82 CLASSIFICATION OF THE PUBLIC LANDS. 



the royalty rate itself is based on the average difference between the 

 cost price of the coal ready for sale anfl the sale price— that is, on 

 the profit. If competition is keen and the profit is low, these facts 

 are reflected in a low royalty rate. Whatever affects the profits 

 affects the royalty rate and correspondingly the value. Other things 

 being equal, the lower thegrade of coal the less readily it sells and the 

 less the profit, the royalty, and the value. On the other hand, the 

 more expensive the coal is to mine the less the profit, the royalty, and 

 the value. The Government valuations can not take account of 

 changes in competition, markets, transportation facilities, or freight 

 rates, or other factors that affect the profit, but it can and does take 

 account of the quality and character of the coal, both chemically and 

 physically, which affect the sale price and so the profit and value, 

 and of those natural factors that affect the mining cost. The most 

 important of these factors are thickness and accessibility. 



BITEOT OV qTTAT.-prv ON PBICB. 



One cent per ton is therefore the price put on a good average coal — 

 a noncoking bituminous coal of 12,500 B. t. u. heat value, 6 to 10 feet 

 thick, and at the surface. For coals of other B. t. u. value the same 

 rate of one-tenth cent for each 1,250 B. t. u. is applied, and provision 

 is made for increasing this value (not to exceed 100 per cent) for 

 coking coal or coal that has special qualities which enhance its value 

 in the market, the percentage of increase depending on the quality 

 of the coke it yields or the extent to which its special qualities en- 

 hance its value ; and on the other hand provision is made for reduc- 

 ing the appraised value because of special impurities, such as sul- 

 phur, or because of physical defects that obviously detract from the 

 market value. 



KFKEOT OF lUdNTNa OOSX OlS PBld^. 



The cost of mining coal is affected by many factors — such as cost of 

 prospecting, shaft sinking, or other mine opening, surface and under- 

 ground plant, perhaps community plant, water, supplies, timber, 

 feed, and insurance — all of which vary from place to place or in 

 accordance with the method of working the mine. Within the mine 

 the main factors are mining rate, thickness, depth, and dip or pitch 

 of bed, variations or irreguarity in thickness, partings, " sulphur " or 

 other impurities that must be removed, kind of roof or floor, presence 

 of gas or water, provision for drainage and ventilation, haulage and 

 hoisting, faults, and igneous intrusions. Many of these factors 

 give rise to problems for the engineer; others definitely affect the 

 value of the land for coal mining. One of the factors of the latter 

 class — thickness— has so definite and constant a relation to the cost 

 of mining that it must be taken into account in detennining the value 

 of all coal land. 



