LABOR COST OF COAL.

Mataura Ensign, 17 April 1912, Page 2

LABOR COST OF COAL.

ABOUT 6s PER TON. Before we can generalise about profit-sharing ... we need to have precise figures showing what is the value of the labor expended on a ton of coal and what is the profit it produces to the coalowners. —'Westminster Gazette.'

To find with exactitude the average wages cost per ton of coal raised, or the average weekly wage per worker, or the average profit per ton, is, of course, impossible; but it is not difficult to get near enough to the mark for all practical purposes of public interest (stated a writer in the 'Daily Mail' on February 27). From such facts and figures as are available it is evident that, taking a reasonable period of years, for every penny taken by capital labor gets just about a shilling in the coalmining industry. Let us quote the figures. 1 In 1910, the last year for which we have records, there were employed at our coal mines 1,049,000 workers—the I ; average for the five years, 1906-10, being 974,000. The quantity of coal raised in the year was 264,433,000 tons, the annual average for the five years being 281,726,000 tons. Taking the and knocking off the 74,000 workers as being engaged at by-product plants or other work not actually coal-raising, we are- loft with 900,000 men to raise 2613 million tons, or an output of 290 tons per person employed. Tin's is, roughly, ton per man per day. Now let us turn to the value of the product. Averaged over the five years, the pit-mouth value of coal has been within a fraction of 100 pence, or 8s 4d toll. In other words, 8s 4d is the value of the product of one man's labor for one day. But it must be observed that the miner could not raise this 100 pennyworth of coal without the assistance of capital, and the machinery, plant, equipment, horses and. materials supplied by capital. How many of these 100 pennies are taken by labor, and how many by capital? We shall, we claim, be within the mark if we put the average wage at either 30s per week, or at 6s per day, five days a week. Allowing for fractions, this works out at 70 pence, or 5s lOd per ton for wages alone. If we add to this considerations for free coal and free houses, wo may fairly put the labor cost of a ton of British coal at a square 6s. This absorbs 72 of the 100 pence per ton, leaving 28 pence, or 2s 4d, per ton, to pay rents, royalties, and wayleaves ; cost of proving, sinking, plant and equipment; costs of timber and horses, rates and taxes, management and commissions, and dividends on capital all told.

FroKs cf thz Companies,

For an opportune illustration of the enormous profits that can be and are being made in the coal trade wo have on'v to look at the report of one of the colliery companies now being issued (uiji.'.i -Charles JJuguid in the 'Daily Mail'). It is that of D. Davis and Sons, Ltd., the big South Wales colliery company, which is taking an interest in the North's Navigation Colliery and other concerns. The report shows a profit of £155,000 for the past year, and this will suffice- to pay the preference dividend, as high a rate as 10 per cent, on the ordinary shares, to appropriate £50,01)0 to reserve, and £BOOO for capital expenditure, and to increase the amount carried forward to the large sum of £102,000. The year is not exceptional as far as these results are concerned. The comn:v."- lias paid a dividend of as much as 10 per cent, on its ordinary shares tor eacii of the past 12 years except 1905.