The system of leasing coal lands to coal operators is a very common
one, especially in the Wyoming valley, where the surface is so richly
adapted to agricultural uses. The proprietor can, in this way, retain
the use of the soil, and at the same time reap a handsome profit from
the development of the mineral deposits beneath it. He invests no
capital, runs no risk, and is sure of a steady income. As it is usual
to work leased coal seams, wherever convenient, from openings made on
the adjoining lands owned by the company, it is not often that the
surface of leased property is interfered with, or if it is, but a
comparatively small area of it is taken. The contract of lease usually
stipulates that a certain royalty shall be paid to the lessor for each
ton of coal mined, and it binds the lessee to mine not less than a
certain number of tons each year; or at least to pay royalties on not
less than a certain number of tons each year, whether that number is
or is not mined. Twenty years or more ago coal lands in the Wyoming
district could be leased at the rate of ten cents per ton. Lately a
large body of coal land was rented to the Lehigh Valley Coal Company
at forty-five cents per ton, and it is said that one proprietor at
Kingston has been offered a lease at fifty cents per ton, and has
refused it. Perhaps from twenty-five cents to thirty-five cents per ton
would be an average rate.
As an example of the immense purchases made by these companies, it may
be noted that the Philadelphia and Reading Company, in 1871, purchased
one hundred thousand acres of coal lands in the Schuylkill region, at
a cost of forty millions of dollars. And as an example of the amount
of business done in a year, it may be noted that the Delaware and
Hudson Canal Company paid in 1887 $5,019,147.16 for the single item of
mining coal, and that their coal sales for the same year amounted to
$10,100,118.69.
Public-domain text, read in full here on John Shaqi.
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