final result. You will have the men in the field who will insist that 
 Congress shall open the door to appropriations by which the Bureau 
 ot Mines can be authorized to carry on these investigations. In 
 making the last appropriation we secured for the Bureau of Mines 
 Congress deliberately took out of the appropriation act those words 
 which refer to the precious metal mining of the West. We were help- 
 less. The man who went to Washington in that behalf was not able 
 to go at the opening of Congress because there was no money in the 
 treasury to meet the expense. When he did go the appropriation bill 
 was so far made up that it was impossible to secure a change. And 
 so the act was emasculated, and when we get down to the point where 
 there was a reference to precious metals, those words were stricken 
 out. 
 
 .The reason is simple enough. In a general way we all endorse 
 the principle. We all know that the expenses of the National Gov- 
 ernment are a great deal more than they should be. We know that 
 when a door is open to any new line of appropriations that it continues 
 to open wider and wider. The members of Congress who opposed those 
 appropriations opposed them for the very same reason that they 
 opposed the Bureau of Mines bill. Because it opened a door to a new 
 line of appropriations. The Bureau of Mines bill was passed at the 
 request of the precious metal miners, but with special reference to the 
 protection of the lives of miners in the coal mines. Without the aid 
 and sympathy of the coal miners we never could have secured the sup- 
 port which opened this door. We have the same fight over the first 
 appropriation for precious metal mining investigations and we have 
 that fight to make with our coal friends feeling no particular interest. 
 In the Bureau of Mines campaign they were interested, and I would 
 like to say in response to something said on the floor this morning, 
 that the precious metal miners succeeded in bringing about the pas- 
 sage of the Bureau of Mines bill. I think I should say that the coal 
 people spent very much more money in that campaign than the metal 
 miners. The coal miners came to Washington one at a time and a 
 dozen at a time, and went to the members of Congress and hefped us 
 get that influence which enabled us to secure the passage of the Bureau 
 of Mines bill. All of our efforts from the West would not have suc- 
 ceeded had we not had their support. We are needing their support 
 in this new fight and I believe they are going to be with us, but we 
 must remember that this is personal to the West, the coal people have 
 no special interest in that investigation, and therefore we must secure 
 their support by some other method than by appeal to their personal 
 interest. I believe the coal people will stand with us in this fight, 
 but we must keep up the fight, and it is not an easy fight. 
 
 f Some people think it is easy to go down to Washington and get a 
 million dollars for some worthy purpose, but having gone through a few 
 campaigns of this kind I want to say that to get a ten thousand dollar ap- 
 propriation requires a long, hard fight, and it won't win itself. If we suc- 
 ceed in that^we must have the support of a strong galaxy of friends back 
 of us, and just to the extent that we make mining profitable, just to 
 the extent that we secure new capital invested in our mines in the 
 West, just to that exact extent may we hope to have men back of us 
 
AMERICAN MINING CONGRESS 85 
 
 to help in this fight. Therefore, the work by which we hope to protect 
 investments, is extremely and vitally important, and I have felt all 
 the year that it was one of the most important things we had to do. 
 We had committees for two or three years and some work was done, 
 and fairly good work perhaps. One bill was recommended called the 
 Pardee law, which made it a misdemeanor to misrepresent the sale of 
 mining stock, remedial of course only, and we believed that it was the 
 best thing that could have been done at the time. This law has been 
 enacted by fourteen states. 
 
 Now we are approaching a much larger field. I believe that 
 the only final solution is an entire revision of those laws which 
 authorize the creation of public corporations. Just so long as a cor- 
 poration may pay up a million dollars worth of capital stock, with 
 a two cent postage or four stakes in the ground, the state has set 
 its seal of approval upon the opening doors of fraud, and therefore in 
 my judgment this work is a work which will require experience and 
 the complete and combined effort of the best men for years to ac- 
 complish. I don't think it will be done by committees who just make 
 it a little play spell and make a report to this Congress. You must have 
 a committee that will work. You can't expect any committee on earth 
 to look into these things and go to the bottom of these things, investi- 
 gating the conditions in all the different states and framing up that 
 plan which will meet conditions best, because it is a long, hard task, 
 and will not be solved by the appointment of a committee. There are 
 many different lines of work we ought, to carry on. I hope the day 
 will come when we will have facilities to carry them on properly. 
 
 MR. DANIELS: When I first became a member of the Ameri- 
 can Mining Congress, almost my first experience was the report 
 of a committee on mining frauds, dealing with the Pardee law, 
 which was added to the already too numerous laws on the statute books 
 for the punishment of fraud after it was committed, a'nd full and free 
 discussion of the matter was prevented by what I believed to have 
 been an unfair ruling. Since that time I have expended more than $250 
 in an effort to get a good law requiring complete publicity, which I 
 believe is the only remedy for prevention, and I spent $250 of my 
 own money, without any assistance whatever from the American Mining 
 Congress. I presented a resolution containing a proposed law to the 
 session at Pittsburgh, and it was there passed upon without any dis- 
 cussion, because we had so much else to do that we couldn't discuss 
 matters that were of importance to the miners. That law had been 
 drawn up and examined and amended and changed by three or four 
 of the best mining attorneys in Colorado, among them no less a well 
 known authority than Judge Morrison. The committee on resolu- 
 tions reported on that law that it contained good points, and they 
 suggested and recommended that it be referred to the committee on 
 mining frauds, and that it be affirmed by attorneys and reported to 
 the next session. That is the last that was ever heard of it until I 
 reintroduced it, or tried to reintroduce it, I don't know yet whether 
 I have been successful or not. I left the Mining Congress, withdrew 
 as a member, because in my opinion it has for six or seven years been 
 standing up in bold marshal array, with courageous face to the front, 
 drums beating and marching backward. I believe that has been the 
 position of the Congress, and I believe that many of your gentlemen 
 who will examine the proceedings of the Congress for the last six 
 years with unbiased minds, and with this particular reference to mining 
 frauds will agree with me. I am very glad indeed to have the assistance 
 this evening of the able Secretary to the particular proposition of an 
 effort to prevent mining frauds. We must have, to rejuvenate and 
 make our Western metal mines producing, we must have develop- 
 ment work, which costs money, and you can't get the money from 
 now on until one of two things happens. We have to convince the 
 man who has got the money to invest that we are honest and sincere, 
 that the money he pays us will be put into the ground in trying to 
 
86 OFFICIAL PROCEEDINGS 
 
 make mines, instead of into our pockets, or else we have got to wait 
 until a new crop of investors grow up. Which is the best to do? You 
 can't legislate honesty into a man who is dishonest. The only way in 
 which you can make that man honest is to provide that he must tell 
 all of the truth in regard to his proposition, whatever it may be, and 
 I tried for 13 successive sessions of the Colorado legislature to get 
 this same proposed mining law adopted by the way, it does not recog- 
 nize the sometimes assumed fact that the mine promoter is the only 
 one who is dishonest, and the proposed legislation applies to all pro- 
 moters whether they be metal men, irrigation, or United Steel. 
 
 MR. MALM: I desire to make the suggestion to the board 
 of directors of this Mining Congress that it might be wise to have 
 a board of engineers convene either at Salt Lake City or Denver 
 before whom the various process men might appear and submit their 
 ideas. They ought to be invited to come before such a commission of 
 engineers and I think if they have anything of merit they will be glad 
 to and if they have not they will keep away. I wish to challenge the 
 various process men to a discussion before the committee suggested, 
 of the relative merits of the many processes, believing that the method 
 which presents the greatest merits will be supported and thoroughly 
 proven. I a'm willing to take my chances on being eliminated along 
 with any of the others if it will be the means of bringing forth any 
 method which will solve the question. 
 
 Appoint this committee at once, as it is the most practical means 
 of arriving at the solution of the greatest problem now before the metal 
 mining industry. 
 
 Personally I will be glad to present the fullest detail of the method 
 of dry chlorination as developed by The Western Metals Company. 
 
 MR. H. O. GRANBERG, Colorado: I would like to ask if it is of 
 sufficient importance to this Mining Congress to consider methods that 
 will truly conserve metals. I claim that it is worthy of careful and 
 earnest consideration. I certainly believe the American Mining Congress 
 should have a committee of a number of men of ability to investigate 
 this waste and the various processes for the conservation of metals, 
 whether it be iron or gold, to see if some definite saving could not be 
 effected. 
 
 Whereupon an adjournment was taken until 8 o'clock p. m. 
 
 FRIDAY, OCTOBER 27, 1911. 
 Evening Session, Auditorium Hotel. 
 
 The meeting was called to order by the President. 
 
 THE PRESIDENT: The first thing on the program is the report 
 of the committee on the general revision of mineral land laws, by 
 Mr. E. B. Kirby, Chairman, St. Louis, Mo. 
 
 MR. KIRBY: Your committee wishes now to report progress 
 and ask for a continuation during the coming year. In taking up the 
 matter at Washington it was found that the special session of last 
 summer would not undertake any general revision. A general resolu- 
 tion was therefore prepared, and this will be introduced at the coming 
 session this winter, by our friends in Congress. It will be to the fol- 
 lowing effect: 
 
 Committee report will be found at page 119 of this report. 
 
 MR. KIRBY (continuing): Now, since it was found that we had 
 to wait in this matter, your committee took up the question with the 
 senators and representatives of the western states affected, and also 
 with ^ their governors. Their replies, which I would like to read to 
 you if there were time, indicate that they are thoroughly with us upon 
 this question, and that the- American Mining Congress has had the 
 general support and approval of the public men of the West to such 
 an extent that many of them take the keenest personal interest in this 
 question, so that we feel assured that at the next session this winter 
 
AMERICAN MINING CONGRESS 87 
 
 there will be effective action by Congress on it. Since our program 
 this evening is long I will not read this report, but simply add as one 
 of the explanatory matters, its substance, which is that when Congress 
 takes this action your committee proposes to bring before it a detailed 
 recommendation to urge that they form a commission, .a wisely selected 
 commission, authorized to draft a revised code for the use of Congress. 
 This commission should hold public hearings in mining centers in the 
 West and Alaska, and it should call before it men prominent for their 
 knowledge of prospecting, of claims, of locations, operating of mines, 
 and should invite opinions from the public bearing upon the specific 
 points at issue. The authorities and experience of other mining coun- 
 tries should be consulted, and the recommendations of the commission 
 should be presented in the form of a fully drafted report. This, gen- 
 tlemen, is the substance of what I will not attempt to read in detail. 
 
 MR. HARRY S. JOSEPH, Utah: I move you that the report of 
 the committee on the revision of mining laws be accepted with thanks, 
 and that the committee be continued. 
 
 Motion seconded and carried. 
 
 THE PRESIDENT: Gentlemen, we will now have the pleasure 
 of listening to the Honorable Martin D. Foster, chairman of the com- 
 mittee on mines and mining, House of Representatives, who will address 
 you on the subject of "The Relation of Congress to the Mining In- 
 dustry." (Applause.) 
 
 Congressman Foster's address will be found at page 390 of this 
 report. 
 
 THE PRESIDENT: The first meeting of the American Mining 
 Congress was held in Denver some 14 years ago. It was then organ- 
 ized by the western metal miners. Little was thought at that time 
 that we should extend our field to cover all branches of mining, but 
 particularly had organized the gold and silver miners. We have had 
 many very successful meetings; I don't think we have had any more 
 successful than the one which we are now holding in your beautiful 
 city. We have contended for years that the time has come when the 
 Federal Government should aid the mining industry in the same way 
 it has the farmer. Realizing that, we have asked and memorialized Con- 
 gress for years to create a department of Mines and Mining. It was 
 not granted to us, but eventually through the assistance of the coal 
 miners in the Middle West and the East, with their influence upon their 
 own Congressmen we .have succeeded in having the Bureau of Mines 
 established, which is the first stepping stone towards a department 
 which no doubt will come to us in time. I honestly believe we are 
 entitled to this and I hope 'that the time will not be very far off. 
 
 We have a gentleman with us tonight whom it is a special pleasure 
 for the western miners to meet, a gentleman of international reputa- 
 tion, and one to whom we are largely indebted for the development of 
 scientific mining and the reduction of precious metals. I have the 
 pi CD sure of introducing the Honorable John Hays Hammond, of New 
 York, who will address you on the subject of "Mining as an Investment." 
 (Applause.) 
 
 Mr. Hammond's address will be found at page 163 of this report. 
 
 THE PRESIDENT: It is indeed very gratifying to me, and I 
 know it is to every other member and delegate of the American Mining 
 Congress, that we are favored with the presence of eminent men, men 
 of national reputation and men in high positions of our government. 
 Their attendance at this meeting, their perusal of what has been said 
 by many of the delegates on the floor of the convention, give them full 
 information as to the condition in the various fields of mining, whether 
 it be in coal or metallurgical districts. If it were not for the fact that 
 you ladies and gentlemen who are here tonight are principally residents 
 of other cities I would almost hesitate to introduce a gentleman who 
 is a resident of Chicago, but I am sure a great many cf you have not 
 had the pleasure of seeing the man whom I am going to introduce, or 
 the privilege of listening to any of his remarks. I have the privilege 
 
88 OFFICIAL PROCEEDINGS 
 
 and pleasure now of introducing the Honorable Walter L. Fisher, the 
 Secretary of the Interior. (Applause.) Mr. Fisher has recently made 
 a trip to Alaska and has spent considerable time in that territory, has 
 looked into the matter most thoroughly and is prepared to give us an 
 intelligent report of the Alaskan situation. 
 
 SECRETARY FISHER: Mr. Chairman and Members of the Min- 
 ing Congress, Ladies and Gentlemen: It is not my custom to read an 
 address, but the importance of the matter is such that I have thought it 
 proper to put my remarks not only in writing but in print, and there are 
 some copies available for the members of the Congress who may pos- 
 sibly be interested in the matter at the close of the meeting. 
 
 Before taking up the subject of Alaskan problems I probably 
 should add one more definition to mining to that which my friend, Mr. 
 Hammond, has collected in his long experience. It is one which was 
 given to me in the West this summer, and it fits this occasion appro- 
 priately. A mine, it was said to me in the West, is a hole into which 
 more money is put than is ever taken out. (Laughter.) 
 
 Secretary Fisher's address will be found at page 363 of this 
 report. 
 
 THE PRESIDENT: Members and Delegates: I realize the hour 
 is getting late and you are anxious to get home, but we have a little 
 more business which is of great importance, and I beg of you to give 
 us a little more of your time so as to finish it. The next order of busi- 
 ness is the important business of acting on the report of the committee 
 on resolutions. 
 
 MR. E. L. MARTIN, Georgia: With the consent of the chairman 
 of the resolutions committee I would move you that a rising vote of 
 thanks be tendered the gentlemen for the very able and valuable ad- 
 dresses that have been delivered by them this evening before this Min- 
 ing Congress, Messrs. Foster, Hammond and Fisher. 
 
 MR. C. O. BARTLETT, Ohio: I second the motion. 
 
 (A rising vote of thanks was then extended to the gentlemen re- 
 ferred to.) 
 
 MR. E. M. DE LAVERGNE, Colorado, Chairman of the Commit- 
 tee on Resolutions: Mr. President and Members of the Mining Congress: 
 Your committee on resolutions is ready to report. I will say that the 
 committee was composed of energetic, courteous and kind gentlemen, 
 which made the duties of the chairman pleasant instead of arduous. 
 Before reading these resolutions it will be necessary that this Congress 
 decide upon the method of adoption, whether it will be as a whole or on 
 the individual resolutions. 
 
 DR. JOSEPH HYDE PRATT, North Carolina: I move that the 
 report of the committee be adopted as a whole. We have had a com- 
 mittee appointed of 35 or 40 members. It has taken every resolution 
 presented to it and gone over it carefully and sometimes referred reso- 
 lutions to special committees for further consideration, so that the 
 report as presented represents the work of twenty men for two solid 
 days. I move that the report when adopted be adopted as a whole. 
 
 MR. H. S. JOSEPH, Utah: I second the motion. 
 
 THE PRESIDENT: Gentlemen, you have heard the motion. 
 Are you ready for the question? 
 
 MR. W. P. DANIELS, Colorado: Mr. Chairman, I don't see how 
 any man on earth can vote on a question of that kind until we have 
 heard that report, and I want to make the point of order that we cannot 
 consistently and legally take any such action. 
 
 THE PRESIDENT: The motion is on the method of adoption. 
 
 MR. DANIELS: I understand it is a motion that permits us to 
 either adopt or reject it as a whole. It is absurd. 
 
 MR. JOSEPH: The report of the committee can be amended as 
 each resolution is read, and then adopted as, a whole as amended. 
 
 MR. DANIELS: I make the point of order against the motion, 
 Mr. Chairman. The point of order is, as I am requested to state it, 
 
AMERICAN MINING CONGRESS 89 
 
 that we cannot intelligently pass upon anything until we have heard 
 it in all its parts. 
 
 DR. PRATT: I withdraw the motion. 
 
 THE PRESIDENT: The chair rules that the report of the com- 
 mittee be read first. 
 
 MR. ELI T. CONNOR, Pennsylvania: Secretary of the Committee 
 on Resolutions: The report of the committee on resolutions consists 
 of resolutions recommended and adopted by the resolutions committee. 
 The first resolution, prepared by the committee as a substitute for Reso- 
 lutions No. 1, 7 and 11, is as follows: 
 
 Whereas, The development of processes of ore treatment 
 capable of handling with profit the vast low grade deposits and mine 
 dumps of our mining districts is of the greatest importance to the 
 mining industry and to all related industries; 
 
 Be It Resolved, That it be the sense of the American Mining 
 Congress that the Congress of the United States be and are hereby 
 memorialized to provide for the establishment, under the direction 
 of the Bureau of Mines, of a metallurgical experiment ore testing 
 station or stations for the purpose of devising methods for the 
 extraction of metals from low grade ores, and appropriate sufficient 
 funds for such purpose. 
 
 Resolved Further, That the officers of the American Mining 
 Congress draft a suitable bill providing for the proper carrying of 
 this resolution and that copies of the bill and of this resolution be 
 forwarded to the President of the United States and each senator 
 and representative; and that the officers of the American Mining 
 Congress use all honorable means to the end that such a bill may 
 become a law. 
 
 MR. DE LAVERGNE: Mr. President, in order that we do not 
 have to necessarily reread these resolutions, I will move that they be 
 adopted as they are read. Then they will be fresh in the mind. If 
 there is no objection to that I will move the adoption of the first 
 resolutiqn. 
 
 MR. BARTLETT: I second the motion. 
 
 MR. DANIELS: I would like to ask the chairman of the resolu- 
 tions committee whether the resolution just read is all that there is in 
 the report of the committee in regard to assistance in connection with 
 the Bureau of Mines or appropriation for the Bureau of Mines, for the 
 metal mining industry. I ask that question for the reason I want to 
 introduce and move a substitute for the report of the committee, if that 
 is all there is on that subject. 
 
 MR. DE LAVERGNE: That is practically all. 
 
 MR. DANIELS: I want to move as a substitute for the report 
 of the committee, the following resolution: That the Congress disap- 
 prove the appropriation for ore testing plants that are to be located at 
 specific places and earnestly urges the appropriation of $1,000,000 for 
 the use and benefit of the metal mining industry, the appropriation if 
 successfully procured to be expended in the discretion of the Bureau of 
 Mines. I move the adoption of the substitute. 
 
 MR. J. M. DINWIDDIE, Iowa: I second the motion. 
 
 THE PRESIDENT: Gentlemen, you have heard the substitute 
 offered by Mr. Daniels, of Colorado. Are you ready for the question? 
 
 MR. JOSEPH: I rise to a point of order. My point of order is 
 that this resolution was introduced at this morning's session in the 
 regular way and referred to the committee on resolutions, and there 
 acted upon, and the substance of that is contained in the resolution pre- 
 sented by the committee. 
 
 MR. CONNER: It has been stated that Resolution No. 1, as 
 presented by this committee, is based upon a compilation of Resolu- 
 tion No. 1 as originally introduced, Resolution No. 7 and Mr. Daniels' 
 Resolution No. 11, all pertaining to the same subject matter. 
 
c1 OFFICIAL PROCEEDINGS 
 
 MR. DANIELS: Mr. Chairman, I would like to be heard just a 
 moment on the point of order. If that point of order is sustained why 
 do we need to have this committee report to us, and act on their report 
 at all? 
 
 THE PRESIDENT: I don't believe the point of order is well 
 taken. I think the motion offered by Mr. Daniels is proper, and it is 
 up for a vote. 
 
 MR. DANIELS: I wish we had time so that the matter might be 
 gone into fully. I just want to say this as was recited in the preamble 
 of the resolutions that I offered this morning, that if we attempt to get 
 appropriations for specific purposes and have different specified places, 
 we will certainly fail in our effort to get any benefit. If the director of 
 the Bureau of Mines is not competent to take charge of an appropria- 
 tion made for the benefit of the metal mining industry, let us put some 
 one in his place who is competent. I believe that Dr. Holmes is en- 
 tirely competent and that if we can get a reasonable appropriation for 
 the benefit of the metal mining industry and leave it to the discretion 
 of that bureau, the present director of that bureau, we will be doing 
 the thing that is for the very best interest of the metal mining industry. 
 
 THE PRESIDENT: ^ The motion is on the adoption of the sub- 
 stitute offered by Mr. Daniels, of Colorado. 
 
 Motion lost. 
 
 THE PRESIDENT: The motion is now on the adoption of the 
 report of the committee. 
 
 Motion carried. 
 
 The secretary of the committee then read the next resolution, 
 introduced as Resolution No. 10, as follows: 
 
 In view of the increasing importance and complexity of the 
 mining and metallurgical industries, the deplorable waste in mining 
 under present methods, and the great need of trained men to aid 
 in improving these conditions and in developing greater safety and 
 efficiency; 
 
 Be It Resolved, That the American Mining Congress now in 
 session at Chicago urges the. Congress of the United States at 
 Washington to provide for aid and co-operation in the maintenance 
 of mining schools in the several states in a manner analogous to 
 that which has been done in behalf of agriculture. 
 
 Be It Resolved, That the members of the American Mining 
 Congress and the friends of the mining industry throughout the 
 country are hereby urged to co-operate in securing the proper legis- 
 lation necessary to carry above purpose into effect. 
 
 MR. DANIELS: I will try to get in the band wagon this time by 
 moving the adoption of the report. (Applause.) 
 
 MR. JOSEPH: I will second the motion. 
 
 THE PRESIDENT: Gentlemen, you have heard the motion. 
 Are you ready for the question? 
 
 MR. BURROUGHS, Michigan: I think that is not the proper 
 thing to state, that that shall be for the establishment of mining schools. 
 I am not sure that Congress could be convinced that all the states would 
 be benefited by mining schools as all states are benefited by agricultural 
 schools. I would be in favor rather that the appropriation should be 
 made for the development of the mineral industry, regardless of whether 
 they are mining states or not. 
 
 MR. JOSEPH: The resolution, Mr. Chairman, is in conformity 
 with remarks made here this evening by the Honorable Mr. Foster. 
 
 MR. BURROUGHS: Mr. Foster and myself had a little talk and 
 this very point came up in our talk, and I think it would aid in bringing 
 about the results sought by this resolution to make that change, that 
 it shall be for the development of the mineral resources of the states, 
 regardless of whether there are any mining schools or not, and if'there 
 are mining schools that the appropriation shall go to the mining schools, 
 naturally, but if there are no mining schools those appropriations should 
 
AMERICAN MINING CONGRESS 91 
 
 go to those states for the development of their mineral resources, be- 
 cause all states do have mineral resources. If all are equally considered 
 in this matter, we can probably pass such a bill. I believe that all would 
 be benefited by such an appropriation. 
 
 MR. JOSEPH: You will remember that the first resolution pro- 
 vides for the appropriation of moneys for an experiment station some- 
 where in the states to be designated by Congress. 
 
 MR. BURROUGHS: Not in all the states. 
 
 MR. JOSEPH: They might have a bureau in every state if it were 
 found necessary. 
 
 MR. BURROUGHS: But I think it is necessary that appropria- 
 tion should now be made, if at all, for the development of the mineral 
 resources of all the states. I would move that the resolution be 
 amended. 
 
 THE PRESIDENT: Mr. Burroughs, the probabilities are, which 
 is always the case, a start has to be made, and this will be the start 
 the same as they have done with reference to coal mining operations 
 for the men operating coal mines. They have not started all over the 
 entire country, but they have started in a number of states and it is 
 gradually extending all over the country. 
 
 The question before the house is on the adoption of the resolution. 
 
 MR. JOSEPH: I move the previous question. 
 
 MR. DANIELS: I rise to a point of order that the previous ques- 
 tion cannot be asked for when a gentleman is on the floor, has the floor 
 and has made a motion to amend. 
 
 MR. JOSEPH: The motion to amend was not seconded. 
 
 MR. DANIELS: I will second the motion as soon as opportunity 
 affords itself. I do not believe in stifling debate on these questions that 
 are important to the mining industry, and there has been no opportunity 
 as yet to second the motion because the gentleman has not yielded the 
 floor and we cannot take it away from him by a previous question. 
 
 THE PRESIDENT: By the indulgence of the chair the gentle- 
 man has been permitted to speak, although he didn't speak to the mo- 
 tion he did make as far as that is concerned, but it is not the intention 
 of the chair to stifle any discussion. 
 
 MR. DANIELS: I would move to amend that resolution by 
 changing that paragraph or sentence to read "the scientific study and 
 development of mineral resources of the several states of the union in a 
 manner anala^ous to that which has been done in behalf of agriculture." 
 
 MR. DINWIDDIE: I second that. 
 
 DR. PRATT: I would like to say a word against the amendment 
 and in regard to the original resolution. The amendment as it is made 
 brings in two entirely different questions; there is a conflict between 
 what the Bureau of Mines is supposed to do and the work the Bureau 
 of Mines already has done. The resolution as introduced relates simply 
 to schools of mining and in no way to the development of the mineral 
 resources of any state. It states in that resolution that they shall be 
 established similarly to agriculture colleges providing the states want 
 them; they don't have to take them; they don't take them unless a 
 state does a certain thing the same as they do with agricultural or 
 mechanical colleges. To adopt the amendment you have got to go into 
 a long explanation of how that money is to be expended and would 
 bring in an entirely different kind of resolution in connection with the 
 establishment of schools of mining; I see no reason why we shouldn't 
 adopt the resolution as presented by the committee and let it relate 
 simply to the school of mines established as the states want them. 
 
 Upon a vote being taken the amendment was lost. 
 
 Upon a vote being taken on the adoption of the resolution, the 
 resolution was adopted. 
 
 The next resolution, prepared by the committee as a substitute for 
 Resolution No. 5, was then read by the secretary of the committee, as 
 follows: 
 
92 OFFICIAL PROCEEDINGS 
 
 Resolved, That the American Mining Congress is in hearty 
 sympathy and accord with the efforts being made for the construc- 
 tion and improvement of all inland waterway projects. 
 
 MR. B. W. GOODSELL, Illinois: I am the only man here that 
 is a member of the Deep Waterways Association, and I want to ex- 
 plain to those who belong to the great central west known as the Mis- 
 sissippi Valley that I did offer a resolution here that read to this effect 
 that we ask the co-operation and consent or assent or help or sympathy, 
 or some word that would apply to that, of this Congress to what the 
 people of the middle west are doing towards a deep waterway. It was 
 changed by one of the members to simply cut put and undo the work 
 that I had hoped this great convention would aid in. 
 
 THE PRESIDENT: The question is on the adoption of the 
 report of the committee on resolutions as to the last resolution read. 
 
 Upon the motion being put the resolution was adopted. 
 
 The secretary then read the next resolution, prepared by the com- 
 mittee as a substitute for Resolutions Nos. 2, 6 and 8, as follows: 
 
 Resolved, That we are in favor of so modifying the terms of 
 the Sherman anti-trust law as will permit reasonable trade agree- 
 ments between competitors in the mining business, whenever such 
 agreements will not operate to create monopolies, or result in undue 
 burdens to the public at large, and we recommend to Congress the 
 enactment of such laws as will effect this purpose. 
 
 Resolved Further, That a copy of this resolution be sent to 
 Senator Clapp, Chairman of the Senate Interstate Commerce Com- 
 mittee. 
 
 MR. JOSEPH 1 : I move the adoption of the resolution. 
 Motion seconded and carried. 
 
 The secretary then read the next resolution, prepared by the com- 
 mittee as a substitute for Resolution No. 9, as follows: 
 
 Whereas, The brightest and ablest minds of this country are 
 being exercised to prevent the gross unnecessary waste of our nat- 
 ural resources and to protect life and limb; and 
 
 Whereas, The present wasteful and dangerous method of min- 
 ing coal should receive most careful consideration; and 
 
 Whereas, Much relief can be secured in protecting the lives 
 of miners and in the conservation of coal by the more general use 
 of picks and the prohibition of excessive use of powder; 
 
 Therefore, Be It Resolved, That we recommend that the prac- 
 tice of shooting-off-the-solid be discouraged. 
 
 MR. DE LAVERGNE: I move the adoption of the resolution. 
 
 MR. S. A. TAYLOR, Pennsylvania: I am heartily in sympathy 
 with this resolution, but there are some sections of the country that will 
 oppose this very strongly. You take the sections of the country that 
 are using their coal for the manufacture of coke. Their idea is to have 
 that coal made small not for domestic use, but so that they will not 
 have to crush it before they put it in their furnaces. I apprehend that 
 the Mining Congress will come in for considerable criticism at the hands 
 of those people, and while this resolution I believe is theoretically cor- 
 rect, it will save considerable danger in the mines, but whether or not 
 it is too sweeping is the question that arises in my mind. In other 
 words, this same resolution has practically been brought about by the 
 coal operators, and whether the intent of that resolution as presented 
 was to make it an entering wedge for some purpose of that kind, I do 
 not know. I do realize, however, that it will have a great deal of opposi- 
 tion in some sections of the country. 
 
 Upon the motion being put it was declared carried. 
 
 The secretary of the committee then read the next resolution, pre- 
 pared by the committee as a substitute for Resolutions Nos. 6 and 6a, as 
 follows: 
 
AMERICAN MINING CONGRESS 93 
 
 Resolved, That we are in favor of a fair and just compensation 
 to working men for injuries received while engaged about their 
 duties, one that will be just and equitable to both employer and 
 employe, and we recommend- to the Congress of the United States 
 and to the state legislatures the enactment of such legislation as 
 will secure this result. 
 
 Resolved, That the thanks of this Congress be extended to 
 Messrs. John H. Jones, David Ross, W. R. Woodford and J. W. 
 Dawson, the committee heretofore appointed to investigate this 
 subject, for their untiring effort in aid of the solution of this 
 problem. 
 
 Resolved, Further, That a copy of this resolution be forwarded 
 to Senator Sutherland, chairman of the Congressional committee 
 having this matter now under investigation. 
 
 MR. JOSEPH: I move the adoption of the report. 
 
 MR. DANIELS: That is a resolution I guess none of us will be 
 likely to object to, but it seems to me this great American Mining Con- 
 gress ought to be able here and now to say something decisive as to 
 what is fair and reasonable, or it ought to provide for a committee that 
 will take up the question and advise it. I believe we are all in favor of 
 any legislation on any subject that is fair and reasonable and just to 
 both sides. The difficulty is that we sometimes find a very great ob- 
 stacle and a very great difference of opinion in arriving at what is fair 
 and reasonable. I move as an amendment to the report of the com- 
 mittee that a committee of three be appointed to take up and investi- 
 gate the matter as to what is fair and reasonable in the opinion of the 
 American Mining Congress, and report at the next session. 
 
 MR. S. A. TAYLOR: The statement has been made and it is a 
 fact that the states in the Union that have attempted to adopt a work- 
 man's compensation clause have done so, and they have in the main 
 been declared unconstitutional. Without stating what state it is, I will 
 say one state in the Union has adopted a workman's compensation law, 
 which has been declared unconstitutional, and that will now be taken 
 to the Supreme Court of the United States. By the time that decision 
 is made the miners' committee and Congress will know how to act. 
 
 THE PRESIDENT: For Mr. Daniels' information I want to state 
 this matter has been in the hands of a committee for a year, and the 
 committee on resolutions has acted upon the report made by the special 
 committee which has been in session and working on that for the past 
 year. 
 
 MR. DANIELS: It doesn't seem to me, Mr. President, that that 
 fully complies with the objection or satisfies the objection that I made. 
 It is true, as the gentleman has said, the state of New York enacted a 
 workman's compensation law which the state supreme court has de- 
 clared unconstitutional. I don't know of any other state where the 
 compensation act has been enacted that it has been decided to be 
 constitutional. 
 
 A DELEGATE: It has been declared constitutional in Washing- 
 ton, and I understand from this delegate that Michigan has also de- 
 clared the act constitutional. 
 
 DR. DANIELS: Now that does not quite apply to the point I 
 tried to make, because we have a great many laws that have been de- 
 clared constitutional by our courts that some of us, and sometimes a 
 very large class of us, declare that even if constitutional they are very 
 unfair and very unjust. We have had a national committee or commis- 
 sion on this same subject, and they have agreed upon a report, it has 
 been so stated in the newspapers, that to my mind will be such a burden 
 as will in the case of any material accident in the plants of the smaller 
 operators, put them out of business absolutely. The national commis- 
 sion proposes to recommend that the compensation provided for shall 
 be paid by the employer only, and in case of serious accident what 
 would happen to some of the little fellows who haven't got a million 
 
94 OFFICIAL PROCEEDINGS 
 
 dollars back of them to carry them through anything of that kind. I 
 never have been able to give the subject very much investigation, but 
 it seems to me that the only fair and equitable compensation law is one 
 which shall provide that the general risk shall be shared by all of those 
 engaged or interested in the industry where the compensation may be 
 required. It seems to me that if a law is enacted that provides that 
 every employer must pay all possible damages that may arise from an 
 accident on his property, it places us absolutely in the hands of the in- 
 surance companies. In my opinion, it is the only protection, and I be- 
 lieve if we are obliged to insure against it as individual operators or 
 as individual corporations, that the expense of such insurance will make 
 the difference between operation and idleness. 
 
 MR. JOSEPH: Question on the motion to adopt. 
 
 MR. DANIELS: I believe any man in this house is likely to be 
 as good as another when he expresses an opposition or wants to amend. 
 It only takes a vote whether he shall be considered. 
 
 MR. DINWIDDIE: I second the amendment. 
 
 MR. DANIELS: What would be legislation in the opinion of this 
 Mining Congress, to both employer and employe? I believe we should 
 have some information on that point, and I believe we should get our 
 position so that we can say this legislation is right and just, in our 
 opinion, and that other is not. 
 
 THE PRESIDENT: The question is on the amendment. All in 
 favor of the amendment offered by Mr. Daniels will say aye; contrary, 
 no. Motion lost. 
 
 MR. JOSEPH: I move the original motion. 
 
 THE PRESIDENT: The question is on the adoption of the report 
 of the committee. Motion carried. 
 
 MR. DINWIDDIE: It seems to me this Congress is willing to 
 vote against a man simply because he opposes the suggestion of the 
 committee. 
 
 Mr. Conner then read the next resolution prepared by the com- 
 mittee on resolutions, as follows: 
 
 Resolved, That in the opinion of the American Mining Con- 
 gress, the mining industry has been greatly injured by designing 
 and unscrupulous mine promoters; that the stand heretofore taken 
 by the Congress against this illegitimate business has done much to 
 prohibit it; that the Congress endorses the action of the Postmaster 
 General in his efforts to prevent the use of the United States mails 
 for fraudulent purposes and that it urges the enactment of legisla- 
 tion in all states to prevent such frauds and to increase confidence 
 in mining investments. 
 
 Resolved, That a copy of this resolution be forwarded to the 
 Postmaster General. 
 
 MR. JOSEPH: I move the adoption of the report. 
 
 Motion seconded. 
 
 MR. DANIELS: I would like to ask if the two resolutions I intro- 
 duced this morning because they were not written will receive any con- 
 sideration, or be reported on? 
 
 MR. DE LAVERGNE: Mr. Daniels, your resolutions were type- 
 written, read and considered. 
 
 MR. DANIELS: I assume then they are pigeonholed. 
 
 MR. DE LAVERGNE: No, sir. They were considered and em- 
 bodied in the resolution that has previously been adopted. I think you 
 will see that they are. 
 
 Motion carried. 
 
 The secretary of the committee then read the next resolution, pre- 
 pared by the committee on resolutions, as follows: 
 
 Whereas, The effective and meritorius work of the American 
 Mining Congress has escaped the attention of a vast number of 
 interests that should be benefited thereby; and 
 
AMERICAN MINING CONGRESS 95 
 
 Whereas, The public at large are directly or indirectly affected 
 by the carrying out of the undertakings of, this Congress; 
 
 Be It Therefore Resolved, That we recommend that a pub- 
 licity committee should be created in the following manner, to-wit: 
 One member from each state represented be appointed by the 
 president upon recommendation of the delegates from state in which 
 he lives, and these members so selected shall each select four other 
 members from among the different mining industries in his state. 
 The member in each state appointed by the president, together with 
 the four members he may appoint, shall constitute a state commit- 
 tee through whom all matters of publicity shall be conducted. The 
 secretary of the American Mining Congress shall furnish the state 
 committee with all necessary stationery, stamps and stenographic 
 expenses as the committee may require. 
 
 MR. DANIELS: Mr. Chairman, I move the adoption of that reso- 
 lution, and for fear that I will be too late I want to give notice that I 
 want to move an amendment. 
 
 MR. JOSEPH': I second the motion. 
 
 MR. DINWIDDIE: I understand this question received consid- 
 erable attention at the hands of the committee, and I want to con- 
 gratulate the committee on their success in preventing publicity in this 
 city. I want to condemn this city somewhat for not giving some atten- 
 tion to this Congress", a Congress that is worth as much to the country 
 as this is certainly is deserving of at least as much mention as is the 
 man who is to address it. I say that is not the proper treatment of a 
 Congress of this importance. 
 
 MR. JOSEPH: Mr. Chairman, for the benefit of the gentleman 
 and the other members of the Congress I will say that your committee 
 has dealt with that proposition in a sort of negative way, and a resolu- 
 tion will be read here in a few moments, and if the gentleman desires to 
 amend it some of us may second the amendment. 
 
 MR. JOHN MAYER, Missouri: I think that resolution ought to 
 be adopted as it is. I don't think we ought to find any fault with the 
 resolutions committee or the publicity committee. 
 
 MR. DANIELS: I would like to state my amendment. Possibly 
 it will apply more appropriately to the resolution that is to come later. 
 I wish to move to amend this resolution as follows: "That the Amer- 
 ican Mining Congress send its' thanks to the press of Chicago for the 
 extremely thorough manner in which they have reported the proceed- 
 ings of the Congress for the enlightenment of the reading public." 
 
 MR. JOSEPH: I. rise to a point of order. That has nothing to 
 do with the subject matter of this resolution at all. 
 
 THE PRESIDENT: I think the point of order is well taken. 
 The motion is on the adoption of the report of the committee. 
 
 Motion carried. 
 
 The secretary of the committee then read the next resolution pre- 
 . pared by the committee on resolutions, as follows: 
 
 We have viewed with extreme gratification and gratitude the 
 hospitality and good fellowship extended by the citizens of Chicago 
 to our members and delegates and their families, and we herewith 
 tender thanks to the State of Illinois, its Governor, the City of 
 Chicago, its Mayor and others who have so royally welcomed us 
 and made our sojourn here so pleasant as well as profitable. 
 
 We especially appreciate the hospitality and good fellowship 
 of the local executive committee and narticularly of Messrs. C. M. 
 Moderwell, E. T. Bent and George Holmes Cushing, who have by 
 their untiring efforts added much to the pleasure and profit of our 
 visit. 
 
 We also wish to express our appreciation of the many cour- 
 tesies extended the members and delegates to the Congress by the 
 management of the Hotel La Salle and the Auditorium Hotel. 
 
^ OFFICIAL PROCEEDINGS 
 
 We especially commend the efforts of the technical and trade 
 journals, International News service, the United Press and the 
 Associated Press, the Chicago Daily Post, the Chicago Daily News 
 and the Chicago Journal in according publicity to the proceedings 
 of this Congress. 
 
 MR. BARTLETT: I move the adoption of the resolution. 
 
 DR. PRATT: I move that an amendment be made to this resolu- 
 tion to the effect that a vote of thanks or recognition be also given to 
 the management of the Hotel La Salle and the Auditorium Hotel for 
 many courtesies extended in connection with the Congress. 
 
 THE PRESIDENT: The secretary will make that correction in 
 the resolution. 
 
 MR. GOODSELL: Just one word in explanation. Being a resi- 
 dent of Chicago and being a reader of all the newspapers, I want to 
 state one thing that may break a cloud that seems to hang over the 
 papers. As a delegate to the great deep waterways convention held 
 here two weeks ago, the Tribune and the other papers gave the formal 
 notices in a very slight way until the convention broke up, at which 
 time it gave, I remember now the Tribune gave four or five columns, a 
 general writeup, that could not have been done by piecemeal. 
 
 THE PRESIDENT: I think our technical press, for instance, 
 the Black Diamond, Fuel, and the Mining World deserve a great deal 
 of credit for the courtesies they have shown us. I- believe special men- 
 tion should be made of those papers. 
 
 MR. BARTLETT: The technical press ought to include Mines 
 Minerals and all of those papers, for they have spent lots of money and 
 they have been working night and day to get their papers out by Satur- 
 day morning. If we are going to say anything about papers let us not 
 omit those technical trade papers. 
 
 THE PRESIDENT: With the unanimous consent of those pres- 
 ent the Secretary will be requested to make the proper amendment 
 recognizing the technical papers and the hotels. 
 
 MR. S. A. TAYLOR: I feel while the committee has mentioned 
 the executive committee, that there are two or three men who ought 
 to receive special mention in this connection. Mr. Bent and Mr. Moder- 
 well and Mr. Gushing have worked untiringly in this matter, and I 
 know that it is only an oversight in the mention of those names. 
 
 Motion unanimously carried. 
 
 The secretary of the committee then read the next resolution pre- 
 pared by the committee on resolutions, as follows: 
 
 Resolved, That this Congress disapproves of the efforts of 
 interested parties to have established national parks on the public 
 domain wherein are known to exist deposits of oil, coal and other 
 mineral wealth. 
 
 MR. JOSEPH: I move the adoption of the report. 
 
 Motion seconded and carried. 
 
 The secretary of the committee then read the next resolution, pre- 
 pared by the committee as a substitute for Resolutions Nos. 3 and 13, as 
 follows: 
 
 Resolved, That the American Mining Congress urges upon 
 the Congress of the United States the importance of enacting, at 
 its approaching session, such legislation as will bring about the 
 opening up and operation of coal mines in Alaska, on such basis as 
 may be best for both the present and permanent welfare of the 
 Alaskan people. 
 
 Resolved, That the president of the American Mining Con- 
 gress, appoints a committee of five to co-operate with the Honorable 
 Secretary of the Interior in securing the enactment by the Con- 
 gress of the United States, of such legislation as will best and most 
 promptly accomplish the above purpose. 
 
AMERICAN MINING CONGRESS 97 
 
 MR. G. McM. ROSS, California: As a western metal miner and as 
 a member of the committee on resolutions, I wish to express my regret 
 that the committee had not heard the address of the Secretary of the 
 Interior before they adopted this resolution. Had we done so, speaking 
 for myself, I certainly would have endeavored to have had the great 
 benefits promised from government control extended to a larger and 
 more populous territory than Alaska. I personally would have en- 
 deavored to have had an experiment tried in Illinois of governmental 
 control, such as was suggested by the Secretary of the Interior. 
 Motion carried. 
 
 The secretary of the committee then read the next resolution pre- 
 pared by the committee on resolutions, as follows: 
 
 Whereas, Since our meeting a year ago a number of mem- 
 bers conspicuously identified with the work of this Congress have 
 departed this life, among whom was prominent George W. E. Dor- 
 sey, of Utah, who at the time of his death was a director in this 
 organization a man possessed of a kind and lovable character and 
 to whose personal interest and effort is due the success of much of 
 the work of this body: 
 
 Therefore, Be It Resolved, That to the family and friends and 
 loved ones of those who have passed away, the earnest sympathy 
 of this Congress is extended, and 
 
 Resolved, Further, That a copy of this resolution be for- 
 warded to Mrs. Dorsey. 
 
 MR. BARTLETT: I move the adoption of the resolution. 
 Motion carried. 
 
 MR. CONNER: Now, Mr. Chairman, I have read all the resolu- 
 tions that were acted upon or prepared by the resolutions committee. I 
 desire to now present the resolution passed by the delegates from Penn- 
 sylvania. 
 
 The secretary then read the resolution, as follows: 
 
 Whereas, The American Mining Congress was largely in- 
 strumental in inducing the government of the United States to 
 create a Bureau of Mines; 
 
 Resolved, That the Mining Congress takes this occasion to 
 express its thanks to the President and Congress of the United 
 States for the creation of said Bureau of Mines and its high com- 
 mendation of the work so far accomplished under the able direction 
 of Dr. J. A. Holmes; and 
 
 Resolved, Further, That the Secretary is instructed to trans- 
 mit to the Hon. William Howard Taft, President of the United 
 States, the Hon. James T. Sherman, President of the Senate, and 
 the Hon. Champ Clark, Speaker of the House of Representatives, 
 and also to Dr. Holmes, copies of this resolution. 
 MR. ROSS: I move the adoption of the resolution. 
 Motion unanimously carried. 
 
 MR. ROSS: I would like to move, if it is in order, that a vote of 
 thanks be tendered the presiding officers and our secretary and such 
 other officers of the convention who so ably conducted its affairs. 
 
 MR. BURROUGHS: I second the motion. 
 
 MR. JOSEPH: I will put the motion. The motion is that a vote 
 of thanks be extended to all the gentlemen who so ably conducted the 
 affairs of this Congress and brought it to such a successful conclusion. 
 
 Motion unanimously carried. 
 
 MR. E. C. WETHERLY, Colorado: I dropped into camp rather 
 late this morning. The failure of the papers to give me any information 
 forces me to ask whether the committee on smelting rates and ore treat- 
 ment and freight rates has had anything to report that could be em- 
 bodied in a resolution. Four years ago a gentleman was very active in 
 taking up their question of smelting rates and ore treatment, and since 
 that time we have heard nothing at all. 
 
98 OFFICIAL PROCEEDINGS 
 
 MR. JOSEPH: I suppose the gentleman's remarks were directed 
 at me. I want to say the committee of two or three years ago, if the 
 gentleman will turn back to the report, consisted of Mr. De LaVergne, 
 myself, Judge Colburn and Mr. Riter. The committee met in Denver 
 and formulated a public protest which was brought before this Con- 
 gress, an open protest against the exorbitant smelting rates that were 
 then in existence, and we recommended at that time that the method by 
 which that problem could be met would be by the establishment of inde- 
 pendent smelters, and we were fortunate enough in our state to have a 
 man public-spirited enough, a member of this Congress, Jesse Knight, 
 who put in some $400,000 into an independent smelter in Utah. While 
 it has proved a financial failure as far as Mr. Knight was concerned, it 
 had this effect: It brought down smelting rates from the large corpora- 
 tions, and as far as the report of the committee on ore returns was con- 
 cerned, I want to say that I was appointed on that committee in the 
 convention and Mr. MacVichie, of Salt Lake, and Mr. Becker, of Los 
 Angeles, and we failed to hold a meeting because we could not make 
 connections with one another. We made* our report but I have not seen 
 it. I suppose it was lost in the shuffle. As far as Mr. MacVichie and 
 myself were concerned, we submitted our report to Mr. Becker, and it 
 may be that Mr. Becker failed to bring it in. 
 
 MR. S. A. TAYLOR: We have voted on the resolutions, and I 
 think before adjourning we ought to pass a vote of thanks to the men 
 who spent two days in getting them up. Therefore, I move a vote of 
 thanks be given the resolutions committee. 
 Motion unanimously carried. 
 
 MR. WETHERLY: Before you proceed with the motion to ad- 
 journ, I want to say in connection with my question, that when Mr. 
 Joseph brought in that resolution four years ago we had no such thing 
 as a Bureau of Mines. We have had a scholarly, professorial and legal 
 address by the Secretary of the Interior this evening, who expressly 
 emphasized the function of the Government. Now we have a Bureau 
 of Mines which was not in existence when Mr. Joseph worked so hard 
 and made a. very eloquent speech, as I remember reading it, I was not 
 a member of the Congress, and since we have had the Bureau of Mines 
 you are willing to go to that extent that we can ask for the function of 
 government to be employed in our behalf, why should not a committee 
 be appointed to ask the government under these conditions to help us 
 in this matter? 
 
 THE PRESIDENT: I really think from the work done by the 
 committee it was demonstrated that those questions are really local. 
 They are state matters. It is a matter of competition and a matter of 
 effort amongst home members. As Mr. Joseph said, in our own state, 
 it has been a matter of competition, and I think we have done about 
 as well in my state as any other state. As Mr. Joseph said, Mr. Knight, 
 through his efforts established an independent smelter and brought 
 down the rates, which the other smelters had been charging, but as it 
 proved a failure he had to close down his plant, and since that time we 
 have been forced again to go to the large concerns. 
 
 MR. WETHERLY: Can't we ask a little assistance to break up 
 monopolies? The first two or three columns of the Tribune todaj were 
 occupied with what they were going to do with the steel trust. 
 
 i PRESIDENT: In addition, I might say that our local com- 
 mittee took up the matter with the railroads, and after very hard work 
 tor months and months we finally succeeded in getting quite a reduction 
 the railroad rates. So you see we have worked at home. 
 
 Whereupon an adjournment was taken until 10 o'clock a. m. Octo- 
 Der Zo. 
 
AMERICAN MINING CONGRESS 99 
 
 SATURDAY, OCT. 28, 1911. 
 Morning Session Orchestra Hall. 
 
 The meeting was called to order by President John Dern. 
 
 THE PRESIDENT: Members and Delegates of the American 
 Mining Congress, Ladies and Gentlemen: It is a very gratifying recog- 
 nition of the American Mining Congress, that the President of the 
 United States has favored us with his presence. In him the mining 
 industry of this country recognizes a true friend of that great industry. 
 (Applause.) The American Mining Congress has contended for years 
 for a department of mines so that we could have a voice in the govern- 
 ment and administration of that great industry. We have striven for 
 years and have memorialized Congress and demanded Congress to 
 create a department. At the time of the President's visit two years ago 
 to the far west I had the pleasure of discussing the matter with him, and 
 he advised me it would be wise to start the same as other departments 
 have, particularly the department of agriculture, which now is recog- 
 nized as one of the main departments in the Federal Government, sug- 
 gesting that instead of contending at that time for a department to ask 
 for a bureau out of which eventually a department would grow. I com- 
 municated this view expressed to me by the President to the American 
 Mining Congress in session shortly thereafter at Goldfield, and upon 
 that suggestion our committee proceeded. Through the assistance of 
 our western representatives in Congress and the Senate, and the co- 
 operation of the coal men of the east and the iron men of the north, and 
 the great assistance of the President himself, the Bureau of Mines was 
 established. (Applause.) 
 
 Great results have been accomplished particularly in the coal 
 fields, the first and paramount work being the saving of human life. 
 Now other fields must be opened, and while the President is here and 
 as this may be the last time as retiring president of the Mining Con- 
 gress that I may have the pleasure of speaking to you I would ask 
 that he use his good offices as President of the United States to inter- 
 cede for the precious metal miners of the west (applause) and recom- 
 mend that Congress make an appropriation which will start the work 
 of research in that particular branch of the mining industry which is so 
 much in need. Ladies and gentlemen, I have the pleasure and the great 
 privilege to introduce to you the President of the United States, the 
 Honorable William Howard Taft. (Applause.) 
 
 President Taft's address will be found at page 394 of this report. 
 
 PRESIDENT DERN: This finishes our program and the Four- 
 teenth Annual Session of the American Mining Congress now stands 
 adjourned sine die. 
 
MEETING OF MEMBERS 
 
 WEDNESDAY, OCTOBER 25, 1911. 
 7:30 P. M. 
 
 Meeting was called to order by the President. The Secretary 
 reported that 283 members were present in person and by proxy, being 
 a quorum of the membership. 
 
 THE PRESIDENT: We will have the Secretary read the min- 
 utes of the meetings of the executive committee. 
 
 Secretary Callbreath then read the minutes of the several meetings. 
 
 THE PRESIDENT: If there are no objections the minutes will 
 stand approved as read, and the action of the executive committee in 
 regard to the organization is ratified and approved. 
 
 The Secretary will now read the financial statement, as follows: 
 
 American Mining Congress. 
 
 Financial statement covering period September 1, 1910, to September 
 
 30, 1911. 
 
 RECEIPTS. 
 
 Cash on hand September 1, 1910 $1,351.95 
 
 Received from life membership fees $ 100.00 
 
 Received from annual membership fees 1,745.00 
 
 Received from annual membership dues 3,770.00 
 
 Los Angeles Convention Fund. 3,870.00 
 
 Chicago Convention Fund 500.00 
 
 Miscellaneous 211.95 
 
 10,197.65 
 
 $11,549.60 
 
 DISBURSEMENTS. 
 Washington legislative expense and Secretary's 
 
 traveling expense $1,852.48 
 
 Salaries, Secretary, Assistant Secretary and Clerks, 
 
 Denver office 4,929.25 
 
 Salaries, Organizers and traveling expenses 1,375.90 
 
 Printing ' 1,919.50 
 
 Postage 351.50 
 
 Office supplies 121.63 
 
 Rent 350.00 
 
 Exchange 23.75 
 
 Miscellaneous 272.11 
 
 $11,196.12 
 
 Balance cash on hand October 1, 1911 $ 353.48 
 
 Denver, Colo., Oct. 3, 1911. 
 
 I hereby certify that the foregoing is a correct statement of the 
 receipts and disbursements of the American Mining Congress, for the 
 period from September 1, 1910 to September 30, 1911. 
 
 (Signed) J. R CALLBREATH, Jr., 
 
 Secretary. 
 
 Denver, Colo., Oct. 5, 1911. 
 
 We, the undersigned members of the Auditing Committee of the 
 American Mining Congress, having examined the vouchers and ac- 
 counts of the Secretary, covering transactions for the period from 
 
101 
 
 AMERICAN MINING CONGRESS 
 
 September 1, 1910, to September 30, 1911, &e* > etr berttfy J -fht"toe' And' 
 the same to be correct, and that the statement hereto attached is a cor- 
 rect statement of the financial transactions of the American Mining 
 Congress during said period. 
 
 (Signed) E. G. REINERT, 
 
 D. W. BRUNTON, 
 Members Auditing Committee. 
 
 MR. HORACE J. STEVENS, Michigan: I move the report be 
 received and placed on file. 
 
 THE PRESIDENT: It has been moved and seconded that the re- 
 port of the Secretary of the financial condition of the Congress be re- 
 ceived and placed on file, and made a part of the record. 
 
 SECRETARY CALLBREATH: I would-be very glad if this or- 
 ganization would make a further examination of these accounts. 
 
 THE PRESIDENT: I was going simply to say as President of 
 the Congress and of course not living in the same city as Mr. Call- 
 breath does I have been compelled to sign checks in blank, but I have 
 checked against it always, as he has stated, at the first of every month. 
 Mr. Callbreath renders a statement the first of every month accompanied 
 by duplicate vouchers covering all expenditures during the month as 
 well as a statement as to the receipts, as you have seen from his own 
 report, which is certified by the auditing committee. I do not think 
 it is necessary that any further investigation or any other recommenda- 
 tion should be made. The auditing committee are men of ability, con- 
 fidence and reliability, and they having approved it I think is ample 
 evidence and all that is required in the premises. 
 
 Motion carried. 
 
 THE PRESIDENT: It has been customary at our other meet- 
 ings that the members elect a nominating committee to report later 
 on as to the candidates for directors. 
 
 MR. E. L. DE LESTRY, Minnesota: It is the custom of the 
 association to have a nominating committee generally widely scattered 
 in territory and interest to avoid any possible accusation of a frame-up 
 and with the view of selecting those men for the guidance of our affairs 
 best qualified to take charge of each interest. I would like to be per- 
 mitted to present a list of five gentlemen for your consideration not 
 with the view it shall be final but with the idea of representing the 
 various sections of the country and interests of all the people. I take 
 pleasure in presenting the names of Dr. Haworth, Kansas; Mr. E. T. 
 Bent, of Illinois; Judge Thomas C. Burke, Oregon; Dr. Talmage, Utah, 
 and Mr. De LaVergne, of Colorado. I submit this list to the member- 
 ship as a suggestion and not that it shall be final. I believe upon close 
 inspection of the list it will be found they are the best gentlemen we 
 can have at this time. Give this committee time until Friday morning 
 to. canvass the situation and present to the members a list of officers 
 and directors that they would like to present for election. This matter 
 should receive serious consideration and we want for the management 
 of our affairs the coming year the best material that we can possibly 
 select. We have today examples which show the magnitude of our 
 work spreading all over the country. I have never realized so much 
 that this Middle West is such a vital factor. Gentlemen, I hope you 
 can see your way clear to adopt this list. The members have always 
 been identified with this work, and we have canvassed this matter dur- 
 ing the afternoon. It is not a personal matter with me. I know but 
 two men on this list personally, and I feel sure that our interests will 
 be well taken care of if entrusted to these five gentlemen to bring in a 
 list of candidats to be voted on Friday morning. 
 
 THE PRESIDENT: Do you make that as a motion? 
 
 MR. DE LESTRY: I do, Mr. Chairman. 
 
 THE PRESIDENT: It has been moved that Dr. Haworth, of 
 Kansas; Mr. Bent, of Illinois; Judge Burke, of Oregon; Dr. Talmage, 
 of Utah, and Mr. De LaVergne, of Colorado, be named as the nomi- 
 
102 
 
 OFFICIAL PROCEEDINGS 
 
 nathlV 1 committee to report just prior to our regular session Friday 
 morning. Are you ready for the question? 
 Motion seconded and carried. 
 
 DR. E. R. BUCKLEY, Illinois: I want to ask the President what 
 has been done with the resolution which was made by Mr. Dorsey, who 
 is now deceased, at the Los Angeles meeting. I don't think it would be 
 out of place to read that resolution. I would like to have a report of 
 what has been done in that connection. (Reading.) 
 
 MR. DORSEY: At this time I would like to offer this resolution, 
 which I will read: 
 
 Whereas, Certain promises and pledges, made by the delega- 
 tion from the State of Colorado at the session of the Congress held 
 at Portland, Oregon, .in 1904, at the time the Congress was called 
 to vote upon the location of permanent headquarters, have not been 
 kept and fulfilled, and the assistance promised has not been given, 
 and as the promises and pledges, so made at that time induced the 
 members of the Congress held at Portland to vote to locate head- 
 quarters in the City of Denver, and, further, much dissatisfaction 
 has been expressed at the failure to keep the agreements made; 
 
 Therefore, be it resolved, That the directors of this Congress 
 be, and they are hereby, authorized to take up at once this matter 
 with the people of Colorado, and in case satisfactory arrangements 
 cannot be made, then the directors are authorized to take such steps 
 as in their judgment seem advisable, to relocate the permanent 
 headquarters of this Congress in some other state. 
 
 DR. BUCKLEY: This resolution was introduced by a member 
 of the Congress, one who was a director for a long time and who is 
 now deceased. I think that the members of this Congress would be 
 very glad to have a repprt on anything that has been done on the part 
 of the board of directors in carrying out the instructions of the mem- 
 bers at that meeting. 
 
 SECRETARY CALLBREATH: Mr. Chairman, there is very 
 little to be said in reply. At your request I submitted the resolution 
 to the Chamber of Commerce, in Denver, and it was taken under con- 
 sideration, but there was never any action taken, so far as I have heard. 
 DR. BUCKLEY: Mr. President, when did you receive the report 
 to that effect? 
 
 THE PRESIDENT: I think I received the report to that effect 
 at the time we had the meeting in Salt Lake City. 
 
 DR. BUCKLEY: Since the meeting was held in Salt Lake City 
 has there been any action taken on the part of the executive commit- 
 tee with regard to the matter? 
 
 THE PRESIDENT: There has been none since. 
 DR. BUCKLEY: I would like to move, Mr. President, that this 
 meeting of members repeat the instructions to the former board of 
 directors with the request that some action be taken in the matter 
 before the next meeting, a year hence. 
 
 DR. ERASMUS HAWORTH, Kansas: I second the motion. 
 THE PRESIDENT: Gentlemen, you have heard the motion made 
 by Dr. Buckley. Are you ready for the question? 
 
 A MEMBER: I would like to ask whether the motion in the mat- 
 ter gives the directors power. 
 
 DR. BUCKLEY: It covers the ground thoroughly. It gives the 
 board complete power to act in the matter, and Mr. Dorsey was very 
 careful in wording that resolution, so that it would give them complete 
 power to act in the premises. I made the motion that the same instruc- 
 tions be given the board of directors as were given a year ago in the 
 motion of Mr. Dorsey. 
 
 THE PRESIDENT: That was covered in our report at the last 
 annual session, with reference to permanent headquarters. 
 
 M,R. W. N. SEARCY, Colorado: Of course, being from Colorado, 
 I am naturally interested in seeing the Denver Chamber of Commerce 
 
AMERICAN MINING CONGRESS 103 
 
 do its own city justice in this matter. The resolution explains itself. 
 The history of the whole transaction I suppose is set out in this resolu- 
 tion. I spoke to the chairman of the mining committee two days ago 
 about this matter. I do not oppose this motion, or. anything of that 
 kind, but it seems to me that if the Denver Chamber of Commerce, the 
 Commercial Club of Salt Lake City, and these other cities, should take 
 hold of this problem, fully appreciating the situation, and "it is some- 
 thing for this executive committee to see to. I think it is simply be- 
 cause of inattention. I would like to make the suggestion that before 
 anything is done a meeting should be held with the Executive Com- 
 mittee of the Denver Chamber of Commerce, to see what that body 
 will do. I think it is more inattention than anything else. 
 
 THE PRESIDENT: For the information of those of you who 
 are perhaps new members, and particularly from the eastern states, I 
 wish to state that years ago when the question of establishing a perma- 
 nent home for the Congress came up, Salt Lake City, through its repre- 
 sentation at the Congress, which was held at Portland in that year, 
 offered to the Congress a site situated in the heart of the city, a site 
 which was worth a great many thousands of dollars. In addition to 
 that they prepared and had the authority to state that a great many 
 thousands of dollars would be furnished by the citizens of Utah for 
 the building of a mining temple in Salt Lake City. It was the only 
 proposition which was considered or thought of prior to our meeting, 
 but through the efforts of our worthy Secretary here, and some assist- 
 ance of a prejudice which was worked up. springing the Mormon ques- 
 tion, against Utah, and I want to repeat that right now because that 
 was the only thing by which they defeated us, although it was presented 
 not by Mormons, but by gentiles, and we had the goods to deliver. But 
 the hot air of Colorado finally beat us by a small margin. It has been 
 continued from year to year and simply nothing was said, but we be- 
 lieved that finally Colorado would come through and do as they had 
 agreed, but when they had done nothing up to last year I took them 
 severely to task at the Los Angeles convention, and the resolution 
 offered by Senator Dorsey at that time was adopted almost unanimously. 
 We had no desire to protest against it, but it was simply to stir the 
 Colorado pride so that they would finally do the right thing. Up to 
 the present time, as you have seen from Dr. Buckley's remarks and the 
 report of the committee, they have done nothing. It is my candid belief 
 that unless Colorado comes this year we simply ought to vote to move 
 the permanent home away from that city. They have acted in bad 
 faith and they ought to know it, and the people at large, the people of 
 the whole United States ought to know it. Colorado is a great state 
 and it seldom goes back on its promises, and I for one am sorely disap- 
 pointed at the mining men and citizens of Colorado not making good 
 their pledges to the American Mining Congress. 
 
 DR. J. E. TALMAGE, Utah: I am heartily in accord with what the 
 President just stated, and his way of presenting the situation. A gentle- 
 man from Colorado has made the statement that this dereliction is due to 
 apathy or inattention, and suggests that this Congress should assume 
 the burden and responsibility of laboring with the Chamber of Com- 
 merce of Denver and try to convert them to some better course of 
 living. I be.g to submit that this Congress has nothing to do along that 
 line, that Denver and Colorado worked hard, and I don't care to analyze 
 their method of work, to secure the headquarters for that Congress at 
 the meeting held in Portland in 1906, and they made certain pledges, 
 pledges which I considered at that time to bind the people of Colorado, 
 and if one of those pledges has been kept I don't know of it. I trust 
 the motion will prevail without any express or implied instruction to 
 this Congress to do any missionary work among the people of Denver 
 or of Colorado on this matter. 
 
 MR. E. M. DE LAVERGNE, Colorado: I made an effort in the Leg- 
 islature of Colorado by introducing a bill for an appropriation of $100,000 
 as a starter for the erection of a mining building to be owned by this 
 
104 OFFICIAL PROCEEDINGS 
 
 Congress, and failed because two-thirds of the members of the Legis- 
 lature were representatives from the agricultural district and had no 
 interest whatever in aiding us in that matter. I finally succeeded in 
 getting a ten thousand dollar appropriation. The mining men did the 
 best they could to work up an interest there, but we had a great many 
 things to contend with and we lost out on that. 
 
 SECRETARY CALLBREATH: May I say a word not directly 
 upon this subject, but along the same line? Personally I have no feel- 
 ing as to where the home of the Mining Congress shall be. I have a 
 very deep interest in the accomplishments of the Mining Congress. The 
 work which we have to do, the results which we are to accomplish are 
 the things which should be kept first in mind, and the home of the 
 Congress should be at that place where its purposes can be best served. 
 I rise to suggest, and beg your indulgence at this time, to suggest an 
 idea which is in my own mind. I believe the American Mining Con- 
 gress as a National organization, representing the various sections of 
 the country, interesting itself more with the practical, you might say 
 the political side of mining than otherwise, must do the greater part 
 of its work at that point where national legislation is done. In other 
 words, our work must mostly be done at Washington, and that the 
 location of the permanent home of the Congress is a matter of less 
 importance. 
 
 If you will pardon me, I would like to explain the newer plan 
 of organization provided for by recent amendments to the by-laws 
 by which the mining men in each state may organize their own state 
 chapter; and that state chapters are authorized to organize local sec- 
 tions in the various communities, each local section having power to 
 do all the things connected with that community. If there is a matter 
 which the local section cannot do it can apply for help to the state 
 organization, and where the issue is interstate or National it shall be 
 passed up to the National organization for its action. I would be most 
 happy if we could some day carry out the dream of those of us who 
 have stood by the Mining Congress, that there should be somewhere a 
 temple of mining under which could be found more information con- 
 cerning mining throughout the country than at any other point with 
 a first class mining library, which does not exist today, equipped with 
 all the information upon mining matters and a comprehensive exhibit 
 of the ores from the various sections of commercial size, so that a man 
 from Australia or any other part of the world, who wanted to study 
 American mining conditions could go under that roof and find the 
 information he wanted about Oregon, or Arizona, or Utah, or any other 
 point where precious metal mining is carried on. He should here find 
 not only a comprehensive ore exhibit but geological maps of the dis- 
 trict, claim maps showing locations, and the ownership of the prop- 
 erty; in short all possible information which can possibly be assembled 
 for the student of mining. It would be a wonderful thing if that dream 
 could be carried out, and I believe some day it will be carried out. I 
 shall be as happy as any one can be if that dream shall locate itself 
 in the city of our President, Mr. Dern. On the other hand, the Mining 
 Congress is growing beyond the precious metal mining industry. We 
 found in our first effort to secure the creation of the Bureau of Mines, 
 that with only 31 congressmen west of the Missouri River, covering the 
 precious metal mining field, less than those from New York state alone, 
 that we did not have much influence at the National capitol. We had 
 to look for other support, and that support has come to us through 
 the coal mining men. It has been loyal, faithful, ardent, active support, 
 and it has done its work. 
 
 The American Mining Congress, as precious metal mining men's 
 organization, has been given the credit for securing the adoption of 
 the bill creating a Bureau of Mines. We are entitled to the credit 
 to the extent that we led the fight, but the votes which passed the 
 bill did not come from the precious metal states and they were 
 influenced more by coal producers than they were by precious 
 
AMERICAN MINING CONGRESS 105 
 
 t 
 
 metal miners. We have felt that in order to get that influence at 
 Washington, which is necessary to bring about reforms, we must have 
 all the mining fraternity connected with one organization, the coal 
 people helping us and we helping the coal people, and in that way it 
 will be possible to get the things which are essential to the best and 
 highest development of the respective industries. With that idea in 
 mind we are hoping that the .present session will see the beginning of 
 an alliance with us in large numbers of the coal operators, to the extent 
 that our members and theirs will all work together under one organiza- 
 tion, and thereby secure the best results for every particular branch 
 of the industry. While I believed at the time that the question of the 
 permanent headquarters was up that Denver was the logical and only 
 place for the permanent headquarters, I must confess that the develop- 
 ments since that time have convinced me that possibly I might have 
 been in error, and no matter how this question is settled I hope we 
 shall gain the strength and the active co-operation of the mining men 
 of all branches of the mining industry throughout this land, to the end 
 that the needs of the mining industry, the greater protection of the 
 lives of the miners, the greater conservation of mineral resources, the 
 better development of the mineral resources, and the best and highest 
 things that can come to the Mining Industry shall be brought to us 
 through the earnest efforts and support of all who are engaged in the 
 mining industry. I thank you, gentlemen, for your attention. 
 
 Motion carried. 
 
 MR. DE LESTRY: I understand this afternoon- there is an in- 
 struction to the resolutions committee to bring in a resolution in 
 memory of our deceased members, and I would like to move that the 
 Secretary compile a list of those who have gone from our midst, and 
 that a page be set aside in the proceedings on which shall be printed 
 the names, as is generally done in an organization of this kind. I was 
 not here this afternoon, and I do not know whether it is necessary to 
 make a motion in order to have a page set aside. 
 
 THE PRESIDENT: If there is no objection to that it is so 
 ordered. 
 
 MR. E. T. BENT, Illinois: I don't know whether this is the place 
 to follow a little farther the remark that our Secretary just made about 
 the broadening of this Congress and the bringing about of full co- 
 operation between the metal miners and the coal miners, but there has 
 been an effort made to get the coal miners of Illinois, for instance, to 
 come into the Mining Congress in numbers, and I am convinced that 
 the way to accomplish the objects that have been set forth here in 
 Illinois, at least, would be if your organic law was so changed that 
 coal operators' associations could be affiliated on some agreed basis 
 of financial support. If that were done I belive your present depressed 
 condition of things would be advanced more than if an effort is made 
 to obtain individual memberships. That would be a slow process, but 
 if a plan was carefully worked out to secure the affiliation of existing 
 organizations, that a good deal might be accomplished in a short time. 
 Ascertain what money is needed for the campaign before us, ascertain 
 what money should come from each state, and then have a dual plan 
 by which you still maintain your individual membership, and also take 
 in affiliated organizations of mining men on a proper financial basis. 
 
 THE PRESIDENT: I would like to ask the Secretary to state 
 as to whether under our present articles and by-laws such a plan as 
 has just been suggested is feasible. 
 
 MR. J. W. DAWSON, West Virginia: Following up the gentle- 
 man who has just spoken, the conditions which he described as applying 
 to Illinois, apply equally to West Virginia, and I think it would fit 
 our case very nicely. In talking to Mr. Neil Robinson a few days past, 
 of the advisability of his coming to join this Congres's I will say for 
 the information of those here, that Mr. Neil Robinson is Secretary of 
 the West Virginia Mining Association, and the moving spirit of it 
 and he made the same suggestion that the gentleman who has just 
 
106 OFFICIAL PROCEEDINGS 
 
 spoken, that some such plan might work out better than by individual 
 membership. 
 
 DR. HENRY M. PAYNE, West Virginia: Right along the same 
 line, at a meeting of the West Virginia Mining Association, and of the 
 Appalachian Engineering Association the proposition was then made that 
 those organizations combine with the American Mining Congress, and 
 at that time it was turned down by those organizations simply because 
 the American Mining Congress constitution at that time did not permit 
 it and I think, as Mr. Dawson has said, that if it is possible for us to 
 consolidate in that way there is no question that almost all these small 
 organizations in the East would be glad to affiliate themselves with 
 the American Mining Congress. As Mr. Callbreath is aware I spent 
 almost one entire summer in West Virginia with Dr. White, state 
 geologist, trying to effect an organization of that kind, and it was im- 
 possible simply because at that time the American Mining Congress 
 had not made provision for such consolidation. I believe if it can be 
 brought about, if the plan as suggested can be carried out I believe the 
 coal miners will be very glad to affiliate themselves with us. 
 
 SECRETARY CALLBREATH: I think it would be wise if a com- 
 mittee could be appointed to devise a plan which would meet that sit- 
 uation. 
 
 MR. CARL SCHOLZ, Illinois: I make such a motion. Without 
 being authorized to speak for the states of Kansas, Missouri, Oklahoma 
 and Arkansas, that very same condition Mr. Dawson referred to exists 
 in the states just mentioned, and I think it might be safe to include 
 Iowa as well, and I make the motion suggested by the Secretary. 
 
 DR. TALMAGE: I second the motion. I was about to 
 offer a motion to that effect, understanding from the remarks of the 
 Secretary that the present constitution and by-laws do not specifically 
 provide for such. I would like to add that in some other organizations 
 that plan has been adopted, and it has been found to work with great 
 success, notably the American Association of Musicians. Its member- 
 ship of course is individual, but it has a specific kind of membership 
 which is reserved for institutions and organizations, and from those 
 institutions and organizations its strength is mainly derived. 
 
 MR. BENT: Is that committee to report during this session or to 
 report to the directors, or will this committee on the constitution and 
 by-laws have power to formulate a plan and put it into effect? 
 
 MR. DE LESTRY: It seems to me that this committee should 
 report to the members for action. It means a change in our organic 
 law, and that cannot be effected by the council alone. I believe under 
 our constitution it would require a vote of two-thirds of the members 
 present, and the committee should report here. The same situation 
 that exists here existed in the iron countries where the Lake Superior 
 Institution was organized which has been in existence for ten or fifteen 
 years. I am heartily in favor of holding out a welcoming hand to get 
 all these interests together. We have a big fight. Let us fight it 
 shoulder to shoulder. This report should be made here and passed 
 upon by the members. Then the executive council can adopt such 
 regulations as may be necessary to carry out the report. 
 
 DR. TALMAGE: I am reminded that thirty days time is re- 
 quired for an amendment. That being the case I think this motion 
 should be amended to meet that requirement, or that it be understood 
 that the committee shall report within say sixty days to the board of 
 directors, and that it shall be the duty of the board of directors to 
 take action promptly. 
 
 MR. DE LESTRY: If the motion was so shaped to suspend the 
 rules, this committee could report forthwith to this session. 
 
 SECRETARY CALLBREATH: I doubt seriously whether we 
 can suspend the rules or do this in any other form than that permitted 
 by the by-laws which require .thirty days for an amendment. It is 
 true the members are represented by proxies appointed to do certain 
 
AMERICAN MINING CONGRESS 107 
 
 things, but these members have had no notice of this proposed change. 
 Therefore it seems to me only fair to the members that they have 
 notice of the proposed amendment. 
 
 THE PRESIDENT: It seems to me that the consensus of opinion 
 is that the very idea proposed in this motion should be carried through, 
 but it is my judgment that we would better follow strictly, according 
 to our by-laws and articles of incorporation. It entails a little work to 
 the Secretary and to your board of directors, but the question of thirty 
 days does not make any difference and the question of a few dollars 
 in postage and a little additional time for the Secretary should not be 
 considered. I believe it would be almost impossible for that committee, 
 if it is appointed or elected here today, to report tomorrow. I think 
 we would better give them time and submit the matter to the board 
 of directors, and the board of directors can call a special meeting and 
 have the proceedings according to our by-laws. I think that is a safer 
 and better way, and at the very utmost it won't take more than about 
 sixty days to accomplish what we want to do and do it in the proper 
 and the regular way. 
 
 DR. HAWORTH: I want to express my agreement with the 
 sentiment we have just heard by our President, and I want to state 
 the reasons. why I agree with him. It seems to me that this is a com- 
 paratively unusually important meeting at this Congress. Now we 
 have the subject up of our permanent home. We have the subject be- 
 fore us just now in the motion that is pending in a great- degree, if I 
 understand, remodeling the question of membership, which is a funda- 
 mental question to this organization. I understand that already we have 
 temporarily, so to speak, amended our methods of obtaining members, 
 and the probabilities are that some of pur rules and methods are so 
 cumbersome that they should be laid aside. I thoroughly believe that 
 is what ought to be done. I think a committee should be appointed 
 that is representative, composed of able men, and let them go into this 
 matter very deliberately, and at the same time very thoroughly, with 
 the thought in mind of probably getting ourselves on a broader founda- 
 tion that we have ever been before and on a better foundation. If that 
 is done it necessarily will take a very careful examination of our regu- 
 lations, and a careful examination of what the most sanguine of us hope 
 will be the outcome within the next few years. A committee would do 
 unusually good work if they could get this matter ready to report inside 
 of sixty or ninety days, and I hope that this motion may be altered 
 somewhat so that it will give them sufficient time to make a report to 
 the directors rather than to this meeting. 
 
 MR. SCHOLZ: As the maker of the motion I am glad to consent 
 and include all the suggestions here mentioned as they seem to be 
 very sensible and proper, and with the consent of my second I so alter 
 my motion. 
 
 THE PRESIDENT: The Secretary will read the motion as 
 amended. 
 
 SECRETARY CALLBREATH: The motion is that a committee 
 shall be appointed under instructions to prepare such an amendment to 
 the constitution and by-laws as will permit the association with the 
 American Mining Congress of mining organizations already in exist- 
 ence under some plan of support which shall be found to be satisfactory, 
 and that that committee be given as much time as they may require to 
 perfect their work. 
 
 DR. TALMAGE: Could you not say of mining and allied organ- 
 izations? We may want to provide for the admission of some commer- 
 cial organizations that have an interest in mining and are not strictly 
 mining organizations themselves. 
 
 THE PRESIDENT: That will be added to it. 
 
 Motion carried. 
 
108 OFFICIAL PROCEEDINGS 
 
 Whereupon an adjournment was taken until 9 o'clock a. m. Octo- 
 ber 27. 
 
 ADJOURNED MEETING OF MEMBERS, 
 
 OCTOBER 27, 1911. 
 
 9 O'clock A. M. 
 
 THE PRESIDENT: We will first listen to the report of the com- 
 mittee which was appointed for the purpose of revising the by-laws to 
 make such amendments as would provide for the affiliation of the coal 
 mining industry organizations or kindred organizations. 
 Secretary Callbreath then read the report as follows: 
 To the American Mining Congress: 
 
 Your committee appointed to draft an amendment to the By- 
 Laws, providing for the association of mining and kindred organi- 
 zations with the American Mining Congress, do respectfully recom- 
 mend that Section 1, of Article 3, be amended to read as follows: 
 
 "Any person actively associated with mining, who, after his 
 application has been approved by the Committee on Membership, 
 shall pay an initiation fee of fifteen dollars ($15.00), shall become 
 an active member of this Congress, and thereafter he shall pay in 
 advance an annual fee of ten dollars ($10.00), and during the term 
 for which said dues have been paid shall be entitled to all rights 
 and privileges usual to members. 
 
 "Any organization devoted to mining or kindred interests may 
 be associated with the American Mining Congress upon any plan 
 which may be agreed upon, and shall be allowed one vote for each 
 ten dollars annually contributed by such organization to the Ameri- 
 can Mining Congress, such vote or votes to be cast by such person 
 or persons as may be designated by such organization. 
 
 "No member shall be permitted to vote, nor to enjoy the 
 privileges of this organization until his dues have been paid for the 
 current year, and all votes shall be cast in person, except as may 
 otherwise be provided." 
 
 Your committee further recommends that the Secretary be in- 
 structed to call a special meeting of the members of the American 
 Mining Congress for the consideration of an. action upon such 
 amendment. 
 
 L W. DAWSON, 
 :. L. DE LESTRY, 
 
 D. MAC VICHIE, 
 
 E. T. BENT. 
 
 THE PRESIDENT: Gentlemen, what are you going to do with 
 the report_pf the committee? 
 
 MR. CARL SCHOLZ, Illinois: I move the adoption of the report. 
 
 DR. J. A. HOLMES, Washington, D. C: In seconding that motion 
 to adopt the report I would like to say just a word. I hold very strongly 
 to the opinion that we need another class of membership in the Ameri- 
 can Mining Congress, whether we call them associate members, or some- 
 thing of that kind, by which we can get a large number of people who are 
 interested in mining, but to whom that ten dollars seems a pretty serious 
 barrier and when the time comes for voting on this finally in the meet- 
 ing to be called, I don't know whether any motion that may be made 
 now can be counted as a part of that program. 
 
 SECRETARY CALLBREATH: Any member has the right at 
 any time to submit an amendment. 
 
 DR. HOLMES: I have forgotten now whether there was a re- 
 quirement that the Secretary shall call such a meeting. I don't think 
 there was, but if not it was offered as an amendment to be submitted 
 and it will be received and sent out with the notice. 
 
 MR. E. B. KIRBY, Missouri: I rise to ask merely for informa- 
 
AMERICAN MINING CONGRESS 109 
 
 tion about this resolution. Is it something that has been framed up 
 carefully enough by the committee or by the officials to act on it? 
 
 THE PRESIDENT: It was considered on the floor the other 
 day and the committee was appointed for the purpose of revising the 
 by-laws and this is their report. Before putting the motion I simply 
 desire to make this remark. We have a large representation here by 
 proxies, but the actual members present are not so numerous because 
 they are pretty late coming in. The way the organization is shaping 
 itself and the interest which is manifested by the coal men, I think 
 no doubt the iron men will join us eventually. I think the time is near 
 at hand when we should take occasion, recognizing the interests of 
 the affiliated mining industries of this country, to increase our director- 
 ship. I think instead of having the present number we almost ought 
 to have double that number. I believe in large board of directors, for 
 therein lies great strength. A man being elected a director naturally 
 considers that he is then responsible for the Congress personally, and 
 he will work in his own community for the success of the Congress. 
 If we had a large representation here in person I would be almost 
 inclined to suggest that even at this time we should embody in this 
 report or perhaps make another report to amend our articles so as to 
 provide a large directorate. I simply make that as a suggestion at 
 this time. 
 
 MR. E. L. DE LESTRY, Minnesota : The proposition just mentioned 
 by the President of this association was carefully threshed out by your 
 committee; as we are now organized, and here represented, we are still 
 the original American Mining Congress as it was started by the metal 
 mining states of the West. We have not a very large number of coal mem- 
 bers, and I don't believe at this time in surrendering the idea upon which 
 this organization was founded merely at the beck and call of people not yet 
 identified with us. This association spent its time and talent and money 
 and energy to secure the Bureau of Mines, and after we have done the 
 work the coal interests have gotten the good of it, and the metal miners 
 had not had a look in at the Bureau of Mines. I believe along the lines 
 of this amendment, and if it is worth having, gentlemen, it is worth 
 paying for on their and our part. An association here in the state of 
 Illinois of some 200 coal operators could not under any other process 
 pay for one membership and get 200 votes on any proposal that we 
 may make up, and if we gave an association membership on the pay- 
 ment of one fee we would defeat our own purposes. Let us open the 
 doors not only to coal men, but to quarry men, and to the iron people 
 of my state, who organized the Lake Superior Institute. Let them 
 come in and be elected to membership in the Mining Congress, and 
 pay dues and cast votes according to the payments that are made, the 
 same as we do. I feel this way about it: If it is going to be such great 
 benefit to an organized body in any other industry along this line, isn't 
 it worth while for the individual members to become members of this 
 Congress? There is not a man living who is actively engaged and inter- 
 ested in mining who can't pay $10 a year to have his interests pro- 
 tected. I think the matter that the President mentioned about increas- 
 ing the directorate should be taken up at the next session after we 
 have seen the results of this amendment and when it is really a 
 necessity, when that membership has been secured and their interests 
 become as paramount here as ours. I don't believe in tearing down 
 the act of our organization at this time until we know at least whether 
 the opening of the doors will bring the people to us. 
 
 THE PRESIDENT: Understand 1 am not urging that, but I say 
 the time is coming. I simply mentioned that as a matter of considera- 
 tion, believing that it would be a proper thing after we were once thor- 
 oughly organized on the lines which are now being laid. 
 
 MR. E. T. BENT, Illinois: As a member of the committee and 
 speaking for the coal men, speaking for the few new members, I wish to 
 say it is not the desire of the coal men that they be given representation 
 beyond the extent to which they contribute to the maintenance of this 
 
110 OFFICIAL PROCEEDINGS 
 
 work. Furthermore, we desire as much as the last speaker that coal 
 men become individual members of this Congress. I am here as a mem- 
 ber of the Congress, and I would say in Illinois and other coal states 
 members of our organizations cannot do anything that will accomplish 
 more than the $10 spent for fees in this Congress. You alone are pow- 
 erless to influence public opinion sufficiently to influence Congress, and 
 we alone can't do it, but unitedly we can help you and help ourselves. 
 Let us gain the support of these organizations as well. The resolution 
 goes as far as the coal men ask (applause). 
 
 MR. SCHOLZ: Mr. Bent has already expressed what I intended 
 to say. I only want to add one more point, and that is from his ex- 
 pression it would seem our interests could possibly conflict. I want 
 to point out the fact that whether we mine coal, clay, silver, gold, iron, 
 or copper, the intention of the Congress is directed in only one chan- 
 nel, and that is for the benefit of all, and there should be no distinction 
 between metal mining and coal mining. We have so many common 
 interests that we should lose sight of individual interest, and work for 
 the common good. 
 
 MR. S. A. TAYLOR, Pennsylvania: I just want to call attention 
 to one thing, lest it might be misunderstood. My friend, -the first 
 speaker, made the statement that the Mining Congress had secured the 
 Bureau of Mines. I am sure there is no person in this room, no person 
 among the coal men, nor any other person in any other department of 
 mining that would detract one iota from the honor and part which is due 
 the metal men in securing the Bureau of Mines. Lest there should be 
 a misapprehension of the facts from the statement I would like to state 
 this, and I believe it will be borne out by every other person who had 
 anything to do with the getting of the Bureau of Mines established in 
 Congress, and I am sure my friend, the chairman of the mining com- 
 mittee, will bear me out in this fact that whenever any institution which 
 is devoted entirely to one branch of mining appears before Congress to 
 establish their views and asks for legislation, it immediately becomes a 
 matter of selfishness, or rather appears as a matter of selfishness. I 
 think one of the things probably more than anything else that induced 
 Congress to establish the Bureau of Mines was the fact that all 
 branches of mining importuned Congress for the establishment of that 
 Bureau. It is true the American Mining Congress led that fight, and 
 through the excellent service of the Secretary, who was on the firing 
 line all the time, was enabled to keep the other branches of mining in 
 close touch with what was going on. Practically every branch of mining 
 was present, and I believe it was the united effort of all those branches 
 more than any one thing that brought about the final result. Now the 
 point I wish to make is this, if we hope to establish anything that is 
 good for the entire country it must come through some national work, 
 such as the American Mining Congress; it can't be secured through the 
 coal operators' association, it can't be secured through the zinc opera- 
 tors' association, it can't be secured through the iron operators' asso- 
 ciation because the moment those individual associations appear be- 
 fore Congress it at once gives out the impression, that it is a selfish 
 interest that is asking for these things. I believe that the moment any 
 one branch of mining undertakes to run away with the Mining Con- 
 gress, that the Mining Congress is doomed. Its work for the future 
 should represent the interests of the entire mining world in all aspects, 
 and the various associations must work in harmony in the mining con- 
 gress. For that reason I believe this motion should carry. I have 
 little fear of any branch of mining attempting to run away and control 
 absolutely the Mining Congress. 
 
 Upon the motion being put it was unanimously carried. 
 
 THE PRESIDENT: Is the nominating committee ready to re- 
 port? 
 
 DR. ERASMUS HAWORTH, Kansas: Mr. President, the commit- 
 tee appointed to nominate directors to be elected at this meeting find that 
 they should report seven nominations, one for a period of one year, one 
 
AMERICAN MINING CONGRESS 111 
 
 for a period of two years, and five for a period of three years. We beg to 
 submit the,following report: For the one year term we nominate Mr. John 
 Dern, our present President, and before I go on to the others I want 
 to make just a word of explanation regarding this particular nomina- 
 tion. Mr. Dern got word to us in some way that he thought he had 
 served about long enough and asked that we should not renominate him. 
 No sooner had that information leaked out amongst the members of 
 the Congress than we were besieged on all hands with the urgent re- 
 quest that we, insist on Mr. Dern serving. I had two sessions with the 
 gentleman before he would permit his name to be mentioned, and I 
 don't know how many other sessions other gentlemen had. He finally 
 said, "If you really think I ought to say yes, I don't want to be con- 
 trary, and you may put me on for one year." Otherwise, we would 
 have put him on for three years. For the two-year term, the committee 
 begs to nominate Mr. A. G. Brownlee, of Colorado, who at the present" 
 time in a director, I believe. For the three-year term we nominated 
 Mr. Samuel A. Taylor, of Pennsylvania; Mr. Carl Scholz, of Illinois, and 
 Mr. John Mayer, of Missouri; Dr. James Douglas, of New York, and 
 Mr. H. N. Taylor, of Illinois. 
 
 THE PRESIDENT: Gentlemen, you have heard the report of 
 the committee. What is your pleasure? 
 
 MR. E. L. MARTIN, Georgia: I move you, Mr. President, that 
 the Secretary cast the ballot of the association. 
 
 THE PRESIDENT: It has been moved that the Secretary be 
 instructed to cast the unanimous ballot of all the members present in 
 person or by proxy for the election of those nominated by the 
 committee. 
 
 SECRETARY CALLBREATH: In accordance with your instruc- 
 tion, Mr. President, I have cast the ballot of the members present in per- 
 son and by proxy for directors, as follows: One year, John Dern, Utah; 
 two years, A. G. Brownlee, Colorado; three years, Samuel A. Taylor, 
 Pennsylvania; Carl Scholz, .Illinois; John Mayer, Missouri; Dr. James 
 Douglas, New York, and H. N. Taylor, Illinois. 
 
 THE PRESIDENT: Gentlemen, by casting that vote you have 
 elected the directors for the terms specified as announced by the 
 Secretary. 
 
 SECRETARY CALLBREATH: May I say a word with refer- 
 ence to the suggestion which the President made concerning an in- 
 crease of the board of directors, simply to indicate what would be nec- 
 essary in case that should be decided upon. Under the corporation laws 
 of the state of Colorado, which are not altogether clear, there is sup- 
 posed to be a limitation of thirteen on the possible number of directors 
 which an organization can have, and that has been passed upon by some 
 prominent lawyers there as being the law, a position in which I per- 
 sonally do not agree and which has not been generally followed in 
 some of the charitable institutions which have any number of directors 
 that they see fit. But that is the situation with reference to the law of 
 Colorado and it would probably be better to avoid any question of that 
 kind; in case you should increase the board of directors we could sur- 
 render the charter and reinccrporate in some other state in which there 
 was no such limitation. That of course would be a question to be 
 worked out whenever it is decided that it is wise to increase the board 
 of directors, which seems to be likely soon. 
 
 MR. JOHN MAYER, Missouri: As I understood the resolution 
 it said that these different associations would be admitted on a plan 
 to be agreed upon. When do I understand that agreed plan is to be 
 decided? I only want the information to report to the Southwestern 
 Coal Operations' Associations. 
 
 SECRETARY CALLBREATH: That will be taken up by the 
 Board" of Directors of the Mining Congress as now constituted for 
 decision. 
 
112 OFFICIAL PROCEEDINGS 
 
 THE PRESIDENT: If there is nothing further I will entertain 
 a motion to adjourn the members' meeting. 
 
 MR. SCHOLZ: Is this the final adjournment? 
 
 THE PRESIDENT: It is of the meeting of the members. 
 
 MR. SCHOLZ: For what time? 
 
 THE PRESIDENT: Until the next annual session. 
 
 MR. S. A. TAYLOR: I move that we adjourn. 
 
 THE PRESIDENT: It has been moved and second that we now 
 adjourn sine die. 
 
 MR. J. M. DINWIDDIE, Iowa: This Congress is made up of 
 sort of a double header. It does not seem to me the proper thing for 
 .the members to take certain action to adjourn before the final meeting 
 *of the members and delegates. This adjournment puts us out of posi- 
 tion to take up any question that might be put before us. Could we 
 not adjourn at the call of the Chair so that we can have that chance to 
 bring before us such tkings as may be necessary? I don't know how 
 else it can be arranged if you are going to give the delegates any 
 benefit at all. 
 
 THE PRESIDENT: For the information of the gentleman I 
 will say this has been the practice that anything which might come up 
 requiring consideration will be referred to the board of directors for 
 their action. 
 
 Whereupon the meeting adjourned sine die. 
 
REPORTS OF COMMITTEES 
 
 Report of Committee on Workmen's Compensation. 
 
 To the American Mining Congress. 
 
 Gentlemen: The undersigned committee, to which was delegated 
 the work of considering and recommending the form of a law, providing 
 compensation for accidents occurring in connection with the coal min- 
 ing industry of the various States, respectfully submit the following 
 tentative measure: 
 
 From available statistics of tonnage and accidents, fatal and other- 
 wise, your committee feels satisfied that the revenues from the levy of 
 1 cent per ton, on all coal mined for commercial purposes, will be 
 ample to meet all the requirements of the proposed act. The funda- 
 mental principle upon which the suggested legislation is founded and 
 one that must appeal to all fair minded men is that the industry, in- 
 stead of the individual, is responsible for the accidents which in a 
 measure it creates, and that reasonable financial provision should be 
 made for the unfortunate injured and those dependent upon them, and 
 that whatever amount the law requires to be distributed should go di- 
 rectly and immediately to those most in need of it and best entitled to 
 receive it. 
 
 The elimination of the question of negligence, as legally denned, 
 would operate in the adjudication of such claims to discourage and pro- 
 hibit the present wasteful system of litigation, and would therefore 
 avoid the loss of time and money incidental thereto. It is furthermore 
 a recognition of the tragic fact that under the complicated conditions' 
 of modern industry, despite every care and caution, accidents will occur, 
 and that such unavoidable occurrences should, as far as possible, be 
 anticipated, provided for, and included as one of the important and 
 necessary elements of cost in the general conduct of industry. 
 
 In order that the coal producing States that compete directly with 
 each other may not be handicapped on account of such legislation, we 
 respectfully recommend the immediate appointment of a joint commit- 
 tee, comprising two mine operators and two mine workers, to co- 
 operate with the members of this committee representing such States, 
 to urge upon the respective legislatures the enactment of the bill attached 
 hereto, to take effect as nearly as possible at the same time between 
 such competitive States, with such changes as the form of administra- 
 tion in each State may require. 
 
 Very respectfully yours, 
 
 JOHN H. JONES, 
 DAVID ROSS, 
 
 i W. R. WOODFORD, 
 
 J. W. DAWSON, 
 
 Committee. 
 
 AN ACT 
 
 To provide indemnity for disabilities caused by accidental injuries aris- 
 ing out of and in the course of employment in or about any coal 
 mine, coal washer, or coal tipple within this State (or Common- 
 wealth), to provide a pension for aged mine workers, and to pro- 
 vide a fund for such purposes by the levy and collection of a 
 special tax upon all coal produced in this State (or Common- 
 wealth); extending and denning the duties of the State Auditor 
 
114 OFFICIAL PROCEEDINGS 
 
 (or other designated authority) and State Treasurer, and fixing the 
 penalties for the violation of the provisions of this Act. 
 
 Be it enacted by the General Assembly of the State (or Common- 
 wealth) of 
 
 Section 1. The Board of County Commissioners (or the legal 
 taxing authority) of each County in this State (or Commonwealth) is 
 hereby required at the time of making the annual levy of State and 
 County taxes to levy a special tax of one cent per ton on the tonnage 
 of all coal mined and shipped or sold locally in such County; such tax 
 shall be paid to the Auditor (or other designated authority) of the State 
 
 (or Commonwealth) of - quarterly on or before the 
 
 twenty-fifth days of January, April, July, and October of each year upon 
 all coal mined in such County as aforesaid during the three months im- 
 mediately preceding the month in which such payment shall be made, 
 said moneys to be placed in a special fund as hereinafter provided. 
 
 Sec. 2. The agent, manager, foreman or accountant of any cor- 
 poration, partnership, association, person or persons engaged in mining 
 
 coal in the State (or Commonwealth) of shall, on 
 
 or before the twenty-fifth days of January, April, July, and October of 
 each year, make report to the State Auditor (or other designated author- 
 ity) as to the amount of coal mined as aforesaid during the previous 
 three calendar months and subject to the tax of one cent per ton; such 
 report shall be verified by affidavit, and shall be accompanied by a 
 certified check in full for the amount of the tax provided in Section 1 
 of this Act. 
 
 Sec. 3. It is hereby made the duty of the State Auditor (or such 
 State officer or department as may be designated or such other agency 
 as may be created) to receive all moneys provided for in this Act and 
 to make proper acknowledgment of the receipt of such moneys to the 
 person making such remittance. The Auditor (or other agency) shall 
 pay all moneys so received by him to the State Treasurer, who shall 
 keep such sums in safe custody in a separate fund to be known as the 
 Employers' Accident Indemnity Fund. The State Treasurer shall invest 
 the surplus of said fund as other State funds are invested, and all. in- 
 terest accruing from such investments shall be accredited to and paid 
 into said fund. The bonds of the State Treasurer shall be liable for 
 such funds, and it shall be the duty of the State Treasurer to pay out 
 such fund only upon the warrant of the State Auditor and to keep 
 accurate accounts of the receipts and disbursements of such money. 
 
 Sec. 4. All workmen, laborers, and employes in and around any 
 coal mines or in and around any coal washers in which coal is treated, 
 or in and around any river tipple handling coal within the State (or 
 
 Commonwealth) of shall be entitled to receive 
 
 indemnity for all injuries caused by accidents arising out of and in the 
 course of his employment in and about any such mine, coal washer, or 
 coal tipple, and a monthly benefit during disability occasioned by old 
 age, upon the basis hereinafter set forth, it being intended that the 
 average wage of any workman hereinafter referred to or made the basis 
 of compensation shall be the average monthly wages received by him 
 during a period of five years immediately preceding such accident, in 
 no case, however, to exceed the sum of $70 for each month, and in case 
 his _ employment in his then position has not extended over the entire 
 period referred to, then the average wage paid to other workmen per- 
 forming similar duties during the whole of said period. Such monthly 
 benefit, however, shall in no case be more than $35 or less than $25. 
 
 First. In the event that such accident results within thirty (30) days 
 thereafter in the death of such workman, his legal representatives shall 
 be entitled to receive from said indemnity fund compensation upon the 
 following basis: The legal representatives of each single man or mar- 
 ried man not living with or supporting his family shall receive from said 
 fund the sum of five hundred ($500) dollars. The legal representatives 
 
AMERICAN MINING CONGRESS 115 
 
 of each head of a family living with or supporting such family shall re- 
 ceive from said fund the sum of five hundred ($500) dollars, and in addi- 
 tion thereto a monthly benefit for and during the term of three years, fol- 
 lowing said accident, a sum equal to fifty per cent of such workman's 
 average wages plus ten per cent of such average wages for each child 
 under sixteen years of age at the time such benefits are payable and 
 ten per cent of such wages additional for five or more years of continu- 
 ous service with his then employer, in any case such monthly payments 
 however shall not exceed the average wage of stfch employe nor the 
 total sum of three thousand ($3,000) dollars. 
 
 Second. In the event that such injuries shall incapacitate such 
 workman from the pursuance of his usual work he shall, during the 
 period of such incapacity, receive from such fund a monthly benefit 
 equal to one-half of the amount of his average monthly wages during 
 the preceding year plus ten per cent of such wages for each child under 
 sixteen at the time "such benefits are payable and ten per cent of such 
 wages for five or more years of continuous service with his then em- 
 ployer, such benefits, however, not to exceed the total sum of two thou- 
 sand ($2,000) dollars; provided, however, that if death shall result from 
 said injury within one year from the date of said accident, the legal 
 representatives of such workman shall receive from such fund com- 
 pensation upon the basis provided in paragraph one hereof, less such 
 sums as may have been theretofore paid such workman under the pro- 
 vision of this paragraph. 
 
 Third. It is further provided that the following injuries shall en- 
 title the workman, in lieu of other benefits at his option, to compensa- 
 tion on the following basis: 
 
 (A) For the loss of one hand, twelve months wages. 
 
 (B) For the loss of one arm, eighteen months wages. 
 
 (C) For the loss of one foot, nine months wages. 
 
 (D) For the loss of one leg, twelve months wages. 
 
 (E) For the loss of one eye, six months wages. 
 
 And in case of the loss of both hands or both arms or both feet or 
 both legs or both eyes, he shall be entitled to a sum equal to his average 
 wages for a period of four years, not, however, in any case to exceed the 
 sum of three thousand ($3,000) dollars. 
 
 Fourth. In the event that any workman who has been employed 
 for a period of 25 years in the coal mining industry, the last ten years of 
 which he shall have been so employed within the State (or Common- 
 wealth) of shall have reached the age of 65 years and 
 
 shall become unable to perform his usual labor or labor of any sort 
 about any mine, washer, or tipple by reason of old age, he shall there- 
 after be entitled to receive from said fund a sum equal to 50 per cent 
 of his average monthly wages during the preceding ten years. 
 
 Fifth. In determining the amount of the monthly benefits to be 
 paid under the provisions of this Act, regard shall be had to the differ- 
 ence between the amount of the average monthly wages of the appli- 
 cant before the disability and the average amount such workman is able 
 to earn after the beginning of the disability on account of which such 
 benefits are paid; and in case such workman shall be able to perform 
 some sort of labor the amount of wages thus received for partial serv- 
 ice shall be deducted from the average wages upon which his benefits 
 would otherwise be computed, and he shall receive upon such difference 
 the percentages to which he would be entitled to receive in case of 
 total disability. 
 
 Any workman who is entitled to benefits under this Act or the 
 personal representatives of any workman who shall have been killed by 
 such accident shall file with the State Auditor (or any other agency 
 authorized to administer the fund) proof of such claim upon such form 
 as shall be required by the said State Auditor (or other agency), such 
 proof to be sworn to by such applicant and by three disinterested per- 
 sons, one of whom shall be a practicing physician, and each of whom 
 shall be familiar with the facts, and who shall separately certify under 
 
116 OFFICIAL PROCEEDINGS 
 
 oath their belief as to the right of said applicant to receive the benefits 
 applied for under the provisions of the Act. It shall be the duty of the 
 mine superintendent of any mine at which an accident shall occur, and 
 of the mining inspector of the district in which such mine is located, 
 to make a joint report to the State Auditor (or other designated author- 
 ity) of the facts surrounding such accident, and of all facts of importance 
 in passing upon the validity of the claim or claims upon said indemnity 
 fund growing out of said accident. 
 
 Sixth. The State Auditor, when proper proof has been made of 
 the justice of any such claims, shall draw his warrant payable to such 
 beneficiary upon the filing with him, in the event of death, the acknowl- 
 edgment of the legal representative of such workman that the money 
 so received is in full satisfaction of all claim or claims which said appli- 
 cant personally or as such representative may have on account of dam- 
 age arising from the injury for which such indemnity is paid; and in 
 case of disability the acknowledgment of such beneficiary that the money 
 so received is in full settlement of all claims which such beneficiary may 
 have on account of such injury for the time for which such benefit is 
 paid. 
 
 Sec. 5. The provision made for indemnity of employes under this 
 Act is and shall be construed as being in lieu of and in satisfaction of 
 all claims for indemnity against any employer by any employe by rea- 
 son of any injury received in the course of his employment, and the 
 acceptance of any benefit under the provisions of this Act by any per- 
 son or persons shall constitute a bar against any action brought by any 
 such person against his said employer on account of any such acci- 
 dental injury. 
 
 Sec. 6. The institution of any suit in law or equity by any em- 
 ploye against his employer for damages on account of personal in- 
 juries received in the course of his employment as aforesaid, shall con- 
 stitute a forfeiture of said employe's right to receive indemnity from 
 the fund herein provided for and the amount to which said employe 
 would in the absence of such suit be entitled to receive from such fund, 
 and in addition thereto his proper court costs expended in defending 
 such suit shall be paid by the State Auditor (or other agency authorized 
 to administer the fund) to said defendant employer upon the termina- 
 tion of which to reimburse him to that extent for the judgment and 
 costs for which he may become liable in any such suit; the total amount 
 of such payment, however, shall not exceed the sum of five thousand 
 ($5,000) dollars; 
 
 Sec. 7. In the event that the State Auditor (or other agency 
 authorized to administer the fund) is not satisfied as to the jus- 
 tice of any claim made for indemnity from said fund, he is author- 
 ized to require such additional proof as in his judgment is necessary to 
 fairly establish the rightfulness of the claim so made. If any workman 
 applying for benefits under this act refuses to submit himself to any 
 required examination or in any way obstructs the same, his right to 
 compensation under this Act shall be suspended until such examination 
 shall take place and shall absolutely cease unless he submits himself 
 to such examination within one month after being requested to do so. 
 
 Sec. 8. There is hereby created an Advisory Board to consist of 
 three members to be appointed by the Governor, by and with the ad- 
 vice and consent of the Senate, one of whom shall be a representative 
 coal operator and one a representative coal miner, the members of such 
 board to be appointed for three years, and to receive a compensation 
 of five dollars per diem, together with their necessary traveling and 
 hotel expenses, for the time necessarily engaged in performing the said 
 duties. Such Advisory Board shall have general control and super- 
 vision of the administration and execution of the provisions of this 
 Act, shall hear and determine all disputes arising between the State 
 Auditor (or designated agency) and claimants for indemnity here- 
 under, and shall make annual report to the Governor of the condition, 
 
AMERICAN MINING CONGRESS 117 
 
 operation and affairs of such fund at such time as may be designated 
 by the Governor. It is hereby made the duty of the Auditor (or desig- 
 nated agency) and Treasurer to make report to said Advisory Board 
 at all reasonable times on demand of the condition and affairs of such 
 fund and of all acts by them performed under the provision of this Act. 
 
 Sec. 9. Should the proceeds of the special tax herein provided by 
 this Act at the end of three years after the going into effect of this 
 Act be found to be in excess of the amount necessary to pay the in- 
 demnity provided for in this Act, the State Auditor is hereby authorized 
 to change the amount of the levy herein provided for and the Board 
 of County Commissioners of each county in the Commonwealth, upon 
 being notified in writing of such change, shall thereafter be authorized 
 and required to make levy of the amount of tax so specified by said 
 Auditor (or other designated authority) as being sufficient to pay the 
 indemnity provided for in this Act, and the rates so fixed by said Audi- 
 tor (or designated authority) shall be annually levied as ordered by said 
 Auditor, which levy shall in no case exceed the amount provided in 
 Section 1 of this Act. 
 
 Sec. 10. It shall not be lawful for any attorney or agent of any 
 workman or the legal representative of any deceased workman entitled 
 to indemnity under the provisions of this Act to receive as a fee for his 
 services in connection with securing the payment of such indemnity a 
 sum in excess of five per cent (5%) of the amount collected, and in no 
 case to exceed $25 for all services rendered in connection with the pay- 
 ment of indemnity for any one accidental injury. 
 
 Sec. 11. Any manager, agent, foreman, accountant, person or per- 
 sons who represent any corporation, partnership, association, person or 
 persons engaged in the mining or management of any coal mines or 
 
 coal washers in the State (or Commonwealth) of , or 
 
 any person or persons liable for the payments herein provided for who 
 shall violate the intent of this Act by inaccurate reports of tonnage of 
 coal produced by them, or who in any manner hinders or obstructs the 
 Auditor of State in ascertaining facts bearing up any case provided for 
 in this Act, or who may refuse correctly to .make out such reports as 
 are required by this Act, or as requested by the Auditor of State, or 
 submit to its provisions, when liable therefor, and any person who shall 
 knowingly and willfully assist an applicant in a fraudulent attempt to 
 obtain benefits hereunder, shall be guilty of a misdemeanor and shall 
 be fined for each offense the sum of not less than $100 nor more than 
 $500 and be imprisoned in the county jail for a period of not less than 
 one month nor more than six months, or by both fine and imprisonment. 
 The proceeds of all fines collected under the provisions of this Act shall 
 be forwarded to the State Treasurer and by him accredited to the Em- 
 ployers' Accident Indemnity Fund. 
 
 Sec. 12. No indemnity or benefit shall under the provisions of 
 this Act be due or payable where the disability is due to the willful 
 carelessness or gross misconduct of the employe, or unless such dis- 
 ability shall continue for more than seven days, and every claimant is 
 hereby required to give notice of such claim to the State Auditor (or 
 other designated agency) within thirty days after the happenings of 
 such accident. 
 
 Sec. 13. All benefits and indemnity provided for by this Act shall 
 be paid only to the beneficiaries or to their legal representatives other 
 than assignees, and no benefits under this Act shall be assignable or 
 subject to attachment or execution or be liable in any way for any debt 
 of any workman on account of whose disability such indemnity is pay- 
 able. 
 
 Sec. 14. The tax herein provided for shall be due and payable 
 
 upon all coal mined in the State (or Commonwealth) of 
 
 on and after the first day of October, 1911; the indemnity herein pro- 
 vided shall apply to all accidental injuries occurring after January 1, 1912. 
 
118 OFFICIAL PROCEEDINGS 
 
 Sec. 15. All expenses of administration of the provisions of this 
 Act shall be a charge against the State and shall be provided for by 
 suitable appropriation by the General Assembly. 
 
 Sec. 16. This Act shall be in full force and effect on and after its 
 passage. 
 
 Report of the Advisory Committee on Mineral Statistics. 
 
 George W. Riter, Salt Lake City, Utah, Chairman. 
 To the American Mining Congress, Chicago, 111. 
 
 Gentlemen: Your Advisory Committee on Mineral Statistics pre- 
 sents its first progress report after having been in existence as a com- 
 mittee for only part of a year. 
 
 The Committee owes its existence to the growing regard for ac- 
 curate mineral statistics, not only for those dealing with mineral pro- 
 duction, but even more for those dealing with economic results. The 
 investing public now demands data covering a wider range than ever 
 before. Moreover, there is a feeling that the attitude of the federal gov- 
 ernment with reference to the unsold mineral lands of the public domain, 
 and also with reference to a protective tariff on mineral products, will 
 hinge on the more recent economic history of the mineral industry in 
 its various branches. 
 
 In discussing the mineral resources of our country, the word 
 "Conservation" is being used with increasing frequentcy. .Whatever 
 meaning be placed on this word, wise legislation can hardly be reached 
 in the absence of an accurate record of the results attained in recent 
 years in the various branches of the mineral industry. Unfortunately, 
 this record is far from complete, and the purpose of this committee is 
 to encourage the completion of the record by those who have the means 
 of doing so. The statistics on gold and silver afford an interesting 
 case in point. Perhaps the best available history of this branch of the 
 mineral industry is to be found in the report of the Special Census of 
 Mines and Quarries for 1902.* 
 
 According to this report, the gold and silver mines of the United 
 States (including argentiferous lead mines) taken collectively, do not 
 pay their own way. It appears (Table 1, page 510), that producing 
 mines, 2,992 in number, sold their product for the year for $18,644,400 
 above the cost of production, but that non-producing concerns, listed 
 to the number of 3,252, spent $21,551,358, without getting any returns. 
 The conclusion is that the gold-silver-lead mining industry fell some 
 $2,906,958 behind for the year. Omitting placer mines from the com- 
 putation, the deficit is much greater. If the report falls short of the 
 truth, more than likely it does so in not disclosing the whole amount 
 spent on non-producing properties, because mines having no production 
 are more apt to escape making returns. But the trouble with the figures 
 is that they are all lumped together. 
 
 Your committee has therefore suggested to the Bureau of the 
 Census that in compiling the returns gathered in 1910 from metal mines, 
 the data be handled so as to make separate tabulations for mines that 
 are profit-paying and for those that are non-profit-paying; also, with 
 special reference to gold, silver and silver-lead mines, that the data be 
 tabulated so as to group the mines according to the nature of their out- 
 put. The Director of the Census promises to follow this suggestion so 
 far as may be practicable, and announces that every suggestion that is 
 made with a view to making the census reports a source of useful in- 
 formation to practical mining men, will be welcomed by him. We are 
 pleased to report that a similar attitude is assumed by the United 
 States Geological Survey. Indeed, the compilation and publication of 
 
 *Special Report of the Census Office. Mines & Quarries, 1902, 1, 
 123 pages. 
 
AMERICAN MINING CONGRESS 119 
 
 statistics of better sort seems to depend entirely on the willingness of 
 producers to keep accurate accounts and to report their data to com- 
 piling offices. 
 
 At the instance of your committee, acting through members of the 
 Senate Committee on Mines and Mining, the practice of the General 
 Land Office with reference to mineral survey plats has been modified 
 so that all plats will hereafter be duplicated by photographic or print- 
 ing processes, instead of making each copy long-hand, as was the cus- 
 tom for so many years. The new rule will effect a great saving in time 
 and labor, as well as marked decrease in the charges made against 
 each individual applicant for patent to mineral land. 
 
 It is of course impossible for any one committee or set of officials 
 to decide just what statistics ought to be compiled for the various 
 branches of an industry so vast as that of mining. The best the com- 
 mittee can do is to pave the way for closer relations between producers 
 and statisticians, and to impress the idea on every individual producer 
 that suggestions and criticisms will be welcomed by the statistical offices 
 of the federal government, if made in a spirit of helpfulness, and with 
 a view to making the published reports of more practical value. 
 
 Report of the Committee on General Revision of the Mineral Land Laws. 
 
 E. B. Kirby, St. Louis, Mo., Chairman. 
 
 The Committee had assigned to it the work of securing action from 
 the Congress of the United States, upon the request of the American 
 Mining Congress for a general revision of the mineral land laws. By 
 the time the list of committee members had been appointed and had 
 conferred and agreed upon their plans, the winter session of Congress 
 was so near its close, that it was found that no effective action was 
 then possible. During the special summer session there was a general 
 understanding in the House and Senate that no general legislation was 
 to be introduced, and this understanding prevented the consideration of 
 our measure. It was, therefore, decided to undertake it early in the 
 regular session this winter, at which time a joint resolution on the 
 following lines will be introduced through our friends in Congress: 
 
 That Committee is instructed to pre- 
 pare and submit at this session a mode of procedure, whereby Con- 
 gress may undertake a general revision of the mineral land laws 
 of United States in the way which will best promote the public 
 welfare and meet the peculiar needs of the Mining Industry. The 
 plan recommended should provide a practical means whereby Con- 
 gress may utilize the best experience and judgment available in the 
 industry and which will give the mining regions of the United 
 States and Alaska ample opportunity for public hearings and the 
 discussion of remedies. 
 
 In the meantime, your Committee has taken up the matter with 
 the governors and the United States senators and representatives of 
 the western states and territories 'affected. It has informed them of 
 the request of the American Mining Congress for a general revision 
 and its reasons therefore, and of the aforesaid joint resolution to be 
 introduced at the next session. The replies show that in this under- 
 taking the American Mining Congress has not only no opposition, but 
 the general approval and support of the public men of western states, 
 while a number of them show a keen personal interest in the matter. 
 It is clear that with the support promised and the non-partisan nature 
 of the measure, that there will be effective action by Congress at the 
 next session. 
 
 After Congress has empowered some committee to act, your 
 Committee hopes to have the opportunity of presenting to it, such 
 detailed information and suggestions as may aid in preparing a plan, 
 whether for a Commission or otherwise, which will .be satisfactory to 
 Congress and accomplish the ends desired. Your Committee believes 
 
120 OFFICIAL PROCEEDINGS 
 
 that this may be secured through a wisely selected commission, 
 authorized to draft a revised code for the use of Congress. This com- 
 mission should hold public hearings in the principal mining centers of 
 the west and Alaska. It should call before it, men prominent for their 
 knowledge of prospecting, of claim locations, of mine operating, mine 
 litigation, and the history of mining laws, and should invite opinions 
 from the public, bearing upon the specific points at issue. The authori- 
 ties and experience of other mining countries should also be consulted 
 and the recommendations of the commission should be presented in 
 the forms of a fully drafted code. 
 
 . .It is clear that there is a best practical solution for each one of 
 the difficult problems involved in a general revision of the mineral land 
 laws, but in order to determine these best solutions, all opinions must 
 be brought to a focus before some authoritative body which has the 
 power of decision. Moreover, in order to assure the general approval 
 and acceptance of reforms affecting so many varied interests, the per- 
 sonnel of this body should be such as to command confidence and the 
 mining communities should have opportunities to present their views 
 before it. There is a wealth of learning and practical experience in the 
 country, which is availablbe for the work of framing a revised code, but 
 it is distributed among many men and must be focused by the plan 
 indicated. i I . ' I. *! 
 
 In order to properly follow up the business now under way, your 
 Committee asks that it be authorized to continue its work during the 
 coming year. A memorandum is attached, explaining the request of 
 the American Mining Congress for revision and the reasons for its 
 actions. 
 
 Report of the Committee on Standardization of Elactrical Equipment in 
 
 Metal Mines. 
 General Irving Hale, Denver, Colo., Chairman. 
 
 Your committee on the standardization of electrical equipment in 
 metal mines begs to report that owing to the sudden and severe sickness 
 of its chairman, General Irving Hale, on September 29, the work of this 
 committee was impeded to such an extent that it is impossible for your 
 committee to submit detailed findings herewith. 
 
 Yours truly, 
 
 H. S. SANDS. 
 CHARLES A. CHASE. 
 
President's Annual Address. 
 
 BY JOHN DERN, 
 SALT LAKE CITY, UTAH. 
 
 As representatives of the mineral industry of the United States, 
 we are assembled in the great enterprising, truly American City of 
 Chicago, in our fourteenth annual session. 
 
 It seems to surprise some persons that a mining congress should 
 be held in Chicago, instead of in some so-called mining' center. I 
 hope to convince you, before I finish, that the mining industry does 
 not deserve the limitations that many minds impose upon it, but 
 that, on the contrary, its scope is so broad that any community 
 where civilized men dwell together is an appropriate place to hold 
 a mining congress. 
 
 But aside from that, our Illinois friends, in view of the statis- 
 tics that were given us by Mr. David Ross, at Los Angeles, last 
 year would probably resent the insinuation that theirs is not a 
 mining state Mr. Ross informed us that Illinois ranks third among 
 the twenty-live coal producing states of the Union. He also claimed 
 that his state had mined 733 million tons of coal in the past one 
 hundred years, and that it has 200 billion tons left, which I for one 
 am ready to concede is a large quantity of coal. 
 
 For fourteen years the American Mining Congress has been 
 working to educate the general public to the importance of the 
 mining industry, and to teach the men engaged in the various 
 branches of that industry that they have wants and needs, which 
 can best be advanced by organized co-operation. I congratulate 
 the members on the progress that has been made, the prestige that 
 has been acquired, and the results that have been achieved. As one 
 who has been connected with the movement from its inception, I can 
 appreciate the difference between the early meetings and this en- 
 thusiastic and representative gathering. Not that there was any 
 lack of enthusiasm at the beginning; not that I would detract from 
 the honor that is due the patient, energetic optimists who did the 
 pioneer work, and kept the Mining Congress alive when its excuses 
 for existence, measured by results, seemed few and weak; but we 
 have grown and have developed into a power. Let us hope that 
 this power will always be used for good. 
 
122 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 In the beginning, our chief, almost our sole object was to 
 secure the establishment of a Department of Mines in the National 
 GoveVnment a worthy purpose, and one that has even yet not 
 been fully achieved, although we have been instrumental in causing 
 the first step to be taken. At our annual sessions, this topic was 
 always uppermost in our thoughts, and aside from that we had 
 no 'very definite policy. Many other subjects were discussed, but 
 we can now see that they were more for the purpose of filling in the 
 time than for the promotion of any sound, logical program. The 
 result was that the American Mining Congress was not taken se- 
 riously in many quarters. Prominent mine operators denied the 
 right of this organization to speak for the industry as a whole. 
 Influential journals jeered at our efforts, and derided the personnel 
 of the Congress. Doubtless the criticisms were in the main justi- 
 fied, but the American Mining Congress is not the only thing that 
 has had humble beginnings. 
 
 Work Continues Despite Obstacles. 
 
 At any rate, in spite of these discouragements and obstacles, 
 the work was kept up, the methods of procedure were improved, 
 and more definite aims were evolved. The idealistic leadership of 
 Judge Richards, who for seven troublous years was president, fol- 
 lowed by the efficient administration of Dr. Buckley last year, and 
 always supported by the energy and capacity of our Secretary, Mr. 
 Callbreath, gradually produced an association that justified itself, 
 and won the respect and allegiance of many who had formerly 
 looked at it askance, but who are now among our most valuable 
 members. In the words of Judge Richards, the Mining Congress 
 has "made itself respectable," and it now claims that it truly repre- 
 sents the mining industry of the United States, and that its delibera- 
 tions deserve the consideration due the combined voice of those 
 who are engaged in mining pursuits under the American flag. 
 
 I make this statement confidently, but not boastingly. It is 
 true that our membership is not yet as large as it ought to be, or 
 as it would be if we had induced all classes of mine operators and 
 workers to give us their active support, as they will surely do when 
 they awake to the fact that it is to their own interest to do so. 
 We do not wish to sail under false colors, or claim to be what we 
 are not. We are very desirous of getting the eastern coal miners, 
 and oil miners and iron miners to ally themselves more heartily 
 with the western metal miners, because our interests are mutual 
 
PRESIDENT'S ANNUAL ADDRESS 123 
 
 and identical, and in union and co-operation will be found the 
 strength to carry out the great purposes this Congress has in view. 
 We candidly, if regretfully, admit that, as our labor union friends 
 would say, we have many fields yet to organize. 
 
 Mining Congress Alone in Field. 
 
 Great numbers of men engaged in branches of the mineral 
 industry have not affiliated with the American Mining Congress, 
 and give no thought to its existence. The misfortune is theirs more 
 than ours, and sooner or later they will realize it, and come in and 
 do their share for the common good. But already we claim to 
 speak with the voice of authority, because there is no rival organiza- 
 tion that assumes to occupy the same field as we. Societies such 
 as the American Institute of Mining Engineers are technical in 
 their objects and work, which we are not. That is, they are con- 
 cerned with the scientific problems of practical mining and metal- 
 lurgy questions in which we are all vitally interested, but the 
 details of which this Congress does not pretend to make its special 
 field. Such societies, therefore, have our heartiest good-will and 
 admiration, and they have not the slightest reason for failing to 
 co-operate with us, and give us the benefit of their invaluable aid. 
 Nothing would please us better than to have all the members 'of 
 these societies join the American Mining Congress, so that they 
 may have the opportunity to do their share in advancing the larger, 
 general interests of mining, instead of devoting their energies and 
 talents exclusively to the details of their own specialty. Many of 
 these scientific men we already have with us. We need more of 
 them, and we want all we can get. The American Mining Congress 
 requires the best thought and most advanced ideas that can be had. 
 
 But what is nreant by "the larger interests of mining," to which 
 I have just alluded? In other words, what are the specific objects 
 of the American Mining Congress? Dr. Buckley said last year that 
 they were "to foster and promote mining in all its various branches," 
 and perhaps they could not be more concisely stated. This state- 
 ment, however, is so general as to be vague; and yet to particularize 
 would be to set limitations and restrictions that would be hard to 
 define, and that would certainly vary with conditions from time to 
 time. As questions come up, be they political, social, economic or 
 scientific, this Congress will discuss them, so far as they affect or 
 relate to the mining industry. But to give some conception of the 
 activities of the Congress, I might mention a few of the subjects 
 that have received attention, and some that are still before us. 
 
124 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 I have already said that the scientific and technological prob- 
 lems of mining are not the ones we aim to discuss. But to encourage 
 work of this nature, so that efficiency may be increased and waste 
 decreased in mining and metallurgical operations, is one of our chief 
 objects To induce the Government to help the miner as it helps 
 the farmer is one of the things we have constantly striven for, and 
 we expect to keep hammering away at it until we get what we 
 deserve. 
 
 Uniform Mining Laws. 
 
 To secure the enactment of uniform mining laws in the sev- 
 eral states, to the end that mine accidents may be minimized and 
 the health of workers protected, is a subject that has been most 
 carefully investigated by this Congress, and a model law has been 
 prepared, that we believe could well be used as a basis by all states, 
 with such modifications as local conditions might require. 
 
 To eliminate the fake promoter and all other sorts of mine 
 frauds is another end we have in view. To work for true con- 
 servation, and to aid the government in formulating a fair and 
 just Alaskan policy, are objects to which we are committed. We 
 have had committees to investigate sm/elter rates, railroad rates, 
 vertical side line law, general revision of mineral land laws, coal 
 tax insurance fund, and the standardization of electrical equipment. 
 It is apparent from this partial list of subjects that our activities 
 have touched both our internal affairs and our external interests. 
 To a few of the subjects that I have mentioned I will presently 
 make more extended reference, but I have merely been trying to 
 show that the American Mining Congress makes it its province to 
 consider any sort of a question that in any way affects the mining 
 industry. 
 
 When we speak of the mining industry a gooicl many of us are 
 prone to think only of gold, silver, copper, lead, zinc, coal and iron 
 mines. We should rid ourselves of this narrow conception. The 
 American Mining Congress aspires to stand for the mineral in- 
 dustry in its broadest sense. All of nature's bounties come from 
 the soil, and the products are of two classes, vegetable and mineral. 
 Everything that is not vegetable is mlineral, and should be classed 
 in the mineral industry. The scope of mining is greatly increased 
 when we add such other metals as platinum, tin, aluminum, anti- 
 mony, tungsten, quicksilver, bismuth, nickel, magnesium, manga- 
 nese, and the gems and precious stones; but it is very much more 
 enlarged when we consider the non-metallic minerals, including 
 petroleum, natural gas, salt, gypsum, lime, cement, asphalt, sand, 
 
PRESIDENT'S ANNUAL ADDRESS 125 
 
 gravel, stone, slate, phosphates, rocks, sulphur, asbestos, graphite, 
 mica, pigments, fertilizers, abrasive materials, chemical materials, 
 mineral waters, and the clay products, which embrace the brick and 
 tile industry. These and many more are just as much parts of the 
 mineral industry as are the seven first mentioned metals, and when ' 
 considered in this proper light, our industry assumes truly majestic 
 proportions. 
 
 Broad Aspect of Mining. 
 
 The mere mention of this broad aspect of mining ought to be 
 sufficient to silence those superficial critics who insist upon calling 
 mining a species of gambling. It is nothing of .the kind. It is, 
 in its every phrase, a legitimate, useful, honorable business, and it 
 forms the basis of many of our greatest enterprises. There are 
 frauds in mining, but so are there in farming. There are fakirs 
 in mining, but so are there in manufacturing. There are crooks 
 in the mining business, but so are there in banking and railroading. 
 And yet, in the minds of many well-meaning and honest people, 
 mining seems to be judged by its parasites and by those who in no 
 way stand for real mining. 
 
 I apprehend right here in Chicago, if a banker learns that one 
 of his customers is interested in a mine, he will at once conclude 
 that that customer is a speculator and a gambler, and that his credit 
 must be watched with unusual ca're. Now, it is needless for us 
 merely to decry this attitude. We know that it exists, and if we are 
 candid we must admit that there is a reason for it. The reason is 
 to be found in the insane mining booms that crop up from time to 
 time, when men let their imaginations run riot, disregard all laws 
 of probability, and make the most absurd representations and prom- 
 ises. That is when the fakir and the fraudulent promoter get in 
 their deadly work. And when the bubble bursts, and things get 
 back into their proper perspective, when the unfortunate dupes 
 have lost their money, they do not realize their own folly in listen- 
 ing to the wily stranger, but they hurl imprecations at mining, as the 
 quintessence of all that is crooked, and rotten and evil. The Amer- 
 ican Mining Congress can perform no greater service for itself and 
 for the public than to eliminate mining frauds, and to see that the 
 investor in mining securities gets a square deal and a "run for his 
 money." 
 
 These frauds are, of course, principally attached to metal min- 
 ing, and the stigma therefore rests chiefly upon that important in- 
 dustry. I will not go so far as to say that mining is as safe as any 
 other business, but I will say that., when conducted with proper 
 
126 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 skill, knowledge and ability, its risks can be so greatly minimized 
 as to make it a relatively safe venture. It cannot be denied that 
 the development of a new mine has a large element of chance. In 
 spite of favorable geological conditions, the outcome is often dis- 
 appointing. It is impossible to see into the ground, and opinions 
 can only be based upon visible evidence. But the possible returns 
 are so large that investors are willing to take these chances. Those 
 who put their money into a mining scheme with a full knowledge 
 of these conditions seldom complain if failure results, provided 
 they are sure their money has been honestly and intelligently ex- 
 pended. That is what we are endeavoring to bring about, and when 
 we succeed metal mining will move up to its proper place as a con- 
 servative, legitimate business. 
 
 Alaskan Situation. 
 
 The American Mining Congress has for several years taken a 
 special interest in Alaska, and any matter concerning that won- 
 derful but apparently distressed country is sure of our prompt and 
 sympathetic attention. The true status of the situation in Alaska 
 seems to be hard to find out. So many conflicting reports are re- 
 ceived that the average citizen finds himself perplexed and in doubt 
 about the facts. One day we hear that the coal deposits of Alaska 
 are fabulously large, and of the finest grade in the world. The 
 next day we are told that the quantity of coal has been grossly 
 overestimated, and that it is not very good coal anyway. From one 
 source comes the information that its bodies of copper ore are the 
 greatest ever discovered, and from another source we learn that 
 these mines are vastly overrated, and that they cannot compete 
 with the mines of the States. First we are startled by a tremen- 
 dous scandal about certain private interests grabbing and monopo- 
 lizing the great harbor of Controller Bay, and then we get sets of 
 resolutions from the city council and chamber of commerce of 
 the city of Cordova, stoutly maintaining that Controller Bay is no 
 harbor at all, and that Cordova Bay is the only feasible water out- 
 let. On the one hand we are solemnly assured that the people of 
 Alaska fervently desire home rule, and the next returning traveler 
 reports that he was unable to find any real sentiment of that kind. 
 
 These conflicting statements are very disconcerting to the man 
 who is trying to keep himself in a judicial frame of mind, so as to 
 judge fairly and avoid prejudice. What we seem to need more 
 than anything else is accurate, reliable, unbiased information. What 
 can we do until we get the facts? I am convinced that the people 
 of the United States, through their government, will do substan- 
 
PRESIDENT'S ANNUAL ADDRESS. 127 
 
 tial justice to their countrymen in Alaska, just as soon as they have 
 indisputable data about conditions as they actually exist. A very 
 appropriate step would appear to be the appointment of a special 
 congressional committee, or some sort of a governmental commis- 
 sion, composed of disinterested men of distinguished ability and 
 unquestioned probity, to make a thorough investigation of Alaskan 
 conditions. The mission of these men should not be to bolster up 
 the pet views of any one man or set of men, but they should go for 
 the sole purpose of gathering information, so that the government 
 of the United States can act intelligently and in the light of actual 
 facts, instead of floundering about in the dark and reasoning from 
 doubtful premises. 
 
 This suggestion may possibly cause our Alaskan friends to 
 groan, because is seems to portend further delay in the adjustment 
 of their troubles. It is quite conceivable that the opposite would be 
 the result. Certainly very little progress* is now being made in the 
 settlement of the vexed problems, and it is not apparent that a 
 speedy and satisfactory solution is in sight. If the proposed com- 
 mission would work diligently, and not protract its hearings un- 
 necessarily, its report might be expected within a reasonable time, 
 and if that report commanded the confidence of Congress, its sug- 
 gestions for the relief of Alaska might quickly be enacted into law. 
 And anyway, better 'a little delay and settle the question right, than 
 to act blindly and make mistakes. 
 
 Population Increases 764 in Ten Years. , 
 
 That there is something wrong in Alaska seems beyond doubt. 
 When a body of patriotic citizens, emulating the illustrious Revo- 
 lutionary tea destroyers of Boston, organize a Cordova coal party, 
 it is obvious that they have a grievance. When we hear it said and 
 repeated that Alaskans look with envious eyes upon the kind of 
 government that is enjoyed by their Canadian neighbors, just across 
 the line, and complain bitterly that their own government is treat- 
 ing them unjustly and unfairly, and is loading them with unreason- 
 able burdens and restrictions, it is a burning shame that we do 
 not at least find out whether their grievances are real or fancied. 
 When the population of that wonderful northern empire increased 
 only 764 in the ten years from 1900 to 1910, it looks upon the face 
 of it as if its development were being retarded, whereas, it should 
 by all means be encouraged. 
 
 The American Mining Congress last year adopted a most ex- 
 cellent report of its committee on Alaskan mining laws. That 
 report contained a number of observations and recommendations 
 
"128 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 that seem to be eminently sensible and fair. We believe that those 
 suggestions could be advantageously heeded by those whose busi- 
 ness it is to legislate for the territory, and by those whose business 
 it is to administer the laws. 
 
 In addition to what our organization has already attempted to 
 do for Alaska, we stand ready to help in any way that lies within 
 our power. We are fully in accord with the policy of preventing 
 the resources of that vast territory from falling into monopolistic 
 control, but we cannot understand why fear of that danger should 
 so blight activity that progress and development are at a standstill. 
 Are our statesmen not resourceful enough to devise measures that 
 will permit development and yet prevent monopoly? I think they 
 are; but they want the information that is requisite to intelligent 
 action. What is needed is a more thorough understanding of the 
 situation. 
 
 Conservation a Live Issue. 
 
 At our session in Los Angeles, last year, the subject most dis- 
 cussed was the conservation of our natural resources. This should 
 not be considered as a fad, but as a live issue, and one that jus- 
 tifies the interest it has awakened. I suppose it would be hard to 
 find a man who would not avow himself a conservationist, although 
 he might reserve the right to decide for himself what conservation 
 should properly mean. The ordinary conception of the conserva- 
 tion policy that has been recently developed in this country makes 
 it mean the protection of forests, the prevention of a water power 
 monopoly, and the leasing of coal and oil lands. These are impor- 
 tant topics, especially to us, since they all have a direct effect upon 
 the mining industry. 
 
 I think I voice the sentiment of mining men generally when 
 I say we give our unqualified and unstinted approval to any well- 
 directed efforts to prevent forest fires, to lessen the waste of our 
 timber resources, .and to avoid the damage that may result from in- 
 judicious deforestation. There can be no sound objection to a ra- 
 tional forestry policy, and the argument is all in its favor. We do 
 not believe, however, that it is necessary to administer this policy 
 in such a way as to hamper or interfere with legitimate mining 
 operations. A just forestry policy, must not impose burdens upon 
 mining, but must recognize the rights and needs of that industry, 
 and co-operate in its advancement, instead of placing obstacles in 
 its path. Mining, likewise, should refrain from ruthless, careless 
 and wasteful destruction of timber, and should willingly comply 
 with the necessary regulations prescribed by the forest service. In 
 
PRESIDENT'S ANNUAL ADDRESS 129 
 
 short, there should be sympathy, not antagonism, between the two 
 I also believe I speak for the large majority of the Western 
 mining men when I say that, notwithstanding many strong points 
 in its favor, we are not impressed with the wisdom of a plan to 
 lease coal and oil lands. We believe that the rapid and systematic 
 development of this class of lands can best be brought about by 
 continuing the system that now prevails, and under which prac- 
 tically our entire mineral development has taken place. We also 
 believe that many of the abuses that have been brought to light, 
 such as dummy entries of coal lands, are directly traceable to a lax 
 enforcement of the law. 
 
 Revision of Mineral Land Laws. 
 
 There is little doubt that if a leasing system were adopted, it 
 would not stop at coal and oil lands, but would expand to all min- 
 eral lands. Most of us recognize that our mineral land la\\s are 
 imperfect in some details, and the American Mining Congres. 1 has 
 a committee that is trying to work out a plan for a general revision 
 of those laws. We know that the present system permits wrongs 
 and abuses which call for better regulation, but we believe these 
 can be corrected without upsetting the entire present policy and 
 entering upon a wholly new path. The prevention of monopolies 
 that will have the power of extorting unreasonable prices from the 
 consumer is sound policy, which we all approve. That it is im- 
 possible to prevent such monopolies under the present system is 
 absurd, and that the leasing system will automatically prevent them 
 is doubtful. That the mineral land policy of the United States, 
 under which the prospector is guaranteed the full benefit of his 
 discoveries, has been a horrible mistake we flaMy deny. On the 
 contrary, we maintain that it has been a beneficent policy, and that 
 it has been the chief factor in winning the western half of this con- 
 tinent in settlement and civilization. 
 
 It is true that great fortunes have been made out of mining, 
 but they are exceptional ; and it is these exceptions that furnish the 
 incentive to the prospector to brave the wilds and hardships of the 
 remote places of the earth, in search of the treasure that is to be 
 his own when he finds it, and that will make him another of the 
 exceptions. Even under the present liberal law, very, very few are 
 so lucky as to have their dreams come true. Would the prospector 
 be equally bold and venturesome if he knew that he could get noth- 
 ing but a lease on his discoveries ? Would not the fear that a ca- 
 pricious readjustment of royalties might rob him of the greater 
 portion of his profits be strong enough to deter him from going 
 
130 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 ahead as he would if he knew that everything he might find would 
 be absolutely his own? To a man who has been close to the game, 
 it looks as if this would be the result. It seems to me that the ques- 
 tion of getting a revenue out of the mineral lands is of decidedly 
 minor importance. 
 
 The most far-reaching and valuable result of the pioneer 
 prospector's work is in opening up and developing tracts of the 
 public domain that would otherwise remain untouched. The win- 
 ning of these wild places to settlement and civilization extends our 
 agricultural area and widens our markets. This is of such vast 
 benefit to the whole country and to all the people that it is idle to 
 say the nation has wasted its resources because it has given the dis- 
 coverer title to his discovery. It would be just as logical to con- 
 demn the homestead law, which is universally conceded to be the 
 wisest policy this country ever adopted. There is no difference ; 
 the same principle underlies our mineral land system arid our ag- 
 ricultural land system. We believe it is a wise principle, and we 
 believe it would be a step backward instead of forward to abro- 
 gate the beneficent policy that has been the chief factor in develop- 
 ing the country, especially the west. 
 
 Furthermore, the seeking out of nature's bounties and bring- 
 ing them forth for man's use is incomparably more important, and 
 more beneficial to all the people, than the mere collection of a trib- 
 ute for the benefit of the general government. 
 Safeguarding Water Powers. 
 
 What to do with our water powers is a question that is not 
 easily answered. It is alleged that there is in existence or in pros- 
 pect a monopoly sthat aims to control the water powers of the coun- 
 try. If this assertion has any basis in fact, it deserves the most 
 careful attention. One of the country's greatest natural assets is 
 its water powers, and these should be looked after, so as to get 
 the greatest good for the greatest number. Certainly, the most im- 
 portant thing is not to make these water powers a source of rev- 
 enue to the government, but to safeguard the public interest by 
 providing that power can be obtained by those who need it at the 
 lowest possible rates. Give our people the benefit of cheap power, 
 and they will have an enormous commercial advantage over other 
 nations less favored by nature. It must be remembered, however, 
 "that it takes "capital, and lots of it, to develop these water power 
 projects, and if we are going to have the power that is now going 
 to waste harnessed up and made to serve us, we must encourage 
 .capital to do so by permitting it to make a reasonable profit. It 
 
PRESIDENT'S ANNUAL ADDRESS 131 
 
 seems to me that a water power is a public utility, just as much as 
 a railroad is. and instead of being treated strictly as private. prop- 
 erty, it should be controlled by state laws, as other public utilities 
 are controlled. A water power located in Oregon is of no use to the 
 people of Maine or Florida, so why should they prescribe the regu 
 lations ? It sounds like good sense and good ethics to turn the water 
 powers over to the states in which they are situated. 
 
 I have briefly adverted to these well-known features of the 
 conservation question. Whether the view I have expressed be ac- 
 cepted or not, I want to add that these matters are, after all, of 
 relatively small importance. There is a broader conservation that 
 applies with particular force to the mineral industry. Conserva- 
 tion means saving, and s'aving means the elimination of waste. The 
 waste in mining is something frightful and, unlike the waste in for- 
 estry, it cannot be replaced or restored. 
 
 Waste in Coal- Mining. 
 
 I have heard it claimed that in coal mining fifty per cent of 
 the coal is left in the mines, and therefore wasted. Manifestly, 
 the reason is that it does not pay to mine cleaner, and so the waste 
 goes on. The value of the coal production of the United States in 
 1909 was $555,000,000. According to this, we are wasting over 
 half a billion dollars' worth of coal every year. I submit that here 
 is a field for conservation that makes our ordinary ideas of the sub- 
 ject dwindle into insignificance. But the loss does not end here. 
 To convert coal into power, by means of boilers and engines, is no- 
 toriously wasteful. Engineers tell us that engines only deliver from 
 five to ten per cent of the energy that is contained in the coal. Think 
 of the benefit that would accrue to mankind from a conservation 
 that would reverse the figures, and enable us to use ninety-five per 
 cent and lose five, instead of using five per cent and losing 
 ninety-five ! 
 
 Similar examples can be cited from other branches of mining 
 gold, silver, copper, lead, zinc. In many mines large quantities of 
 ore are lost through lack of skill in extracting it. In others, im- 
 mense tonnages are left standing because the ore is too low grade 
 to be profitably worked by the methods in use. Conservation here 
 means the development of improved mining and reduction methods, 
 and the dissemination of knowledge so that efficient methods will 
 be used. 
 
 After the ore is mined, there comes the metallurgical loss^ 
 which is often greater than the mining loss. At the great gold 
 mines of the famous Mother Lode, in California, the average re- 
 
132 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 covery probably is not above eighty per cent of the assay value of 
 the ore. It would cost more to get the other twenty per cent than 
 it is worth, so it is thrown away. Some of our greatest copper 
 mines, which have plants that are pointed out as marvels of human 
 skill and ingenuity, do not save over seventy per cent of their min- 
 eral, sometimes because no better work can be done by concentra- 
 tion, and sometimes because they can make bigger dividends by 
 crowding through big tonnages with an indifferent extraction, than 
 by treating a smaller tonnage and getting the maximum possible 
 extraction. 
 
 In lead and zinc concentrators the same terrific losses are con- 
 stantly recurring. When a miner ships a car of ore to a smelter, if 
 the assay shows that the ore contains zinc, not only does the smelter 
 refuse to pay for the zinc, but it charges the miner a penalty be- 
 cause it is present. These things cause no comment, since it is 
 the best that can be done by known processes. 
 
 Metallurgical Knowledge Small, 
 
 Viewed in its laigest aspect, it must be admitted that we need 
 not be conceited about our metallurgical knowledge. Doubtless, in 
 times to come, the crudity of our present day methods will be mar- 
 veled at, after our wastefulness has forced future generations to 
 evolve a real conservation, to stop these losses, and has taught 
 mankind that, although our Mother Earth is prodigal with her gifts, 
 yet they are not inexhaustible, and are not to be thrown away, but 
 are blessings to be appreciated. Is this all idle talk, visionary, im- 
 practical dreaming? In this day of wireless telegraphy and flying 
 machines, who will dare stand up and say anything is impossible? 
 I have merely pointed out that, rapid and wonderful as our prog- 
 ress has been, we have hardly made a start. In the bright lexicon of 
 mining science there should be no such word as complacency, be- 
 cause the possibilities and not only the possibilities but the needs 
 of the future generations have no limits. Here is a policy of con- 
 servation that spells the advancement of the human race, and about 
 that there can be no disagreement. 
 
 Progress is always gradual, and generally slow. It is not to 
 be expected that we will travel very far toward the millennium in 
 our generation, but it is for us to do what we can. Every man 
 engaged in any branch of the mining industry should feel that it is 
 his duty to contribute something to the sum of human knowledge 
 and human happiness, and he will be eager to do so when he comes 
 to realize that there is no joy like the joy of creating something 
 new and valuable. 
 
PRESIDENT'S ANNUAL ADDRESS 133 
 
 A great deal can be done and is being done by institutions of 
 learning and scientific societies. I should like to pay a more ex- 
 tended appreciation to our colleges and schools of mines, because 
 they richly deserve all the praise that can be showered upon them. 
 But I want to refer especially to a subject of prime importance, 
 the National Bureau of Mines, which we claim as the child of the 
 American Mining Congress, and from which we hope for great, 
 things. 
 
 The Bureau of Mines. 
 
 The American Mining Congress for years demanded the crea- 
 tion of a Department of Mines and Mining in our national govern- 
 ment, with representation in the President's cabinet. Due directly 
 to the efforts of our organization, Congress finally created a Bureau 
 of Mines. That our efforts were successful was due to the support 
 of the distinguished guest who is to honor us by his presence during 
 our present session, and whose wisdom, high-mindedness and sin- 
 cerity of purpose we all acknowledge and applaud, President Wil- 
 liam Howard Taft. 
 
 Congress created the Bureau of Mines, but the usefulness of 
 the bureau has so far been circumscribed within very narrow limits. 
 It is true that it has been permitted to do some extremely valuable 
 work to lessen the number of accidents in coal mines, but aside 
 from that its chief work has been to test fuel for the government 
 so that when Uncle Sam wants a load of coal for the capitol at 
 Washington or for one of his battleships, he will get his money's 
 worth. No doubt this is a necessary and important function, but 
 we are not satisfied with this amount of aid for the mining industry. 
 One of the important tasks before us is to create a demand that the 
 Bureau of Mines be given a chance to do some of the things that 
 we expected of it. Give it a chance, and we have no fear that it 
 will not quickly justify itself. If we can convince our congress- 
 men and senators that the Bureau of Mines ought to have the 
 authority and the appropriation it asks for, our able and good 
 friend, Dr. Holmes, and his assistants, will promptly demonstrate 
 that the money could not have been better spent. 
 
 We believe that the Bureau of Mines ought to be to the 
 miner what the Department of Agriculture is to the farmer. When 
 the Department of Agriculture was created, it was the object of 
 much criticism and yet it is now one of the most important factors 
 in our national life, and nobody wants it abolished. I am an ardent 
 admirer of the Department of Agriculture and of the work. that it 
 is doing. So far as tangible results are concerned, I believe it is 
 
134 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 the most useful branch of our government. It tells the farmer how 
 to maintain the fertility of his soil by rotating crops ; when and 
 how to plow his land; what sort of crops to raise, and how to get 
 the highest yields; how to irrigate his land if it does not rain 
 enough, and how to drain it if it rains too much. If the farmer 
 wants to raise livestock, it tells him all about every kind, from bees 
 to beef. If he wants to know what crops would be profitable- in 
 his country, it will cite him the relative advantages of peanuts and 
 prunes, or sweet potatoes and alfalfa. If the San Jose 'scale, the 
 gipsy moth, or the cotton boll or alfalfa weevil are getting in 
 their deadly work, it will send out experts to study the pest; and 
 figure out how to get rid of it. If he is afraid the frost is going 
 to damage his fruit trees, he keeps his eye on the weather signals. 
 If his hogs get the cholera, it sends him a batch of serum, that will 
 render the live ones immune,, and it will incidentally offer a bit 
 of advice as to what to do with the dead ones. It tells the house- 
 wife how to cook the meat, how to bake bread, how to take care 
 of the milk, how to make the hens lay, what to plant in the garden, 
 how to get rid of mice, and how and why to swat the fly. These 
 and ten thousand other things have helped to increase the value 
 of farm products, and to make life more worth living. 
 
 This work is of such colossal importance that I should like to 
 explain the activities of the department more fully in another way, 
 so as to make it better understood, but such a recital would be 
 tedious. I will say, however, that the Department of Agriculture 
 is divided into nine bureaus, besides several so-called offices and 
 divisions. These are enumerated as follows : Weather Bureau, 
 Bureau of Animal Industry, Bureau of Plant Industry, Forest 
 Service, Bureau of Chemistry, Bureau of Soils, Bureau of Ento- 
 mology, Bureau of Biological Survey, Division of Accounts and 
 Disbursements, Division of Publications, Bureau of Statistics, 
 Office of Experiment Stations, and Office of Public Roads. 
 
 The Government appropriated about $17,000,000 for the Agri- 
 cultural Department in 1910. Secretary Wilson's report for that 
 year covers 156 printed pages, and concludes with the following 
 v/ords : 
 
 'The foregoing is a brief account of what the Department has 
 been doing during the past year to help farmers through research 
 and demonstration. We have been diligent to contribute toward 
 heavier crops, owing to high prices for the necessities of life, and 
 we feel justified in thinking that our efforts and those of the scien- 
 tists of the states are telling in the grand totals set forth. The day's 
 
PRESIDENT'S ANNUAL ADDRESS 135 
 
 work on the farm is accom; lishing more, and the acre is yielding 
 more. During the past year such attention has been given to demon- 
 stration in the field of what is known to advanced students, that 
 men of limited means and circumscribed condition^ might learn by 
 object lesson better methods and thereby increase their incomes and 
 also contribute to the magnitude of our crops. 
 "Science that is not applied is dead." 
 
 A Plea for the Mining Industry. 
 
 If these great things are done for agriculture, why riot do 
 something for agriculture's sister mining? Be it remembered 
 that man's every need is supplied by our Mother Earth. Out of the 
 earth's crust comes everything we eat, drink, wear or use, all our 
 habitations, conveyances, tools, and in fact everything we have, be 
 it necessity or luxury. Agriculture and mining are the twin 
 sciences that divide between themselves the work of extracting 
 these things from the earth. Agriculture has the vegetable king- 
 dom, and mining the mineral kingdom. Is there any reason why 
 agriculture should be made the favorite child of our government, 
 while mining is treated as a step-child ? 
 
 The two sciences are of equal importance, and neither could 
 exist without the other. We are not in the least jealous of the treat- 
 ment that has been accorded to agriculture. She merits it all and 
 more. We only plead that mining be likewise recognized, and 
 given her just dues. To those who argue that agriculture is the 
 more important, we say, "Pause and reflect whether any sort of a 
 civilization could be possible without the products of the mines." 
 It is undoubtedly true that no mining or any other sort of work 
 could be done without agriculture to feed the workers ; but at 
 the same time agriculture alone is helpless to advance the human 
 family in its onward march toward higher and better things. 
 
 What Alining Docs for Civilization. 
 
 Let me cite a few simple, homely examples. Does agriculture 
 want to raise a crop? Let mining first furnish the implements 
 wherewith to till the soil and harvest the grain. What sort of a 
 civilization would it be that had to plow the soil with a crooked 
 stick, and harvest and thresh with the naked hands? 
 
 When you sit down to eat a meal, agriculture furnishes the 
 food, but mining supplies the stove, and probably the fuel, to pre- 
 pare it for the table, as well as the pots, kettles, dishes and utensils. 
 How far would man have progressed if he had to eat his food 
 
136 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 raw, or had to cook it on the end of a stick over a wood camp-fire, 
 and eat it with his fingers? 
 
 Do you want to build a dwelling? Agriculture will furnish the 
 wood, but mining must provide the stones, bricks, mortar, cement, 
 plaster, the paint, the windows, the door-knobs and hinges, the 
 plumbing, the heating apparatus, the gas or electric light fixtures. 
 A sorry sort of a house it would be without the products of the 
 mines, and one habitable only by primitive savages. 
 
 Do you wish to travel from place to place ? Show me the 
 vehicle that could be constructed from the products of agriculture 
 alone, and I will show you that it represents a civilization not far 
 removed from barbarism. Your carriages, your automobiles, your 
 railroads, your flying machines would be undreamt of without the 
 materials produced by mining. 
 
 Do you wish to telegraph or telephone ? The message goes 
 over a wire provided by mining. Do you want to know the time of 
 day? A wooden sun dial is about the only conceivable time-piece 
 that agriculture could provide. 
 
 But I need not multiply examples to convince any reasonable 
 person that mining is by no means second to agriculture, but is its 
 equal in every respect. As I have said, it would be a physical im- 
 possibility to have any sort of a civilization with agriculture alone. 
 Man is the only one of God's creatures that makes use of the min- 
 eral products, and perhaps that is the index of his superiority ove r 
 all other forms of life. Mining men themselves do not always 
 fully appreciate the dignity of their calling. There is no higher or 
 nobler one in the world. 
 
 Ample Justification for Government Aid. 
 
 For these reasons we feel ourselves justified in asking for 
 more ample aid from the government. Mining operators are not 
 all millionaires. Many of them, in fact most of them, are men of 
 limited means, who are struggling along, trying to make a living 
 out of their claims. To such a man, research and demonstration 
 would be of great benefit. Experiment stations would give him the 
 information he needs, in order to work more intelligently and more 
 efficiently, just as such stations have helped the farmer. 
 
 Great corporations can employ the best and most expert talent 
 to work out their own problems, but such discoveries as they make 
 are for their own benefit, and not for the benefit of the general 
 public. An invention, such as an improved metallurgical process, 
 seldom comes as an inspiration, but is evolved out of a long, 
 tedious, series of tests that require special knowledge and training, 
 
PRESIDENT'S ANNUAL ADDRESS 137 
 
 as well as time, apparatus, and material. Manifestly the poor 
 operator can do no work of this kind, and it must be done for him, 
 just as similar work is done for the farmer. I trust I have ijiacle 
 clear both the analogy and the necessity. 
 
 In conclusion, let me say again that the American Mining Con- 
 gress aims to stand for all branches of mining. It was founded 
 by the -metal miners of the West, but we Westerners have learned 
 that the value of our metals is insignificant compared with the coal, 
 iron and petroleum of the East. We want East and West to join 
 hands, and make our organization truly representative of the min- 
 ing industry of the whole country" 
 
The Public Lands Question. 
 
 BY HON. WILLIAM SPRY, 
 GOVERNOR OF UTAH. 
 
 In discussing the question of conservation, permit me to assure 
 you at the outset that I do not come before you as an advocate of 
 the so-called State's rights phase of this important subject. The 
 public domain of this country is the exclusive property of the United 
 States, subject only to the control and disposition of Congress. The 
 National Government has acquired title to its public lands by suc- 
 cession to Great Britain, by cessions from the original thirteen 
 states and by purchase from, foreign governments. 
 
 Differing as to conditions of cession to that portion of the 
 public domain which lies north of Florida and east of the Mississippi 
 the original states were agreed in this one particular, namely, that 
 the territory thus ceded should be a common fund for the joint 
 benefit of the then members and all future members of the Union. 
 Differentiated as were opinions on the terms of admission of new 
 states, justice ultimately prevailed and territories are admitted to 
 the Union on equality of terms with the original states. 
 
 Under a reasonable construction of our constitution, the right 
 of Congress to administer and dispose of the public lands of the 
 United States as it sees fit and proper cannot be questioned. 
 
 The question of the policy of that administration, however, is 
 one upon which opinions are widely different. It is a subject of 
 surpassing interest ; if, indeed, it is not a subject of deep anxiety. 
 It is to the question of "policy" of administration and not of right 
 to administer that I shall address my remarks. 
 First Conservation Congress. 
 
 Four years ago, at the suggestion of the Inland Waterways 
 Commission, President Theodore Roosevelt invited the various gov- 
 ernors, the senators and representatives of the Sixtieth Congress, 
 and men of prominence in public affairs to confer together on the 
 conservation of the natural resources, and in May of 1908 there 
 was held at the White House the first conservation congress. 
 Called ostensibly for the purpose of considering the use and con- 
 servation of the mineral resources, of the resources of the land and 
 the resources of the water in every part of our territory, as matters 
 of vital concern to the nation as a whole and to all the people, it was 
 
THE PUBLIC LANDS QUESTION 139 
 
 reasonably assumed that the discussions would be along the line 
 of waste prevention and that from them there would be evolved a 
 policy of foresight in the administration of the public domain a 
 policy which, in its practical application, would have in view the 
 needs of the future, while adequately meeting 1 the demands of the 
 present. 
 
 This conference, for some season or other, resolved itself into 
 a more or less spectacular, \vordy exploitation of facts regarding 
 the exhaustion of natural resources. 
 
 From the modestly expressed fear that the present day wanton 
 waste of the natural resources would work a hardship on future 
 generations, the radical conservationists, supported by extravagant 
 statements as to the depletion of the timber, the coal, and the min- 
 eral supply of the nation, grew alarmed for the material prosperity 
 of the succeeding generation, and, taking advantage of a vague 
 public understanding of the meaning of conservation, soon had the 
 country on the very verge of a public resource famine, so por- 
 tentous as to demand drastic changes in the administration of the 
 public domain. Statistics were presented, which at the time were 
 unchallenged, by which it was proven that within a comparatively 
 few years the people would actually suffer from the cold for want 
 of coal, that the vast mountain ranges would be stripped of their 
 ores and precious metals, that the iron age would be a thing of the 
 past and that the present medium of exchange would have to be 
 abolished in brief, that the grea,t American republic would shortly 
 face a veritable bankruptcy of public resource. 
 
 Shrinkage in Public Resources. 
 
 I believe I am safe in saying that the pages of history fail to 
 disclose such a remarkable shrinkage in public resource, in so short 
 a time, as the shrinkage which followed in the immediate wake oi 
 this first and subsequent conservation congresses. The boast of 
 the American people that they are possessed of a nation of un- 
 equaled, not to say unsurpassed, natural resource, has been tem- 
 porarily silenced by the conservationist and the bright future has 
 been obscured by imaginary dark clouds of doubt and uncertainty. 
 
 The state executives departed from the first conservation con- 
 gress filled with conservation ideas, and with the understanding that 
 the several states were to have an influence if not a voice in shaping 
 the future policy of public land administration, promptly appointed 
 state conservation commissions, to act in conjunction with the 
 national government. 
 
140 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Time has demonstrated that there was no clear understanding 
 on the part of the states as to their participation in the conservation 
 movement. I believe I am within the fact when I say that time 
 also has demonstrated that the states have had much less to do 
 with conservation in recent years than they had prior to the first 
 Congress. The only tangible result that has come from the earnest 
 efforts of- public spirited men who enlisted their services with the 
 Utah State Conservation Commission is the accumulation of facts 
 regarding the public resources of Utah mineral, coal, water and 
 soil which establish the previous estimates of its wealth of natural 
 resources as ridiculously low, and demonstrate that the variety and 
 extent of this resource is impossible of even approximation ; and so 
 it transpires that while the national conservation advocates continue 
 to hold conferences given over largely to the discussion of resource 
 shortage, the State Conservation Commission of Utah has fallen 
 naturally and rightly into the discharge of duties 'that would 
 ordinarily devolve upon a bureau of research and publicity and it is 
 today supplying information on the bountiful natural resources of 
 the state. 
 
 Conservationists One-Sided. 
 
 The great trouble with the discussions of the National con- 
 servationists has been that they have been altogether too one-sided ; 
 too much has been said of the exhaustion of coal and too little has 
 been advanced concerning the fact that we are leaving the age of 
 steam behind us and entering on the age of electricity ; too much 
 has been said of the depletion of the timber supply, while far too 
 little has been said regarding the cement era ; too many contracted 
 papers have been presented on the exhaustion of the mineral re- 
 sources of the nation, and the mineral deposits have been grossly 
 underestimated. 
 
 I have no desire to combat statistical arguments regarding 
 mineral exhaustion with statistical arguments regarding mineral 
 wealth ; but I do desire to say in passing that Utah will place 
 mountains of the largest and choicest iron deposits in the world 
 against rows of figures on the exhaustion of the iron supply of the 
 nation ; it will place thousands of square miles of coal measures 
 against the estimated end of the coal supply measured by tons ; it 
 will meet figures on the passing of the copper output with moun- 
 tains of copper ore, and it is perhaps pertinent to here observe that 
 when the first statistics on mineral exhaustion were being presented 
 at Washington in 1908, a Utah man was perfecting his plans for a 
 new method of handling low-grade copper ore that then lay in the 
 
THE PUBLIC LANDS QUESTION 141 
 
 
 "exhausted" or non-producing zone and consequently found no 
 
 place in the elaborate statistical data, and that since his method was 
 put in operation the "exhausted area" has developed into one of the 
 greatest copper producing" camps in the world. 
 Exhaustion of Soil. 
 
 Too much has been said regarding the exhaustion of the soil. 
 I submit that soil exhaustion is a problem for conservationists to 
 handle ; but it resolves itself absolutely to an elastic policy that will 
 meet local conditions. It is perhaps true that the soils of the East 
 have been worked too steadily without sufficient fertilization; it is 
 absolutely true that in the West nature replenishes and fertilizes 
 her soils through the nutrition that comes from the everlasting hills. 
 Irrigation produces crops and at the same time conserves the 
 strength and adds to the life-giving properties of the soil.- 
 
 Mind you, I do not desire to be understood as being opposed 
 to conservation nor to wholly condemn the system of its operation. 
 I believe in the forest reserve. In our own state, for instance, I 
 have seen great watersheds rejuvenated through government 
 supervision and the water supjply regulated and purified ; but I do 
 not believe in the withdrawal of agricultural lands to be placed in 
 the forest reserves, upon which lands nature herself never pro- 
 duced trees and upon which lands human agencies will never pro- 
 duce forests. It is in these withdrawals and the withdrawals of 
 agricultural lands, because of possible oil deposits, that the hard- 
 ship lies and it is in. urging these withdrawals that the radical con- 
 servationist does his greatest mischief. 
 
 I do not believe that the conservation of the coal supply means 
 the cessation or even the curtailment of coal production. Conser- 
 vation of the coal supply resolves itself into a question of national 
 or state regulation in the matter of its production. In other words, 
 I believe it is within the range of possibility to so regulate the 
 operation of coal mines as to recover and save for useful purposes 
 a vast percentage over what is now actually mined. It is within 
 the province of the conservationist to urge, as it is within the range 
 of good business judgment to demand, that the exhaustion of one 
 particular coal claim or deposit shall not mean 'the caving in and 
 total destruction of its workings, but the saving thereof for the use 
 and benefit of the adjoining property. 
 
 Cannot Approximate Mineral Resources. 
 
 I have absolutely no sympathy for the bugaboo of mineral ex- 
 haustion. No man or set of men will assume to estimate the min- 
 
142 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 eral deposits of this nation. Not until the surface of the entire 
 United States has been honeycombed by the prospector and miner 
 will any thoughtful man attempt to approximate the mineral re- 
 sources of the nation, and then no man will have the temerity to fix 
 a limit to which the sciences may go in discovering new processes 
 of extracting and making useful the mineral deposits of Mother 
 Earth. 
 
 Now as to the policy of the administration of the public do- 
 main. First of all, bear in mind the fact that the states of the Union 
 are admitted on terms of equality. With this fact firmly established, 
 consider that the nation has operated for many years under a liberal 
 policy in the disposal of its public lands; that the broad terms of 
 this policy have been fundamentally responsible for the growth, 
 development and wealth of the great centers of the East; that an 
 empire 'within an empire, the great empire of the West, is approach- 
 ing an era of development that from all indications will eclipse the 
 wonderful growth of the East ; that the sale of agricultural lands 
 was primarily responsible for the growth in population in the East ; 
 that the development of the mineral resources added to the wealth 
 of the East, and that the use of all the bounteous, gifts of nature 
 made the East what it is today. 
 
 Because of the extravagant representations which have here- 
 tofore been mentioned, the former liberal policy of the National 
 Government has been materially curtailed ; vast areas have been 
 withdrawn from entry, particularly in the West; new and radical 
 departures in the regulations governing the handling of mineral 
 and oil lands have been adopted, while it is now urged that water 
 power sites should be withdrawn from entry. The leasing of min- 
 eral and oil lands and water power sites by the government is being- 
 considered as a method of carrying out the conservation idea. 
 Present Policy Should Not Be Pursued. 
 
 Many reasons can be advanced why such a policy of admin- 
 istration of the public domain should not be pursued. Permit .me 
 to mention briefly the most important : 
 
 Under this policy the states wherein the public domain as yet 
 lies practically in, its virgin state are deprived of that benefit that 
 accrues to the older states through the disposal of its public domain 
 and use of the natural resources. It is obvious that the develop- 
 ment which came to the older states, through the disposal of the 
 public domain to individuals, will be deprived the younger and less 
 developed states and that, while the greatest direct benefits of the 
 former liberal policy accrued to the individual states wherein such 
 
THE PUBLIC LANDS QUESTION 143 
 
 sales were made, the direct benefits not only from the sale but from 
 the development of the public lands in the Western states, under 
 the present policy, will go to all the states of the Union. 
 
 Suppose the government leases its mineral and oil lands and 
 its water power sites and remains forever vested of title, who can 
 estimate the loss in revenues from taxation that may be suffered 
 by the states wherein these valuable resources are located, which 
 revenues have for years been accruing to the older states because 
 their resources have been vested in private or corporate ownership 
 and become subject to taxation by the states a thing which it ap- 
 pears will be utterly impossible under the leasing system so long 
 as the government holds title, since government lands cannot, under 
 the constitution, be subjected to taxation. 
 
 This phase of the leasing system alone condemns it as a policy 
 in absolute violation of the spirit of equality of rights in the public 
 domain. A material factor in the growth and development of a 
 state is the distribution of the burden of taxation. Take from the 
 state its right to tax mining claims, the mineral and oil output, and 
 the power sites within its boundaries, and you rob that common- 
 wealth of a revenue that has been a source of ever-increasing in- 
 come to the older states ; and increase instead of diminish the bur- 
 den the freeholder is already called upon to bear. 
 Discussion of Leasing System. 
 
 Perhaps a legal |:xpert can enlighten you as to the power of 
 states to tax even tii net proceeds of mines under the proposed 
 leasing system from the government. 
 
 Carry the mineral leasing policy a step farther: If it is proper 
 that the pioneer prospector, the man above all who stakes his all 
 on a chance that he and his fellow men may prosper, the man who 
 invests his money, his talents, his energy, in delving after the min- 
 eral deposits of the public domain, and who, after the expenditure 
 of his means, finds a "pay streak," installs machinery, opens up a 
 vein of 'ore, which but for his persistency would have lain hidden 
 for centuries, must turn over to the federal government what he 
 has found, and if he will continue to develop it he must do so as a 
 lessee, why should not the same policy be proper in the matter of 
 agricultural lands? 
 
 In short, let the homeseeker select a piece of raw land which 
 he regards as a possible producer of agricultural products, let him 
 clear it of sagebrush, let him plow and seed the same, and, if in an 
 arid section of the United States, let him at his own expense acquire 
 and deliver to that land the water which is necessary to produce 
 
144 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 the crop, and then if the experiment is a success and he secures a 
 rich harvest, let him become a lessee of the federal government and 
 work his land, not as a freeholder but as a tenant of the national 
 government, which becomes his landlord. And I submit that if 
 we are to wait on the national government for the putting of the 
 mineral and oil and agricultural lands in condition for tenancy, fu- 
 ..ture generations will be amply provided with undeveloped resources, 
 both land and mineral. 
 
 Landlordism Autocratic. 
 
 Aside from this, landlordism has always been autocratic, while 
 tenantry has developed peoples who lack in the two most glorious 
 qualities of American citizenship loyalty and patriotism. Out in 
 the West we have been building up our country by urging people 
 to own their own homes, to own their own places of business, and 
 to own the business in which they are engaged, and it is the only 
 policy that will make toward intelligent, broad-minded, progressive 
 citizenship. 
 
 Tenantry is repugnant to the ideals of American citizenship. 
 
 While I have pronounced views on the public land policy, I do 
 not want you to regard me as a radicalist. While I do not believe 
 that under the present law the states have the legal right to a voice 
 in the administration of the public domain, other than their repre- 
 sentation in Congress, they have a moral right to insist on a policy 
 that shall be in harmony with the previous policy and calculated to 
 develop and upbuild the country. 
 
 Whether Congress should or should not transfer the control 
 of the unappropriated public lands to the respective states wherein 
 they lie, is a question upon which there is much agitation. Laying 
 that problem to one side, I do believe that the public land within the 
 boundaries of any state ; that the minerals thereof, the oil deposits, 
 the timber and the natural resources individually and collectively 
 should be administered on terms of equality in every state of the 
 Union. And there is but one term of equality; that is the dispo- 
 sition of those lands to the bona fide homeseeker, to the prospector 
 and to the miner. 
 
 Maturing States Entitled to Resources. 
 
 I believe that the Federal Government legally exercises super- 
 vision over the public domain in the entire United States, but the 
 moment the policy of that administration makes for the benefit 
 the whole of the United States at the expense of the growth, de- 
 velopment and prosperity of a state that is entitled to the same. 
 
THE PUBLIC LANDS QUESTION 145 
 
 benefits from the public domain as have been enjoyed by others, 
 the policy is in violation of the spirit of fairness and equality. The 
 fact that the resources of some of the older states have been par- 
 tially or even wholly exhausted should not for a moment argue that 
 the younger or the more conservative states should be deprived of 
 their resources. 
 
 In other words, the natural resources within the given boun- 
 daries of a state, whether vested in private, state or federal owner- 
 ship, constitute the capital upon which that particular state must 
 conduct its business, and that capital should not be impaired by 
 stagnation. In my opinion, the business of the government and 
 the business of the state is being properly conducted when the public 
 lands go to bona fide homeseekers, when its minerals are being 
 converted into the wealth of the state and the nation, and wheri its 
 waters are being used for irrigation, transportation and power, and 
 when its timber is cut to build homes, schoolhouses and public build- 
 ings. And the capital of the nation and the state and the individual 
 is being impaired when the use of these great natural resources 
 whose development creates life and prosperity is so restricted as to 
 prevent their free and unlimited development. 
 
Past, Present and Future of Copper. 
 
 BY HORACE J. STEVENS, 
 HOUGHTON, MICHIGAN. 
 
 The great copper industry of the present day is a thing of 
 small beginnings. One century ago, in the year 1811, the world's 
 production of copper was a trifle under 10,000 long' tons, an amount 
 smaller than was secured last year by any one of more than twenty 
 different mines. During the present year the great Anaconda mine, 
 of Butte, has produced, during nearly every month, as much copper 
 as was supplied by all the mines of the world, in the entire year 
 of 1811. 
 
 The Past. 
 
 Fifty years ago, in 1861, the world's output of copper was but 
 a trifle more than 100,000,000 pounds, a production that was ex- 
 ceeded, in 1910, by the Anaconda, American Smelters Securities 
 Co., and Phelps, Dodge & Co. The production of the year 1900, 
 the last of the Nineteenth Century, was just fifty times as great as 
 that of the year 1800. Should the same ratio of increase be main- 
 tained during the Twentieth Century, the output of the year A. D. 
 2000 would be 24.318,150 long tons of copper, twenty-five times as 
 much as the present production, and even a fifty-fold increase for 
 the Twentieth Century would allow an average increase of less 
 than four per cent, while the average annual increase, for the 
 decade beginning 1900 and ending 1910, was almost exactly seven 
 per cent, compounded yearly. Those who foresee a complete col- 
 lapse in the copper industry would do well to give consideration to 
 the actual figures of increase during the past. The copper industry 
 does not move forward at even an approximately steady rate, from 
 year to year, but is given to advancing by great leaps, almost in- 
 evitably followed by periods of quiescence, or even of actual retro- 
 gression. High prices for the metal stimulate production, while 
 curtailing consumption, and, as a direct consequence, output is in- 
 creased, which decreases prices, which in turn brings about de- 
 creased production, due to the inability of small and weak pro- 
 ducers to stand .the strain of low prices. Decreased production 
 again brings about high prices, and the cycle is begun anew. Much 
 the same conditions existed in the American iron and steel industry 
 for 50 years, until the formation of the United States Steel Cor- 
 
PAST, PRESENT AND FUTURE OF COPPER 147 
 
 poration, which, while unable to prevent periods of depression, as 
 its sponsors fondly hoped, has proven a wonderfully steadying 
 factor in the iron and steel market, serving the purpose of a gigan- 
 tic balance-wheel. 
 
 Grow tli. 
 
 The growth of the copper industry is best shown by the fol- 
 lowing figures of the world's production, by decades, in long tons : 
 91,000 tons in the decade ending 1810; 96,000 tons in 1820; 135,000 
 tons in 1830; 218,000 tons in 1840; 291,000 tons in 1850; 507,000 
 tons in 1860; 900,000 tons in 1870; 1,189,000 tons in 1880; 2,373,000 
 tons in 1890; 3,708,000 tons in 1900; 7,390,000 tons in 1910. The 
 influence of the electrical industry upon the consumption of copper 
 is plainly shown by the figures since 1880. The production of the 
 seventh decade of the Nineteenth Century was only 900,000 long 
 tons, or a trifle less than ten times the output of the first decade of 
 the century, while the production of the last decade of the century, 
 ending 1900, was more than forty times the output of the first 
 decade, and was more than four times as great as that of the decade 
 ending in 1870, only thirty years before. The output of the decade 
 ending 1910 was more than six times as great as the output of the 
 decade ending in 1880, and was almost exactly double the produc- 
 tion of the previous decade ending in 1900. The production of 
 copper by the world, amounting to approximately 7,390,000 long 
 tons, for the decade ending 1910, amounted to more than three- 
 fourths of the total world's production of copper for the entire 
 preceding century. 
 
 Figures of production and consumption of any given com- 
 modity in universal use may differ from year to year, according to 
 whether a surplus is accumulated, or a preceding surplus is drawn 
 upon, but over long-term periods, production and consumption 
 necessarily are the same, and, figured by decades, it is safe to say 
 that the figures of production are practically the figures of con- 
 sumption. At present there is a copper surplus, of which much is 
 heard, but to show how comparatively unimportant the present sur- 
 plus is, when compared with the figures of output for the preceding 
 decade, it may be stated that the world's surplus of copper, at the 
 present time, is slightly less than 300,000,000 pounds of finished 
 metal, or a trifle under 135,000 long tons, an amount less than 5^2 
 per cent of the total production of the decade, and equivalent to 
 only about eight weeks supply of copper, at the present time meas- 
 uring the supply either by productive capacity or by consumptive 
 demand. 
 
148 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 * 
 
 Very exact figures are available regarding production, divi- 
 dends, costs and metal prices of the mines of the Lake Superior 
 district since the first production was secured, in the year 1845, the 
 total output for that year having been only 24,880 pounds of fin- 
 ished copper. The total production of fine copper, by Lake Superior 
 mines, from 1845 to 1910, inclusive, a period of sixty-six years, or 
 two-thirds of a century, was 5,122,478,402 pounds, having a gross 
 value of $726,849,840, from which were paid dividends of $182,- 
 824,770, the ratio of dividends to gross values, for this entire 
 period, amounting to 25.1 per cent, and dividends, divided by cop- 
 per production, show average dividend payments of 3.56 cents per 
 pound. The average price received for all Lake Superior copper, 
 for this period of sixty-six years, was 14.19 cents per pound, which- 
 after deduction of dividends, leaves an estimated cost of 10.63 cents 
 per pound, for all years. By adding the figures of expenditures on 
 unproductive mines, amounting to about $60,000,000, the cost of 
 Lake Superior copper would be made almost n l / 2 cents per pound, 
 and by adding a further $15,000,000 for assessments on mines that 
 have since repaid in dividends the original assessments, the cost of 
 copper would be made about 11.85 cents per pound, leaving a net 
 margin of profit, for the entire production, of almost exactly two 
 cents per pound, plus the present aggregate value of the various 
 active mines. 
 
 Average Cost of Lake Superior Copper. 
 
 Omitting the production of mines that have not proven profit- 
 able, the average cost of Lake Superior copper, yielded by dividend- 
 paying mines, has averaged about 9.5 cents per pound, for all years, 
 and the present cost of making copper, by all of the producing Lake 
 Superior mines, probably is slightly above nine cents per pound. 
 The actual average cost of making copper, in the leading producing 
 fields, probably is between nine and ten cents per pound, at the 
 present time. Some of the newer fields, which are skimming their 
 cream, show lower costs, but it is difficult to see where the world 
 will be able to produce its copper, in years to come, at an average 
 cost materially under ten cents per pound, this figure excluding the 
 limited production of badly planned and badly managed mines, 
 which yield only a small fraction of the total copper output, but 
 secure their metal at an average cost very much higher than the 
 average cost of all mines. 
 
 For the immediate future, the supply of copper in sight is fully 
 adequate, and no unduly high prices need be anticipated, but the 
 figures clearly foreshadow another boom period, within the next 
 
PAST, PRESENT AND FUTURE OF COPPER 149 
 
 two to four years, at which time the alarmists will be as badly 
 scared, for fear that the copper supply is petering out, as they now 
 are for fear that the production is so much greater than consumption 
 that nothing but permanent disaster is in sight. Allowing an average 
 increase of consumption of 7 per cent yearly, the figure that has 
 ruled during the first nine years of the present century, 1 the world's 
 requirements of copper will amount to approximately 1,650,000 long 
 tons in 1920; 2,975,000 long tons in 1930, and 5,350,000 long tons in 
 1940 the latter named year, now only 29 years ahead, calling for a 
 copper output almost six times that of the present rate. Twenty- 
 nine years ago, or in the year 1882, the world's production of copper 
 was 181,622 tons, or about one-fifth of the present output. Allow- 
 ing for even a five-fold expansion during the next three decades, to 
 correspond with the five-fold expansion in the three decades past, 
 the world's copper requirements in 1840 will be more than 4,500,000 
 long tons. Should the ratio of increased production and consump- 
 tion remain at an average of seven per cent for the balance of this 
 century, the world would yield and consume, in the year A. D. 
 2000, about 175,000,000 long tons of copper, a quantity of the red 
 metal more than double the tonnage of the world's present produc- 
 tion of iron and steel. 
 
 The First Decade of the Twentieth Century. 
 A survey of the progress made by the copper industry during 
 the first decade of the Twentieth Century, now lacking only a few 
 weeks of completion, shows no revolutionary changes, but does 
 show steady and in some cases phenomenal progress, in nearly every 
 division of the industry. In the matter of mines, the old districts 
 of Butte and Lake Superior remain the largest producers, but 
 Arizona, with a half dozen important copper fields, passed Montana 
 in output in 1908, though again taking second place in 1909. In 
 copper mining, the most important development of the decade has 
 been the making of the so-called porphyry mines, in which dis- 
 seminated copper sulphides are mined from chistose or porphyritic 
 country rocks. The development of such important new producers 
 as the Utah Copper, Nevada Consolidated, Miami and others of 
 this class, has alarmed many people, who jump to the conclusion that 
 the so-called porphyry mines must close down the older mines, 
 developed on veins in Butte and other camps, and on the stratified 
 trap beds of Lake Superior. There is no real occasion for this 
 alarm, as the porphyry mines, while highly important, are not apt 
 to be developed in large numbers. In fact, the entire western part 
 of the United States has been scoured, by the keenest and strongest 
 
150 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 aggregations of capital in the copper business, for promising coun- 
 try-rock deposits, with a net result, to date, rather insignificant in 
 the number of properties developed, though highly important in 
 output secured already, and even more important in promise of 
 future production. When the Mesaba iron range was opened, 
 eighteen years ago, a similar wave of pessimism swept over the 
 mine-owners of the older iron ranges in Michigan and Wisconsin, 
 but time has proven that the high-grade ores of the Mesaba, capable 
 of being mined by steam-shovel, at wonderfully low costs, are 
 absolutely necessary in furnishing an adequate supply of ore to the 
 iron and steel works of this country, and similarly it will be found, 
 as time passes, that the production of the porphyry mines is abso- 
 lutely essential in supplying the copper needed by the world, at any- 
 thing like a fair figure to the consumer. Processes of actual ore 
 extraction have been modified and improved, in many fields, with 
 a resultant increase in safety to miners, and decrease in cost of ore 
 extraction. The steam-shovel has come to stay, in copper mining. 
 Mines Slo^v to Adopt Electric Power. 
 
 Strange to say, the copper mines, which are vitally interested 
 in extending the use of copper, were somewhat slow in adopting 
 electric power, but rapid progress has been made in this direction 
 during the past decade, and all of the mines of Butte are now elec- 
 trified, while there has been a great increase in the use of electric 
 energy in the Lake Superior district. The constantly increasing 
 use of hydro-electric power is now restrained, and further restraints 
 are threatened, by the conservationists. The newly adopted system 
 at the Anaconda mine, in Butte, which combines the utilization of 
 hydraulic, electric and pneumatic power, offers great possibilities 
 of pliancy and economy, and the lead of the Anaconda is likely to be 
 followed by many other important mines. 
 
 In ore reduction, material progress has been made in concen- 
 tration, the very general adoption of Wilfley tables and similar 
 devices permitting the saving of fines previously wasted. Hydraulio 
 classifiers, settling tanks and a variety of ingenious devices for the 
 saving of the uttermost mineral values', have aided in this work, and 
 are now found in most important mills. Slimes, previously wasted, 
 are now carefully collected in slum-ponds, and reworked ; with an 
 aggregate yearly extraction of many millions of pounds of copper 
 formerly wasted. 
 
 Perhaps the most striking progress made during the past 
 decade, in any division of the copper industry, has been in smelting. 
 No new principles have been adopted in either reverberatory or 
 
PAST, I'kKSEXT AND FUTURE OF COFFER 151 
 
 blast-furnace work, but reverberatories of a gigantic size hitherto 
 unknown have been adopted at many plants, while even more strik- 
 ing progress has been made in the capacity of blast-furnaces. Ten 
 years ago, a 3OO-ton blast-furnace was considered exceptionally 
 large, and near the possible maximum of size, but the Washoe 
 works of the Anaconda Copper Alining Co., again blazing the way, 
 now have two furnaces, each 56 inches by 51 feet in size, with a 
 maximum daily smelting capacity of 1,800 tons each, and a third 
 furnace that is 56 inches wide and 87 feet long at the tuyeres, this 
 mammoth furnace actually having smelted 3,100 tons within 24 
 hours. It has been my privilege to see this great blast-furnace 
 with smelting in progress at the western end, while the eastern end 
 was frozen, and repairs in progress within the bosh. 
 
 The past decade has been a further extension of the electrolytic 
 process of refining, and the great bulk of the world's copper now is 
 refined by electrolysis. In fact, very little finished copper, other 
 than electrolytic, reaches the market, except from the Lake Superior 
 mines, the product of which commands a premium by reason of its 
 extra toughness and superior adaptibility to drawing and stamping. 
 With depth, many of the Lake Superior mines have shown a 
 marked increase in arsenic, and for this reason a considerable part 
 of the Lake Superior copper now is refined electrolytically, and sold 
 as electrolytic and not as Lake copper. 
 
 Combines and Mergers. 
 
 At various times in the past efforts have been made at copper 
 corners, but these have proven uniformly unsuccessful. The first 
 copper corner was by the Associated Smelters, of Swansea, and 
 might be termed the original copper trust. The Associated Smelters, 
 which flourished from 1840 to 1860, were most arbitrary in their 
 operations, buying cheaply, selling dearly, and zealously guarding 
 their smelting processes. As a result of the very short-sighted 
 policy of screwing prices of ore and matte to the lowest possible 
 figures, while selling the finished product at the highest possible 
 prices, with the ore producers aggravated by arbitrary charges for 
 draftage and moisture, and the further grievance of unfair assay 
 methods, the mine-owners were led to build independent smelters 
 at and near the mines, in most of the principal copper producing dis- 
 tricts, these effectually destroying the power of the Associated 
 Smelters of Swansea as the arbiter of the copper industry. 
 
 The second attempt at a copper corner was made by the 
 Societe des Metaux, of Paris, under the leadership of M. Secretan, 
 the Societe des Metaux becoming, in February, 1887, one of the six- 
 
152 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 teen underwriters that organized the Syndicat Secretan, with a 
 nominal capitalization of $13,587,000. This syndicate contracted 
 with the leading copper producers for their output, and speedily 
 advanced the price of the metal to 17$ cents, effecting an increase 
 of more than 50 per cent in price within one month. Consumption 
 immediately declined to a low figure, and the Secretan Syndicate 
 borrowed enormous sums, to carry its rapidly accumulating copper, 
 from French, German and English banking houses, the Comptoir 
 d'Escompte of Paris alone lending the enormous sum of $33,368,000 
 to the Syndicat Secretan. This corner broke early in 1889, after 
 about eighteen months existence, and in a single day, in the spring 
 of 1889, the price of copper dropped from 70 down to 35 per long 
 ton. About four years were required to clean up the wreckage 
 remaining from this ill-advised corner, and put the copper industry 
 soundly on its feet again. 
 
 The third attempt at a copper corner was made in February, 
 1889, by the organization of the Amalgamated Copper Co., which 
 corporation maintained the price of copper, arbitrarily, at 17 cents 
 per pound, until October, 1901, when an accumulation of 200,- 
 000,000 pounds of metal compelled a break that took the price of 
 copper down to about 12 cents a pound, and about three years were 
 required by the industry to recover from the effects of this corner. 
 
 The price of 26*4 cents per pound, reached in March, 1907, 
 by Lake copper, was not the result of any corner, but came about 
 through an ill-advised scramble by consumers, who feared that 
 they could not secure the metal. As a result of the high price, con- 
 sumption was curtailed sharply in all directions, as happens in- 
 evitably under such unsatisfactory price conditions, and the cop- 
 per industry of the world still suffers from the existence of a sur- 
 plus of slightly under 300,000,000 pounds of metal, remaining from 
 a surplus that, including both visible and invisible supplies, reached 
 about 450,000,000 pounds at the end of 1909, since which time there 
 has been a small but steady decrease in surplus from month to 
 month. 
 
 Tendency Towards Larger Units. 
 
 The tendency in copper mining, as in all other branches of in- 
 dustry, is toward combination in ever-larger units. This tendency 
 is based upon and governed by purely econpmic laws, and the laws 
 of political economy are so much stronger than any law ever de- 
 vised by a parliament, or any ukase ever promulgated by a despot, 
 that it requires no spirit of prophecy to forecast the ultimate out- 
 
PAST, PRESENT AND FUTURE OF COPPER 153 
 
 come of the present clash between the laws of political economy and 
 the laws of Congress. 
 
 In the copper industry the great bulk of production now is fur- 
 nished by about a dozen different interests. The Amalgamated 
 Copper Co. has a productive capacity of about 300,000,000 pounds 
 yearly, with an actual output last year of 223,808,546 pounds. The 
 American Smelting & Refining Co., or Guggenheim interests, have 
 a productive capacity only slightly inferior to the Amalgamated, 
 with an actual output of 174,150,000 pounds in 1910, which figure 
 will be exceeded materially this year. The production of Phelps, 
 Dodge & Co. was 116,888,070 pounds in 1910, while smelter pro- 
 duction, including custom ores treated, was 138,805,562 pounds, 
 and the sales agency of this firm handled 194,138,696 pounds of 
 copper last year. The Calumet & Hecla, with its subsidiaries, has 
 a productive capacity of nearly or quite 150,000,000 pounds yearly. 
 The Rothschild interests, controlling the Rio-Tinto of Spain, and 
 the Boleo of Mexico, have a copper output of more than 100,000,- 
 ooo pounds yearly. 
 
 The leading copper producers of the world are now operating 
 under check, a 10 per cent reduction in output having been put into 
 effect in August of last year. Under the Sherman anti-trust law, 
 this checking of production would be considered criminal, if it could 
 be proven, yet the reduction of output was absolutely, necessary in 
 order to save the copper industry from a prolonged period of utter 
 demoralization, during which scores of millions of dollars would 
 have been lost by investors, and a quarter million or more of work- 
 ingmen would have suffered severely, many of them losing their 
 jobs, and the remainder suffering severe cuts in wages. We have 
 the authority of eminent statesmen, totally devoid of business ex- 
 perience, that the Sherman act is a panacea for all ills of the body 
 politic, yet no sensible business man would do otherwise, if he had 
 the power, than to reduce production at a time when a surplus 
 product threatened not only the small remaining profits, but the 
 very foundations of the copper industry. The issue thus is drawn 
 very plainly between our present politico-criminal law and all the 
 laws of business and of political economy. 
 
 Business and Politics. 
 
 I have no connection, direct or indirect, with any copper min- 
 ing company or copper producer, except that, in a general way, I 
 have small business dealings with a great majority of the actual 
 copper producers of this and foreign countries, hence I speak with- 
 
154 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 out personal prejudice, and not as the mouthpiece of any individual 
 copper interest. 
 
 The greatest present menace to the copper industry in the 
 United States is a menace that is common to all branches of mining. 
 The entire American industry of mining is threatened by men op- 
 erating under the names of progress and reform, whose slogan is 
 conservation, but who are political economists of the Stone Age, 
 and first cousins, in mental capacity, to the Troglodytes. The con- 
 servation experts of the forest service are systematically hamper- 
 ing legitimate mining operations throughout the Western states, 
 and both law and justice are disregarded by these conservationists, 
 while the federal departments affected are governed more by rul- 
 ings than by law. Congress has made the very grave and dangerous 
 mistake of endowing the executive departments of our govern- 
 ment with the power to promulgate rulings that have the force of 
 law, and in some of the departments rulings have been put into 
 effect that not only are arbitrary and unjust, but that also are abso- 
 lutely illegal, yet the poor miner, who has complied with all the re- 
 quirements of the law, is liable to see his property, to which he is 
 clearly entitled, both by law and justice, taken from him by the 
 officials of the forestry service, under the slightest pretext, and is 
 denied access to or recourse by the courts. The most odious forms 
 of despotism can show nothing worse, in this particular, than the 
 hideous imposition under which honest miners are suffering in the 
 Western states of our country. 
 
 Anaconda and the Guggenheims. 
 
 The conservationists, many of whom might with greater truth 
 be termed conversationists, would close the Washoe Works of 
 Montana, the greatest reduction plant in the world, with a monthly 
 output valued at millions of dollars, employing thousands of men, 
 and indirectly giving employment to tens of thousands of men, 
 under the childish plea that the smelter fumes are injuring timber 
 on the federal forest reserves timber that, in a pinch, might fur- 
 nish fairly good lodge-poles for Indian tepees. 
 
 The Guggenheims are the bogey-men with which the conser- 
 vationists most frequently alarm the public. We have had it dinned 
 into our cars by innumerable patriots seeking office, and repeatedly 
 set before our eyes, in every yellow newspaper and muck-raking 
 magazine, that "the Guggenheims are stealing Alaska." As a mat- 
 ter of fact, the Guggenheims control a copper mine in the interior 
 of Alaska that is a wonder in its way, yet which cannot be rated 
 at more than a third-class property. This mine, the Bonanza, is a 
 
PAST, PRESENT AND FUTURE OF COPPER 155 
 
 sort of copper-plated gold-brick, in that an interior core of lime- 
 stone is surrounded by phenomenally high grade bornite and copper 
 glance. No competent mining man who has visited this property 
 ever has estimated the amount of ore in sight, and safely to be in- 
 ferred, as capable of yielding more than 100,000,000 pounds of fin- 
 ished copper, a total production equivalent to only one year's max- 
 imum output by any one of the six leading copper mines of the 
 world. In order to get this ore out of a wilderness the Guggenheim 
 interests have built the Copper River & Northwestern Railway, a 
 line of 195 miles length, variously estimated to have cost from 
 $13,000,000 to $25,000,000. The gross value of all the copper con- 
 tained in the Bonanza mine, taking the outside estimate of tonnage, 
 is considerably less than the lowest estimate of cost of this rail- 
 way, and the net profits derivable from the Bonanza mine cannot, 
 by the most liberal figuring, be estimated at more than $4,000,000 
 to $5,000,000. Instead of being commended for their enterprise 
 and courage in building this railway through an arctic wilderness, 
 the Guggenheims are held up to public scorn as thieves and robbers. 
 This railway cuts through workable beds of coal, but is prohibited 
 by the federal authorities from developing or using this coal, and 
 is compelled to import inferior coal from British Columbia, at a 
 cost more than double that of domestic coal, if its mining were per- 
 mitted. Not only does the railway suffer from this arbitrary ac- 
 tion by the federal government, but the 50,000 unfortunate Amer- 
 ican citizens who live in Alaska are compelled to pay double or 
 triple the price they should pay for fuel, through efforts of the con- 
 servationists, backed by the federal government, to "save" the coal 
 for some future use, at an indefinite date. It scarcely seems strange, 
 in the light of this situation, that mourning was donned in Alaska 
 \vhen the high priest of conservation reached that land, which the 
 conservationists seem to consider a sort of penal colony. The con- 
 servation of our mineral, timber and power resources should be ef- 
 fected along legal and business lines, and not under the guidance of 
 spiritualistic visions. 
 
 The reformers as these gentlemen advocate themselves, are ad- 
 vocating the government building and operation of railways in 
 Alaska, and the government ownership and operation of coal mines, 
 which is state socialism, pure and simple, and any man seriously ad- 
 vocating such a policy is a socialist, no matter what he may choose 
 to call himself. It is further advocated by the junior senator from 
 Wisconsin and his official and unofficial organs that the government 
 also should buy the Copper River & Northwestern railway from the 
 
156 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Guggenheims. Doubtless the Guggenheims will be very glad in- 
 deed to sell their railway, which is threatened by tidal floods and 
 glacial floods, with its principal bridge across ' the Copper river 
 threatened by a glacier itself, but it is difficult to see where the long- 
 suffering taxpayer will benefit by such a purchase. 
 
 The federal government already has withdrawn immense tracts 
 of oil, coal and phosphate lands, and the next step in this cleverly 
 devised socialistic propaganda will be to withdraw from entry or 
 inhibit mineral entries upon iron, copper, lead, zinc, silver and gold 
 lands. 
 
 Figures of Conservationists Ridiculous. 
 
 The pretext for past withdrawals is that our mineral resources 
 are being depleted so rapidly that there is danger of their extinc- 
 tion in the near future unless administered by an all-wise and all- 
 powerful central government, which can make no mistake and can 
 do no wrong. The figures regarding our natural resources, put 
 forth apparently in earnest by some of the leading conservationists, 
 are so utterly ridiculous that it is impossible to regard them seri- 
 ously. There is more iron ore, existing in a single county in my 
 own state of Michigan than any professional conservationist ever 
 has estimated to exist in the entire world. This is made as a plain 
 statement of fact, and those who think, to the contrary are chal- 
 lenged to impeach the assertion. 
 
 The lawless actions of the forestry bureau, which is perhaps 
 the most odious of our bureaucratic iniquities, have been of a sort 
 to arouse the alarm of all thinking men who believe in self-govern- 
 ment. Apparently it is the cunningly devised scheme of the leaders 
 of the so-called conservation movement to expropriate the public 
 lands now held by -the federal government in trust for the benefit 
 of any and all citizens who will develop them and hold these public 
 lands for the sole benefit of the bureaucrats, who will enjoy the 
 usufruct, through a carefully planned system of leases, by which 
 the water power, forests, mines and arable lands will be leased to 
 corporations that are amenable to the benevolent control of the 
 doctrinaries and to individuals who can be terrorized to conform 
 to the exactions of the bureaucracy. The opportunities for graft 
 that are contained in such a system are almost inconceivably great, 
 and, comparing their claims with their actions, the conclusion is 
 irresistible that the conservation movement, as now managed, is not 
 a genuine effort to improve the condition of the American people, 
 but a cleverly devised scheme to deprive the people of their landed 
 heritage and fix upon their necks the iron collars of serfdom, to the 
 
PAST, PRESENT AND FUTURE OF COPPER 157 
 
 end that a more gorgeously and richly endowed bureaucracy may 
 flourish upon the soil of what once was a free country. 
 
 It is said, and apparently with reason, that the spy system 
 of the United States is now the finest and most extensive in the 
 world, excelling even those of Russia and Turkey, heretofore the 
 most progressive nations in the matter of thoroughly organized es- 
 pionage. We also have the benevolent activities of an attorney 
 general who is now vigorously prosecuting the kindling-wood trust. 
 It is obvious that the shaving-paper combine and the office-towel 
 monopoly had better watch out, for their turn may come next. Why 
 does not the attorney general prosecute the labor trusts, unions, 
 which already are trusts in the meaning of the interstate commerce 
 law, existing in open defiance of the beneficent provisions of the 
 Sherman act? The answer seems obvious. The present activities 
 of the United States Department of Justice, as it is termed officially, 
 afford a spectacle for gods and men. 
 
 Business Suffering from Uncertainty. 
 
 Business throughout the United States is suffering from un- 
 certainty which has been accentuated, rather than decreased, by 
 the recent decisions of the Supreme Court, which read into the 
 Sherman act a provision that only "unreasonable" restraint of trade 
 should be punishable under the terms of this act. As Richard Olney 
 justly remarked, this leaves the Sherman law about as clear as if 
 Congress were to pass a law stating that only a "reasonable" tariff 
 should be imposed, and leave the adjustment of all duties to the 
 Supreme Court of the United States. 
 
 This nation has been made great and prosperous by the initiative 
 and enterprise of the individual, yet the theorists bid us throw aside 
 the habits and course of conduct of centuries, and depend solely 
 upon the initiative God save the mark of the bureaucrats. W T hy 
 not speak out boldly what all sensible and patriotic citizens are 
 thinking throughout this country? We are suffering from a most 
 odious form of bureaucracy, fortified by an extensive system of 
 paid spies, an organized claque, a clever press bureau, and the sys- 
 tematic support of that section of the press noted mainly for its 
 dubious motives and devious politics. Some citizens with defective 
 hearing take the clamor of this portion of the press, desirous of 
 cheaper wood pulp, for the real voice of the nation. It is time that 
 the yellow newspapers, muckraking magazines and purely political 
 conservationists were told to stand aside and permit the federal 
 government to be run once more in accordance with law and com- 
 mon sense. Some of the gentlemen who are preaching progress 
 
158 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 and conservation have combined moral platitudes with business 
 turpitude, and label their product as reform. In the name of prog- 
 ress they bid us turn our faces to the rear; in the name of conser- 
 vation of our natural resources, for generations yet unborn, they 
 forbid us to utilize the mineral power and timber resources re- 
 quired for the needs of the present generation. Their plan of state 
 ownership of mines and water powers is state socialism, very thinly 
 disguised. These men are enemies of the republic, who under the 
 specious cloak of declamatory patriotism would rob us of our right 
 to self-government. 
 
 Our worthy president takes the stand that because the Sherman 
 act is law it must be enforced rigidly, regardless of consequences. 
 If this be the case, it necessarily follows that all federal laws must 
 be rigidly enforced, regardless of consequences, and it would be 
 interesting to learn why our federal government does not enforce, 
 or even attempt to enforce, the fifteenth amendment to the Consti- 
 tution of the United States, which reads as follows : "The rights 
 of citizens of the United States to vote shall not be denied or 
 abridged by the United States, or by any state, on account of race, 
 color or previous condition of servitude." Is it possible that the 
 Sherman act takes precedence of the Constitution? 
 
Conservation and the People. 
 
 BY JESSE KNIGHT, 
 PROVO, UTAH. 
 
 This Mining Congress is convened, I take it, not only for the 
 purpose of considering the interests of the mining industry, but 
 the best interests of the American people as a whole. Coming 
 from a state that has in its advancement been freighted with diffi- 
 culties, as have many of the inter-mountain states, and assuming- 
 no knowledge but that acquired in the tough school of experience 
 of a Western trail blazer and pioneer, I must be permitted to ex- 
 press my views, as such, if at all, before this Congress. 
 
 Personally, the greatest efforts of my life have been directed 
 toward the development of the mines of the West, particularly 
 those of my own state; and as a miner I have always had great 
 hopes for the future of Utah and not only for the future of Utah 
 but for the now rapidly advancing inter-mountain states. If I am 
 to judge the future by the past, this region of which I now speak 
 still appeals to me as a land of promise. I have seen it made what 
 it now is largely by individual effort, and without government aid. 
 As the years have gone by I have observed the Western spirit 
 everywhere in the development of its latent resources until it has 
 secured, in a measure, that recognition the inter-mountain states 
 so richly deserve. We of the West have made, under very adverse 
 circumstances, a region now of great wealth. Not only that, but 
 unaided as we were, we have contributed immeasurably to the 
 wealth of all sections of our great country. Mindful of the hard- 
 ships, struggles and experiences of years that have gone before and 
 being hopeful of the future, I trust I may be pardoned if I express 
 at this time and impress upon you, some of my personal views and 
 experiences concerning governmental policy toward the undeveloped 
 resources of the inter-mountain states. I desire to speak briefly 
 of the so-called Government conservation policy. Personally, I 
 have felt the effects of conservation. 
 
 Some years ago, over on White River in our state, on what 
 is known as the Gilsonite veins, several hundred mining locations 
 had been made by mining men and American citizens in good faith, 
 under the mining laws. That these locations were valuable is beyond 
 question, and that they were situated on the public domain seemed 
 
160 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 to prompt some of the officers of the National Government that the 
 government ought to adopt some means of conservation and to 
 refuse to part with government title until the government received 
 directly some benefits thereby. Personally I was the owner of about 
 forty of these claims, on which, for five or six years, I had per- 
 formed the annual assessment labor as required under the mining 
 laws. 
 
 In the immediate vicinity of these claims, a St. Louis Gilsonitc 
 Company, a corporation, was operating similar mines and had a 
 monopoly of the gilsonite product and thereby was acquiring great 
 wealth. Individuals were not permitted to patent their claims. The 
 government in its conservation plan proposed leasing, and leasing 
 at that time meant leasing to this St. Louis Gilsonite Company. 
 Thanks, however, to certain senators and especially to the Hon. 
 Jos. L. Rawlins, then senator from Utah, and a power in the Senate 
 of the United States, by whom it was seen that conservation along 
 leasing lines of the public domain was not a true governmental 
 policy. During these years myself and others were doing all in our 
 power to comply with the mining law and to secure title to our 
 locations, but it seemed to us a hopeless task. We were finally 
 assured on every hand, so far as the government officials were con- 
 cerned, that we would never be able to do so ; in fact we received 
 that assurance not only from public officials but from this St. Louis 
 Gilsonite Company as well. Discouraged and impoverished as some 
 were in seeking to comply with the law by doing the work upon 
 these claims, the claim owners, one by one, sold their interests, and 
 I did so too, to a too well recognized American institution, a private 
 corporation. 
 
 Now the sequel of this brief story is the thing to which 1 
 especially desire to call attention. Scarcely six months had passed 
 by, after the passing of the rights of the individual mine claimants, 
 to this corporation, when the patriotic law makers of the Congress 
 of the United States saw the light and reached the conclusion that 
 those Gilsonite claims were entitled to patent, and proceeded to 
 enact such legislation as would provide an open way for the Gil- 
 sonite Company to acquire those deposits of mineral, the value of 
 which was at least millions, and which under the conservation 
 idea, had been so strenuously denied the individual citizen. 
 
 Then again in my own state when I stop to consider the vast 
 areas of coal lands, undeveloped, untouched ; and when I consider 
 how the railroads and big combines have already secured sufficient 
 coal deposits to enable them to operate without stint for fifty or a 
 
CONSERVATION AXD THE PEOPLE 161 
 
 hundred years ; and when I stop to consider the present prices that 
 are being charged the people for that product ; and when I stop to 
 consider that the conservation plan of the National government is 
 to withdraw from the market coal lands that have not already been 
 acquired, I cannot help but feel that the effect of such a policy 
 means the monopoly of the coal industry by the present railroads 
 and combines and the prevention of competition on the part of the 
 individual citizen therewith; and that conservation along. these lines 
 means the enslavement of the Western people and the retardment 
 of growth of the whole inter-mountain region. 
 
 Then again the conservation idea as a governmental policy is 
 being directed to the possibilities for the development of power 
 and light that may be generated by the utilization of the waters 
 of the public domain. This governmental plan of withdrawing 
 these rights so that they may not be acquired by individuals, and of 
 leasing them, appeals to me as being wholly in the interests of those 
 favored corporations that have already acquired the best and most 
 favorably situated power sites that are to be had, and that the in- 
 dividual citizen if he is to compete with these companies and de- 
 velop these resources must enter this field not only under the dis- 
 advantages that now obtain, but that he cannot secure any perma- 
 nent rights and must submit to becoming a tenant under limitations 
 that would render his investments hazardous. Not only must he 
 pay to the government a rental in an amount that in my judgment 
 would insure failure on the part of his undertaking in order to be- 
 come a competitor to the already too favored monopolies operating 
 in this field, but he must spend his capital on the less favored, least 
 desired and more expensive projects. If a policy such as this means 
 conservation, then it means that the waters of the public domain 
 must continue to waste until such a time as they may be utilized 
 by those who are to be accorded the superior advantage of a posi- 
 tion calculated to ruin every public-spirited individual who may 
 enter the field against them or any competitor who will be so ven- 
 turesome as to place his money against them under these adverse 
 conditions. Why conserve the waters of the public domain that 
 can be utilized for the development of power, heat and light? If 
 the government wishes to conserve, it should be borne in mind that 
 running water, unless utilized, is waste; if utilized, it produces 
 power, heat and light, thereby conserving coal and the oil of the 
 earth from consumption and preserving them for the generations 
 to come. 
 
162 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Personally, I desire to see the vast resources of the West de- 
 veloped along lines that will render its fields of operations competi- 
 tive, that will not require contribution on the part of the people 
 to a favored few; on lines that will enable the West to thrive and 
 grow in accordance with true Western spirit and enterprise ; and on 
 lines that no one shall be thwarted by special legislation calculated 
 to subject him to inequality in the grand march for future advance- 
 ment. Personally I know of streams of water in the high mountains 
 that are either under the reservation act or taken off the market 
 entirely where it is almost impossible for coal to be hauled. 
 
 It seems to be in cases of this kind it is absurd to say they 
 shall not be used. 
 
 We would even make reservoirs above these little plants that 
 would hold back waste waters and bring more land into cultivation. 
 
 All these steep mountain streams in the West can be used for 
 power and drop back into their natural course without being a 
 hindrance to irrigation in any sense. In other words, the reservoirs 
 that would be built to protect these plants in times of low water 
 would of necessity help the lands that have no water in time of need. 
 
 Our forefathers fought to avoid being leasers. They believed 
 in the principle of individual ownership and rights. They believed 
 in the principle of equality and bled and died for it. Let us keep 
 and preserve our inheritance so costly acquired, and preserve, if 
 we can, that individual independence along commercial lines that 
 will not mean government conservation for the favored few. 
 
Mining As An Investment. 
 
 BY JOHN HAYS HAMMOND, 
 NEW YORK CITY. 
 
 The recommendation made by President Taft and Secretary 
 Fisher with reference to the leasing by the Federal Government of 
 the coal lands within the public domain, especially the Alaskan coal 
 deposits, will, I am sure, meet with the hearty approval of the 
 American Mining Congress. I speak confidently as to this because 
 of the fact that in 1905 I was one of a committee appointed by 
 President Roosevelt to suggest revisions in our Federal mining 
 law. We gave considerable study to coal mining, and unanimous- 
 ly recommended in our report that in the future the government 
 should not sell, but should lease, its coal deposits. But unfortu- 
 nately, for some one of the many inscrutable reasons responsible 
 for the materialization of recommendations of this kind, no definite 
 action was taken by the authorities in Washington to whom our 
 report was submitted. 
 
 Our lamented friend Mark Twain once described a mine as 
 "a hole in the ground owned by a liar." I strongly suspect that he 
 was influenced in thus stigmatizing a mine by having dropped money 
 into some "hole in the ground" during his tenderfoot days in Ne- 
 vada. Unfortunately this definition has gained wide currency and 
 tias been accepted by way -of consolation by those who have had 
 similar unfortunate experiences in their mining investments. 
 
 Now, I have always resented this imputation against the in- 
 tegrity of the honest miner, but in a spirit of compromise have been 
 willing to accept the amended definition of a mine as "a hle in 
 the ground owned by an optimist." The miner is by nature an 
 optimist. It is that optimism the hope that springs eternal in the 
 miner's breast which has inspired him with that indefatigable en- 
 ergy and indomitable pluck that has made the miner the pioneer of 
 civilization, and I submit to you gentlemen that such characteris- 
 tics are incompatible with anything but honesty of purpose. 
 
 Take the case of old Jim Wardner, for whom the town in the 
 famous Coeur d'Alene district of Idaho has been named. Not even 
 his bitterest enemy has ever accused Jim of being a liar ; nor have 
 his most loyal friends ever denied that he was an irrepressible op- 
 timist ! The career of Jim Wardner, in common with that of many 
 old-time mining- prospectors, was characterized by vicissitudes. 
 
164 PROCEEDINGS AMERICAN MIXING CONGRESS 
 
 Jim was alternately a millionaire and a bankrupt. At the time of 
 which I speak Jim was in the latter predicament. Meeting a mutual 
 friend on the street one day, he asked for the loan of two hundred 
 dollars to enable him to continue sinking a shaft upon a quartz vein 
 he had recently located. In return, Jim offered to give his friend 
 an interest in the property, and held out the lure by telling him 
 that he was on the edge of a great pay shoot of ore very similar to 
 one of the famous ore bodies that Jim, himself, had discovered in the 
 celebrated Bunker Hill and Sullivan mine. "I feel sure," said Jim, "of 
 all formations, and that I am within three feet of a million dol- 
 lars." Jim obtained the two hundred dollars, and his friend did 
 not see anything of him until several months afterwards, when he 
 accidentally met him on the street. "Well," said he to Jim, "how 
 is the mine getting on ?" "Well," replied Jim, "the last time I saw 
 you I told you that I was within three feet of a million dollars. 
 Now I am sorry to say that the result of my work in the shaft 
 makes me believe that I am at least a million feet from three 
 dollars." 
 
 Reverting for a moment to the subject of holes in the ground 
 and I myself have had considerable experience with holes in the 
 ground, having dug many and having myself fallen into some of 
 them if the term "liar" is to be regarded as inseparable from a 
 hole in the ground and for my own part I do not think it is I 
 would offer the definition of a mine as "a hole in the ground sold 
 to gullible investors by a lying promoter," and that is where I have 
 found in my experience that most of the lying connected with min- 
 ing comes in. 
 
 Now, all this is by way of preface to the consideration of min- 
 .ing investments. 
 
 9 Unscrupulous Promoter Should Be Eliminated. 
 
 While I fully recognize its achievements in the past, and while 
 I keenly sympathize with its present earnest endeavors, I never- 
 theless am of the opinion that by far the best service that the Ameri- 
 can Mining Congress could render to the mining industry and the 
 investing public would be to exert its powerful and far-reaching 
 influence in behalf of honest mining finance. There is no use trying 
 to blink facts ; there is more downright swindling in mining than 
 in any other legitimate industry, and especially is this the case in 
 boom times. Unfortunately the losses in mining usualy fall upon 
 those who can ill afford to sustain such losses. 
 
 There is not only the opportunity, as I have said, but, in my 
 opinion, there is a duty to be performed by the American Mining 
 
MINING AS AN INVESTMENT 165 
 
 Congress in this connection. I believe that by energetic co-opera- 
 tion with other organizations that have the welfare of legitimate 
 mining at heart the unscrupulous promoter could be eliminated and 
 the public educated as to the nature of mining investments. Indeed, 
 this question would, in itself, tend to the suppression of frauds in 
 mining. Drastic legislation is required in connection with the 
 flotation of mining companies and, indeed, this applies to many 
 other industrial companies to compel them to publish before the 
 flotation of the companies reports of reputable engineers to state 
 the price at which the properties were acquired by the vendors, 
 the amount of the promoter's commission, etc. This is the English 
 law, and it works well there. Furthermore, mining companies, 
 after they have been floated, should be compelled by law to issue 
 full monthly and annual reports as to the financial status of the 
 company, the ore reserves, the condition of the lowest development 
 in the mine, etc., etc. If the pure food and drug act could be ap- 
 plied to mining, so that the investor would be able to ascertain the 
 ingredients of a mine, much poisonous stock would be withdrawn 
 from sale, and honest enterprises would find more money for their 
 development. 
 
 "Ten Commandments " for Investor. 
 
 First of all, the subject of mining investments should be given 
 authoritative and wide publicity, and the following essential facts 
 impressed upon the public : 
 
 First, that a mining investment should not be made by anyone 
 to whom the loss of the investment would involve serious financial 
 distress. Second, that there is an important distinction between 
 investments in mining- prospects (which are of a highly speculative 
 character) and investments in well-developed mines. Third, that 
 an investment in a mine differs from other investments in one 
 vitally important particular that is, the life of a mining investment 
 is relatively a short one, and, therefore, the higher rate of dividends 
 paid does not, in itself, justify the investment. 
 
 To this general admonition I would subjoin the following 
 mining "Ten Commandments," under a caption "Dont's." 
 
 First, don't invest your money in a mining property solely 
 because a friend of yours even if he be a blood relation became 
 rich through some fortunate investment in mining 1 stock. 
 
 Second, don't, on the other hand, be deterred from investing 
 in a mining property because another less fortunate friend became 
 bankrupt through some other mining investment. 
 
 Third, don't allow any insinuating not to employ the shorter 
 and uglier term promoter or mining stock broker to make you 
 
166 PROCEEDINGS AMERICAN MINING .CONGRESS 
 
 forsake your natural modesty and convince you that because of 
 your success, in your own line of business you are yourself com- 
 petent to determine the value of a mine. Many men of business 
 ability in their own lines have made trips of self-deception to see 
 for themselves the valuable investments offered them. Motto : 
 "Shoemaker, stick to your last." 
 
 Beivare Rich Specimens. 
 
 Fourth', don't be influenced in your desire to purchase mining 
 stock by the "rich specimens" that the mines have produced, even 
 though you yourself have seen such "specimens" in the mine. 
 "Specimen rock" of this kind is no criterion of the average grade 
 of ore upon which the success of the mine depends. A well-known 
 mining capitalist of a former day was shown some very rich speci- 
 mens of ore from a certain mining property and asked his opinion 
 as to the value of the property. His reply was: "You might as 
 well show me the hair from the tail of a horse and ask me how fast 
 that horse can trot." 
 
 Fifth, don't buy stock in a mine because it has produced a 
 profit of millions of dollars in the past, for obviously the mine is so 
 much the poorer for the millions already extracted. 
 
 Sixth, don't purchase stock in a mine because it is in a far-off 
 country, even though "distance lends enchantment to the view." 
 As a matter of fact, remoteness and inaccessibility of a mine should 
 rather make one hesitate to invest. 
 
 Seventh, don't buy stock in a mining company solely because 
 it adjoins another mine of great value. This may be interesting 
 but it is by no means conclusive as to the value of the mine in 
 question. 
 
 Eighth, above all, don't buy stock in a mine unless you have the 
 unqualifiedly favorable report made by a mining engineer of in- 
 tegrity, ability and experience, and one who has made a success in 
 the investment of money for his clients. An engineer may have the 
 best obtainable technical training, supplemented by considerable 
 practical experience, and yet lack certain qualifications in his pro- 
 fessional constitution that determine success or failure. 
 
 Ninth, don't buy stock in a mine unless you are sure that the 
 board of directors are honest and competent because honest and 
 capable management is just as essential to success in mining as it 
 is in other enterprises. 
 
 Tenth, in short, don't abandon all your good common sense 
 just because the investment happens to be one in mining and not in 
 some other class of industrial securities. 
 
MIXING AS AN INVESTMENT 167 
 
 Now, these remarks are made in no pessimistic spirit, for there 
 is no keener optimist within the bounds of reason than I myself as 
 to the profitableness of mining investments. The suggestions I 
 have made are for the protection of the honest investor and in the 
 interest of honest mining. 
 
 While in these remarks I have held out to you the red flag of 
 danger, nevertheless, when the track is clear and in good condition, 
 I have great faith in the safety of mining investments. And speak- 
 ing with a proper appreciation of the importance of this statement, 
 I have no hesitancy in expressing the opinion that, conducted upon 
 the right basis, and when extended over many operations, there is 
 no business more attractive and more safe than that of mining. 
 
Importance of the Malm Process in the Metallurgy of Complex 
 
 Ores. 
 
 BY A. G. BROWNLEE, 
 IDAHO SPRINGS, COLORADO. 
 
 Before the practical application of cyanide of potassium (K. 
 C. N.) to the recovery of gold from its ores, profitable operation 
 in the gold mining industry was confined to the treatment of such 
 ores as were rich enough to stand the abuse and waste then preva- 
 lent under less efficient methods of extraction. The truth of the fore- 
 going statement is sufficiently well established to not require repe- 
 tition of technical details that are now well understood. However, 
 the radical and welcome change in the profit producing capabilities 
 of the gold mining industry, brought about through the discovery of 
 the cyanide method, had proved of such economic importance that 
 a brief review of its history may be repeated with profit : 
 
 Over two hundred years ago (1704) the chance manipulation 
 of impure chemicals resulted in the formation of the first cyanogen 
 compound known as "Prussian Blue." The accidental discovery 
 was made by Diesbach, a color manufacturer of Berlin, who never 
 understood or realized the importance such a discovery would lead 
 to in the science of metallurgy. Diesbach's interests were centered 
 in the dye industry. 
 
 Without entering into details of subsequent discoveries and 
 new knowledge acquired, the foundation of which was the chance 
 manipulation mentioned, it may be stated that it was not until 
 seventy-eight years later that Scheele determined the composition 
 of the compound, and succeeded in obtaining an acid from it which 
 he named "Prussic Acid," a virulent poison. 
 
 That gold was soluable in potassic cyanide was known to 
 Hagen as early as 1806, and in 1844 Eisner stated that gold and 
 silver could be dissolved in potassium cyanide without decomposi- 
 tion of water, and also that the dissolution of the metals was in 
 consequence of the action of oxygen, which, absorbed from the air, 
 decomposed part of the cyanide, thus forming a double salt-auro- 
 potassic cyanide, which is recognized and known as "Eisner's 
 Equation," as follows : 
 
 2Au + 4 Kcy + O + H 2 O = 2AuKcy 2 + 2KOH. 
 
 Four years before Eisner's valuable contribution to the subject, 
 Elkington proclaimed that K C N,./>/iw electricity, would dissolve 
 
THE MALM PROCESS 169 
 
 gold and three years later (1843) Prince Bagration of Russia set 
 forth the fact that K C N alone, without electricity, would dissolve 
 gold. That able scientist also contributed further valuable informa- 
 tion to the subject which up to that period remained quite obscure. 
 Elkington probably macte the first practical application of K C N 
 as a gold solvent. He patented the operation of electroplating in 
 1840, the process being the same that is used today, with but slight 
 modifications. 
 
 For some time after the important work of Eisner in 1844, 
 strong solutions of cyanide were used, and it remained for Dr. 
 Henry Wurtz to announce in 1866 in the American Journal of 
 Science that weak solutions would also dissolve gold. This was a 
 revelation of the first magnitude in economic metallurgy, and Julio 
 Rae of Syracuse, N. Y., was the first to profit by the increased 
 knowledge of the subject. He applied for a patent covering the 
 use of cyanide in ore treatment using agitation to hasten the action, 
 and the patent was granted in 1867. Rae's process, however, was 
 never put to commercial use, and the same remark applies to in- 
 ventions of others along similar lines which followed in rapid suc- 
 cession, including the more important work of Simpson of Newark, 
 X. J., who obtained a patent in 1865 for separating gold and silver 
 from their ores by the use of cyanide, using an alkali to correct 
 acidity, and precipitating on zinc. 
 
 Simpson's claims covered the ground fairly well, nevertheless 
 they brought forth adverse criticism from rival scientists who ques- 
 tioned its commercial value on account of the high cost of the salt 
 used, its instability, poisonous nature, etc. Notwithstanding such 
 criticism, the various steps chronicled, which are only a few of the 
 many that were taken incited other chemists to further work on 
 various cyanite methods which culminated in the English patents 
 granted MacArthur and Forrest of Glascow in 1887, the validity 
 of which were disputed except in so far as they applied to the pre- 
 cipitation of gold from cyanide solutions by zinc filaments, a strong 
 legal fight being made by the inventors to establish the basic claim 
 of originality in the use of weak solutions as having a selective 
 action for gold over the base metals in the ore. 
 
 It is not intended to extend these notes to a discussion of the 
 worth, merit or validity of the many patents that were granted in 
 this and other countries, covering claims that were made by the sev- 
 eral inventors named, or of important claims of other inventors not 
 mentioned, otherwise this condensed review would develop into a 
 book, the existing literature on the subject of which has already ex- 
 
170 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 panded into a fair sized library which may be consulted in detail. 
 Neither is it thought wise to encumber this statement with the 
 details of operation as now practiced in perfected methods of 
 cyanide treatment the development and use of which is directly or 
 indirectly responsible for a fourfold increase in the world's pro- 
 duction of gold since the adoption of the MacArthur and Forrest 
 methods less than twenty-five years ago. 
 
 The- inventions for this process have been many, but the sub- 
 stantial improvements have been few ; the process is recognized as 
 the mpst valuable advance in the metallurgy of precious metals 
 which the world has known,, due to the basic principle of getting 
 gold into solution through the agency of an inexpensive solvent. 
 That is the triumph of the art, for by such means control of opera- 
 tion and high recovery of metal value is obtained, which was there- 
 tofore unsatisfactory if not impossible in other processes. 
 Development of Cyanidation Process Gradual. 
 
 The history of the slow and measured steps preceding the ulti- 
 more development of cyanidation, commencing with a chance dis- 
 covery, and its dilatory adoption in the art of metallurgy should 
 lend encouragement . to present research work along similar lines 
 with a view of demonstrating that like methods may be made appli- 
 cable to the base as well as to the precious metals. It is something 
 important to know that a fundamental basic arid economic principle 
 has been discovered even if the details of manipulation remain to 
 be supplied in extending its usefulness, for any process that is 
 sound in theory ought to successfully be put into practical use, and 
 the history recited of the cyanide process, which was first skep- 
 tically received, then ridiculed beyond reason, investigated grudg- 
 ingly, but finally adopted and successfully operated, should teach 
 a lesson that should not be forgotten in the future consideration of 
 other methods that have for their object the brushing away of the 
 cobwebs of metallurgical ignorance and prejudice which too often 
 dominate selfish efforts in last endeavors to bolster up and retain 
 antiquated methods that have been faithfully tried and found 
 wanting. 
 
 Years of experience and a plentiful supply of hard knocks have 
 taught the practical mine operator that it needs no Sherlock Holmes 
 to point to the fact that the great problem still confronting the 
 precious metal mining industry is not connected with our economic 
 systems of mining but with wasteful metallurgy, particularly in the 
 successful handling of our almost unlimited supply of complex or 
 so-called repractory ores. The situation cries aloud for improved 
 
THE MALM PROCESS 171 
 
 methods that will prevent further dissipation of such natural re- 
 sources, and if the new lUireau of Mines at Washington wishes to 
 add to its glory in the more important work of the conservation of 
 human life, let it next direct its attention and efforts to the conserva- 
 tion of that material so flagrantly wasted in futile attempts to save 
 adequate values from the complex sulphide ores of commerce, the 
 present treatment of which is distinguished by abuse and waste 
 that should be arrested without delay: 
 
 In the State of Colorado along such methods of practice have 
 been used so long that all the ores that were rich enough to stand 
 the abuse or which were peculiarly amenable to the methods in 
 vogue, are nearly exhausted, and a sentimental cry has gone forth 
 for the discovery of new mines, the product of which will be rich 
 enough to insure a continuation of the bad practice. And this, too, 
 in spite of the fact that in nearly all the old established camps 
 throughout the state there are almost unlimited supplies of ore 
 already at hand, developed, exposed and ready for handling, but 
 which are jiot amenable to treatment by those methods which are 
 designed for the extraction of easy money without regard for the 
 rights of the producer or the conservation of product. 
 
 The intrinsic worth of the ores referred to are as great or 
 greater in aggregate metal values than was contained in the simple 
 ores which have been exhausted requiring only a favorable method 
 of treatment to make them available and profitable, therefore, it is 
 quite plain to see that it is not more mines but improved metallurgi- 
 cal methods that are required to restore prosperity and activity to 
 our languishing industry. 
 
 The foregoing recital and remarks may appear somewhat im- 
 prudent in view of the ultimate success of cyanide methods as at 
 present established, but, unfortunately, all the skeptics are not 
 silenced. A number remain who will proclaim that they can see no 
 opportunity to extend the use of the principles referred to. With 
 such men the value of a basic principle is not understood, or their 
 judgment is warped and distorted by reason of personal interests 
 in antiquated methods which they are fearful may be disturbed by 
 new knowledge, hence their activity in trying to preserve the dark 
 ages of metallurgical mis practice. . 
 
 Ores Brought to Surface in Solution. 
 
 It is generally believed that nature brought the bulk of our 
 ores to the crevices in the earth's crust, contained in solutions or 
 vapors from which they were precipitated by reason of changing 
 temperature, influenced by local conditions and surroundings. How- 
 
172 PROCEEDINGS AMERICAN MIXING CONGRESS 
 
 ever that may be, the basic principle of getting metals back into 
 the condition (solution) from which they originated, may or may 
 not have a vital bearing in the success of subsequently recovering 
 them in metallic form, nevertheless, going back to nature's method 
 as against the artificial methods of man, however inventive they 
 may be, is a phase- of the situation that is worthy of serious con- 
 sideration. 
 
 The vital question, however, is: Will the problem be solved 
 of saving the values in our complex ores as effectively as it has 
 been solved in cyaniding the so-called straight gold ores? 
 
 The answer is : Yes, it will be for the true scientific and tech- 
 nical world has always responded to the demands of industrial 
 economy, and there is little doubt that in spite of the skeptics there 
 is enough serious talent at work to arrive at satisfactory conclusions. 
 
 Cyanide lixiviation has but one competitor, chlorination, but 
 both processes are not always adapted to the same ores, so that in 
 many cases they have distinctive fields for exploiting. The history 
 of the present status of chlorination, and of the numerous steps 
 leading up to its present high development, is not unlike the history 
 of cyanidation up to the time when the canny Scotch chemists ap- 
 plied it to practical use in ore reduction in spite of the adverse 
 criticisms that were directed against it. 
 
 As early as 1848, sixty-three years ago, Prof. C. F. Plattner 
 demonstrated the use of chlorine as an active agent for the extrac- 
 tion of gold from its ores. Plattner's method involved dead roast- 
 ing of the ores in a reverberatory furnace, then slightly moistened 
 with water and charged into vats. Chlorine gas generated into 
 another vessel was introduced at the bottom of the vat and allowed 
 to permeate the ore, converting the gold into its soluable chlorides 
 which were dissolved in water and precipitated by ferrous sulphate 
 or other suitable reagents. 
 
 This was practically the first "Chlorination Process" and its 
 importance incited other metallurgists to further research. 
 
 The use of chlorine in one form or another continued to be 
 exploited and has been the means of adding many millions of dol- 
 lars to the world's store of wealth, chiefly through its use in chlor- 
 idizing roasting for pan-amalgamation and hyposulphite lixiviation, 
 and in the vat and barrel chlorination processes, but until quite 
 recently its application has been directed and confined to the recovery 
 of gold -without due regard to the recovery of the base metals which 
 usually accompany it, the value of the base metals in many cases 
 exceeding the worth of the recovered gold. However, in spite of 
 
THE MALM PROCESS 173 
 
 the fact that it has long- been known that chlorine will break up all 
 the metallic sulphides in a complex ore, it has never been used com- 
 mercially for that purpose until quite recently, and even now only 
 in a limited way, chiefly by foreign metallurgists. Such disuse is 
 not due to want of efficiency in the agent, but to the lack of prac- 
 tical methods of manipulation in what has heretofore been regarded 
 as a difficult operation. 
 
 Contributors to ll'ork. 
 
 In a communication of this character space will not admit of 
 a detailed account of the many important steps that were taken in 
 experimental work with chlorine. Its history is almost parallel with 
 that of cyanide, besides, in view of the rejection of many discoveries 
 which proved to be commercially worthless^ but which, neverthe- 
 less, proved of scientific value in the process of elimination, even 
 a passing notice of such work must be confined to the names of but 
 a few of the principal contributors to the subject and the approx- 
 imate dates of their operations, as follows : 
 
 1848, Prof. C. F. Plattner. 
 
 1849, Dr. Dufles. 
 1857, C. F. Deetkin. 
 
 1868, Henry Tindall. 
 
 1869, Henry F. Eames. 
 
 1872, Milton H. Stowe. 
 
 1873, Joseph Kallmes. 
 1879, Ottokar Hofmann. 
 
 About this time the Mears barrel process was introduced, fol- 
 lowed by several others such as the Newberry-Vautin, Pollock, 
 Boynton, et al., involving the use of chlorine in both the liquid and 
 gaseous state, generated inside or outside of the barrel and used 
 in connection with a vacuum or under heavy pressure. 
 
 1888, Adolph Thies. 
 
 1896, Alf. Sinding-Larsen. 
 
 1902, Swinburn and Ashcroft. 
 
 1903, Maxwell and Sawyer, Baker and Burwell. 
 
 1906, William Koehler. 
 
 1907, Diehl and Koehler. 
 1003 to 1907, John L. Malm. 
 
 The importance of the work of the several metallurgists men- 
 tioned is difficult to determine, for even those who made failures 
 left warning signs in the pathway of those who followed. Thus 
 later investigators profited by example, and avoided pitfalls into 
 which they too might have stumbled. 
 
174 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 The field of metallurgical research is strewn with failures, yet 
 it is largely due to the experience and knowledge acquired in such 
 failures that successes have been evolved. Such failures are usually 
 charged to the "mistakes of science," but be it said to the credit of 
 the true scientist that while he makes failures, he is the first to dis- 
 cover and correct them, and even the mistakes are turned to profit- 
 able account in the process of elimination for after all a successful 
 invention is a growth not a creation. 
 
 Therefore, while we impatiently listen to the criticisms of the 
 skeptic who claims that any process which promises to recover all 
 the metals is entirely too revolutionary in character to merit serious 
 consideration, he must be shown that the wonderful advance in the 
 art is not revolutionary but evolutionary, and that he can no longer 
 hide behind the illogical argument that "It is too good to be true." 
 The Malm Process. 
 
 The ore is crushed to about ten mesh, is properly dried and 
 fed to a revolving tube mill, where it is subjected to the action of 
 chlorine gas. The ore is fed continuously into one end of the tube 
 mill and is discharged at the other end. The chlorine gas is ad- 
 mitted by an ingenious device without loss to the tube at the ore 
 discharge end. The ore is kept in contact with the gas long enough 
 to chloridize only from 40 to 70 per cent of the metal contents. 
 By a proper regulation of the ore and gas supplies and the 
 admission of air the temperature due to chemical reaction can be 
 controlled and adjusted. After this partial chloridization in the 
 tube mill, the ore is conveyed by an automatic carrier to a roasting 
 furnace, preferably of the multiple hearth type. Here the partially 
 chloridized ore is subjected to the action of the heat, which is fur- 
 nished by the burning sulphur. The heat breaks up the iron 
 chlorides irrespective of their condition and liberates chlorine free 
 or as hydrochloric acid, thus leaving the iron in an inert oxide con- 
 dition, thereby eliminating the iron and manganese from subsequent 
 reaction. The chlorine gas or hydrochloric acid thus liberated 
 unites with the sulphides of silver, copper, lead and zinc, forming 
 chlorides of those metals. Simple and effective means are provided 
 to prevent escape of chlorine should the same be in excess. 
 
 The ore so treated in the furnace is passed to an agitator to 
 which is added water or mill solutions. As all the reactions in- 
 volved in the process are exothermic, sufficient heat is generated 
 at this point to make possible the solution of such chlorines as lead 
 chloride. Additional chlorine may be added at this point, if nec- 
 essary, to bring the gold into solution. From the agitator in which 
 
THE MALM PROCESS 175 
 
 all the metals go into solution as chlorides, the solution is passed 
 to properly designed filter presses in which the gangue, which will 
 ordinarily consist of silica, sulphur and the oxides of iron and man- 
 ganese, is retained. 
 
 The solution containing the chlorides passes from the filter 
 presses and is agitated in the presence of metallic copper, which 
 precipitates the gold and silver, which is parted by the usual method 
 and cast into bars. 
 
 The solution from which the gold and silver has been removed 
 is decanted and agitated in the presence of metallic iron, which 
 precipitates the copper. 
 
 The solution is then agitated in the presence of metallic zinc, 
 which precipitates the lead, and, if necessary, it is agitated in the 
 presence of zinc oxide, chlorine gas and sulphur dioxide to re- 
 move ^ron, manganese or lime, which may have entered the solution 
 either on account of insufficient decomposition in the roasting fur- 
 nace or through the substitution method employed in the precipita- 
 tions referred to. 
 
 The solution after the above mentioned treatment contains only 
 zinc chloride in solution, and when this solution through successive 
 cycles has reached a sufficient concentration of zinc chloride, it is 
 passed to vacuum evaporators in which all trace of moisture is re- 
 moved, fused and run into electrolytic cells. Here the electric cur- 
 rent is applied, which deposits the zinc in metallic form and lib- 
 erates the chlorine for refuse, the entire loss of chlorine in the 
 complete cycle of operation approximating about 2 per cent. The 
 zinc cells are operated at a temperature of about 450 C., and the 
 gas escapes from the cells at a temperature approximating the above 
 figure. This chlorine gas is passed under the evaporators, thereby 
 supplying heat for the evaporation, and also partly cools the gas, 
 which is essential before reusing it in the tube mill. The various 
 precipitates of gold, silver, copper and lead are separately collected 
 in filter presses, dried, melted and cast into bars ready for ship- 
 ment. The molten metallic zinc is tapped from the electrolytic 
 cells at regular intervals and run into molds. 
 
 Simplicity Proper Word for Malm Process. 
 
 The foregoing brief outline includes operations the successful 
 manipulation of which will doubtlessly be challenged by the metal- 
 lurgist whose knowledge is limited to European difficulties and prac- 
 tice. For the information of such, it may be stated that Mr. Malm 
 does not lay claim to originality or anything new in the chemistry 
 of the process, but it must be quite plain to the student that he has 
 
176 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 devised new chemical applications and perfected mechanical ma- 
 nipulation in a marked degree to come within the scope of sim- 
 plicity thus outlined. Simplicity is the proper word which described 
 the culmination of Mr. Malm's laborious work, extending over a pe- 
 riod of several years in this country and abroad. 
 
 .Naturally he has been materially assisted by the more recent 
 manufacture of improved apparatus which has lately become stand- 
 ard in such chemical work, nevertheless he was compelled to 
 "scrap" many thousands of dollars' worth of apparatus and ma- 
 chinery before finding the article suitable to continuous usage. As 
 a typical example of the elimination of such difficulties, it may be 
 stated that in his first experimental mill, located at Corbin, Montana, 
 much fragile and delicate earthenware and porcelain apparatus was 
 used, including breakable valves, stopcocks, etc., used in conducting 
 or controlling chlorine gas. In the large commercial mill which Mr. 
 Malm is now constructing for the Western Metals Company of 
 Denver, located near the town of Georgetown, Colorado, all con- 
 duits of gas are safely and securely laid in and below the surface 
 of the* concrete working floors, and there is not such a thing as an 
 earthenware, porcelain or hard rubber valve or stopcock in the 
 entire plant. Simple oil and water-locked switches, diverted by 
 means of "U" tubes made of lead and ordinary rubber hose fitted 
 with wooden pinchcocks, solved such difficulties in an effective and 
 economical manner. 
 
 The foregoing is but a fair example of one of the several per- 
 fected and improved mechanical methods that have been devised 
 by Mr. Malm to bring the heretofore complicated operation within 
 the range of simplicity and durability. There is now no depart- 
 ment of the plant, which is very nearly completed, that cannot be 
 successfully operated by unskilled labor, superintended by one com- 
 petent manager, assisted by one skilled chemist. 
 
 The change or play between the "ic".and "ous" chlorides of 
 iron, manganese and copper are of vital importance in the opera- 
 tion, and Mr. Malm has mastered a control which not only elimi- 
 nates many difficulties heretofore encountered, but he has done it in 
 such a simple and effective manner that it appears difficult to un- 
 derstand why the discovery was not made long ago. Retrospec- 
 tion, after the thing is done, is quite simple, but it took patience and 
 skill to do the real work. The play referred to has much to do with 
 the clarification of complex solutions which have always been a 
 bugbear to the metallurgist, but the abnormally high recovery of 
 all the metals by substitution and precipitation, except zinc, which 
 
THE MALM PROCESS 177 
 
 is recovered electrolytically, clearly proves that Mr. Malm has 
 solved the problem in a very effective manner, practical in its appli- 
 cation. There are so many important details of manipulation that 
 have been simplified and made practical that space forbids a tech- 
 nical description. Suffice it to say that they have been carefully 
 examined and passed upon by independent engineers and metal- 
 lurgists of national reputation and sound judgment, who have pro- 
 nounced the complete operation as the most simple and economic 
 method that has been devised in commercial metallurgy since the 
 advent of cyanidation, over which chlorination now promises to 
 have a much wider field of usefulness. 
 
 Costs. 
 
 From sixty to seventy per cent of the cost of operating this 
 process is for electric power, depending very largely upon the metal 
 contents of the ore to be treated. Direct current at relatively low 
 pressure is used for the electrolytic work, which applies to zinc only, 
 and the consumption of power varies with the zinc, or zinc equiva- 
 lent, contents of the ore. In practice an actual recovery has been 
 made of 14.2 to 14.4 pounds of zinc per horsepower day, there- 
 fore, with electric energy at a cost of $50 per horsepower year, 
 or sixteen cents per day, the cost of converting zinc chlorides into 
 metallic bars of a premium brand would amount to but a small 
 fraction in excess of one cent per pound. Such brands of electro- 
 lytic zinc are now being manufactured abroad under chlorination 
 methods of a more complicated character. than the Malm process. 
 They are exported and sold in New York City at as high a pre- 
 mium as two and one-half cents per pound in excess of New York 
 quotations for spelter, which is an impure produce of the smelters. 
 
 It is only claimed that not less than go per cent of the values 
 of all the metals may be recovered from an ore by this process. 
 However, actual practice on a tonnage basis has shown that a much 
 higher saving may be made, and the following example of the re- 
 duction of a very difficult refractory ore will serve to illustrate the 
 recoveries obtainable : 
 
 CRUDE ORE. METAL EXTRACTION. 
 
 Assay. Price. Value. Per Cent. Weight. 
 
 0.18 ozs. gold @ $20.00 per oz. = $3.60 90 0.162 oz. 
 
 i:U)7ozs. silver .50 per oz. = 6.98 91.6 12.796 ozs. 
 
 4.78% lead @ .04 per Ih. = 3:82 97.4 93. lb?. 
 
 o.(8% copper .13 per Ib. = 1.77 99.3 13.5 Ibs. 
 
 9.00% zinc (a) .05 per Ib. = 9.no 94.2 169.5 Ibs. 
 
 Average $25. 1 7 93.68+ $23.58 
 
178 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 The average cost of handling this ore from mine to market, 
 including all charges, was as follows: 
 
 PER TON. 
 
 Mining, development, tramming and general expense $ 4.00 
 
 Entire cost of treatment 5.32 
 
 Royalty 85 
 
 Handling and loading product 05 
 
 Freight charges 1 .68 
 
 Marketing charges 1.02 
 
 Miscellaneous . .65 
 
 Total $13.57 
 
 The 'average profit per ton was $10.01. 
 
 By present methods of concentration followed by smelting and 
 refining, the gross proceeds on this ore were $10.75 P er ton, while 
 the total costs per ton were $8.8$, leaving a profit of but $1.90, or 
 $8.11 in favor of the chemical process, an increase in profit of 400 
 per cent. 
 
 The cost of treating an ore of the composition mentioned, con- 
 taining only one per cent zinc, would be $2.44 per ton, increasing 
 about 36 cents for each additional one per cent of zinc. However, 
 costs in this process are not generally calculated per ton of ore 
 treated, which are quite variable, depending almost entirely upon 
 the metallic contents and composition of the crude ore. They are 
 usually determined upon the number of pounds of metal recovered, 
 thereby showing the true economy of the method. Straight lead or 
 copper ores, without zinc, cost considerably less. 
 Advantages of the Process. 
 
 1. Applicability to about 90 per cent of all ores. 
 
 2. Special applicability to ores heretofore regarded as too 
 refractory and complex for any known treatment. 
 
 3. Elimination of ore dressing and mechanical concentration 
 with their extravagant losses. 
 
 4. Elimination of fire methods with their attending sulphur 
 and arsenical fumes, consequent litigation and high smelter charges. 
 
 5. The complete and economical passing into solution of 
 all the metals. 
 
 6. High percentage of recovery. 
 
 7. Low cost per pound of metal recovered. 
 
 8. Comparatively low cost of installation, considering the 
 completeness of the process. 
 
 9. Simplicity of operation. 
 
 10. Products in marketable condition. 
 
 Mr. Malm's valuable work has been carried along the line of 
 true conservation, viz: Utilization without waste.. Under his 
 
THE MALM PROCESS 179 
 
 methods no one metal is sacrificed to save another, but all the 
 metals of commerce in the ore are recovered, including the here- 
 tofore despised and much penalised zinc. The mechanical losses 
 encountered in the work are only those which cannot be prevented 
 in any operation, however perfect it may be. If it is not perfec- 
 tion, it is at least the highest point that metallurgical skill has 
 reached in this field of operation, and its ultimate value and im- 
 portance is difficult to foresee or estimate. It promises to become 
 as important a factor in the extraction of all the metals in complex 
 ores as the cyanide process has proved in the treatment of straight 
 gold ores. 
 
Workmen's Compensation. 
 
 BY JOHN H. JONES, 
 PITTSBURGH, PA. 
 
 In presenting the results of the labors of the special commitee 
 appointed to consider, and report upon, the subject of a workmen's 
 compensation act, I desire to call to your attention some of the 
 things which form the basis of the reasoning of your committee, 
 and to submit the same for your approval. 
 
 The subject of employers' liability and workmen's compensa- 
 tion, in one form or another, has agitated the minds of men for 
 years. Individuals, corporations, states and nations have studied, 
 conferred, and sought solutions. The justice of it. all is generally 
 conceded, and American industry is still seeking the best direction 
 to which to move to accomplish the object of its faith. 
 
 The coal mining industry is no stranger to either ''liability 1 ' or 
 "compensation," nor did it wait for law to suggest, demand, or 
 compel a reasonable care, in one form or another, of those injured 
 in the pursuit of the industry. 
 
 That the mining industry has its many problems is not only 
 known to you, but is well evidenced by the birth, development, and 
 achievement of this Congress, and the best testimony in evidence of 
 the value and efficiency of the Congress is this present meeting, its 
 splendid program, and its large and representative character. 
 
 It is natural then that a subject of so vital importance to the 
 industry should engage the serious attention of the Mining Con- 
 gress, first through a special committee, whose report is in print, 
 and now presented for your present consideration, discussion, and 
 approval. 
 
 In order to provoke full discussion, the chairman of the com- 
 mittee desires to present this paper as a brief supplement to the 
 printed report. 
 
 One of the most important points in the whole matter, upon 
 which this Congress should fully inform and declare itself, is to 
 decide upon the best direction to follow in working out a solution 
 best adapted to the mining industry. On this point we have the 
 experience and opinion of practical men in this and other countries. 
 It has been stated that what has been done in England, and what 
 has been done in Germany, are the most important types of action 
 
WORKMEN'S COMPENSATION 181 
 
 on this subject which we can study. Therefore we will call upon 
 some representative gentlemen to present their experience and 
 views; first, Mr. A. H. Gill, Member of Parliament, of Balton, 
 England, and Secretary of the Operative Cotton Spinners' Associa- 
 tion. Mr. Gill says, in substance: 
 
 "In England, before the eighties, the common law was the only 
 means of adjustment between the injured and his employer; when 
 negligence of the employer was not apparent or proven it was hard 
 to get compensation. The work-people became dissatisfied and 
 began to agitate for a new law, and, as the result, an employers' 
 liability act was passed in 1880, and while it was an improvement 
 on the common law, the act was not a success, as it embodied the 
 doctrine that an employer should not be liable unless negligence 
 was proved, or if the workman had been guilty of contributory 
 negligence. It has, always, been difficult to succeed in an action 
 under the act as so many means could be found of resisting a claim. 
 The result of the failure to secure compensation caused a further 
 agitation for an improved method of dealing with the problem. 
 This agitation bore fruit for, in the year 1897, an act was passed 
 known as the workmen's compensation act. This act did away 
 with the doctrine of contributory negligence and made the employer 
 liable to pay compensation to a workman who lost time through any 
 accident which occurred while following his employment. At first 
 it applied to certain classes of workers, namely, railway workers, 
 miners, and those engaged in occupations to which the factory and 
 workshop act applied. This last mentioned act created many 
 anomalies, this made necessary an amending act, which was passed. 
 In the year 1906 the present workmen's compensation act was 
 passed and it is a great improvement on the previous one." 
 Twenty-Six Years Perfecting English Act. 
 
 It is not necessary to enlarge upon this act, but simply to draw 
 to your attention and emphasize the fact that 26 years of agitation 
 by workmen, and 26 years of study, and experiment, by practical 
 men, resulted in a workmen's compensation act that is an im- 
 provement over all previous acts. In closing his remarks Mr. Gill 
 says: (in 1909) 
 
 "The act is a good one. It has very largely salved a knotty 
 problem. We are not likely to go back on it, and I think that you 
 would be well advised in giving it a careful study." 
 
 This opinion is fully confirmed by Attorney Packer, of Wash- 
 ington, D. C, who was retained by the United States Government 
 to investigate the English Compensation Act and conditions in the 
 United States. 
 
182 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Another opinion dated Washington, D. C, December 24, 1910: 
 
 "The Illinois Legislature .should enact a liberal Employers' 
 Liability Act at the special session and then undertake an investiga- 
 tion with a view of the introduction of an automatic compensation 
 law, for THAT view observers now regard as the most feasible and 
 just solution of the vocational ills, accidents and deaths." 
 
 (Signed) SAMUEL GOMPERS, 
 
 President Am. Fed. of Labor. 
 
 And another: 
 
 "In spite of the fact that every one of the industrial nations of 
 Europe has discarded the system of paying damages on the ground 
 of the liability of the employer, and has adopted in its stead the 
 payment of compensation for industrial accidents ; in spite of the 
 fact that New York has adopted a workmen's compensation act, 
 and that both Wisconsin and Minnesota are considering compensa- 
 tion as the only feasible solution of this problem, the Chicago Fed- 
 eration of Labor and its representatives on the Commission have 
 taken a decided stand that the abrogation of the employers' de- 
 fenses must precede any bill providing compensation. 
 
 "It is evident from the letter which the Federation submits, 
 that its officers are not only unfamiliar or unmindful of the eco- 
 nomic waste involved in any employers' liability system, but that 
 they have no knowledge of the total inadequacy of such a system, 
 even when extended by such serious modification of the employers' 
 defenses as the American Federation of Labor advocates. 
 
 "An employers' liability law meets none of the prime necessi- 
 ties of definite compensation, immediately and automatically paid. 
 Under it every case is a gamble." 
 
 Signed by the six "Employer" members of the commission of 
 twelve, Illinois Employers' Liability Commission. 
 
 Again, Major A. R. Piorkowski, representing the Frederick 
 Krupp Company of Essen, Germany, and speaking for the German 
 system 
 
 "The German accident insurance had its predecessor in the 
 Liability Law of 1871, by which the operators of industrial estab- 
 lishments were liable for the accidents caused by them. The in- 
 jured workmen had to bring proof that the operator caused the 
 accident, and the amount of compensation was determined by 
 private societies. It is evident, that such an institution could satisfy 
 nobody. The consequences were long drawn out, and costly law 
 suits, by which the contrasting interests of employers and employe 
 were glaringly brought to light. 
 
WORKMKN'S COMPENSATION 183 
 
 The more law suits between both classes, the more hatred and 
 the less understanding there were for what was mutual in their 
 interests. Employers, employes, and the Government looked eagerly 
 for a better solution of the problem. Germans have been called a 
 people of thinkers. They thought, and understood why the liability 
 law did not answer the purpose, did not work for peace between 
 capital and labor. It worked unjustly toward both of them. An 
 accident would not be an accident if it could be foreseen, avoided or 
 prevented. The accident is an inevitable incident of the trade. It 
 is not due, legally speaking, to the carelessness of the employer. 
 Nor is it due, legally speaking, to the carelessness of the employe. 
 It just happens. It can only be put to the imperfections and perils 
 of the trade. Therefore, the only logical and just way to com- 
 pensate for the injuries done is by insurance. 
 
 First, they proposed compulsory insurance, through an imperial 
 financial institute, that contributors should be employers and the 
 insured. 
 
 The Reichstag refused this plan. 
 
 Then the central association of German industries recom- 
 mended the accident insurance. 
 
 The place of an imperial insurance was taken by the trade 
 associations of the employers. 
 
 Instead of contributions by the employers and communities 
 came the burden of the first 13 weeks to be borne by the sick funds, 
 to which the workmen had to pay nearly 67 per cent. 
 
 The administration remained with the employers. 
 
 The arbitration courts consisted of employers and employes 
 in equal numbers. 
 
 In 1900 this law received its present shape, briefly- 
 All workmen and administrative officers, the latter provided 
 their annual earnings do not exceed 3,000 marks, are insured against 
 the results of accidents in the course of their employment, if em- 
 ployed in mines, factories, and similar establishments specified in 
 law. 
 
 In case of disability, compensation is rendered from the be- 
 ginning of the I4th week after the date of the accident. 
 
 The injured person receives free medical treatment, medicine 
 and other means of healing. 
 
 The accident associations are self administrative. Their in- 
 ternal administration is regulated by a constitution, enacted by the 
 general meeting. The law says what the constitution is to specify. 
 
184 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 The constitution becomes valid when approved by the imperial 
 insurance office. 
 
 The general meeting of the association establishes the risk tariff 
 for the different factories, etc., according to the degree of accident 
 risk, and the amount of contribution accordingly. 
 
 This tariff risk is to be revised every five years and approved 
 by the imperial insurance office. 
 
 If any gentleman present imagines that the German system 
 would be a success in this country, let me quote from the New 
 York Commercial of Friday, October 20, 1911 (4 days ago) 
 under the heading 
 
 "Liability Men Criticize State Insurance System." 
 After much discussion and an attack upon the suggestion of 
 Governor Woodrow Wilson, as to state accident insurance, it reads : 
 Nearly every speaker alluded to a recent review of the Ger- 
 man state insurance system, written by Dr. Ferdinand Friedens- 
 burg, who has recently retired after 20 years at the head of the 
 senate of the imperial insurance office of the German E'mpire. -Dr. 
 Friedensburg does not find the German system, as it has worked out 
 in practice, by any means ideal. He does not condemn the prin- 
 ciples underlying the workmen's compensation for accidents. 
 
 Dr. Lott quoted him as saying that charity crept in and cor- 
 rupted the system at the beginning; that "workmen very soon got 
 accustomed to bringing their complaints, doubts and claims of any 
 nature whatever to the imperial insurance office, often without ap- 
 pealing to any intermediate instance," that the imperial insurance 
 office, which is intended to handle questions of law, is overburdened 
 with frivolous and unfounded claims ; that "the expenses of the 
 system continued to grow as the force required increased" ; that 
 "the number of officials in the imperial insurance office has multi- 
 plied in tune with the ever-waxing burden of work" ; that "the 
 number of accidents grows with monstrous speed" ; that "in 1886 
 100,159 accidents were reported and 10,540 (10 per cent) compen- 
 sated; in 1908, 662,321 accidents were reported and 142.965 (21 
 per cent) compensated"; that "often an accident is sought for and 
 arranged" ; that "sometimes a chronically sick man swears that his 
 old illness is the result of a recent accident and gets consequential 
 help" ; that "the communal chiefs act entirely under the belief that 
 they ought to help their local residents, as a result of the common 
 opinion that the insurance funds have more money than they know 
 what to do with, and this idea strikingly deadens the conception of 
 legality and love for the truth" ; that "naturally the universal laxity, 
 
WORKMKX'S COMPENSATION 185 
 
 the payment of unjustified claims, and the extravagance practiced 
 justified claims, and the extravagance in equipping hospitals and 
 sanitoria impair the integrity of insurance funds" ; that "employers 
 do all thai is possible to escape their burdens, which they feel to 
 be unjust and in vain enormous sums are annually extracted from 
 them in fines," that ''industrial unions and insurance institutions 
 have been repeatedly on the brink of bankruptcy. 
 
 Dr. Friedensburg points out that the excessive cost of the 
 insurance system, which is one result of the degradation of the 
 system into charity, is complained of by employers, and that state 
 insurance, therefore, reacts injuriously upon Germany's industry. 
 
 He says: "As. a result of the costs of insurance, which have 
 gradually become monstrous, German industry is put at a disad- 
 vantage and is hampered to the extreme in its competition with 
 foreigners/' 
 
 Caused Rise in Prices. 
 
 Indeed, Mr. Friedensburg makes the astonishing statement that 
 the German system of workmen's compensation is held responsible 
 for the marked rise in prices which is felt to be oppressive by all 
 classes of the German population. 
 
 Mr. Wolfe is of the opinion that whether the state will under- 
 take the employers' liability business to the exclusion of the com- 
 panies depends upon the attitude of those companies and their 
 disposition to co-operate with the state in the solution of the eco- 
 nomic problem. He said that employers' liability insurance repre- 
 sents more than one-half of the entire liability business transacted 
 and consequently the question of state insurance is of vital interest 
 to the underwriter. 
 
 While heretofore the question may have seemed to the under- 
 writers a fad or a form of socialistic doctrine and an interference 
 with the right of contract, a discourager of thrift and an encourager 
 of malignering and intentional accidents, public opinion is over- 
 whelmingly in favor of entering the cost of human accidents as 
 a part of the cost of production, and the underwriters, in the 
 opinion of the speaker, must face the situation accordingly. Mr. 
 Wolfe believes that a desirable law would embody the following 
 features. 
 
 First. A statement of the circumstances under which the em- 
 ployer becomes responsible for an accident during the hours of 
 employment. 
 
 Second. A definite scale of benefits to be paid by the em- 
 ployer when he is responsible. 
 
186 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Third. A requirement that every employer to whom the law 
 applies shall file with* the commission, mentioned hereafter, satis- 
 factory evidence that his responsibility, for the payment of benefits 
 for which he becomes responsible is guaranteed by a corporation 
 authorized to transact the business of liability insurance. 
 
 Fourth. The appointment of a commission (some of the mem- 
 bers of which should have a knowledge of the technical side of 
 employers' liability insurance) which would classify risks, and 
 would, after the necessary investigation, fix the minimum and the 
 maximum rate which would be charged any corporation authorized 
 to furnish the guarantees. 
 
 Fifth. A provision that the commission may, after hearing evi- 
 dence, order the installation of proper safety devices in order that 
 accidents may be prevented as far as possible. 
 
 Sixth. A provision that those employers having more than 
 a certain number of employes may, instead of becoming insured 
 in a private company, elect to deposit with the state the minimum 
 premium required by the commission, which deposit is to be in- 
 creased from time to time as required by the commission, in order 
 to cover the present values of benefits to be paid, and is to be 
 withdrawn on filing with the commission satisfactory evidence that 
 the deposit is not required for the payment of claims. 
 
 Mr. Rowe stated that obviously the trouble with state insurance, 
 viewed from an impartial angle, would be the mixing of politics with 
 it. "Workmen's compensation insurance," he said, "can only exert 
 its effect as a blessing if free from all exaggeration and particu- 
 larly from the conscious or unconscious love-making with the 
 'lower classes.' ' ; 
 
 "Such insurance," he s'aid, "must be issued by an independent 
 institution free from all partiality." 
 
 * * * 
 
 Employers and employes should not lose sight of the fact that 
 less than 50% of the premiums paid goes to the real beneficiaries. 
 Whether or not this may be considered economic waste is for others 
 to judge. 
 
 Here, then, are introduced two methods, one the "Employers' 
 Liability Act," which has been discarded by practical men, the 
 other the "Workmen's Compensation Act," now before us, and be- 
 tween these two we are called upon to choose. 
 
 Your committee urges a workmen's compensation act as best 
 fitted, by experience and practice, to the mining industry. 
 
WORKMEN'S COMPENSATION 187 
 
 The liability act appears, to your committee, to be unjust and 
 unreasonable, in principle and in practice the very mention of it 
 suggests lawyers, courts, delays, annoyance, strained relations, ex- 
 pense to employers, and loss to workmen. In one word, it means 
 "fight." The compensation act means "payment." The former is 
 an unknown quantity; the latter is a fixed principle known and 
 computed in advance, and provided for. The record of the liability 
 act is said to be about 50% adjustment the compensation act 
 means 100% adjustment. 
 
 Adjustment under a liability act is reported by one large coal 
 operator to be injurious in 80% of cases in a large disaster, in that 
 it would shower money into the hands of the inexperienced, where 
 value is unknown, and where money and widows are soon parted. 
 That this is no idle dream is no doubt known to every man here, and 
 the speaker has had enough experience to "fill a book." Just one 
 experience will suffice to illustrate. During the past two years a 
 certain widow, of a miner, received a so-called liability adjustment. 
 Two of the first purchases made were a gold watch and a silk dress, 
 which added to other things made the expenditure for the first 
 month $900.00. She spent over three thousand dollars a year" for 
 these two years, and now finds herself and five children objects of 
 charity. Surely it cannot be argued that this is the compensation 
 intended. True, it was her inexperience and failure to value money 
 that worked the mischief. This is the very thing we argue. This 
 woman is a fair type of those with whom the mining industry has 
 to deal, and the illustration is from life and by no means an isolated 
 case. 
 
 Under the compensation act no such temptation would have 
 presented itself the adjustment would have simply continued the 
 natural earning and pay conditions for a period of years, insured the 
 woman against her own inexperience and extravagance, insured to 
 the children the real object of the act, and be a blessing to the 
 family and to the community. 
 
 Liability law adjustment, in the judgment of the committee, is 
 a mistake is uncertain and unreasonable is an injustice to all con- 
 cerned, and is prejudicial to all the best interests of a miner's 
 widow and children that it defeats a good intention, and does 
 not insure the care, education, and opportunities of life, supposedly 
 vouchsafed, to the husband and father, by a lawVhich caused him 
 to risk and lose his life in an honest belief, and a sincere endeavor, to 
 provide for his family. In short, it looks as though the most 
 
188 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 ardent supporters of an employers' liability law, are ambulance 
 chasers and those who could hope to profit by a disturbed condition, 
 as between capital and labor. 
 
 It may not be out of place to again quote from the remarks of 
 Mr. Gompers, who says : "As a principle, compensation is wisest, 
 is best, and more economic, and would not tend to disturb the rela- 
 tions between the injured workman and his employer, as does 
 liability." Surely no one will argue that the best interests of the 
 yforkmnn are overlooked in this opinion. 
 
 As to the question, Who should pay the cost? there is no need 
 to take up your time in argument. It is conceded to be a legitimate 
 charge on industry, and that every industry ought to bear its own 
 cost. 
 
 Liability Act Wrong in Principle and Practice. 
 
 It is also conceded that labor is just as necessary for the 
 maintenance of industry as any other commodity, and that the cost 
 of compensation, as a fixed principle of industry, should be reckoned 
 with in placing a price upon the finished product. Upon the 
 grounds stated we believe the liability act to be wrong in prin- 
 ciple and practice, and that the injustice of it falls upon those who 
 are least able to bear it, on the one hand, and, upon the oth'er hand, 
 this injustice would fall upon those who are supposed to be wealthy, 
 which supposition is based upon opinion thoroughly unfamiliar with 
 the facts, and therefore incompetent, an opinion of those who do 
 not stop to consider whether or not the cost of their wishes is 
 within the possibilities of the industry, or to take into consideration 
 the fact that not one out of ten coal companies could stand the cost 
 of some of the disasters which have occurred during the last few 
 years, under a liability act, or the further fact that less than ten 
 per cent of the coal companies have as much money invested as the 
 cost of some of the mine disasters of the past three years, and that 
 a liability act would bankrupt ninety per cent of the companies 
 should this class of disaster visit their mines. Surely such a law 
 would endanger the industry, and therefore cannot be the sober 
 judgment, or even the sincere desire, of either workmen or 
 employer. 
 
 The mining industry should stand ready to bear the burden of 
 its own accidents it should stand ready to pay a tax of one cent 
 per ton of coal mined to meet the necessities of the case and to pro- 
 vide the necessary funds. 
 
 It should stand ready to have this fund administered wisely 
 in the interests of the workmen and their families. 
 
WORKMEN'S COMPENSATION 189 
 
 It has always stood ready to consider, and has introduced every 
 known precaution to prevent these accidents, and to safeguard every 
 man employed above or below the ground. 
 
 It considers all this right, reasonable and just, and that the best 
 direction to move in, to accomplish best results, is the passing of the 
 workmen's compensation act. 
 
 This consideration of the subject is not based upon selfish or 
 narrow motives. The company I have the honor to represent oper- 
 ates in five states the cost, to our company, under this act, and 
 which act it approves of, will mean fifty to sixty thousand dollars 
 a year, and it is only one of many, all of which goes to show that the 
 industry is actuated wholly by humane motives, and a sincere 
 desire to squarely meet the conditions of the times, therefore the 
 honesty of the mining industry view of the matter must be self- 
 evident to every right thinking man. 
 
 In the preceding argument we have referred to the best direc- 
 tion to move in to accomplish the best results, and have clearly 
 stated our reasons in favor of the compensation act. There is an- 
 other important point to consider with reference to this act, namely, 
 the mining industry must give its best thought to the method of 
 introducing and passing the act it cannot be left to the unfamiliar 
 majority. The combined co-operative influence and wisdom of this 
 Congress is vitally necessary to guide public opinion and legislators 
 in this important matter. The necessity for reasonably uniform 
 legislation by the different states of the Union must not be lost sight 
 of. Uniformity of legislation on all subjects of common interest is 
 one of the most important questions of the times. It was the Hon. 
 Seth Low, President of the National Civic Federation, speaking 
 upon this question, who said : 
 
 "If one industrial state makes a change in the law 
 of master and servant, or of negligence, it may unwitting- 
 ly greatly endanger its manufacturing industries, but if the 
 competitive industrial states will move 'correspondingly 
 along the same lines, no one of them is likely to be en- 
 dangered, and the w r hole country may be benefited." 
 And, along the same lines, it was Senator Root who said : 
 
 "The time has come when each state must legislate 
 on matters of common interest from the point of view of 
 one of a family of states, rather than from the point of 
 view of an individualism that is self sufficient the people 
 of the country have grown together in so many ways, 
 without regard to state lines, that, unless fairly uniform 
 
190 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 legislation can be had upon a constantly increasing number 
 of subjects, the demand for action by the central Govern- 
 ment is likely to become irresistible, and, in time, even to 
 require an amendment of the Constitution of the United 
 States to give to the central Government the power the 
 states fail to use for the common benefit." 
 
 It is to bring about just this uniformity that we recommend to 
 this Congress the appointment of a general committee, and we might 
 go a little farther than the printed recommendation and have this 
 committee consist of one man from each of the several states, this 
 general committee to have charge of the enactment of the law pre- 
 sented by the committee, each appointee to act as chairman of a 
 committee of five within his state, composed of himself and four 
 other members, charged with the duty and responsibility of seeing 
 to it that the state legislatures of those states shall pass this law. 
 
 The necessity for careful study, for the wisdom which comes 
 from the multitude of counsel, and for definite and determined 
 action, is clearly evident. 
 
 The American mining industry should here go on record as 
 favorable to that solution of this problem which is right, reasonable 
 and just to the industry, to the employer, and to the employe. 
 
 A law that strikes at the life of the industry will be a calamity. 
 
 A law that does justice to employer and employe, that operates, 
 and compensates, without delay, friction or loss, will be a blessing. 
 May the "wisdom which cometh -from above" lead and guide us into 
 that which is best. 
 
Workmen's Liability Insurance. 
 
 BY C. O. BARTLETT, 
 CLEVELAND, OHIO. 
 
 During the last few years, and especially the last year, very 
 much has been said about workmen's liability insurance, and quite 
 a number of our states have enacted laws pertaining to this im- 
 portant question. The bone of contention is, Who shall pay the 
 bill ? It is certainly very nice for every workman in a mine, factory, 
 or on a farm to have a workman's insurance policy, and especially 
 would this be true if somebody else paid the premium. 
 
 There seems to be a sort of general opinion that insurance 
 companies are robbers, that they have made vast fortunes out of 
 the employers' insurance business, and if the state or general gov- 
 ernment would go into this business, the rate would be very much 
 less. Now the true facts of such matters, judging from the past, 
 are that all business done by a city, state, or general government 
 costs nearly twice as much as when done by private corporations 
 or individuals, and we see no reason why there should be any varia- 
 tion from this general rule in the insurance business, and I think it 
 is fair to assume that when any state, or the United States as a 
 whole, get into the liability insurance business, the cost will 
 increase the same as it has done in other lines, and the idea that a 
 lot of money will be saved is only a myth. 
 
 In taking up this question, we should consider, and consider 
 most carefully, that where there is one large mining corporation or 
 other corporation, there are hundreds of smaller ones doing busi- 
 ness in every state, and I wish to speak especially of these medium 
 sized corporations or companies. The large companies like the 
 Philadelphia & Reading Coal & Iron Company, the United States 
 Steel Corporation, the Pittsburgh Coal Company, the Standard Oil 
 Company, the International Harvester Company and some others of 
 similar type control very largely the selling prices of their products ; 
 in other words, when they say thumbs up, up they go, and when 
 they say thumbs down, down they go, but the medium fellow, with 
 competition on every corner cannot do this, and if we add to the 
 expense of these companies, even at the rate of i% a year on the 
 capital stock, it will mean just as sure as the sun will rise tomorrow 
 that thousands of them will go to the wall. 
 
192 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 To illustrate this fact, let me state that two years ago the state 
 of Ohio, which is one of the largest manufacturing states in the 
 Union, one of the best located for manufacturing purposes, with 
 plenty of coal at a low price and of a good quality, with cheap iron 
 ore of a good quality, the best of water and rail transportation facil- 
 ities, the best of farming lands from one end to the other to supply 
 bread and meat, and perhaps more advantages than any other state 
 in the Union, put a tax of i/ioth of i%, that is a special tax of 
 i/ioth of i% on all corporations, and last year they increased this 
 by 50%, making a yearly tax of i l / 2 mills on every dollar of the 
 capital stock. In other words, a company of $60,000 capital stock 
 is now compelled to put into the State treasury as a special yearly 
 tax $90 per year. This may seem like a small amount, but last 
 spring more than 1200 of the Ohio corporations were delinquent in 
 this special tax, the delinquency amounting to more than $2,000. 
 
 To further illustrate, if a tax of one cent a ton were put on all 
 coal mined in the United States, it will mean very nearly i% on 
 the selling price of all the coal mined in the United States, and 
 according to Mr. Parker, the output of coal in the United States in 
 1910 was 501,000,000 tons, and at ic a tojn means over $5,000,000. 
 I do not hesitate to state that the 33 million tons of ore mined in 
 the state of Ohio last year did not pay dividends to the owners of 
 the mines of more than 2% and a tax of i% would mean ruination 
 to very many of them, for we assure you that a great many mines in 
 the state of Ohio are earning extremely small dividends. 
 
 According to this same report by Mr. Parker, the average price 
 of bituminous coal is a little over $1.00 a ton. Now then, it has 
 never been estimated by any actuary that the Workmen's Liability 
 Insurance tax against any mining or other company would be less 
 than this amount, and probably it will be very much more, possibly 
 200% more ; in fact, we are told by insurance companies that it will 
 be fully this much and we have no reason to believe that the insur- 
 ance companies are liars. At any event, so important a measure as 
 the workmen's liability insurance should receive the most careful 
 consideration. 
 
 When we look at it carefully and boil it down, it simply means 
 this: that all workmen in mines and factories will have a liability 
 insurance policy, so that in case of accident they shall draw a cer- 
 tain amount a week, say 60% of the amount of their wages ; that in 
 case of death, their families will draw a certain amount a week up 
 to a certain maximum, say three or four thousand dollars. 
 
\VORK.M H.VS LIABILITY INSURANCE 193 
 
 So far this seems easy. It is certainly a mighty good thing 
 for each workman to have an insurance against injury or death, but 
 from here on comes the question, Who shall pay the bill? Nat- 
 urally the workmen are anxious for the employer to pay the 
 premium, and naturally the employer is somewhat loath to do it. 
 We must not forget the fact that over 80% of the men engaged in 
 business, mining or other kinds of business, do not meet with 
 success. Again, I wish to say to the miners and manufacturers 
 that if it is legal to insure the workmen in the mines and factories 
 throughout the cities and towns, is is equally as important to insure 
 the workmen on the farms. 
 
 There seems to be a sort of a prevailing idea that mining is a 
 very dangerous occupation, yet statistics show that mining is far 
 less dangerous than a very large number of manufacturing indus- 
 tries. By statistics given by the government, it is found that in the 
 state of Pennsylvania mining is about one-thirtieth as dangerous as 
 making nuts and bolts. It is not more dangerous than railroading 
 and only half as dangerous as farming. By such statistics as can 
 be had in this country, and especially in Germany, more than 45% 
 of all the accidents happen on farms, and there is no question what- 
 ever in my judgment but what farming as it is carried on at the 
 present time in the United States, with its improved machinery is 
 far more dangerous than mining. Now if it is necessary to protect 
 the fellow in the mines, at the bench or forge, why is it not equally 
 as well to protect the man on the- farm, behind the plow, or behind 
 the corn shredder and anything that protects one without protecting 
 the other should never be sustained by any one court and I hope it 
 never will be. 
 
 Very much is being said about the high cost of living. There 
 are two very important reasons for this ; one the scarcity of water. 
 When the rain fails to come, the corn, wheat and vegetables wither 
 and die. The other reason is the scarcity of farm labor throughout 
 the entire country. You cannot expect the boys to remain in the 
 country and work twelve hours a day for a dollar and a half or less 
 when they can get two or three times this amount in a mine and 
 work six or eight hours a day, or in a factory and get at least 
 double the amount. Now if we throw in an insurance policy be- 
 sides, it will add to the burden. 
 
 That all manufacturers of the United States are very much 
 interested in this question and are very anxious indeed to have some 
 law enacted, there is no question, and I feel sure I am speaking the 
 sentiments of a very large part of the manufacturers in the state 
 
194 PROCEEDINGS AMERICAN MIXING CONGRESS 
 
 of Ohio when I state that they do not feel as though they should 
 pay the premium. It seems to me that the only just way to do this 
 is for the employer to pay half and the employe pay the other half 
 and let the general government, either State or National, bear the 
 expense of the burden of carrying out the provision of the law. 
 
 The true object of a liability insurance should be to prevent 
 accidents and from an experience of many years, I feel absolutely 
 confident in making the assertion that if any mine or factory in- 
 sures its employes and pays for the entire insurance, that the num- 
 ber of accidents will increase very rapidly indeed ; in fact, I haven't 
 the slightest doubt about it, but if you say to the workman, you 
 pay half of this and I will pay the other half, then you will have 
 prevented to a very large degree all accidents, for the reason that 
 the workmen will be equally as interested and will try in every 
 way to prevent accidents as well as the employer. 
 
 Another very important measure, and we think by far one of 
 the most important of this whole question, is that this will bring 
 the employer and employe to a very close and very friendly rela- 
 tionship, and that is one of the great questions which the manu- 
 facturers are trying to solve today, for say what you will, we are 
 all in the same boat and should work in harmony as much as 
 possible. 
 
 It is a terrible thing for the head of any mine or factory to 
 learn that one of his workmen has met with a serious accident, 
 possibly one or both legs broken, and you can rest assured that 
 every one of us are only too glad to do anything in our power to 
 prevent these things, but we fully realize, however, that accidents 
 will happen, that they always did and all it is possible for any man 
 to do is to prevent them as far as possible. In other words, I wish 
 to emphasize the fact that prevention should be the main object in 
 any workmen's liability insurance law. That should be the goal 
 at all times, in all places, and under all conditions. 
 
 Very much has been said about the splendid laws regarding 
 liability insurance in the Old Countries, and especially is this so 
 regarding Germany. One would almost believe by hearing some of 
 the addresses and by reading some of the articles of the magazines 
 that it was almost a paradise to work in Germany ; that it was next 
 to a front seat in Heaven, but like all other questions, there are two 
 sides to this one, and the other side we don't hear so much about. 
 They do not tell us that the taxes in Germany are two and some- 
 times more than four times as much as they are here ; that is, the 
 direct tax, and then there is another tax there, too, in this great 
 
WORKMEN'S LIABILITY INSURANCE 195 
 
 Germany, a tax that is far more mighty than dollars and cents, and 
 that is that every boy must be taken from his home and give five 
 years of his time to the army. Will you just for a moment consider 
 what this tax would mean to you and to me? Just as your boy or 
 mine is ready to enter college, how would you like to have the 
 government step in and say: "Here, Charlie, or William, you come 
 with me for five years ; I want you ?" and he has to go. Now, then, 
 if an observing man knows anything, he knows that army life is 
 very bad for a young man and I am told by good authority by some 
 of the men who have been through this army in Germany that 
 many of the good, moral boys, in fact the majority, that enter the 
 army come out very bad men at the end of their term, and I say 
 right here that if there is any one thing that I am thankful for, it is 
 that we do not live under such laws as they have in Germany. 
 
 But let us go a little further into these wonderfully good laws 
 of Germany. One would almost be led to believe than many of the 
 workmen would immediately go back to work under these favor- 
 able conditions, but how many mechanics from your town left for 
 Germany last year? I venture to say that you would count the 
 number on your four fingers, and I can furthermore venture to say 
 that then you can divide it by four and in many cases you can sub- 
 tract one from this amount. On the other hand, how many of the 
 workmen from that country have come to this country to better 
 their conditions? Over one hundred and eighty thousand German 
 people came here last year, and they have bettered their conditions, 
 and we are very glad to see them and want them to come. 
 
 In Germany the employers only pay one-third of the cost, and 
 I repeat that we should consider and consider most carefully before 
 we burden our mining operators and manufacturers with the tre- 
 mendous cost of Workmen's Insurance. If this agitation and legis- 
 lation against the business industries of our country keep on the 
 the rate they have for the last two years, very serious consequences 
 will surely come and this country will realize that we have killed 
 the goose that laid the golden egg. 
 
The Federal Investigation of Ore Treatment Problems. 
 
 BY W. N. SEARCY, 
 SILVERTON, COLO. 
 
 It is rather embarrassing to me to undertake to discuss a ques- 
 tion of this character which must naturally touch upon some of 
 the technical phases of mining, when I myself am not actively en- 
 gaged in the actual business of mining. I am interested in mining 
 property; all that I have is invested in the mining country. I 
 represent men who are engaged in mining; and, therefore, have been 
 selected by some of my friends in Colorado to undertake to tell 
 you a little about this subject. I will ask that you bear with my 
 want of oratorical talent, for I hope that whatever may be lacking 
 in oratory may be made up by the appeal which the plain facts con- 
 cerning the mineral industry itself must make to your sound 
 judgment. 
 
 If the Federal Government takes hold of this proposition to 
 solve the treatment of ore, it will deal only with general problems ; 
 it will only undertake the more intricate and difficult problems, and, 
 therefore, it will be working not for any one section, but for the 
 people of the United States. I take it that this mining congress 
 itself will not take up any sectional issues, and while in undertaking 
 to discuss this subject, I shall refer to some sections of the West, 
 perhaps to some sections of Colorado, I wish you to understand, 
 in fairness to this convention, that I refer to those localities only 
 as illustrations ; for Illinois and Michigan and Utah and Missouri 
 are interested in this problem in the same way as is Colorado. 
 
 Our President's address, as delivered to you this morning, 
 goes quite fully into the foundation for asking Federal help in the 
 solution of these questions. He has explained to you very fully 
 the work which has been performed by the agricultural experiment 
 department of the United States. He has shown you how valuable 
 that work has been, and the tremendous amount of good that has 
 been accomplished. I will not repeat that part of the argument. 
 What Mr. Dern has presented to you upon that subject should be 
 enough. Now, in order to consider whether the Federal Govern- 
 ment should undertake to help solve these problems of ore treat- 
 ment, it is necessary first to consider to a limited extent the im- 
 portance of the industry itself. If you will take the eleven states 
 
ORE TREATMENT PROBLEMS 197 
 
 situated west of the Eastern Colorado line, you have the distinctively 
 mountain states of our country. If you will add to them the ter- 
 ritory of Alaska, you have what may be called the metal mining 
 section of our country. This is not because Missouri does not 
 produce more zinc than some of those states, nor because Michigan 
 does not produce more copper than some of those states, but be- 
 cause in those western states the mining' industry is the basic or 
 foundation industry. Mining in those states and territories bears 
 the same relation to general industry there that manufacturing does 
 to general industry in New England, or cotton raising to the in- 
 dustry of the South. Furthermore, if it were not for the mining 
 industry existing in large sections of these mountain States their 
 progress would be very materially handicapped and their final 
 development would be greatly limited. I desire to give you a local 
 illustration : There is a section in Colorado known as the San 
 Juan Mining district. I want to use it as an illustration. That 
 territory is formed by the crossing of the great Continental or 
 Rocky Mountain Divide, by the San Juan Range of mountains, 
 thus creating a large and very precipitous mountain country. For 
 instance, in my little county there are probably 20 or 25 mountains 
 rising to 13,000 feet elevation, and our engineers tell us that if the 
 entire county were leveled down it would all stand above the timber 
 line. Silverton, our county seat, has an altitude of 9,000 feet up 
 so high that summer heat is unknown. Now that territory itself 
 covers practically three thousand square miles of country, that is, 
 the mineral section alone is the size of Delaware and Rhode Island 
 combined ; but the important thing is that all of that territory 
 would be vacant, all that territory would be idle, all that territory 
 would be practically useless and unoccupied were it not for the 
 mining industry. That same condition exists in Utah ; it exists in 
 Idaho ; it exists in all of these Western states that I have men- 
 tioned, and if the mining industry is not to be protected and pre- 
 served, we are going to leave a great portion of the western section 
 of the United States practically unoccupied. We cannot afford, 
 as citizens of the United States, to neglect or overlook any possible 
 measure or step which may make that portion of our country 
 populous and prosperous. But that is not even the most important 
 prosperity phase of this subject. While I have mentioned to you 
 a mining district in Southwestern Colorado, as an illustration, 
 which covers three thousand square miles of mountain territory, I 
 wish to state that south of that territory is a farming country 
 which is fertile, well-watered, capable of producing almost any 
 
198 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 product of the temperate zone. Now that farming territory, in- 
 cluding therewith the mining section, covers an area of 20,000 
 square miles, and extends into the southeastern part of Utah, the 
 northwestern corner of New Mexico, and it extends far eastward 
 in Colorado. Now that agricultural territory of 20,000 square 
 miles is equivalent in size to Massachusetts and Connecticut and 
 Delaware and New Jersey combined. It is capable of supporting 
 hundreds of thousands of people. Yet that agricultural territory, 
 under present conditions, would not know prosperity if it were not 
 for the mining cities up in the mountains which make a market for 
 the agricultural products. I desire to use this illustration to show 
 you by a concrete example the importance to Colorado and to Utah 
 and to Nevada and to Idaho, and to every other State, of preserving 
 and conserving the interests of the mining industry itself. 
 
 Now it goes further than that. In the state of Colorado, and, 
 I dare say, in Utah and the other Western states, the mining in- 
 dustry forms the basis for the best market that the coal miners 
 themselves know. We have a great deal of coal in that country, as 
 you have here, but it takes the mining industry to stand in the 
 place of your manufacturing and transportation industries of the 
 East. 
 
 Another idea that is worth considering. That western country 
 that I have described, including Alaska, covers nearly one-half 
 the entire area of the United States. Alaska alone is equivalent to 
 five of the -largest states you would be likely to name, excluding 
 Texas. That big western section should not be brought into com- 
 petition with the eastern agricultural sections, when by proper en- 
 couragement of the mining industry in that western metal-pro- 
 ducing country, it will provide its own market and prevent agri- 
 culture of the West from competing with and injuring agriculture 
 in the East. Now this is only a general consideration of the im- 
 portance of the mining industry in that western section alone. 
 The same considerations apply in a general way to the metal mining 
 industry in Illinois, in Missouri, in Wisconsin, and other states. 
 
 The metal mining industry has another phase more important 
 than mere present property for our generation. . Something has 
 been said about conservation. Now, I may not agree entirely with 
 the views recently expressed concerning conservation, but I cer- 
 tainly do agree to some extent ; and that is to say that true con- 
 servation should be a conservation which saves for the people and 
 not one which denies use to the people. 
 
ORE TREATMENT PROBLEMS 199 
 
 This is pre-eminently the age of metals. It is the age of elec- 
 tricity. It is the age of invention. It is the age of speed It is 
 the age of machinery. Fifty years ago if you had been sitting in 
 this hall and holding a convention and a neighboring building were 
 being erected you might have heard the blows of the carpenters' 
 hammers. Today, a building is being erected there ; and some- 
 where away off in another part of the city there is situated a tre- 
 mendous plant involving tons and hundreds of tons of iron and 
 steel and copper in its construction. From that plant run electric 
 wires, involving more tons of copper, out through the city, until 
 they ramify every street and avenue in the metropolis. One of those 
 wires is attached there on the side of the new building to some 
 kind of an electric machine. The building itself is of steel. The 
 machine that makes the noise is of steel, copper and iron, and 
 instead of the whack of the old-fashioned hammer, you hear the 
 vibrations of the machine hammer riveting beam upon beam and 
 erecting a structure almost wholly composed of metal. Yet the 
 giant steel frame you view from the window is merely an ordinary 
 business building- of this day. That building is only an illustra- 
 tion. We have passed by the old days of wood and stone. The 
 cradle and the coffin are made of metal. The conveyances that we 
 ride in along the street and the pleasure boat are made of metal. 
 The man-of-war and the fortress resisting the guns must be made 
 of steel. 
 
 Mining and Agriculture Rquall\ Important. 
 
 As our chairman told you in his very able address this morn- 
 ing we are coming to the place where people will realize that 
 mining, in its broader phases, and agriculture are but two equal 
 supplemental divisions of the industry of our Nation, one as im- 
 portant as the other. 
 
 The Government geological report for 1909 shows that in 1880 
 we used substantially $185,000,000 worth of metal produced from 
 our storehouse. By the year 1900, twenty years later, that had 
 increased to $511,000000. In other words, after allowing for all 
 reasonable change in the price of the commodity per pound, in 
 twenty years we more than doubled the demand upon our store- 
 house for the use of metal therein contained ; and in 1909 we had 
 reached something like $750,000,000 annual production, proving 
 that by 1920 we will again have doubled the demand upon the 
 storehouse for the use of metal. 
 
 Now I do not believe it would be conservative or sound to 
 say that we are rapidly approaching the place where metal cannot 
 
200 PROCEEDINGS AMERICAN MIXING CONGRESS 
 
 be found, nor that we are immediately going to exhaust that store- 
 house. I do not believe that we have reached the place where 
 any calamity views need be entertained, but I do believe we have 
 reached the place where common sense and sound 'business policy 
 should call upon the people of this Nation to use every reasonable 
 endeavor to see that the metal extracted from the earth each year 
 is put into form where it will be saved and used, and not wasted. 
 That is the problem that is brought before you today. These 
 Western States that I have mentioned and the territory of Alaska 
 produce substantially $250,000,000 worth of metal each year 
 This $250,000,000 worth, of course, includes silver and gold, and it 
 is only fair to state that in certain sections of the country, like 
 Cripple Creek, the miners have been able to effect a fairly success- 
 ful saving of gold and silver contained in the ore, possibly 90% ; 
 more probably an average of only 85% 'of the silver and gold con 
 tained in the ores bearing only those two products. But that is not 
 the problem. The problem that arises in those mining sections is in 
 treating what we call refractory or complex ores. The big veins 
 cutting through the mountains contain lead and zinc and copper and 
 iron and manganese and quartz, and perhaps a half-dozen other 
 metallic contents, combined in almost every conceivable form anil 
 proportion ; and these big low-grade veins form the solid per- 
 manent basis of the mining industry. Now, when you realize that 
 a lead smelter cannot treat zinc, but must burn it up, and that a 
 zinc smelter cannot successfully treat other metals, you will readily 
 realize the difficult problem which is immediately presented to the 
 man who is grinding that ore and sending it to the market. In 
 this class of ore, known as refractory, or complex ore, I believe 
 it is safe to say that in the average low-grade mining district the 
 saving effected in the course of milling does not exceed 70% of 
 the value of the contents. Seventy per cent saving necessarily 
 means a 30% loss or waste, because as a general rule the tailings 
 from the mill go into the streams or are scattered over the surface 
 of the earth without being in any way conserved. Therefore, the 
 loss that is suffered is a permanent loss. 
 
 It might be well to explain that in the low-grade mining dis- 
 tricts of Colorado, Utah, and other states, where the veins are 
 known to occur, these low-grade ores in general carry values of 
 from $4 to $20 per ton. Now when you consider that these me- 
 tallic contents are included along with quartz, or other material 
 constituting one-half or two-thirds of the total tonnage, and when 
 you take into consideration the railroad freight that must be paid 
 
ORE TREATMENT PROBLEMS 201 
 
 per ton and the rather high charge that must be imposed by any 
 smelter that undertakes to treat ore containing so much silica, you 
 will readily realize that the miners cannot ship that crude low-grade 
 ore to a smelter and have it successfully treated. Therefore the 
 burden is imposed upon them of first separating out the silica or the 
 quartz contents in connection with their ore. Next they must 
 confront the problem of undertaking to separate zinc away from 
 the lead, copper and iron, and at the same time try to save the gold 
 and silver value; so that when they market their product they may 
 be able to send the lead and copper and iron to what is known as a 
 lead smelter and the zinc contents of the ore to what is known as a 
 zinc smelter. This presents a complex and difficult problem. I 
 suppose there are a hundred different forms of mills or of machines 
 or of contrivances that have been invented for the purpose of sep 
 arating and treating these ores. Some are fairly successful in some 
 branches of the industry ; but no general solution of the problem 
 has yet been presented. I believe it is safe to say, as I have told 
 you, that the loss in this branch of the metal mining industry will 
 equal 30% of the total product brought out of the ground. 
 Losses of Rare Metals, in Mining. 
 
 A further illustration of these losses may be found in the case 
 of certain rare metals. For instance, in one county in Colorado it 
 was discovered a few years ago that minable quantities of tungsten 
 existed. The miners there concluded that they would try to pro- 
 duce tungsten commercially. They found very substantial deposits 
 of that metal. They proceeded to produce the metal, produce it 
 commercially, and I understand they did so at a profit. But in 
 producing the tungsten, as far as I have been able to learn, not less 
 than 30% produced from the ground is lost in the course of milling, 
 before the concentrates are shipped to the market. 
 
 Another illustration of this same loss is in the vanadium de- 
 posits also found in a southwestern county of the same state. 
 Vanadium is used in hardening and toughening certain varieties of 
 steel and also for other purposes. It is a valuable metal, rather a 
 rare metal. Now in the production of this vanadium which has 
 been found in that county it is reported that one company takes out 
 that ore, ships it all the way across this country and across the 
 ocean to Liverpool, in order to have it treated. The saving in 
 Liverpool may be very good, but there is but little saving to the 
 industries of our country in paying such freight, besides the treat- 
 ment charge. Another company is undertaking to treat the vana- 
 dium on the ground by a process, as I understand, devised by their 
 
202 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 own metallurgists. It is stated concerning their own home treat- 
 ment that the loss is at least one-third of the valuable metal which 
 they have found, saving only two-thirds. 
 
 Another loss which is worth noticing in the metal producing 
 industry of the west is that of sulphur, arsenic and manganese and 
 other similar materials, and chemicals of various kinds and char- 
 acter. These are disregarded because at the present time there is 
 no profit in undertaking to save them. It is all right to talk of 
 conservation, but no private citizen can afford to spend his own 
 money and operate at a loss for the purpose of trying to conserve 
 the natural resources ; and it is only by the discovery of means 
 which will enable him to conserve the natural resources while 
 working at a profit that any miner will invest money in saving or 
 producing a metal. 
 
 Now as a final effect of this loss in the treatment of the west- 
 ern metals, I believe it is fair to estimate that the $250,000,000 
 worth of metal marketed by those western states and Alaska, rep- 
 resent also an actual loss- of metal which is not marketed, of at 
 least $50,000,000 per year in the lead, copper, zinc, gold and silver 
 alone, besides all the possible by-products. Then when you con- 
 sider the further loss, say ten or fifteen per cent, in the treatment 
 of the simple gold and silver ores, and when you consider the 
 further loss that is probably encountered in such states as Missouri 
 and Wisconsin and Illinois in the treatment of any zinc or lead ore 
 which happens to be in the leastwise complex, I believe it is safe 
 to say that there stands here a problem of loss to our nation of at 
 least $100,000,000 per year of metal valuable in our industries, and 
 which some day will be indispensable to our industries. This is 
 the problem that this congress, as I understand, proposes to present 
 to the Federal Government ; and it would certainly seem to be worth 
 while for the Federal Government to interest itself in the solution 
 of that problem. 
 
 Now we have reached the point, in trying to discuss this ques- 
 tion, of considering what it is proposed to ask the Federal Govern- 
 ment to do. I believe there has been more misunderstanding, more 
 misconception of this, not necessarily of the problem, but of its 
 possible method of solution, than any other question that has come 
 before this assembly. If you will stop and study the problem for a 
 moment you will readily realize that the problem is not one to be 
 solved by the United States Government erecting a building like 
 this, for instance, and setting up machinery there and shipping 
 ore to that building to test it by that machinery. Why, if the Gov- 
 
ORE TREATMENT PROBLEMS 203 
 
 ernment had such a machine today it would send it out to Colo- 
 rado and Utah and mining would go right ahead. We would make 
 other machines just like it. The trouble is that there is no such 
 machine in existence, for the mechanical saving of these metals. If 
 there were, it would be patented by some private individual and he 
 would make a million dollars a year out of it; or if he did not 
 patent it, every mine in the states of Colorado, Washington and 
 Idaho would be using that one contrivance. Therefore, it is not a 
 question of trying to procure the United States Government to erect 
 a plant in Denver, nor in Salt Lake, nor in San Francisco, nor any- 
 where else. The problem is of such a nature that it is going to 
 take years of work by the best metallurgists, by the best scientists, 
 by the best chemists that our Government can afford to employ. I 
 believe that the final solution of this question, will be a chemical and 
 electrical solution and not a mere mechanical solution ; but the work 
 that is to be done must necessarily be done right down in the field 
 where the metals exist. 
 
 Department of Alines Needed. 
 
 We need a department of mining of the United States, to be 
 given money to commence on this work. An appropriation of at 
 least $500,000 should be made for Dr. Holmes' Department, so 
 that he can commence upon the investigation of this problem in 
 every mining district of the west. I do not mean by that each little 
 isolated section, but each considerable section which appears to 
 have problems peculiar to itself. In that way in your State of Utah 
 you would be able to have a representative of the United States' 
 Government go in there in your district, analyzing your ore, watch- 
 ing the effect of each milling process that you are trying to put into 
 effect and he would finally, after a few months' study, be able to 
 make a complete analytical report, not only upon your ore, but upon 
 your processes, and your saving and your problems. The same 
 thing could be done down in the San Juan or at Aspen, or up in 
 Idaho, or in other mining sections. Then after the local or field 
 experiment station work has progressed until some definite informa- 
 tion has been obtained to be written down and compiled and printed 
 as a general working basis, field experiment work would probably 
 be undertaken. Until you have reached that stage, there is little 
 necessity for a central plant; but after you have reached that stage 
 then you can locate your central plant at any point convenient for 
 the mining section ; and then you will know for the first time what 
 you actually want in that central plant or what could be devised 
 for it. 
 
204 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 In the report of our President, in his address this morning 
 (and which I believe will become as important as any public docu- 
 ment which has been promulgated in our country for years) he has 
 outlined to you very clearly the work undertaken and accomplished 
 by the Agricultural Department. I believe it is safe to say that 
 the agricultural experiment station work 'of the United States has 
 saved millions of dollars to the farmers. There is every reason to 
 believe, that if the work of the Federal Government is broadened 
 out, the same kind of work, or the same plan, can be instituted, in 
 the mining department, and just as great results will be accom- 
 plished ; and there is some reason to hope that the results may be 
 accomplished even more speedily. In the agricultural problems the 
 question is generally a matter of long observation, of culture of 
 plants, of watching the habits of insects, and of progress from 
 year to year in undertaking to better the conditions of the industry. 
 In other words, it is a culture or growth rather than a solution of a 
 problem. While in the metal industry these problems are in general 
 few in number, and though difficult of solution, yet they are closely 
 related to each other, and when the solution comes the remedy 
 will be immediate and complete. I believe more is to be accom- 
 plished in the metal mining industry by the Federal Government, 
 for the same amount of money expended, than can be accomplished 
 in the agricultural department. Now if the Federal Government 
 by the investment of a few hundred thousand dollars in establish- 
 ing these experimental stations, first in the districts that need them 
 most, and later in any district in any state where a substantial 
 saving to the people may be effected, if the Federal Government, by 
 such limited investment, can save one-tenth of what is now going 
 to waste of those metals, is it not worth while? $10,000,000 saved 
 by a few hundred thousand dollars investment, should be a sound 
 investment, whether for the Federal Government or any private 
 industry. If the Federal Government can be so successful as to 
 make a complete success in the solution of these problems, we have 
 here presented, which are only a part of the problems of the in- 
 dustry, then it will mean a saving to our nation of at least $100,000,- 
 ooo per year. 
 
 Nation Would Be Benefited. 
 
 Now I believe that every patriotic citizen of this country views 
 with approval the appropriation by our Congress of nearly $100,- 
 000,000 for the purpose of supporting the army, that is, just so long 
 as that army is necessary; and I believe that every patriotic citizen 
 likewise approves the appropriation of something like $125,000,000 
 
ORE TREATMENT PROBELMS 205 
 
 by Congress for the support of the navy, so long as such a navy is 
 necessary. But I want to ask if it is not sound business as well as 
 sound government to make a limited appropriation for the purpose 
 of conserving and saving and producing the metals with which the 
 armies must be equipped, with which the navies must be built, with 
 which homes and cities and industries must be founded. The first 
 effect of any such a move by the government would of course be a 
 profit to the metal mining industry; but I have tried to show you 
 that it is a foundation industry, a basic industry, in these western 
 states, in Illinois, in Missouri, in Michigan, wherever metal is pro- 
 duced ; furnishing the market to the agriculturalist who stands by 
 ready to supply the provisions ; furnishing the market for the fac- 
 tories of the east that must furnish hundreds of articles to every 
 mining section of the western part of the nation. There is some- 
 thing more about this. The Federal Government by undertaking 
 such a campaign as this is not only bringing profit to the industry, 
 it is not only improving the condition of every state which has the 
 industry, it is conferring a direct and substantial benefit upon the 
 whole people of America. Wherever an industry is enabled to 
 produce at a less cost, or what is the same thing in the operation of 
 an industry, if it is enabled to save the entire product instead of 
 losing one-third of it, then the natural, the inevitable, result will 
 be that the industry itself will be satisfied to take a less propor- 
 tion, and the people at large will receive the final product of that 
 industry for a less price. Today your price of copper, your price 
 of lead, your price of zinc is fixed by the necessary charge on it in 
 order to have it produced at a profit. If the United States Govern- 
 ment can so far help the miners, those who are mining and treating 
 this ore, that they can save the entire metallic contents of the ore, 
 more metal will be produced from year to year with the same work, 
 and the people of the United States will receive a fair share of 
 the benefits at a reduction in price, yet the industry itself making 
 the reduction will not lose, it will receive enough to make it pros- 
 perous. 
 
 As an illustration of the mining benefits to the whole people, I 
 want to call attention to the tungsten production for one county 
 in Colorado. Because it found it could produce that article com- 
 merically and profitably, it produces 80 per cent of the tungsten 
 of the United States. That would appear to mean profit to that 
 county alone ; but it does not work that way. The county doe* 
 receive profit, but the tungsten is used to double the durability and 
 value of steel, a certain class of steel that is needed by the people ; 
 
206 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 and now that it has become cheap enough, tungsten is used to make 
 the filaments in the electric lamp, and in turn in every home 
 throughout the land the amount of illumination through the electric 
 lamp .for the same cost of power, for the same expense, is prac- 
 tically doubled through the use of the tungsten filament. The same 
 effect is brought about by the successful mining of vanadium. Now 
 they have been able to reach a stage where they save two-thirds 
 of the vanadium, and by using an exceedingly small proportion or 
 fraction of one per cent of vanadium in steel, it seems to double 
 the value of certain high speed tool machines by doubling the dura- 
 bility. In other words, the benefit comes back to the whole people. 
 
 Annual Waste of Metals Totals $100,000,000. 
 I do not wish to take more of your time, I believe that the 
 members of this convention do not need to be persuaded to vote for 
 a resolution asking Congress for a liberal appropriation for the 
 purpose of enabling the metal miners of the United States to save 
 that $100,000,000 that today is lost. That metal loss is practically 
 a permanent loss. Now, we hear a great deal about conservation. 
 The term is used every place it will apply, and sometimes where it 
 won't apply. I want to tell you, however, that in comparing the 
 conservation of timber and of metal there is something that is well 
 worth considering. If the timber in a certain area of the country 
 be destroyed or be used up, it is possible to re-forest that entire 
 area with better trees than grew there before in 60 to 70 years. In 
 other words, while it is right to save the trees, yet if we do happen 
 to use up the timber in a certain district the loss is not beyond 
 remedy ; it is not one from which we cannot recover. But when 
 we waste the fifty to one hundred millions per year of zinc, lead, 
 copper, tungsten, besides the gold and silver, its loss is practically 
 irretrievable. It is a loss that can not be replaced ; and it is not too 
 much to say, when we are doubling the output of these metal? 
 every twenty years, that whether or not there is danger that we are 
 going to run out of the metal, it certainly is sound, common sense 
 for our Federal Government to cut off that loss if there is any 
 possible way to do it at any reasonable expenditure. As I started to 
 tell you, I believe it would not be necessary to persuade any mem- 
 ber of this convention to vote for such a resolution, but w r e ask you 
 to do more than vote here. I believe it is the duty of the members 
 of the American Mining Congress when they return to their homes, 
 to take up this question with their congressmen and with the friends 
 of their congressmen so that the great metal mining industry 
 (which to a great extent forms the basis of a successful coal mining 
 
ORE TREATMENT PROBLEMS 207 
 
 industry) so that this great metal mining industry may be placed 
 upon a sound and prosperous basis, where the products extracted 
 from the earth will be saved for the benefit of our people and given 
 to them instead of being wasted. 
 
 Just one more suggestion on conservation. It may be right in 
 trying to conserve timber to restrict the use of that timber, but in 
 trying to conserve metals I believe that it is not the right method 
 of conservation. If you extract the metals, such as copper, from 
 the earth and put them in the form of bars, they are practically as 
 indestructible above as they ever were below the ground. The 
 right conservation of metal is not to prohibit the people from freely 
 using metal or to try to impose leasing systems or restrictions upon 
 the metal miners so that they cannot mine the metals. The real 
 conservation of metals is to see that the entire metallic contents of 
 the ore mined is saved and put into form where it is practically 
 indestructible for all time. 
 
 If the Federal Bureau of Mines shall lead the way in solving 
 these important existing problems of the metal mining industry, it 
 will thereby increase the general prosperity of the mining states, 
 promote the welfare of the principal industries throughout all the 
 states, and effect a tremendous saving in the permanent wealth of 
 our country. 
 
Portland Cement and Cement Resources of the Southern States. 
 
 BY T. POOLE MAYNARD,* 
 ATLANTA, GEORGIA. 
 
 The first Portland cement mill established in the South was 
 that of the Virginia Portland Cement Company, at Fordwick, Va., 
 in the year 1900. During the year 1901, the Southern Cement Com- 
 pany at North Birmingham, Ala., began the manufacture of Port- 
 land cement from granulated slag and hydrated lime. Three plants 
 were put into operation during 1903 the Buckhorn Portland 
 Cement Company, in West Virginia ; the Southern States Portland 
 Cement Company, in Georgia, and the Texas Portland Cement 
 Company, in Texas. In 1904, the only plant in Kentucky was 
 constructed. 
 
 The production of Portland cement in the Southern states 
 until 1906 was practically negligible. The Standard Portland 
 Cement Company in Alabama was completed in the year 1906, and 
 during this year seven mills produced 1,804,643 barrels, constitut- 
 ing 3-9% of the total output in the United States. During 1907, 
 the Dixie Portland Cement Company of Tennessee and the Dewey 
 Portland Cement Company in Oklahoma were established, and 
 eight of these plants produced 1,814,470 barrels, or 3.7% of the 
 total output. During 1908, the Security Cement and Lime Com- 
 pany in Maryland and the Oklahoma Portland Cement Company in 
 Oklahoma began operations, and eleven plants produced 2,204,840 
 barrels, or 4.3% of the total output. During 1909, the Southwest- 
 ern States Portland Cement Company in Texas was constructed, 
 and in this year twelve plants produced 3,811,498 barrels, consti- 
 tuting 6.1% of the total output. During 1910, the Atlantic and 
 Gulf Portland Cement Company in Alabama, the Southwestern 
 Cement Company in Texas, and the Norfolk Portland Cement Cor- 
 poration in Virginia all began operations, so that fifteen plants 
 produced 5,717,959 barrels, or 7.9% of the total output. The Tide- 
 water Portland Cement Company in Maryland, the Clinchfield Port- 
 land Cement Corporation in Tennessee, the Piedmont Portland 
 Cement Company in Georgia, and the Choctaw Portland Cement 
 Company in Oklahoma will all be completed during 1911. When 
 these mills are completed, together with the increase in the ca- 
 pacity of the mills in the Southern states now being operated, the 
 
 *Assistant State Geologist of Georgia. 
 
CEMENT RESOURCES OF THE SOUTHERN STATES. 209 
 
 daily capacity of the Southern mills will be 44,880 barrels, so. that 
 the annual capacity will be more than 16,000,000 barrels. 
 
 Maryland has two plants ; Virginia, two ; West Virginia, one ; 
 Kentucky, one ; Tennessee, two ; Georgia, two ; Alabama, three ; 
 Oklahoma, three, and Texas, four. Missouri has four plants, and in 
 the year 1909 the value of Portland cement produced in this State 
 amounted to more than two and one-half million dollars. How- 
 ever, according to the distribution of plants by the United States 
 Geological Survey, Missouri is included along with those of the 
 Central states. 
 
 Geographic Location of Cement Materials of Southern States. 
 
 Maryland, Virginia, North Carolina, South Carolina, Georgia, 
 and Alabama occupy three distinct physiographic provinces, i. e., the 
 Coastal' Plain, the Piedmont Plateau, and the Appalachian Area. 
 This latter area is subdivided into the Appalachian Mountains, the 
 Appalachian Valley, and Cumberland Plateau. The cement ma- 
 terials occur in both the Coastal Plain and in the Appalachian Area, 
 while they are seldom associated in the Piedmont Plateau. Each of 
 the physiographic provinces are characterized by distinct geologic 
 formations, and it is through a knowledge of stratigraphy, namely, 
 the study of the lithology and the sequence of formations that the 
 geologist is able to determine the possibilities in undeveloped 
 regions, and to make known the tonnage available in development, 
 which is one of the most important factors to be taken into consid- 
 eration in the location of plants. 
 
 West Virginia, Tennesse and Kentucky occupy portions of the 
 great Appalachian Valley and the Cumberland Plateau, and Ken- 
 tucky and Tennessee extend over into the great Mississippi Valley. 
 Cement materials are found throughout these states. 
 
 Florida, Mississippi, Louisiana and the eastern part of Texas 
 lie wholly in the Coastal Plain, and are characterized by rocks of 
 post-Paleozoic age. Oklahoma lies in a separate physiographic 
 province west of the Mississippi. The most important cement ma- 
 terials are found in the Paleozoic. 
 
 The Geology of the Cement Materials. 
 
 The Southern states occupy a territory which is characterized 
 by a great variety of calcareous and argillaceous materials eminently 
 suitable for use in the manufacture of Portland cement. The 
 prime factors to be taken into consideration today in the establish- 
 ment of cement mills are (i) the location of the raw materials in 
 close proximity with a suitable fuel supply, (2) adequate transpor- 
 
210 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 tation facilities and (3) good markets. The same factors have been 
 of first importance in the production of pig iron, and it is on ac- 
 count of the association of the raw materials with the fuel supply 
 that the South occupies such a prominent position today in the 
 manufacture of iron and steel. It will be shown below that the 
 raw materials used in the manufacture of Portland cement, along 
 with a suitable fuel supply, occupy a greater area, and are of greater 
 geologic extent in the South than in any other section of our 
 country. 
 
 The pre-Cambrian rocks have been so altered from their 
 original character through the agencies of diastrophism and meta- 
 morphism that we do not expect to find materials contained in these 
 rocks which will become available for use in the manufacture of 
 Portland cement. The Cambrian formations contain both lime- 
 stones and shales, but on account of the great changes which have 
 taken place in these rocks they are seldom available for use. Where 
 the Cambrian limestones have been recrystallizetl into marbles, re- 
 taining their high calcium character, and where the shales have 
 been little altered chemically, they may be found suitable. 
 
 The Ordovician was a period of great limestone deposition, 
 and the argillaceous limestones of the Ordovician provide the raw 
 materials for the greater quantity of the American Portland cement 
 produced today. During Silurian time, the deposits in the South- 
 ern Appalachians consisted essentially of shales and sandstones. 
 In the Northern Appalachians, rocks of more than a mile in thick- 
 ness constitute the next succeeding formations above the Silurian, 
 namely, the Devonian, and they seldom contain rocks suitable for 
 use in the manufacture of cement. This great thickness of rock 
 separates the shales and limestones of the Silurian and the great 
 limestone deposits of the Ordovician from the overlying Carbonifer- 
 ous, which contains the only available fuel supply. The Devonian 
 rocks thin out toward the South. The Carboniferous rocks in the 
 South contain not only the coal deposits, but also great thicknesses 
 of limestone and shale and lie almost immediately upon the shale 
 deposits of the Silurian, and in dose proximity to the limestone 
 deposits of the Ordovician. On account of the great thickness of 
 the Devonian and the scarcity of the cement materials in the 
 Carboniferous in the Northern Appalachians it is readily seen why 
 plants have not been located where the raw materials are in juxta- 
 position with the coal deposits, while in the Southern Appalachians 
 the cement materials of the Ordovician and Silurian He in close 
 proximity to the fuel supply contained in the Carboniferous. 
 
CEMENT RESOURCES OE THE SOUTHERN STATES. 211 
 
 Less is known regarding the cement materials of the Coastal 
 Plain than of the other physiographic provinces. Considerable 
 stratigraphic work has been done in many of the Southern States, 
 both by the United States ( ieological Survey and the state sur- 
 veys, but with a few exceptions detailed economic study of the 
 cement materials has never been taken up. The Miocene marls and 
 Quaternary clays are suitable for use in the manufacture of 
 cement at many localities in Virginia. In Alabama, the Selma 
 Chalk and residual clays occur together, and are known to be 
 eminently suitable, while in Texas calcareous and argillaceous ma- 
 terials in the upper Cretaceous afford the source of most of the 
 cements. 
 
 Fuels of the Southern States. 
 
 The areas designated as the Eastern and Lehigh districts in- 
 clude plants in Pennsylvania, New Jersey, New York and Massa- 
 chusetts. In this whole 'area the bituminous coals underlie only 
 14,200 square miles, and the coal fields are confined entirely to 
 Pennsylvania, and can supply the Northern portion of the Southern 
 field as cheaply as the states which lie to the north of Pennsylvania. 
 The Southern states. are underlain by 80,866 square miles of bitu- 
 minous coal, and the 23,000 square miles of 'coal in Missouri is 
 within easy reach of the Southwestern states. The Central states 
 contain 101,320 square miles underlain by coal, including Mis- 
 souri. When the location of a mill in relation to the fuel supply is 
 taken into consideration it is readily seen that the South contains 
 an area seven times as great as that of the Eastern states, and as 
 great an area as the Central states. ^ 
 
 In Alabama, Mississippi, Louisiana and Texas the lignites 
 underlie broad areas, and they are being extensively used in Texas 
 at the present time as a fuel supply for the manufacture of cement. 
 
 The Value of Portland Cement in 
 
 The average price per barrel of Portland cement in 1910, ac- 
 cording to the figures reported to the United States Geological 
 Survey for gray Portland cement was 88.9 cents per barrel, and 
 $2.86 per barrel for white Portland. This represents the value of 
 the cement in bulk at the mills including the labor cost of packing, 
 but not the value of the sacks or barrels. 
 
 The average price of Portland cement in the Lehigh district 
 in 1910 was 72.7 cents per barrel ; in the Eastern states the average 
 value was 75.7 cents per barrel ; in the Central states the average 
 value was 91 cents per barrel. In other words, the Southern oper- 
 
212 PROCEEDINGS AMERICAN MIXING CONGRESS 
 
 ator receives 21.3 cents more per barrel for his cement than the 
 operator in the Lehigh district; 18.3 cents more than the operator in 
 the Eastern states, and 3 cents more than the operator in the 
 Central states. It is evident from the above facts that the operator 
 who can produce cement in the South as cheaply as in the Lehigh 
 district has a considerable advantage. The extreme Western states 
 have not been discussed, as they are not competitors with the plants 
 east of the Rocky Mountains. 
 
 Individual States. 
 
 Maryland was the first of the Southern states to realize that 
 a careful stratigraphic study of her argillaceous and calcareous 
 materials would be of the greatest value in the subsequent investi- 
 gation of her undeveloped cement materials. It was largely, through 
 these investigations that she has today two Portland cement plants. 
 
 Maryland has 445 square miles of coal. The close proximity 
 of the calcareous and argillaceous materials to one another and to 
 a suitable fuel supply, together with her excellent railway and ocean 
 transportation facilities to ready markets combine to make her 
 ideally situated geographically for the distribution and cheap pro- 
 duction of cement. 
 
 Virginia is underlain by 1,900 square miles of coal, 150 square 
 miles of which lie in the Richmond basin, 200 square miles in .Mont- 
 gomery County, and 1,550 square miles in the Appalachian area. 
 Virginia is fortunate in having available cement materials in the 
 Coastal Plain in close proximity to the coal deposits of the Triassic. 
 
 West Virginia jias 17,000 square miles of bituminous coal, be- 
 sides great areas containing 'gas and oil. The association of the 
 raw materials with the great fuel supply assures her a bright future. 
 
 Kentucky is underlain by 16,670 square miles of coal, 10,270 
 square miles of which occupies the Eastern Area and is a part 
 of the great Appalachian field; 6,400 square miles of coal occurs in 
 the Western Area and occupies a portion of the great interior 
 field. Little detailed knowledge is- at hand in regard to her cement 
 materials. 
 
 Tennessee is underlain by 4,400 square miles of bituminous 
 coal, and contains great areas of limestone and shale in close 
 proximity with the coal deposits. 
 
 The investigation of the cement materials of Georgia is now 
 under way, and the detailed economic study of the whole of North 
 Georgia will be completed in the spring of 1912. The investiga- 
 tion shows great quantities of cement materials in the Carbonifer- 
 
CEMENT RESOURCES OF THE SOUTHERN STATES. 213 
 
 ous, the Silurian and the Ordovician. The coal fields of Georgia 
 occupy 167 square miles, and the coals of Tennessee and Alabama 
 are available. 
 
 Alabama has 14,430 square miles of coal associated with suit- 
 able limestones and shales, and the lignite deposits of her coastal 
 plain may make her cementing materials in this area available. 
 
 Oklahoma is underlain by 10,000 square miles of coal, besides 
 great quantities of oil and gas in close proximity to her cement 
 materials, and with further development in transportation facilities 
 her future in the manufacture of Portland cement will be very- 
 great. 
 
 Texas has 8,200 square miles underlain by bituminous coal 
 and 2,000 square miles underlain by lignite, and is fortunate in 
 having the fuels associated with available cement materials. 
 
 North Carolina, South Carolina, Mississippi and Louisiana 
 have no cement plants at present. However, as the demand becomes 
 greater and the raw materials in these states become better known 
 development will follow. 
 
 It is easy to draw conclusions from the facts presented. The 
 future development of the cement industry depends on the same 
 factors as that for the manufacture of pig iron and steel. In no 
 other section of the country is there such a vast area where the 
 calcareous and argillaceous materials occur together associated with 
 .such a great fuel supply. For this reason the South is likely to 
 surpass all other sections in the manufacture of Portland cement. 
 
Some Reflections on the Disposal of Public Coal Lands. 
 
 BY DR. JAMES DOUGLAS, 
 NHW YORK CITY. 
 
 President Roosevelt in a message to Congress on December 
 17, 1906, on the subject of the public land laws, says: 
 
 "The present coal law, limiting the individual entry to 160 acres, 
 puts a premium on fraud by making it impossible to develop certain 
 types of coal fields and yet comply with the law. It is a scandal 
 to maintain laws which sound well, but which make fraud the key 
 without which great natural resources must remain closed." 
 
 Five years have passed since then, but beyond indicting men, 
 innocent and guilty, as malefactors, and withdrawing coal lands 
 from entry* and exploitation, no remedy has been applied which 
 would cure the evident defects in the coal land laws. We all know 
 
 ^ 
 
 the particular provisions under which in the past entrymen could 
 secure coal lands at a price of $10.00 to $15.00 per acre, depending 
 upon the distance of the coal from a railroad, and the absurd re- 
 striction of 1 60 acres of land, on which coal was proved to exist, 
 to each entryman, and that at the utmost only two entrymen could 
 combine to work in common. It was a crime under the act for an 
 entryman to secure possession with the intention of selling; though 
 of course when the land became his, under patent, he -could dispose 
 of it as he might see fit. 
 
 In any revision of the coal land laws, three questions will have 
 to be considered: 
 
 First. The quantity which should be allotted to a single entry- 
 man or corporation. 
 
 Second. The terms under which government should part with 
 their coal resources, whether by out and out sale, by lease, or on 
 payment of a royalty. 
 
 Third. The price which should be paid either by a purchaser, 
 or a renter, or a worker on royalty. 
 
 The decision of these questions is more or less interdependent. 
 If a certain amount of coal must be secured in advance to warrant 
 the expenditure of the capital necessary to mine the coal, and to 
 handle it as coal or coke commercially when brought to surface, 
 and if this outlay is to be repaid, with a reasonable rate of profit 
 to cover interest and risk, the operator must start with the pros- 
 pect of a certain minimum supply of coal. What that acreage 
 
DISPOSAL OF PUBLIC COAL LANDS. 215 
 
 should be depends upon the size of the beds, and the initial outlay 
 to utilize to the best advantage the property. 
 
 In order to get material for discussion I will take as data for 
 the initial solution the production per acre of coal and the ex- 
 penses incurred in erecting the plant of the Stag Canon Fuel Com- 
 pany at Dawson, New Mexico. The mines and plant of the Stag 
 Canon Fuel Company (formerly the Dawson Fuel Company) were 
 purchased by the present owners in 1905. The mines had been 
 opened in 1902, and in addition to the mine equipment a wooden 
 washery and 125 beehive ovens were erected. 
 
 The surface area of the property owned by the Stag Canon 
 Fuel Co. is 52,152 acres. The coal is assumed to underlie 35,028 
 acres. Since the mine was opened in 1902 there have been ex- 
 tracted 6,981,220 tons of coal from a seam which varied in thick- 
 ness from four feet to seven feet. The area worked over is 960 
 acres. Yet in reality this coal has been extracted from 650 acres. 
 The difference between 650 acres and the total acreage worked 
 over represents unprofitable ground, through faults, pinching of 
 the coal seam or decline in the quality of coal below a profitable 
 margin. 
 
 The production of coal and coke of the Dawson Fuel company 
 and its successor, the Stag Canon Fuel company, has been as 
 follows : 
 
 Year Tons Coal -Tons Coke 
 
 1902 May to Dec 97,840 4,133 
 
 1903 371,774 30,325 
 
 1904 380,664 39,308 
 
 1905 508,008 57,357 
 
 1906 663,142 85,211 
 
 1907 871,101 165,975 
 
 1908 850,318 230,756 
 
 1909 1,032,239 283,964 
 
 1910 1,302,092 298,685 
 
 1911 to June 30 483,321 129,351 
 
 Totals 6,560,499 1,325,065 
 
 Two Thousand Acres Explored. 
 
 Approximately 2,000 acres have been explored. One of the 
 drifts from No. 2 entry extends for a distance of one mile from 
 surface to an air shaft from surface. In addition, two diamond drill 
 holes have been extended from the surface through the coal bed. 
 One in Section 27, Township 29 North, Range 20 East, with a depth 
 of 217 feet, shows only three feet of coal; the other hole in Section 
 34, Township 29 North, Range 20 East, at eighty-three feet depth, 
 shows two feet and two inches of coal. We have determined, there- 
 
216 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 fore, that our thickest coal bed,. adjacent to its outcrop, has yielded 
 7,350 tons per acre ; that 30% of the ground worked over has been 
 unprofitable, and that boreholes show a decrease in thickness as 
 the principal seams extend under the range. 
 
 It would probably, however, be fair to assume, from our ex- 
 periences and that of others, taking into account the eventualities 
 already encountered by us, and the risks of mining from explo- 
 sions and other accidents, that as depth is attained the quantity 
 of coal in this or any large given area of unexplored coal lands 
 should be reduced to one-half of its maximum proved quantity, in 
 estimating its final value and by its production of coal. On the 
 above assumption, the 35,000 acres, multiplied by 8,000 and divided 
 by two, contain 1,400,000,000 tons, or, on a production of 1,000,000 
 tons per year, 140 years' reserve. These lands were on an old 
 Spanish grant the Maxwell. No such quantity of land or quan- 
 tity of coal is needed to induce any corporation to engage in coal 
 mining. But in the following estimate I assume that 50 per cent 
 should be deducted from the estimated coal contents of any given 
 area of coal land, in determining its value and that ten thousand 
 acres, or 40 years' supply at 1,000,000 tons per annum, is the 
 minimum which should be allowed to a corporation willing to erect 
 safe and economical works and equip its mines with every known 
 safety appliance. 
 
 Value of Coal in Situ. 
 
 The value of coal in situ may be assumed to be determined by 
 the royalty demanded in any given district for coal to be extracted. 
 In Colorado, uncomplicated by store licenses and so forth, this is 
 about eight (8) cents per ton. If, therefore, an acre in the Trini- 
 dad district yields on an average 8,000 tons of coal, and the royalty 
 is eight cents per ton, the gross value of the coal in the ground is 
 $640 per acre. 
 
 If the coal were sold out and out, the compound interest cal- 
 culated on the price of the number of years necessary to work 
 out an area large enough to return the purchaser a fair remunera- 
 tion for his investment, compensation for his risk, and profits on 
 the enterprise as a business venture, must be deducted. 
 
 Original Outlay Costly. 
 
 The original outlay includes the cost of his surface equipment, 
 which in the West, where the government coal lands lie, must be 
 costly if it is to be efficient. 
 
 Our experience at Dawson has been that the cost of the sur- 
 
DISPOSAL OF PUBLIC COAL LANDS. 217 
 
 face plant of a coal mine is by no means a negligible quantity. 
 The wooden tipple and wooden washery, in existence when we 
 bought the plant, were liable to be burned, and both were defective 
 in structural details. As our company believed in the long life of 
 the mines, it decided to erect steel tipples, with screens for accu- 
 rate sizing, and a steel washery. The washery was designed by 
 Dr. Ricketts, after visiting the best equipped coal mines in England 
 and on the continent of Europe. But though complete in itself, 
 since its erection it has been found necessary to increase its capacity, 
 in certain departments, in order to recover from the jig waste some 
 marketable coal, by further crushing and washing. 
 
 There being no profitable market for by-products, the proposal 
 to erect retort ovens was dismissed. But as we anticipated de- 
 mands for power, besides those of the mining company itself, 446 
 und'erflue ovens have been erected. As yet only 218 discharge their 
 gases 'under eight Sterling boilers of 300 horsepower each. The 
 heat from each oven has been proved to evaporate steam sufficient 
 to generate ten boiler horsepower. 
 
 The power plant comprises four cross-compound Nordberg- 
 Corliss engines 19 and 32 by 36 inches, direct-coupled to alter- 
 nating-current generators of 2,300 volts, 400 kilowatts each. The 
 four engines run in parallel. 
 
 The current from the power house is transmitted by insulated 
 wires at 2,300 volts to rotary converters at substations, where it 
 is converted from 2,300 volts alternating current to 260 volts direct 
 current. 
 
 There'are three substations. One at Lorita, near Mine No. 5, 
 which is equipped with one 2OO-kilowatt rotary converter, 260 
 volts, 768 amperes. The substation at Aline Xo. 4 is equipped 
 with two 2OO-kilowatt rotary converters, 260 volts, 768 amperes. 
 The substation between Mines Nos. I and 2 has an equipment 
 similar to that of Mine No. 4. 
 
 Cost of Plant. 
 
 The cost of the plant already installed has-been as follows: 
 
 Cost of two steel tipples and one wooden one $ 82,842.32 
 
 Cost of wnshery 426,830.32 
 
 Cost of power plant 277,090.78 
 
 Cost of ovens 773,130.85 
 
 Cost of yard tracks, locomotives, etc 190,671.13 
 
 Cost of subsidiary equipment, such as pumps, operated by 
 
 transmitted electrical power, etc 228,698.83 
 
 Total $1,979,264.23 
 
 The item for yard tracks includes not only a line of railway 
 of three miles from Mines Nos. I and 2, and another of five miles 
 
218 PROCERDIXCS AMRRTCAN MTXIXG 
 
 from Mine No. 5, but some eleven miles of track to serve the ovens 
 and handle and store the coal and coke and washery waste. The 
 company considers it better policy to own its own yards than to 
 allow any railroad to approach its mines and tipples and thus de- 
 prive itself of the possibility of competition in transportation. 
 
 I have not included the cost of workmen's houses, amusement 
 hall, hospital, schools, and so forth, as these are necessary accom- 
 paniments o-f every well-equipped western coal mine ; and some 
 of them are expected to return revenue. The plant may seem to 
 have been needlessly expensive. But having suffered from fire 
 during our own short experience and anticipating a long life for 
 our mines, we built of incombustible material. 
 
 However, taking the above facts and arguing on the above 
 assumptions, we reach the ' following conclusion : 
 
 Estimated value of coal land based on one acre of land containing 8,000 
 tons of coal. 
 
 10,000 acres land containing 80,000,000 tons coal 
 
 Deduct. 50% for risk of mining, land will yield 40,000,000 tons coal 
 
 Net yield per acre 4,000 tons coal 
 
 Royalty per ton 8 cts. 
 
 Royalty per acre $320 
 
 Number of tons mined per year 1,000,000 tons 
 
 Years to exhaust. . 40 
 
 Total Per ton coal 
 
 10,000 acres @ $320.00 acre $3,200,000 = 8 cts. 
 
 Cost of plant 1,979,264 = 4.94 cts. 
 
 Interest on plant investment @ 5% per an- 
 num equals $98,963 per year for 40 years 3,958,520 = 9.90 cts. 
 
 Total Cost $9,137.784 = 22.84 cts. 
 
 Payment of 10,000 acres in advance. 
 
 One dollar compounded at 6% per annum for 40 years $10.29 
 
 Royalty of $320.00 -r $10.29 equals present worth per acre 31.10 
 
 Total Per ton coal 
 
 10,000 acres @ $31.10 per acre $ 311,000 0.78 cts. 
 
 Cost of plant 1,979,264 4.94 cts. 
 
 Interest on plant investment (a 5% per an- 
 num equals $98,963 per year for 40 years 3,958,520 9.90 cts. 
 
 Total Cost $6,248,784 15.62 cts. 
 
 Fi.ved Changes Should Be Taken Into Account. 
 
 In determining the cost of coal the fixed charges in this case 
 estimated at 15.62 cents per ton should be taken into account as 
 well as the operating charges. Inasmuch as the plant has to be 
 maintained in perfect working order till the exhaustion of the 
 mines, it seems to me that the cost, as well as the interest on the 
 cost, generally represented by interest on a bonded debt, should be 
 included in the fixed charges. This certainly should be done unless 
 it is extinguished by a sinking fund during the life of the mine. 
 
DISPOSAL OF PUBLIC COAL LANDS. 219 
 
 
 
 The past cost of producing and marketing coal, as compared 
 with the future cost, is not the subject of the present discussion; 
 but I cannot resist referring to two items which must hereafter 
 make it notably higher than it has been. We have been attacking 
 the outcrop of our coal seams, and avoiding deep mining. With 
 such stupendous resources this has been possible and perhaps pru- 
 dent, but we are reaching a period when this very economical pro- 
 cedure must cease, and we, arid the public which we serve, must 
 pay for the fuel the difference between the cost of robbing the out- 
 crop and mining at a mile or more under cover. Moreover, the 
 public very properly demands that our ratio of deaths and of acci- 
 dents shall approach that of foreign mines. It has been admittedly 
 high, and will continue to be high, despite all precautions. Not 
 only is our labor less skilled than that of the old coal districts of 
 Europe, but it is more greedy of gain and more or less infected by 
 the American spirit of risk, which makes all of us willing to im- 
 peril our lives by rushing across the street before a motor or a 
 street car rather than lose a second while it passes us. The instruc- 
 tions given to the miner by the foreman to put in a prop are de- 
 liberately disobeyed because the miner prefers risking his life to 
 foregoing the extraction of half a ton of coal. 
 
 It is because of this tendency that we must alter our methods, 
 though the alterations increase the cost of coal. This increase is 
 estimated at from 8 to 10 cents per ton. It must cover increased 
 supervision to enforce the observance of rules, electric firing, sepa- 
 rate manways, where electric or compressed air transportation is 
 employed ; more perfect and durable systems of supporting the 
 roof, sprinkling and spraying to reduce the danger of explosion, 
 and other admitted improvements which are being adopted without 
 government compulsion and likely to be made compulsory. Add 
 this to the fixed charges, and the sum means either heavy loss to 
 the operator or increased price to the consumer. 
 
 Alternatives Open to Government. 
 
 But to return to the more immediate subject of my address, 
 the other alternatives open to government for the disposal of its 
 coal lands are the rental or the royalty systems. From colonial 
 times actual ownership has been preferred to renting. The ex- 
 periment of renting the mineral lands was tried and abandoned 
 in the early days of Lake Superior mining, but renting was the 
 Spanish method and still works well in Mexico and in South Amer- 
 ica, where no limit is set to the quantity of mineral, land which can 
 be acquired by a single lessor. 
 
220 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 If the government should lease the coal, reserving the sur- 
 face rights, and the same requirements as to initial outlay were 
 either imposed or voluntarily acquiesced in, the rental being a mere 
 annual payment and not imposed on the producer in advance, would 
 be calculated on the acreage value of the coal, exclusive of the 
 deductions for discount. - 
 
 But in considering the other alternatives, viz., allowing the 
 coal to be mined on royalty or rental, objections may be raised 
 against both systems. If eight cents a ton be a fair valuation of 
 coal in the ground, the government would seemingly get all it was 
 entitled to by accepting that amount ; but under this system the 
 miner has every inducement to mine cheaply and thus wastefully, 
 and to rob the mine of its best and more profitable coal. 
 
 Under the rental system, which could be based on the calcula- 
 tion of the coal in a given area, less the deductions we have above 
 made, the lessor, as he approached the period of exhaustion, would 
 be paying an exorbitant figure on the balance of value and would 
 be inclined to evade payment. 
 
 Would not a fair system be to charge a small rental on the 
 total area and a reduced royalty on the coal extracted? Assuming 
 10,000 acres to be the required area and eight cents per ton to be a 
 fair royalty, would not a rental of say $1.00 per acre on the gross 
 acreage, or say $10,000 per annum, and four or five cents per ton 
 royalty, be equitable? This would secure to the miner his neces- 
 sary reserves and give to the government the value of the coal 
 in situ. 
 
 The above suggestions are thrown out as subjects for dis- 
 cussion ; but the conclusion forces itself strongly on our conviction 
 that if a satisfactory revision of our land laws is to be reached, 
 the farmer, the miner, the lumberman and the banker must be 
 consulted before the politician acts. The coal miner alone kno\vs 
 the conditions and restrictions under which coal can be extracted 
 with safety to the workman, with profit to the operator and justice 
 to the public ; the metal miner and the mining engineer alone ap- 
 preciate the impossibility of literally living up to the letter of the 
 old mining law, and the lumberman is certainly entitled to be heard 
 before such sweeping judgments are passed upon him as we have 
 heard pronounced of late years. Representatives -of all the in- 
 terests who actually occupy the public lands should sit upon a 
 committee to suggest revision of the laws affecting the sale and 
 the use of the public lands after sale, if such amended laws are to 
 be practically applicable. 
 
Condition of the Coal Mining Industry of Oklahoma. 
 
 BY JAAIKS KLrLIOT, 
 .MA LESTER, OKLA. 
 
 This subject has been so thoroughly and ably covered by Mr. 
 Bush that I do not think that it will be possible for me to shed any 
 additional light on the subject, other than that which pertains to 
 Oklahoma, to which field my labors have been almost entirely con- 
 fined as an operator of coal mines. It might be well to state here, 
 however, that my first experience in this line of business was that 
 of a miner, not an operator. 
 
 Oklahoma is one of the few states in which the individual coal 
 operator is still in existence, owing to the fact that it is one of the 
 new states of the Union, and to a large extent, under Government 
 supervision, which has made it almost impossible for strong com- 
 binations to form. The capital invested in the business, therefore, 
 in comparison with that invested in other fields, is vastly less, 
 owing to the fact that there is very little or no capital invested in 
 coal lands, most of it being expended in machinery and equipment. 
 Our coal lands, unlike those of other states, are the property of the 
 Indians and are leased to the various coal companies by the United 
 States Government, in tracts of nine hundred sixty acres each, on a 
 royalty of eight cents per ton run-of-mine basis. The capital in- 
 vested in machinery and equipment throughout the state (which I 
 estimate to be 'about five million five hundred thousand dollars) 
 is small, which is accounted for by the fact that under the terms 
 of the lease, all property, with the exception of the machinery and 
 tools, reverts back to the Indian Nations at the expiration of the 
 leases. Elaborate plants for the mining and undercutting of coal 
 are rarely installed, owing to the fact that in many cases machines 
 are impractical, owing to the heavy pitch of the coal veins, and in 
 cases where machines are practical, the small differential of from 
 eleven to fourteen cents granted to the operator by the Union min- 
 ers, along with their prejudices against them, has not warranted 
 their installation. 
 
 The amount of capital invested in machinery and equipment 
 for one hundred tons daily production, varies from ten thousand 
 to fifty thousand dollars and depends entirely upon local conditions, 
 which are varied, being regulated by the pitch and thickness of the 
 vein, general roof and bottom conditions, pumping, haulage, etc. 
 
222 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 In treating on the subject of the cost per ton for the last year, 
 it will be necessary for me to sub-divide the state of Oklahoma into 
 four districts, in accordance with the terms of our wage scale, and 
 the character of the coal, which are, namely : Henryetta, Coalgate, 
 Bokoshe and McAlester. The quality varies from low grade bitu- 
 minous in one of these districts, to very high grade bituminous in 
 another, still another district producing a semi-bituminous grade 
 commonly known as semi-anthracite, or Arkansas quality. The cost 
 of production, mine run basis, ranges from a minimum of one 
 dollar and forty cents in the semi-bituminous in the Bokoshe field, 
 to a maximum of two dollars and fifty cents in the McAlester 
 district. 
 
 Our average cost per ton for the last five years has ranged, 
 approximately, from one dollar and thirty cents to two dollars and 
 forty cents, depending upon the district, and has been steadily in- 
 creasing, owing to the advance in wages granted to labor ; the 
 increased cost of material and supplies ; the competition of oil and 
 gas, and the introduction of foreign coals into our natural market. 
 . As stated above, the cost of mining a ton of coal in Oklahoma 
 has ranged from one dollar and thirty cents to two dollars and 
 forty cents per ton, eighty-eight and one-half to ninety per cent of 
 which has been paid out to labor, the remaining ten to eleven and 
 one-half per cent being paid out for material, supplies, etc. The 
 cost of administration, which includes offices, salaries, office, ex- 
 penses and selling costs, for last year amounts approximately to 
 twenty cents per' ton. For a period of five years this cost has 
 ranged from fifteen to twenty cents per ton. 
 
 The average selling price at the mines for the year 1910 
 ranged from one dollar and fifty cents in the Bokoshe field to two 
 dollars and sixty cents per ton in the McAlester field. For the past 
 five years the same average price has prevailed, with the exception 
 of the year 1907, when for a short period the prices ranged from 
 one dollar and thirty-five cents to two dollars and fifty cents. 
 
 In estimating the increased cost necessary to safeguard the 
 lives of the miners, as demanded by the public at large, I will ac- 
 knowledge that I do not think, if wise and uniform laws were to be 
 enacted and enforced, that there would be any increased cost in 
 connection therewith ; in fact I am of the opinion that there would 
 be a considerable saving in the Oklahoma field. The great diffi- 
 culty we have had to contend with was the failure on the part of 
 the state legislature, in enacting the mining laws of Oklahoma, 
 to co-operate or discuss a single section of the present law with the 
 
COAL MIN1\(, INDUSTRY np OKLAHOMA, 223 
 
 operators, consequently our mining laws are inadequate and im- 
 possible of enforcement. They bear little or no relation to the 
 field in particular, being a conglomeration of the most radical 
 mining laws of other states. If more uniform and practical laws 
 could be enacted, and some basis of uniform taxation, along the line 
 of that recently adopted in the state of Washington, in full settle- 
 ment of personal injury cases, I am satisfied there would be con- 
 siderable saving in the cost of producing a ton of coal. 
 
 Under the present system of mining in Oklahoma, the recovery 
 of the entire vein worked is not in excess of fifty-five per cent. This 
 is due to the extravagant system of room and pillar mining adopted 
 in this field, and up to this time permits of no change, owing to 
 unfavorable labor conditions. 
 
 As I have stated above, there is little or no capita.1 invested by 
 the operators in coal lands in Oklahoma, therefore it has not been 
 customary to carry an item of depreciation in reference to the 
 leases. While the prices received for coal in this field may seem, 
 high to the members of this convention, they must bear in mind that 
 our working time is confined to six months of the year, the aver- 
 age mine not running more than from one hundred to one hundred 
 twenty days, consequently our cost of production and the price 
 received per ton of mine run coal is greatly in excess of that of 
 neighboring states where operating and marketing conditions are 
 much more favorable. In order to meet expenses of operation and 
 to make a fair return on the capital invested, our coal should bring 
 from one dollar and sixty-five cents to two dollars and eighty-five 
 cents per ton of mine run coal. 
 
 Owing to the adverse market conditions existing in Oklahoma, 
 over forty per cent of our coal is necessarily sold below cost to 
 the various railroad companies of the southwest. This is done 
 for the purpose of keeping our mines open during the summer 
 months, and to enable us to meet the winter demands. 
 
 In conclusion, it is my opinion that if uniform laws could be 
 adopted throughout the United States, covering the operation of 
 mines, the relationship between employer and employe, relating to 
 terms of employment, a workmen's compensation law, and a Na- 
 tional Board of arbitration to settle disputes, I am satisfied, Mr. 
 Chairman and Gentlemen, that it would operate to the benefit, not 
 only of the miner and operator, but to the country at large. 
 
The Economics of the Coal Industry. 
 
 BY W. L. ABBOTT. 
 CHICAGO, ILLINOIS. 
 
 Prospectors are said to have great faith in the blind chance 
 which leads the tenderfoot in the selection of the spot where he 
 first strikes his pick into the ground to -develop a profitable mine, 
 and I presume it is because of my ignorance of the subject that I 
 was invited here this afternoon to discuss the economics of the 
 coal business. If any of you would have an opportunity to arrest 
 a policeman who has pinched you for speeding, or to treat the teeth 
 of the dentist who has given you many unpleasant hours in his 
 chair, you may appreciate one of the reasons why I accepted the 
 invitation. (Laughter.) 
 
 For twenty-seven years or so I have bought and burned coal 
 for electric 'lighting, and J have come to be firmly convinced that 
 the profits of that business would be considerable were it not for 
 the great amount of the gross income which we have to turn over 
 to the man who furnishes us the coal. (Laughter.) Because of 
 that fact I don't think that I can discuss the question from your 
 viewpoint. I, therefore, will not try to do so, but will discuss the 
 question from the viewpoint of the consumer. 
 
 The term "Coal Baron" was coined several years ago, and 
 from the fact that it is now falling somewhat into disuse we 
 may assume that had it not been coined when it was, it never 
 would have been. Why is it that with cheaper methods of pro- 
 duction and with expanding markets and prices generally on the 
 increase that the coal operator is neither happy nor prosperous. 
 This is a question which capitalists and coal operators are asking. 
 I .don't know that I have a solution for the question, but some 
 circumstances have come under my observation which probab'ly 
 have a bearing on it. 
 
 In the summer of 1902 the anthracite coal strike was on. The 
 effect of that long drawn out struggle was, as you know, to create 
 an apprehension that there would be a great shortage of coal during 
 the following winter. The coal operators were not at all slow 
 to seize upon this condition to stamp'ede the market. The prices 
 went soaring to unprecedented height, and their profits likewise. 
 Many of these operators, as is customary, had a great portion of 
 their production tied up in contracts. Some of these contracts, be it 
 
THE ECONOMICS OF THE COAL INDUSTRY. 225 
 
 said with credit to the operators, were religiously kept; others, 
 however, were cast to the winds. I remember an incident -in my 
 own experience with an operator with whom I had contracted for a 
 number of years, and whose deliveries had been in the main satis- 
 factory. I began to have trouble in getting the deliveries pre- 
 scribed in his contract. This he laid to one cause and another. First 
 there was an accident in the mine; then there was an election, then 
 there was a holiday, then there was another day to sober up; but 
 most of all he couldn't get cars from the railroads to keep the mine 
 running. I finally sent a man to the mine to watch conditions there, 
 and learned that he was getting cars and the mine was running 
 regularly, but someone else was getting the coal. Armed with these 
 facts I went to his office and forced him into the corner, where- 
 upon he good naturedly laid aside all further pretense and answered 
 in about these words : "Abbott, I have sold my mine, to be delivered 
 next April. I am making $2,400 a day, and I don't care a d m." 
 Well, I don't know what the effect would be on me if it were $2,400 
 a day profit on one hand and a mere business promise on the other 
 hand, but I know the strain would at least be very great, and so it 
 was with many other operators. 
 
 Following the season of prosperity during the winter of 1902 
 and 1903 came a long period of depression, four very lean years, 
 during which the operators were looking backward to the golden 
 harvest that had been and forward to a similar harvest which they 
 hoped would be. The occasion came preceding the end of the 
 biennial agreement with the mine workers, a period which termi- 
 nated with March, 1906. During the preceding winter the coal 
 market was again stampeded with tales that there was going to 
 be a great coal shortage, and the prospective shortage in April, 
 through some psychological process which was worked with great 
 success, was made to raise prices in the preceding December, and 
 for three months the . operators again reveled in prosperity. This 
 stratagem was so successful that it was worked again two years 
 later, and now the same specter is being groomed for an encore dur- 
 ing the coming winter. 
 
 The immediate result of these high coal prices has been to 
 increase the amount of capital invested, the number of mines, and 
 the mining cost. The ultimate result, however, has been to decrease 
 the profits of the business, the output of Illinois mines, the tonnage 
 of coal produced per man, and his average annual wage. Such has 
 been the effect of the biennial raids on coal business by labor, if not 
 acquiesced in, at least taken advantage of by the operators as an 
 
226 PROCEEDINGS AMERICAN MIXING CONGRESS 
 
 opportunity to in turn raid the consumer. The operator has had a 
 three months' spree, followed by twenty-one painful months of 
 sobering up. In the end he finds that over the entire period he has 
 lost money, and his business nistead of being one of conservative 
 and continuous profit is subject to short periods of high freshets 
 and long periods of exceeding low water, and all because of an 
 apparent inclination on the part of the operator to raid his cus- 
 tomer under cover of labor disturbances, rather than to protect the 
 customer and the coal business generally from such onslaughts. 
 
 It is easy to suggest a remedy, but to carry it out is quite 
 another matter. It seems to me, however, that no relief is possible 
 until the operators are able to control their labor, which will not 
 be until they are able to control themselves, and this will only 
 come to pass with extensive combinations which will eliminate 
 small interests and result in large holdings, making it possible to 
 effect a strong organization able to dominate the coal business 
 and deal with labor on something like equal and equitable terms; 
 and if the history of the petroleum business is any criterion, the 
 for capital and for labor and, greatest of all, for the consumer, 
 greater and more powerful this combination, the better it will be 
 
 I thank you, gentlemen, for your kind attention. (Applause.) 
 
The Operation of the Mine-Run Law in Arkansas. 
 
 BY DR. A. H. PURDUE, 
 FAYETTEVILLE, ARKANSAS. 
 
 It was not until I was ready to take the train for this Congress 
 that a program reached me bringing the first information that I 
 was expected to present a paper on Conservation in the Coal In- 
 dustry. Because of the brevity of the time for preparation, I shall 
 take the liberty of deviating somewhat from the 'subject assigned 
 me and confine my statements to a single phase of conservation in 
 the coal industry with which I happen to be familiar the one in- 
 cluded under what is known as the mine-run law. Furthermore, I 
 must limit myself to the operations of the mine-run law in Arkan- 
 sas, for I know but little of its results in other states. 
 
 Somewhat more than two years ago, the Geological Commis- 
 sion of Arkansas directed me as State Geologist to have prepared 
 a report on coal-mining in the state. The work of the report was 
 entrusted to A. .A. Steel, Professor of Mining in the University of 
 Arkansas. While I do not wish to shirk any of the responsibility 
 for the statements herein contained, all fairness requires me to say 
 that they are compiled from the report by Professor Steel. This 
 report, when completed, will be comprehensive, and though its 
 organization does not indicate such, it treats the subject of coal 
 mining in 'its relation to the engineer, the miner, the operator, the 
 public and the state. In the course of his work in collecting data 
 for the report, Professor Steel visited, and was in practically every 
 coal mine within the state of Arkansas, and talked with scores of 
 miners and most of the operators. He is one of our most careful, 
 honest, competent and painstaking observers. 
 
 The mine-run law was passed in Arkansas in 1905, and as the 
 conditions brought about by its operation are probably the most 
 vital of any that relate to the present condition of the coal mining 
 industry in the state, we offer no apology for having devoted one 
 chapter of 54 pages of the report to this subject. I shall not im- 
 pose upon your patience by entering upon a detailed treatment of 
 this important phase of the coal mining industry in my state, but 
 shall content myself by touching upon some of the most salient 
 points. 
 
 It might be well to state in this connection, for the benefit of 
 those not familiar with coal-mining methods, that what is known 
 
228 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 as the mine-run law provides that the miner shall be paid for all 
 coal, both lump and slack, taken from the mine. Before the enact- 
 ment of the law in Arkansas, the miners in that state were paid 
 wholely or largely on the screened coal basis, and the great argu- 
 ment in favor of the law was, that not being paid for the slack, 
 the miners were giving the operators a marketable product. While 
 this argument appears valid, it really is not sound, as applied to 
 conditions in Arkansas, for a simple arithmetical computation 
 shows that the competent miner could make more money on the 
 screened coal basis at the rates paid for that, than he can on the 
 present mine-run rates. 
 
 Another argument in favor of the mine-run law in our state 
 was that the screen often let lumps through into the slack, thus 
 robbing the miner. In some instances, the operators may, through 
 carelessness, have let this occur, but the difference between the sell- 
 ing price of the slack and that of the lump coal at the mine is so 
 great, that it is decidedly to the interest of the operator to pass all 
 the lump coal over the screen. 
 
 Probably the most vital argument in favor of the mine-run law 
 is that if the miners are paid for only lump coal, they will leave a 
 great deal of slack in the mine as a permanent loss of a natural 
 resource. But in Arkansas, only a small amount of slack was left 
 in the mines for the reason that the coal is loaded with the shovel, 
 and is shoveled up from the floor. 
 
 The operation of the mine-run law in Arkansas furnishes a fine 
 example of the evils that may follow legalizing a practice which on 
 its face appears equable. No miner or operator has ever looked 
 fully into the results of the law, for it is impracticable for either to 
 have done so. Such investigations can best be conducted through 
 the agency of a public bureau, and this fact supplied the Geological 
 Survey of Arkansas the reason for taking it up as a part of the coal- 
 mining investigations. 
 
 One noticeable result in the operation of the law in Arkansas 
 is an increase in the per cent of slack. That such has been true is 
 recognized by both miners and operators. Investigations by the 
 Geological Survey go to show that this has been very great, reach- 
 ing more than 14 per cent from 1906 to 1910. Were all miners men 
 of high ethical ideas, this would not have been true, for each miner 
 would then have continued to produce the maximum amount of 
 lump coal, though he was receiving as much for the slack as the 
 lump; but miners are ^ like other people. They are not all honest, 
 and some of them are not only dishonest, but lazy. It is easier to 
 
THE MINE-RUN LAW IN ARKANSAS. 229 
 
 mine coal with a large per cent than with a small per cent of slack. 
 So the dishonest, lazy fellow yields to the temptation to put in heavy 
 charges of powder without first undermining the coal, rather than 
 to undermine and then loosen the face with light charges. In other 
 words, he conserves his energy at the expense of his powder. The 
 extent to which this physical conservation may reach, is shown in 
 the case of two mines in the same district in one of which the coal 
 was undermined before shooting, and in the other it was shot with- 
 out undermining. The proportion of powder used in the two cases 
 was as I to 5.8. That is, 5.8 times as much powder was used in the 
 latter case as would have been used had the coal been properly 
 mined. It also means that the excess of powder energy went 
 toward producing slack. 
 
 It is often remarked by those not conversant with the details 
 of the industry that the slack is not lost either to the operators 
 or the public, for the reason that it is sold. This is true ; but slack 
 in Arkansas brings from 95 cents to $1.50 less per ton than lump, 
 so that all slack that had as well be put on the market as lump 
 represents so much loss to the operator. 
 
 But the loss is not to the operators alone. The principal suf- 
 ferers are the public. In Arkansas there are frequent partings of 
 dirt or slate in the coal that under proper methods would be largely 
 or wholly mined out. These are shot down with the coal, the dirt 
 becoming hopelessly mixed with the slack, and the slate largely so. 
 This of course means a loss to the consumer in the freight paid 
 on worthless material, to say nothing of the loss in heating value. 
 While the per cent .of slate thus introduced in lump coal has not 
 been ascertained, it is known to be great, regardless of the fact that 
 the larger miners each employ extra slate pickers in their efforts 
 to put good coal on the market. An idea of the per cent of increase 
 of fine slate in slack may be obtained from a single slack washer, 
 in which it was found that the per cent of slate in the slack in- 
 creased from ii in 1907 to 23 in 1910. By comparison with the 
 price of other coals and figured on the basis of the Government 
 contracts, the loss in the quantity of the Arkansas coal due to the 
 excess of slate is $ .35 a ton. As the normal annual output of 
 Arkansas coal is two and a half million tons, this means that there 
 is an annual loss to the consumers of $875,000 net. A conservative 
 estimate shows that the -excess of slate in the coal used by the state 
 institutions of Arkansas costs the state about $4,500 a year. This 
 comes in loss of fuel value and the freight and drayage on the 
 excess slate. 
 
230 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Not only is the quantity of Arkansas coal reduced by the ex- 
 cess of slate in both lump and slack, but the quality of the lump is 
 materially reduced. The heavy charges used in shooting down the 
 coal greatly reduce the amount of lump that goes over the screen, 
 and also so shatters this that in the jarring and handling incident 
 to its transportation from the mine to the consumer, no small per 
 cent is broken down into slack. I think it is safe to say that of the 
 so-called lump coal produced by our mines, at least 30 per cent is 
 slack before it reaches the cellar of the consumer. In common par- 
 lance, the consumer "has the bag to hold." 
 
 As the operators sell coal at close profits, the balance of trade 
 between competing districts is very sensitive and quickly responds 
 to an increased cost of mining or a decreased quantity from any 
 district. This is exemplified in eastern Arkansas, where Arkansas 
 coal and Illinois coal come into competition. In 1904, it was shown 
 by Government experts that Arkansas coal had at that time about 
 20 per cent more heating value, and less ash and sulphur than 
 Illinois coal. It was, therefore, then possible to sell Arkansas coal 
 at competitive points for a higher price than was paid for Illinois 
 coal ; but at present, the quality of Arkansas coal is so reduced 
 that the market of the eastern part of the state is supplied largely 
 by the Illinois mines at prices ranging from 35 cents to 50 cents a 
 ton higher than that of Arkansas coal. 
 
 The excess of dirt and slate in coal not only results in loss of 
 market, but entails much extra cost in mining. During the year 
 1909 one company in Arkansas washed 28,800 tons of dirt from its 
 slack. It is estimated that at least half of this could haVe been 
 left out by proper mining. That is, the company paid 62 cents a 
 ton or $8928 for dirt that in all fairness should have been left in the 
 mine. Probably a better idea of the increased cost of mining could 
 be arrived at in another way. Since the mine-run law went into 
 operation in our state, the increase in the amount of slate is con- 
 servatively estimated at 5 per cent of the weight of the coal. With 
 an annual output of 2,500,000 tons, this excess of slate costs the 
 operators $137,500. If this slate is removed before the coal goes 
 on the market, the operators suffer. If not, the consumer suffers. 
 
 The cost of mining is further increased by the cost of ex- 
 plosions produced, by excessive use of powder, by removing the 
 excessive amount of draw slate, and by an increase in the general 
 operating expenses. 
 
 P>ut the effect of the mine-run law in Arkansas extends not 
 only to the operator and consumer, but in many ways reacts upon 
 
THE M1XE-RUN LAW IN ARKANSAS. 231 
 
 the miner himself. Not the least of these is an increase in mine 
 accidents. In 1905, there were 21.2 accidents to the 1,000,000 tons 
 of coal mined, and 1909, 31.1 accidents an increase of 9.9. The 
 increase is caused from an excessive use of powder, which loosens 
 or blows out the props, shatters the roof so as to increase the 
 falls of rock, and makes the shot-firer s task a hazardous one. 
 
 The daily earnings of many miners are less than formerly, the 
 decrease ranging from 25 cents to $1.00. The reduced earnings of 
 our miners through loss of market and the general depression of 
 the industry in the state doubtless is far greater than they realize. 
 If the Arkansas operators could control the market in the eastern 
 part of the state that legitimately belongs to them, but which is 
 now supplied by Illinois and Alabama, with the present miners and 
 present crew they could run a possible 20 days per month instead of 
 17 days. The average earnings of the miners would thereby be 
 increased $7 per month, which with 4000 miners in the state would 
 be a total monthly increase of $28,000. 
 
 A very serious effect upon the miner and one that is growing 
 is the loss of skill. It takes a miner to mine coal, but any able bodied 
 man can shoot it. The latter shoots the coal down as slack and as 
 the former must come in competition with him, the inevitable result 
 is to lower the work of the craft to that of the common laborer. 
 
 The foregoing remarks relate to conservation in the coal 
 industry chiefly in the broad application of the term. Let us now 
 take up briefly the effects of the mine-run law in the more re- 
 stricted sense of relating to the permanent waste of coal. The 
 heavy shooting causes an unknown but large per cent of the coal 
 to fly to all parts of the room. Much of this falls in places that are 
 not conveniently accessible, and much of it on the piles of draw 
 slate. The miner cannot afford to spend his time to pick up this 
 coal, so it remains in the mine as a permanent loss. 
 
 There is another permanent loss of coal in unmined patches 
 that cannot be worked with profit under present conditions for 
 which the mine-run law is largely, if not wholly responsible. Such 
 patches include those in which there is an unusual number of bands 
 of dirt ; or an unusual amount of bone or sulphur ; or where the coal 
 is seamy or otherwise faulty; or where the roof will not stand the 
 heavy shooting; or those parts that are too thin to mine under 
 present conditions. After these patches are left and the mine fills 
 with water, it probably never will be practicable to mine them out. 
 
 All this is attributable to the reduced profits brought about by 
 mine-run conditions. A careful study of mining costs shows that, 
 
232 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 at an additional expense of 10 cents a ton, enough coal can be 
 mined from the patches that are now left in the ground, to increase, 
 by 15 per cent, the proportion of coal recovered from the areas 
 which are now mined. It is estimated that the total underground 
 waste in Arkansas, -under present conditions, is 20 per cent of the 
 output. As the normal output is about 2,500,000 tons, the loss to 
 the state is about 500,000 tons annually, worth $840,000. This may 
 be considered an absolute waste of our resources. 
 
 A summary of the annual cost to the state of Arkansas which 
 we think is fairly attributed to the mine-run law, is as follows : 
 Loss to present producers and consumers. .$1,670,000 
 Net loss to mine workers now in the state. . 100,000 
 
 Loss due to the loss of market 1,600,000 
 
 Loss from unmined patches 840,000 
 
 Total $4,210,000 
 
 In a state which is relatively a very small producer of coal, this 
 is appalling. It is the result of a law that was enacted with the best 
 of intentions. On its face it appears to give the miners what they 
 justly deserve; but in its operation it reaches out in many directions 
 with disastrous results that not even the most thoughtful operators 
 foresaw. It works a great injury to the consumer, the operator, 
 and even to the miner himself. Many, it is believed a majority, of 
 the miners in our state recognize the evils of the la^w, and would 
 hail its repeal with delight. 
 
The "Mine Run System" of Mining Coal.* 
 
 BY J. E. FINNEY, 
 
 I I I'. \TINGDON, ARKANSAS, 
 Representing the Southwestern Interstate Coal Operators' Association. 
 
 This great commercial era is popularly regarded as a day of 
 "greed and graft," a "survival of the fittest," in the industrial 
 world. This is a mistaken idea, and not in accord with the conduct 
 of modern well-regulated business enterprises. Society in general, 
 and the rising generation in particular, appeal for protection against 
 any system of business or law of commerce that encourages dis- 
 honesty or permits fraud. It is true that there are some men in all 
 the ordinary branches of business that consider it a mark of suc- 
 cess to be well versed in the art of scheming and defrauding their 
 fellowmen, but such men and methods should not be protected by 
 the strong arm of the law. 
 
 Recent legislatures in some of our coal producing states have 
 been led to believe that a great fraud was being practiced upon the 
 coal miners by paying them for the coal they produced on a 
 "Screened Lump" basis, whereby they were paid a certain price per 
 ton for lump coal and, apparently, nothing for the slack which 
 necessarily accumulated in the process of mining and loading this 
 lump coal. These legislatures sought to remedy this so-called evil 
 by enacting laws that would prevent the coal being passed over a 
 screen before it was weighed and paid for, and as a result we have 
 the "Mine Run" basis for mining and paying for coal in these 
 states. After a few years of actual experience, it is now evident 
 that the operation of these laws, by a natural process, and without 
 criminal intent on the part of those implicated, has developed the 
 greatest system of fraud ever known to the mining business. It 
 is admitted that some unscrupulous operators had allowed the 
 screens to spread, thereby deducting unfair quantities of slack from 
 the lumps, but this was confined to the careless or unscrupulous 
 operators who were a discredit to the mining industry and whose 
 acts were deplored by their fellow operators as well as the miners. 
 Either of the above methods of operation are inclined to debauch 
 
 *The discussion of this subject is especially applicable to the south- 
 western coal fields, and particularly to the prevailing conditions in Ar- 
 kansas and Oklahoma. 
 
234 PROCEEDINGS.. AMERICAN MINING CONGRESS 
 
 the morality of the men engaged in this great industry, and to cor- 
 rect this unnecessary evil it would seem that the logical conclusion 
 would be to repeal this mine run legislation, to prevent fraud 
 on the part of the miners ; and enact legislation providing for a 
 standard, uniform screen, with severe penalties for fraud in con- 
 struction and maintenance, to prevent fraud on the part of the 
 operators. This would, in our judgment, insure equitable pay- 
 ment for the labor of mining the coal, and fair methods of pro- 
 ducing coal that is paid for with the understanding that it shall 
 be "good, marketable coal." This would insure fair dealings on 
 the part of both employer and employe and prevent the destruction 
 of vast quantities of coal by overshooting it into a mixture of slate 
 and slack that cannot be separated; thus conserving this great waste 
 of our most valuable natural resource, and at the same time, re- 
 move an incentive to fraud that benefits nobody but is an expense 
 to every consumer of coal, and is corrupting the morals of hun- 
 dreds of otherwise upright young men. 
 
 Aside from the claim that the screen deducts unfair quantities 
 of coal, the prime reason urged for the enactment of this legisla- 
 tion was said to be an effort to make the operator pay for the slack 
 at the same rate that he paid for the lumps ; and, it has been stated 
 by the miners' legislative agents that the inexperienced should 
 receive the same wage as the skilled miner, which is evidently an 
 effort to secure recognition of equality among all miners regardless 
 of their ability or experience. It is an undisputed fact that the old- 
 time miner, trained to use picks instead of powder, can earn better 
 wages under the screen coal basis ; while under the mine run sys- 
 tem the man with the longest auger is the best "coal-digger" all 
 classes of miners being equal as long as they are supplied with 
 plenty of powder. This theory of "all men being equal" seems to 
 have entered into the question of mining coal. It has been proven 
 by history as well as our own experience that equality cannot exist 
 among all men, but only among individuals who stand upon a com- 
 mon level physically, intellectually and morally. Nature herself 
 proves that there is no standard in any form of life. The corn- 
 stalk grows one ear more perfect than all the rest. The natural 
 process of life and living separate the fit from the unfit. To urge 
 the fitness of a blind artist in a contest with one who sees is just 
 as logical as to claim the right of inefficiency to share equally with 
 industrious capability. The best man wins, not by following others, 
 but by virtue of his place to the fore. The door of opportunity opens 
 
THE "MINE-RUN SYSTEM." 235 
 
 wide to the man who has the strength, courage and tenacity to em- 
 brace it. A system that would reward equally the indolent with 
 the energetic ; the coward with the courageous, and the skilled with 
 the unskilled would soon reduce society to an unaccomplishing in- 
 feriority by removing the impetus which urges progress along all 
 the lines of human advancement. 
 
 There is no doubt but that the legislatures referred to enacted 
 the mine run system into law in an effort to correct what they 
 considered to be a great injustice to thousands of coal miners which 
 they represent. Notwithstanding, we now discover that this mine 
 run "system is a most serious detriment to millions of consumers 
 and of no benefit to the miners themselves. In fact, it is a detri- 
 ment to the miners because it places a premium on unskilled, reck- 
 less and vicious shooting of coal with excessive quantities of powder 
 to the detriment of the skilled, careful and conscientious miner who 
 gets no more for the product of his painstaking labor than the un- 
 skilled man does for shooting his coal out with no skill and very 
 little labor. Under the screen coal system the average miner re- 
 ceived the same wage for one ton of coal as it comes from the 
 mine as he now gets, while the more skilled miner received more 
 per ton by reason of the fact that he had above the average per- 
 centage of lumps and was paid according to the lumps produced by 
 him. For example: In Arkansas, before the enactment of the 
 mine run law, the miner received 62 cents per ton for mine run 
 coal and 90 cents per ton for screened lump coal. At that time the 
 average miner produced 69% lumps and 31% slack. On a mine 
 run basis, at 62 cents per ton, he would receive $62 for 100 tons of 
 mine run coal. On a screened lump coal basis, at 90 cents per ton, 
 he would receive $62.10 for 100 tons of mine run. By the exercise 
 of care and skill in producing the coal, better miners would get 75% 
 to 80% lumps, which would net them (8ox9oc) $72 for 100 tons 
 mine run, or, 72 cents per ton for the mine run when paid on the 
 screened lump basis. Thus it is proven that it is possible for the 
 experienced miner to earn IDC per ton more for good honest work 
 on the screened lump basis than he can get under the mine run 
 system. 
 
 So much data has been gathered on this subject that we refrain 
 from introducing additional facts as we believe the following state- 
 ments, from such well-known and authoritative sources, are more 
 convincing than anything we could suggest : 
 
236 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Edward W. Parker, U. S. Geological Survey Bulletin, Jan. 3, 
 1911, timely observes on 
 
 Over-Shooting Coal: 
 
 "Arkansas and Oklahoma have suffered from other troubles 
 than the strike. There has been strong tendency on the part of the 
 miners to use increased quantities of poivder, and it is also stated 
 that dynamite is frequently used, a practice which is not only dan- 
 gerous to life and property, but results in a largely increased per- 
 centage of slack. Moreover, it is the practice in nearly all the 
 mines to shoot off the solid. This also is extra hazardous and has 
 increased "the quantity of slack so that it is now double what it was 
 fifteen years ago. This results in complaints by the purchasers that 
 coal which appears to be lump coal on arrival easily disintegrates as 
 a result of the crushing strain to which it has been subjected by the 
 mining methods employed." 
 
 The General Assembly of Arkansas, in 1909, created a 
 commission consisting of the Governor, Commissioner of 
 Mines, and the President of the University of Arkansas, and 
 authorized them to appoint Prof. A. H. Purdue, State Geol- 
 ogist, and instruct him to investigate or have investigated 
 the conditions relating to the safety of miners and mine oper- 
 ations. These investigations were conducted by Prof. A. A. 
 Steel, Professor of Mining, University of Arkansas, and the 
 reports of his investigations are of vital interest to all oper- 
 ators and miners affected by the "Mine Run System," as 
 provided for in the statutes of Arkansas. 
 
 (Practically the same law is in effect in Oklahoma, Kansas and 
 Missouri, and in a modified form in several other states.) 
 
 We can offer no better argument against the operation 
 of the mine run law than to quote some of the important 
 findings of the above Commission, composed of such notable 
 and worthy men, and personally certified to by Prof. A. A. 
 Steel, who went into the mines and gathered information 
 from the rank and file of the miners, as well as operators 
 and consumers. 
 
 We refer you to the report of the Arkansas Geological Survey, 
 as follows : 
 
 Screens Do Not Reduce Wages. 
 
 That ,the screened-coal basis of payment recompensed the miner 
 in full, is shown by the results at Mine No. 2, Denning. Here the coal 
 is of such unusually high quality that it can be shot from the solid with 
 
THE "MINE-RUN SYSTEM." 237 
 
 . a less proportion of slack than in most mines; but in order to encourage 
 the miner to use care in placing his 'shots, the company has gone to the 
 expense of first weighing the coal as required by the mine-run law and 
 crediting the miner with it. The coal is then screened and the lump 
 coal reweighed and credited to the miner at the old price of 90c per ton. 
 If at the end of two weeks the price of this lump coal at 90c per ton 
 is greater than that of the mine-run coal at 62c per ton, the miner is paid 
 the difference as a premium. Otherwise, he gets the full mine-run price. 
 Under this arrangement, however, the men have much less incentive to 
 do good work than if they did not have the mine-run basis of payment to 
 fall back upon. The result is that, the lazy men shoot the coal to bits 
 and the incompetent ones make no effort to improve so as properly to 
 mine the coal. Still, out of 203 diggers on the pay-roll for January, 1910, 
 134 or 66 per cent, earned the premium; that is, they received more than 
 62c a ton for all the coal including the slack in it. 
 
 Maintenance of Screens. 
 
 The second argument in favor of the passage of the law was, "The 
 screen is a robber." By this is meant that the bars of the screen would 
 become bent and permit large slabs of coal to pass through. It is re- 
 gretted that one or two of the companies were very careless about the 
 condition of their screens many years ago, but this injustice was very 
 promptly corrected by the Miners' Union upon its organization in 1903. 
 For years the screens have never been seriously defective and when 
 slightly out of order they have been promptly repaired. In fact the min- 
 ers' committee inspected the screens each time the scales were tested, 
 and whenever any bar became bent the committee required that it be 
 straightened before any more coal was weighed. The operators now 
 generally realize that it is actually to their own interest to maintain the 
 screen in good condition since screened coal for domestic use has always 
 been worth more than 90c a ton above the price of slack coal. 
 
 Reduction of Wages. 
 
 The mine run law requires that the miner be paid for his coal re- 
 gardless of its quality. It takes less labor and less skill to shoot the 
 coal out carelessly than to mine it in such a way as to get a large pro- 
 portion of good lump. The mine run law therefore gives the miner the 
 same pay for less work and this is the real reason why some miners favor 
 it. If it is claimed that the production of good coal requires too much 
 work, why not for the same reason prohibit the contracting masons from 
 allowing those of their men that are paid by the thousand brick laid, to 
 point or otherwise finish the joints? Or, why not prohibit the plasterers 
 from troweling their work smooth, or compel the cabinet maker to leave 
 his furniture unplaned? In each case, labor would be saved and people 
 could get along. Such examples show the folly of attempting to change 
 methods of work by law. Besides determining the manner of weighing 
 the coal, the mine run law has changed the method of mining it. This 
 change has caused the injury to the quality of the coal, which in turn 
 causes a hardship to the public. 
 
 Fifty Per Cent Increase of Slack. 
 
 The law has made the companies powerless to regulate the amount 
 of their coal which is shot into slack, with the result that the proportion 
 of slack is constantly increasing. Affidavits of the companies, an exam- 
 ination of their shipping books, and the results of test runs made by the 
 superintendents, show that those few mines which made as little as 21 
 per cent of slack on the old screened coal basis now make 31 per cent; 
 those which then made about 25 per cent now make from 35 to 40 per 
 cent; those which then made about 30 per cent now make over 40 per 
 cent; and those that made about 34 per cent in the old days now make 
 50 per cent. This shows an increase in the proportion of slack of about 
 
238 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 50 per cent of its original amount. It will be shown later that this 
 excessive production of slack causes a waste of one of our natural 
 resources. 
 
 Table of Increase in Kansas in Ten Years*. 
 
 Year. Per cent Lump Per cent Slack 
 
 Coal. Coal. 
 
 1894 59.21 25.96 
 
 1895 57.79 27.60 
 
 1896 57.65 26.54 
 
 1897 55.43 27.96 
 
 1898 56.04 29.92 
 
 1899 57.20 . 27.91 
 
 1900 56.12 28.37 
 
 1901 53.37 32.10 
 
 1902 51.73 34.32 
 
 1903 50.38 35.67 
 
 1904 45.91 38.15 
 
 Increase of Slack in Arkansas. 
 
 For year ending April 1 1906 1907 1909 1910 
 
 Average of per cent of slack at three mines.. 28.10 28.00 36.04 42.32 
 Per cent slack produced at one of these mines 26.42 26.10 39.32 41.87 
 
 Powder vs. Skill. 
 
 Many of the miners are fine men and do not wish to be known as 
 "slack makers," but they find it hard to withstand the gibes of their fel- 
 lows and are therefore becoming more and more careless. From year to 
 year the common length of the augers sold to the miners is increasing. 
 This shows the tendency to put in fewer and heavier shots than for- 
 merly. It means heavier blasting and more slack each year. As the 
 younger men who are now entering the trade do not understand the old 
 careful way of mining, the proportion of miners skilled in the best meth- 
 ods is bound to decrease; and the proportion of slack produced in mining 
 the coal will correspondingly increase, unless the men have some in- 
 centive to do better work. 
 
 Desperate Efforts to Get Lumps. 
 
 At present some of the superintendents are arranging to get lower 
 sideboards upon what new cars they need, .and to give the miner fewer 
 cars per day. Then in order that the miner may make good wages, he 
 must mine up enough lumps to chunk up his car so as to increase its 
 capacity. Some superintendents are even thinking of removing the doors 
 from the cars so that the miners will have to mine lumps to hold the 
 coal in the car. Both of these .plans will work a hardship upon the good 
 miners as well as upon the careless ones, and the second one is only a 
 desperate last resort, for it may increase the accidents upon slopes. 
 
 Unnecessary Waste Which Benefits Nobody. 
 
 Since we have sufficiently shown that a constantly increasing pro- 
 portion of good lump coal is shot into slack as a result of the passage of 
 the mine run law in 1905, it may be interesting to see how this affects the 
 operators. 
 
 Since slack coal is worth so much less than lump coal, the natural 
 result of an increase in its proportion is to decrease the average value of 
 the coal. The average prices of the different sizes of coal have not been 
 published, but from information given by companies, wholesale dealers, 
 and others, it is known that the price of the slack coal is from 95c to $1.50 
 per ton less than that of the lump coal from which the full amount of 
 fine coal has been removed. The average difference is at least $1.15 a 
 ton. Now the mine run law has increased the slack on an average from 
 the normal 30 per cent to at least 45 per cent. It has therefore reduced 
 the value of 15 per cent of the output of the state by $1.15 a ton. 
 
T1LK "M INK-RUN SYSTEM." 239 
 
 Some Results of Over-Shooting. 
 
 "Shattering the Lump Coal." The mine run law injures the com- 
 panies by also reducing the quality of the output and hence its cash 
 value. The heavy careless shooting not only reduces the proportion of 
 lump coal but also greatly weakens those lumps which are not entirely 
 broken up. As a result, they readily slack off on standing and are easily 
 broken by handling. It will therefore not endure railroad shipment as 
 well as it should. When domestic lump coal is loaded out by a careful 
 retail dealer, the lumps are forked out and the coal remaining is sold at 
 slack prices. In this way, it is possible to tell accurately how much slack 
 is found in the coal. An affidavit of Mr. Geo. McLean of the Merchants' 
 Transfer Company of Little Rock, states that several years ago, the 
 Arkansas coal which he sold left from 3 to 5 per cent of slack, whereas, 
 in 1908, it left from 10 to 16, generally about 15 per cent. This is coal 
 which left the mines as clean, fancy lump and was screened in the same 
 way as before the mine law went into effect. The experience of Mr. 
 McLean is that of all dealers and consumers, and shows how much the 
 coal is shattered by the excessive shooting. 
 
 "Increase of Slate in the Coal." There is a further injury to the 
 operators, because the mine run law compels the companies to pay th 
 miners as much for slate as for coal. Some little protection is afforded 
 by the agreement with the Union which allows a few of the worst 
 offenders to be laid off for from one to three days, but they can only be 
 penalized for loading out slate that is- in large enough pieces to be 
 picked out by hand from the lump coal. The companies are not allowed 
 to put another man in the place made vacant, so the laying off of the 
 men is an expense to the company because it reduces the output of the 
 mine. Since it is generally impracticable to inspect the slack coal for 
 slate, the miner gets a premium for shooting all of the dirt band and 
 slate into small pieces and of course the coal goes also. Nevertheless, 
 much slate in large sizes gets into the lump coal, although the com- 
 panies have from two to six extra pickers at each large mine in their 
 efforts to produce salable coal.- 
 
 "Cost of Explosions." A further slight increase in the cost is due to 
 the increasing frequency of destructive "windy shots," or dust explosions, 
 resulting from the excessive use of powder. Doors and stopings blown 
 down by them must be replaced, and the cost of a single general ex- 
 plosion is often great. At many mines, it is already necessary to pay the 
 shot firers extra on account of the extra risk they run. 
 
 "Effects of Heavy Blasting." A little reflection will show how much 
 more a heavy wide shot will affect the roof, than the same -amount of 
 powder in two light shots. At present many of the miners put in only 
 about half as many shots as formerly, to get out the same amount of 
 coal. All of them are using fewer shots. This change in the blasting 
 does not show in the figures for the consumption of powder, and it is 
 safe to say that at present the blasting of the coal is at least three times 
 as severe as it was in 1905. 
 
 The heavy shooting also sends the coal flying against the props. 
 At a mine at Spadra, the writer saw some large pieces of coal which 
 had been thrown by the blast of the afternoon before a distance of 40 feet. 
 They had knocked out the props so as to leave an open lane down one 
 side of the room. Besides knocking out props, such shooting cracks or 
 otherwise weakens some of them in a way which the miner does not 
 notice until the roof falls. The worst trouble is the increasing tendency 
 of the miner to set his props as far from the face as possible, so as to 
 save the labor of replacing them. He therefore works in an unprotected 
 space. This wide space also gives the roof a chance to loosen and get 
 drummy, which throws an added strain upon the places where the tough 
 slabs have been weakened by the direct blows of the powder. 
 
 The hea.vy and wide shots now used are dangerous to the shotfirers, 
 and many miners have begun to ignore all ordinary precautions for safety 
 in blasting. At a mine near Hartford, the writer saw a large mass of 
 
240 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 coal which had been shot out of its position, but was still tightly 
 wedged between the roof and a roll in the floor. The miner was very 
 frank and when asked how he would go about picking this coal down, he 
 laughingly set his auger in position for drilling a splitting shot through 
 the center of this chunk of coal and said, "With two feet of powder." 
 Then he added, "I always find an auger when I start to look for a pick." 
 
 "Accidents." So far as they are available, the records of the acci- 
 dents in the Arkansas mines show the increases in the number due to 
 falls of roof and the firing of shots, which might be expected from the 
 increased severity of the blasting. 
 
 Imperfect as these figures are, they well illustrate the effect of the 
 mine run law. The heavy shooting following the passage of the law 
 has progressively increased the amount of rock falling in the rooms to 
 triple that of 1905; this is shown in the table on p. 267. It is therefore 
 directly responsible for at least half the deaths due to this cause in 
 1908. All the fatal accidents due to firing shots in 1907 and 1908 and 
 probably at least half of those in 1906, happened to regular shotfirers. 
 Nearly all of these deaths are due to the heavy and careless loading of 
 the shots encouraged by the mine run law and at least four of the seven 
 may be charged against it. 
 
 Loss of Skill 
 
 The miners are further 'injured by the mine run law because under 
 its operation they are losing their old-time skill, which will make it im- 
 possible for them to get employment in fields where it is necessary to 
 do pick work. This lowering of the standard of skill also throws the 
 occupation open to any man with a strong body. As soon, therefore, as 
 the artificial conditions due to the Union, break down, the wages of the 
 coal miners can not be maintained as much above the pay of common 
 laborers as at present. The bringing in of such a lot of inferior work- 
 men is sure also to be the end of the Union, since unskilled labor has 
 never been successfully held in line during a long strike. 
 
 There is now no incentive for the new men to learn how properly 
 to shoot the coal and as a result the mine run law means stagnation in 
 the progress of our miners toward increased efficiency. 
 
 Loss* to Arkansas as a Result of the Mine Run Legislation. 
 
 In conclusion, we repeat the list of direct money losses caused to 
 the state each year by this absurd law. 
 
 The loss to the present producers and consumers of coal $1,670,000 
 
 The net loss to the mine workers now in the state 100,000 
 
 Additional loss to the coal industry alone due to loss of market. 1,600,000 
 Absolute waste of our resources 850,000 
 
 Total $4,220,000 
 
 The astounding sum of money includes no duplication and does not 
 
 consider the great loss to the railroads, merchants, and other interests 
 
 incident to the decline of the coal-mining industry. 
 
 In addition to the money loss, this law already costs the .lives of 
 
 seven of our miners every year, sacrificed to the greater ease of shooting 
 
 out the coal, instead of mining it. 
 
 This is surely sufficient to make it clear that the repeal of the law 
 
 prohibiting the screening of the miners' coal before weighing it, is the 
 
 most important service to the state that the legislature, now has an 
 
 opportunity to perform. 
 
The Economics of the Coal Industry. 
 
 BY CARL SCHOLZ, 
 CHICAGO, ILLINOIS. 
 
 The operations of the Rheinisch Westfalian Coal Syndicate 
 have frequently been discussed as the most satisfactory organiza- 
 tion of its kind and its methods have been at least partially described 
 in our trade publications. Little, if anything, has been said as to 
 the causes which led to the establishment of the syndicate even 
 less is generally known of various stages which were gone through 
 before its present form was adopted. Because this syndicate has 
 been in successful operation for eighteen years, with only minor 
 changes at the expiration of each of the five or ten year contract 
 periods, it is customary to assume that German mines have always 
 enjoyed their present prosperity. It is a popular notion that those 
 mines had no part with struggles against adversity due to competi- 
 tion. 
 
 On the contrary, the same difficulties which now confront the 
 coal operators of the United States were, in the early stages, ex- 
 perienced by the mine owners in the Westfalian district. In fact, 
 during 1870, a crisis was reached and disaster was only averted 
 when the German-France war brought a. decided but very short- 
 lived relief. The lesson to the coal operator of the United States is 
 that Germany has faced and solved problems similar in character 
 and degree to those with which we are struggling. The question for 
 us to answer is whether we shall travel the same road, step by step, 
 or shall profit by their experience and adopt at once their successful 
 plan. The tonnage of the Westfalian district was 2,250,000 in 1850; 
 13,000,000 in 1870; 39,000,000 in 1890 and 91,000,000 tons in 1909. 
 These figures are given to show that the increase is about on the 
 same ratio as that of the United States, although with them, get- 
 ting the coal is more difficult and the cost of extraction is greater. 
 It is safe to say that with the same physical difficulties the oper- 
 ators of the United States would not have been able to keep up 
 the rate of increase as was done in Westfalia. Because of the 
 many points of similarity, it is interesting to follow their develop- 
 ment from early difficulties to the present. 
 
 From the earliest beginning over a hundred years ago the 
 Westfalia mine owners recognized the advantages of co-operation 
 for mutual protection and funds were established to provide against 
 
242 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 losses of life and damage to property of the individual operators. 
 At that time, mine owners worked alongside the few laborers whom 
 they employed. As the size of mines increased and as conditions 
 of mining became more hazardous, the usefulness of the small or- 
 ganization of operators was extended to cover broader fields. In- 
 cluded in those larger investigations were : matters of safety ; econ- 
 omies in production and usage of coal ; the study of competitive coal 
 fields ; the testing of apparatus, machinery and explosives ; the map- 
 ping and study of geological conditions of the coal fields ; the edu- 
 cation of mining officials to cope with the new dangers, due to deep 
 shaft mining, gases and enormous water flows ; the management of 
 the -varipus accident, pension and annuity funds ; the conduct of 
 hospitals and convalescent stations for aged or injured employes and 
 their families; and, the enactment of suitable and just legislation. 
 
 This work was costly but was conducted by the owners through 
 various associations and organizations who compiled valuable data 
 which was distributed to all interested parties. In all of these mat- 
 ters, the Government has more or less a voice through its repre- 
 sentative in the mining bureau, which is a part of the department 
 of trade and industry. This department, incidentally headed by 
 the minister, carefully considered every proposed action and his 
 sanction had to be secured before any plan could be made effective. 
 
 During all this time of co-operative work, the only matter left 
 for individual decision was the sale of coal. By the year 1865 very 
 fierce and destructive competition had developed, which led to 
 financial ruin of many concerns. Consolidations were effected but 
 without relief. Efforts were made to raise the income by restrict- 
 ing the output but this proved ineffective. It was difficult to obtain 
 the consent of a sufficient number of owners to agree to any restric- 
 tion concerning output, but it was finally accomplished. Under the 
 plan adopted a reduction of tonnage to ten-twelfths of the previous 
 year was fixed as the safe maximum but a depression in the iron 
 and steel industry reduced the estimated requirements and, notwith- 
 standing the many fines assessed, some producers exceeded their 
 allotment. 
 
 About that time, coal, coke and briquet clubs were established, 
 whose function it was to fix prices on the various grades and sizes 
 of coal, these prices being regulated by the double standard of the 
 intrinsic values of the coal and the ability of the consumer to pay 
 the cost of production was not, of course, disregarded. It should 
 be borne in mind that steam, coking, gas and domestic coal, in widely 
 ranging qualities, were produced and from this source the complica- 
 
'Hll-. F.COXOMTCS OF THE COAL INDUSTRY. 243 
 
 tions were multiplied. These coal clubs had entire control of the 
 output of their members for a given territory and were what we 
 would term, district sales organizations. Each member sold his 
 coal direct to the consumer but upon the advice and instruction of 
 the club committee. Invoices and contracts passed through the of- 
 fices of the clubs for verification of prices. 
 
 Due consideration was given by these clubs to such condition 
 as variation in consumption during the year. For instance, sugar 
 factories paid a higher price than other manufacturers who oper- 
 ated throughout the year; sugar factories operate only during the 
 fall and winter when coal is in demand. 
 
 Each group of owners selected representatives to look after 
 their interests confidence men, so called because they acted abso- 
 lutely with the view of solving the problem of the district without 
 consideration for any selfish interests they might care to serve. 
 These plans were carried out with the concurrence of owners repre- 
 senting from eighty-five to ninety-two per cent of the tonnage of 
 the district. 
 
 There was dissatisfaction with this plan from time to time. 
 This was peculiarly so on the part of furnace operators who owned 
 mines or had contracts with independent mines, these contracts call- 
 ing for greater production than the allotment authorized these mine 
 operators to produce. It was seen as a result of such complications 
 that consolidations of property would eliminate many obpections 
 incident to the numerous smaller operations. A commission was 
 appointed and for nearly ten years continued its work, but its recom- 
 mendations were in the end, not adopted, although the information 
 thus obtained was responsible for more acquisition 'of property and 
 combinations of smaller character. 
 
 The individual coal and coke clubs became more and more solidi- 
 fied and by 1890, when the above mentioned commission made its 
 final report three principal sales organizations were in operation 
 controlling about 40,000,000 tons of annual output. Notwithstand- 
 ing the material advantages of the new methods, it , became appar- 
 ent that the most satisfactory results could only be obtained if the 
 sale of mine products would be handled more advantageously 
 through an entirely separate organization managed by a firm of 
 salesmen under the direction of the owners. This suggestion re- 
 sulted in the birth of the Rheinisch Westfalian Coal Syndicate in 
 1892. ~ Its purpose and organization are as follows: 
 
 The present contract expires December 31, 1915. Its purpose 
 is to buy and sell coal and coke and to acquire mining fields and 
 
244 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 shares in mining companies. The capital is $600,000 divided into 
 8,000 bonds of $75, this capitalization being based on 80,000,000 
 tons of production. Each member of the Syndicate must acquire 
 one bond for each 10,000 tons of annual output. The management 
 is entrusted to a board of two or more members selected from the 
 directors and twelve members, three of whom change every year. 
 The managers are elected at the annual meeting of the bondholders. 
 
 The tonnage allotted to each company is fixed by a commission 
 of eight members. The syndicate buys and pays for all the coal 
 covered by allotment. No coal can be sold by any producer except 
 to the syndicate. Syndicate members must put the output of all 
 mines in the hands of the organization, whether owned wholly or 
 in part, except, of course, such coal as is required for mines' own 
 use as fuel or for coking and briquetting. There is also excluded 
 the coal used in furnaces, briquet plants and other manufacturing 
 plants owned by the mining company. The mining company must 
 furnish the quantities agreed to and the syndicate must market it. 
 Should the syndicate not be able to take the maximum quantities 
 for any mine, it will pay the owner a sum of not more than forty 
 cents per ton of such shortage. Mine owners may arrange with 
 other producers to make up any shortage before they are liable to 
 the syndicate. 
 
 Mine owners receive monthly settlement for shipments, an 
 average price being fixed upon each grade. Each company is sub- 
 ject to deductions if the coal supplied is of inferior quality. The 
 syndicate assumes losses of bad accounts or if coal is sold at 
 prices below expected minimum. By this means all operators share 
 equally in losses beyond control due to the lower prices than were 
 contemplated at the time contracts were made. 
 
 The operating expenses for the syndicate are obtained in the 
 same manner. The coal selling contracts and the general allot- 
 ment of tonnage are made annually. 
 
 The mines owned by the Government have, since 1905, sold 
 their product in competition with the syndicate. It is believed they 
 will, later on, join the syndicate. 
 
 The advantages claimed are that the syndicate has eliminated 
 unnecessary and suicidal competition and has placed the coal indus- 
 try on a basis which enables the operators to produce coal at a rea- 
 sonable profit, in consequence of which they are able to pay the 
 miners a fair wage and to furnish better protection against injury 
 than was possible under the highly competititve conditions previ- 
 ously existing. The increased profit has warranted the better 
 
THE ECONOMICS OF THE COAL INDUSTRY. 245 
 
 equipping of mines with modern machinery and appliances. The 
 advantages to the coal consumer has been the elimination of fluctua- 
 tions in price by depression to low figures in a time of surplus and 
 by rises to higher prices during a time of shortage. Under the plan 
 adopted the consumers receive a more uniform price and the large 
 consumer does not get a low price at the expense of the small buyer 
 who may be compelled to pay exorbitant figures. Through the syn- 
 dicate all mines operate uniformly, thereby preventing the shifting 
 of the working forces with its entailed expense upon employes and 
 employers alike. 
 
 The syndicate has, through the establishment of agencies and 
 arrangement for shipping facilities, made possible an efficiency in 
 the marketing of coal which cannot be reached by the individual 
 producer. The standard of preparation has been raised and the 
 product of the syndicate mines can successfully compete, even at a 
 higher price, with the product of other countries, by reason of its 
 large resources and ability to carry out its contracts. 
 
 It would take columns to give the details of this organization 
 which now controls an annual output of 80,000,000 out of the 85,- 
 000,000 tons produced. 
 
 It is possible that others will profit by the great work accom- 
 plished after many years of endless effort. 
 
 Indicative and impressive is the inscription on the syndicate 
 building entrance reading: 
 
 "UNITY MAKES STRENGTH." 
 
The Condition of the Bituminous Coal Industry. 
 
 BY A. J MOORSHEAD, 
 ST. LOUIS, MO. 
 
 You will, I am sure, regret as I do that Mr. B. F. Bush, Presi- 
 dent of the Missouri Pacific Railway, could not, as the original 
 program provided, be here and present to you his own ideas and 
 opinions of the present condition of the bituminous coal mining 
 industry of this country, because his experience as an executive and 
 operating officer in connection with coal mining has been so ex- 
 tensive (covering operations in the greater part of the coal fields 
 from West Virginia and Pennsylvania in the east to the Pacific 
 coast) that it would be as instructive as it would be interesting. 
 
 So varied are the underground conditions and methods em- 
 ployed in coal mining in the state of Illinois alone, both with ref- 
 erence to the seams being worked (from thirty inches to ten feet 
 in thickness) ; the wide range of prices per ton paid to the miners; 
 difference in quality of product; the variable cost of putting the 
 coal into the cars for the market ; that it makes a somewhat intri- 
 cate and difficult subject to handle, particularly when coupled as it 
 is with the attempt in our dealings with the Mine Workers' organ- 
 ization to make each district fairly competitive with all others in the 
 marketing of the product; therefore, the subject covering the entire 
 country can only be reviewed in a general way. 
 
 With the exception of two or three states and some particular 
 districts in some states the industry was in a reasonably prosper- 
 ous condition prior to the fall of 1907, when a general business 
 depression occurred, and, with others, the coal industry suffered 
 a material curtailment in production and a general lowering of 
 values at that time. During the following year the production 
 declined some 64,500,000 tons, but this loss in production has been 
 subsequently overcome, and the figures for 1910 record the largest 
 tonnage in the history of the industry. 
 
 Prices, however, recovered slowly, but increases in cost of pro- 
 duction have been general in every mining region, due to the public 
 demand for more careful mining, better protection to the miners 
 and to the higher wage schedules which went into effect during 
 1910. 
 
 With the further decline in prices during the current year the 
 situation has become a serious one, and in certain competitive dis-- 
 
CONDITION OF BITUMINOUS COAL INDUSTRY. 247 
 
 tricts where competition is unusually keen and where low prices 
 have steadily prevailed for the past four years, many of the oper- 
 ators are dangerously near complete bankruptcy, and some means 
 must be devised to relieve this situation if it is possible of ac- 
 complishment ; otherwise the failure will be seriously felt by manu- 
 facturers and retail dealers everywhere. 
 
 Source of Information. 
 
 In order to obtain the most authentic information possible 
 along these lines, the Secretary of this Congress sent out blanks 
 to all the principal coal operators scattered throughout the country, 
 making inquiry along the following lines : 
 
 First. Capital invested in business. 
 
 Second. Average total cost of production. 
 
 Third. Average labor cost per ton (mine workmen only). 
 
 Fourth. Average cost of administration. 
 
 Fifth. Average selling price at mine. 
 
 Sixth. Estimate of increased cost necessary to meet demand 
 for conservation. 
 
 Seventh. Average depreciation of values per 100 tons daily 
 capacity. 
 
 Eighth. At what price coal must sell. 
 
 Ninth. What percentage of coal is sold at a loss. 
 
 Briefly stated these statements revealed the following con- 
 ditions : 
 
 That for every ton produced annually there is an average 
 investment of $1.41 in coal lands, machinery, and equipment neces- 
 sary to that production. These statements show that increases in 
 cost of production have been general in all States, varying from a 
 fraction of a cent in States like Tennessee and Kentucky to 28 cents 
 per ton in the Southwest. The average increase is near 7 cents 
 per ton in all fields. Indiana was benefited by steady work fol- 
 lowing the last strike, and the higher selling prices which prevailed 
 at the time enabled those operators to earn a little profit. 
 
 Increased selling prices are generally reported for 1910 aver- 
 aging 4 cents per ton, but it is not sufficient to offset an increase of 
 7 cents per ton in production costs, during the same period, so the 
 year as a whole shows a decline in profit. 
 
 During 1910 the total cost of production is estimated at $1.07 
 per ton. The cost of mine labor and mine supplies total 95 cents 
 per ton, and the cost of administration, such as office expense, sales 
 expense, accounting, insurance and taxes, legal expense, etc., usually 
 
248 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 classed as general expense was 12 cents per ton. This does not 
 include interest, depreciation or profit. 
 
 The average price obtained at the time, was approximately $1.11 
 per ton. The increased cost necessary to meet the demand for 
 conservation was estimated in different fields from 2 cents to 15 
 cents per ton, with a possible average of 5 cents in the country 
 as a whole. The depreciation of coal reserves and plant equipment 
 would require a fund of approximately 4 cents per ton. 
 
 The increased prices necessary to make the business show a 
 fair return on the money invested ranged from 5 to 25 cents per 
 ton in various regions. The average increase requested would ap- 
 proximate 12 cents per ton. 
 
 Reports Indicate Astounding Conditions. 
 
 These reports indicate astounding conditions existing in the 
 bituminous coal industry at the present time. It is undoubtedly 
 true that there are many individual operators, or even entire dis- 
 tricts, where unusual mining conditions, favorable quality of coal, 
 proximity to large consuming centers, or scientific management, 
 enable certain companies to show profits ev^n under present condi- 
 tions, but it is also true that there are many more showing heavy 
 losses, and an industry of so great magnitude must be considered 
 as a unit in a matter of this kind. Let us, therefore, make a closer 
 study of the more important questions, such as production and 
 consumption, costs and realization and their effect upon the in- 
 dustry as a whole. 
 
 Statistics show that while our bituminous coal production in- 
 creased rapidly from nothing in 1821 to 1,111,156 tons in 1842; 
 to 10,625,381 in 1865; to 105,268,963 in 1891; to 306,138,096 in 
 1906; and to 415,500,000 tons in 1910; our consumption kept ahead 
 of or apace with production until 1891. In 1821 consumption was 
 19,617 tons in excess of production ; in 1842 it was 123,879 tons in 
 excess of production; but in 1891 the total consumption was only 
 105,016,407, or 252,556 less than production, and the difference 
 has steadily increased until in 1906 consumption was 6,002,051 less 
 than production. The excess of production over consumption has 
 steadily increased each year, and has resulted with mines operating 
 to a restricted capacity. 
 
 A further example of our over-production and still greater 
 over-capacity was demonstrated during the strike period of 1910 
 in Illinois, Indiana and the Southwest: 
 
CONDITION OF BITUMINOUS COAL INDUSTRY. 249 
 
 Illinois was idle six months of the year, but produced 45,900,- 
 246 tons, as compared with 50,904,990 the previous year, working 
 twelve months. 
 
 Indiana was idle some thirty days and produced 18,389815, as 
 compared with 14,834,259 in 1909. 
 
 Oklahoma, Arkansas, Kansas and Missouri were also idle six 
 months in 1910, due to the strike, and the production showed an 
 average decrease of only 20% under the figures for 1909. 
 
 The possible capacities of West Virginia mines is fully 75% 
 over the present total production. The Pittsburgh. and No. 8 Ohio 
 districts are reduced to 30% operation during three to four months 
 of each year, while navigation is closed on the lakes. There are 
 very few properties that have operated over 225 working days per 
 annum during the past three years. 
 
 This over-production and over-capacity to produce has resulted 
 in a ruinous competition to obtain business. Many of our coal prop- 
 erties have fixed charges in the nature of bonds and other obli- 
 gations, such as minimum royalties, etc., which necessitate maxi- 
 mum production, and in many cases the management figure their 
 losses less by taking the low prices and operating full time than 
 by obtaining their proportion of profitable domestic business. 
 
 The development of so many new high-tonnage plants in 
 recent years has also had a marked effect upon the industry. When 
 it is realized that our production and consumption to date have 
 practically doubled* every ten years, the large increase in the number 
 of new mines can be appreciated. The "deadwork" haulage, 
 drainage, and ventilation costs are always lower in new develop- 
 ment, on account of the concentrated area under operation, and 
 they are able to produce coal much cheaper than their older com- 
 petitors. They fix the prices in the markets which must be met 
 by the other mines, but in time they have the same situation to 
 face. To meet this competition, underground development is 
 too often carried on in such parts of the mines as can be made to 
 produce cheaply and in order to escape the heavy yardage prices, 
 excessively wide entries are driven, and this condition coupled 
 with the narrowing of pillars in order to lessen the cost of opera- 
 tion, ultimately causes heavy falls and squeezing to such an extent 
 that the mines are robbed of half of what would otherwise be their 
 natural existence, and in their early abandonment large acreages 
 of coal are wasted without hope of recovery. 
 
250 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Statistics show that the average prices received at the mines 
 during the past seven years are as follows: 
 
 1904 1905 1906 1907 1908 1909 1910 
 1.10 1.06 1.11 1.14 1.12 1.07 1.11 est. 
 
 The average price for the entire period has been $1.10 and 
 the fluctuation between the maximum and minimum prices has been 
 only 8 cents per ton. It is also interesting to note that the prices 
 for 1910 and 1904 and the average price for the period are prac- 
 tically identical. 
 
 Production Cost Increases. Seven Cents in 1910. 
 
 During 1910 the increased cost of production as compared with 
 the previous year is estimated at 7 cents per ton in all fields. 
 Some idea of the increased cost of producing coal can be obtained 
 from the following table, which shows the mining rates in the four 
 largest States operating with organized labor. All other districts 
 show similar increase but the amount is difficult to ascertain : 
 
 Base Ind. Thin Rock 
 
 Rate Mine Bitum. Vein Ohio 
 
 111. Run. Lump. W. Va. Lump. 
 
 April 1, 1898, to April 1, 1900 40c 40c 66c 66c 66c 
 
 April 1, 1900, to April 1, 1903 49 49 80 80 80 
 
 April 1, 1903, to April 1, 1904 55 55 90 90 90 
 
 April 1, 1904, to April 1, 1906 52 52 85 85 85 
 
 April 1, 1906, to April 1, 1910 55 55 90 90 90 
 
 April 1, 1910, to April 1, 1912 58 58 95 95 95 
 
 Increase, 14 years .18c 18c 29c 29c 29c 
 
 Equiv. on run of mine basis 18 18 18.74 18.74 18.74 
 
 The above increase applies only to the "mining rate" that is, 
 the amount paid to the miner for loading one ton of coal at the face, 
 and proportionately higher wages are paid to all other mine work- 
 ers. The full increase in cost of labor per ton over this period is, 
 therefore, approximately 27 cents per ton, and approximately 9 
 cents of this increase has been taken since 1904. 
 
 With prices practically stationary during this same period the 
 profit to the operator shows a net decrease of 9 cents per ton. 
 
 We have already stated that for every ton produced annually 
 there is an average investment of $1.41 in coal lands, machinery, 
 and equipment necessary to that production. 
 
 Based on an annual production of 415,000,000 tons of bitu- 
 minous coal, there is an investment in the business of some $585,- 
 000,000. An investment in an industry of this nature, carrying the 
 risks to life and property which the mining industry does, and the 
 hazard of faulty conditions of seam, which no man can definitely 
 foresee, should net at least 10% in return as interest on the capital 
 
CONDITION OF BITUMINOUS COAL INDUSTRY. 251 
 
 invested, after setting aside a sufficient amount estimated at 4 
 cents per ton to cover depreciation of equipment and exhausted 
 coal lands. 
 
 The mining industry should net to the owner annual earnings 
 of $75,000,000. They earned $16,600,000 in 1910, and the current 
 year will show still further reductions. In other words our coal 
 operators are absorbing as losses in excess of $58,500,000 per 
 annum, or slightly in excess of 14 cents per ton. 
 Solutions Suggested. 
 
 Over-production is the cause of this extremely deplorable situ- 
 ation. It has created a destroying competition in which only the 
 strongest can survive. It has caused a general unrest in the in- 
 dustry and dissatisfaction to mine owners and mine workers alike 
 and the question before us is how this over-production may be 
 taken care of and the business placed on a remunerative basis. 
 Two solutions are suggested. 
 
 First. The creation of district sales agencies to handle the 
 entire product. Those agencies would control the total output and 
 name prices which would return a fair profit on the investment and 
 at the same time permit the necessary expenditure for conservation 
 of resources and careful and safe mining. Such agencies would 
 result in a very large reduction of the present sales cost and by 
 concentrating the mining operations the ultimate cost to the con- 
 sumer would probably show little increase. These agencies could 
 maintain a more uniform distribution and by concentrated effort 
 could probably reach new markets which are not being supplied 
 from the United States at present. 
 
 This plan would require the alteration of the Sherman anti- 
 trust law and the creation of an interstate coal commission. The 
 commission would have to pass upon the justness of prices estab- 
 lished by the various district agencies, to see that owners obtained 
 fair prices only, and to hear the public voice in reference to such 
 matters. The commission should also control the opening of new 
 mines in such a way as to keep production and consumption apace 
 with one another. 
 
 Second. The Government could assist in the development of 
 foreign export trade. A large percentage of the total production 
 of this country is available for profitable export, and by directing 
 the surplus production from Eastern Pennsylvania and Eastern 
 Virginia, which is now encroaching upon the trade formerly en- 
 joyed by Illinois, Indiana, and Ohio, the solution would at least be 
 partly reached. 
 
252 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Other countries have had their coal problems similar in all 
 respects to our own as now existing. 
 
 Great Britain met it by the most careful of mining methods 
 and preparation of the product; and combination with transporta- 
 tion interests has gained for her the markets of the world for her 
 surplus, at highly remunerative prices, and this result is only pos- 
 sible by continuous operations and large export shipments. British 
 exports have been: 
 
 In 1907.. 63,600,947 tons 
 
 In 1908 62,547,175 tons 
 
 In 1909 63,076,799 tons 
 
 In 1910 67,085,476 tons 
 
 It took Germany many years to perfect a coal syndicate, which 
 under a single sales agency with the co-operation of the govern- 
 ment, has produced substantial returns to the mining companies, 
 and at the same time increased the export tonnage; and there 
 was shipped in this particular class of trade : 
 
 In 1909 ". 10,321,536 tons 
 
 In 1910 10,963,195 tons 
 
 In 1911.. 12,614,952 tons 
 
 Belgium, mining in places only 1 1 inches of coal, and at depths 
 exceeding 3,500 feet, had problems to solve more serious than ours. 
 She met them by consolidation and single sales agencies, and 
 these agencies get prices which represent fair returns in capital in- 
 vestment. They get them by co-operation with the French and 
 German syndicates. 
 
 The French laws, as we understand them, are much in line 
 with our own trust laws, but there, too, syndicates exist and regu- 
 late prices and work in harmony with the other continental 
 syndicates. 
 
 The second solution, therefore, of the problem lies in the ex- 
 portation of our surplus production. The coal tributary to the 
 Atlantic and Pacific seaboards is the equal in quality of that pro- 
 duced abroad. Government assistance in the shape of a bonus or 
 subsidy would, therefore, not only solve the coal problem, but also 
 the question of the rehabilitation of the American mercantile marine. 
 
 The above plans are simply suggestions briefly outlined for 
 consideration by this convention and those interested in the 
 industry. 
 
 It is self-evident that the operators must join in a plan which 
 will protect their investment and at the same time permit healthy 
 and sane competition. 
 
CONDITION OF BITUMINOUS COAL INDUSTRY. 253 
 
 It should be the duty of this Congress to carefully consider 
 ways and means of working out the problem ; additional legisla- 
 tion is necessary, and capital, together with labor and the consumer, 
 should appreciate the benefits to be derived from placing an in- 
 dustry of so great magnitude upon a substantial basis. 
 
 Germany and Great Britain have met the same conditions 
 successfully by extending the necessary aid to their coal industries. 
 Is not the coal industry of the United States entitled to the same 
 consideration? 
 
 Mining Congress Can Bring About Relief. 
 
 Wonderful results have been accomplished for the benefit of 
 agriculture by the National Government appropriating from $20,- 
 000,000 to $40,000.000 per year for the last twenty years for that 
 particular industry, yet mining important and hazardous as it is 
 has received but little consideration. This organization can, by 
 thorough, concerted and determined action, not only arouse public 
 interest in our cause, but the state and National legislators will, 
 beyond doubt, when the conditions of the industry are properly 
 made known to them, afford relief no less generously than Great 
 Britain and other foreign governments have done. 
 
 Now, Mr. Chairman and Gentlemen, there is only one way 
 that we can expect to get relief, and that is not wholly and solely 
 by the preparation of papers like this nor by oratory on this stage. 
 Both are necessary to arouse interest, but what we should do as 
 coalmen is to try and make this Association, this Congress, strong 
 as it is, more powerful, by adding to its numbers all other coalmen 
 it is possible to convert and bring into its ranks. Then by the 
 proper application of pressure that we could then bring to bear with 
 the aid of our friends from the Western States engaged in other 
 classes of mining, and we assisting them as they do us in things de- 
 serving, we will accomplish what we go after; and I hope that the 
 coalmen of Illinois, a competitive field, and in fact the country, that 
 have been so seriously affected and depressed by the competitive 
 conditions surrounding us, on matters that we seemingly are unable 
 to control ourselves, that they will join this organization and make 
 it strong. I hope the organization will be so changed that it will 
 have State organizations. Then we can get together, formulate 
 plans to do business in a way that I am sure the Government 
 representatives will permit. (Applause.) 
 
The Condition of the Bituminous Coal Mining Industry. 
 
 BY WALTER S. BOGLE, 
 CHICAGO, ILL. 
 
 Mr. Chairman and Gentlemen of the Convention: I was not 
 aware until night before last that I would be expected to address 
 this convention. I was not present at your session last evening, but 
 from what I have heard it seems to me that conditions and relief 
 have already been very ably presented, and as a result I can only 
 touch crudely and briefly on the matter and perhaps repeat some- 
 thing that has already been told you. 
 
 The condition of the coal trade is such a painful subject that I 
 don't care to dwell on it. The important question in my mind is 
 relief. Who has got it, and who is going to lead us out of the wil- 
 derness? Many bright minds have given this subject careful con- 
 sideration, and many plans have been presented, but when analyzed 
 they present one of two alternatives either a company large 
 enough and with capital enough to absorb all operations in a dis- 
 trict or state or else combinations among the operators themselves. 
 The first alternative is apparently impossible, because the credit of 
 the coal trade has declined to such an extent that the public re- 
 fuses to buy coal securities and no financier can be found able and 
 willing to underwrite them. Another difficulty has presented itself 
 along that line, and that is there are men in the coal trade who are 
 proud of their long and honorable career, who have built up a 
 valuable clientage, and who refuse to lose their identity. Who can 
 say {hem nay? It is a privilege that belongs to every American 
 citizen, and I hope it always will, furthermore, I hope it will be 
 encouraged, because it is along those lines that I believe we will 
 get the best development in our commercial life. Of the other 
 plans presented, many have merit, many would fit the situation, 
 but they all violate the Sherman anti-trust law, and that is the 
 end of them. Until the Sherman anti-trust law can be changed 
 or modified I can see but little relief in sight. The Sherman anti- 
 trust law, like many other laws on our statutes, was passed hastily 
 and without due consideration of the results that it would bring 
 about. The object of the law was good, and that was to restrict 
 combinations and every self respecting business man or citizen of 
 this country will stand for a law that will accomplish that. They 
 want such a law on the statute books, but in order to accomplish 
 
CONDITION OF BITUMINOUS COAL INDUSTRY. 255 
 
 that, the Sherman anti-trust law compelled unbridled competition, 
 and in its actual operation has been bringing about the very object 
 for which it was passed to prevent. Unbridled competition means 
 the survival of the fittest, the strong against the weak, the weak 
 falling by the wayside and being absorbed by the strong, and while 
 the process is slow it is none the less sure, and the ultimate result 
 is a combination of interests similar but perhaps on different lines 
 than the law was passed to prevent. In many industries in this 
 country the law has brought the individuals up to where they have 
 had to make a choice as between bankruptcy and violation of that 
 law, and they have not hesitated to violate the law and take the 
 consequences, if they were caught, rather than to go into bank- 
 ruptcy, and I am not brave enough to blame them. But any law, 
 the operation of which produces such results, is wrong. It is a 
 damage to any community and should be changed. 
 
 I believe I have been a consistent friend of labor since I was a 
 boy, but I cannot resist calling attention to the difference in laws 
 governing capital and business in this country, and the laws govern- 
 ing labor, one compels unbridled competition, the other permits 
 unrestricted combination. Now, few of us object to labor organ- 
 izing; we look upon it as a necessity, at least many of us do, but 
 the organization of labor without any restrictions whatever, has 
 legalized the greatest trust that ever was known to man. It is 
 governed by the same human minds, the same human passions, the 
 same human greed, the same human selfishness that governs any un- 
 restricted combination, and it is not to be wondered at that it is 
 rapidly developing all of the obnoxious and all of the bad features 
 of an unrestricted combination. 
 
 The problem or the work that is laid out for us appears to me 
 to be a campaign of education, which will bring about a change in 
 this law. That may seem quite an undertaking to many of you, 
 but it is not as great an undertaking as it would appear to be on 
 first consideration, and the time is ripe for it. The business of this 
 country is largely paralyzed by the uncertainty of how that law is 
 going to be applied. The Supreme Court of the United States has 
 said that a reasonable combination is all right, but the construction 
 of the word "reasonable" would vary as frequently as there are 
 "individuals," as the construction of it would be governed largely 
 by personal interest. But there is a statement on the part of the 
 highest court in the land that under certain conditions combina- 
 tions are reasonable and should be enjoyed, and it is right and 
 proper that Congress should define absolutely and clearly what is 
 
256 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 reasonable. The American people will uphold you in that demand. 
 The American people have never wilfully visited any unmerited 
 hardship on any individuals or any corporations, or any body of 
 men, and they never will when they understand a question thor- 
 oughly. Where they have been educated to understand a ques- 
 tion their decisions have been invariably right. A very good proof 
 of that is this, that today there is a rank violation of this law, that 
 is not only approved of, but is upheld by them, a violation of this 
 law that has been declared such by the Supreme Court of the United 
 States. It is not only approved of and upheld by the people of the 
 United States, but it is approved of and upheld by one of the 
 greatest executive and I might say governing bodies of the United 
 States, and that is the railroads of this country are allowed by the 
 Interstate Commerce Commission to establish uniform rates, or 
 agreed rates, on freight and passengers, and when they do it in my 
 opinion the Interstate Commerce Commission take the only practical 
 and sensible course that is open to them. It is a necessity. Without 
 it the railroads would be unable to furnish the necessary facilities 
 to accommodate the commerce of the country and a continuance of 
 unbridled competition between them would result in bankruptcy for 
 many if not all. Either of which would be a public calamity. Every- 
 body would feel it, and there was only one practical course open 
 and that was a reasonable combination, and that is what they are 
 acting under today. Now if that is necessary for the railroad 
 world, certainly it is equally necessary for the commercial world. 
 If the railroad world is entitled to that consideration, then the com- 
 mercial world is entitled to that consideration. I don't wish to 
 disturb that situation. On the contrary, I would lend what assist- 
 ance I could to maintaining it. I simply refer to it as an example 
 of how this matter works out, and of the necessity that exists and 
 the many arguments that you have at your command to bring the 
 pressure necessary to remove this burden which is rapidly becoming 
 greater than the disease. (Applause.) 
 
Sherman Anti-Trust Law With Special Reference to the Coal 
 
 Mining Industry. 
 
 BY D. W. KUHN, 
 PITTSBURGH, PA. 
 
 Down in Tennessee, a good many years ago, the supreme 
 court of that state, in its interpretation of the exemption laws, 
 held in an elaborate opinion that a mule was a horse, and has ever 
 since stuck to that decision. The Supreme Court of the United 
 States, with a purpose unquestioned, in its interpretation of the 
 Sherman act in the last twenty years, has sometimes as much as 
 said that a mule was a horse and at other times that a mule was 
 not a horse. The country at large at the present time entertains a 
 similar hazy and uncertain opinion of that act and the baffling 
 decisions on it. There seems to be, however, one striking exception, 
 and that is, the distinguished Attorney General of the United 
 States, who entertains a different opinion. He believes that every 
 horse is a mule, and for that reason should be subjected to "con- 
 dign punishment." One of the mysteries connected with this statute 
 is that no one has been able to maintain the same opinion about it 
 for any length of time. The authors of the act were not even of 
 the same opinion as to what it meant. The political party that 
 fathered it has sought to change it. The Supreme Court of the 
 United States in 1895, m tne Knight case, held in effect that in- 
 dustry production was not within the statute, and then reversed 
 itself in other decisions. Some of our statesmen have see-sawed 
 on the question have at one time favored a liberal construction 'of 
 the act and at another time insisted that it should be given a strict 
 and literal construction. The Department of Justice through suc- 
 cessive changes of party politics, however, maintained for a long 
 time the same opinion. The Attorney Generals of the United 
 States . from the Cleveland administration down to the present ad- 
 ministration have held that the application now sought to be made 
 of the act was not a valid one. And ex- President Roosevelt, who 
 started the so-called anti-trust proceedings, has condemned it in a 
 pointed and emphatic declaration. "So incapable of enforcement," 
 to quote ex-President Roosevelt, "as to make decent men violators 
 of the law against their will and to put a premium on the behavior 
 of willful wrongdoers." 
 
 In view of all this, is it mere industrial resentment that inquires 
 
258 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 "Where are we at?" And where such meandering and divergence 
 of opinion are held by statesmen and the high courts of the country 
 is it to be wondered that the common mind of the country, engaged 
 in the battle and strife of competition, is bewildered? 
 
 The passage of the Sherman act was a combination of militant 
 morality and political expediency the worst kind of a combina- 
 tion. The literal enforcement of that drastic statute would have 
 blighted industry as nothing else ever did in a modern commercial 
 country. There is nothing capricious in the development of in- 
 dustry and commerce. They are always a growth ; any extrinsic 
 attacks quickly disturb them, and efforts looking to their revival are 
 always prolonged. "Military morals can direct the axe to cut down 
 the tree but it knows nothing of the quiet force by which the forest 
 grows." The concentration of industry, the adoption of corporate 
 combination in business is not the secret method of some monster 
 of finance whom we have pictured to us as the acme of everything 
 gross it is the natural and necessary attendant on industry and 
 commerce in the wonderful inventions that multiplied and intensi- 
 fied production, and which has almost put the markets of the world 
 at the entrance of every plant and mine. But laws that run 
 counter to the spirit of the age are remembered in a short time 
 as only so much legislative bric-a-brac. This country has had an 
 experience of an unfortunate kind with fiat money. And the en- 
 actment and maintenance of drastic laws against industrial cor- 
 poration and corporate combination in line with the best practice 
 of all commercial countries will be no more effective than the 
 solemn government stamp of a dollar on a piece of stiff paper. 
 Both are species of legislative paternalism that sooner or later die 
 out ; both belong to earlier and cruder ages, and are found discarded 
 by other countries which are guided by practical experience and by 
 enlightened methods. The trend of commerce and trade in the 
 same form or mold is worldwide. Local peculiarities and pro- 
 vincial customs fall away. The use of similar inventions, similar 
 money markets, similar competing trade conditions arise in all 
 countries so that industry and commerce are becoming a uniform 
 industry and commerce. 
 
 No man, no body of men, who consider the question in its 
 broad aspects can believe that the Sherman a-ct was passed to 
 meet the conditions of the great and growing industries of this 
 country. Certainly no one can read the act and say that the 
 conservation of industry and commerce is contemplated in it ; 
 and that defect alone is sufficient to warrant its prompt repeal or 
 
SHERMAN LAW AND THE COAL MINING INDUSTRY. 259 
 
 amendment. Voltaire, I believe, said that the repressive laws of 
 a country were the true measure of its backwardness, and by that 
 test our country has reached its majority in ignorance, for the 
 act has been a law just twenty-one years. 
 
 To empirically declare, as do the provisions of the Sherman 
 law, that combinations in restraint of all forms of competition are 
 not lawful, is so sweeping, so un-American in spirit that we do not 
 wonder that the Supreme Court of the United States resorted to the 
 broad principles of construction in seeking to give a meaning to it. 
 Conduct which was heretofore regarded as exemplary is con- 
 demned under the prohibitions of the Sherman act in the same way 
 that actual fraud is condemned ; there is no line of demarkation be- 
 tween virtuous and vicious acts. The law in its sweeping con- 
 demnations does not recognize that there is such a thing as virtu- 
 ous corporate conduct. At one time the members of the convention 
 in the French Revolution held that an individual had no right to be 
 either virtuous or celebrated in their eyes. The noisy proponents 
 of the anti-trust laws, like the ancient Bardolph, with more vigor 
 than understanding, declare that the business of the country has no 
 right to be either virtuous or prosperous. 
 
 Sherman Act Repressive, Not Remedial. 
 
 The Sherman act is not in effect a remedial law, but one of 
 repression. It was passed in the heyday of corporate orgies that 
 followed the Civil War, and it was prompted by something of a 
 revengeful spirit that the business of the country at that time 
 must be impressed with a wholesome terror of the law. It was the 
 law militant in all its harshness. Terror is the keynote to that 
 statute, and it was its sweeping and terror inspiring provisions 
 that made it a dead letter for so many years. Those who advocate 
 its enforcement are fired by the same noble zeal that inspires the 
 Western town marshal, in "shooting up" the town for one "bad 
 man," to kill a dozen of the best citizens. It is a good illustration of 
 how not to draft a Federal statute touching anything as delicate and 
 important as the business of the country. 
 
 Seth Low raised a true question when he asked, will the "people 
 who have constituted the greatest republic in history by the com- 
 bination of many states, even for a moment, deny to its own com- 
 mercial agencies the opportunity of giving better service by pro- 
 ceeding along the same line?" 
 
 Many of the states have enacted so-called anti-trust laws, pat- 
 terned after the Sherman law, the literal enforcement of which 
 
260 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 would blight commerce and industry as would the plague. They are 
 kept on the statute books as a token of political probity and as a 
 legislative threat against industry, and not as a constructive policy 
 to regulate commerce. 
 
 The Sherman law has developed another phase which in time 
 will only breed trouble. The Supreme Court of the United States 
 has stated that the Sherman law covers combinations and con- 
 spiracies of labor as well as of cases- of that kind in business and 
 industry. Labor in its reaches of development has infringed the 
 provisions of the Sherman act. We feel sure that there will be 
 no prosecutions of the so-called labor trusts, and it would require 
 a stretch of imagination to fancy the beginning of proceedings of 
 that character in political years. We do not dispute the right of 
 labor to organize, but we do insist that the same law and the same 
 rule of conduct which have been prescribed for both should be en- 
 forced against both in the same way ; and if it is not so enforced, we 
 not only have a bad law on our statutes but we have adopted a policy 
 of insincerity and hypocrisy in the enforcement of law. 
 
 Any statute or law that inspires fear or apprehension in busi- 
 ness or industry, which can stand the test that is universally re- 
 garded as lawful, is a menace to the country, and the Sherman Act 
 today is a wet blanket upon industry. We are told now that what- 
 ever rough edges the statute had, the two recent important de- 
 cisions have made its meaning clear, but the fact that the most 
 casual reference to the status of the law by either the President or 
 the Attorney General directs the attention of the whole country, 
 shows that. there is honest doubt as to the rule of conduct now pre- 
 scribed. In earlier times every man had his confessor to help him 
 meet the exactions of his overlord ; today every man engaged in 
 business or industry, or hoping that he may stay there, is seeking 
 his lawyer for advice, but unfortunately, the lawyer is more in the 
 dark than his client. 
 
 No one can read the decisions of Chief Justice White in the 
 Standard Oil and Tobacco cases without being impressed with a 
 sincerity of purpose worthy of that high court, but the resort to well- 
 known rules of statutory construction cannot in the nature of things 
 formulate a constructive policy for the commerce of the country, 
 and, say what we will, it leaves the rights of the industries in an 
 insoluble dilemma. The trouble is not so much with the court as 
 with ourselves; we expected the Supreme Court out of a single 
 statement of facts in the cases before it to formulate a policy which 
 would at once comprehend all possible cases, and because the court 
 
SHERMAN LAW AND THE COAL MINING INDUSTRY. 261 
 
 failed to promulgate a comprehensive policy from its interpreta- 
 tion of that cumbersome statute it is criticized. The court was 
 never intended or fitted to perform such functions. We pass crude 
 and impossible economic laws economic laws which have their 
 origin in some fit of public indignation or emotion and throw on 
 the Supreme Court of the United States the burden of making 
 them intelligible, flexible and responsive to the conditions of the 
 country. We seek to have the court exercise powers never granted 
 to it and make it assume a task impossible for it to fulfill. But the 
 court, no doubt, in the two recent decisions made a rift in the 
 cloud of confusion and uncertainty regarding the statute. 
 Belongs to Period of Blood-Letting in Medicine. 
 
 We are told now that we must go back to the period of old 
 fashioned, unlimited competition to avoid what is supposed to be 
 worse socialism, that business was done to a considerable extent 
 in those earlier days and that it can be done again. Among some of 
 the heirlooms of that period, not so long ago in this country, we 
 find laws that sought to correct business abuses by imprisonment 
 for debt. We revived the spirit of those corrective laws in the 
 Sherman act, but we now seek to imprison people for seeking to 
 keep out of debt. The Sherman act and the spirit which prompts 
 the maintenance of such laws belong to that period the period of 
 blood-letting in medicine. 
 
 No modern country has ever been more unfortunate than ours 
 in its' laws which affect the prosperity of the people and the eco- 
 nomic conditions of the country. Our unscientific banking laws, 
 prompted largely to revenge certain practices at the time of their 
 adoption, have often brought the prosperity of the country to a halt. 
 The depreciated money craze, with all its ignoble history, followed 
 in the wake of that bad legislation, and if we are to make the at- 
 tack on the business of the country a political status now, we cer- 
 tainly will show that we possess a genius for doing the wrong thing 
 in our over-production of legislation. 
 
 The protective tariff, which has been the main issue of a great 
 political party for half a century, was made a law to benefit and 
 foster the industries of the country. This protective tariff was 
 one of the earliest forms of conservation. Whatever evils it may 
 have developed, it originated at least from a desire to foster the 
 business of the country, and yet those who favor a protective tariff 
 must admit that we checkmate the benefits of that protection with- 
 out eliminating the evils of the system by the enforcement, or 
 threatened enforcement of such laws as the Sherman act. We 
 
262 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 hear much today about the conservation of our resources. It 
 sounds well, and we like high sounding terms in this country, but 
 it is a travesty to advocate the policy of conservation and at the 
 same time maintain laws that keep the coal mining industry of the 
 country in its present plight. 
 
 The statement is made by a high authority that aside from the 
 loss of life, the injury and loss sustained by the country from the 
 enforcement of the Sherman act, and its threatened enforcement, 
 the last few years has been equal to that sustained by the country 
 during the Civil War. Are there not limits to be placed on re- 
 pressive laws as well as on the limits of corporate greed ? 
 
 We are, above everything else, an industrial country. Our in- 
 dustries are the portend of the United States. American initiative, 
 American inventive genius and our vaunted resources have made us 
 so, but the victories of industry in the world today are won only on 
 the sovereign field of reasonable freedom not by license to destroy 
 competitors nor by unlimited competition. Is it not about time that 
 this country should consider the great body of industry, conducted 
 in the main properly, as well as to consider only the evils found in 
 it? What is the natural and instinctive conception, unbiased by 
 prejudice, politics or greed, for the necessity of a law to meet the 
 industrial conditions? It certainly is not the Sherman act or its 
 present status. Converting the Department of Justice into a Federal 
 police department will not correct and at the same time build up 
 the industries. In the first place we must remember that concen- 
 tration, which is one form of conservation, is fundamental to indus- 
 trial life and health. From some of our past failures this country 
 should profit by the methods adopted in other commercial and 
 competing countries, where they promote their industries for the 
 public good, and at the same time prevent coercion, force and fraud. 
 Germany in the last twenty-five years has made the greatest ad- 
 vance in industrial development ever recorded by any country. It 
 is recognized that her industrial supremacy is the result of definite 
 and deliberate statesmanship begun shortly before the passage of 
 our Sherman act. Combinations with wholesome restrictions are 
 not only permitted but are encouraged in Germany. Our country, 
 whether it will or not, is being forced into foreign markets with it - 
 manufactured products. Its export of food products must in time 
 decrease. In the United States the population in the last thirty 
 years has increased 85% and its foreign trade 50%. In Germany 
 during the same thirty years the population has increased 35% and 
 her foreign commerce has increased 250%. Germany is an importer 
 
SHERMAN LAW AND THE COAL MINING INDUSTRY. 263 
 
 of foodstuffs and raw materials, whereas the United States grows 
 the one and finds the other at hand. And unless we promptly adopt 
 in this country a well settled and constructive policy looking to the 
 maintenance of our industries we will seek a lower level in the 
 race for foreign business. From an impregnable position of indus- 
 trial supremacy we will be reduced to an aggregate of industrial 
 fragments if we do not meet the situation with something con- 
 structive, as well as corrective. 
 
 Doctrine Inherited from England. 
 
 We inherited from England the doctrine of restraint of trade. 
 About the time our country was first beginning to interpret the 
 Sherman act, England met and passed upon similar industrial and 
 trade combinations. While following the same common law,, the 
 same precedents under it and- the same rules of construction, Eng- 
 land held that combinations unattended by coercion and fraud were 
 a benefit to the public and entirely lawful. The English decisions 
 are illuminative of the ''perpetual quest for justice" in England, 
 and of the operation of its law as a servant of the general weal. 
 
 Germany, England and France have fostered concentration and 
 industrial co-operation. They have found no evils growing out of 
 them that cannot be purged without resort to destructive methods. 
 Human nature certainly is no worse here than in those countries, 
 and yet we seek to repress and destroy such forms of industrial 
 growth. In our crude legislative and administrative efforts we tear 
 down where we should build up. We "make a solitude and call it 
 peace." 
 
 Canada, which refused our reciprocity agreement, and which 
 believes that we have dissipated our resources, has recently adopted 
 a constructive policy for meeting conditions of corporate business. 
 Our country and Turkey are the two nations of the world that 
 hold fast to the antiquated doctrines of repression and destruction 
 for the elimination of evils. 
 
 In this and all other commercial countries coercion and fraud 
 are condemned, and these evils are prohibited without the necessity 
 of the enactment and enforcement of so-called anti-trust legisla- 
 tion. A homely and sensible requirement, to make every dollar of 
 stock represent an actual dollar of money or property, would bene- 
 fit the country in a much higher degree than any drastic piece of 
 anti-corporate legislation. As long as the actions of corporate com- 
 binations are not maintained in secrecy, but are susceptible to public 
 examination, We need never fear a recurrence of former trust evils. 
 
264 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Publicity in corporate conduct in any country is what sunlight is to 
 sanitation. In the countries which should furnish some guidance 
 in these great questions, it is publicity in some form that is the 
 directing force in the maintenance of their high industrial success. 
 
 If we ever do enter upon a full return to unlimited competi- 
 tion, which will necessarily be fiercer than in former times, no one 
 can doubt but that the battle will be to the strong and the cunning, 
 that the weaker ones will go down, and that the victors will develop 
 strength in proportion as the others grow weaker, and then we are 
 back where we started, with nothing gained and much lost and 
 wasted, and with more than an even chance of a recurrence to the 
 vicious forms of monopoly. In order to prevent such conditions 
 it is not necessary to have business men, purely as business men, 
 run the government, but we do need a display of industrial states- 
 manship statesmanship that has an eye for the upbuilding of in- 
 dustry on proper and constructive lines. 
 
 This country has, in a few years, not only developed a policy 
 of conservation, but a militant policy of conservation. Conserva- 
 tion means not only the preservation of the forests and the min- 
 erals, but it means the protection and upbuilding of the industries. 
 Among the Falstaff army of industries in this country, too poor 
 to fight, too cowardly or too virtuous to steal, the coal mining in- 
 dustry presents itself as one of the most bedraggled members of 
 these ragged recruits. The coal mining industry, as it exists today, 
 is a powerful protest against the fragmentary methods of doing 
 business which are sought to be impressed on the country. One of 
 the engaging consequences is that the consumers of fuel will in a 
 short time pay in heavy excess prices for the present dilapidated 
 condition of that industry. And it is strange, indeed, that those 
 who apparently seek and consider the welfare of the people are 
 so blind to obvious conditions conditions which of necessity must 
 work a hardship on the great body of the people. If it w r ere not 
 so serious it would be one of the ironies of our combination of 
 politics and statesmanship that a great industry is put to it not only 
 to plead for a living existence but that it must plead for the pro- 
 tection of those whom it serves and those whom it employs. In 
 that begging attitude it stands now, and has stood for some years, 
 and to all intents and purposes its appeals have been to deaf ears. 
 The Truth About the "Coal Baron:' 
 
 A simple and striking exaggeration fixes a notion among people 
 much more easily than a full and accurate truth. The moment a 
 newspaper begins to talk about a "Coal Baron" there immediately 
 
SHERMAN LAW AND THE COAL MINING INDUSTRY. 265 
 
 arises in the minds of many people a griffin clawed monster of un- 
 told power crushing the life out of toiling labor in the bowels of 
 the earth, and dragging down to poverty and ruin the consumers 
 of coal. Coal barons are like ghosts no one ever saw one, but for 
 that reason alone ignorant people believe in them. The coal opera- 
 tors are about the last class to whom such a term should apply, for, 
 if there is any one that is between the upper and nether millstone 
 it is the coal operator. 
 
 If the passage or construction of some ugly looking piece of 
 legislation under which somebody or everybody could be prose- 
 cuted, or more especially threatened with prosecution, would change 
 the coal mining industry for the better, it would no doubt be done 
 with promptness and dispatch. No one values more highly the 
 uses of the Mining Bureau, or more admires its Director, Dr. 
 Holmes, in his awful task of uplift work, than I do, but the Min- 
 ing Bureau, so far as it concerns the needs of the coal mining 
 industry today, is like a raisin in a loaf of bread. We are told that 
 the national government is necessarily limited on constitutional 
 grounds in what it may do for the coal mining industry that the 
 several states and the industry itself must work out its improve- 
 ment. All this sounds very well, bears the stamp almost of judicial 
 declaration, and there is only one objection to it, and that is, that 
 it is not true. Let us look at these governmental obstacles. The 
 Mining Bureau and the Geological Survey have investigated the 
 coal mining industry, they know the real and true conditions, they 
 know what causes the tragedy of the mines, they know what causes 
 the waste and dissipation of resources, life and energy in mining 
 operations, they know what will prompt exorbitant prices for fuel 
 in the near future and they know what is reducing the available 
 coal resources with frightful rapidity. To what purpose is all this 
 put? They are given the high honor of submitting these reports 
 with their recommendations to the industry and to the public, after 
 which they are duly filed in Washington, not even in a fireproof 
 building, and are soon lost to sight beneath their enveloped dust. 
 The operators would willingly follow these recommendations, but 
 they must conduct their industry in a way which must conform to 
 certain laws, and these laws, such as the Sherman act, negative in 
 effect the ability to carry out the recommendations of the govern- 
 mental bureaus. The Mining Bureau, after a careful examina- 
 tion of the mining industry in this and other countries, may recom- 
 mend that the industry should be conducted along certain lines in 
 order, properly, to effect the conservation of resources, the health 
 
266 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 and life of those engaged in this underground toil and to foster and 
 safeguard the industry itself. The Department of Justice will say 
 that that is all very well, but even though that is the only proper 
 way to conduct the industry for the benefit of the industry and 
 country, you will, nevertheless, be prosecuted, or threatened with 
 prosecution, if you attempt to adopt these methods. Here, indeed, 
 is a Chinese tyranny which is hard to reconcile with our funda- 
 mental declarations. 
 
 Not only that, but our state governments are helpless, ren- 
 dered so by the blight of the statutes of the Federal government. 
 The recent report of the Bureau of Mines of Pennsylvania shows 
 that there can be no progress in conservation of coal resources and 
 of human life in coal mining, until there is a readjustment in that 
 industry in some form of concentration, until laws are made which 
 permit such action. 
 
 At the last special session of Congress there were over twenty- 
 five different commissions appointed to investigate something or 
 somebody. There were none appointed to investigate the coal 
 mining industry. This industry for some years has been seeking to 
 have itself investigated, and invites and courts investigation now 
 by any governmental or congressional body. No commission could 
 recommend anything other than what is being advocated by this 
 Mining Congress. Over 80 per cent of the cost of mining coal is in 
 the labor, the cost of that labor plus the cost of only the most 
 essential matters in connection with the production of coal is, now 
 greater than the price received for it. A concern that manufactures 
 .a toy the company that makes kodaks shows by its report that 
 it made over $8,000,000 last year. The entire coal mining industry 
 from the Mississippi to the Pocahontas hills in Virginia did not 
 make eight thousand cents during that time. It did worse than that, 
 it lost and wasted human life and coal resources, to say nothing of 
 the spent energies of the industry. In this country it has become 
 almost a crime to say that any industry must raise the price of its 
 product, but a higher average price must be obtained for coal. This 
 does not mean that the general consumer will necessarily pay more, 
 it means a general adjustment of prices by which the operator will 
 obtain a reasonable profit. 
 
 Selling Coal to Canada at Loss. 
 
 Canada, when repudiating reciprocity with this country, crit- 
 icized us for wasting our resources. And we are selling and shipping 
 to Canada millions of tons of coal a year at an actual loss deplet- 
 ing our own coal resources and paying Canada to help us injure 
 
SHERMAN LAW AND THE COAL MINING INDUSTRY. 267 
 
 ourselves, all of which operates to increase the price to American 
 consumers of fuel. Evidently in some things Canada needed no 
 reciprocity. In a proper readjustment of the industry such losses 
 will be stopped, and in a concentration of coal mining operations 
 in the different fields a movement toward a higher level will be 
 found. 
 
 This country need have no fear of a monopoly of fuel by such 
 a movement of concentration. It is much more likely to buy its 
 fuel at a reasonable price in the future by having the industry in 
 this form. There is no more possibility of creating a monopoly in 
 that industry today than there is of creating a monopoly of the 
 elements. The necessities of the country and the industry demand 
 the lessening of the great number of coal mining operations scat- 
 tered throughout the country. In the present condition everything 
 operates to increase the price to the public now, and to largely 
 increase it in the future. It has been demonstrated that a multi- 
 plicity of mines is not wholesome from any standpoint; it causes 
 bad mining, great loss of resources and increases the cost of mining. 
 If coal were inexhaustible it might be a matter of indifference to 
 the country how the industry was conducted, but as that is not the 
 case, and as the readjustment of it is important to the consumers 
 of coal as to the coal operators, it becomes a matter for considera- 
 tion and action on the part of both. 
 
 One of the troubles of the industry has been that it has been 
 insensible to hope so long that it has made no efforts to reorganize. 
 Its sole virtue has been that of endurance. The coal operators are 
 usually long on talk and short on work when it comes to taking 
 action for some plan for reorganizing the industry and withdraw- 
 ing it from the fragmentary methods that have so long blighted it. 
 As Bismarck said, it is not more resolutions, more discussions, but 
 what we need is some iron and blood in our veins. Now, everything 
 in connection with this industry demands some form of reorganiza- 
 tion on lines of concentration. The operators should not only ad- 
 vocate it, but do it, and the government should co-operate in such 
 a movement if that were possible. There must be now some rela- 
 tion between the cost of mining coal and the price for which that 
 coal is sold. It is not necessary to have the government fix prices, 
 nor is it necessary to throw the entire coal industry of the country 
 into one great company. 
 
 It would seem now that a reasonable restriction of trade and 
 production is lawful. And in meeting that status of the law a con- 
 
268 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 centration of operation in every district should be undertaken by 
 the operators. 
 
 If the coal mining industry would actually begin such a move- 
 ment, work out constructively and put in force an actual merger 
 of this kind, not only a great step forward would have been made, 
 but it would be the dawn of a new era in that industry. Some action 
 of this kind, sooner or later, must be taken, the industry has waited 
 now too long for some one to point the way and undertake to start 
 a movement for improved conditions and a higher plane. And if 
 the operators of any given field would put their energy, their 
 money, as well as their prayers, into such an effort, I believe they 
 would receive their due reward and the approval of the consumers 
 of the country. To take any other course now is a further retreat 
 into the gloom of industrial despair. 
 
 Government and Public Warned. 
 
 And now I want to sound a solemn warning to the government 
 and to the public. When a miner has to tighten his belt in lieu 
 of something to eat when he is hungry, and a coal operator has to 
 pledge his mules to raise his payroll, this talk about the enforce- 
 ment of anti-trust laws and of jail sentences is just about as 
 effective with them as "tweedledeeing on melodious catgut." Such 
 declarations may cause those who control and dispense great liquid 
 capital to retire to cover, but the time has passed for that to impress 
 the desperate coal operator and miner out on the firing line. 
 
 Excepting some special coals, the coal mining industry has 
 produced its coal at a loss for the last several years in a wild com- 
 petitive struggle or competitive debauch ; it has for the last few 
 years fulfilled every injunction of the proponents of unlimited com- 
 petition, and the results speak for themselves. 
 
 The present wage scale is high if a miner should work eight 
 hours a day 300 days in the year double the reward for similar 
 work outside. But the miner cannot work more than half time, and 
 his year's reward is meager. To the fierce competition this is due. 
 The operator keeps 50 per cent more miners than are necessary. 
 The operator has to produce a maximum tonnage to prevent heavy 
 losses ; and to meet this condition he keeps open large areas of un- 
 derground workings, filled to the limit with miners; and only that 
 coal is hauled out which can be cheaply recovered. In the last 
 four years the coal operator has met every condition the country 
 sought to put on him, and he has failed. He has done everything 
 except reduce wages. The losses from operations cannot be con- 
 
SHERMAN LAW AND THE COAL MINING INDUSTRY. 269 
 
 tinued longer and a crisis is at hand. In my opinion it will reach 
 a culmination next spring. And unless something between now and 
 then is done to reorganize the industry, there is only one thing tha't 
 the operator can do to reduce the cost line below the present sell- 
 ing price, and that is, to cut wages. This is the last possible resort 
 of the industry, but the operator to maintain his solvency must and 
 will do it. 
 
 In my opinion, next spring, at the period of wage settlement 
 with the miners all over the country, there will begin one of the 
 worst industrial warfares this country has ever witnessed. Com- 
 pared with it the prostration of railroad traffic in England a few 
 months ago will be a holiday affair. The coal mining industry will 
 come to a full stop. We will have a feast of competition. The 
 consumers of fuel will compete with each other for coal when there 
 is no coal to be had. The miner will compete with the operator, 
 pitting his stomach against the endurance of the operator an en- 
 durance of despair. Into the welter of this turmoil the entire coun- 
 try will be brought. All this can be prevented, not by talk, by dis- 
 cussions, by resolutions, but by prompt, vigorous and constructive 
 action. And if it does come, the blame, the vengeful blame of the 
 people, will be placed where it belongs on the government and on 
 the weakling coal operator, for the blind and indifferent course of 
 the one and the irresolution and weakness of the other. 
 
Anti-Trust Laws in Their Relation to the Coal Industry. 
 
 BY GLENN W. TRAER, 
 CHICAGO, ILL. 
 
 The sale and distribution of coal in the various coal producing 
 states is in part subject to the provisions of the Federal anti-trust 
 statute, commonly known as the Sherman act, and in part to the 
 provisions of the anti-trust statutes of the respective states. The 
 Sherman act applies to sales of coal for shipment into other states. 
 The state laws apply to sales for local delivery or for shipment to 
 points within the respective states. The mere production of coal, 
 as distinguished from its sale and shipment, is governed by state 
 law alone. Discussion of the federal statute alone does not give 
 one a clear understanding of the insurmountable difficulties which 
 confront bituminous coal operators under present laws. Because 
 of limited time and my greater familiarity with the law and facts 
 in the state of Illinois, I shall confine myself to Illinois references 
 in discussing the local phases of the subject. 
 
 Let us set out briefly but clearly those provisions of the Federal 
 act and the Illinois act which are pertinent to this discussion. These 
 quotations follow the exact language of the two statutes respective- 
 ly, except as to the omission of words and expression which are 
 superfluous to this discussion. Both the Federal and State statute 
 impose harsh penalties for violation of their provisions. 
 
 The Sherman act provides : 
 
 "S. I. Every contract, combination * * * * or conspiracy in 
 restraint of trade or commerce among the several states or with 
 foreign nations, is hereby declared to be illegal" (and such con- 
 tract, combination or conspiracy is declared to be a misdemeanor). 
 
 "S. 2. Every person who shall monopolize or attempt to 
 monopolize or combine or conspire with any person to monopolize 
 any part of the trade or commerce among 'the several states, or with 
 foreign nations, shall be deemed guilty of a misdemeanor * * * *." 
 
 As now construed by the Supreme Court of the United States, 
 this statutory condemnation of monopoly and of restraint of trade 
 is about the same as the common law condemnation, with statutory 
 penalties added. Statutory law comprises all laws enacted by legis- 
 latures or by congress. The common law comprises the rules and 
 principles, not incorporated into statutes, adopted and established 
 by courts in their decisions upon questions not covered by statutes. 
 
AXTI-TRUST LAWS AND COAL INDUSTRY 271 
 
 The system of law of the several states comprise the common law, 
 but the federal system of law does not. The common law merely 
 made void as between the parties thereto, contracts unreasonably 
 restraining trade or tending to create monopoly. No punishment 
 was provided or penalty imposed. The substance of the common 
 law relating to monopolies and restraint of trade with penalties 
 added therefore was enacted into the Federal law by the statute 
 we call the Sherman act. 
 
 Stated more briefly the Sherman act prohibits 
 
 (a) restraint of trade with other states or foreign nations, by 
 means of contract or combination, and 
 
 (b) the monopoly of or attempt to monopolize any part of 
 trade or commerce with another state or with a foreign nation, by 
 any person or combination of persons. 
 
 These prohibitions regarding monopoly or the attempt to mon- 
 opolize are about as definite as is practicable. In fact, monopoly will 
 be rarely if ever literally absolute and it would be impractical to fix 
 by statute, percentages or degrees which should be necessary to con- 
 stitute unlawful monopoly. The conduct of the person or persons 
 charged with the alleged offense and the results they accomplish 
 must determine their guilt or innocence, in the usual course of the 
 administration of justice. Cases which arise will be settled in the 
 due course of affairs and uncertainty as to the future settlement 
 of specific cases not yet arisen need not paralyze or discourage 
 effective organization in different lines of business. 
 
 "Restraint of Trade" Indefinite. 
 
 But "restraint of trade" is a far less definite expression. It 
 may be held to condemn many things not at all of the character 
 or effect believed to be inevitable under practical monopoly, and 
 because of which monopoly always has been feared and con- 
 demned. The Supreme Court of the United States has held that 
 this prohibition must be construed "in the light of reason." If 
 this is intended to mean that only those acts in restraint of trade 
 are to be condemned which are of the same character as the acts 
 feared from monopoly and therefore injurious to the public as a 
 whole, it is unfortunate that it has not yet been so stated by the 
 courts of last resort. Indeed if that is what is intended it is diffi- 
 cult to understand why the Federal statute might not be safely 
 amended to that effect. 
 
 The Illinois anti-trust act provides : 
 
 "If any * * * * individual * * * * shall * * * * become 
 
272 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 * * * * a party to any * * * * understanding with any other 
 
 * * * * individual, to regulate or fix the price * * * * of any 
 commodity ; or shall * * * * become * * * * a party to any pool, 
 agreement, contract, combination or federation, to fix or limit the 
 
 * * * * quantity of any * * * * commodity to be * * * * pro- 
 duced or mined * * * * in this state, such * * * * individual 
 
 * * * * shall be * * * * guilty of conspiracy to defraud * * * *." 
 
 Before the enactment of the anti-trust statute in Illinois, the 
 general prohibition of monopoly and restraint of trade rested alone 
 upon the common law of the state. But the common law left some 
 things to reason in its application to alleged facts and it did not pro- 
 vide accompanying penalties as for criminal misconduct. There- 
 fore the Illinois statute quoted was enacted in which the use of 
 general terms like monopoly and restraint in trade is avoided and 
 the practical things most feared in and most likely to result from 
 a monopoly, namely, fixing prices and limiting output, are desig^ 
 nated with admirable clearness and prohibited under harsh penal- 
 ties. 
 
 Stated more briefly the Illinois anti-trust act prohibits : 
 
 (a) any form of understanding, between any two or more 
 persons, to fix the price of any commodity. 
 
 (b) any form of agreement, between any two or more per- 
 sons, to fix or limit the quantity of any commodity to be produced. 
 
 With this review of the law in mind turn now to a statement 
 of facts relating to the coal mining industry in the state of Illinois. 
 Almost three years ago I had the honor of addressing the American 
 Mining Congress in the City of Pittsburgh, and in the course of 
 my remarks described the conditions of the coal mining industry 
 in Illinois. The demoralized and economically unhealthful condi- 
 tions then described still exist and much of the language then used 
 still fits the case. 
 
 There are about three hundred independent coal producing 
 companies in the state, operating more than four hundred rail-ship- 
 ping mines. A tremendously rapid expansion of mining capacity 
 has been made possible by the extraordinary cheapness at which a 
 body of coal lands could be purchased from owners usually re- 
 taining the surface and the ease with which transportation facilities 
 are extended in a prairie state, and access given to large, but de- 
 ceptively alluring because already overfilled markets. Public neces- 
 sity seems to require that there shall be in existence at all times suf- 
 ficient mining capacity to supply the requirements of the winter 
 months. This inevitably means a large surplus capacity in the 
 
ANTI-TRUST LAWS AND COAL INDUSTRY 273 
 
 spring and summer months. But all reason has been exceeded in 
 that respect. The aggregate annual capacity of Illinois coal mines 
 is so much in excess of the aggregate annual demand for Illinois 
 coal that the average running time of all mines does not -now exceed 
 1 80 days per year. The natural fluctuation in the demand for 
 Illinois coal between summer and winter is such that the industry 
 never can expect to work full time. While Illinois coal can be 
 stocked a considerable length of time it cannot be mined many 
 months in advance, and held for use in the winter like anthracite 
 and more expensive eastern bituminous coals, because it contains 
 a higher percentage of moisture and will crumble and slack sooner 
 than the higher priced coals. Consumers of Illinois coal aggra- 
 vate, rather than help to overcome, this condition by refusing to 
 order coal as far as might be in advance of the actual need for 
 it. It must be produced substantially as ordered from time to time, 
 and this makes production or demand (and demand and production 
 mean the same thing in this connection) much less during the 
 months April to September inclusive than during the other months 
 of the year. This condition is so uniform that the relative per- 
 centages of production during the busy season and the duller season 
 have not varied materially in ten years except when temporarily 
 affected by anticipation of a strike or other abnormal business con- 
 ditions. 
 
 For several years the margin of capacity over and above sum- 
 mer requirements has been greater than is necessary to properly 
 supply a normal busy season. For the reasons given it never could 
 be hoped reasonably that the mines should average full running 
 time excluding only Sundays and holidays. But after making all 
 due allowances it is fair to say that the excessive producing capacity 
 results in an average loss of sixty days per annum for all mines, 
 compared with what might be properly expected with a reasonable 
 adjustment of the number of mines attempting to run, to the num- 
 ber actually required to fully and promptly supply all demands. 
 
 Si.rty Days. Lost Annually by 70,000 Miners. 
 
 There are more than 70,000 miners and mine laborers at the 
 mines in Illinois, working on the average sixty days per year less 
 than they could work if there were a reasonable adjustment of pro- 
 ducing capacity. This is equivalent to the absolute idleness for the 
 entire year of 12,000 to 15,000 men. This is an enormous economic 
 waste. Many miners are held in the industry working short time, 
 with resultant low annual earnings, when their labor might be use- 
 
274 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 fully applied in other industries where it is needed. Many less 
 miners could produce all the coal required and enjoy much larger 
 annual earnings. 
 
 The excessive number of mines kept open for operation causes 
 a scarcity of miners, makes miners much harder to get, more diffi- 
 cult to deal with, and makes it necessary to accept the services of 
 inferior miners, when, if fewer miners were required, operators 
 could choose the better class, which the miners themselves desire 
 shall be done. 
 
 The very low average number of days' operation causes coal 
 to cost much more than it would if fewer mines were operated a 
 greater number of days; and the natural endeavor of each indi- 
 vidual company to secure a greater number of days' operation than 
 the average depresses the selling price of coal to cost or less, in an 
 effort to avoid an almost certain greater loss by voluntarily accept- 
 ing a lesser one. 
 
 The intense economy forced upon the mine owners by these 
 conditions is seriously affecting the proper conservation of the coal 
 deposits. 
 
 The general population of the communities in which coal mines 
 are located as a rule are suffering greatly in their business affairs. 
 These conditions are suffered by every one dependent upon the in- 
 dustry, while the consumers of Illinois coal as a general rule are 
 buying the coal at the cheapest prices in the world. The average 
 price at the mines for bituminous coal used in Chicago and St. 
 Louis is cheaper than in any other of the great cities of this coun- 
 try. The prices paid for Illinois coal by transportation companies 
 and industries is less than half the price paid for coal for similar 
 uses in Great Britain and on the continent of Europe. I am in- 
 formed by coal operators in other states that similar conditions pre- 
 vail with them. 
 
 Such conditions in a great industry are a public evil, not a 
 public benefit even though they result in lower prices to consumers 
 than would prevail under an intelligent organization of the industry. 
 
 It would be perfectly justifiable morally, to shut down the sur- 
 plus mines during the spring and summer, provided enough mines 
 were kept open to adequately supply the public requirements during 
 that period. But in such a disorganized industry, selfishness pre- 
 vails apparently without thought of or regard for the future. Human 
 nature would act the same in any other industry, under like con- 
 ditions. Immediate self preservation is the natural instinct; not 
 present self sacrifice for the chance of possible future benefit. 
 
ANTI-TRUST LAWS AND COAL INDUSTRY 275 
 
 It is not necessary to ask that competition shall be eliminated 
 or even vitally impaired. But the attitude toward competition need 
 not be that of fetish worship. It is a subject about which the public 
 can safely exercise some sense of justice as between buyer and 
 seller, and should do so in its own best interest. A seller in decid- 
 ing whether to deal with any given buyer should have at least some 
 reasonable equality of alternative advantage or disadvantage. But 
 the producer of coal under the conditions I have described has no 
 equality of choice. Practically he is under duress as compared 
 with the buyer. If a coal mine stands idle, physical deterioration 
 proceeds with great rapidity. In many cases large quantities of 
 water must be pumped out constantly or the mine will be flooded 
 and destroyed, while in others underground fires from spontaneous 
 combustion must be guarded against constantly. A very heavy ad- 
 ditional penalty is thus imposed upon the mine owner -who might 
 otherwise choose to let his mine remain idle instead of producing 
 and selling coal at a direct loss. A merchant or a manufacturer is 
 not put to the choice of selling at a loss or being put to ruinous 
 expense to avoid having his store or factory flooded or burned, nor 
 is the deterioration of an idle building or machinery comparable in 
 any degree with that of an idle mine. 
 
 Buyer and Seller in Different Positions. 
 
 The buyer is in an entirely different position than the seller. 
 Presumably any two buyers, or any number in fact, may legally 
 combine to place their purchases with this or that seller at their 
 pleasure. No doubt it is true that such a combination of buyers, by 
 misrepresentation of facts or other acts of a fraudulent nature, 
 might be held punishable for conspiracy to defraud. But in such 
 case the legal offense would consist solely of the misrepresentation 
 or the fraudulent acts. The mere combination to purchase jointly 
 is not condemned either by common law or statute. 
 
 The theory upon which the condemnation of monopoly is based 
 is that it creates a false relation of inequality between buyer and 
 seller, gives the seller an unfair advantage and enables him to 
 secure from the buyer an unfair price; a price greater than is 
 necessary to yield a fair and reasonable profit, and greater than 
 could be secured if the relations were fair and equal. 
 
 The theory upon which the condemnation of restraint of trade 
 is based is that such restraint is injurious to the public. But, does 
 the public consist solely of buyers and consumers? 
 
 Perhaps it is the idea of consumers and their champions, that 
 producers are merely their workmen and servants. Even -so, are 
 
276 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 not the workmen and servants entitled to protect themselves against 
 unfair advantages claimed by their employers or masters? Public 
 opinion apprcves proper organization with proper methods on the 
 part of laboring men solely for the reason that that right is neces- 
 sary to enable them as sellers of labor, to protect themselves against 
 unfair advantages on the part of organized capital, the buyers of 
 labor. 
 
 Public Will Recognise Obligation. 
 
 It is my,, belief that when the public becomes correctly informed 
 as to the destructive effects of the present idol worship of compe- 
 tition without regard to its fairness or unfairness ; and the waste 
 which might be lessened without injury to the interests of the public 
 in other directions, public opinion will recognize not only the obliga- 
 tion to do. justice, but the self injury in neglecting or refusing to 
 treat this great problem with reference to the interests of all par- 
 ties concerned. Doubtless there are those who will answer that if 
 producers know no better than to waste their capital, efforts and 
 time in mutually destructive competition, nevertheless the public 
 generally profits rather than suffers by their conduct ; and that it 
 is no part of the public duty or interest to conserve the property 
 and interests of people who lack sufficient judgment and self con- 
 trol to do so for themselves. I do not believe that such a position 
 is economically sound, or creditable to the individual who assumes 
 it, with reference to any kind of industry or public service. But 
 in connection with the production of coal it is particularly unsound. 
 Industries engaged in production or manufacturing based upon raw 
 materials which are reproduced periodically stands on a different 
 footing than those engaged in the production of coal. It is true 
 that in the ordinary manufacturing industry, a large excess of pro- 
 ducing capacity causes serious waste and loss, because of capital 
 tied up and made unproductive, and the time lost by laboring men 
 held in the industry and working only part time, and the waste of 
 such labor and other expense as is required to maintain or preserve 
 idle plants. These conditions of waste and loss exist in even a 
 greater degree and are less reparable in coal mining than in 
 ordinary industries ; and there is also the irreparable waste of an 
 exhaustible and irreplaceable natural resource, which is indispen- 
 sable to the continued existence of modern industry and civiliza- 
 tion. It has been the habit of cheerful and offhand optimists to 
 assume that by the time coal is exhausted we shall have discovered 
 means of developing power from the ocean tides, the sun rays and 
 the winds, or by some miraculous manifestation of Providence yet 
 
AXTI-TRUST LAWS AND COAL INDUSTRY 277 
 
 to be revealed. This fallacy has been disposed of by the recent 
 report of a British Parliamentary Commission upon available 
 sources of power to take the place of coal. The report of this 
 Commission shows the vital necessity of the most thorough con- 
 servation, both in the use of coal and in mining it. 
 
 But, it may be asked, how can you prevent the excessive in- 
 vestment of capital in a given industry during or following a period 
 of unusual prosperity in that industry and thereby prevent, the 
 waste consequent upon such overcapacity ; and it must be answered 
 that it cannot be entirely prevented. But it may be greatly modi- 
 fied by a reasonable regulation of production. To illustrate: A 
 period of extreme depression like the present causes the permanent 
 abandonment of old mines and a greater loss of aggregate capacity 
 than is replaced by new mines, of which there are few if any 
 opened. The history of the industry discloses that when prosperity 
 returns demand for coal increases with far greater rapidity than 
 producing capacity can be increased, because it requires from one 
 to two or three years according to location and natural conditions, 
 to open and develop a new mine. The rapidly growing demand 
 soon overtakes the weakened capacity. Consumers bid prices up 
 on themselves and the industry is quickly in a state of abnormal 
 and excited prosperity. Inexperienced and deluded owners or bor- 
 rowers of capital rush into the industry. The judgment and fore- 
 sight of experinced men frequently is overborne by the lure and 
 excitement. In a few years the increasing demand slows down and 
 later even shrinks again. In the meantime the abnormal increase 
 of capacity overtakes and passes demand and the periodical col- 
 lapse and depression again sets in. It is a superficial comment and 
 merely begs the question to say that this occurs in all industries 
 and cannot be avoided without changing human nature. Moreover 
 in the production of coal it occurs with much greater than the 
 average intensity and as I have endeavored to point out, results in 
 greater harm to the public welfare. The real question involved is 
 whether an attempted cure may not aggravate the disorder or work 
 harm to the public in other directions. It will be urged that arti- 
 ficial maintenance of prices against natural reaction from unnatur- 
 ally high levels, will only delay the reaction temporarily and inten- 
 sify it when it occurs. Again this is merely begging the question. 
 The solution which should be sought for should be one which, by 
 checking the unnatural severity of the depression, will to the same 
 extent check the abnormal reaction following recovery. An intelli- 
 gent regulation of attempted production during periods of depres- 
 
278 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 sion and excess of capacity would tend to lessen the actual loss of 
 producing power and by a greater readiness to meet and supply a 
 rapidly increasing demand following recovery from depression, 
 would in turn prevent an excessive increase of capacity. But such 
 a policy cannot be carried out by co-operation among mine owners 
 under present laws as now interpreted by the courts with any 
 reasonable certainty of escaping prosecution, even though reason- 
 ably disinterested persons could see in the results effected no prac- 
 tical harm to the public interests in general, but on the contrary 
 material incidental benefits. President Taft doubtless has taken a 
 sound position in defying radicals and demagogues to give an illus- 
 tration of a case where an actually guilty person or corporation 
 could escape punishment under the federal law as now construed. 
 But so far as I am aware he has omitted to assert with equal con- 
 fidence and positiveness or at all that a person or corporation, per- 
 haps guilty of technical violation of the law, but practically inno- 
 cent of any public harm, could be equally certain of escaping pun- 
 ishment. 
 
 I do not think it can be reasonably expected that either state 
 or Federal law shall be so framed as to state specifically what man- 
 ner of contract, combination or conduct in every case shall con- 
 stitute unlawful restraint of trade. Perhaps no more accurate 
 statutory test can be devised than that the purpose or the necessary 
 results shall be harmful to the public interest or shall give either 
 buyer or seller an undue and unfair advantage. It will be found in 
 applying such test or any other test it is practical to devise that it 
 involves the determination of mixed questions of fact and law. 
 Unless otherwise provided in the statute, such determination would 
 be made in the courts in the usual manner. If the laws were 
 amended to the effect just suggested but no further, there would 
 still be many cases involving perfect good faith on the part of busi- 
 ness men, but in which the parties could have the legality of their 
 plan determined only by submitting to criminal prosecution, or by 
 being put to the necessity of suing some purchaser who might 
 refuse to pay under the forfeiture provisions of the laws, at the risk 
 of confiscation of the entire amount involved. Such methods and 
 conditions in the enforcement of law are not essential to the proper 
 punishment of persons guilty of intentional and harmful restraint 
 of trade and they will not continue to be acceptable to the majority 
 of citizens very long. Indeed it is a fair question whether the 
 majority of the people will not demand a different system at once 
 when the real nature and effect of these things become a little clearer 
 to them. 
 
AXTI-TRUST LAWS AND COAL INDUSTRY 279 
 
 No unanswerable reason has been advanced why a modified 
 form of the commission method as applied to the control of rail- 
 road rates and practices might not be applied to the control of con- 
 tracts and combinations in restraint of or tending to restrain trade. 
 
 I will not attempt to go into details further than to say that 
 this suggestion does not involve the idea that a commission should 
 have power to fix or control prices of commodities. There are 
 certain constitutional questions involved which would require care- 
 ful consideration in framing a trade commission law, but they are 
 not such as to prevent a vast improvement in the justice of the 
 present rules and methods for determining the legality or criminali- 
 ty of plans conceived in good faith. 
 
 Could Submit Contracts to Courts. 
 
 It is true that the laws might be so drafted that the contracts 
 or combinations could be submitted to the courts, before putting 
 them into force. But this would result in differing rulings in the 
 various districts or circuits of- the same state or of the United 
 States, on contracts of exactly the same form and purpose; and 
 would vastly increase the number of appeals to the supreme courts. 
 It is to avoid this confusion and multiplicity of litigation that the 
 Interstate Commerce Commission and the state railroad com- 
 missions are given the sole initiative or original jurisdiction in all 
 cases regarding railroad rates and practices. The same reason exists 
 and probably in a greater degree for submitting trade contracts or 
 combinations to a trade commission for each state or for the 
 United States, rather than to the various district or circuit courts. 
 Contracts or combinations affecting competition of trade should be 
 punishable criminally only in case of their being put into practice 
 before being submited to the trade commission, or being persisted 
 in after condemnation by the commission or the higher courts. 
 Approval by the commission should give prima facie legality, 
 and should protect the parties operating under them, unless and 
 until the ruling of the commission should be reversed by the 
 higher courts. 
 
 Even if public opinion is not yet ready to place all branches 
 of trade and industry upon this basis, its greater self interest in 
 the avoidance of avoidable waste of the coal reserves of the nation 
 should justify the change with reference to the production of coal. 
 
 Under such form of law it should be possible to place the pro- 
 duction of coal upon a higher plane of conservation of the coal 
 itself, of the capital invested and the labor applied in mining, with- 
 but injury in other forms to the interests of the public. 
 
Anti-Trust Laws in Their Relation to the Mining Industry. 
 
 BY WALTER WILLIAMS, 
 BENTON, ILLINOIS. 
 
 In the preparation of the program, I received a communication 
 from the secretary that I would be expected to discuss this general 
 question of the Sherman anti-trust law as it applies to the coal 
 mining industry in Illinois and the country. I understood I was to 
 discuss this question tomorrow night, and it was by mere chance that 
 I came in to the meeting this evening. I am not here with the ex- 
 pectation that I can add more than commendation to the excellent 
 papers" that have just been read. These papers have been written 
 by men who know the ills that beset the industry. That is evident 
 from the exhaustive manner in which they have treated the sub- 
 ject, from the clearness with which they have arrived at conclusions, 
 from the far-sighted suggestions given as to the results that would 
 follow a continuation of the present policy, and from some reme- 
 dies suggested to alleviate our distress. 
 
 The conditions that have brought about our present state in 
 the mining industry are merely the result of the old struggle be- 
 tween the vested rights of property and the rights of men. We are 
 only reaping the whirlwind that has been sown. The tremendous 
 opportunities for industrial development in this country following, 
 as one of the speakers said, the Civil war ; following the discovery 
 of the wonderful natural resources of this country and the desire 
 to develop it, placed in the hands of a few men, a few combinations 
 of men, power such as has never been seen in the civilized world 
 before. It has caused the creation of great corporations, such as 
 the Standard Oil Company and the great railroad systems of this 
 country, and they have abused the privileges that were theirs, as 
 men and corporations without wise restraint are prone to do. They 
 are not to be blamed too harshly. The law permitted it, and the 
 people themselves are to blame because they made the law, or per- 
 mitted it to be made, allowing the condition that confronts us today 
 and which we cry out against. 
 
 This assault upon capital, this assault upon the railroads, this 
 assault upon corporations, is the natural result of the excesses com- 
 mitted by the great combinations in this country. The Sherman 
 anti-trust law was a blind effort on the part of the great masses 
 who felt the repression, who felt the effort of these gigantic cor- 
 
AXTI-TRUST LAWS AXD COAL INDUSTRY 281 
 
 porations to get control of the transportation of the country, the 
 necessaries of life and the sources of supply ; and, realizing that 
 danger threatened and panic stricken by its imminence and unknown 
 possibilities for working harm, the Sherman Anti-Trust law came 
 as the result; it was a blow struck into the dark, a blind effort on 
 their part to break down this approaching evil, and, naturally, such 
 blind effort was not constructive in its nature as one of the speak- 
 ers said, it was repressive. 
 
 The Supreme Court of the United States, in my judgment, could 
 construe the law in no other way. The function of the supreme 
 court is not constructive, but interpretative. This law is on the 
 statute books, and it is theirs to interpret, and for the executives of 
 this country to enforce ; and neither the supreme court nor the 
 President are to blame. They could do nothing under the circum- 
 stances other than just what they have done. Mr. Taft and Mr. 
 Wickersharri are merely following out their plain duty, under the 
 law as it is, when they say that these gigantic corporations must be 
 dissolved. 
 
 Now, what must be done ? They are doing their duty, but it is 
 not going to relieve the repressive situation in this country. It is 
 not going to relieve the fearful condition that the coal business of 
 this country presents. The constructive part must be done by the 
 legislatures of this country, and now that the Sherman anti-trust 
 law has been interpreted, and now that effort is being made to en- 
 force it, the people are becoming aroused to the futility of the 
 enforcement of that law and the tremendous loss that is going to 
 come if it is enforced. Combinations in this country are inevitable. 
 All we need, or rather the thing we need, is not to do away with 
 combinations, but to do away with the unreasonable oppression 
 which combinations give an opportunity to put into effect. Com- 
 binations must be permitted, because only by combination of capital 
 can business be economically handled. No one man, for instance, has 
 the money to build up an institution like the Standard Oil Com- 
 pany, which has reduced a common household necessity from an 
 exorbitant price to a price that brings it within reach of the humblest 
 citizen. We must permit combination. It is the inevitable method 
 of this age. The thing we ought to do is to permit the combinations 
 and place such restrictions upon them that the former opportunity 
 for exploitation, for plundering the public, can not exist. 
 
 The ordinary legislature in any state in this Union, and even 
 the Congress of the United States, as it is organized today, and as 
 its members are elected, can not handle this question as it should 
 
282 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 be handled. It is futile to expect a Congress that is made up of a 
 changing body of men, changing every two years, to investigate the 
 industrial conditions of this country and construct laws that are 
 going to meet the needs of this country. There are twenty-five 
 congressional districts in the state of Illinois, and there is a differ- 
 ent congressman sent from many of those districts every time there 
 is an election, which is every two years. What does the ordinary 
 congressman know about legislation his first term? What does he 
 know about constructive statesmanship? What, if he does know 
 it, can he accomplish in that time? I am inclined to believe that 
 the suggestion of the first speaker will be the logical one. We must 
 resort to some form of commission, a scientific commission, a com- 
 mission that will be appointed or constituted to exist over a term 
 of years, whose members shall go into these questions and study 
 them thoroughly, study them from a scientific standpoint that shall 
 be based upon knowledge as to what is right between all the parties 
 interested. 
 
 Now, you men who are in the coal business are clamoring for 
 an amendment to the anti-trust law that will permit you to com- 
 bine, and there you stop. You must expect to not only be permitted 
 to combine, but to be restrained from plundering the great body of 
 the people by the use of a too strong combination or a too merce- 
 nary one. I am a coal operator myself and I see the necessity for 
 combination; but, gentlemen, we must take with it the inevitable 
 consequence that will follow the having restrictions thrown around 
 us so that we can not at certain seasons of the year, or at any 
 time, exact an exorbitant tribute. 
 
 Why have we not acted? A large measure of blame was put 
 on us as well as the government, by the last speaker, and one reason 
 why we have not acted after we realized the condition, is because 
 we are born gamblers. There is not a man in the coal business to- 
 day, bad as the condition is, but hopes that the recurrence of that 
 high tide of prosperity that occasionally comes to the industry will 
 arrive before he is forced into bankruptcy and out of business. We 
 are satisfied in the summer time to trade a dollar for ninety cents, in 
 the hope that when September and the winter months come we may 
 trade the dollar for $1.75 or $2.00. Our business will have to be 
 put on a basis of reasonableness, which shall give a return on the 
 investment that shall be both just and permanent. With the desire 
 for combination must. come also the recognition that there must be 
 restriction of an unlimited profit. That has come to the railroads. 
 The Interstate Commerce Commission has fixed certain maximum 
 
ANTI-TRUST LAWS AND COAL INDUSTRY 283 
 
 prices that the railroads may charge for the service they render. It 
 would not be a bad thing for the coal industry, and I offer it as a 
 suggestion. Suppose we had a commission that would fix the max- 
 imum price that we might charge for our product, that price being 
 fixed after an intelligent study of the business as it affects all the 
 parties in interest the operator, the workman, and the public, and 
 fix it so that there would be a reasonable and even large profit, be- 
 cause the hazards of the coal business demand that the profits shall 
 be more than come to the ordinary business. Then permit combina- 
 tions whereby the maximum price that the commission fixes shall 
 be the minimum price that the operators will charge to the public. 
 
 The commission idea is the one that is going to make itself felt 
 in every line of endeavor. I am a democrat in politics, but I^am 
 heartily in favor of Mr. Taft's idea (though favoring Taft's ideas 
 about anything may run counter to the political theory of many of 
 those belonging to my party), and I can see a certain Tightness in 
 the attitude that he has assumed with regard to the revision of the 
 tariff. We must get away from the idea that all of these things are 
 to be fixed by politicians who have selfish interests to subserve. 
 These laws must be constructive in their nature, and they can only 
 be constructive in their nature after thorough investigation of the 
 particular subject by a body of men who are both honest and ef- 
 ficient. The legislature of Illinois is as wholly incompetent to deal 
 with this question, as it is at present constituted, as is a new born 
 babe. Its shame is written broadcast all over the country, and how 
 can you expect a body of men, such as they, to deal with a ques- 
 tion that is fundamental in its nature, and that affects a great in- 
 dustry and the interests of enormous capital and a great body of 
 workmen ; over fifty thousand men working in the mines in the 
 state of Illinois and millions of capital invested, and a great popu- 
 lation dependent upon the industry for their fuel, and other great 
 industries dependent upon it for the power to turn their wheels. To 
 submit this question to a body of men so elected this year in, next 
 year out and so likely to be both ignorant of the questions and 
 unmindful of their duty, would be disastrous. It must be sub- 
 mitted to a body of men who can and will investigate it fully, and 
 who will bring in a report that shall provide the basis for construct- 
 ive legislation; a body of men who will have in mind the right of 
 capital to a reasonable profit upon their investment and also the 
 right of labor to a reasonable return for their industry, securing to 
 them not only their daily bread, but an opportunity to lift their eyes 
 from the ground occasionally and get a glimpse of a broader oppor- 
 
284 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 tunity an opportunity for education and some of the cultural 
 things of life. We must face the changing condition of sentiment 
 in this country, and that means fair play, not alone to any body of 
 men who happen to have a large amount of capital, but it means 
 fair play to the great body of the people ; and that means that any 
 legislation enacted must be fair to the operator, to the workman and 
 to the public. We can not continue as we are. We must be allowed 
 to combine. If we are not allowed to combine, the ruinous competi- 
 tion in which we are engaged will wipe those now engaged in the 
 industry out of existence. The industry will not be wiped out, but 
 new capital will come in and reorganize it upon a new basis. Let 
 me say to you, that those who today oppose the enactment of any 
 law permitting greater profit to the business, who oppose any change 
 in the Sherman anti-trust law, are short sighted. Let me tell you 
 they will pay high interest for every dollar's worth of coal that 
 they are buying for ninety cents. For every dollar's worth that 
 they buy for ninety cents, they will pay $2, and why? Simply 
 because the profits that have been lost must be made up. The banks 
 must be repaid the money that has been borrowed. The red ink must 
 be written off the ledger. And not only that the tremendous 
 waste in the industry, as it is today being run, must be paid for in 
 the future. And we have no right, and those who are buying our 
 coal today have no right, to plunder the resources of this country, 
 to waste the heritage of those who shall follow, in a crazy desire 
 to buy a thing for less than it is worth, a thing which is one of the 
 greatest necessities of human life. 
 
 To the work then of constructive legislation that will permit 
 a profit to those in the industry ; that will permit combination ; that 
 will permit the conservation of the product in which we are dealing, 
 and on the other hand that will conserve the rights of those who 
 buy and those who labor. (Applause.) 
 
What the West Needs in Cocl Land Legislation. 
 
 BY DR. GEORGE OTIS SMITH, 
 DIRECTOR OF THE U. S. GEOLOGICAL SURVEY. 
 
 In any discussion of the needed revision of our public land 
 laws, a due share of attention must be given to the statutes relating 
 to the coal lands. While certain classes of lands in the Western 
 States have largely passed into private ownership, the public's hold- 
 ; ng of coal lands is still large enough to deserve most serious con- 
 sideration. West of the One Hundredth Meridian lies the Nation's 
 greatest coal reserve, estimated at more than a million million tons 
 of anthracite, bituminous and sub-bituminous coal, and title to from 
 sixty to eighty-five per cent of this tonnage is in the United States. 
 It is self-evident that this fuel reserve is the key to the present and 
 future industrial development of the Rocky Mountain region. 
 Utilization of the water power resources will be an important factor 
 locally, and for several decades fuel oil may be expected to affect 
 the industrial situation, but so far as we can now forsee coal must 
 be regarded as the principal source of power. Its present impor- 
 tance is shown by the fact that the coal production of the Rocky 
 Mountain States was 14.7 per cent greater in 1910 than in 1909, 
 although for the whole United States the increase in coal output 
 for the same period was less than 9 per cent. Utilization of these 
 Western coal deposits that will meet both present and future de- 
 mands is the end that must be served in whatever public policy is. 
 adopted. The West needs and has a right to demand full oppor- 
 tunity for legitimate, energetic business development, but that does 
 not include the right to inflict an unearned speculative tax on the 
 future consumer. 
 
 Full opportunity on the public coal lands can be denned both 
 from the standpoint of the coal operator and from the point of view 
 of the consuming public. In my opinion, the operator can justly 
 ask two things: .First, the right to occupy an acreage sufficiently 
 large for economic operation during an average mine-life period, 
 and second, freedom from too great investment risks. Economic 
 operation we will understand to mean the installation of such equip- 
 ment as will secure maximum recovery at low cost with proper 
 safe-guarding of 'both life and property, while excessive investment 
 risks refer to capital outlays out of proportion to expected profits 
 of operation. Roth of the factors are in reality of hardly less in- 
 
286 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 terest to the public than to the operator for upon them depend in 
 the last analysis much that determine prices and concerns general 
 welfare. The public should also demand that no right to the public 
 coal land shall be granted except for present use. Actual develop- 
 ment must be made the first condition of occupancy of any part of 
 what now remains in the public domain. 
 
 The present status of coal mining in the West is the resultant 
 of two factors, land ownership and consumptive demand for coal. 
 The large holdings of coal land legitimately acquired through rail- 
 road grants and those secured by coal companies through dummy 
 entrymen, and by purchase of agricultural entries as well as those 
 patented to the states as non-mineral lands, together constitute a 
 coal land supply that has practically met the demand. The strict 
 administration of the public domain during the past few years, 
 however, has shut off all opportunity for wholesale accumulation of 
 coal lands under cover of the homestead and other laws. Up to the 
 present time the acquisition of the coal land in the public domain 
 has been largely accomplished without resource to the coal land 
 law, so that the question becomes opportune is the present coal 
 land law adequate to meet present and future needs ? 
 
 This law relating to coal lands is less unsatisfactory than many 
 of the mineral land laws now on the statute books. By its pro- 
 vision for the valuation of coal lands at an adequate price the law 
 makes possible a selling price that may promote development and 
 at the same time prevent monopolization. As is pointed out in a 
 public statement by Secretary Fisher, the present governmental 
 policy of basing the valuation of public coal lands upon the tonnage 
 and quality of coal which underlies the tract results in prices that 
 are neither unreasonable noT exorbitant ; the purchaser instead of 
 paying a flat rate per acre in reality pays for the coal by the ton 
 at values graded according to the quality and the character of the 
 coal. Consideration is also given to every known physical and 
 commercial factor affecting the value of the coal of the particular 
 locality. The purpose has been to protect the present interests of 
 the West by making the selling price of coal land approach but in 
 no case exceed the present purchase value of a royalty under a 
 leasehold, such as the states of Colorado and Wyoming or land 
 companies in the West grant to the lessee, and at the same time 
 to protect the future interests of the people by having these prices 
 such as to discourage long-time speculative holdings. We must 
 always keep in mind the fact that large speculative holdings are sure 
 to affect the future price of coal in two ways through the possi- 
 
NEEDS OF WEST IN COAL LAND LEGISLATION 287 
 
 bility of monopoly and through the certainty of accumulated in- 
 terest charges on the cost of the idle land. 
 
 The test of any policy is in the results it produces. That the 
 prices put upon the public coal lands are not prohibitive can be 
 shown by the record of sales. In the four years following the 
 adoption of the policy of classifying and valuing the coal lands, 
 the sales have increased 12^2 per cent in acreage and 36 per cent 
 in value as compared with the four years preceding, and this in 
 spite of the fact that the four years since July ist, 1907, have 
 included a period o " industrial depression and slow recovery as con- 
 trasted with the preceding period of boom conditions. So far, 
 therefore, as its provision for pricing is concerned, the present law 
 appears to be as satisfactory as a sale law can be. 
 
 One serious defect exists in the present law which all must 
 admit demands an immediate remedy. The restriction of legal pur- 
 chases to a maximum of one hundred and sixty acres for an in- 
 dividual or six hundred and forty acres for an association is 
 absurdly out of accord with good mining practice. The fixed 
 charges of a modern coal mine equipped so as to safeguard life and 
 property and to secure maximum recovery are too high to be 
 assessed against the tonnage of so limited a tract, especially where 
 the coal seam is of moderate thickness. Furthermore, unless pro- 
 vision is made for commercial operation on the remaining lands 
 too great an advantage is secured to the land grant railroads and 
 the large coal companies already in possession of considerable areas 
 of high-grade coal. There is no public need of having either in- 
 dividuals or large corporations acquire large acreages of these lands 
 for long time holding without development. Nor is there any 
 sound economic reason for the disposition of the coal lands in small 
 tracts. The homestead law expresses the spirit of American in- 
 stitutions in that it has encouraged every citizen to own a home but 
 there is neither sentiment nor sense in a proposition to sell at a 
 low price one hundred and sixty acres of coal land to an individual 
 every citizen does not need to own a coal mine. 
 
 In the endeavor to discourage long time speculative investment 
 in the coal lands and at the same time permit present development, 
 the fixing of selling prices has involved difficulties. It has been 
 recognized that an ideal adjustment of values is well nigh unat- 
 tainable for many if not for most coal lands. These difficulties 
 suggest the wisdom of considering the other method of disposition, 
 namely a leasing system. As Secretary Fisher has stated, "It may 
 well be that a liberal but wisely protected leasing law would be 
 
288 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 found to promote (development more vigorously than any system of 
 outright purchase." Thus, under a leasehold law any uncertain- 
 ties as to quantity of coal or as to costs of operation would not 
 need to be so critically estimated in advance. There would be no 
 necessity of discounting every possible future condition, but 
 periodic adjustment of rate of royalty could insure all equities of 
 both operator and public, and I should expect that such adjustments 
 might as often be downward as upward. 
 
 Under a leasing system, too, it would be comparatively easy 
 so to adjust the relationship between ground r ital and royalty, as 
 to prevent the acquisition of coal deposits until actual operation 
 became profitable. The greatest advantage of the lease system to 
 the operator directly, and to the public indirectly, is relief from the 
 large capital outlay now required in the acquisition of the large 
 acreage absolutely necessary for a modern mine. This argument 
 advanced against the present policy of valuing the public coal lands 
 at even conservative prices thus becomes an argument for a lease- 
 hold law. 
 
 The objections to a leasing system are of two classes ; those 
 based upon political theory and those based upon economic con- 
 siderations. Under political objections, I will place the arguments 
 so often put forward against Federal landlordism, namely that the 
 Eastern coal lands were disposed of in fee and that the West de- 
 serves the same treatment; and, further, that the natural resources 
 of the West should not be made a source of profit to relieve the 
 Eastern taxpayer. Such arguments can be easily answered. Past 
 mistakes are poor precedents for future blunders. The citizen who 
 argues for the continuance of the liberal, wide-open public land 
 policy of the past is apt to be one who wishes a middleman's profit 
 on a small investment, and we know that East or West, the owner 
 of coal lands acquired as agricultural lands, or in any ether way, 
 at a low price, makes his large and unearned profit out of the coal 
 operator, and through him, out of the public. Too large a percentage 
 of the coal output of this country is now mined under lease, to 
 justify this objection to allowing the people themselves to lease 
 direct. As regards the argument of reserving Western resources 
 for the W 7 est, too few people in the public land states realize that 
 under the present system of sale, the proceeds from the coal lands 
 go directly into W'estern development through the Reclamation 
 Fund, and cannot be used to relieve the Eastern taxpayers except 
 as the whole country benefits by the agricultural developmert of 
 these public land states. It is reasonable to expect that any leasing 
 
NEEDS OF WEST IN COAL LAND LEGISLATION 289 
 
 law would make similar provision for the local use of revenues 
 resulting from leases and indeed several of the bills already intro- 
 duced in Congress have specifically recognized the wisdom of such 
 disposition. 
 
 Much more worthy of consideration are the objections to the 
 lease system based upon the fear that the cost of coal to the con- 
 sumer would be increased. I regard this result as altogether im- 
 probable. The royalty paid into the United States treasury can be 
 no greater a tax upon the consumer than the royalty paid to the 
 State of Colorado, or to the railroad land company, or to the farmer. 
 The average price of bituminous coal at the mine, in the United 
 States, last year was $1.12, which usually includes either a royalty 
 or an equivalent interest charge, either of which would probably be 
 greater than any Government royalty. This amount forms so small 
 a part of the price to the consumer that the royalty under a Fed- 
 eral lease could be of but little concern to the public, if, indeed, it 
 resulted in any increase in the first cost of the coal. 
 
 However, if we consider the lease as contrasted with sale out- 
 right to the coal operator, the reduction in capital necessary for 
 original investment and the elimination of many of the risks in 
 such investment must result in reducing cost of operation to the 
 mine owner, and thus make possible a correspondingly lower price 
 of coal to the consumer. 
 
 The other objection to the lease system is that based upon fears 
 of expensive Federal management, and of inefficient administration 
 or even mal-administration. These are possibilities which we must 
 squarely face ; but my faith in the efficiency of public administration 
 is increasing to such a degree that this argument against the leas- 
 ing is rapidly losing its force with me. If we look beyond our own 
 Rockies, and out across the Pacific, we discover that a Govern- 
 mental leasing system for coal lands is not a theory but an actual 
 working fact. The Anglo-Saxon peoples of the Australasian States 
 have found the leasing system not only practicable, but indeed 
 preferable to the sale of coal lands. In New Zealand, where for 
 thirty years the laws have permitted to the operator a choice of 
 either sale or lease of public mineral lands, a conclusive argument 
 for the leasing system is given in the latest statistics of mineral 
 production, which show that approximately 90 per cent of the total 
 mineral product of that country was mined under leasehold. If our 
 trans-Pacific neighbors can administer a lease law so satisfactorily 
 and if the mine operators in New Zealand prefer operation under 
 
290 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 leasehold, will a similar system be fraught with either danger or 
 failure in the United States? 
 
 We must face the fact that Uncle Sam is a landlord on a large 
 sca l e a coa l baron, if you please; and that the question before us 
 is how these millions of acres of coal land are to be disposed of so 
 as to serve the just needs of the operator who offers his capital, 
 technical skill, and business experience, asking in return a fair 
 profit, and at the same time to protect the public interests. 
 
 All that the West needs is first, opportunity for the coal in- 
 dustry to develop as fast as the market justifies expansion, and 
 with the least possible risks ; and second, opportunity for the public 
 to secure its coal at prices based on a minimum cost of production 
 and without any addition of unearned and undue tribute^ to private 
 landlords who desire to speculate on the future needs of the con- 
 sumer. These ends, I believe, can be best attained by legislation 
 inaugurating a Federal leasing system for coal lands of the public 
 domain. 
 
The Future of Alaska Coal. 1 
 
 BY ALFRED H. BROOKS, 
 . 'HI10F OF THE ALASKAN DIVISION OF THE U. S. GEOLOGICAL SURVEY. 
 
 I fully appreciate the honor of being invited to address the 
 American Mining Congress on a matter of such importance as the 
 future of Alaska coal. An adequate treatment of this subject would 
 require not only a far more exhaustive study of the coal resources 
 of the territory than has yet been made, but also of the industrial 
 conditions of the Pacific margin of the North American, continent, 
 where a market for this coal must be found. Furthermore, it 
 necessitates a look into the future a consideration of probable in- 
 crease of population, of commerce, and of industry. This problem 
 also involves a careful consideration of other possible sources of 
 fuel or power which now or in the future may come into compe- 
 tition with Alaska coal. 
 
 The brief time devoted to the preparation of this address, if 
 there were no other reason, has prevented the exhaustive study of 
 the elements entering into the problem. On the present occasion 
 I can do little more than to summarize the data which have been 
 published elsewhere. 2 
 
 What is the future of Alaska coal ? The answer is simple 
 enough it will be burned. Like all simple replies, it does not 
 'strike at the root of the problem. The fundamental question is: 
 Where and when will it be burned? To answer this larger ques- 
 tion demands a consideration of the distribution, quality and avail- 
 ability of the coal and its present and future market. 
 
 The Coal Fields. 
 
 \ measure of the relative importance of the Alaska coal fields 
 may be obtained by comparing the quantity of fuel they contain 
 with that of better known areas. Unfortunately, the data on 
 Alaska coal tonnage is very incomplete, as only one-tenth of the 
 areas mapped as underlain by coal-bearing formations has been 
 surveyed in sufficient detail to admit of tonnage estimates. The 
 estimates, made in 1909, show a total coal tonnage, including 
 
 'Published by permission of the Director of the U. S.. Geological Survey. 
 
 2 Much of this address is abstracted from or based upon two papers already 
 published; namely: 
 
 "Alaska coal and its utilization:" Bull. U. S. Geol. Survey No. 442, 1910. 
 
 "Geography in the development of the Alaska coal deposits:" Prpc. Assn, 
 American Geographers for year 1911, Vol. I, 1911. 
 
292 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 lignites as well as high-grade fuels, of 15,000,000 tons. 1 As only 
 one-tenth of the known coal fields has been surveyed and as at 
 least one-fifth of the territory is geologically unknown, it is prob- 
 ably safe to conclude that the total tonnage is ten times this esti- 
 mate. 2 This estimate of 150,000,000 tons is intended to show 
 simply what the ultimate coal tonnage may be and has no bearing 
 on the present coal situation, for much the larger part of this coal 
 is not available now and will not be for many generations to come. 
 This total estimated amount of Alaska coal is about 4}/2 per cent 
 of the total estimated tonnage of the -United States and its pos- 
 sessions and a little less than 15 per cent of the coal in the lands 
 still in government ownership. It is about a third more. than -the 
 original coal supply of the state of Pennsylvania. The coals of 
 Pennsylvania are, however, of a high grade, while much the larger 
 part of Alaska coal is lignitic. 
 
 In view of the fact that Alaska is almost continental in its 
 dimensions, and that the coal fields are very widely distributed 
 within the territory, these comparisons are in some respects mis- 
 leading. It becomes necessary to qualify any statement in regard 
 to total quantity by considering what fields are so situated as to 
 be available for present use as well as what part of them include 
 coals of sufficiently high grade to warrant export. For this pur- 
 pose the Alaskan coal fields can be conveniently divided into three 
 economic provinces, based on geography. The first is the Pacific 
 slope, which comprises the mountainous area drained to the Pacific 
 ocean. Here there are large quantities of lignitic, with some sub- 
 bituminous coals, which are on or close to tidewater. Also fields 
 of high-grade coals which can be reached from open ports on the 
 Pacific by railways from 25 to 200 miles in length. From the 
 coastal terminals of these railways to Puget Sound ports the dis- 
 tance is about 1,260 to 1,400 statute miles, and about 2,000 miles 
 to San Francisco. This province is readily accessible and its re- 
 sources can therefore be considered an asset of the present genera- 
 tion. It contains about 40 per cent of the known coal resources of 
 Alaska, besides valuable deposits of metals and considerable areas 
 of arable land, all of which can be opened up by railways. Some 
 of -these coals, as has been shown, are of a high grade and located 
 favorably for export. 
 
 The central region includes the area lying north of the coastal 
 
 a Brooks, Alfred H., Alaska coal and its utilization: Bull. U. S. Geol. Survey 
 No. 442, pp. 53-55, 1910. 
 
 2 Since this estimate was made the survey of one field showed an additional 
 amount of lignitic coal amounting to 9,000,000 tons. 
 
THE FUTURE OF ALASKA COAL 293 
 
 mountain barrier and is drained to Bering sea by the Yukon and 
 Kuskokwim rivers. It includes about 35 per cent of the known 
 coal besides important gold deposits and considerable arable land. 
 To reach this region by railway from open ports on the Pacific 
 will require 400 to 600 miles of railway. The coals are of a lignitic 
 character and under no conditions which can now be foreseen could- 
 they be mined for export. The coals of these fields, therefore, 
 have value only for local use a value which is enhanced by the 
 presence of other mineral resources, by arable lands, and by the 
 relative scarcity of other fuel. 
 
 The third province comprises northern Alaska, draining into 
 the Arctic ocean. This includes about 25 per cent of the known 
 coal, with considerable of a high grade. This part of Alaska is 
 almost entirely isolated, as it is too far from open ports on the 
 Pacific to permit of railway connection, and its rivers are locked in 
 ice for all but two months in the year. Most of this field is un- 
 explored, and the stated estimate of tonnage is probably far below 
 the actual tonnage. There is good reason to believe that its coal 
 supply may exceed all that of the rest of Alaska, but whatever it 
 may be, the coal has no value unless as an asset to future genera- 
 tions. 
 
 It appears, therefore, (i) that the Pacific slope coal is the 
 most valuable of the Alaska coal supply to the present generation, 
 for it can be exported; (2) that the coal of the central province 
 has value only as local population and industries develop, and 
 (3) that the coal of the Arctic slope will not be drawn upon until 
 that future time when the more accessible coals of -the world ap- 
 proach exhaustion. 
 
 A discussion of the development of Alaska coal fields will, 
 therefore, be concerned chiefly with those of the Pacific slope. 
 These coals are the only ones in the territory available for the 
 growing population of the western side of the North American 
 continent and are, therefore, of national as well as local importance. 
 The estimates indicate that the Pacific coast province includes 
 about 6,000,000 tons, of which nearly one-half is lignite. It is 
 probably safe to multiply the estimates of lignite by ten. Less 
 definite evidence is available regarding possible additional tonnage 
 of bituminous and better-grade coals. It is known, however, that 
 coal occurs in regions adjacent to both the Bering River and 
 Matanuska fields, and it is reasonably certain that these fields 
 will be found to be much larger than at present supposed. 
 
 Much of the coal of the Pacific slope fields can be made avail- 
 
294 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 able by the construction of comparatively short railways. They 
 include considerable high-grade steaming and coking coal, as well 
 as a much larger quantity of lignite*. Of the geologic occurrence, it 
 need only be said that the lignites occur in rocks which are little 
 disturbed, while the high-grade coals are highly folded and faulted, 
 but not so much so but what some of the beds at least admit of 
 profitable exploitation. 
 
 Quality of Coal. 
 
 As is now generally known, the chemical quality of the coal 
 of the Bering river and Matanuska fields leaves little to be de- 
 sired. These fields include high-grade steaming and -coking coals 
 comparable to the best coals of the east, and also some anthracite. 
 The physical character of many of the coal beds is much less favor- 
 able, for they have been crushed to such an extent that they will 
 furnish a large percentage of slack, which does not detract from 
 the value of the coking coal. In both the Bering river and 
 Matanuska fields, as shown by the studies of Dr. Martin, 1 the coal 
 beds have been much deformed, thus greatly enhancing the cost of 
 mining and in case of some of the beds prohibiting altogether the 
 economic recovery of the coal. This, as Dr. Martin's survey has 
 shown, is notably true of the western margin of the Bering river 
 field, where there is much faulting, and of the northeastern and 
 anthracitic part of the field, where close folding and faulting have 
 in many instances so crushed the beds as to probably make them 
 worthless for mining. 
 
 The character of the Matanuska coals is less well known, 
 as but few openings have been made on the beds. Locally these 
 appear to be somewhat less disturbed than the coals of Bering 
 river field, but this may be offset in cost of mining by the fact that 
 a large number of intrusives are present. While there are differ- 
 ences of opinion as to the percentage of coal from these two fields 
 that can be commercially mined under present conditions, the fact 
 remains that they include much workable coal of a higher grade 
 than any in that part of the North American continent tributary to 
 the Pacific ocean. 
 
 Transportation. 
 
 Transportation is not so serious an element in the develop- 
 ment of the lignitic coals as in the high-grade coals, for the former 
 
 1 Martin, George C., Geology and mineral resources of the Controller Bay 
 region: Bull. U. S. Geol. Survey No. 335, 1906. 
 
 Martin, George C., Preliminary report on a detailed survey of part of the 
 Matanuska coal fields: Bull. U. S. Geol. Survey No 480, 1911. The complete 
 report on this field is in print. 
 
THE FUTURE OF ALASKA COAL 295 
 
 will probably only be mined for local use. In some instances this 
 is not true. For example, a railway some 50 to 60 miles in length 
 will have to be constructed to the Nenana field of the Tanana valley 
 if the coals there are to be carried to market. 1 None of the high- 
 grade coals can, however, be made available without the investment 
 of many millions of dollars in railways and terminal facilities. 
 
 The Bering river field lies about 25 miles from the nearest 
 tidewater at Controller bay and 54 or 90 miles, depending on the 
 route chosen, from tidewater at Cordova on Orca bay. The 54- 
 mile route involves the crossing of a pass about 350 feet in height, 
 while the 9O-mile route is practically on a water grade. Thirty 
 miles of the Copper River railway, already constructed, is avail- 
 able for either of these routes. A railway from the coal field to 
 Controller bay would have a water grade. Controller bay now 
 but an indifferent harbor can be made available as a shipping port 
 by a sufficient expenditure of money. Orca bay, on the other hand. 
 is a good harbor, but involves a much longer haul. The Matan- 
 uska field is 60 miles from a summer port on Knik Arm, and 
 180 miles from Seward on Resurrection bay an excellent harbor 
 open to navigation throughout the year. Seventy-one miles of this 
 railway (the Alaska Northern) is completed and crosses two 
 passes, 700 and 1,000 feet in height. 
 
 It will be shown that the- heavy investment for railways 
 necessary to open these fields hardly seems justified with the present 
 visible market for Alaska coal. A part of the mileage from Cor- 
 dova to the Bering river field will be utilized for the traffic from 
 the Copper river region to the coast. The railway from Seward 
 to the Matanuska field will pass through or close to promising 
 auriferous districts, and if extended, as planned, to the Tanana 
 valley, would serve as a trunk line connecting tidewater with the 
 Yukon basin. 
 
 Competing Fuels. 
 
 The market for Alaska coal will evidently depend in large 
 measure on the mineral fuels or other sources of power with which 
 it comes in competition. Here again the low-grade bituminous coals 
 and lignites need not be considered, for they will only be utilized 
 under non-competitive conditions. On the other hand, the high- 
 grade coals must meet competition in open market. 
 
 There are many undeveloped water powers in the Pacific states 
 
 'It has been suggested that the energy of these coals be utilized for the 
 Fairbanks and other gold-bearing districts by transmitting it in the form of 
 electricity. 
 
296 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 and Alaska, and these could be made to furnish energy which might 
 compete with any obtained from Alaska coal. Eventually, how- 
 ever, recourse will be had to the mineral fuels, as the water powers 
 are not sufficient to meet the demands of future industries. There- 
 fore the competing mineral fuels are probably the most important 
 element in the problem of markets for the Alaska coal.' 
 
 The western slope of the North American continent is, on the 
 whole, but poorly supplied with coal, and most of it is not of a 
 high grade. Some fairly good bituminous coals occur in Washing- 
 ton, but not in large quantities. The other Pacific states are even 
 less well provided with coal. In British Columbia the situation is 
 far better, and for many years the west coast industries have drawn 
 heavily on the coal fields of Vancouver Island. The recent dis- 
 covery of high-grade coal, said to be in large quantity in the head- 
 water region of the Skeena river, may afford another source of 
 fuel for the Pacific province. This field is said to lie about 130 
 miles from the coast. 
 
 Turning now to the coal supply of other lands bordering the 
 Pacific. The South American countries have insufficient coal for 
 their own use and are -drawing heavily on England. Australia is 
 well supplied with coal, though most of it is not of high grade. 
 Her mines are furnishing coal to South America and even to Cali- 
 fornia. China's coal fields, though of enormous extent, are for 
 the most part unavailable because of the lack of railways. When 
 her teeming population turns to industries requiring fuel, the coal 
 is likely to be needed at home. It is a significant fact, however, 
 that a shipment of Chinese coal has recently been received at San 
 Francisco. Japan, though an exporter of coal, which is not, how- 
 ever, of high grade, has none to spare, as her reserves are small. 
 
 It is evident, therefore, that the lands which, from the stand- 
 point of commerce, are tied together by the Pacific, do not promise 
 to become serious competitors with the Alaska coal. The opening 
 of the Panama canal will change the situation. Then the eastern 
 coals by water transportation only about 6,000 statute miles to 
 California, with an assured return cargo can probably compete 
 with the Alaska coal. This great engineering feat will change 
 the boundaries of economic and geographic provinces. In con- 
 sidering the broad problem, however, it would appear unwise to 
 ship coals from near the centers of population to the west coast, 
 especially at the expense of fuel used in transportation, and any 
 such movement can hardly persist under the operation of economic 
 laws. 
 
THE FUTURE OF ALASKA COAL 297 
 
 Had the Alaska coals been developed ten years ago, when 
 they first attracted notice, they would have found a ready market, 
 for at that time there was a shortage of fuel along the Pacific 
 seaboard. Since that time, however, the industrial situation has 
 been entirely changed by the enormous increase in the output of 
 the California oil fields. In 1901 the California oil production 
 was 8,786,330 barrels, while in 1910 it was 73,010,560 barrels. 
 Mr. Parker 1 estimates that, of this quantity, some 40,000,000 to 
 50,000,000 barrels was used as fuel oil, representing an equivalent 
 in heating value of about 11,000,000 to 12,000,000 tons of coal. 
 The total coal consumption in the Pacific coast states and terri- 
 tories is estimated to have been 4,312,641 tons in 1901 and 4,812,398 
 in 1911. Therefore, in spite of the enormous growth of popula- 
 tion and industries during this decade, because of the increased 
 use of fuel oil the increase in coal consumption has been only 13 
 per cent. 
 
 Practically all the west coast railways are today either using 
 oil or preparing to do so. In Alaska oil is rapidly being substituted 
 for coal on the railways, steamers, and in the mining plants. With 
 the putting on the market of a constantly increasing quantity of 
 fuel oil, the outlook for the coal-mining industry is not very 
 hopeful. It is therefore fuel oil and not coal in which Alaska 
 coal will find its strongest competitor. 
 
 Present Market. 
 
 On the basis of the mineral fuel consumption of 1908-' I esti- 
 mated that the Alaska high-grade coal should find a market for 
 500,000 to 1,000,000 tons of coal. Since then the oil production 
 has increased at such bounds that it seems probable that 500,000 
 would now be a safer estimate. The present annual consumption 
 in Alaska is only about 100,000 tons, of which about one-fifth is 
 in regions where the local coal might not be able to compete with 
 that from outside sources. Unfortunately, as already shown, with 
 the increased use of oil, even this market is rapidly dwindling. 
 The visible market includes the coal needed by the navy, now 
 about 150,000 tons annually, which will probably increase when 
 the Panama canal is completed, the coal used for coke and for 
 blacksmithing, and a small consumption of anthracite. The con- 
 sumption of coke along the Pacific seaboard is 100,000 to 200,000 
 tons annually. It is therefore probably safe to count on a market 
 for 500,000 tons of Alaska's ^high-grade coal, with the probability 
 
 iparker, E. \V., The Production of coal in 1910: Adv. chapter from Min. Res. 
 of United States, calendar year, 1910, p. 88. 
 
 ^Alaska coal ami its utilization: Bull. U. S. Geol. Survey No. 418, 1910. 
 
298 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 that when this is produced local industries will be developed so 
 as to increase the demand. 
 
 The question naturally arises why, if the actual demand for 
 Alaska coal is so small, there should be such a clamor among the 
 residents of the territory for the opening of the fields. In reply to 
 this it should be noted that up to the present time only the larger 
 consumers of fuel in Alaska .have or are preparing to use Cali- 
 fornia oils. These include the two longest railroads, the largest 
 mines, and many of the steamers. The small consumer is still 
 using a far inferior grade of coal to that found at his own door 
 at a cost of $8 to $20 a ton. This high cost of fuel has seriously 
 retarded many small mining enterprises. 
 
 A more important reason, in the opinion of the average 
 Alaskan, for the opening of the coal field is that he believes such 
 action will result in the completion of railroads begun or pro j acted. 
 He believes that the coal fields will furnish a part of the tonnage 
 which will justify railway construction. However this may be, 
 Alaska's greatest need today is railways. Without these, only 
 the richest gold deposits can be mined, and there is little to attract 
 a permanent population. 
 
 Future. 
 
 I have spoken only of the immediate future of the Alaska coal. 
 It is certain that, unless we look a long distance ahead, the proba- 
 bility of an extensive mining industry is not very great. However, 
 with the rapidly increasing population along the Pacific seaboard, 
 the demand for high-grade coals is certain to increase. We can 
 look forward with confidence to the establishment of an iron smelt- 
 ing industry on the west coast of the continent which will supply 
 the local needs. This will make a demand for coking coal, and 
 Alaska is the only source of supply. We also know that eventually 
 California's oil production must decrease, and when that time 
 comes Alaska coal will be needed to supply the demand for mineral 
 fuel along the Pacific seaboard. 
 
 Centers of commerce and industry have been moving west- 
 ward almost since the beginning of the Christian era. As the At- 
 lantic superseded the Pacific as the great highway of nations, so 
 now the Pacific, in turn, bids fair before long to rival the Atlantic. 
 Concomitant with this will be the establishment of industries along 
 the coast line. Therefore, while we may not expect a rapid develop- 
 ment of a coal-mining industry in Alaska, yet of its future im- 
 portance there can be no question. 
 
The Alaskan Question. 
 
 BY GEORGE E. BALDWIN, 
 VALDEZ, ALASKA. 
 
 I wish at the beginning of my remarks to extend to the Ameri- 
 can Mining Congress, in behalf of the people of Alaska, our pro- 
 found and sincere thanks. 
 
 It seems that of late years scarcely any sort of a national 
 meeting could be held, no matter for what purpose convened, or by 
 whom constituted, without passing some sort of resolutions for our 
 benefit, and considering the Niagara of misinformation and the 
 deluge of lies about Alaska with which the country has been flooded 
 by the muckraking writers for a certain class of publications, it is 
 not surprising that certain ignorant, but well-meaning people, should 
 make mistakes. 
 
 As the residents of Alaska depend almost entirely for a live- 
 lihood upon mining and its subsidiary industries, it is a reasonable 
 presumption that the members of the American Mining Congress 
 should best appreciate the difficulties .under which we labor, and 
 be most competent to suggest remedies. The resolutions concern- 
 ing our territory passed at your last meeting reminded us that one 
 great organization at least was our friend. 
 
 What are the needs of Alaska? Considering the fact that a 
 country of great natural and undeveloped resources has remained 
 stationary in population for ten years, if not actually decreasing, 
 its trade and commerce the same, the question is certainly one to 
 demand thoughtful study. 
 
 The Secretary of the Interior recently visited Alaska and was 
 presented with a memorial by the citizens of Valdez in part as 
 follows : 
 
 Primarily Alaska demands and needs the same right of untram- 
 meled development that has been accorded to every other territory 
 of the United States pioneered by Americans. Alaskans ask that 
 American citizens and all other industrious men be permitted to. create 
 property for themselves out of the limitless resources of this vast 
 territory unhampered by bureaucratic dictation and interference. The. 
 people of Alaska are a unit in opposition to federal landlordism over 
 its mines, forests and water power. 
 
 The doctrine that the Federal government five thousand miles 
 away knows better what is good for Alaska than the pioneers who have 
 spent years within its boundaries is a political heresy that cannot long 
 stand before the enlightened sense of justice which characterizes the 
 American people. If left to herself Alaska would enact laws for her 
 government and development with the same intelligence and regard for 
 
300 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 natural right that was shown by the early immigrants into the Pacific 
 and mountain states, of whom Justice Field said in a judicial opinion: 
 
 "Wherever they went they carried with them that love of order 
 and system and of fair dealing which are the prominent characteristics 
 of our people." 
 
 And the senator who introduced the first mining law into Con- 
 gress in 1866, which was merely a federal recognition of miner's law, 
 said that the miner had given the honest toil of his life to discover 
 wealth, which when found was protected by no higher law than that 
 enacted by himself, under the implied sanction of a just and generous 
 government. 
 
 This just and generous government has been succeeded by one 
 that seeks to create a distant landlordism over Alaska. This policy, if 
 continued, will forever stunt the development of the territory. Men 
 born under republican institutions will not long remain where they 
 have to get permission of a government agent to transact business. 
 The garroting of Alaska by the last two national administrations has 
 stopped its growth, decreased its population and financially ruined 
 many men who had not anticipated that the great national government 
 would make Alaska the dumping ground of eastern political fads. 
 
 And upon that subject I wish to add that in my opinion a form 
 of local self-government at least as liberal as has ever been accorded 
 the pioneers of any territory is absolutely necessary to our proper 
 and orderly development. We will be satisfied with no make-shift, 
 no half way measure ; it is our right as Americans, and it is rights 
 we demand, and not permits and privileges that we sue for. So 
 much for the political side of Alaska's needs. 
 
 Alaska Has Paid Debt to Nation. 
 
 It has been urged by certain people utterly unacquainted with 
 the risks and hardships of pioneering, and who have never wan- 
 dered far from their own firesides, that Alaska was bought and paid 
 for out of the taxes paid by the American people and they are 
 entitled to get something out of it. Our answer is that they have 
 gotten something out of it and are getting something out of it. The 
 nearly two hundred million of Alaska gold which has been poured 
 into the channels of trade of this nation, stimulating industry in 
 all its branches, has more than paid any debt Alaska owes the 
 Nation. During the panic of 1907 our bankers were begging the 
 money power of Europe for a loan of twenty million in gold. 
 
 Alaska that year produced nearly that amount of the yellow 
 metal, "all of which went to the United States, not loaned, but to 
 purchase commodities from almost every state in the Union, for up 
 there we must import almost everything, except the air we breathe 
 and the water we drink and I suppose if the ultra-conservation- 
 ists had their way \ye would pay a direct royalty on these. 
 
 Any attempt to impose upon the people and resources of 
 Alaska any burden not borne by the people and resources of the 
 
THE ALASKAN QUESTION 301 
 
 balance of the country will fail; first, because it is unjust; second, 
 because it is economically wrong. 
 
 It seems to me in my boyhood days I read a story of fools who 
 killed a goose that was laying golden eggs. 
 
 The mining laws of the United States, as they stand today, have 
 stood the test of nearly forty years. These laws have been inter- 
 preted by the courts at an expense to the miners of millions of 
 dollars. All important points have been settled and to enact a new 
 set of laws at this late date, with all this to be gone over at the 
 expense of the mining industry of Alaska, which is practically all 
 on the public lands, would impose on that industry a burden it 
 could not well bear. 
 
 Again, we demand with reason, we think, the same laws as 
 apply to the remainder of our country. One might think to hear 
 some people talk that the present residents of Alaska had 
 established a close corporation and were trying to keep out the 
 remainder of the people from participating in the possible profits 
 of its development, while as a matter of fact we are crying for 
 miners, investors, prospectors and industrious thrifty men generally, 
 to come ancT take up their residence with us. 
 
 The town I live in is located in a forest reserve. Last summer 
 I was doing a little building and purchased lumber from Puget 
 Sound, fourteen hundred miles away, which, quality considered, 
 was cheaper than could be produced by the local mills after they 
 had paid the royalties and complied with the regulations of the 
 forest service. If our gold mines are to be put on a leasing basis 
 and managed the same as our forests I have no doubt we shall be 
 able to extract gold from sea water cheaper than from the rocks 
 and gravels of Alaska. 
 
 The problem of conservation has become so confused with the 
 problems of Alaska that a few words upon this subject may not be 
 amiss. A short magazine article published recently upon political 
 subjects contained the word "conservation" no less than twenty-six 
 times. 
 
 Now what is conservation? 
 
 How Some Alaskans Regard Conservation. 
 
 From our standpoint conservation to date is an attempt to 
 gather all the public lands of our territory as an estate, its forests, 
 its mines, its water power, its wharf sites, to be managed by a vast 
 horde, a devastating host of government underlings and worked by 
 our citizens as- tenants, licensees and lessees ; these underlings to be 
 ru^ed by a retinue of officials stationed at Washington, thousands 
 
302 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 of mile.- away. All of ^hese locusts of officialdom to consider them- 
 selves the people's masters and not their servantsi Why this reti- 
 nue stationed at Washington ? So they can be in closer touch with 
 questions to be decided? No, so they can be promptly on the 
 ground to lobby for more appropriations to hire more officials ro 
 lobby for more appropriations, ad infinitum. And they will need 
 these appropriations, for such a system has never in past history 
 paid its wp.y and never will. 
 
 For generations we have been decrying the heartless greed of 
 Irish landlords, yet here is a system of landlordism that out-Irishes 
 the most Irish landlord that ever disgraced the human race by his 
 rapacity. A landlord who refuses to develop his property, refuses 
 to let anyone else develop it except under the most onerous condi- 
 tions and refuses to pay one cent of taxes to be expended by local 
 officials for local needs. The manifest injustice of all this needs 
 no comment. 
 
 The idea that an owner will not more efficiently conserve re- 
 sources than a government official is too silly to merit discussion. 
 
 I, in common with all other Alaskans, have nothing but words 
 of commendation for that great body of scientific men who have 
 represented the various branches of the Government service in 
 Alaska. 
 
 There is another way to look ^t conservation: 
 
 It is a foolish attempt on the part of this generation to do the 
 thinking for generations yet to be. What can be more ridiculous? 
 You have probably heard the story told by Congressman Humphrey 
 of Washington of the old woman who went into hysterics after she 
 had concluded that some epidemic was going to kill all the geese in 
 the world, that the people would forget how to write because there 
 would be no quills to make pens with. It is to be presumed that had 
 conservation been a fad in those days, all the remaining public land 
 would have been promptly declared a goose reserve. 
 
 Less than a century ago, well-meaning men were making dole- 
 ful prophecies about the impending extinction of the sperm whale, 
 and on that account the world would soon be in darkness from sun- 
 down until sun-up. What a pity some power strong enough did 
 not then declare the seven seas a whale reserve. 
 
 The idea of thinking for future generations has been tried. 
 About one hundred years ago, naval reserves of live-oak timber in 
 the southern states were created to provide the material to build 
 the battleships of the future. After these acres had been held for 
 generations in unproductive idleness they were recently restored to 
 
THE ALASKAN QUESTION 303 
 
 the use of man and if an individual went to the Navy Department 
 tomorrow to sell live-oak for building battleships, he would be 
 considered a candidate for the lunatic asylum. 
 
 The doctrine of radical conservation, as applied to coal, is an 
 absolutely hopeless one, for no matter how little or how much is 
 used each year, it will finally all be gone. 
 
 Right Minded Citizen Abhors. Waste. 
 
 Every right minded civilized man abhors waste, particularly of 
 something that can never be replaced; but the doctrine that this 
 is the last generation of inventors and scientists that will live and 
 that the many forces of nature now going to waste compared to 
 which all the coal in the world is as tallow dip to a thousand arc 
 lights, that these sources of power will never be harnessed by man, 
 and that the present generation must be starved as we Alaskans 
 are being starved, well words fail me when I attempt to express 
 my opinion of such criminal foolishness. 
 
 These lamenting Jeremiahs who moan over the exhaustion of 
 our natural resources pay all their attention to that section of the 
 country where the population is sparse, while the resources in the 
 section of the country where the population is dense are being used 
 as circumstances demand without any of their valuable advice and 
 assistance. 
 
 One of the problems of our nation is to restrict the people of 
 our country from congregating in the centers of population; yet 
 these radical conservationists demand the continuance of and ex- 
 tension of, a system that is depopulating, our territory, in which at 
 present there is only one human being, man, woman, child, Siwash 
 squaw and pappoose for every seven thousand, seven hundred 
 acres. 
 
 Alaska is being literally reserved to death. We have forest 
 reserves, military reserves one of them one hundred miles in di- 
 ameter, coal reserves, fish reserves, naval reserves, missionary re- 
 serves, church reserves, school reserves, seal reserves, bird reserves 
 and I suppose by this time, bug reserves and cranks crying for more 
 reserves. 
 
 Soon there will be nothing for us sour-dough Alaskans to do 
 but act as cooks and packers for me lud, the Eastern faddist, who 
 comes out to see what has been reserved at his behest, and then we 
 will be disappointed, for not one out of a hundred of these fanatics 
 will ever leave the deck of the steamer. In this connection I wish 
 to state that the self-styled leader of the conservation movement 
 has recently visited Alaska. . This great rrmsher, this great trail 
 
304 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 blazer who has penetrated the impenetrable fastnesses of the 
 mountains, who has communed with Nature, knows the trees be- 
 cause when all the world but he and they were asleep, he purloined 
 their bark lark secrets. This marvel of fortitude after, traveling 
 4,000 miles on Pullman cars and palatial steamships got within 15 
 miles of the Matanuska coal fields, about which he and his paid 
 assassins of character have been ranting, on a trail that has been 
 traveled for years by men, women, children and cripples still it 
 was too tough for him. He turned around and came back and 
 spent a large part of his time in Alaska around hotel lobbies trying 
 to justify his actions before a hostile and outraged people. If the 
 pioneers of Alaska had been made of no sterner stuff than he, the 
 Matanuska coal fields would never have been discovered. Less 
 than two hundredths of one per cent of the land of Alaska is in 
 private ownership, more than ninety-nine and ninety-eight one hun- 
 dredths are still in the public domain, and I ask you, in all candor, 
 do you blame us for using rather strong language when our develop- 
 ment is retarded by executive orders issued at the behest of fad- 
 dists who cry that Alaska is being gobbled up. 
 
 Alaskan Coal Question. 
 
 In regard to the so-called Alaskan coal question, the prac- 
 tically unanimous expressions of the people of our section are 
 voiced in the following extract from the memorial to the Secretary 
 of the Interior previously referred to: 
 
 "Alaskans recognize that the Alaska coal problem is hopelessly 
 perplexing, chiefly because of the vast discharge of wholesale mis-in- 
 formation. Alaskans know that there is no danger of an Alaska coal 
 monopoly. The coal fields are widely scattered and of far less value 
 than advertised in hysterical print. Alaskans generally believe that the 
 coal lands should be disposed of under existing laws for development 
 by private enterprises, relying upon the government to deal with mo- 
 nopoly should it be threatened. Recognizing, however, that in the 
 present exaltation of the Eastern mind through the epidemic of con- 
 servation, this is Impossible, many Alaskans are inclined to urge that 
 the government itself undertake the operation of the coal mines. If 
 this could be done successfully by a competent official board, it would 
 vindicate the theories of those who believe that the government should 
 have absolute control of its remaining fuel supply. If a capable Gov- 
 ernment commission, with full power to manage business under 
 regulated statutes should be unable to accomplish satisfactory results, 
 the project could be abandoned after a few years. 
 
 "It is needless to repeat arguments often iterated to emphasize 
 the folly of continued bottling up of Alaska coal. Alaska residents are 
 paying exorbitant prices for fuel and the government is paying un- 
 necessarily high prices for coal transported from the East for naval and 
 other Federal uses on the Pacific coast, while political agitators wrangle 
 over the unknown possibilities of Alaska coal fields. 
 
 "The leasing system is unanimously opposed in Alaska, because it 
 is un-American, and further, because it would intensify -rather than di- 
 minish, the chances, of monopoly. None but wealthy corporations 
 
THE ALASKAN QUESTION 305 
 
 could do anything with a lease and they would demand concessions 
 unlikely to be granted, and which, if granted, would license monopoly. 
 The leasing dream would mean indefinite postponement of coal mining 
 in Alaska." 
 
 Large numbers of people in the states advocate the leasing of 
 the Alaska coalfields without a second thought upon the matter. It 
 is not generally known that the leasing of mineral lands in the 
 United States has been tried, proved a disastrous failure and was 
 condemned by two Presidents of the Nation in messages to Con- 
 gress. 
 
 A high government official has recently returned from Alaska 
 advocating the leasing of the coal lands there and citing the case 
 of British Columbia as an example of where the leasing system 
 works well. This is not denied, but the cases are vastly different. 
 Does an applicant for a lease in British Columbia have to enter 
 into negotiations with officials in London acting under laws passed 
 by the British Parliament? No! Does he even have to go to 
 Ottawa? No. At Victoria the laws are passed by local people, 
 the negotiations entered into and consummated all right at home. 
 
 Alaskan Committee Report. 
 
 I wish at this point to % quote from the report of your committee 
 on Alaska affairs made to this session of The American Mining 
 Congress. I very much regret that time does not allow the reading 
 of this report in full. This report represents the work of many 
 months of painstaking labor on the part of that committee, but it 
 will be published with the records of this session. It being prob- 
 able that some of you at least will not read this report, I take the 
 liberty of quoting from it is follows: 
 
 "We are also opposed to making of Alaska the experiment station 
 for new ideas. We are unable to find where the leasing system has 
 ever been successful in the operation of coal fields under any govern- 
 ment. Leasing is perhaps successful to some extent in the coal mines 
 of Pennsylvania, where a market is near at hand and transportation is 
 well provided, frequently by competing lines, and the leases are from 
 individuals. It is not a government leasing system. 
 
 "It has been said that the leasing system works well in British 
 Columbia, Yukon Territory, and in Australia and New Zealand. We 
 can only repeat the statement that a half-truth is frequently the most 
 dangerous and misleading falsehood. The system in British Columbia 
 is in no sense a leasing system as is proposed in the United States. The 
 lessee in British Columbia may obtain a lease of sixty-four hundred 
 acres for five years, with a renewal for. three years, but is. privileged at 
 any time during the lease, or within three months thereafter, to pur- 
 chase the lands at $20 per acre. It is a significant fajct, too, that no 
 mines are operated in British Columbia under the leasing system. All 
 are operating upon granted lands. There is a law for leasing the coal 
 lands in the Yukon Territory. The only attempts ever made to operate 
 under that law resulted in failures. There is not a single coal mine 
 operated in the Yukon Territory upon a lease from the government. In 
 a similar manner the laws of Australia and New Zealand provide for 
 
306 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 private ownership at the option of the lessee. It is reported that much 
 coal is mined there under a leasing system, but that is because the 
 operators do not find it necessary to exercise the option given them to 
 purchase the land. They are given that option, however, and are thus 
 afforded the security of private ownership whenever they see fit to 
 exercise the privilege. No such system has been proposed for Alaska. 
 None of the leasing bills introduced in Congress permit the lessee 
 ever to acquire title to the land. The Robinson bill now pending before 
 Congress even provides for only a portion of the royalty upon coal 
 mines in Alaska to be expended in the territory, and the balance is to be 
 turned into the treasury of the United States. It is a rank injustice to 
 compel the residents of Alaska to pay a royalty into the Treasury of the 
 United States upon the coal they consume. Why not a similar royalty 
 from the consumers of coal elsewhere? The consumers of Pennsyl- 
 vania coal would object to paying such a royalty to the Federal Gov- 
 ernment, and the consumers in Alaska are entitled to urge the same 
 objections. 
 
 "Poor old Alaska has surely had quite enough of the leasing sys- 
 tem. It was leased by Russia from 1799 until 1867 to the Russian- 
 American Company. That company was the absolute lord and master, 
 and its leasehold sovereignty absolutely prevented development. For- 
 tunately nobody was lured there under false premises. Only those 
 went there who did so for the Russian-American Company. A leasing 
 system was not inflicted upon honest, hardy pioneers as is now proposed 
 by the American government. Fortunately, for the United States, 
 Alaska was not colonized or settled by the Russians. Their leasing sys- 
 tem prevented it. Otherwise the Russian people would have so well 
 developed Alaska by 1867 that the United States could not have bought 
 it for two cents an acre, with its wonderful fisheries and a fur seal herd of 
 6,000,000 thrown into the bargain. The first thing we did, however, was 
 to lease that seal herd to a company which in forty years made a net 
 profit of $5,738,000 and depleted the seal to about 75,000. In the mean- 
 time, the United States Government spent more money in patroling 
 the seal islands than it obtained from royalties on the lease, and Alaska 
 got absolutely nothing, not a cent in taxation, not a light-house, not a 
 school house, not as much as a flag pole. Now, the United States 
 Government has gone into the sealing business itself, and has already 
 begun to make a profit. But this kind of talk may lead us to advocate 
 the building of railroads in Alaska and the operation of coal mines there 
 by the Government." 
 
 Our opposition to the leasing system is based upon another, 
 and, we believe, a higher principle. It places the control of our 
 resources in the hands of a power five thousand miles away, out 
 of touch, out of sympathy, and indifferent to local needs and re- 
 quirements. It is a return to the system of land tenures that ob- 
 tained in feudal days, where the landlord was both landlord, law- 
 giver and law-interpreter. It has been argued that a large number 
 of coal mines of the United States are operated on a leasing basis 
 but these leases are between man and man, both of them standing 
 equal before the law and having to submit any differences that may 
 arise between them to a court before whom they stand as equals. 
 This system of governmental leasing leaves the question of any 
 differences to be decided absolutely in the hands of the leasor. 
 There is still another objection in the fact that this system will in 
 all probability not stop with the governmental leasing of coal mines. 
 
THE ALASKAN QUESTION 307 
 
 We have seen the forest service organized ostensibly for the pur- 
 pose of conserving the forests gradually, stealthily, insidiously, and 
 in many cases without a shadow of law to back their actions ex- 
 tend their fields of operations. We have seen them assume control 
 of our water power. We have seen them grab our wharf sites. We 
 have seen them meddle with the mines included in the forest re- 
 serves to the great detriment of that industry. We deny that a 
 people can be considered a free people who live under a system in 
 which the owner of the land is both the landlord and the law. 
 
 Any number of schemes that are probably practical and work- 
 able ones in such small compact countries as Switzerland or New 
 Zealand are absolutely unworkable in a country as vast as ours. 
 
 The securing of title to a few acres of land in Alaska involves 
 almost endless correspondence with Washington, the unwinding of 
 miles of red tape and generally years of delay; and the matter of 
 issuing patents to government lands is something in which our of- 
 ficials have the experience of over a century to guide them. To in- 
 troduce some new system now would, as the Valdez memorial 
 states, "mean the indefinite postponement of coal mining in Alaska." 
 Abolition of Forest Reserves Urged. 
 
 One of Alaska's needs is the immediate abolition of forest re- 
 serves. The recent and present governors of the territory have in 
 their reports condemned them. I wish to speak for a moment, upon 
 the Chugach reserve in which I live. This reserve covers thou- 
 sands of square miles along the southern coast, more than ninety 
 per cent of which is utterly destitute of timber, being barren slopes, 
 glaciers and mountains above timber line. Less than ten per cent 
 is covered with a scattering growth of spruce, hemlock and cotton- 
 wood of inferior quality, practically all mature and largely super- 
 mature. Not a foot of this timber will ever be exported. In fact, 
 a large part of the lumber used within the limits of this reserve 
 is shipped from Puget Sound. It is only useful for local needs, and 
 should be used by our people without undue restriction. 
 
 Forest reserves are supposed to be created to provide timber 
 for future generations, to attract rainfalls, to regulate stream flow, 
 to prevent forest fires and provide government revenue. 
 
 Let us take up these propositions in turn. 
 
 First. What is the use of preserving timber that is falling 
 down and rotting of old age for future generations ? 
 
 Second. As to rain fall, the area embraced within the limits 
 of this forest reserve receives a rain fall of from seventy to one 
 hundred and twenty inches per annum. As over ninety per cent of 
 
308 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 this reserve is destitute of timber and the treeless Aleutian islands 
 to the west of us receive more rains than we do, the idea that the 
 cutting of the timber needed by our people will have any effect 
 upon rain fall is utterly absurd. 
 
 Third. As to stream flow, our streams largely have their 
 sources in the everlasting glaciers, and would flow bank full for 
 centuries without a drop of precipitation. 
 
 Fourth. As to forest fires, there never has been a forest fire 
 in this reserve, and never will be, soaked with rain in summer, 
 and covered with snow in winter. 
 
 Fifth. As to government revenue, it has cost the Government 
 two dollars for every one it* has collected so far, besides imposing a 
 *ost of thousands of dollars upon our citizens in obtaining permits. 
 
 We defy the forest service to show one single benefit it has 
 conferred upon the people living in this reserve, upon the people 
 who will live in it in the future, or upon the people of the United 
 States generally. 
 
 In conclusion, I wish to state that in my opinion there is no 
 Alaskan question any more than there was a Montana question or 
 a Colorado question fifty years ago. All we wish and all we ask is 
 the same rights as have been accorded the pioneers of other terri- 
 tories in their primitive struggle for development. 
 
Wanted, an Informed Public Sentiment to Support a New 
 Federal Policy Toward Alaska. 
 
 BY HENRY R. HARRIMAN, 
 SEATTLE, WASH. 
 
 The American Alining Congress is the best friend Alaska has 
 ever had and God knows she needs friends. But that we may 
 meet on the level of absolute frankness I confess to a strong 
 hesitation, in attempting to discuss this subject even with you, who 
 as a body are undoubtedly best informed as to her merits and 
 most kindly disposed to her welfare and success. 
 
 As Governor Clark of Alaska rightly points out in perhaps 
 his most recent interview, the fuel question is the vital one in 
 Alaska. Vital in the basic needs of that extreme climate. Vital 
 to the future development of Alaska as a territory and as an or- 
 ganized community. Vital in a large sense to the commercial needs 
 of the whole Pacific coast. Vital to the pre-eminence to the 
 safety even of the American Navy on the Pacific; and a living 
 issue perhaps not the least that in its righteous solution will, in no 
 small way, determine whether the land policy trend of this Gov- 
 ernment will falter or will continue to higher levels. 
 
 In the kaleidoscope of conflicting and bewildering ideas from 
 what angle shall we study this subject? 
 
 The Guggenheims in Alaska. 
 
 Shall we attack the Guggenheims? This is a very populai 
 method of approach and sometimes retreat and requires little 
 courage. No white plumed knight is apt to pick up the gage of 
 verbal battle in support of that somewhat sordid institution. But 
 suppose we should entertain you with a narrative of the sins of 
 the Guggenheims, and some of their peccadillos have not as yet 
 appeared in print, of what profit, gentlemen, would it be in this 
 discussion ? 
 
 The Guggenheims exemplify in an unusual degree that which 
 is unlovely and uninspiring in corporate greed, blunder and grab. 
 Incidents such as the "Controller Bay Case" are not the figments of 
 reportorial imagination. It has been intimated to me that the 
 Guggenheims do not require an introduction to this audience. 
 
 But, gentlemen, there is something more important and vital 
 than the sins of the Guggenheims; and that is the investment .of 
 
310 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 real money and big money in the commercial development of 
 Alaska. 
 
 Not chiefly in that fascinating and speculative development 
 that means ultimate and early exhaustion of placer gold fields. 
 Not in those other forms of so-called development that spell large 
 immediate profits and speedy destruction. Not chiefly in these. 
 But in the less alluring, entirely permanent and deeply essential 
 business of railroad building, quartz development, and industrial 
 investment. 
 
 Of course not unselfishly. But their railroad in a successful 
 effort to reach their one mine affords transportation to scores of 
 other prospects and properties in which they have not one cent's 
 worth of interest; traverses valleys highly suitable for agricul- 
 ture, free for the taking; and from the beginning provides a mar- 
 ket for the farmer who will settle there. 
 
 Competent railroad men who have studied that line say that 
 unless the mine is robbed this railroad, as a commercial investment, 
 will not be attractive for several years to come. But its commer- 
 cial importance to Alaska cannot be over-estimated. Bear in mind 
 that not one pound of freight can be hauled over this, or any other 
 road in Alaska, except upon a tariff first approved by the Honor- 
 able Secretary of the Interior; and that for the past several years 
 every foot of right-of-way granted in Alaska by stipulations, prece- 
 dent to such grant, is subject to a very intimate control by the 
 Secretary of the Interior both before and after construction. 
 
 It takes courage and foresight to make this sort of investment 
 in Alaska, and this is the only sort of investment that will build the 
 Territory into self-sustaining statehood. 
 
 I have always been classed as an Independent in Alaska. I 
 have no reason to love the Guggenheims; but I challenge your 
 broad experience and your fairness when I say : 
 
 That the man or men with a million dollars to invest in 
 Alaska or anywhere on the globe may rightly expect to pur- 
 chase at jobbers' rates. The man with one hundred thousand dol- 
 lars will surely get wholesale rates; while the man with one 
 thousand dollars buys at retail. 
 
 Some day we will learn that wholesale attack upon profit 
 in business is not an assault upon special privilege, even though, 
 from the concentration of investment, the profit bulks large. 
 Rather should the "Spirit of '76" be ever vigilant that no monopoly 
 of route, or harbor, be permitted ; and the spirit of fair play divorce 
 herself from envv. 
 
NEW FEDERAL POLICY TOWARD ALASKA WANTED 311 
 
 For any man or group of men who have the courage to most 
 largely put their money into the permnaent mining and commer- 
 cial development of the Northland, are entitled to permanent and 
 substantial rewards. They should be given every reasonable en- 
 "couragement and honest inducement, and their property should be 
 made secure and be respected. 
 
 Federal Responsibility. 
 
 The chief duty in this respect lies at the door of the Federal 
 Government. Titles must be made stable and there must be an 
 honest and prompt fulfillment by this Government of its part of the 
 bargain ; so that it may again become a proper bulwark of strength, 
 instead of a synonym of delay and oppression. 
 
 Let it be unequivocally announced at Washington that every 
 encouragement and safeguard will be given to lawful enterprise; 
 but that the monopolization of harbors, routes or resources will 
 not for one moment be tolerated. 
 
 Let Washington be no longer like the mature maiden who hesi- 
 tated, vacillated and delayed the acceptance of the long overdue 
 proposal because she feared she might become the mother of a 
 son who in manhood's years might commit some crime and suffer 
 the penalty of the law. 
 
 And to those of us whose humbler efforts to develop the North- 
 land are circumscribed by limited personal means ; and those who 
 have no opportunity of Alaskan investment, let me say: "Be- 
 ware of that antagonism which is not unmixed with envy; and is 
 founded not a little on fear." 
 
 For the greatest calamity that could befall Alaska is that any 
 large group, or source of capital should be so harassed by the 
 Administration, and so exhausted by the petty -hostility of the 
 people at large, that it should abandon the effort, and its unfinished, 
 wasted and unproductive investment stand as a monument of 
 warning to the business world. 
 
 Rest assured that government-built and owned railroads are 
 too good to come true, nor will Alaska be developed and her wealth 
 shared by the American people by any system of Government de- 
 velopment, or by Government ownership and a leasing system. 
 It is much to be doubted if the maximum return from royalty 
 leases would provide with lucrative inspectorships the highly eligible 
 patriots who now occupy that band-wagon. 
 
 I am unquestionably an Independent ; I am classed as anti- 
 Guggenheim ; but I say, as I have always said : "Fight for a square 
 deal and the open door. Keep alive the 'Spirit of '76,' but be hon- 
 
312 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 est and broad-minded, and hope and strive that Mr. Guggenheim 
 and every citizen may have one hundred cents and a fair profit for 
 every dollar he or they put into Alaska!" 
 
 The refusal of this Government or any constituted authority 
 worthy of the name of Government, to administer existing law with 
 the force and effect intended by the Congress simply because men 
 might be tempted, or because it was charged by non-resident 
 officials that men had been tempted to attempt its evasion and take 
 advantage of its generosity, is a travesty on the name of Govern- 
 ment and unthinkable at least in this Republic. 
 
 Against such a policy, measured in terms of courage, the old 
 maid just described, hesitating over her first proposal, is a veritable 
 Joan of Arc. 
 
 Alaskan Coal a Political Issue. 
 
 They tell you that the Alaska fuel question has been for some 
 time a political issue. There is some little truth and some little 
 reason in that statement. 
 
 In a notable article published this month Mr. Gifford Pindhot 
 frankly admits that conservation also is in politics to stay. He 
 says: "In the work of stopping the waste of our natural re- 
 sources, the master quality is foresight. Political foresight is as 
 necessary to prevent the failure or destruction of the conservation 
 program as practical foresight is to prevent the destruction or 
 monopoly of the forests or the coal fields of Alaska. It is there- 
 fore not only natural but necessary and right that an advocate of 
 conservation should look ahead in politics." 
 
 I was asked by a little group of congressmen just before ad- 
 journment, "Mr. Harriman, what is hurting Alaska today? What 
 is the trouble?" "I can answer you in four words," I replied, "if 
 you will promise not to take offense." This being agreed to, I gave 
 th,em the answer. "One-nine-one-two," and there was silence in 
 heaven for the space of half an hour. 
 
 The Alaskan fuel question is rightly perhaps in politics today. 
 I for one would gladly submit this or any other question to the 
 suffrage of the American people, granted first and always that the 
 people have a chance to weigh the' facts before voting, and that 
 the great parties do not take sides before the real facts and merits 
 are known. 
 
 It is unfortunate that a man of great abilities and a pre- 
 eminent opportunity for usefulness should have wholly committed 
 himself upon this question in the academic privacy of his study on 
 the unsupported data of a zealous young man who had himself in- 
 
NEW FEDERAL POLICY TOWARD ALASKA WANTED 313 
 
 vestigated the Alaskan question in the streets and byways of 
 Seattle and in the poorly lighted -document room of the modest 
 land office at Juneau. 
 
 It is doubtless unfortunate that that young man and his equally 
 zealous and ingenious co-partner had never been within five 
 hundred miles of the Alaskan coal fields; and that their frank ad- 
 missions show them also to "be cruelly handicapped by a virgin 
 ignorance of all practical things pertaining to mining. 
 
 It is unfortunate that before Mr. Pinchot enunciated his 
 policies as to the preservation of the forests in the coal fields of 
 Alaska that he did not have the benefit of a conference with some 
 one who had actually seen these primeval forests, as he would have 
 found that a hundred square miles of these coal lands are shielded 
 from the cruel blast by less standing timber than makes market- 
 able many a section of timber in the states of Washington and 
 Oregon. 
 
 It is a public misfortune that in his recent trip to Alaska he 
 spent more time in the hotels of Cordova and in the defense of his 
 pre-determined policies before an exasperated and perhaps un- 
 sympathetic audience at Cordova, than in the forest and coal fieJds 
 of Katalla eighty miles away. 
 
 It is to be regretted that he did not borrow an axe and visit 
 these forests which he has conserved from the ruthless hands of 
 the man who otherwise might have built a log cabin or warmed 
 his children before a wood fire. It is regrettable that a brief 
 momentary experience of the exigencies of a pioneer life did not 
 send him in search of an armful of firewood. For a few blows of 
 the axe and an hour in this forest reserve would have shown him 
 that the trees there are passing their prime and are already so 
 dry rotted that sometimes only one tree in three or four is fit for 
 firewood. 
 
 It is unfortunate also that he -did not learn that such standing 
 timber there as might still serve a useful purpose possesses but 
 little over half the tensile strength of States timber, and is of rela- 
 tively small commercial importance in the future of the coal mining 
 industry in Alaska. 
 
 Burden of Complaint "The Forestry." 
 
 The members of your Alaskan committee have not been parti- 
 san in this matter. In a series of informal conferences had with 
 the mining men in various quartz mining communities I pledge you 
 that we gave no intimation of the personal views of our committee. 
 We simply asked them to state freely their ideas, and make any 
 
3i4 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 suggestions or statements which might be of interest to the Mining 
 Congress. And the burden of their complaint was "The Forestry." 
 Their inability to use timber to open their prospects and mines, to 
 use any waterpower, and the successful opposition by the forestry 
 to the patenting of quartz claims on which any standing timber was 
 reported. 
 
 We found one man, and one man only, a very intelligent and 
 likable gentleman, who mildly took up the cudgels for the Pinchot 
 policies. He avowed that "there might be something said on the 
 other side." Later we inquired what his business was, and were 
 enlightened to find that he was operating a little power water plant. 
 "Where does he get his power?" we asked. "Oh," they said, "he 
 has some sort of a lease of the falls back of town." "From whom?" 
 we asked, mildly curious. "Why, from the forestry department," 
 was the answer. Can you see the picture of the phonograph and 
 the devoted listener? 
 
 It is unfortunate that men of standing, native ability and 
 sincerity, such as Mr. Pinchot, must approach these questions 
 wholly in the dark as to the facts and merits, and are . forced to 
 lend ear to those disinterested patriots who go about the country at 
 their own expense, and furnish interesting reading matter at rates 
 attractive to both reader and author. 
 
 And it is to be regretted that frail mortals that we are, having 
 once publicly committed ourselves to an attitude or policy as to a 
 given state of facts, we are prone to review these facts or visit the 
 section under discussion in a sincere and wholly unconscious effort 
 to strengthen our position, for granted that the earth is flat, there 
 is much even in Holy Writ to support the contention. 
 
 A few days after the Controller bay story "broke," as the 
 newspaper men say, a very eminent congressman, whose utterances 
 on that subject had shed light upon several pages of the Con- 
 gressional Record, sent for me and said : "Harriman, where in the 
 deuce is Controller bay?" I do not quote him with exactness. 
 
 That is the trouble. There is no better nor more useful public 
 servant in the halls of Congress than that gentleman, but like the 
 small boy with the stomach ache, he only knew there was trouble 
 somewhere. He couldn't tell just how serious it was, and his only 
 recourse was to lift up his voice. 
 
 The point is obvious. If the men in Congress and in public 
 life have not gotten the facts, what of the American public who 
 oppose monopoly and want to deal squarely. 
 
NEW FEDERAL POLICY TOWARD ALASKA WANTED 315 
 
 It is idle to abuse the special agent, it is unfair ofttimes to 
 attack the executive officers of the land office. They have no 
 alternative but to carry out the policy of the existing administra- 
 tion, and are very much in the same position of a firing squad 
 executing upon a comrade the decree of a drum head court 
 martial. 
 
 The report of your Alaskan committee last year might be 
 properly entitled "Wanted a New Administrative Policy for 
 Alaska." That report, which you so generously endorsed, stands 
 with full force today. 
 
 Since that time a new and vigorous governor has made an 
 extensive tour throughout his territory, and is looking its prob- 
 lems squarely in the face. 
 
 Since that time, in season and out of season, Alaska's delegate 
 to Congress has been fearlessly demanding "a new deal and 
 a square deal for Alaska," and has won an ever increasing sup- 
 port. Since that time three cabinet officers, including the new 
 Secretary of the Interior, have visited Alaska, and reported to the 
 President. And the Secretary has shown his wisdom in asking the 
 co-operation and advice of our own Dr. Holmes and the only Dr. 
 Brooks and their splendidly informed staffs. And since that time 
 the eminent judge, who presides at the White House, has been 
 studying the various plans, .which unfortunately do not always 
 agree, weighing the facts, and promises speedy and equitable 
 judgment. 
 
 So we again say "Wanted. A New Policy," and what is 
 equally important, "Wanted. An Informed Public Opinion to Sup- 
 port and Encourage Such a Policy." 
 
 A tradesman in the vicinity of Boston, in a small way of busi- 
 ness, asked me last week if Alaska was a part of the state of 
 Washington. He is in no sense characteristic of the East, but 
 his knowledge of geography is as poor as is the average good citi- 
 zen's acquaintance with the essential conditions in that remote 
 territory. 
 
 Eastern Man's Advice. 
 
 A few months ago at an earnest gathering of Alaskans, an 
 Eastern man, invited for his recognized impartiality and wide ex- 
 perience, said in effect: "I have just returned from Alaska. My 
 preconceived ideas, gathered from all I could find in the Eastern 
 press, have been radically modified. My advice is: Raise a few 
 thousand dollars' expense and invite one or two eminent Eastern 
 magazine writers to Alaska, and through them the true facts will 
 
316 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 begin to come before the people particularly the Eastern readers 
 and you will get immediate sympathetic support." 
 
 Gentlemen of the American Mining Congress, it is pertinent 
 to the subject, and I believe it is fair and right that I tell you, that 
 members of your Alaskan committee have by invitation attended 
 at least a half-dozen subsequent meetings, at which, in the aggregate, 
 fully seventy per cent of Alaska coal claimants were represented. 
 It was proposed to take some action upon the advice I have just 
 described, and I say to you, with no desire to belittle these men, 
 that by no further self-sacrifice could they raise the needed money 
 until this question is settled. 
 
 Further than that, some months ago certain congressmen let it 
 become known that if a representative Alaskan mining man would 
 come to Washington he would be given a fair and impartial 
 hearing. A committee of Alaskans worked for several days, and 
 had several meetings, and finally the bare cost of a return fare was 
 raised. And if that Alaskan unrolled his blankets elsewhere than in 
 the public parks at Washington he did so at his own expense. 
 
 And why should this be ? These men are of the same bone and 
 flesh, courage, experience and ability, as those who in other fields 
 of Alaskan exploration have already won a pioneer's reward. But 
 consider their condition. Their explorations, privations and dis- 
 coveries have been held as naught, and their money spent in de- 
 velopment has been claimed as a forfeit. 
 
 When you decree the title to a man's home is void, you rob 
 him of that home; and rather you destroy a man's credit and 
 standing, you had better turn his family into the street. So I say to 
 you that there are men of Alaska who have spent the savings of 
 their lifetime, and the money of their f-riends in the development 
 of small areas of coal land, who have years ago paid the American 
 Government its price in full for that land ; and against whose 
 entries no charges or intimation of charges have been made by any 
 special agent or other official who cannot get their patents or raise 
 or borrow a dollar on their property. 
 
 And what is the reason? It is because please do not mis- 
 understand the spirit of this utterance when I say to you an in- 
 creasingly large number of people, in the West at least, have come 
 to believe that, irrespective of the merits or desserts of the indi- 
 vidual, but in response to what is thought to be a public demand, the 
 American Government is going to repudiate its statutory obliga- 
 tion and wipe out all existing claims.. 
 
NEW FEDERAL POLICY TOWARD ALASKA WANTED 317 
 
 "And for what end and for whose benefit?" they ask. "In 
 order to lease these claims which the toil and labor and savings of 
 others have discovered, prospected and partially developed^ to the 
 obvious few whose condition of special privilege unll alone enable 
 them to operate Alaskan coal measures under a leasing system," 
 A Leasing Bill No Remedy. 
 
 I am not at this time attacking the leasing system of Alaska 
 coal per se. It is a straw man, as yet unsupported by merit, sound 
 morals or reasoning; and we will not turn aside to take serious 
 issue. Yet lest we be understood to impugn the ability or sin- 
 cerity of the able men who have been learnedly discussing or out- 
 lining proposed leasing bills for Alaska coal, let me say, with all 
 possible emphasis and care, I have examined with much appre- 
 ciation at least one such proposed measure. It shows admirable 
 care and marked ability. Its author I am pleased and proud to 
 know ; and with him I have no controversy on the merits of the ex- 
 isting coal cases. He will, I think, frankly tell you that he knows 
 little or nothing about them. He has had neither opportunity nor 
 reason to know about them. Get this, please, in fairness to many 
 members of Congress of whom he is representative. He has merely 
 been asked, as an eminent authority on public land legislation, to 
 draft a bill for the leasing of coal lands contained in the public 
 domain in Alaska with special safeguards against monopoly and 
 abuse. I only wish that the same man might be constituted the im- 
 partial tribunal for the determination of all the pending cases; and 
 that he had the opportunity, in a judicial capacity, to thoroughly 
 sift the facts and merits. 
 
 The Alaskan coal question is still unsettled even by the passage 
 of such a measure. Let us first bury the corpse before we part its 
 garments amongst us*. 
 
 Is it proposed instead of a patent to offer the claimant a lease? 
 If he is entitled to a patent the offer is unfair to him, and if he has 
 obtained his claim by fraud, the offer is equally unfair to the 
 Government. 
 
 A Profound^Unrest in Alaska. 
 
 Alaskans are either entitled to patents, or to nothing at all. 
 To refuse a patent and suggest a lease, or to wear out by inter- 
 minable* delay one deserving of a patent until he offers to exchange 
 his birthright for a lease, is a course that we still refuse to believe 
 possible. But it has been freely charged. And it has been as 
 freely said by otherwise conservative men from many parts of 
 Alaska, that if submitted to the suffrage of the residents of Alaska 
 
318 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 tJvey zvould roll up a majority in favor of annexation to a neigh- 
 boring Dominion. And there are in Alaska fully as large a per- 
 centage of men who have fought under the flag as may be found 
 in any part of the United States. 
 
 And this statement does not imply a lack of love of country or 
 of inherent patriotism. It arises from stern economic-bread-and- 
 butter conditions. 
 
 It is a matter of general knowledge that our neighbors across 
 the line have been singularly happy and successful in the handling 
 of their public domain irrespective of distance from the seat of 
 government. Results to which our existing system in Alaska does 
 not as readily lend itself. So that while these same men might 
 favor annexation, there are hundreds of them that if need arose 
 would come home to fight for the flag against any extra-continental 
 foe. 
 
 Fair Play for the Grubstaker. 
 
 That earnest band of patriots whose outcries, like those of 
 Gideon's Band, have been mistaken by the administration as the 
 voice of the people, and the voice of God, have summarized the 
 Alaskan question into a Proposition, a Corollary and a Q. E. D. 
 which may be stated thus: 
 
 The Proposition Is: 
 
 Granted that while, possibly, the man who in Alaska actually 
 discovered the coal vein an-d chopped and drove the stakes may have 
 some right ; and that after a few more years' deliberation he may 
 be sought out in some Old Soldiers' Home or poor house and be 
 handed a moss-grown patent ; yet the man in the states who gave 
 him the money to buy his ticket to Alaska, bought the flour and 
 bacon he ate, the shoes he prospected in, and the axe that drove the 
 stake, this man, who made the whole thing possible, is a non- 
 resident robber, a conspirator, and should be promptly indicted. 
 
 This is the proposition, and I may add that such a man is 
 usually depicted behind a mahogany desk in the East. Why the 
 telling detail of a plug hat has been overlooked I cannot say. 
 
 Now comes the corollary : 
 
 "Corollary." 
 
 The resources of Alaska belong to.a// the people! Therefore, 
 and Q. E. D., we will take away from the wicked few, whose sav- 
 ings have made even its existence known, and give it unto all the 
 people, who have toiled not, neither have they spinned, and yet the 
 
NEW FEDERAL POLICY TOWARD ALASKA WANTED 319 
 
 bulk of whom, unlike the heavily endowed Prophet, readily need 
 the money. 
 
 No man with a day's business experience, no man with moder- 
 ate powers of observation, but can recognjze the enormous injustice 
 of such a proposal. 
 
Transportation in Alaska. 
 
 BY DUNCAN M. STEWART, 
 SEWARD, ALASKA. 
 
 Mr. Chairman and Fellow Members of the American Mining 
 Congress : My first duty is to express my keen appreciation of the 
 honor conferred upon me by the invitation to address you, and if 
 only that honor did not carry with it a serious responsibility and a 
 heart-rending feeling of inability to rise to the importance of the 
 occasion and deal adequately with the subject, I could with all hon- 
 csty, express to you my happiness also. 
 
 I believe any man who has the temerity to address a public 
 meeting invests himself with a responsibility to say something; to 
 deliver a real message ; and when it comes to addressing one of the 
 most powerful organizations of men in America on a topic of vital 
 interest to a country twelve times the size of New York state, and 
 whose land area is more than the combined area of the states of 
 Washington, Oregon, California, Arizona and Nevada, the burden 
 of responsibility is certainly not diminished. I feel that a man in 
 such circumstances should divest himself and his remarks of clap- 
 trap and buncombe, adhere strictly to facts, and avoid sensational- 
 ism. We have enough of that sort of thing in the utterances of 
 some public men who know little or nothing of the real conditions 
 in Alaska, and for that matter wherever great issues are discussed 
 and great political questions involved, where even the flag is not 
 sacred, but has to be unfurled to the wind of verbose orators and 
 then held at angle to hide in its glorious folds the ignorance or 
 casuistry of the speaker. 
 
 Realizing then my responsibility as one privileged to address 
 this great meeting, as a resident of Alaska ; as one deeply interested 
 in the development of its natural resources yet holding no brief 
 from any corporation or coterie of individuals I beg to assure you, 
 and all those to whom these words may come, that what I have 
 to say to you today is absolute, unadulterated fact. For this rea- 
 son I shall refrain from expressing mere opinions ; I shall not dis- 
 cuss the merits or demerits of a leasing system ; I shall not question 
 the desirability or otherwise of government ownership of railways ; 
 I shall not expatiate on any contentious subject, but will confine 
 myself 'entirely to a statement of incontrovertible facts regarding 
 transportation and kindred matters in Alaska, and leave it to you 
 
TRANSPORTATION IN ALASKA 321 
 
 to draw your own conclusions and decide what we are going to 
 do about it. With this understanding, I bespeak for the subject 
 your kind attention and earnest consideration and for myself your 
 generous indulgence. 
 
 In the first place, Alaska is a beautiful and delightful country ; 
 and its climate is the most salubrious in the United States ac- 
 cording- to army vitality reports and the experience of the civil 
 population residing there. 
 
 Every Alaskan harbor south and east of Cook Inlet is ice 
 free and open to navigation all the year around. While the ports 
 of Quebec, Montreal, St. John, Albany, and Buffalo are absolutely 
 closed to navigation during the winter, all of the most important 
 ports of Alaska, excepting Nome, Fairbanks and St. Michaels, are 
 open to winter transportation. Ketchikan, Juneau, Skaguay, Cor- 
 dova, Valdez and Seward enjoy at least" a weekly mail service from 
 the United States, and the three last named towns are situated on 
 harbors that are unexcelled, if not unequaled, by any others on the 
 Atlantic or Pacific coasts. These three place, Cordova, Valdez and 
 Seward, are the winter ports for Alaska proper. Skaguay is an 
 important port but is mainly used in winter to go to Dawson, 
 which is in Canada and not in Alaska, as many Americans seem to 
 think. Even the post office department is not always sure on thin 
 point, and it is on record that one of Uncle Sam's alert inspectors 
 wrote sharply to the post master at Dawson for the usual returns 
 which were not arriving in Washington as promptly as the regula- 
 tions required. That official of his Britannic Majesty, however, 
 replied that he had been faithfully forwarding the returns to his 
 own government at Ottawa, where they belonged! 
 
 Three Seaports Natural Termini for Railroads. 
 
 These three sea-ports are the logical and natural termini for 
 railroads to the interior for what we may call trunk lines but 
 only at Cordova has the steel been laid for any material distance. 
 There the Copper River & Northwestern R. R. has trains in opera- 
 tion for something over two hundred miles and has been hauling 
 ore that distance from the Bonanza mine since last April. This is a 
 standard gauge road of heavy construction* steel bridges and well- 
 ballasted track, that has the comparison entirely in its favor when 
 compared with the best pioneer railroads of the Northwestern 
 states and Canada, lines that now constitute the great transconti- 
 nental systems of America. This magnificent road has opened up 
 to prospectors a country which otherwise would have been closed 
 to them forever, and hundreds of people are living along its route 
 
322 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 and towns springing up that were not, and never would be, on the 
 map before this enterprise became effective. This is what is known 
 as the Morgan-Guggenheim road, so popularly believed in the east 
 to be "bottling" rather than opening up the country. Yet this 
 road has made it possible for men to penetrate far into the mountain 
 ranges and placer valleys in search of precious metals that would 
 have been irretrievably locked up without it. Before the advent 
 of this railroad it would take a man a whole year to get a camp 
 equipment and outfit of supplies as far into that section of the 
 country as he can now go in twenty-four hours. 
 
 At Valdez there is not enough track laid to dwell on the fea- 
 ture of railroad transportation there, but that is the starting point 
 of the Government trail to Fairbanks. All roads and trails built by 
 the Government in Alaska are in charge of a road commission, 
 under the war department, and are properly described as "mili- 
 tary roads." This road, from Valdez to Fairbanks, is one of our 
 best, and has been of tremendous importance to Valdez and the 
 country generally in opening up the mining territory tributary to 
 Fairbanks and the Tanana River and developing a great gold pro- 
 ducing camp. 
 
 At Seward a standard gauge railway has been completed for 
 seventy-two miles and surveyed for seven hundred miles, includ- 
 ing branch lines, through the very center of Alaska. This road, 
 which is known as the Alaska Northern Railroad, gives a very 
 efficient car service daily except Sunday for passengers and express 
 freight, with an occasional steam locomotive freight train, as traffic 
 demands. This company does not operate in winter as it is under- 
 going a financial re-organization, which, by the way, was brought 
 about by the action of a federal judge who granted a receivership 
 on the petition of one man, without according a hearing, or even 
 giving notice, to any official of the railway. He appointed his own 
 brother-in-law receiver at a salary of $1,500 per month and ex- 
 penses, and then immediately adjourned his court for six months, 
 thereby effectively preventing the owners from removing the re- 
 ceiver and re-obtaining the management of their own property. 
 This corrupt judge was* removed from office later in punishment 
 for this crime, and that is about the extent of the aid the present 
 administration at Washington has given to this particular enter- 
 prise. The passenger traffic of this road is very heavy in summer 
 and its right-of-way affords excellent traveling for dog-teams in 
 winter, being used as part of the "Seward-Iditarod Trail" for about 
 eighty miles. 
 
TRANSPORTATION IN ALASKA . 323 
 
 Although originally intended to primarily tap the resources 
 of the Kenai Peninsula, Kuskokwim, Susitna and Tanana River 
 valleys, the raison d'etre of this line now is the coal of the Ma- 
 tanuska valley, which Government authorities claim to be the most 
 valuable of all known coal fields in Alaska. In this section recently 
 Mr. Gtfford Pinchot traversed part of the survey route of this 
 railway, and had to do so on foot by the way which I trust em- 
 phasized in his case the desirability of improved transportation 
 facilities and I heard him say that the soil was as rich as that of 
 the richest of our western states. At all events, he saw several 
 varieties of edible berries, such as currants, raspberries, blueber- 
 ries, cranberries, etc., growing wild in the utmost profusion, while 
 there was such a continuously luxuriant growth of "redtop" grass 
 which happened to be wet at the time that he could only describe 
 his progress by saying that he "swam over that trail." He did not, 
 however, observe any great evidences of human industry, any 
 serious attempts at farming or clearing off this rich land, much less 
 a succession of towns and villages. No, the route to these coal 
 fields is at present traversed only by a horse trail ; you cannot drive 
 a wagon over it ; the Government did nothing towards it, and it 
 cannot even be dignified by the title of "Military Road." It is an 
 expensive business getting in supplies over it; there are no attrac- 
 tions about it for the prospector or pioneer; in short there are no 
 transportation facilities. But build a railway into that country ; open 
 up the coal mines and operate them, and people would flock there ; 
 a local market for the food products of that rich soil would be at 
 once created, and the land would blossom as the rose. 
 Transportation Great Problem of Alaska. 
 
 Transportation is the most transcendently important problem 
 confronting Alaska today. The speakers preceding me have given 
 you accurate, #s well as graphic, information about its coal, its gold, 
 its copper, its timber^ and other great natural resources. You have 
 heard from sound, practical men how they would deal with the 
 homestead laws and the coal land laws, and the people of Alaska 
 have received from others a variegated multitude of panaceas for 
 all the ills that country is heir to, but let me assure you that there 
 can be no real cure for her troubles that does not include in its 
 composition the subject of transportation. All questions affecting 
 the physical development of Alaska are indissolubly connected with 
 the one great question of transportation. 
 
 The opening of the coal lands is absolutely essential to the 
 building of railways through central Alaska by private capital. Of- 
 
324 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 ficials of the Alaska Northern R. R. inform me that they arc 
 unable to operate trains hauled by steam locomotives so long as 
 they have to pay fourteen or fifteen dollars per ton for imported 
 coal, as they do at present, and I understand that competent of- 
 ficials of the Pennsylvania R. R. say they could not operate that 
 great system profitably at a coal fuel cost of twelve dollars per 
 ton. At Seward, the terminus of this railroad, private individuals 
 pay seventeen dollars per ton for coal, whereas- if the Matanuska 
 coal was available the article could be bought for from $5 to $7 per 
 ton, and have a much better grade of coal at that. 
 
 You have heard from other speakers that while the coal fields 
 of Alaska are withdrawn from entry it becomes a crime (larceny) 
 to use local coal. The anomaly thus created is best illustrated by 
 the plight in which the Tanana Valley Railway finds itself. There 
 is an abundance of good steam coal along the right of way of this 
 road, and a scarcity of timber, but it is forced to leave the coal and 
 burn wood at a cost of about $12 per cord! Should not this be 
 set right? 
 
 There are eight lines of railroad in Alaska with about 500 miles 
 of track. Five of these are purely local, catering to the traffic of 
 the mines in their respective territory. The other three, namely, 
 the Copper River Northwestern; White Pass & Yukon and the 
 Alaska Northern are the most important to the country generally, 
 and of these, the White Pass & Yukon Railroad is the only one 
 affording transportation facilities into the very interior of Alaska, 
 by way of the Yukon River, and that is partly through Canadian 
 Territory, with only 112 miles of track all told. This route to the 
 interior can only be used advantageously in summer, as the Yukon 
 River is frozen in winter. This road, which was a financial suc- 
 cess from its inception, was built with English capital and has been 
 of great value in developing American territory on the Alaska side 
 of the border. 
 
 What these two railway enterprises have accomplished in the 
 way of developing the latent wealth of certain sections, and much 
 more besides, can be achieved by the building of a trunk line along 
 the projected route of the Alaska Northern Railroad, and the people 
 of Alaska do not care who build it ; they will extend a hearty wel- 
 come to the owners of such a project whoever they may be. There 
 is not a coast town in Alaska today that is not envious of Cordova, 
 because it has a real, live road, steadily and irresistibly forging its 
 iron way into the heart of the territory contiguous to that terminus. 
 The people of Alaska differ among themselves on political and 
 
TRANSPORTATION IN ALASKA 325 
 
 economic questions, and they are far from unanimous as to the 
 best method of exploiting its great natural resources; but they are 
 a solid unit on the subject of transportation, and they are quite 
 indifferent as to whether private capital or the United States 
 Government build trunk lines of railway and good wagon roads, 
 so long os they are built, and that soon. 
 
 Wagon Roads Needed. 
 
 But the building of trunk lines, or any other lines, of railroad 
 is not the only essential ; there is even a more crying need for good 
 wagon roads. The appropriation for roads and trails in Alaska is 
 wofully inadequate, and the methods of expending it are distinctly 
 bad. I could point to instances where new trails stopped short in 
 the middle of the woods, having reached nowhere, because the ap- 
 propriation for that particular piece of work became suddenly ex- 
 hausted. I have seen the necessary repairs Jto an existing Gov- 
 ernment road discontinued at a critical spot for the same reason, 
 although a surplus existed after the completion of some other 
 specific work, but it could not be availed of, under the regulations 
 governing these funds. The adoption of such methods in the 
 building of roads by private capital would end inevitably in bank- 
 ruptcy and failure. And let me say here that the Alaska road 
 commission and the excellent officers and gentlemen who are 
 charged with its administration are not to blame for the unfortunate 
 conditions to which I have alluded. The people of Alaska owe a 
 great deal to the Road Commission for the zeal and efficiency it 
 has displayed and the work it has accomplished in the face of "red 
 tape" and ridiculously inadequate money appropriations. These 
 gentlemen do the best they can, but the results, nevertheless, are 
 horrible. Some of the Government roads in Alaska are a disgrace 
 to the Nation; even the Government employes themselves are 
 ashamed of them, and with a view to bringing home to Congress 
 and the people of the United States the wretched results of their 
 efforts, as compared with those achieved under a policy of enlight- 
 enment and common sense, they have inserted in some of the official 
 publications issued at Washington illustrations taken from actual 
 photographs of American and Canadian roads in Alaska, and the 
 adjoining Yukon Territory. On one page you will see the picture 
 of a beautifully smooth, well drained, level Canadian road, fit for a 
 pedestrian, an automobile, or a landau, while on the opposite page 
 you will find an illustration an American road of a streak of 
 mud, roots and rocks, unfit for the use of man, beast, or machinery, 
 and positively ruinous, alike to a man's soul and body, 
 
326 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 In the administration of justice and the building of public 
 roads and trails in the far Northwest, the Canadians have us beaten 
 to a standstill. We have just the same kind of country as they 
 have, only more of it, yet they have more people and infinitely better 
 transportation facilities on their side of the imaginary border line. 
 Why should this be ? I have given you the facts and leave the answer 
 to yourselves. I venture one reply to this question, and it is, that the 
 average member of the Canadian Parliament is in much closer touch 
 with the actual conditions^ prevailing in his country as a whole 
 even to its remotest corners than is the average member of the 
 United States Congress regarding his great country. Indeed it 
 seems as if ignorance is at the bottom of most of Alaska's troubles; 
 ignorance of its immense area; ignorance of its climate; ignorance 
 of its resources, and what is worst of all, ignorance of its people. 
 The most widespread misconceptions are probably those regarding 
 its climate and people. The generally accepted notion is that 
 Alaska is a land of perpetual ice and snow, inhabited mainly by 
 Eskimos, while the facts are that not more than one-third of it is 
 within the Arctic Circle, and that the great majority of its popu- 
 lation is white a mixture of the best elements of the Caucasian 
 race the identical class of red-corpuscled people who placed Ore- 
 gon, California and Washington among the great producing States 
 of this Nation. 
 
 Every trunk line of railroad in Alaska can be operated daily 
 ,in winter. The White Pass & Yukon Railroad runs trains 
 every day in the year except Sundays; the Copper River & 
 North Western Railroad runs trains often enough to accommodate 
 the traffic and maintains its line open the entire winter. The Alaska, 
 Northern can operate on as regular a schedule in winter as in sum- 
 mer; while the Tanama River Railroad, which is in north latitude 
 65, conducts a train service all the year round. I have already 
 intimated that the only Alaska seaports closed to navigation in 
 winter are those on Behring Sea and Cook Inlet. We have grand 
 glaciers and magnificent mountains, some of them capped with 
 perpetual snows, and in these as well as other respects Alaska pos- 
 sesses a wealth of scenic features that would turn the passenger 
 agents of some of our great American, Canadian and European 
 railways green with envy. We have also flowers and sunshine, 
 beautiful gardens and flowing hayfields, Christian churches and 
 secular schools, and such a generally salubrious climate that the 
 death-rate among the white population is the lowest in the world. 
 
TRANSPORTATION IN ALASKA 327 
 
 If we can dispel the'ignorance and disseminate the truth; if 
 we can enlighten the congressional representative from our indi- 
 vidual district, and all the other legislators with whom we come 
 in touch; if we can get these well-meaning people to understand the 
 real, actual conditions in some measure as we who live in Alaska 
 know them, I believe we can look forward hopefully to the adoption 
 of relief measures which will lead to the development of Alaska on 
 a scale commensurate with its size and the importance of its 
 potential resources. 
 
 Support of Congress Necessary. 
 
 The solution of the transportation problem will cause most of 
 our troubles to vanish, but we are not going to solve it by vituper- 
 ation and abuse, especially of the powers that be. I believe that the 
 President and the Secretary of the Interior are alive to the real 
 situation and needs of Alaska, and that they are sincere in their 
 desire to bring order and good out of the existing chaos, but they 
 and their successors in office, must be powerless without the sup- 
 port of Congress, and I think that is the real body to which we 
 must address ourselves. If we can obtain the sympathetic ear of 
 a majority in Congress, the Government may be authorized to ren- 
 der some assistance to private capital, either by way of guarantee 
 of bond interest or a land grant, or a coal grant, and thereby insure 
 the building of a great trunk line of railway from the sea to the 
 Yukon river with which to unlock this wonderful treasure box, 
 to the enrichment of the whole nation. Or, Congress may 
 decide to have the Government build and operate such a 
 line and thereby retain the key in its own hands. That it 
 will be a richly paying proposition for the owners, whoever they 
 may be, is not doubted for a moment by anyone familiar with 
 pioneer railroading in the Northwest, and particularly so in 
 Alaska under an enlightened policy of trail and wagon road 
 building, which would create feeders and great arteries of traffic 
 for the main line. 
 
 In a new country capital, for obvious reasons, expects greater 
 rewards than in older and more settled communities, and with the 
 inducements which are being constantly offered in such countries as 
 Mexico, Brazil, Argentina, Russia, China and Africa, it behooves 
 us to see that no unnecessary handicaps are placed upon capital 
 seeking investment in Alaska, and above all when such capital is 
 seeking investment in the all-important line of transportation. I 
 believe the enormously enhanced value of properties caused by the 
 building of such a line, in conjunction with a proper system of 
 
328 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 wagon roads and trails, would amply repay the Government for any 
 assistance it might render to private capital in the promotion of 
 such a laudable enterprise. On the other hand, while I am not an 
 advocate of government ownership on general principles, I have no 
 hesitation in saying that if the people of the United States were 
 to build such a trunk line system for themselves, and operate it on 
 business lines, the return on the investment would be comparable 
 only to that made in Egypt for the people of Great Britain by that 
 far-sighted statesman, Benjamin Disraeli, when he purchased for 
 the nation the shares of the Suez Canal. 
 
The High Grade Coals of Alaska. 
 
 BY WILLIAM GRIFFITH, 
 SCRANTON, PA. 
 
 As engineer and geologist we have had opportunity on two 
 separate occasions to study and report upon the economic conditions 
 affecting the coal resources of one of the principal coal fields of 
 Alaska. We now find that the people of the United States are 
 being taught erroneous, extravagant notions regarding the economic 
 value an-d extent of these fields, by the wildly exaggerated state- 
 ments and fanciful "misinformation drawn by some of the writers 
 whose articles and schemes appear from time to time in the maga- 
 zines and newspapers of the day. Therefore, we deem it a patriotic 
 duty to make the following brief, plain statements of the geological 
 conditions which control the economic value of these much talked- 
 of coal areas; this more particularly at the present time, when our 
 legislators are about to enact laws for the control and proper con- 
 servation of these important national resources and should do it 
 with accurate knowledge before them of the conditions which pre- 
 vail, in order that the laws they enact may the better fit the circum- 
 stances. 
 
 In common with all the coals of the Pacific coast, those of 
 Alaska are found among the rocks of the more recent geological 
 age, and speaking generally the coal beds which occur in sedi- 
 ments which are in the low lands near to the coast belong to the 
 grade commonly known as lignites, sub-bituminous or bituminous 
 coals. The great bulk of Alaska coal belongs to one or the other 
 of these classes of ordinary fuels. So undesirable are these low 
 grade coals for high-grade uses that the United States is com- 
 pelled to transport Pennsylvania and West Virginia coal from our 
 Eastern ports, around Cape Horn to the coaling stations on the 
 Pacific, to be used as steam coal for the United States Navy, there 
 being no high-grade fuel now available for this purpose on our 
 western coast. 
 
 As we proceed Eastward from the coast toward the moun- 
 tains (which in Alaska are nearly all of volcanic origin) the exist- 
 ing coal beds become much improved in quality, and we therefore 
 find the highest grade coals of Alaska imbedded in the sedimentary 
 strata of the mountains, close to the igneous or volcanic rocks, and 
 
330 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 the gradation of the coal from the low-grade lignite to high-grade 
 bituminous and anthracite is the direct result of the remoteness or 
 proximity of the once hot volcanic rocks, the heat from which has 
 caused more or less distillation of the volatile gases contained in 
 the once low-grade coal, thus leaving the high fixed carbon required 
 to constitute a high-grade fuel. 
 
 On the Pacific coast of the United States there are only two 
 coal fields of comparatively small extent, in which fuels of the 
 latter sort are found in quantity. Both of these are in Alaska and 
 are known as the "Matanuska field" and the "Behring River" or 
 "Katalla" field. The former contains bituminous and semi-bitu- 
 minous coking coals, with some anthracite, and is located 200 miles 
 northwest of the Katalla field, which latter is situated near the coast 
 of Controller Bay, about 100 miles southeast of Valdez, Alaska, and 
 carries in the Western part semi-bituminous and in the easterly 
 portion excellent anthracite coal. The combined areas of the two 
 fields is one or two hundred square miles. Notwithstanding the 
 superficial extent, their actual content of commercial and minable 
 coal as of present day practice is apparently limited, and the wildly 
 exaggerated statements which have been made of the quantities of 
 this high-grade fuel are probably due to lack of correct information, 
 and the resulting presumption that the mode of occurrence and con- 
 dition of the beds is similar in all points to the Eastern coal fields 
 of the United States. 
 
 Large Areas Without Minable Coal. 
 
 In Pennsylvania, West Virginia and Ohio the coal beds usually 
 occur horizontally. Each superficial acre may be expected, with a 
 reasonable degree of certainty, to carry its underlying acre of all 
 the coal beds of the measures ; and therefore a similar extent of coal 
 field in the Eastern part of the United States would carry a tre- 
 mendous quantity of minable coal. This is not true of these im- 
 portant Alaska coal fields, for as will probably be discovered later, 
 from fifty to seventy-five per cent or more of the superficial area 
 of the region probably contains no minable coal whatever, because 
 the structural geology has been so affected by the adjacent igneous 
 rocks, which are much twisted, contorted, folded and faulted on 
 account of the quakings and serious disturbances which as every- 
 one knows, are common to volcanic rocks everywhere, that the coal 
 beds contained in these adjacent sediments are likewise much dis- 
 turbed, and instead of being disposed in regular basins or in hori- 
 zontal undisturbed position in the earth, the coal beds are usually 
 found existing in monoclinal form, with steep dips, nearly vertical 
 
THE HIGH GRADE COALS OF ALASKA 331 
 
 oft-times. The coal is much crushed, due to the tremendous rock 
 pressures, and the beds are liable to much distortion and folding 
 and are very uncertain as to extent or continuity, being frequently 
 interrupted by dikes or intrusions of lava. They also carry much 
 dangerous mine gas. 
 
 All of these irregularities will render the extraction of the coal 
 very expensive, and the available quantity in a given extent of the 
 bed exceedingly uncertain and much less per unit of volume than 
 in the undisturbed eastern coal fields. 
 
 Again, the geologist finds his study of Alaskan coals rendered 
 very difficult and uncertain on account of the thick mat of Alaska 
 moss which covers the entire surface (except at those points where 
 rock exposures are caused by the erosion of the stream banks) and 
 by the lack of key rocks, or absence of similitude in the strike, dip, 
 intercollated slates of the coal beds, and the dissimilarity of the 
 overlying and underlying rocks, and the sequence of the stratifica- 
 tion, thus rendering the ^identification of the seams at different 
 localities practically impossible. The prospecting and exploitation 
 of the coal is therefore very difficult and at the present time has not 
 progressed sufficiently to warrant reliable estimates. Indeed, the 
 exposures and data from which to draw conclusions as to quantities 
 are very meager, and therefore in our opinion, at the present time 
 no well qualified, careful estimator would place the quantity of com- 
 mercially minable coal in these two fields beyond possibly 300,000,- 
 ooo tons; and even this may be far too much. Thus the combined 
 total of the present high-grade coal of Alaska, instead of being, as 
 has been often stated, far beyond the content of the Pennsylvania 
 coal fields, is only about one two-thousandth part of the commercial 
 tonnage now estimated to be contained in the anthracite fields 
 alone, to say nothing of the great additional quantities of bituminous 
 coal in that State. Pennsylvania alone actually produces nearly, if 
 not quite, as much coal every year as the combined content of these 
 two Alaska fields. 
 
 As an offset in a measure, of the above related conditions un- 
 favorable to economical mining, these coal fields are still only par- 
 tially explored, and future exploitations may lead to the discovery 
 of additional coal beds now unknown. 
 
 Good Profit Requires Large Production. 
 
 In the western part of this country most of the prospecting is 
 done by people who are more familiar with metal than with coal 
 mining, and who are accustomed to expect greater values from 
 comparatively small volumes of ore. With coal, on the contrary, 
 
332 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 great value means large quantities, and the latter requires extensive 
 and expensive mining development both inside the mines and outside, 
 and railroad transportation must be provided. Goodly profits at coal 
 mining require large production, and, therefore, until the under- 
 ground exploitation of the beds has proceeded far enough from the 
 coal miner's point of view to develope the habits of the beds at lower 
 depths with respect to their continuity, regularity, and folded or 
 crushed condition, in order to determine the probable economic 
 yield of a given coal bed, the great outlay of money required for 
 land purchases and the outside mining improvements and transpor- 
 tation should be considered a hazardous expenditure by the careful 
 investor. 
 
 In view of the foregoing, we should say that 2,000,000 tons 
 per year is a liberal average tonnage to expect from these two coal 
 areas, and at the high royalty that has been mentioned by the press 
 would have an annual value of about $1,000,000, which might per- 
 haps continue for 100 years. At four per cent the present worth 
 of such an annuity is approximately $25,000,000, without consid- 
 ering the deductions usually made to cover the ordinary uncer- 
 tainties of mining. And, therefore, in our view, the fabulous value 
 recently assigned to these Alaska fields is simply the utterance of 
 words without knowledge. 
 
 Our present laws and restrictions have evidently been formed 
 through a misconception of the conditions as well as the absolute 
 necessities of that rich district. Therefore, for the present they are 
 working an actual hold-up or estoppel to the commercial progress 
 of Alaska. What the district now requires for its development 
 more than anything else, is transportation facilities. The building 
 of railroads in Alaska means the introduction of labor-saving ma- 
 chinery, cheaper food and materials, more and cheaper labor, and a 
 general amelioration of the stern conditions which now prevail ; 
 and their introduction will immediately be followed by an outflow 
 of wealth far beyond our expectations, which will be wrought out 
 from the abundance of low-grade ores or placers, and from the 
 tailings or refuse from the rich diggings of the past years, which 
 cannot, now be profitably worked and are necessarily wasted. 
 
 Capital Abundant. 
 
 Capital is abundant, ready and anxious, but the building and 
 operation of railroads requires coal as well as dollars. The prime 
 necessity of Alaska, therefore, with respect to railroad construc- 
 tion, is the opportunity to utilise some of its dormant coal reserve, 
 not necessarily the best of it, but even the lower grades. "Any old 
 
THE HIGH GRADE COALS OF ALASKA 333 
 
 coal'' will answer where none is at present available. All Alaska coal 
 lands have been withdrawn ffom entry. Coal of all kinds is fairly 
 abundant and well distributed throughout the territory, but under 
 the present legal restrictions no man may mine it. An operator of 
 a small coal mine on Cook's Inlet was arrested for selling to other 
 than the U. S. Revenue vessels; and in some parts of the District 
 the timber is being rapidly exhausted for fuel purposes, on account 
 of the scarcity of coal. 
 
 Conservation without utilization is a wrong idea and a sprag 
 to progress. Most of the Alaska claimants are after the best coal ; 
 and therefore, in accord with the proverbial wastefulness of the 
 American people; the present aspect of the coal situation in Alaska, 
 points toward the speedy consumption of the small, high-grade part 
 of the Alaska coal and the discarding of the more plentiful supply 
 of medium and low-grade fuels. 
 
 Let our Congress, therefore, enact its new laws for the control 
 of this question with full knowledge of the situation. And if for- 
 sooth, it is proposed to control the coal industry of Alaska through 
 some sort of leasehold arrangement, let us provide a high per-ton 
 royalty for the relatively small quantity of high-grade coal we pos- 
 sess, and a lower rate for the medium and low-grade coals; thus 
 arranging the royalties, if you please, on a sliding scale in some 
 manner proportionate to the percentage of fixed carbon contained 
 in the coal ; or some similar plan which will force the conservation 
 of the very important high-grade navy fuels for the higher uses of 
 the district and the Nation, to which they are adapted, thus in a 
 measure compelling the mining of the lower-grade coals for the 
 more ordinary local purposes necessary to the development of 
 Alaska. 
 
Conservation vs. Encouragement. 
 
 MARTIN FISHBACK, 
 EL PASO, TEXAS. 
 
 Just before the assassination of that great and good man, 
 Abraham Lincoln, Schuyler Colfax left Washington to cross the 
 continent. As Mr. Lincoln bade him farewell, he said: 
 
 "I want you to make a speech for me to the miners you may 
 find on your journey. I have very large ideas of the mineral 
 wealth of our Nation. I believe it practically inexhaustible. It 
 abounds all over the Western country, from the Rocky Mountains 
 to the Pacific, and its development has scarcely commenced. 
 
 "Now the rebellion is over and we know pretty nearly the 
 amount of our national debt, the more gold and silver we mine 
 makes the payment of that debt much easier. I am going to en- 
 courage that in every way. 
 
 "We shall have hundreds of thousands of disbanded soldiers, 
 and many have feared that their return home in such great num- 
 bers might paralyze industry by suddenly furnishing a greater sup- 
 ply of laborers tfyan there will be demand for. 
 
 "I am going to try to attract them to the hidden wealth of our 
 mountain ranges, where there is room for all. Immigration, which 
 even the war has not stopped, will land upon our shores hundreds of 
 thousands more every year from overcrowded Europe. I intend 
 to point them to the gold and silver that waits for them in the West. 
 
 "Tell the miners for me that I shall promote their interest to the 
 utmost of my ability, because their prosperity is the prosperity of 
 the Nation. We shall prove in a very few years that we are indeed 
 the Treasury of the World." 
 
 This was the last message, almost the last public utterance that 
 came from the inspired lips of Mr. Lincoln. Those prophetic words, 
 uttered nearly half a century ago, still make the heart of a miner 
 glow. How different from the "encouragement" the miner and 
 prospector receives from a paternal an-d beneficent government at 
 the present time. 
 
 The purchase of Alaska is generally accredited to the far- 
 seeing enterprise of W. H. Seward, Secretary of State under Lin- 
 coln, and afterward under Andrew Johnson, but is it not possible 
 that this purchase was inspired by the wisdom of Lincoln? 
 
CONSERVATION VS. ENCOURAGEMENT 335 
 
 Anyway, on March 30, 1867, the transfer of 581,107 square 
 miles was made to the United States for the sum of $7,200,000, 
 known as Russian- America- Alaska ; on June 20, 1867-, ratifications 
 were exchanged, and the formal transfer made to Gen. Rosseau, at 
 Sitka, October 9, 1867. 
 
 At that time there was much dissatisfaction expressed all 
 over the country at this high expenditure of public money "for this 
 miserable barren waste of ice and snow," and General Sherman said, 
 in speaking of it : "Give 'em seven million dollars more to take it 
 back, and be. thankful to get off so cheap." 
 
 Forty-four years have come and gone since that time, and we 
 find that the far-seeing enterprise of Mr. Seward made no mistake ; 
 that before even one-fourth of this vast region has been even 
 partially explored, and only a few thousand acres surveyed, Alaska 
 has returned her purchase price many times over ; we find that 
 "this miserable barren waste of ice and snow" has since 1880 
 yielded a mineral production of $186,000,000, out of which $179,- 
 000,000 is represented by the value of the gold output. 
 
 Since the year 1800 about 3,000,000 square miles have been 
 added to American territory at a cost of approximately ninety 
 million dollars, all of which the output of American gold for most 
 any one year since 1900 more than paid for ; Mr. Lincoln's prophecy 
 has been well sustained. 
 
 Not so very long ago some wise wag's even attempted to create 
 an over-production-of-gold scare. We do not hear any more about 
 it now. Why? Simply because the rapid increase in the produc- 
 tion of gold and silver of a few years ago has ceased. It is a safe 
 prediction that in a very few years more the pendulum will swing 
 in the opposite direction, at least so far as the United States is con- 
 cerned under the present system of "conservation, reservation and 
 withdrawals," or whatever name one chooses to call it by. 
 
 The present standard of the gold and silver production in 
 America is kept up and maintained by improved metallurgical meth- 
 ods applied to low-grade ores and dumps at old mines which were 
 previously considered unprofitable, and not by virtue of any new 
 discoveries. By a little mental figuring it is not hard to see the 
 "beginning of the end" of the large gold and silver output in this 
 country, if the Government persists in "conserving" the unex- 
 plored mineral districts for some distant future generation. 
 
 Of course, we are told that it is far from being the intention 
 of prohibiting "legitimate settling and prospecting" ; contrariwise, 
 the Government's desire is to encourage it, and all that sort of stuff ; 
 
336 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 but the fact remains that all prospecting and exploring has prac- 
 tically ceased throughout the entire mountain regions of the West; 
 the oldtime,- hardy, intrepid and intelligent prospector has been 
 driven out of the field. If you ask him why, he will likely tell you 
 that he does not propose to be bulldozed by some impertinent forest 
 ranger, who knows less about minerals than the horse he rides, nor 
 take dictations from him as to where he may or may not prospect. 
 
 Forest reserves over mineral areas the prospector does not 
 object to; the average prospector has more regard for the timber 
 on his claim than the Government itself; he is a conservationist by 
 instinct; what he does object to are the intolerable restrictions to 
 which he is subjected, and he has quit the field in disgust. 
 
 There is something radically wrong with the system as now 
 in practice, especially with reference to the unexplored mineral 
 areas in the Western States. In a very few years this unwise 
 policy will be ''brought back" with a vengeance if it continues along 
 the same groove. 
 
 Would it not be far better to leave each State to work out its 
 own "conservation" to suit its own peculiar needs? Anyway, en- 
 courage and protect the pioneer settler and prospector. 
 
Coal and Transportation in Alaska. 
 
 BY MAURICE D. LEEHEY, 
 SKATTLE, WASHINGTON. 
 
 We are pleased to note during the past year a deeper interest 
 in the affairs of Alaska throughout the United States. Much that 
 has been published is misinformation. Some half-truths have been 
 told, and these usually constitute the most dangerous falsehoods. 
 On the other hand much truth has been elucidated, and the aroused 
 interest and the resultant agitation must lead to a better understand- 
 ing. The Alaskans are Americans. Practically all of them came 
 directly from the states, and every state in our union is represented 
 in Alaska by some of her most enterprising sons and bravest daugh- 
 ters. Consequently, the Alaska people are patrotic, and they have 
 exercised for years a patient, philosophical patriotism, because they 
 have confidence in the honesty of the American people, and know 
 that when the American people are fully and correctly informed 
 justice will be done. 
 
 The Honorable Walter L. Fisher, Secretary of the Interior, ac- 
 companied by Dr. Alfred H. Brooks, of the U. S. Geological Sur- 
 vey, and Dr. Joseph A. Holmes, Director of the Bureau of Mines, 
 visited the principal ports of Southern Alaska last August, and 
 made such an investigation of conditions as the limited time would 
 permit. Secretary Fisher impressed all with his ability and sin- 
 cerity. His pleasing democratic manner made friends of all 
 Alaskans whom he met. However, Alaska has had several visits of 
 cabinet officers and congressional committees during- the past few 
 years without visible results. The Administration has for several 
 years recommended legislation with reference to Alaska without 
 visible results. In the meantime laws applicable to Alaska have 
 been suspended by the withdrawal of public lands from entry: 
 Naturally, Alaskans are' disposed to criticize the Administration 
 quite as much for its failure to proceed under existing laws as 
 to blame Congress for the failure to enact new legislation. It is 
 popularly understood that the coal question is the most important 
 problem in Alaska. This is not entirely true. The great problem 
 is that of transportation, and the coal question is chiefly important 
 for its bearing upon transportation. ^Alaska requires railroads to the 
 interior, and it is manifest that these railroads will not be built until 
 the Alaska coal is placed upon the market. 
 
338 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Coal was mined in Alaska by the Russians long years ago, prob- 
 ably soon after the settlement of Sitka and Kodiak, the oldest 
 towns on the Pacific coast of America, whence supplies were 
 shipped to California and along the Pacific coast before San Fran- 
 cisco, San Diego or Seattle were founded. These Russian coal 
 mines, though, never became of commercial importance, and our 
 American people paid no attention to Alaska coal until after the 
 gold rush to Cook Inlet in 1896 and to the Klondyke still later. 
 
 The general coal land laws of the United States were ex- 
 tended to Alaska on June 6, 1900. Prior to that time attempts were 
 made to locate coal lands in Alaska, but there was no law per- 
 mitting the same, and even the general coal land act of 1873 has 
 been inoperative because it applies only to surveyed land, and the 
 public surveys have not been extended to Alaska. After another 
 delay of four years, Congress passed the act of 1904, which pro- 
 vides for coal land locations by private surveys. Such legislation 
 was urged on Congress by the President's message. Congress 
 acted, and on April 26, 1904, the President approved the law now 
 in force permitting individual entries of 160 acres of coal land to 
 be designated by private surveys at the expense of the applicant. 
 About i ,000 coal claims were located under this act. Some 300 
 of these have been surveyed at the sole expense of the claimants 
 who have also paid into the United States Treasury nearly $400,000, 
 but so far not a single patent has been issued. It has been charged 
 that most of those claims are invalid. We presume that only the 
 officials of the general land office have sufficient knowledge to 
 speak of all entries, but we do know of certain claims which are 
 entirely valid, made in strict compliance with the law, and which 
 should have been patented years ago. We know of men who went 
 into both the Katalla and Matanuska regions and spent their time 
 and money in the utmost good faith, strictly complying with the 
 law in its every detail. Indeed, some of these men have actually 
 lived upon their claims -during all these weary years of waiting. 
 Such applications there are which have been pending for four 
 years and more, and yet no action has been taken, no charges filed, 
 and in some cases not even the slightest suggestion of an irregu- 
 larity has been made, although during all of these years a score of 
 field agents have been at work, interviewing claimants and other 
 persons who might have some knowledge, and employing every 
 means of a skilled detective force to ascertain possible fraud or 
 irregularities. 
 
COAL AND TRANSPORTATION IN ALASKA 339 
 
 Has this long delay been caused by a gigantic conspiracy to 
 unlawfully acquire and monopolize the Alaska coal fields? Or, was 
 it caused by another conspiracy, which has for its object the nulli- 
 fication of the laws solemnly passed by Congress, and the substitu- 
 tion of a leasing system in the Alaska coal fields, without any 
 regard to the rights of those people who proceeded in good faith 
 according to law? 
 
 Why the Delay f 
 
 Thirty-one months after President Roosevelt signed the act of 
 April 28, 1904, that same President issued an executive order with- 
 drawing all these coal lands from entry. The executive order 
 nullified the act of Congress. The order was so sweeping as to 
 even suspend action upon claims already filed, and the register and 
 receiver were thus compelled to refuse to file notices of locations 
 made even prior to the withdrawal. Some months later the order 
 was modified so as to permit action upon existing entries. It was 
 admitted that patents should issue to valid claims located between 
 April 28, 1904, and November 12, 1906, but so far all that has 
 been done is to file charges against certain claimants, which charges 
 have resulted in an order for the cancellation of one group. But, 
 we repeat, there are many applications which remain pending after 
 all these years without any action, not even charges filed or sug- 
 gested. Why this long delay ? Surely the illegal acts of one should 
 not entirely prevent action upon the claims of another against whom 
 no charges have even been made. Rather was not this delay caused 
 and is it not continued, in furtherance of another conspiracy to 
 force a leasing system upon the Alaska fields. 
 
 This situation is the more aggravating because most of these 
 particular claimants have agreed to accept patents under the limita- 
 tions of the act of May 28, 1906. This act applies only to claims 
 located prior to November 12, 1906, the date of the President's 
 withdrawal. This later act permits the consolidation of such claims 
 in groups of not to exceed 2,560 acres, and was intended to cure 
 defects which might have resulted from the location of a group 
 of claims in common, or with intention to combine after obtaining 
 patents. It is manifest that a coal mine cannot be operated upon 
 160 acres. Consequently, many of these claims have located in 
 groups by men represented perhaps by the same agent, and to some 
 extent acting jointly, each individual however locating one claim 
 and holding it independently, but having in mind possibly that 
 some plan of joint action might be adopted after the issuance of 
 patents. Congress intended to validate any irregularities in such 
 
340 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 locations, but imposed severe conditions, as will be noted by Sec- 
 tion 3 of the act of 1908, which reads as follows : 
 
 "That if any of the lands or deposits purchased under the pro- 
 visions of this Act shall be owned, leased, trusteed, possessed, 
 or controlled by any device, permanently, temporarily, directly, 
 indirectly, tacitly, or in any manner whatsoever so that they form part 
 of, or in any way effect any combination, or are in anywise controlled 
 by any combination in the form of an unlawful trust, or form the sub- 
 ject of any contract or conspiracy in restraint of trade in the mining 
 or selling of coal, or of any holding of such lands by any individual, 
 partnership, association, corporation, mortgage, stock ownership, or 
 control, in excess of two thousand five hundred and sixty acres in the 
 district of Alaska, the title thereto shall be forfeited to the United 
 States by proceedings instituted by the Attorney General of the United 
 States in the courts for that purpose." 
 
 This is certainly the most stringent anti-monopoly clause pos- 
 sible to frame in the English language. But three and one-half 
 years more have passed since this drastic legislation, and still no 
 action has been taken. Is such departmental inaction but the re- 
 flection of public sentiment? Perhaps it is. Perhaps it but ex- 
 presses a conviction of the American people that the public land 
 system which gave the great West the most splendid development 
 in the history of the world, cannot now be extended to Alaska ; that 
 the enactment by Congress to do so was a mistake for which the 
 honest coal claimants in Alaska must suffer, and those who took 
 their little all of health and goods into Alaska, in full confidence that 
 the laws of the United States would be enforced, must suffer loss 
 because they had too much faith in the integrity of our Govern- 
 ment. Be that as it may, it is unquestionably a fact that had the 
 same policy been pursued in the early settlement of the middle 
 West that is now being pursued toward Alaska, the buffalo would 
 still be king of the plains. Chicago would still be a frontier town, 
 Kansas City would be a mere trading post at the edge of the great 
 American desert, and the now splendid cities of Denver and Minne- 
 apolis would not even be names upon the map. 
 
 Danger of Monopoly Exaggerated. 
 
 Alaskans are in full sympathy with the desire of the people 
 of the United States that the great coal fields of Alaska shall not 
 pass into into the hands of a private monopoly; to be exploited 
 solely for private gain. We believe, though, the danger of such 
 a monopoly in Alaska has been greatly exaggerated. In fact, we 
 who know conditions in Alaska, are convinced that such a monopoly 
 cannot arise under existing laws, if properly enforced. We are also 
 interested in the men who discovered these coal fields and revealed 
 their wealth to the Nation, and in those men who spent their time 
 and money to develop and prove the wealth of these fields. We 
 
COAL AND TRANSPORTATION IN - ALASKA 341 
 
 understand that the act of 1904 was an offer by the Government, 
 and its acceptance by the bona fide locator constitutes a contract 
 between him and the Government, and we are confident that the 
 American people, who are fair and honest when correctly informed, 
 will insist that the contract be kept. 
 
 We deplore the delay which has operated so much to our dis- 
 advantage, caused financial loss to many honest men and women 
 who invested perhaps all they had in money, labor, health and enter- 
 prise, and gave several of the best years of their liyes, relying on 
 this contract with the United States. We r*efer not only to the 
 honest coal claimants, but still more especially to the far more 
 numerous band of hardy, enterprising people who went into Alaska, 
 and iiave no direct interest in the coal fields, but engaged in various 
 other lines of business, relying on the opening of these coal fields, 
 and upon the building of railroads and smelters, to which the use 
 of this coal is an absolute essential. It is in this way that the great 
 loss to Alaska and Alaskans has really been suffered. Our appeal 
 is for justice, not merely to the honest coal claimants, however few 
 they may be, but also, and more especially, to that vast body of 
 Alaskan pioneers who invested all of their time and money, labor 
 and sacrifice, enterprise and energy, in trusting confidence that the 
 law of 1904 would be fairly executed. Those pioneers are indeed 
 the same honest, rugged, sturdy men and women who conquered 
 the West, who opened the coal fields and iron mines of Pennsyl- 
 vania and Ohio, who converted the prairies of the Mississippi val- 
 ley into a blooming garden, who have conquered the plains and 
 tunneled the mountains and made the great Northwest yield up its 
 treasure of mine and field. These same men have gone into Alaska 
 and endured the hardships and privations of the northland in an 
 effort to open up that country in whose resources they have such 
 abundant confidence. Some of them found their last resting place 
 beneath the northern lights ; many of them have left Alaska dis- 
 appointed and disheartened, broken in health and spirit, while 
 others still remain in the desperate struggle, many of them simply 
 because they are unable to get away. It is difficult to picture the 
 condition of these disappointed people along the Alaska coast, and 
 we shall not attempt it, because we cannot do the subject justice in 
 the first place, and our picture would be deemed overdrawn if we 
 correctly portrayed it. These men have seen public officials, sena- 
 tors, congressmen and cabinet officers, visit Alaska and depart much 
 impressed, but no results followed their visit. Consequently, it is 
 not strange that many of those who welcomed Secretary Fisher to 
 
342 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Alaska on his recent trip, expressed doubt as to whether results 
 would follow it. 
 
 We have full confidence in the earnestness and sincerity of the 
 able Secretary of the Interior. His work is of the constructive type, 
 and we feel that results will follow his visit. He made it quite 
 clear to the people, however, that the Alaska coal fields will not 
 be opened under the existing laws, because, four-fifths of the 
 American people have evidently become satisfied that the existing 
 laws are inadequate, and that some other scheme must be adopted 
 for Alaska. Naturally, we feel that Alaska should not be made an 
 experiment station for new ideas. At least, not upon this coal 
 question, which is so important to the people of Alaska, and yet so 
 trifling in its relation to the great public question as to the future 
 disposition of coal lands upon our public domain. 
 Mines at Tidewater. 
 
 We say coal is important to Alaska because it is necessary to 
 transportation, which, after all, is the great need of Alaska. Stop 
 to think of it, there has never been a producing mine at tidewater on 
 the face of the earth, except in Alaska, while nearly all of the 
 producing mines of Alaska are located at tidewater, where a ship 
 may load ore from the bunkers. Alaska has yielded some $200,- 
 000,000 in precious metals, practically every bit of which has been 
 taken from places within sight of the smoke of a steamboat, in- 
 cluding, of course, the placers along the Yukon River and its 
 tributaries. We know of mineral deposits of fabulous wealth in 
 the interior, immense areas of low-grade placers, rich gold quartz, 
 and mines of native copper, but today they are as useless to us as if 
 hidden in the chasms of the moon. Transportation is required, rail- 
 roads must be built, but this cannot be done without Alaska coal. 
 On the other hand, it is doubtful if there is a market for much 
 Alaska coal outside of Alaska. Eastern people and those of the 
 middle West do not appreciate that there is plenty of coal on the 
 Pacific coast, much more accessibly located than that of Alaska, 
 besides fuel oil in abundance, and the most marvelous hydro-electric 
 power in the world. Even in Alaska the Treadwell mines and the 
 Copper River Railroad are being operated by California fuel oil, 
 and it is evident that Alaska steaming coal has little demand upon 
 the Pacific coast of the United States in the face of such compe- 
 tition. A market will ultimately be made for some Alaska anthra- 
 cite, and the Alaska coking coal will be of great importance, espe- 
 cially in the treatment of the low-grade copper ore along the Alaska 
 Coast. The United States Navy, which is now importing coal from 
 
COAL AND TRANSPORTATION IN ALASKA 343 
 
 West Virginia, might save the price of a battleship in a few years 
 by using Alaska coal, but the Alaska fields really have little bearing 
 upon the great question as to the future policy for the disposition 
 of coal lands upon the public domain of the United States. 
 
 We accept the notice, however, that some new system must be 
 adopted in Alaska, and consequently, your committee has given this 
 subject mature consideration. Two methods have been suggested: 
 one a leasing system, and the other, Government operation of the 
 coal mines. 
 
 Any system for placing Alaska coal on the market must take 
 the element of transportation into careful consideration, and the 
 physical condition and situation of these properties should be 
 understood in that connection. The two principal fields are the 
 Bering river and the Matanuska. The Bering river is also com- 
 monly known as the Katalla field, as it is near that town. A few 
 years ago the Alaska syndicate began the construction of a break- 
 water at Katalla with the idea of developing a harbor there, but 
 later abandoned the project, and moved its terminals to Cordova, 
 a point on Prince Williams Sound, from which the Copper River & 
 Northwestern Railroad has been built easterly across the Copper 
 river delta and thence up that valley to the Bonanza copper mine. 
 A branch line could be built from this road so as to make ,a total 
 haul of about 85 miles from the center of these fields across the 
 Copper river delta to Cordova. Much has been said recently con- 
 cerning the merits of Controller bay as a harbor for the Katalla 
 fields. Controller bay is situated about 15 miles from the coal, or 
 about 25 miles from the center of the field, and has the advantage 
 of distance and easy grade. The Government charts show a suffi- 
 cient depth of water in Controller bay, but the navigable channel is 
 small and can be reached only by building several miles of trestle, 
 over the mud flats. These trestles with bunkers, wharves 
 and terminal facilities at deep water, will be expensive to 
 construct and still more expensive to maintain, because of the diffi- 
 culty with ice coming out of the rivers each spring. Then, too, the 
 harbor is only partially protected and is exposed to some of the 
 most dangerous windstorms that visit the Alaska coast. The 
 Alaska syndicate, financed by J. P. Morgan & Co. and Guggenheim 
 & Sons, carefully investigated both Controller bay and Katalla, 
 and spent perhaps more than a million dollars at the latter place, 
 but finally abandoned both places for Cordova. There is no doubt 
 that Controller bay is available as a harbor for some portions of the 
 year, but there is no danger of a monopoly there for any one of its 
 
344 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 several miles of mud flats is just as valuable as another, and we 
 regard the judgment of the Alaska syndicate as expressing the 
 general opinion of all people familiar with the Alaska coast. 
 
 The Matanuska coal field can be reached from Seward, on 
 Resurrection bay, an ideal land-locked harbor, equal to any on the 
 Pacific coast. The coal measures in the Katalla field are much 
 broken, and require extensive development work to determine the 
 most economical manner of mining the coal. The Matanuska coal 
 fields are reported to be less broken but have the disadvantage of a 
 longer haul. Transportation must be provided to each field, and 
 this includes wharves, bunkers and terminal facilities, which must 
 be built under the conditions prevailing along the Alaska coast. 
 These items must be considered in our study of any system for 
 the opening of the coal fields. 
 
 Application of Leasing System to Alaska. 
 
 A leasing system has been suggested and vigorously advo- 
 cated. Your committee does not believe that any of the proposed 
 leasing systems are favorable. We will not discuss the argument 
 made against the leasing system by those who opposed its adoption 
 in the United States. We will disregard the failure of the leasing 
 system during the 40 years it was tried in the lead mines of Indiana 
 and Illinois and the copper mines of Michigan, and will consider 
 it only in its application to Alaska. The question arises, who will 
 provide the transportation, wharves, bunkers and terminal facilities 
 for the lessee ? Capital must be procured, and hence capital must be 
 assured security and a reasonable profit on the investment. Can 
 anyone enter these fields upon the leasing system except aggrega- 
 tions of great wealth? We believe not. The system of private 
 ownership enables the owner of the ground to secure capital upon 
 the security of his title, but can this capital be obtained upon 
 the securities of a mere lessee ? This is manifestly impossible unless 
 the lease be very liberal in area and terms. The lease must be so 
 liberal in this respect as to justify a large investment of money, 
 not only in the development of the mine, but for the building of rail- 
 roads, bunkers, wharves and the construction of colliers or ocean- 
 going steamers. We believe that any lease so liberal as this will 
 create a monopoly in the Alaska coal fields far more dangerous 
 than is possible under any system of "private exploitation." Per- 
 haps the Alaska syndicate, with its railroad already built from 
 Cordova to the east side of Copper river, can afford to build a 
 branch of forty miles from there into the Katalla field, but if so, 
 will there be any competition in transportation? Will any com- 
 
COAL AND TRANSPORTATION IN ALASKA 345 
 
 pany be justified in building a breakwater at Katalla or another rail- 
 road from Controller bay into these fields, and provide bunker 
 and terminal facilities with several miles of trestle over the mud 
 flats to be maintained under such adverse conditions for operation 
 during a portion of the year, and undertake all of this simply upon 
 a lease? We do not believe capital can be found to engage in so 
 hazardous an enterprise, unless, as we repeat, that the lease be 
 exceedingly liberal in both area and terms, so liberal in fact, as to 
 be more dangerous than any system of private ownership. 
 
 On the other hand, we believe that if patents were issued to the 
 bona fide claimants, to those men who accepted the invitation of the 
 Government and fully complied with its laws, we believe that if this 
 were done, sufficient lands would be patented to encourage the build- 
 ing of railroads from points on Controller bay or near Katalla 
 where a breakwater is possible, but it is the opinion of your com- 
 mittee that, if the leasing system be applied, the transportation will 
 be in the control of one company. We regard as somewhat signifi- 
 cant the advocacy of the leasing system by George W. Perkins, who 
 says he bases his information upon investigations made during his 
 visit to Alaska in 1909, while he was a partner in the house of J. P. 
 Morgan & Co. and went to Alaska to inspect the properties of the 
 Alaska syndicate. Your committee has only words of commenda- 
 tion for the enterprise of the Alaska syndicate, and believes it 
 should be afforded every opportunity to realize handsomely on the 
 investment of its millions for the devejopment of the Territory of 
 Alaska, but these remarks are addressed to the popularly expressed 
 fear that this syndicate will control Alaska. We do not charge it 
 with such designs, but we do believe that it will be much easier 
 for the creation of a monopoly in the Alaska coal fields under a 
 leasing system than upon a system of private ownership with the op- 
 portunities of the latter for competition and individual initiation. 
 The same conditions apply to the Matanuska field. A railroad has 
 already been built 71 miles in that direction from Seward, but con- 
 struction work has been suspended ever since the withdrawal of the 
 Alaska coal lands. The Matanuska coal field is the objective point 
 of that railroad. If we assume that it is built to the Matanuska 
 field, there to serve the lessees of coal lands, it will not require much 
 effort of imagination to picture the possibility of favoritism and the 
 creation of a monopoly in those fields. It is true that the Govern- 
 ment may regulate railroad rates, but will competing lessees be sat- 
 isfied that necessary branches or spurs will be built to connect their 
 mines, and that cars will be provided when necessary? 
 
346 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 We are also opposed to making of Alaska the experiment sta- 
 tion for new ideas. We are unable to find where the leasing system 
 has ever been successful in the operation of coal fields under any 
 Government. Leasing is perhaps successful to some extent in the 
 coal mines of Pennsylvania, where a market is near at hand and 
 transportation is well provided, frequently by competing lines, and 
 the leases are from individuals. It is not a Government leasing 
 system. 
 
 Leasing Systems in Other Countries. 
 
 It has been said that the leasing system works well in British 
 Columbia, Yukon territory, and in Australia and New Zealand. 
 We can only repeat the statement that a half-truth is frequently 
 the most dangerous and misleading falsehood. The system in 
 British Columbia is in no sense a leasing system as is proposed in the 
 United States. The lessee in British Columbia may obtain a lease 
 of sixty-four hundred acres for five years, with a renewal for three 
 years, but is privileged at any time during the lease, or within three 
 months thereafter, to purchase the lands at $20 per acre. It is a 
 significant fact, too, that no mines are operated in British Columbia 
 under the leasing system. All are operating upon granted lands. 
 There is a law for leasing the coal lands in the Yukon territory. 
 The only attempts ever made to operate under that law resulted in 
 failures. There is not a single coal mine operated in the Yukon 
 territory upon a lease from the Government. In a similar man- 
 ner the laws of Australia and New Zealand provide for private own- 
 ership at the option of the lessee. It is reported that much coal is 
 mined there under a leasing system, but that is because the operators 
 do not find it necessary to exercise the option given them to pur- 
 chase the land. They are given that option, however, and are thus 
 afforded the security of private ownership whenever they see fit to 
 exercise the privilege. No such system has been proposed for 
 Alaska. None of the leasing bills introduced in Congress permit 
 the lessee ever to acquire title to the land. The Robinson bill now 
 pending before Congress even provides for only a portion of the 
 royalty upon coal mines in Alaska to be expended in the territory, 
 and the balance is to be turned into the treasury of the United 
 States. It is a rank injustic to compel the residents of Alaska to 
 pay a royalty into the treasury of the Unite'd States upon the coal 
 they consume. Why not a similar royalty from the consumers of 
 coal elsewhere? The consumers of Pennsylvania coal would object 
 to paying such a royalty to the Federal Government, and the con- 
 sumers in Alaska are entitled to urge the same objections. 
 
COAL AND TRANSPORTATION IN ALASKA 347 
 
 Poor old Alaska has surely had quite enough of the leasing 
 system. It was leased by Russia from 1799 unt ^ l $&7 to the 
 Russian-American Company. That company was the absolute lord 
 and master, and its leasehold sovereignty absolutely prevented devel- 
 opment. Fortunately nobody was lured there under false promises. 
 Only those went there who did so for the Russian-American Com- 
 pany. A leasing system was not inflicted upon honest, hardy 
 pioneers as is now proposed by the American Government. For- 
 tunately for the United States, Alaska was not colonized or settled 
 by the Russians. Their leasing system prevented it. Otherwise 
 the Russian people would have so well developed Alaska by 1867 
 that the United States could not have bought it for two cents an acre, 
 with its wonderful fisheries and a fur seal herd of 6,000,000 thrown 
 into the bargain. The first thing we did, however, was to lease that 
 seal herd to a company which in forty years made a net profit of 
 $5>738,ooo and depleted the herd to about 75,000. In the meantime, 
 the United States Government spent more money in patroling the 
 seal islands than it obtained from royalties on the lease, and Alaska 
 got absolutely nothing, not a cent in taxation, not a lighthouse-, not 
 a schoolhouse, not as much as a flagpole. Now, the United States 
 Government has gone into the sealing business itself, and has already 
 begun to make a profit. But this kind of talk may lead us to advo- 
 cate the building of railroads in Alaska and the operation of coal 
 mines there by the Government. 
 
 The continued withdrawal of the Alaska coal lands from the 
 operation of existing laws is doubtless an expression of public senti- 
 ment throughout the states. We desire something done and we 
 believe the American people desire something done to make the 
 Alaska coal immediately available, but above all, and first of all, 
 transportation is absolutely necessary. The withdrawal of the 
 coal lands, whether wise or otherwise, is solely responsible for the 
 interruption of railway building in Alaska. If the Government will 
 not enforce existing laws, if the present, inaction is to continue 
 in the Alaska coal field, or if some new system is to be tried there, 
 then the Government of the United States should either build rail- 
 roads in Alaska or guarantee the railroad bonds for a private 
 enterprise. 
 
 Government Should Proznde Railroads. 
 
 The Government should provide railroads in Alaska. There 
 is ample reason for doing so entirely independent of the coal ques- 
 tion. After all, the coal is important principally in its bearing upon 
 transportation. If the Government controls the transportation of 
 
348 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 the Alaska coal from mines to market, or at least from mines to sea- 
 board where steamship competition will be possible, then the Gov- 
 ernment can most effectually prevent any monopoly in the Alaska 
 coal fields. Indeed, a reasonable leasing system might be then 
 feasible, but not otherwise. If the Government will provide the rail- 
 ways, bunkers and terminal facilities, and thus assure transporta-* 
 tion at fair rates from mines to market, capital might be justified in 
 mining some Alaska coal upon a leasing system. We repeat, that 
 sound reasons exist for Government construction of, or aid to, rail- 
 roads in Alaska, entirely independent of the coal question, and this 
 brings us to the consideration of the greater problem of the develop- 
 ment of Alaska. 
 
 The future of Alaska depends upon the development of the 
 gold and copper mines and the low-grade placers of the great in- 
 terior, and the agricultural development of the valleys which is 
 sure to follow. These portions of Alaska are in the same latitude as 
 Norway, Sweden and Finland. The cities of Seward and Cor- 
 dova in Alaska, Christiana in Norway, Stockholm in Sweden an<l 
 St. Petersburg in Russia, are within a few miles of the same paral- 
 lel of latitude. The agricultural areas are as much larger and will 
 become as much more important than the combined agricultural 
 areas of Norway, Sweden, Finland and Northern Russia as the 
 Japan current in the Pacific is larger and more influential than the 
 gulf stream in the Atlantic. However, transportation must be 
 provided before these agricultural valleys can be settled, and the 
 farmers must be encouraged by the local market which will be 
 afforded by the development of her mines. The Government should 
 build railroads more cheaply for it can sell its, 3% bonds at par, 
 while a private corporation must sell its 5% or 6% bonds at a dis- 
 count. The private corporation must at least earn its fixed charges, 
 while the Government can afford to make lower rates and even 
 operate at a loss during a few years to encourage the great de- 
 velopment which will follow and which will more than justify 
 the investment. Then, too, development will proceed more rapidly 
 ahead of railway construction by the Government whenever a route 
 has been selected. Capital can then be induced to immediately be- 
 gin the development of mines in the interior, and homesteaders will 
 settle in advance of the construction of such mines, because of the 
 assurance of the Government that the road will be built, while in 
 the case of private corporations, with the long record of receiver- 
 ships which have attended such pioneer railroads, both in> the 
 United States and Alaska, it will be necessary to see the smoke of 
 
COAL AND TRANSPORTATION IN ALASKA 349 
 
 the engine along the route before capital will be justified in making 
 any heavy expenditures in the development of the interior. Rail- 
 roads built in Alaska, and gradually extended from year to year, 
 will shorten each year the whiter routes to the interior and on to 
 Nome, and will justify the construction of road houses an-d even 
 villages along the line of such route, affording inns for the trav- 
 eler, and providing a development in advance of railway construc- 
 tion which will make the transportation routes the more quickly 
 profitable. 
 
 Coke Supply Important. 
 
 Another item of immense importance is the assurance of an 
 adequate supply of coke at a reasonable cost. Smelters and matting 
 plants would then be built along the Alaska coast for the treatment 
 of low-grade copper ores, which really have more metal contents 
 than the low-grade copper ores of Montana and other states. 
 These ores exist in infinite variety all along the Alaska coast. De- 
 sirable blends of ore can be brought together at different places 
 and a copper matte produced that will stand shipment around the 
 world, if only an assured supply of coke be provided at a reasonable 
 price. The smelter at Hadley, Alaska, paid from $22 to $30 a ton 
 for coke, and even then operated successfully while copper was 
 commanding upwards of 15 cents. With Alaska coke at $8 per ton, 
 the operation of such a smelter would be possible, even at the pres- 
 ent low price of copper. Only the Government can give a satisfac- 
 tory assurance of such a supply of coke at a fixed reasonable price. 
 
 We view with favor the agitation for Government aid in some 
 form for railroads in Alaska. We note with satisfaction the in- 
 terest which has been aroused in the Alaska question. It leads us 
 to take a more optimistic view as to the possibilities of the. imme- 
 diate future. We believe that the system of private ownership which 
 encouraged individual initiation, and gave the great West such a 
 magnificent growth and development as was never equaled else- 
 where in the history of the world, should not be lightly cast aside 
 for new experiments in Alaska, in that land of distance and diffi- 
 culties, and under conditions where large rewards must be offered 
 both to capital and labor. But we realize the sentiment of the 
 American people, and in deference to that sentiment we earnestly 
 recommend that Government aid be extended to transportation in 
 Alaska, either by the direct construction of railroads by the Gov- 
 ernment, or by guaranty of the securities of private railroads to be 
 operated under reasonable Government control. With such a sys- 
 tem provided, we believe it matters little whether the coal be mined 
 
350 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 by the Government or by private interest upon a leasing system or 
 otherwise. 
 
 There still remains the element of justice to those men who are 
 entitled to patents under existing laws. Their rights should be 
 speedily determined. This is but simple justice to them and the 
 other people who have invested their money in good faith relying 
 upon the promise of this great Government contained in its land 
 laws, and believing that such laws would be equitably enforced. 
 
 Indeed it will be necessary to determine the right of existing 
 claimants before the coal lands, in the Katalla field at least, will 
 be available for the operation of any other system, for manifestly, 
 nothing can be done upon the lands heretofore located until the 
 rights of the present locators have been determined. 
 
 Alaskans have a common interest with the mining men of the 
 states in all that pertains to the industry, and are in full sympathy 
 with the splendid work of the American Mining Congress, but we 
 have seen fit to discuss only the coal and transportation questions 
 which are so vital to Alaska and the entire Pacific coast, both in 
 principle and economics. 
 
The Alaskan Coal Situation. 
 
 BY FALCON JOSLIN, 
 FAIRBANKS, ALASKA. 
 
 The Alaska coal situation and things in relation to the govern- 
 ment of Alaska, seem at this time to be one of the most vital sub- 
 jects that the American people are considering. All over the United 
 States this subject is holding the attention of the American people, 
 and I firmly believe most properly. When the people understand 
 the situation I believe that it will be properly and justly solved. 
 Our great difficulty is to get a fair understanding. The Alaska coal 
 question is now considered to be a most tangled and difficult sub- 
 ject, and yet, gentlemen, I think the problems are comparatively 
 simple. Everything that is not understood is obscure, and complex, 
 and difficult, but when understood it becomes plain and definite. 
 
 I live in Fairbanks, Alaska. It is nearly 5,000 miles from Wash- 
 ington city. I have recently traveled from there here, and it took 
 me 25 days to reach Seattle, the nearest American port from Fair- 
 banks. I could have gone from Washington city to St. Petersburg 
 and back in less time and with a great deal more comfort. That 
 is significant only because it shows how extremely bad our trans- 
 portation is; how remote the country is, and therefore the great 
 difficulty of getting a correct knowledge of what it needs. I have 
 been in Alaska and in the Yukon territory adjoining it for some 
 fourteen years. In the Yukon territory I was foolish enough to 
 undertake to develop a coal mine. I bought from the Canadian 
 Government 400 acres of coal land at the price of $10 an acre, the 
 same price that the Government fixed upon the Alaskan coal lands. 
 I tried to buy something like 1,000 acres more because when you 
 undertake to open a coal mine you have got to have a big tract ; your 
 investment is heavy. I was not able to buy the additional thousand 
 acres, because about that time the government in Canada hit upon 
 the theory of leasing the coal lands, as we are now considering here. 
 Though my application to purchase had been filed, it was treated as 
 not a vested right, and it was required that I should take a lease of 
 the land. Having already started the enterprise and having in- 
 vested too large an amount to draw out,' I was obliged to take the 
 lease and did take it. I believe that is the only lease that has ever 
 been granted in the Yukon territory of Canada to this dav. T would 
 
352 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 not have taken it, nor any man associated with me would have con- 
 sidered it for a moment, except under practical compulsion. Yet 
 the coal leasing law of the Yukon is cited as an example to be fol- 
 lowed in Alaska. 
 
 The leasing law of the Yukon is liberal, compared with the 
 leasing bills for Alaska that have been introduced in Congress, but 
 it certainly cannot be cited to prove the value of a leasing system. 
 In order to illustrate the working of the coal land law in Alaska, I 
 will relate my own experience with it. 
 
 Beginning in 1905, I have built in the interior of Alaska at Fair- 
 banks, a narrow-gauge railroad about 45 miles long, extending from 
 the Tanana river to the gold mines adjacent. I may say there is 
 practically no development anywhere in that territory except within 
 30 to 50 miles of the rivers or the sea coast. Because there is no 
 transportation, ninety per cent of the territory is absolutely inac- 
 cessible. Until better transportation than that can be provided by 
 the rivers and by the sea coast, the country will still remain unde- 
 veloped. 
 
 ' Vast Coal Field in Tanana Valley. 
 
 There is a great coal field in the Tanana valley, some 50 miles 
 south of Fairbanks. It is an enormous coal field both in area and 
 the thickness of seams. There are coal veins that are exposed 50 
 to loo feet thick, six or seven successive veins, one above the other. 
 They don't require any exploring whatever. You can look at them 
 and see coal enough to supply many times more than the community 
 could use in years. This coal was discovered fifteen years or more 
 ago, but of course cannot be used until a railroad is built to it. That 
 coal field lies across the river from Fairbanks to the south about 
 50 miles, the nearest point to us. To reach it we should have to 
 cross the river and build about 50 miles of railroad. Four or five 
 years ago a prospector came into my office and said that he had 
 discovered some coal on the north bank of the river and within 
 thirty miles of Fairbanks ; that it could be easily mined and carried 
 down to the town in barges ; and that it lay so close to the bank of 
 the* river that it would be immediately available. We were using 
 $20,000 to $30,000 worth of wood annually on the railroad and the 
 community was using probably eighty thousand cords of wood an- 
 nually at a cost of from $9 to $15 per cord. I had had some experi- 
 ence in the matter of mining of coal in Canadian Yukon territory. 
 I knew with approximate accuracy how much coal could be sold 
 in that community and what price could be obtained for it. I knew 
 that about 20,000 tons of coal a year could be sold at that place at 
 
THE ALASKAN COAL SITUATION 353 
 
 about $15 per ton. Coal at this price would be about half the cost 
 of wood at the prevailing prices. Of course the community was 
 then growing fast, so the market would increase with the growth 
 of population. Also it was plain that when there was a. larger ton- 
 nage produced, it could be sold cheaper. 
 
 When the prospector told me of the coal vein, I said at once 
 that the coal would be important, and with him began to plan that 
 we should acquire some of the coal land with the view of opening a 
 mine. I began to look up the law, and found that there was a well- 
 expressed, clearly-defined coal land law providing that an individual 
 could purchase 160 acres of coal lands from the Government at the 
 rate of $10 an acre. The law was printed and published in pam- 
 phlet form by the interior department at Washington and there 
 were a lot of regulations and instructions printed in the pamphlet 
 to guide and assist one who might desire to purchase coal lands. 
 
 The first step as provided toward acquiring coal land was to 
 mark out the land you wanted on the ground ; that is, set up stakes, 
 at the corners of your claim and chop out the lines around it. This 
 is called locating. If the land had been surveyed, this would not 
 have been necessary for you could then locate your claim on a map 
 and describe it as such and such a quarter section. But there was 
 no surveyed land in Alaska and so it must be located by the appli- 
 cant. When it was located, the applicant was required to file an 
 application to purchase in the land office describing the ground as he 
 had located it. When this was done that particular piece of land was 
 yours, provided you should do the further things required by the 
 law. The further things required to be done were that you must 
 open a coal vein and develop a coal mine, thus proving the land to 
 be coal land. You must also have the tract surveyed by a govern- 
 ment surveyor, but at your own expense and you must file a map 
 in the land office of the survey. 
 
 Price of Coal Lands. 
 
 The law allowed you three years after you located your claim in 
 which to open and develop a coal mine on it, survey it and file your 
 map. Then you were to pay the land office $10 an acre for it and 
 thereupon the law said that you should have a patent or a deed 
 from the United States Government for the land. 
 
 This was and is a perfectly plain, sensible and reasonable law. 
 We thought the price of $10 per acre a pretty stiff price. It seemed 
 to us that the Government might well give enough of that coal 
 land to anyone who would open a mine and work it for it was en- 
 tirely worthless as it lay undeveloped. 
 
354 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 Coal lands can be bought at this day from private owners in 
 Tennessee and Kentucky and, in fact, in every coald field in the 
 United States at $10 an acre and the Alaska coal lands should be 
 cheaper. They are so far from the market and there are no rail- 
 roads to haul the coal. Besides, this particular coal was a soft coal 
 of poor quality. Yet it would be far superior to the wood we were 
 using and it seemed that a mine could be opened there with some 
 chance of mining and selling the coal at a profit, and without any 
 great amount of capital. 
 
 We concluded that each of us would take up and locate 160 
 acres. 
 
 This would not be a large enough tract to open a coal mine. 
 For you see a tunnel and haulage way in a coal mine may easily be 
 a mile or two in length and if somebody should locate the ground 
 around you, you could not extend your tunnel without coming into 
 adjoining claims. 
 
 We, therefore planned to have various other ' friends and ac- 
 quaintances locate adjoining claims so that together we should have 
 a tract of land big enough to open a good mine and which could 
 be worked for a number of years without being worked out. 
 
 We went to a lawyer's office to have the proper location notices 
 and application papers drawn and there we were told that the coal 
 land law had been suspended and that we could not buy coal lands 
 in Alaska any more. When we wanted to know why and for what 
 reason we could find none except that on November 12, 1906, the 
 President of the United States had issued an order to all the officers 
 of the various land offices directing them to accept no more appli- 
 cations to purchase coal land. 
 
 There was nothing in the law anywhere that gave the Presi- 
 dent any authority to do this, nor was there anything in the general 
 law, or in the constitution, authorizing the President to suspend 
 a law, but he did it. The Constitution gives the President the 
 power to veto a bill before it. becomes a law, but after it becomes 
 a law, there is no authority in him to suspend it. On the contrary, 
 the Constitution declares that the President shall see that the laws 
 be faithfully executed. 
 
 Congress, of course, can repeal a law or amend it, or modify 
 it, but the President's sole business is to execute it. 
 Result of Executive Order. 
 
 The law of the land with reference to the sale of coal lands 
 in Alaska was abrogated by that order and the register and the 
 receiver at the land office would not accept our applications to 
 
THE ALASKAN COAL SITUATION 355 
 
 purchase the land. They obeyed the order of the President rather 
 than obey the law of the land. We had no power to compel them 
 to accept our applications. 
 
 That is one of the great iniquities of the land laws. You 
 have no recourse to the courts. The action of the land depart- 
 ment is final. 
 
 We had to give up the effort to open a coal mine, there. The 
 law of the land was nullified by the order of the President. That 
 coal land is conserved and that community has continued to burn 
 wood to this day sixty to eighty thousand cords a year. 
 
 I will show you clearly how the President's order nullified the 
 law: 
 
 It has been a custom for many years when a certain tract of 
 public land was needed by the Government for, say, a military post 
 or a lighthouse or a telegraph station, or an Indian school, or some 
 other use, the President has issued an order withdrawing the speci- 
 fied tract for the specific purpose required. For you see all of the 
 public lands are for sale and always have been, under one law or 
 another until this absurd idea of conservation arose. 
 
 Now, if the President had done this in reference to Alaska, 
 there could have been no reason to object. For instance, if he 
 had withdrawn from sale, say, 5,000 acres of coal land in each 
 known coal field for the use of the navy and described the tract 
 withdrawn, the other land would have remained open for sale and 
 the law would have been preserved. But this was not what was 
 done in reference to the Alaska coal land. 
 
 That order just swept away and "withdrew" from sale ALL 
 the coal lands in Alaska. It was a complete abrogataion of the law 
 of the land on that subject. 
 
 Mr. Roosevelt has recently written that it was the criminal 
 neglect of Congress that has stopped the development of Alaska, 
 and Mr. Pinchot said the other day that Congress was responsible 
 for the throttling of Alaska. I say that it was the criminal usurpa- 
 tion of authority by the President of the United States that caused 
 the trouble nothing else. (Applause.) 
 
 That coal land law was a good law. It was never repealed by 
 Congress, but Mr. Roosevelt repealed it by an order. And it stands 
 so to this day, confirmed now by another order by his successor in 
 office to whom he bequeathed his policies. 
 
 Why, gentlemen, think of it! That coal land law has been on 
 the statute books over seven years. More than a thousand men 
 made their locations of coal land and filed their applications to 
 
356 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 purchase before that order suspending the law was made and not 
 a single one of all that thousand applicants has got a deed. More 
 than two hundred of them went so far as to survey their claims 
 and pay for them and the Government has their money. More 
 than $320,000 has the Government taken for the purchase of coal 
 land and not a man has got his deed. The Government has the 
 money and the land also and keeps it. 
 
 There is no telling how many applications would have been 
 filed if the law had not been nullified. I would certainly have ap- 
 plied and no doubt many others, but we were deprived of our rights 
 under the law by the arbitrary and unlawful order of the President 
 of the United States. 
 
 We had the right, as American citizens, that the laws should 
 be faithfully executed, but the law has been faithfully throttled 
 instead. 
 
 Question Concerns Nation. 
 
 When that coal law of 1904 was passed by Congress, it was 
 laid before Mr. Roosevelt as President for his approval. He could 
 then have vetoed it. But he did not. He approved it. He must 
 have thought it a good land law then. But two years later he 
 changed his mind and abrogated it. I tell you, gentlemen, this con- 
 cerns the whole people of the United States as well as the people 
 of Alaska, for if one law can be trifled with by the executive in 
 that way, any other law that pertains to this country may be abro- 
 gated in the same way. 
 
 It is difficult, gentlemen, extremely difficult for one who has 
 felt the pinch and the injury of these orders, as I have, to speak with 
 patience and without feeling about it. 
 
 We all know these orders to be illegal. They knew it at Wash- 
 ington, and they made heroic efforts to coerce Congress into ratify- 
 ing them, but Congress never did. We have tried to force a test of 
 the legality of these orders through the courts, but it cannot be done 
 except by criminal procedure. I don't know the exact number, but 
 there are probably more than a hundred men, perfectly good men, 
 under indictment at this moment for trying to buy coal land in 
 Alaska exactly as I should have done if the officials of the land 
 office would have taken my application. You see the Government, 
 acting by virtue of these illegal orders, not only stopped any further 
 applications from being filed, but would not permit any that had 
 already been filed to complete their purchases. But they took 
 their money and gave them receipts for it and then indicted most 
 of them. I never clearly understood why they did not indict everv 
 
THE ALASKAN COAL SITUATION 357 
 
 man who tried to buy a coal claim. Why, if I had got my applica- 
 tion to purchase some of that coal land filed, I would no doubt be 
 under indictment at this very moment. Because you see we would 
 certainly have got a number to join us in the applications in order 
 to get a tract large enough. And that they call a conspiracy to 
 defraud the Government. 
 
 Some of these criminal cases have, after some tedious years, at 
 last got to the Supreme Court of the United States. They were 
 argued only a few days ago and it is possible we shall shortly know 
 whether it is a criminal conspiracy for ten men to each apply to buy 
 a coal claim if they had any mental idea among themselves that 
 they would work their claims in one body after they got their pat- 
 ents. It would be the only way they could work them and it re- 
 mains to be seen whether that way was a crime. 
 
 That coal land law. of Alaska was declared by Congress to be 
 for the purpose of aiding the development of coal mines. As con- 
 strued by the executive department, it is a law to trap citizens into 
 criminal conspiracies and get their money. We. sliall shortly learn 
 how the judicial department construes it. 
 
 The administration of the coal law since 1906 shows a plain 
 intention on the part of the Government NOT to carry out and ad- 
 minister the law according to its spirit and intent, but to defeat the 
 law and nullify it according to some different spirit and intent. 
 
 Except in criminal proceedings, we cannot test the legality of 
 the action of the department. 
 
 Sixteen Applications Pend in Fairbanks. 
 
 There are sixteen applications now pending in the land office 
 at Fairbanks. They applied to purchase each 160 acres of coal 
 land, as the law provides. The agent at the land office refused to 
 accept the applications because the Roosevelt order of 1906 had 
 "withdrawn" the land from the operation of fc the law. They ap- 
 pealed to the commissioner of the land office at Washington, 
 claiming that the order was illegal and that they were entitled to 
 buy the land as the law provided, but the commissioner sustained 
 the orders instead of the law. Then they appealed to the Secretary 
 of the Interior. Now it is the rule in reference to land laws that 
 you cannot appeal to the courts until all remedies fail in the interior 
 department. The Secretary of the Interior is the final authority in 
 the land department. When he has finally passed on a question, you 
 can then for the first time appeal to the court. The court you can 
 appeal to, however, is not a court where the land is situated, but 
 
358 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 your appeal is to the Supreme Court of the District of Columbia 
 which sits at Washington, five thousand miles away. 
 
 Now, when these sixteen applicants at Fairbanks offered their 
 applications they knew they would be rejected, but they planned to 
 appeal to the commissioner of the land office and then to the 
 Secretary of the Interior and get their decisions as soon as possible. 
 When the Secretary's decision was rendered, they proposed to ap- 
 peal at once to the Supreme Court of the District of Columbia and 
 there get a judicial, not an executive consideration of those presi- 
 dential orders. But though their appeal to the Secretary was filed 
 more than a year ago, no decision has been rendered upon it, and 
 therefore they cannot appeal to the court. They can neither get a 
 decision one way or the other, and are thereby denied access to the 
 courts. 
 
 We held a conference at Fairbanks this summer to see if some 
 way could not be found to bring the cases into the courts in Alaska 
 in order that we may have the orders of the President setting aside 
 the coal law tested, but no way could be found. We discussed the 
 plan of having one man claim the land for a gold mine and another 
 for a coal mine, for there is both gold and coal in the same land, and 
 then begin suit between them in the Alaska courts, but this it was 
 decided would not test the orders, but only test whether the land was 
 more valuable for gold than coal. We discussed the plan of going 
 onto the land and beginning to mine coal, let ourselves be arrested 
 for trespassing on Government land, but this also was given up 
 because we could not induce the officers to arrest us. 
 
 So we are helpless until the appeals in the interior department 
 are taken out of the pigeon hole and decided, if they ever are. No 
 matter how unlawful the presidential orders may be, we have no 
 way to test them when the executive department will only hold up 
 the applications and not finally decide them. 
 
 Now the executive department that has abrogated the existing 
 law proposes to coerce the Congress of the United States to pass 
 a new law. They evidently assume that the existing law is wiped 
 out by these presidential orders. And indeed it is in effect. 
 Complete Change Proposed. 
 
 They propose to make a complete change in our system of 
 land titles. They would change from the freehold to the lease- 
 hold system. They want to retain more power over the people, 
 in the bureaus at Washington. A thousand years and more ago, 
 all the lands in England and France and most of Europe was held 
 under leasehold. They called it the feudal system, and the people 
 
THE ALASKAN COAL SITUATION 359 
 
 who occupied the land as tenants were called vassals and were 
 obliged to do humble service of allegiance in one form or another 
 in order to hold the land. Gradually there came to be some who 
 held their land free free from any rent service, or military service 
 or any other form of submission and allegiance, as a condition of 
 the title: These were freeholders, free men. When the American 
 colonies established their independence, the last vestige of feudal 
 tenures was abolished and all the lands in the nation were held as 
 freeholds and this country became a free country, not a country 
 of vassals and tenants, but a land of freeholders and free men. 
 
 Now they propose to return to that old feudal system and make 
 the people of Alaska tenants and tribute payers to make them come 
 as suppliants and vassals to Washington for leave and direction how 
 to work the lands and permission, when they desire to transfer them. 
 
 Does the Government need revenues so much that it will put a 
 royalty of ten cents a ton on coal that people may mine in Alaska? 
 If the Government needs revenue let them impose a tax of ten cents 
 a ton on all the coal used in the United States and Alaska will bear 
 her part equally with the rest, but if you impose a royalty tax on 
 coal produced in Alaska and not on coal produced elsewhere, we 
 become merely tribute payers to the treasury. It is unequal and 
 unjust. 
 
 I am not certain that a leasing bill may not be drawn that 
 would be a workable and just law, but the Robinson Bill, now pend- 
 ing before Congress and advocated by Mr. Pinchot, is certainly not 
 such a bill. Why, that bill in effect proposes to repeal the great 
 law of supply and demand and have the price of coal mined in 
 Alaska fixed by a bureau or commission at Washington. If the 
 law of supply and demand could be ignored and the prices of com- 
 modities fixed by law, why, all this complaint about the high cost 
 of living should be settled at once. Simply establish a lovely new 
 bureau at Washington and let them fix the prices of everything and 
 be done with it. 
 
 This Robinson Bill goes even further in interference with nat- 
 ural laws. It provides that no railroad shall own any coal mine or 
 have any interest in any or any shareholder have any interest in 
 coal. Now the coal cannot be mined or hauled without railroads and 
 the only inference that can be drawn is that the law of gravitation 
 was also to be suspended or repealed in relation to Alaska coal so 
 that it would be transported in great quantities and to great dis- 
 tances without any railroads. 
 
360 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 The stoppage of coal mining in Alaska has strangled the growth 
 of the territory. The territory gained less than two per cent in the 
 last ten years, while it gained nearly a hundred per cent in the pre- 
 ceding ten years. This hurts every individual in Alaska, either 
 directly or indirectly. 
 
 To Mr. Pinchot and men like him, the Alaska coal question is 
 one of only academic interest, but we in Alaska are intimately af- 
 fected in our living, our prosperity, and in our hopes of comfort. 
 
 He and others go to Alaska, spend a few days or weeks of a 
 summer's vacation and come back as a philanthropist and propose 
 new ways to govern our affairs. Gentlemen, I want to say this, I 
 believe no man is qualified to legislate upon a subject in relation to 
 the welfare of a people except he is one of the people. (Applause.) 
 If Mr. Pinchot lived in Alaska, or hunted for his living there, as 
 the rest of us do ; if he tried to carry on an enterprise there, or de- 
 velop and establish a business in that territory, then his judgment 
 would be valuable, his opinions could be weighed by others in a 
 similar position and by argument, the accuracy and truth of his 
 ideas ascertained. 
 
 But when he attempts to regulate our affairs as an academic 
 matter, to strengthen his power over us for his own glory and sat- 
 isfaction, it is inverting the true principles of government and we 
 become a governed and subject people instead of a free and self- 
 governing people. 
 
 British Columbia Law Admirable. 
 
 They talk of adopting the New Zealand coal land law for 
 Alaska, or the British Columbia* law. Gentlemen, they forget the 
 main principles of these laws: That is the New Zealand coal land 
 laws were made in New Zealand and made by the people affected. 
 So were the British Columbia laws. They were not made in Lon- 
 don, not even in Ottawa, but by the people of British Columbia 
 themselves. And I want to say this : The British Columbia coal 
 land law is an admirable law and if we had a similar law in Alaska 
 we should now be selling coal to British Columbia instead of buying 
 from them. 
 
 We can never have satisfactory laws in Alaska until they can 
 be made by those who are directly affected by them. (Applause.) 
 
 If we must have a leasing law in Alaska, and I am prepared to 
 agree to a leasing law or any other law that will open up the 
 country, then the law should contain a provision that it should not 
 be suspended or nullified by the President. It should further pro- 
 vide that if the agents in the land office refuse to accept applications 
 
THE ALASKAN COAL SITUATION 361 
 
 and the officers of the interior department neglect or refuse to 
 administer the law, the citizen aggrieved may apply to the Courts in 
 Alaska, not in Washington, to compel the land office to administer 
 and carry out the law. 
 
 Why, this Pinchot and his propaganda have made the people 
 of the United States think that the people of Alaska are all thieves 
 and engaged in trying to steal the vast public lands there. A man 
 on the train the other day on hearing I was from Alaska, said to 
 me in great sincerity, "The Cunninghams and the Guggenheims 
 have stolen about all there is in Alaska, haven't they?" 
 
 The Cunningham Case. 
 
 The Government has fifty odd thousand dollars of Cunning- 
 ham's and his friends' money safely in the treasury at Washing- 
 ton now, and has given them no land at all for it. Cunningham 
 and his friends have spent at least fifty thousand dollars more in 
 developing, surveying and improving the lands they applied to 
 purchase and the Government, according to the decision of the 
 commissioner of the land office, keeps not only their money and 
 the land, but their improvements as well. Fortunately for Cun- 
 ningham and his friends, however, they have not been indicted. 
 That is the result of their efforts to buy coal land from the Govern- 
 ment. For injustice carried to the extent of cruelty, I know of 
 no case in the history of the country to match the action of the 
 Government in the Cunningham cases. 
 
 The Guggenheims with the Morgan house have built 200 miles 
 of railroad from the coast up into the mountains of Alaska one 
 of the most difficult and expensive bits of railroad ever undertaken 
 anywhere in the world. They got no subsidy and no aid, but the 
 Government compels them to pay a license of $20,000 per year for 
 the privilege of operating the road. This is the equivalent of 5% 
 on $400,000, and is exactly the same in effect as if they had been 
 compelled to pay that huge sum into the Treasury of the United 
 States as a penalty for trying to develop the country with a rail- 
 road. And we need railroads in Alaska more than anything else. 
 We need five thousand miles of railroad in Alaska to properly de- 
 velop it, and then we would not have enough. We have actually 
 less than five hundred miles and those burdened with a tax which 
 is taken back to the treasury at Washington equal to the interest 
 on $2,000 per mile, and on top of it all they are charged with try- 
 ing to gobble and steal the whole of Alaska. 
 
 How can the country develop against these conditions? 
 
362 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 The land laws of British Columbia and of Canada have been 
 referred to as an example to be followed in Alaska. It may be 
 worth while to 'point out the fact that Canada spends a million 
 dollars a year to advertise and encourage immigrants to settle and 
 develop her vacant lands. The United States spends not a cent 
 for Alaska. 
 
 The Canadian Government has now under construction a great 
 trans-continental railroad more than 3,600 miles in length and 
 costing over two hundred and fifty million dollars. In addition to 
 this great trans-continental line, many other branch lines are sub- 
 sidized and aided in various ways and the result is that not less 
 than 250,000 settlers per year are being attracted to the Canadian 
 provinces. 
 
 The United States Government spends not a cent to aid or 
 encourage railroads in Alaska, but burdens them with $2,000 a 
 mile as a penalty. Though our lands will produce all that the 
 Canadian lands produce and in addition contain incalculable stores 
 of precious metals, we have made practically no gains in popula- 
 tion in ten years. 
 
Alaskan Problems. 
 
 BY HON. WALTER L. FISHER, 
 SECRETARY OF THE INTERIOR. 
 
 The public interest in the Alaskan situation is such that, with 
 the consent of the President, I have concluded at your request to 
 make at this time a candid, if somewhat informal, expression of the 
 views I have formed as Secretary of the Interior, under whose 
 official supervision much of the administration of the territory is 
 now placed. Pressure of other matters imperatively requiring at- 
 tention has prevented their presentation in as precise and compre- 
 hensive a form as I had hoped. This and the absence of the Presi- 
 dent from Washington has also prevented the submission to him of 
 what I have prepared. I wish to say, however, that no one is more 
 earnest than he in the desire to see a policy of prompt and wise 
 development inaugurated in Alaska and that the general policy 
 contained in this address has been discussed with him, meets his 
 approval, and will have his support. 
 
 I have but recently returned from an altogether too brief but 
 nevertheless a most interesting and profitable visit to those portions 
 of Alaska which are more immediately involved in the questions 
 now under public consideration. Favored by extraordinary weather 
 and the co-operation of steamship and railroad lines and the assist- 
 ance of all of the governmental agencies, including the revenue 
 cutter service, I visited every port in Alaska which seems likely in 
 the near future to become an important entrance to the country. I 
 examined all of the harbor and town sites which for this purpose 
 have attracted any considerable public attention. I traversed the 
 entire length of each of the three railroads which have been con- 
 structed in the territory and made a short trip from White Horse 
 down the upper Yukon. Both before and during the journey I ex- 
 amined a mass of books, records, and papers relating to the country 
 and its resources. I had conferences with official committees rep- 
 resenting the principal communities I visited and with numerous in- 
 dividuals, residents both of the coast and of the interior, and con- 
 ferred with engineers, miners, prospectors, railroad officials, busi- 
 ness and professional men. 
 
 I had the good fortune to have with me throughout the entire 
 Alaska trip Alfred H. Brooks, geologist in charge of the Alaskan 
 
364 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 division of the United States Geological Survey. For fourteen 
 years Mr. Brooks has been studying Alaskan conditions on the 
 ground; for nine years he has been in charge of the mineral 
 division of the geological survey work there. I had arranged for 
 Dr. J. A. Holmes, Director of the Bureau of Mines, to precede me 
 to the Bering river coal field, which he examined thoroughly before 
 joining me at Cordova. In the examination of the Bering River 
 field Dr. Holmes was accompanied by L. T. Wolle, of Ohio, an engi- 
 neer of large experience both in coal mining and railway construc- 
 tion; F. W. C. Whyte, of Montana, whose coal mining and rail- 
 way experience has been extensive in the management for years of 
 the coal developments and operations of the Anaconda Copper Co. ; 
 T. H. O'Brien, who for a number of years has been organizing and 
 managing the coal operations of the Copper Queen, Stag Canon, 
 and other companies in the Southwest ; and George Watkins Evans, 
 a coal-mining engineer of experience in the Northwest states, who 
 had already made several professional examinations of the Bering 
 River coal field. To these gentlemen, one and all, I am greatly 
 indebted for the valuable service they have rendered in this con- 
 nection: In his subsequent examination of the Matanuska coal 
 field Dr. Holmes was accompanied by Mr. Whyte and Sumner S. 
 Smith, who is a mining engineer and the inspector of mines for 
 Alaska. 
 
 Alaskans Broad Minded. 
 
 At the very outset I wish to express the high opinion I formed 
 of the remarkably large and fine body of people who have be- 
 come permanent residents of Alaska. While there is unquestion- 
 ably a considerable floating population of a character which does 
 not add to the real strength or stability of the territory, there is a 
 substantial percentage of vigorous, law-abiding, law-respecting 
 men and women of the highest type of American citizenship, and I 
 found that they possessed what is perhaps the highest form of moral 
 courage the ability and the willingness to look at both sides of the 
 questions which affect their interests and to admit that they are 
 wrong when once convinced that they have been led into a mistake 
 of fact or of opinion. The total population is about 65,000, of 
 which a little less than half are whites. 
 
 They are entitled to a territorial government better adapted to 
 their peculiar local conditions and needs. The existing coal-land 
 laws applicable to Alaska neither promote development nor protect 
 the public, and all its coal fields are withdrawn from entry. Nu- 
 merous claims under entries made or attempted to be made prior to 
 
ALASKAN PROBLEMS 365 
 
 the withdrawal are pending in he department of the interior. 
 Their investigation is now being pushed as rapidly as possible, and 
 wherever indictments are not pending they will be decided as 
 promptly as this can be done properly. 
 
 I found Alaska a country of wonderful scenic beauty, which 
 in itself will in future years be one of its greatest financial assets. 
 From all the information I could gather, I believe it to be a country 
 of great mineral and agricultural possibilities ; indeed, I should go 
 further and say a country of great mineral and agricultural proba- 
 bilities, needing development, ready for development, and inviting 
 development, but held back chiefly by inadequate transportation 
 facilities and inadequate laws. 
 
 Its present steamship lines are probably as good as could be 
 expected, in view of the restricted commerce and the inadequate 
 manner in which its coasts are marked and lighted. Its present 
 roads are almost entirely those which have been built out of the 
 meager appropriations made by Congress for this purpose. Travel 
 by road or trail in Alaska is still generally of the roughest pioneer 
 description. Its present railroads are incidents to the exploitation 
 of its mineral resources. 
 
 One Real Railroad. 
 
 Aside from the White Pass & Yukon road there is only one real 
 railroad in Alaska, and that is the Copper River & Northwestern 
 Railroad, which leads from Cordova, on Prince William Sound, 200 
 miles up he Copper river, and its eastern tributary, the Chitina, to 
 the Bonanza copper field, and is reported to have cost approxi- 
 mately $20,000,000. The White Pass & Yukon Railroad is an ex- 
 cellent narrow-gauge road along the line of the historic trail which 
 leads over the mountains and down the Yukon to the gold fields ot 
 the Klondike, but only a small part of this railroad is in the terri- 
 tory of the United States. The Alaska Central Railroad starts from 
 Seward for -the Matanuska coal fields and the Yukon, but stops, dis- 
 couraged, 70 miles north of Seward. The present cry in Alaska 
 and among those who are financially interested in Alaska is that 
 development has been stopped by the withdrawal of the coal fields 
 from entry. I am convinced that the coal withdrawals have exerted 
 only an incidental influence upon the development of railroads in 
 Alaska. If the coal fields had remained open to unrestricted private 
 exploitation, railroad development might have been stimulated, but 
 in that event the profits of the coal and not of the railroads would 
 have been the incentive to construction. 
 
366 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 We have already seen in this country the injurious effects of the 
 joint or common ownership of coal fields and railroads, and we are 
 now engaged in the attempt by drastic legislation to remedy the evils 
 which the withdrawal of the coal fields of Alaska should prevent 
 from recurring there. We should not repeat in Alaska or elsewhere 
 the mistakes which have been made in the older portions of the 
 United States. This does not mean that Alaskan coal should not 
 be developed and developed at once. It means merely that it should 
 be developed properly as well as promptly. 
 
 Alaskan coal is of great value, but its extent and character have 
 been much exaggerated. There are great quantities of lignite and 
 low-grade bituminous coal in several parts of the territory, but 
 there are only two known fields of high-grade coal in Alaska. The 
 better known of these two fields is the Bering river field, which 
 is near Controller bay, and in which the Cunningham claims were 
 located. It is the field about which the Alaskan controversy has 
 been fiercest and most bitter. The Matanuska field is larger and 
 may prove to be the more important. Both of these fields contain 
 anthracite and high-grade bituminous coals. The question is how 
 they shall be opened so as to promote development and protect the 
 public interests. Before answering that question it is necessary 
 to consider the general conditions which now exist and the real end 
 which we wish to attain. Alaskan coal can be .opened so as to 
 enable a larger, or smaller number of individuals or groups of in- 
 dividuals to make money out of their development, bringing with 
 this development considerable incidental benefit tt* the community 
 as a whole through the expenditure of money and the employment 
 of men, or it can be opened on terms which will offer to the 
 operator a sufficient profit to furnish an adequate incentive for his 
 investment and his efforts, but which will result in placing the coal 
 upon the market at the cheapest price consistent with this in- 
 centive, conferring upon the community the manifold advantages of 
 cheap fuel and of the deevlopment of the many forms of industrial 
 enterprise which cheap fuel renders possible. 
 
 I think there can be no room for doubt that the second of these 
 objects is the one to be attained. If. however, Alaskan coal is to 
 be mined and sold under any plan, it is important to know what is 
 likely to be the present and future market. There is at present on 
 the Pacific coast no available anthracite except that in Alaska. It 
 would be natural, therefore, to expect an immediate demand for 
 this particular kind of coal. There is little high-grade bituminous 
 coal on either the eastern or western border of the Pacific, and 
 
ALASKAN PROBLEMS 367 
 
 it would be natural to expect a considerable demand for coal of this 
 character. There is little, if any, high-grade coking coal on the 
 Pacific unless in Alaska, and there is an immediate demand for -a 
 certain amount of coking coal for smelting copper and other ores. 
 There is, of course, a certain present limited demand in Alaska for 
 coal for steaming purposes. The amount used for all purposes 
 during the last fiscal year was 116,000 tons. Except for coking use, 
 it is clear, however, that Alaska coal must now contend with serious 
 competition. There are considerable quantities of lignite and low- 
 grade bituminous coal throughout the lower Pacific northwest and 
 in British Columbia. Much of the .bituminous coals are of fair 
 quality. When freight and handling charges are taken into con- 
 sideration it is clear that for steaming purposes the coal of British 
 Columbia and of the northwestern states will hold everything but 
 the Alaskan market itself against competition from any of the 
 Alaskan coals except that of the very highest grade, and coal of this 
 quality can expect to win only where special considerations control. 
 Oil Supplanting Coal. 
 
 For ordinary heating and steaming purposes it is always pos- 
 sible for low-grade coal at lower prices to control the market. But 
 for these purposes the most serious competitor of Alaska coal is 
 California oil,' which is already supplanting coal in many fields and 
 possesses advantages in economy and convenience of handling. The 
 most reliable estimate as to the life of the California oil fields of 
 which I have any knowledge is that they will be an active com- 
 petitor for the entire heat-producing market for the next 50 years. 
 Oil has already supplanted coal on many of the western railroads, 
 and is now being installed in the railroads and steamships of Alaska 
 and the Pacific coast. Whether it will be possible for Alaska coal 
 to compete with it, once the necessary changes in the boiler equip- 
 ment have been made, is exceedingly -doubtful. Oil, however, is a 
 less dangerous competitor in smelting and in making steel. It is 
 not now used for either of these purposes, except experimentally. 
 
 Vast deposits of copper are already known to exist in Alaska, 
 and smelters will undoubtedly be established in that country as 
 well as farther south upon the Pacific coast. Some iron exists in 
 the Pacific states, and there are numerous indications of its pres- 
 ence in Alaska, although commercial development there is as yet 
 practically negligible. My own judgment is that the present mar- 
 ket for Alaskan coal is limited and uncertain, but that the demand 
 will rapidly increase as the country is developed. There are now 
 the local needs of a comparatively small population and compara- 
 
368 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 lively few industrial enterprises. There is also some demand for 
 high-grade coal on the lower Pacific coast which Alaska alone 
 can furnish and supply. 
 
 If mines are opened there should be, and in my opinion there 
 will be, immediately established on Prince William Sound one or 
 more smelters capable of smelting the copper ores which are now 
 being mined and of taking care of the development of this ore 
 which seems sure to come in the early future. There will be at some 
 time a demand for coke for making steel; and if adequate trans- 
 portation facilities are furnished so as to permit of the development 
 of the iron and other minerals which probably exist in the country 
 there will be an increasing demand for coke for these and for the 
 ores of the lower Pacific. After all, however, important as these 
 needs and opportunities are, it seems reasonably clear that Alaskan 
 coal will not dominate the coal market of the Pacific coast as it 
 was confidently thought it would when the fields were first discov- 
 ered. That this is true will be apparent upon a further considera- 
 tion of the physical condition of the coal fields and of the coal itself. 
 I personally visited the Bering field and examined some of its coal 
 veins and coal mines. It is located along the foot of the Chugach 
 mountains, in the region a little south of Prince William Sound 
 and some 1,200 miles from Seattle. The fields cover an area of 
 50 square miles or 32,000 acres, lying approximately 25 miles from 
 the coast at Controller bay with an immense glacier, known as the 
 Bering glacier, on the east from which the Bering River runs and 
 empties into Controller bay. This field was discovered in 1896 and 
 practically all of it appears to have been covered by claims entered 
 under the law of 1904. The country is exceedingly rough and 
 broken and the rocks are faulted and folded to an extraordinary 
 degree. 
 
 Difficult to Determine Condition of Coal Beds. 
 In addition to the titantic upheavals which must have oc- 
 curred at this point, the stratification has slid or moved within itself 
 in such a way as to crush the large portion of the coal beds in 
 this field, leaving what otherwise would have been the highest grade 
 of bituminous coal so that much of it cannot be mined as lump coal, 
 but only in a finely crushed condition. There is, however, some 
 coal in the field which doubtless can be mined as lump, but how 
 much there is of this coal remains a question of considerable doubt. 
 This doubt is further intensified by the fact that 'in the crushing 
 process the coal beds have become pinched so that beds of consid- 
 erable thickness at one point become thin or even pinched out 
 
ALASKAN PROBLEMS 369 
 
 within a short distance, making it difficult to determine what will 
 be the condition of the beds at any given point beyond the ex- 
 plored area. All of these conditions will add materially to the 
 cost of mining, which will be further increased by the fact that 
 the coal itself can not be relied upon to support the roof of the 
 mine and that timbering will have to be resorted to to an unusual 
 extent. Although the local timber is of poor quality, it will prob- 
 ably answer for ordinary mining purposes, but the cost of labor 
 will be high. Aside from its crushed condition, much of the coal 
 itself is of excellent quality, possessing high thermal value. The 
 crushed condition does not interfere with its coking quality if 
 otherwise good. Although it can be briquetted, or with the use of 
 specially constructed furnaces it can be burned successfully in its 
 present form, its physical condition will undoubtedly interfere with 
 its immediate commercial value. The erection of smelters on Prince 
 William Sound will cause an immediate demand for this coal, as 
 the first smelters will probably be erected at or near Cordova, 
 which is the tidewater terminal of the Copper River and North- 
 western Railroad, which now taps the principal copper field of the 
 territory. 
 
 One of the pressing needs of the territory is the construction 
 of such smelters at which the copper ore especially can be smelted 
 without the labor and expense of transporting the ore the enormous 
 distance now necessary for this purpose. The main purpose and 
 practically the only present use of the extensive railroad from 
 Cordova up the Copper river is the transportation of the ore from 
 the so-called Bonanza copper field in which the Morgan-Guggen- 
 heim syndicate, which owns this railroad, already has extensive 
 interests. No smelter, however, has as yet been constructed, and 
 none would be profitable until the coal and the copper can be 
 brought together. Once the Bering coal fields are open the trans- 
 portation problem becomes in this, as in other respects, the most 
 important problem upon the solution of which future develop- 
 ment will depend. The enormous expense of railroad construc- 
 tion through the mountainous and glacier-covered territory makes 
 it practically certain that the Copper River Railroad will remain 
 the natural distributor for any of this coal for which there may 
 be a demand in the interior of the particular district in which it 
 is located. I think it may be assumed, not only from the state- 
 ments made to me by its officials but also from the very nature 
 of the case, that the people interested in this road will construct 
 smelting works at Cordova as soon as Alaskan coal is available 
 
370 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 for its use. Smelters at Cordova would be able to take care of 
 the copper ores, of which there are many indications throughout 
 the entire district tributary to Prince William Sound. 
 
 The exploitation and commercial development of these ores 
 would promptly follow the construction and operation of such smelt- 
 ers. Representatives of the Copper River Railroad state that they 
 will immediately construct a branch line to the Bering coal fields as 
 soon as they are opened to development. Under these circumstances 
 it is natural to inquire what, if any, advantages there would be in 
 the construction of another railroad from tidewater to these fields. 
 The answer to the question depends largely upon the extent to which 
 the Government will be able to regulate the service and the rates 
 of the Copper river road. Such regulation, however, should be 
 comparatively simple and effective, especially if we insist upon 
 keeping the railroad or its owners from acquiring a controlling 
 interest in the coal fields. That this can be done by a proper sys- 
 tem of leasehold I see no reason to doubt. Representatives of the 
 railroad have assured me that its owners recognize and intend to 
 accept in good faith, so far as the coal fields are concerned, the 
 principle upon which public opinion and the law now insist in the 
 States and will undoubtedly insist in Alaska the principle that 
 transportation lines should not be interested, directly or indirectly, 
 in the commodities which they transport. Whatever may be thought 
 of such assurances, the law itself should divorce the railroads from 
 the coal business, so that all the lessees of coal lands may receive 
 impartial service from the roads and the incentive to favoritism 
 may be removed. If this can successfully be accomplished, it is 
 apparent that a competitive railroad will simply divide the profits 
 of transportation, which are now not adequate to pay the cost of 
 operation, and whose future can not be foretold with any certainty 
 because of the doubts as to the future market for the coal to which 
 reference has already been made. 
 
 Controller Bay Poor Harbor. 
 
 There is, however, abundant opportunity for competitive roads 
 if they should ever become desirable. Not only is there room at or 
 near Cordova for competitive terminals, but there is ample frontage 
 reserve for a Government railroad if one should ever be desired. 
 The harbor at Cordova is so clearly superior in all respects to any 
 other harbor available for the Bering coal fields that the slightly 
 longer transportation necessary by this route appears entirely un- 
 important, especially as the grade is practically a water grade to the 
 coal fields. Nevertheless, there is a possible harbor, although a 
 
ALASKAN PROBLEMS 371 
 
 poor and expensive one, available at Controller bay. This much 
 discussed bay, tempest tossed by controversy as well as by nature, 
 is inclosed partly by rocky remnants of the hills and partly by low 
 reefs built up of mud brought down by glacial streams and raised 
 above the water surface by action of the waves. The bay itself is 
 gradually being silted up by similar material from the same exten- 
 sive glaciers which border the coal fields on the north and east and 
 probably cover many beds of coal. These long, low reefs and fiats, 
 together with the rocky islands of Kayak and Wingham on the 
 southwest, protect its waters from the open sea. The area from 
 the base of the coal-bearing mountains on the north, along the 
 east side of Bering river, to the bay, a distance of 15 to 20 miles, 
 is a low-lying plain but a few feet above water level, much of it 
 flat and swampy, built up of glacial debris. 
 
 The entire bay is shallow except a narrow, irregular channel 
 from a few hundred yards to a mile in width and a few fanthoms 
 in depth leading southward and westward to the sea. The tidal 
 currents passing into and out of this bay diminish the settling of 
 glacial silt in this channel, but these do not appear to prevent the 
 silting up of the larger part of the bay itself; and doubtless the 
 channel is slowly but continuously becoming smaller and more 
 shallow. This channel lies from 2 to 3 miles out from the present 
 shore, with these shallow mud flats intervening. Of course, 
 whether and how rapidly the large quantities of silt brought down 
 from the glaciers will continue to fill up the waters of Controller 
 Bay can only be determined by careful and protracted observation, 
 but there is every reason for believing that this process will con- 
 tinue in the future as it has done in the past unless the conditions 
 are improved by artificial construction and dredging. 
 
 I should add, however, that some persons insist that the future 
 deposits brought down by the Bering river will in no appreciable 
 way affect the navigability of the bay ; and that the conditions can 
 be easily improved by dredging. As the Controller bay region is 
 only 20 to 30 miles distant from the coal fields, there have naturally 
 been numerous investigations to determine the possibility of con- 
 structing harbor facilities there. I am tol-d that it was carefully 
 investigated on behalf of the Copper River Railroad by engineers 
 of high standing and was discarded as impracticable. The attempt, 
 however, was made under the advice of engineers of this road to 
 construct a harbor at Katalla, which is outside of the range of 
 islands to the westward of Controller bay, where there is deep 
 water immediately off shore and where a pier or breakwater was 
 
372 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 constructed at considerable expense in the vain attempt to protect 
 shipping from the force of the winds and waves of an open road- 
 stead. A storm promptly demolished these works and led to the 
 removal of the railroad to Cordova. Its representatives say they 
 would not now construct a harbor at Controller bay even if they 
 should become interested in a railroad to the coal fields, and give 
 as an added reason the necessary duplication of dock facilities which 
 they are now constructing at Cordova. 
 
 Obviously, if modern dockage is provided at Cordova for cop- 
 per ore and other heavy freight, it can be made to provide for coal 
 with less additional expense than if separate facilities should be 
 constructed on Controller bay. Nevertheless, several other rail- 
 road enterprises have been projected at Controller bay, but ap- 
 parently all have become inactive except that in which R. S. 
 Ryan and his associates are interested. It was the persistence of 
 Mr. Ryan which led to the elimination of the shore of Controller 
 bay from the Chugach National Forest, and he has made three 
 scrip entries on the shore, which are still pending before the de- 
 partment of the interior. Following the law, these entries each 
 have a frontage of 160 rods, leaving Sorod intervals between them, 
 which the law provides shall be kept free from entry. On one of 
 these So-rod strips a railroad terminal has been located, but this 
 entry appears to be without any warrant of law and is based 
 wholly upon the theory that a railroad-terminal location does not 
 constitute an entry within the meaning of the act. It seems to 
 have been made merely to exclude others and upon the chance that 
 the statute may be open to the construction mentioned. I do not 
 believe that it is even intended to be seriously pushed. At all events, 
 all the rest of the shore, except as stated, remains free from entry, 
 thus disposing effectively of the claim that a. railroad monopoly 
 has acquired the frontage of Controller bay. Whatever may be 
 the merits* or demerits of this harbor, it has not passed out of the 
 control of the Government. 
 
 To develop it at all it will be necessary to construct piers or 
 roadways from the shore out over the shallow flats to the chan- 
 nel I have described; and after the elimination from the national 
 forest Ryan se.cured from Congress, without apparent objection 
 from any source, a special act containing many provisions for the 
 protection of the public interests, permitting him to construct a pier 
 with dockage facilities where it reaches the deeper water. Here, 
 3 miles from the shore, he proposes to create a harbor. Similar 
 facilities can be created at other points along the shore if this 
 
ALASKAN PROBLEMS 373 
 
 should be desired, and by dredging, a certain amount of which 
 Mr. Ryan admits he will have to do, facilities equally advantageous 
 with his can apparently be created, if desired. Ice from the 
 Bering river and other small streams forms in winter and collects 
 in the shallow waters of Controller Bay. Some of those familiar 
 with Alaskan conditions, whose opinions are entitled to weight, 
 regard this ice as a menace to the harbor, but the greatest dis- 
 advantage, aside from the shallow waters, appears to be conceded 
 to be the fierce winds which sweep down over the bay from the 
 glaciated regions on shore. Under somewhat similar conditions 
 elsewhere, shipping is said to be actually blown from the docks in 
 extreme cases; and if winds of this character should blow while 
 vessels were attempting to enter Controller bay the danger would 
 be great. 
 
 Mr. Ryan has recognized the difficulties and thinks they can be 
 met, at least so far as the docks are concerned, by constructing them 
 so that ships will dock with their bows directly facing the prevail- 
 ing winds. The plans which he has recently prepared are so drawn. 
 That such precautions are necessary even in his judgment is a suf- 
 ficient indication of the importance of this particular problem. If 
 he should really construct a road and extend it from the coal fields 
 to a connection with the Copper River Railroad, copper ore might 
 be diverted either by enforced or voluntary switching arrangements 
 to smelters established in the coal fields themselves or at Controller 
 Bay, but these smelters would not possibly be as available for the 
 copper ores of Prince William Sound as would smelters at Cor- 
 dova. For the reasons which I have thus indicated, I am unable 
 to see how a railroad at Controller bay would be of any particular 
 advantage to the Alaska syndicate and if a real competitive rail- 
 road should be built, it would serve as a check upon the Copper 
 River road. If, on the other hand, a Government railroad is de- 
 sirable now or in the future, there is ample opportunty for it. If 
 the Ryan railroad should be built and the Government desired its 
 acquisition, the opportunity for the Government to build a com- 
 petitive road should be effective in preventing an exorbitant price. 
 Proper Coal Laws Essential. 
 
 However, under the conditions which exist, including the char- 
 acter of the Bering coal fields, the present state, and the immedi- 
 ate future of the coal market, and the fact that the Copper River 
 Railroad is already in the field, I see no reason why the Government 
 should at this time take upon itself the unnecessary financial risks 
 of supplying transportation. If railroad rates and service can ever 
 
374 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 be effectively regulated, this can be done in the case of a railroad 
 carrying but a single commodity between fixed points, as would be 
 the case with the Ryan railroad, or carrying but few commodities 
 and those chiefly in bulk, as is now the case with the Copper River 
 Railroad, and is likely to be the case with it for many years to 
 come. While I am an optimist as to the future of Alaska, I see no 
 reason why the Alaska syndicate should not be permitted to con- 
 tinue the enormously expensive experiment to which its present 
 investment has already committed it and which that investment pre- 
 vents it from abandoning. The essential thing is that we shall 
 adopt proper coal laws under which monopoly will be impossible 
 and that we shall preserve ample opportunities for whatever action 
 by the Government the future may require. The immediately im- 
 portant thing is that the Bering coal field should be open to wise 
 development so that it may supply local needs and afford ample 
 opportunity for supplying any market for this particular coal which 
 may now exist or which it may be possible to create on the Pacific 
 coast. 
 
 My visit to Alaska has led me to take a far greater interest in 
 the future of the Matanuska coal field, which is larger in extent, 
 having an area of 74 square miles or 47,360 acres, better in coal, 
 better in physical condition, and freer from the complications of 
 private claims than is true at Bering river. Against these advan- 
 tages must be set off its greater -distance from the sea, but this very 
 distance connects it more intimately with the real problem of 
 Alaskan development that of adequate transportation from tide 
 water to the Yukon. What Alaska needs more than all else is a 
 trunk line railroad from the ocean to the great interior valleys of 
 the Yukon and the Tanana, opening up the country so that its 
 future development may really be possible. Today, as I have said, 
 Alaska is a country of large probabilities, minerally and agricul- 
 turally. Mineral resources of great variety and extent are indi- 
 cated by such surface exploration as is possible. The real value 
 of these mineral indications, however, can not be effectively deter- 
 mined while the cost of transporting even the simplest of mining 
 machinery into the interior is practically prohibitive and can be 
 justified only as a gigantic gamble by men of sufficient means to 
 pocket their losses. The vast interior valleys are covered with lux- 
 uriant grasses and can be made to raise cattle and sheep and even 
 grain if proper seed and proper methods are experimentally devel- 
 oped by scientific agriculture. But agricultural development can 
 
ALASKAN PROBLEMS 375 
 
 not go forward where the local markets are small and scattered and 
 exportation is impossible. 
 
 The Matanuska Field. 
 
 The Matanuska coal field lies north of Prince William Sound 
 and from 150 to 200 miles from Seward, on Resurrection bay. 
 It is known to contain extensive beds of coal of the same or slightly 
 superior quality to that of Bering river, and in better physical 
 condition both as to the coal itself and as to the obstacles to profitable 
 mining. The country is not so broken, faults and pinching are less 
 in evidence, and the crushing process appears to have gone on to a 
 much less extent. A far less percentage of the field has been en- 
 tered by private claimants, and most of these appear to be clearly 
 illegal on account of dummy entries and other violations of the 
 law, for which indictments are now pending. A railroad to de- 
 velop this field and to open up the great interior valleys has been 
 started from Seward, which has by far the best harbor and the best 
 town site in Alaska which I saw or of which I have been able to 
 obtain any knowledge. The town of Seward lies at the head of 
 Resurrection bay, which is a magnificent and extensive harbor, 
 landlocked and free from ice, and already selected by the Gov- 
 ernment as a naval coaling station, and where smelter operations 
 may be one of the future industries. 
 
 The only criticism of the harbor of which I have heard is that 
 the water is so deep that docks and fixed moorings will be neces- 
 sary for perfect safety, but as this is also true of the harbor of 
 Seattle, which has been regarded as one of the most magnificent 
 in the world, it seems to be a fault which closely approaches a virtue. 
 The railroad from Seward the so-called Alaskan Central or Alas- 
 kan Northern at present extends only seventy-odd miles to a point 
 on Turnagain Arm, where it stopped for lack of funds and for 
 various other reasons, among which the withdrawal of the coal 
 fields from entry is particularly emphasized. I think, however, 
 that its financial plans afford a more convincing reason for its 
 failure. At all events, it has passed through the courts into the 
 custody of its bondholders, who are not particularly eager, if they 
 are able, to finance its further extension. While a part of its con- 
 struction does not seem wisely adapted to the transportation of coal 
 or other heavy freight, I believe this road should be continued on 
 to the coal fields and beyond them to the interior, and that if 
 private interests do not care to undertake the task the Govern- 
 ment itself should do so. The situation here is not like that in the 
 Copper River country. No large financial interests are back of the 
 
376 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 railroad ; no large investments have been made which ,it will be 
 necessary for private interests to protect. 
 
 Such a railroad as I have suggested will pass through a coun- 
 try which appears to have large agricultural possibilities as well as 
 great mineral resources. These possibilities and resources, how- 
 ever, will require time for their development. The adoption of a 
 leasing policy will take away from the promoters of such a road 
 the lure of great gain from the exploitation 'of the coal fields. 
 This exploitation clearly should be prevented in the public interest. 
 But at the same time, the Government must recognize that if it 
 withdraws from private capital this incentive for railroad con- 
 struction the Government itself must assume the obligation of 
 making possible that kind of development upon which it insists for 
 the general good. It has been urged that the Government should 
 meet this objection by guaranteeing the payment of bonds or the 
 interest on bonds equal to the cost of the construction of the road. 
 I can see no advantage whatever in this policy. If the Govern- 
 ment is to guarantee the cost of construction, I see no reason why 
 the Government should not own the road outright, whether it op- 
 erates it or leases to an operating company. 
 
 Trunk Line, to Yukon Imperative Need. 
 
 If a plan for construction at the joint risk and joint profit of 
 the private investor and of the public along the lines of the Chi- 
 cago traction ordinances could be put into successful operation, 
 this might reconcile the conflicting views of public policy as to the 
 Government ownership of railroads, especially if the Government's 
 share of any future profits should be commuted into an equivalent 
 reduction of the rates or should be directly expended in furnishing 
 to Alaska the other means of transportation of which it is and 
 will continue to be so much in need. After such careful considera- 
 tion, however, as I have been able to give to the matter, I believe 
 that the uncertainty of immediate financial return will prevent the 
 adoption of this plan and that the imperative need of immediate 
 transportation development calls for the construction of 'at least 
 one main trunk line from tidewater to the Yukon, which can better 
 be constructed from Resurrection bay through the Matanuska coal 
 fields than in any other way. There seems to be no likelihood that 
 the Copper River Railroad will be extended into the interior for 
 years to come, and even then its route would probably be far 
 removed from the line I have suggested. 
 
 The Matanuska coal should be brought to Seward for the use 
 of our naval coaling station, and a mine for that purpose can well 
 
ALASKAN PROBLEMS 377 
 
 be opened by the Government on the Matanuska, where it can be 
 made to serve as an example for private mining, where it can fur- 
 nish information and serve as a check upon the profits of the lessees 
 under Government leases. The Secretary of the Navy authorizes 
 rne to state that he believes there should be reserved a sufficient 
 portion of high-grade Alaska coal, suitable for the use of the navy, 
 to be mined hereafter for this express purpose under the Bureau 
 of Mines. The navy department is now conducting a test of the 
 available coals in the Pacific coast states with the result that none 
 of these coals have been found suitable for naval uses. It is the 
 intention to test additional coals from New Mexico and Wyoming. 
 
 I have made some inquiries to ascertain whether the present 
 owners of the Alaska Central are willing to give any assurances that 
 they will extend that railroad through the coal fields to the interior 
 in the near future, with the result that some at least of those inter- 
 ested in it have indicated a preference to sell the railroad to the 
 Government for the face of the outstanding bonds, which amount 
 to some $4,600,000. I assume that it can be purchased for the 
 real value of the road, whatever that may be, and that it will not 
 be extended by its present owners. 
 
 In undertaking railroad construction there is ample precedent 
 at Panama, and it must always be borne in mind that as a matter 
 of principle the Government is not thus invading the legitimate 
 domain of private enterprise, but is in effect simply resuming one 
 of its proper functions. The Supreme Court of the United States 
 said in United States vs. Joint Traffic Association (171 U. S., 505- 
 570) : "The business of a railroad carrier is of a public nature, 
 and in performing it the carrier is also performing,^ to a certain 
 extent, a function of government." In Talcott vs. Pine Grove 
 (23 Federal Cases, 652), the United States Circuit Court for the 
 West Division of Michigan, said that railway corporations "exer- 
 cise delegated sovereign rights" and are "but a portion of the public 
 Government. * * * And it is not true, we submit, that it is in 
 degree only that these franchises differ in their relations to the 
 public from mills and inns, as is said in People vs. Salem. The 
 one is private property; the other is a political function, which, 
 when resting in the hands of government where originally it re- 
 sided, or delegated still for the same public use, to either persons or 
 corporations, ever has been, and of right may be, aided by taxa- 
 tion. * * * - It is for the performance and regulation of this 
 old and familiar governmental duty, in a mode deemed by the leg- 
 islature most efficient and economical, that in modern times railway 
 
378 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 and other corporations have been created. And in the most plenary 
 and critical sense, under the general railroad law of Michigan, 
 they are parts of the political organism. The road, once construct- 
 ed, is, instanter and by mere force of the grant and law, embodied 
 in the governmental agencies of the state and dedicated to public 
 use. All and singular its cars, engines, rights of ways, and prop- 
 erty of every description, real, personal, and mixed, are but a 
 trust fund for the political power, like the functions of a public 
 office." 
 
 Indeed, the most important features of our railroad law are 
 squarely, based and depend upon this theory of the relation of 
 railroads to the functions of government. What has happened, 
 then, with respect to railroads is simply that the Government has 
 delegated one of its own functions to private agencies for what, at 
 the time, are believed to be considerations of wise expediency. If, 
 for reasons of equal expediency, the Government decides at any 
 given time or place to resume its true function, it cannot be said to 
 be in any sense invading the field of private enterprise. 
 
 If we may assume that some of the coal claims which have been 
 entered in Alaska in either the Matanuska or the Bering fields 
 have complied with the law and should be allowed, the sugges- 
 tions I have made will enable us to compare in practical operation 
 the development of coal under private ownership, under Govern- 
 ment leasehold, and under the direct operation of the Government 
 itself. We shall have an important railroad under private owner- 
 ship, with governmental regulation, to compare with one under 
 public ownership, and these two railroads will operate in separate 
 fields where they will not directly conflict, but where each may serve 
 as a check up'on the other, and the advocates of both methods will 
 doubtless come to appreciate more fully and more fairly both the 
 difficulties and the advantages of the railroad as a governmental 
 agent. 
 
 Methods of Opening Coal Fields. 
 
 It remains only to consider more in detail the methods by 
 which the coal fields should be opened. Those suggested have been 
 the sale of the lands in fee, their development under lease from 
 the Government, and their operation by the Government itself. I 
 believe that the time has passed when the Government should con- 
 vey an unrestricted title to its coal fields. The day is done in which 
 the Government should deliberately encourage the unrestricted 
 private exploitation of the sources of power. To impose effective 
 regulations upon these sources after they have passed to private 
 
ALASKAN PROBLEMS 379 
 
 individuals in fee is exceedingly difficult, even if not impossible. 
 The ownership of the fee carries with it under the law the right 
 of unrestricted sale, and many regulations which are desirable in the 
 public interest can be imposed, if at all, only after radical changes 
 in the laws and prolonged litigation in the courts, perhaps only 
 after constitutional amendments. It is therefore unwise, and in 
 my opinion unnecessary, to sell our coal lands in order to secure 
 their effective development. 
 
 On the other hand, direct Government operation, including the 
 mining and the selling of coal, involves such deep and far-reaching 
 changes, both of policy and of administration, that there is no likeli- 
 hood at the present time of its adoption to the exclusion of private 
 operation. Unlike the Government ownership of railroads, public 
 coal mining has never been held by the courts to be a function of 
 government. It would be regarded by many sincere and disinter- 
 ested citizens as an invasion of the field of private enterprise, and 
 would involve such general and uncompromising opposition that 
 even those who believe in its adoption as a matter of principle should 
 not insist upon tying up the coal fields of Alaska until the great 
 economic and political questions which are involved in its exclusive 
 application to these fields have been fought out to a practical con- 
 clusion. The true function of government is not merely the preser- 
 vation of public order or the regulation of the conduct of indi- 
 viduals, but the carrying on of any enterprise which will promote the 
 welfare of the community as a whole more effectively if carried on 
 by the organized community than if left to the voluntary action of 
 individual members of the community. But to determine whether a 
 particular activity answers this test depends in every instance on a 
 final and complete analysis involving a consideration not only of 
 immediate results, but of the far-reaching consequences upon hu- 
 manity and upon the social order. While, therefore, much can be 
 said in favor of permitting the Government to enter experimentally 
 into those fields upon which industrial development and the welfare 
 of society depends, which perhaps may in the future include the 
 development and distribution of power and the means by which 
 power may be created, I do not believe that the Government alone 
 should preempt these fields or exclusively control their development 
 until it becomes far clearer than it is today that their development 
 by private enterprise cannot be effectively controlled. For this 
 reason I am opposed to the policy of having the Government alone 
 own and mine Alaskan coal. 
 
380 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 I believe that the leasing system avoids the controversies and 
 the difficulties of both extremes of public and of private ownership. 
 It has been adopted with conspicuous success in the great mining 
 communities of Australia and New Zealand. It is now the estab- 
 lished law of the Yukon territory lying in Canada just across the 
 border line from Alaska. It is the system under which much of 
 the privately owned coal land of the United States is in fact today 
 being developed. Under it we can insert as matters of contract and 
 as conditions to which the lessee voluntarily consents those regula- 
 tions and requirements which promote the public interest, the en- 
 forcement of some of which by mandatory law might be unconstitu- 
 tional. By making the terms of our leases liberal we can make them 
 even more attractive to capital than if we adopt the policy of an 
 outright sale of the fee. 
 
 Outright Sale of Coal Lands,. 
 
 Let us consider for a moment what ordinarily happens with 
 coal land which is sold outright. Comparatively little of it is mined 
 by the original purchaser. He usually disposes of his title to a suc- 
 cession of others, each of whom in turn adds to the cost of his pur- 
 chase the profit in consideration of which he sells, and with increas- 
 ing frequency the final result is the operation of the coal mines by a 
 lessee, who must pay a return on these accumulated profits and who 
 adds his own, transferring the burden of it all to the consumer. 
 One hundred and fifty-six million tons of coal, or 34% of the total 
 production of the United States for the year 1909, were mined 
 from lands operated under private leases, and these leases are com- 
 mon in every coal-mining state, naturally much more so in some 
 states than in others. Considering the areas involved, we find that 
 in West Virginia, in the great Pocahontas and New River coal 
 fields, which yield the finest steaming coals of the continent, about 
 90% of the area in the Pocahontas district and about 60% of that in 
 the New River district are mined on a private-lease basis, which 
 pays the lessor a royalty fee averaging 10 cents per ton. 
 
 In the Southern Appalachian coal fields, just south of the Poca- 
 hontas region, it is estimated that 75% of the area is mined on a 
 lease basis; in the Hocking Valley region of Ohio, 75%; in Iowa, 
 more than 70% ; in Arkansas, 60% ; and in Oklahoma, nearly all of 
 the coal land is operated on a lease basis. 
 
 Thirty Per Cent of Coal Land Leased. 
 
 Taking all of our principal coal-mining states, the census figures 
 for 1909 show that out of a total of 6,900,000 acres of coal lands 
 under operation, more than 2,000,000 acres, or 30% of the whole, 
 
ALASKAN PROBLEMS 381 
 
 was in 1909 operated under a system of private leases. It is there- 
 fore substantially correct to say that, whether we like it or not, the 
 choice is not as to whether we shall mine our coal on the lease- 
 hold system, but whether we shall mine it under leases from private 
 owners or from the Government direct. That the consumer has 
 everything to gain under the governmental leasehold must be ap- 
 parent, for the Government can make its royalties as little as it 
 chooses and it has no invested capital and no unearned increment 
 on which to pay returns. Opposition is to be expected only from 
 those who wish to secure our coal lands for stock jobbing or 
 speculative purposes or so that they may make a greater profit than 
 is essential to secure immediate development. Indeed, immediate 
 development can be assured only under the leasehold system. With- 
 out it there is no reason why private individuals should not secure 
 the property and hold it out of development until they can take 
 advantage of the increasing demands of the future. Expedients 
 could be adopted in the effort to enforce development by requiring 
 the purchaser to mine a certain amount of coal or to expend a certain 
 amount of money in developing the land under pain of forfeiting his 
 title to the Government, but this, after all, is only a crude and 
 awkward device for securing what can be far more effectively se- 
 cured by means of lease. Indeed, these devices are economically 
 unsound, for they compel development whether the immediate mar- 
 ket justifies it or not. The leasing system, upon the other hand, can 
 be given much of the flexibility necessary for meeting automatically 
 the fluctuating demands of the market. 
 
 The opponents of the leasing system delight to dwell upon the 
 fact "that in the first half of the last century the Federal Govern- 
 ment undertook to lease the lead mines on the public domain and 
 that the effort was not a success and was abandoned in 1847, but 
 when we consider the conditions under which the attempt was made, 
 and especially that the leases were limited to five years, with a 
 royalty of one-sixth of the lead for Government use ; that the valid- 
 ity of the leases was constantly attacked upon the ground that the 
 statute did not contain the necessary provisions for carrying it into 
 effect; and that the system was permeated with the same kind of 
 fraud and evasion which until recently characterized the operation 
 of certain of our later land and mineral laws, we can understand 
 the failure and that the experiment is of no value whatever in de- 
 termining the merits or demerits of a properly drawn and properly 
 enforced law for the leasing of the public coal lands of today. The 
 whole experiment was carried' on under such crude and inefficient 
 
382 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 methods that the total rental received by the Government for the 
 four years ending with 1844 was on ty $6,35474, while the expenses 
 for the same period amounted to $26,111.11. 
 
 A few persons who have expressed themselves as being "un- 
 alterably opposed" to a leasing system for the coal lands of Alaska 
 have stated that they were unalterably opposed to it because, in the 
 first place, it would be impossible to get any leasing legislation 
 through Congress; and in the second place, if a leasing bill did 
 pass Congress, it would be impossible to get anybody to work coal 
 lands on a lease basis. I need not discuss at this time what Con- 
 gress may or may not do, except to say that, in my judgment, Con- 
 gress is far more likely to pass a rational leasing measure than it is 
 to throw the coal fields of Alaska open for unrestricted private 
 exploitation. 
 
 Practicability of Leasing System. 
 
 As to the second of these objections, whether or not the leasing 
 of the coal lands in Alaska is a practicable proposition, let us see 
 what the experience has been with reference to such a proposition 
 in our own and other countries. A similar objection was raised whtn 
 it was propose-d to lease the coal lands in New Zealand and in the 
 Australian States, such as New South Wales, West Australia, 
 Queensland, Victoria, and Tasmania. In each of these far-away 
 countries the local conditions in some respects resembled those in 
 Alaska. They were remote from commercial centers, with meager 
 or no transportation facilities, and industrial development was car- 
 ried on under great difficulties. It was argued in each of these 
 countries that the great need was capital and development, and that 
 the coal fields should be thrown wide open to all who were willing 
 to risk their capital in helping to open up and build up the country. 
 In some cases the sale of the fee was tried; but the wise Anglo- 
 Saxons of that region thought it better as a matter of national policy 
 to keep the ultimate control of these essential resources in the hands 
 of the State, and they adopted a leasing system as the only safe 
 means of doing this. And what was the result? The coal lands in 
 each of these countries have been taken up and are being devel- 
 oped and mined under the leasing system; and under that system 
 coal is not only being mined for home consumption, but it is being 
 exported to our own Pacific coast, and to other countries bordering 
 on the Pacific. The difficulties that stood in the way of leasing the 
 coal lands in those countries were imaginary difficulties, and they 
 disappeared when the matter was put to a practical test. 
 
ALASKAN PROBLEMS 383 
 
 Again, in Nova Scotia and in the far-away Yukon country, 
 where the conditions for investment are even more unfavorable 
 than they are in many parts of Alaska, those who were opposed to 
 the adoption of a leasing system said that it would be impossible 
 to lease public coal lands on any basis ; but when the experiment was 
 tried, parties came forward to take out the leases and are operating 
 the coal lands. 
 
 In our own country, in the states of Wyoming and Colorado, 
 when it was proposed that these states should lease their coal lands 
 instead of selling them outright, it was argued that nobody would 
 take out the leases. But experience has shown otherwise. In Colo- 
 rado in 1900, in addition to the large acreage of coal lands held in 
 private ownership, nearly 6,000 acres of state coal lands were 
 operated under lease, and in 1910 nearly 20,000 acres of the state 
 coal lands were being operated under such leases, with a royalty 
 charge of 10 cents per ton. In Wyoming today more than 3,000,000 
 acres of state lands of all kinds are being operated under 5,700 
 leases. While only a small portion of this acreage relates to coal, 
 the state statistics do not indicate what this proportion is. 
 
 With records at hand giving the results of a large volume and 
 great variety of experience covering the operations of both private 
 and public coal-land leases in our own and many other countries, it 
 should not be difficult to decide upon the ordinary conditions and 
 requirements that should be incorporated in a leasing system for 
 the Alaskan coal fields working conditions that will meet the 
 legitimate demands of the prospector, the investor, and the oper- 
 ator, safeguard the health and life of the mine worker and the 
 property of the Government, to the end that the public may secure 
 an adequate supply of fuel at the lowest cost consistent with these 
 conditions. 
 
 Price Regulation by Government Umvise. 
 
 Some of the bills which have been recently introduced in Con- 
 gress provide that the Interstate Commerce Commission shall 
 regulate the prices at which the coal mined under these leases is 
 sold not only by the miner but by the middleman and the retailer to 
 the consumer. Important as is the question of protecting the con- 
 sumer, it seems unwise that price regulation by the Government 
 should be insisted upon as a necessary feature of a coal-leasing law 
 for Alaska. Obviously such regulation must extend to the re- 
 tailer if it is to do anything but enable the middleman to make 
 the profit denied to the miner. Regulation of this sort would be 
 a new departure in either state or federal administration. It raises 
 
384 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 fundamental questions of public policy about which differences exist 
 that are as yet uncompromising. It would doubtless prevent any 
 early action by Congress. Certainly if enacted in the form pre- 
 sented in these bills, which merely declare the general principle and 
 leave all of the real difficulties to be worked out by the commis- 
 sion and the courts, it would prove a serious, if not prohibitive, 
 barrier to the development of a new country and a new and uncer- 
 tain market. Under these conditions it would seem a sufficient 
 undertaking to inaugurate a new system of tenure, without im- 
 posing upon Alaska the additional difficulties of the administration 
 of a hitherto untried attempt to settle by public regulation what 
 would constitute a reasonable profit for the miner, the whole- 
 saler, and the retailer of coal. It is especially hard to understand 
 how those who doubt the success of railroad regulation in Alaska 
 can now advocate entering the more difficult field of the regulation 
 of commodities. Price regulation has been suggested by some 
 representatives of large corporate interests as a safeguard under 
 which the modern economic tendency toward consolidation might 
 be safely permitted to continue, but the bills referred to do not 
 propose to treat Alaska coal on the principle of a regulated private 
 monopoly. This question should be left for more mature consid- 
 eration as a question of broad general policy, applicable, if at all, to 
 the states as well as to Alaska. 
 
 It may be practicable to provide in connection with the renewal 
 of leases at their termination that such renewals shall be subject 
 to the then existing laws applicable thereto. This principle has 
 been successfully adopted in the Australian leases. Our first 
 leases can well be made more favorable than those which follow, 
 and if they are for resonable but fixed periods, and if we lease only 
 as much of our coal lands as may be required for the existing mar- 
 ket and its effective extension, we can thus proceed experimentally, 
 correcting early mistakes and meeting future conditions as they 
 arise. 
 
 The prime requisites of a leasing system are that only suffi- 
 cient coal lands should be leased to meet the existing market and 
 encourage its development ; that the quantity leased to any one 
 lessee should be limited to the amount that can be profitably mined 
 as a unit and yet be large enough to attract investors ; that the lessee 
 shall pay his royalty as he mines his coal; that this shall annually 
 amount to at least a fixed minimum which will make it unprofitable 
 for him to hold the land without production ; that he shall mine his 
 coal without unnecessary waste and with due regard to the health 
 
ALASKAX PROBLEMS 385 
 
 and safety of his employes ; that he shall not engage directly or 
 indirectly in any combinations, agreements, or understandings to 
 control the price of coal, and that the revenues derived by the 
 Government shall not be used as a source of federal revenue or as 
 a substitute for taxation, but shall be devoted to the development of 
 the state or territory in which the coal is mined. These at least 
 are the principal features which should be embodied in a leasing 
 law. 
 
 .lustralia ami \cw Zealand j : a\'or Leases. 
 From the information which I have at hand, I infer that in 
 Australia and New Zealand the quantity embraced within a single 
 lease does not seem to be limited, but reliance is placed upon the 
 requirements which make it unprofitable for a tenant to lease more 
 land than he really develops. That both the Government and the 
 coal operators are believers in the leasing system is apparent from 
 its universal application and from the investigation made in 1907 
 and 1908 at the instance of President Roosevelt by Arthur C. 
 Yeatch, of the Geological Survey. With regard to the conditions in 
 Western Australia, he says: 
 
 At Kalgoorlie I found the mining men unanimous and emphatic in 
 the indorsement of the statement that the leasing system is a better 
 method of promoting mining development than freehold. The views of 
 Mr. Richard Hamilton, President of the Chamber of Mines and Manager 
 of the Great Boulder Proprietary Co. mine, one of the richest gold 
 mines of the world, carry great weight, as they represent the views of 
 a man who is not only a mining engineer, but a lawyer, a man with' 
 wide experience, and one who speaks only after careful consideration, 
 and then with mature judgment. Man after man in the field said: "See 
 Hamilton; he knows what s we think; he knows the conditions; and 
 what he tells you may be taken as the opinion of the mining men of this 
 country." Mr. Hamilton has spent considerable time in America in 
 studying our mining conditions, and is emphatic in the belief that 
 mining development is promoted more by the western Australian lease- 
 hold system than by the American freehold. 
 
 In view of these facts one may confidently assert that the mining 
 law of Western Australia is, with minor exceptions, regarded as quite 
 satisfactory by the mining interests of the country, and that in the 
 opinion of the mining men development is promoted more by a lease- 
 hold than a freehold tenure. * * * 
 
 1. In Western Australia the population is largely made up of 
 those interested in mining. 
 
 2. Western Australia is a country of great mineral wealth, having 
 produced in each of the last eight years between 1,500,000 and 2,000,000 
 ounces of fine gold, or several times that produced by Alaska, and has 
 for the same period had a greater total annual mineral production than 
 any of the other Australian States or New Zealand, except New South 
 Wales, which surpassed it in 1906 and 1907. 
 
 3. It contains enormous areas yet undeveloped, the state having 
 an area of almost a million square miles, or more than the combined 
 areas of California, Oregon, Washington, Nevada, Idaho, Utah, Colo- 
 rado, Wyoming, and Montana, and a total population of less than one- 
 twentieth of that of all these states, or less than that of the single 
 state of Utah. 
 
386 PROCEEDiXGS AMERICAN MIXING CONGRESS 
 
 4. It is a country in which mineral lands were sold outright, and 
 its mineral laws have therefore been evolved from a basis similar to that 
 which now is, and for many years past has been, commonly accepted 
 as the rule and practice in the United States. 
 
 5. The desire of the Government to promote and encourage the 
 development of its mineral wealth in every way is emphatically shown 
 by the policy of Government aid. This policy in the past has involved 
 enormous expenditure in connection with water supplies for the mining 
 districts, the Coolgardie water system alone (built to pump 5,000,000 
 gallons a day 351 miles to an elevation 1,200 feet above the supply 
 point) involving an expenditure on the part of the Government of over 
 $18,000,000. * * * 
 
 The mining act of 1904 must therefore be regarded not as a theo- 
 retical attempt' of political economists, but as the matured law of a state 
 which has had large practical experience in mining matters, in which, 
 in fact, mining is the principal industry and in which vast areas await 
 settlement and development; a state which has, moreover, in many 
 ways conclusively demonstrated its desire to permit and encourage the 
 development and settlement of its territory. 
 
 And with regard to New Zealand he reports that 
 
 The net result of the administration of the minerals contained in 
 the public domain of the United States and New Zealand for the past 
 60 years is that, while both have provided for the sale of mineral lands 
 and neither has reserved minerals in patents or grants, in the United 
 States all the mineral production is either derived from freehold land 
 or land that is in process of becoming freehold, while in New Zealand 
 90 per cent of the whole mineral production comes from areas held 
 under lease from the Government. Truly, this result but corroborates 
 the statement called forth by the investigation in Tasmania that the 
 patriotic and efficient administration of the land affairs of a country is 
 not a human impossibility. 
 
 The country in which these results have been attained is one of no 
 mean mineral wealth, and is one in which the mining industry is in 
 a very healthy and progressive condition. It contains, in the Waihi 
 gold mine, the most productive gold mine in Australasia and the third 
 or fourth in the world. It has the third most productive colliery com- 
 pany in Australasia, and is second only to New South Wales in its 
 total coal production. It has been the center of several gold rushes, 
 which, following those in California and Victoria, to some degree de- 
 populated the Victorian fields and attracted many from California. Tt 
 has produced in a little over- 50 years more than $350,000,000 worth of 
 gold, and, with but little over one-sixth the area of Alaska, produced in 
 1905 three-fourths as much gold, five times as much silver, and many 
 times as much coal. It has one-third more area and about three times 
 the population of Utah, and in 1905 produced one-quarter more coal, 
 about twice the amount of gold, and one-eleventh the quantity of silver. 
 
 The comparison with the coal production of Alaska is, of 
 course, of no consequence as the coal lands in Alaska were not really 
 open to development in 1905. This, however, does not detract from 
 the value to us of the experience of New Zealand. In the Yukon 
 territory of Canada coal lands are now leased by the government 
 for a term of 21 years at an* annual rental of $i an acre, and hot 
 more than 2,560 acres can be leased by one applicant. The royalty 
 is 5 cents per ton on the merchantable output of the mine. Here, 
 as in Alaska, facilities for transportation are necessary before any 
 extensive development can be expected. 
 
ALASKAN PROBLKMS 387 
 
 Shortly before I went to Alaska I improved an opportunity 
 to discuss the question of its coal development with a group of 
 prominent coal operators in the state of Pennsylvania, and I was 
 surprised to find that they were unanimously of the opinion that 
 the leasing system should be adopted and that only sufficient land 
 should be leased to meet the demands of the market and provide 
 the incentive for developing that market in a vigorous and rational 
 manner. 
 
 Prompt Congressional Action Desire of Alaska. 
 
 When I reached Cordova I was presented with a series of reso- 
 lutions adopted by the Cordova Chamber of Commerce expressing 
 its disapproval of a leasing system for Alaska coal lands. Since my 
 return to the states I have received from the Chamber of Com- 
 merce a most courteous statement to the effect that after further 
 careful consideration the chamber did not now desire to be con- 
 sidered as opposed to a leasing system, and suggesting certain re- 
 quirements or conditions which it believed should be incorporated 
 in leases if such a system is adopted. What is desired in Alaska is 
 prompt action by Congress in some direction that will promote 
 development. 
 
 I have been equally interested in receiving a resolution adopted 
 by the executive committee of an important organization in the oil 
 industry of the state of California stating the conviction that a 
 leasing system was the only way likely to be found out of the ex- 
 isting situation and urging its members to devote their attention 
 to a consideration of the proper terms to be embodied in a leasing 
 law. I have also received from the Philadelphia section of the 
 Mining and Metallurgical Society of America, which embraces in 
 its membership some of the most experienced and distinguished coal 
 mining engineers in the country, a set of resolutions adopted at its 
 meeting on the I7th of this month, after preliminary submission 
 by mail to its members and an extended discussion at the meeting. 
 These resolutions read as follows: 
 
 Your committee find the following conditions existing in the ter- 
 ritory of Alaska relative to its coal resources: 
 
 First. It is essential for the proper development of Alaska that its 
 coal fields be opened for commercial use without further delay. 
 
 Second. There are now known to exist in Alaska but two rela- 
 tively small fields containing high-grade Navy fuel, and inasmuch as the 
 Government now possesses no original source of such supply on the 
 Pacific coast, it is desirable in the interests of national defense that a 
 selected area of these fields be held and operated under the direct con- 
 trol of the Government. 
 
 Third. It is in the interest of conservation, economic operation, 
 and due regard to the public welfare, as well as to the operator, that coal 
 
388 PROCEEDINGS AMERICAN" -MINING CONGRESS 
 
 lands in Alaska be leased and that these leases be made for all the coal 
 in the ground. 
 
 Fourth. The royalties should be low and based on percentage of 
 selling price of the coal at the mines. 
 
 Fifth. The minimum annual royalty should be nominal for the 
 first two or three years after the execution of the lease, in order to per- 
 mit and encourage the installation of efficient and durable equipment. 
 After that; period the minimum per acre should increase more rapidly 
 than the area increases. 
 
 For example, the minimum royalty for 5,000 acres should be several 
 times more per acre than for 1,000 acres. Such a plan would tend to 
 prevent the tying up of large areas of undeveloped coal territory. 
 
 Sixth. A due diligence and forfeiture clause to effect continuous 
 work should be included in the lease. 
 
 Seventh. Leasehold in coal land shall include all necessary mining 
 rights and agricultural rights to the surface. 
 
 Eighth. Leases should not be given for less than 160 acres, and in 
 shape should be square, their boundaries being east and west and north 
 and south. In surveyed territory the boundary lines must conform to 
 governmental subdivisions and consist of four contiguous 40-acre piats. 
 
 Ninth. It should be clearly recognized as a basic principle that the 
 value of coal lands in Alaska to the Nation lies more in their use for in- 
 dustrial, commercial, and naval purposes than in the royalties to be 
 derived therefrom. 
 
 Tenth. It is desirable that the revenue obtained from coal royal- 
 ties revert to the benefit of the territory. 
 
 Eleventh. The quality of Alaska coal varies from poor lignite to 
 high-grade semi-bituminous and anthracite. The physical character of 
 the seams also varies, the best coals being seriously and unfavorably 
 affected by the geologic structure. The high-grade coals of Alaska, 
 which are now available for development under the present state of 
 the art of mining and utilizing coal, are limited in quantity, notwith- 
 standing the exaggerated, reports to the contrary which have appeared 
 in the public press. 
 
 Resolved, That your committee is of the opinion that the present 
 coal-mining conditions in Alaska are unsatisfactory and detrimental to 
 public welfare and that laws should be enacted, based upon the above 
 principles; be it further 
 
 Resolved, That the committee recommends that this resolution be 
 adopted as an expression of the views of the Philadelphia section of 
 the Mining and Metallurgical Society. 
 
 I have already stated that Director Holmes, of the Bureau of 
 Mines, and his associates have personally visited both the Bering 
 and the Matanuska coal fields, and I am glad to be able to say that 
 Dr. Holmes has read this address and concurs in its statements of 
 fact and in its recommendations. That they are infallible I do not 
 claim. It may include inaccuracies of statement and more serious 
 mistakes; but these I reserve the right to correct whenever I dis- 
 cover them or whenever new facts or more mature consideration 
 lead me to a different conclusion. For the present they are offered 
 as definite suggestions for a policy under which the territory of 
 Alaska may be immediately opened for wise and vigorous de- 
 velopment. 
 
 I have been greatly pleased with the fair-mindedness and pub- 
 lic spirit of the Alaskan people on this subject. I believe back of 
 
ALASKAN PROBLEMS 389 
 
 their naturally great and justifiable desire for immediate action 
 they want done in this matter whatever will in the end prove best 
 for Alaska as a wrjole, without regard to special individual or 
 corporate interests ; and I believe that Congress and the American 
 people as a whole will be in accord with that purpose. 
 
 The members of the American Mining Congress can do much 
 i" aid in carrying that purpose into effect. 
 
The Relation of Congress to the Mining Industry. 
 
 BY HON. MARTIN D. FOSTER, 
 ril. MILAIAX OF THE HOUSE COMMITTEE ON MINES AND MINING. 
 
 I am somewhat at a loss in appearing before you on this 
 occasion, especially when I see before me so many men who are 
 practical in the matter of mining. My visit to this Congress at this 
 particular time has been of great interest to me. I have heard sub- 
 jects relating to mining discussed in a most vigorous manner. I have 
 heard subjects which concerned Congress discussed in a way that led 
 me to believe that the speaker believed what he said. I have been 
 interested because I hope that this meeting will be instructive to the 
 people because the people of this country have an interest in mining 
 affairs wherever they may be. We have heard much today of the 
 Bureau of Mines, and I am glad to know and to say to you that I 
 believe that that bureau has just begun its work. Under the leader- 
 ship of Dr. Holmes, who is enthusiastic in his work, aided by the 
 capable assistants he has about him, and with the proper means that 
 ought to be given him, I am sure that he will accomplish much in 
 the line of work that he has undertaken. 
 
 Originally the chief object of the Bureau of Mines was to con- 
 serve the lives of those who worked in the mines. During its brief 
 existence of one year much has been accomplished, and in a few 
 years I hope that it can be said of the United States that there is 
 less loss of life and fewer accidents than any other country in all the 
 world. 
 
 We believe that with the proper education of miners, of the 
 operators and of the people generally that mine accidents may be 
 reduced to a minimum, that the proper apparatus may be at hand 
 whenever an accident does occur in a mine that will still further 
 reduce the loss of life. But there is further work along these lines. 
 It has been a question in Congress for at least five years, according 
 to my experience, and there has been agitated the question of mining 
 schools in all the states and territories of this Union. I am glad that 
 we have made some progress at least, and I hope that in the future 
 we may see the establishment by federal aid, where they are not 
 already established, and where they are that they may be given aid so 
 that this great work of educating young men in mining may go for- 
 ward to better and higher results than those today. You are all 
 
RIf.LATI.OX OF COXGRESS TO MIX1XG INDUSTRY 391 
 
 familiar with the agricultural colleges and how they were given aid a 
 long time ago. You have seen these colleges grow and grow until 
 they have been made powerful institutions of learning in the country. 
 
 It was told to me by Mr. George W. Hill, who was in Washing- 
 ton City and in charge of the division of publications, that he used 
 to come to Illinois and try to talk to the president of the agricultural 
 college, in an endeavor to learn what he was doing at Champaign, 
 and he said that he could hardly get him to speak to him at all about 
 the students that he had or of the college he was conducting. He 
 eventually found the reason why, and that was that he 'had three 
 students and they met in the basement of the University. I am glad 
 to say that under state and federal aid that this institution has grown 
 until we have a thousand men being educated year after year in the 
 science of agriculture. This condition ought to exist in mining, be- 
 cause next to agriculture comes the industry of mining in this coun- 
 try. I know you are enthusiastic in your work and I hope that you 
 may put the same enthusiasm into your work with the national con- 
 gress to put through a bill to give aid to mining schools in all the 
 states. 
 
 .llaskan Questions to Come Before Congress. 
 
 We have now in the committee of which I have the honor to be 
 chairman, sub-committees appointed who are expected to take up 
 these different questions and report early at the next session of 
 Congress. I heard much today of the mining interests of Alaska, 
 and T would not speak of this in view of the fact that my good 
 friend, the Secretary of the Interior, is here now, except that these 
 questions will come before the next session of Congress, and I hope 
 that some settlement may be made of this great question. I am glad 
 to say that there is a sub-committee working upon this question of 
 mining and certain mining laws in Alaska, which I hope when put 
 in operation, will prove to all the states what a model mine may be 
 when established under the federal control of this government. 
 
 r.ut I want to remind the American Mining Congress of this, 
 that while I am in sympathy with all that has been said here as to 
 the speedy opening of the coal mines of Alaska, because I believe 
 that those people in that faroff country are entitled to the fuel that 
 is stored up there, I want to emphasize this fact upon you and the 
 American people, that I believe that any law which is proposed 
 cannot pass Congress unless it provides for the conservation of the 
 great wealth in that faroff country. Proper conservation, my 
 friends, for the people of this country believe in proper conserva- 
 tion. 
 
392 PROCEEDINGS . \.MKRICAN MINING CONGRESS 
 
 It may be said that Alaska should be treated as the other terri- 
 tories of this country were treated, but I want to remind you that 
 after passing through numbers of years during which our resources 
 have been squandered, that we have come now to a time when we 
 are getting down to the bottom. We have Alaska left and this must 
 be preserved, that the people may have the benefit of its resources. 
 
 I remember this, my friends, that it cost the government more 
 than $100,000 to determine what water might be taken from a 
 stream, and then, when that water was taken, a franchise was given 
 to a water* company, two of them, I might say, who then com- 
 bined and had the absolute control for a period of 99 years without 
 one cent accruing to the national government or any one else, and 
 they charged the people of the community in which that water 
 power was delivered what they saw fit, and those people were help- 
 less to do anything for themselves. 
 
 I believe, my friends, it is our duty, I believe it is the duty of 
 Congress in all fairness and right and justice to the people of Alaska 
 and of right and justice to the people of this country, that proper 
 conservation o'n a proper plan should be evolved whereby this great 
 treasure may be retained and preserved for the people and not fall 
 into the hands or monopoly of one, two, three or half a dozen men 
 who use it for a selfish purpose. 
 
 Leasing System May be Solution. 
 
 Any one who read the proceedings of the last session of 
 Congress could get some idea of what conservation means. I would 
 say tonight, good friends from Alaska, that you are clamoring that 
 these mines should be opened, and I see you have a reason for so 
 doing. I agree with you in that, but I want to say to you that there 
 are other places in the United States, places in our own country and 
 within our own borders, where Congress has refused and where a 
 question has been debated on the floor for three or four days be- 
 cause they did not propose to give a monopoly of a water power to 
 any company. So you are not the only ones who may feel that you 
 have been imposed upon in this manner. A proper leasing of the 
 coal lands of Alaska may be the solution of that proposition, but I 
 want to be frank with you and say this tonight, that there appeared 
 in one session of Congress a bill which proposed to fix a maximum 
 rate for coal to be mined in that country. Did you ever, hear of a 
 man going out and saying to his boy or to his agent, "Take my 
 horse to the market"?. You can not ask that he shall not sell the 
 horse for more than $100. 
 
RKLATfOX OF COXGRKSS TO MIX1XG IXIH'STKY 393 
 
 1 want to say that when the coal mines of Alaska are opened, if 
 thev are, opened, by a leasing system, that the government has a 
 right to receive what any one is willing to give. These are questions 
 that are coming before the next session of Congress, when I hope 
 they will be settled , in a satisfactory manner. There will be extreme 
 views on conservation and there may be extreme views on 
 the other side, that believe all the benefit should be turned 
 to those who may get there first, but through it all will come ,a 
 compromise, I hope, that will result in these coal mines being opened, 
 and then this treasury will be preserved in some way for the people 
 for all time to come. It does not matter whether the lease is long 
 if the property is safeguarded, and, my friends, I care but little 
 and 1 don't believe that Congress will be so much concerned in what 
 revenue might come to the national government, but I believe that 
 they ought to be concerned about what that coal shall be given to 
 the people for, and what price shall be charged to them. It ought to 
 be a reasonable price. I don't believe that we ought to go out into 
 the business of fixing prices upon all commodities, but I do believe 
 that the people have a right to'expect their lawmakers to see that no 
 monopoly gains control of the staple commodities. 
 
 Now, my friends, I don't want to take too much of your time. 
 I am glad to meet with you. I am glad to hear the expressions 
 that I have heard today, and I want to say that publicity should be 
 given to the views that you have expressed here in this meeting. 
 The public should know your views as practical men upon mining 
 subjects. Congress should know, because you are practical miners, 
 you know what it is to open a mine, you know what it is to operate 
 a mine, and that knowledge should be given to men who have these 
 matters in charge and who pass laws for the proper regulation of 
 this industry. 
 
 I thank you for the honor of appearing before you at this time, 
 and desire to assure you that my work in connection with the com- 
 mittee on mines and mining shall be in the interest of the develop- 
 ment of^the mining interests of the country, and the conserving of 
 these resources and above all the conserving of the human life of 
 those who have to work in the mines. 
 
The Government and the Mining Industry. 
 
 IJY HON. \V1L,L.1AM HOWARD TAFT, 
 HIKSIDKNT OF THE UNITED STATES. 
 
 Mr. Chairman, and Ladies and Gentlemen : I am not here this 
 morning to make an address. I am here merely to extend greetings 
 to the American Mining Congress. Circumstances change and 
 men change with them. In the early days of this Republic it was 
 thought, it was advocated, that those who were the least governed 
 were the best governed. The laissez-faire school which even ob- 
 jected to a government postoffice for a long time had control, and it 
 was thought that- it was not the business of the general government 
 to interest itself in anything except the maintenance of the army 
 and the navy, our foreign relations, the judiciary and the policing 
 of the territories. But, as I say, times have changed, and we have 
 reached a conclusion, and I believe it is a wise one, that there are 
 a great many things in which the united effort of the people through 
 its government can be of assistance to the people at large, which 
 cannot be trusted to individual enterprise and individual investment. 
 The postoffice department is one thing, and growing out of the 
 postoffice department are the postal savings banks and doubtless 
 within a reasonable time we shall extend that to the parcels post. 
 (Applause.) 
 
 There is in the constitution a clause that used to act like a 
 nightmare on our democratic ancestors. The Whig ancestors were 
 not so startled, but our democratic ancestors always thought that 
 the general welfare clause of the constitution was an invention of 
 the devil who got into the constitutional convention. (Laughter.) 
 But as time has gone on the usefulness of -that omnium-gatherum 
 clause which gives to the federal government the right to spend 
 its money in almost any direction that Congress thinks is useful to 
 the people at large, has come to be a most admirable place from 
 which to initiate useful movements. 
 
 In 1862. when the homestead law was passed there was estab- 
 lished a department of agriculture. It was called a department, 
 but the man at the head of it was not a cabinet minister, and he 
 did not become so until many years afterwards. At that time per- 
 haps the Government had enough interest of a proprietary char- 
 acter in land to assume the attitude of the farmer and to spend 
 
GOVERXMKXT AXI) THK MIXIXO INDUSTRY 395 
 
 money to find "out how farms ought to be run. But now that all 
 the public land is practically disposed of, it is difficult to support 
 the expenditures of the agricultural department on the theory 
 that the Government is a proprietor, and therefore authority for 
 the expenditures can only be found in the general wel'fare clausi- ; 
 yet we are going on spending $15,000,000 a year in agriculture. 
 We spent more than $50,000,000 trying to wrest from nature the 
 secrets that will enable us to increase the product per acre of the 
 land of which we now have none too much. You know that from 
 the last census it appears that there was only 4 per cent increase of 
 the total acreage of farms; there was only 15 per cent increase in 
 the improved acreage of farms. There was 21 per cent increase in 
 the population, and there was 100 per cent increase in the money 
 value of farms. There was the same increase in the farm prod- 
 ucts. The farm values increased from 20,000,000,000 to 40,000,- 
 000,000; the farm products per year increased from 4,000,000,000 
 to 8,000,000,000. Now these indicate that we are reaching the 
 limit of tillable soil in this country, but if we go on increasing our 
 population as we have heretofore, by 1950 we shall have a popula- 
 tion of 200,000,000. With that number of mouths to feed and 
 with substantially the same acreage on which to feed them, I say 
 substantially the same, we may increase by reclamation and irriga- 
 tion and drainage so as to have 950,000,000 acres instead of 883,- 
 000,000, but we have got to go on and increase the production per 
 acre, and the chief instrumentality for doing that is the agricul- 
 tural department, acting in connection with the agricultural bu- 
 reaus of the various states, which does a work not executory but 
 a work of research, of investigation, of experimentation and of ex- 
 ploitation and publicity of the results of the work. 
 
 Importance of Mininy Industry. 
 
 Now no one, I think, would contend that we ought to give up 
 the agricultural department. I don't care how much he might wor- 
 ship at Jefferson's tomb, or how much he might have in times past 
 considered the welfare clause the invention of the devil, he now 
 would admit that at least so far as the agricultural department is 
 concerned, we must continue in the error which we originally estab- 
 lished, because it has been so beneficial to the people. So it is with 
 respect to the mining industry. Next to the agricultural industry it is 
 perhaps the most important we have and one which spreads over 
 all the states. It divides itself into so many different varieties and 
 is so widespread, that no one state can give to the research in- 
 vestigation and general pulication of the results, the money and 
 
396 PROCEEDINGS AMERICAN MINING CONGRESS 
 
 the time and the attention and the number of people required in 
 order that we should make progress. This is especially true with 
 reference to the saving of the lives of miners engaged in the mining 
 industry, and I am glad to note that Congress has passed a law 
 creating a mining bureau. (Applause.) It does not argue neces- 
 sarily that we ought to have a bureau for any particular thing 
 because those who are interested in that particular thing ask for 
 it. They want a bureau for everything in Washington. I could 
 give a dozen different subjects ; one is for children, and another 
 well, that perhaps is nearer reason than most of them, but one day 
 when I was preparing my annual message for Congress, I had a 
 solemn delegation that came in and asked me to recommend to 
 Congress that we have a bureau on earthquakes. Well, of course, 
 if Congress were to yield to that on the theory that we ought to 
 have a bureau of investigation for every subject of any interest at 
 all to the public, Congress would be engaged in creating new- 
 bureaus every year, and the difficulty about creating a new bureau 
 is that it is like swarming into a new house. There are certain 
 expenses that are added to the governmental roll of expenses that 
 never are reduced thereafter, and that is the reason why the ap- 
 propriation committees are so reluctant and hesitating in respect to 
 the making of any new bureau at all. But you have a new mining 
 bureau now established, and that it will grow by the application of 
 some very diligent and earnest efforts on the part of the present 
 head of the mining bureau, I haven't the slightest doubt. 
 Metallurgical Problems Will Receive Attention. 
 
 Your president suggested something with reference to the 
 precious metals, and that it will have attention I haven't any 
 anxiety on that subject at all. Congress will be advised fully as 
 to its necessity, and if by nothing else but mere force of attrition 
 it will be brought in the course of a few years to make all the 
 provision that is needed there. 
 
 You heard last night a very interesting address from the Sec- 
 retary of the Interior as to mining and the general subject of Alaska. 
 I read the address last night, and I only want to say that I enjoyed 
 the reading and approved it. He said in advance that he had pub- 
 lished the address with my consent, after a general discussion with 
 me, and now I want to make the confirmation comlpete. (Ap- 
 plause.) If the Secretary of the Interior would straighten out 
 Alaskan matters and eliminate rodomontade and muckraking, and 
 everything else that has interfered with the progress of Alaska, and 
 put her on smooth seas and lead her on to only reasonable develop- 
 
GOVERXM KXT A X 1 ) T 1 1 I-: M I X I XG I X DL'STK Y 397 
 
 ment, he will earn my undying personal gratitude (applause), as 
 well as my patriotic rejoicing as a humble citizen of the United 
 States. (Applause.) 
 
 I believe Alaska has a great future before it, but it has been 
 hindered by a sharpness and acuteness of discussion with refer- 
 ence to what shall be done, and an unnecessary ascribing of evil 
 motives to those who were engaged in trying to promote its 
 interests. Now we have got perhaps to a lull in the surface water 
 I am not speaking with confidence yet (laughter) perhaps 
 there is a lull that we may go ahead to something really of sub- 
 stantial benefit for that great empire there of people who are 
 struggling to develop it and who are entitled to our sympathy in 
 their efforts. (Applause.) 
 
 Now, as I say, I am here to extend very cordial greeting, and 
 I sincerely hope that this meeting will bring about a conference of 
 resolutions and conclusions that will be useful in the general cause. 
 I presume that these conventions have a great deal of use in that 
 regard, and while I am not a technical miner and know very little 
 about it, I shall always hold myself in Washington ready to hear 
 suggestions and to help where I can put in my oar. T thank you 
 very much. (Applause.) 
 
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