McGr a w- Hi l l
Pu b l i s h i n g Co m p a n y, In c. J a m e s H . M c G r a w . President E. J. M e h r e n , Vice-President
Devoted to the Operating, Technical and Business
Problems of the Coal-Mining Industry
R . Da w s o n Ha l lE n g i n e e r i n g E d i t o r
V o lu m e 29 N E W Y O R K , J U N E 10, 1926 N u m b e r 23
H o ld in g D o w n th e P ea k s
I N M IN IN G an d o th e r p la n ts t h a t o p erate on p u r chased c u r re n t, peak loads c a rry a stro n g pen alizing charge. T he m o n th ly peak th u s h a s alm ost as m uch influence on th e pow er bill as does th e ac tu al consum p
tion of c u r re n t. T he h ig h p o in ts, o r excessive dem ands, th e re fo re , should be avoided by all m eans possible.
C e rta in in d u s trie s t h a t have a h ig h ly flu c tu a tin g load and a p eak t h a t can be fo re to ld w ith a f a ir deg ree of accuracy have fo u n d it ad v a n ta g eo u s to in stall in te rn a l com bustion en g in es o f th e D iesel ty p e th a t can be s ta rte d p ro m p tly an d w hich will sh ould er th e load in excess of a c e rta in p re d e te rm in e d q u a n tity .
A t th e m in es th e m axim um dem and usually develops about 8 a.m . an d b eg in s to fall off som etim e b efo re noon.
A t some o p e ra tio n s a seco n d ary peak m akes its a p p e a r
ance a t ab o u t 3 p.m . an d subsid es w ith in ab o u t an h ou r.
In both o f th e se cases an a u x ilia ry source of pow er could be a d v a n ta g e o u sly em ployed to keep th e dem and upon th e c e n tra l s ta tio n w ith in re aso n ab le bounds, or such t h a t heav y dem and ch a rg e s w ould be avoided.
In a d d itio n to its use in alle v ia tin g o r lessen in g th e dem and c h a rg e , an d w hich re s u lts in some in d u s tria l cases in sa v in g s sufficient to pay fo r th e equ ip m en t in fro m 3 to 4 y e a rs, such a u n it w ould alw ays be a v a il
able as a s ta n d b y in case of pow er fa ilu re on th e line.
A u n it o f th is k in d can be s ta r te d quickly an d should logically be m ad e of such pow er as to be capable of o p e ra tin g th e fa n an d m a te ria l h o is t in case of em ergency. I t w ould th u s serv e as a sta n d b y as well as an a u x ilia ry .
I t w ould p ro b a b ly be q u ite possible to so a r ra n g e a u n it of th is k in d t h a t it could be s ta r te d an d stopped a u to m atically . I t w ould th u s come in to o p eratio n w h en ever th e load re ach e d a c e rta in p re d e te rm in e d am o u n t and w ould be sto p p ed w hen th e load h ad fallen to some o th e r p re -e sta b lish e d low er level. Such an a rra n g e m e n t would no t only prov e ideal fro m th e s ta n d p o in t o f p eak load avoidance, b u t w ould f u r n is h a re a d y source of en erg y in case of pow er fa ilu r e or on idle days.
im m ense sto ra g e spaces a g a in s t floods, b u t if th e old room s a re full of slack th e re will be in cre ased cost in th e re p a ir of all pum ps and pipes. Too o ften th e room s chosen fo r such sto rag e have been abandoned fo r y e a rs and cannot safely be cleaned, and th e w a te r h a s to be dam m ed back to such a h eig h t, in o rd e r to reach all p a r ts of th e te r r ito r y , th a t it rise s h ig h on th e coal and p ro c u res acid fro m th e rib s.
W here it is possible it is b est from an a c id ity s ta n d p o in t to pum p w a te r in a sin gle lift th u s re d u c in g its o p p o rtu n ity to ta k e up acid along its p ath .
E vading A cid
F OR M A N Y o f h is pum p-, pipe- an d screen -co rro sio n tro u b le s th e m in e m a n a g e r can la rg e ly blam e h im self because he h a s n o t le a rn e d as y e t how to p ro te c t fro m th e p o llu tio n of w a te r t h a t h e h a s to rem ove fro m th e m ine. I f h e c re a te s a s to ra g e place fo r w a te r in th e m in e he w ill do w ell to rem ove all slack a n d loose coal b e fo re tu r n i n g in th e w a te r, b ecau se th e slack in ev itab ly c o n ta in s a q u a n tity o f p y rite w h ich o x id a
tion in th e p re se n c e o f w a te r w ill t u r n to iro n h y d ra te and s u lp h u ric acid.
T he te n d e n c y to d a y is to lim it e le c tric load peak s by
i-,11 n ig h t a n d to a r r a n g e
“ E ating T h eir H eads O ff”
T O M ANY M IN IN G executives th e w ords “obso lete"
and “w orn o u t” a p p e ar to be synonym ous. T h is m ay o r m ay no t be th e case, b u t pro b ab ly in th e m a jo rity of in stan ces equipm ent, tools an d ap plian ces become obsolete long b efo re th e y a re w orn out. In a n y good m useum m ay be seen n u m ero u s a rtic le s t h a t a re , to all in te n ts an d purposes, exactly as serv iceab le to d a y as w hen th ey w ere first co n stru c te d h u n d re d s o r pos
sibly th o u san d s o f y e a rs ago. A sto ne m ace, fo r in stance, m ig h t crack a skull j u s t as efficiently now as in th e days of th e P h a ra o h s , b u t who would th in k of a t te m p tin g to ro u t a b u rg la r fro m h is hom e w ith such a w eapon w hen he h a s every reaso n to believe t h a t t h a t in tru d in g in d iv id u al w ill be arm ed w ith a m o dern a u to m a tic p isto l?
One o f th e ch ief reaso n s w hy th is c o u n try h a s fo rg e d ahead of its co m p etito rs in m a n u fa c tu rin g is b ecause it h as co n sisten tly an d p e rs is te n tly th ro w n p e rfe c tly good m ach in e ry on th e scrap heap. T h u s a m a n u fa c t u r in g la th e m ig h t be capable of la s tin g fo r 20, 30 o r even 50 y e a rs an d do j u s t as good an d a c c u ra te w o rk a t th e end of th a t p erio d as a t th e b e g in n in g . A t th e te rm in a tio n of th e firs t decade, how ever, th e p ro b a b ili
tie s a re th a t such m ark e d im p ro v em en ts w ill h av e been m ade in th e d esign of m ach in es of th is k in d t h a t one th a t is 10 y e a rs old can be o p e ra te d only a t a loss. In o th er w o rd s it would be f a r c h e ap er to sell th e old, a lb eit p e rfe c tly serviceable m achin e, f o r ju n k a n d bu y a new one th a n to co n tin u e its o p eratio n .
A nd w h a t is tr u e of such m ach in es as la th e s in a m a n u fa c tu rin g p la n t o ften is tr u e of p ro d u c tio n m a ch in ery a t th e coal m ine. D u rin g th e p a s t fe w y e a rs such im prov em ents have been m ad e in b o ile rs a n d p o w e r-g en e ratin g m a c h in e ry in g en e ral, t h a t m a n y pieces of eq u ip m en t t h a t w ere in stalle d only a c o m p a ra tively sh o rt tim e ago an d w ere a t t h e ir in s ta lla tio n ju s t ly considered efficient, a re to d ay obsolete in th e sen se t h a t it would be c h e ap er to sc ra p th e m an d in s ta ll n e w e r a n d m ore u p -to-date a p p a ra tu s . T h e e v e r-in c re a s in g con
sum ption of en e rg y re s u ltin g fro m th e m e c h a n iz a tio n of m in in g processes fo rm e rly p e rfo rm e d b y th e muscles
of m en o r an im als m akes th is only th e m ore ad v isab le .
823
824 C O A L A G E V o l . 29, No . 2 3
The sickle and flail a re unquestionab ly ju s t as effi
cien t a g ric u ltu ra l im plem ents today as th ey ever w ere b u t th ey a re seldom used because th e y cannot com pete w ith th e self-b in d er and th e th re sh in g m achine. Cheap as these devices are, because of th e m u scu lar en erg y th a t m u st be expended in th e ir use, th ey a re obsolete and discarded. A lthough ju s t as efficient as ever w ere th e y to be used today th ey would, figurativ ely, eat t h e ir heads off.” The sam e is tru e of m any o th er pieces o f equipm ent in all in d u stry , m in in g included, w hich, because of th e onw ard m arch of p ro g ress, have gone, a re going, o r a re doomed to go th e sam e road.
B ecause of th is obsolescence, th e re fo re , every p ro gressive m in in g official m ay w ith w isdom periodically ask h im self th e q u estio n : “ How m uch longer can I a f fo rd to o perate th is or th a t p a rtic u la r piece of equip
m e n t? ” I f th e conditions and p o ssib ilities involved are carefully w eighed some executive m ig h t be s u rp ris e d a t th e p ro p o rtio n of h is equipm ent th a t would find its way to the scrap heap to be replaced by new er and m ore efficient m achines. M any an old engine, boiler, coal c u t
te r and th e like, althoug h in perfectly good condition and capable of re n d e rin g y e a rs of service, is in re a lity
“e a tin g its head off.”
Stronger T han Statutes
T H E ORGAN IC ACT c re a tin g th e B u re au of M ines gives th a t agency of th e fed eral g o v ern m en t no m an d ato ry pow ers over th e o p eration of th e coal m ines of th e country. In th e lig h t of th e S uprem e C ou rt ru lin g th a t m in in g is not in te rs ta te comm erce, an y a t tem p t to vest such a u th o rity in th e B u rea u would be open to challenge on co n stitu tio n a l grounds. A nd yet, in c e rta in directions, th e B u reau of M ines exercises a control m ore p o ten t th a n probably would be possible u n d er a specific s ta tu to ry g r a n t o f a u th o rity .
The B ureau of M ines determ in es w h a t explosives m ay be used w ith safety . I t pronounces ju d g m e n t upon th is and th a t type of equipm ent. In th e course of its stu d ies to m ake th e m in in g of coal a less h az ard o u s occupation, it condem ns th is p ractice and sets th e seal of approval upon th a t— and its recom m endations a re w ritte n into th e law s of c e rta in coal-producing sta te s . E ven w here sta te law s are silent upon th e p ra ctices in do rsed by th e B ureau, th e re a re few o p e ra tin g officials of coal-produc
in g com panies who care or d are to ru n co u n ter to th e seasoned opinion of th e B u re a u ’s staff.
W hence comes th is pow er? How is th e B u rea u of M ines, lacking a u th o rity itself, able to estab lish and m a in ta in its co n tro l? P u b lic opinion is th e answ er.
As an independent, non-pofifical,'"'technically-trained o r
g an iza tio n , th e B u reau of M ines h as en listed public confidence in its w ork. Because of t h a t public con
fidence, its lead ersh ip in th e s a fe ty m ovem ent is u n q uestioned. M a n u fa c tu re rs of explosives and m in in g m ach in e ry striv e fo r its indorsem en t. S ta te m in e in sp ecto rs, co al-o perating officials an d th e ir s u b o rd in a te s seek to keep w ith in th e lines of th e B u re a u ’s recom m en d atio n s as a su re p ro tec tio n a g a in s t public cen su re in th e case of accidents.
No one w ill deny t h a t th e in d u s try is b e tte r fo r th is co-operation. V o lu n ta ry in its inception, public opinion m ak es t h a t co -o p era tio n m ore com pelling, m o re b in d in g , m o re effective th a n d ire c t C ongressional m an d ate. T he success w h ich h a s a tte n d e d th e B u re a u ’s endeavors
o ug h t to im p ress its e lf upon o u r n a tio n a l law -m akers.
In d u stry , too, w ill be b lin d to its ow n b e s t in te r e s ts if it does n o t recognize th e value of m a s sin g p ub lic opinion in its fa v o r by sh ow ing a w illin g n e ss to co-o p erate in v o lu n tary m ovem ents fo r in d u s tria l b e tte rm e n t. T he in d u s try w hich is backed by public o p inion need fe a i no th r e a ts of re p re ssiv e re g u la tio n .
R o o f C ontrol
N O O N E C AN fa il to re alize t h a t th e s tu d y of ro o f actio n an d co n tro l alw ays w ill be tro u b le d by ele
m en ts of u n c e rta in ty b u t t h a t is t r u e of k in d re d stu d ie s.
T he k in etics of beam and p la te a c tio n u n d e r s tr e s s is none too clearly u n d ersto o d , th o u g h th e s tu d y h a s in y ea rs p a s t m ade w o n d erfu l p ro g re s s . T h e a n a ly s is of roofs an d g ird e rs is h edged w ith a ssu m p tio n s w h ich w e know a re too o fte n in c o rre c t. N e v e rth e le ss th e y afford solutions th a t a re in d icativ e of th e tr u e co n d itio n s and th e re fo re a r e of value if n o t w holly re lia b le . D e sp ite assu m p tio n s and u n c e rta in ty th e s tre s s e s in dam s a re also calculated.
B u t w ith all th e difficulties a p p a re n t a n d h id d e n in th e problem s involved, e n g in e e rs h av e n o t h e s ita te d to th eorize, an d th e re s u lts a re so m uch b e tte r th a n g u esses th a t no one w ould d esig n a b rid g e, a dam o r a g ir d e r o r place a beam w ith o u t them .
T he problem s o f th e ro o f a re g re a te r, b u t th e o rie s, m ath em atica l stu d ie s an d te s ts a re o f m o re value th a n vague su rm ises. E r r a t i c conclusions t h a t m a y be r e a d ily proved fa lla cies a re th e n e c e ssa ry outcom e o f n o t s ittin g dow n reso lu tely to m ak e c e rta in a s s u m p tio n s an d a rg u e m a th e m a tic a lly fro m th em .
We shall find t h a t th e ro o f is n o t w h a t th e a s s u m p tio n s w ould m ake i t ; we sh all discover t h a t th e r e a re exceptions w h e re th e m e a su re s slide re a d ily on each o th e r or a r e b adly creviced, o r fa u lte d , o r s u b je c te d to p re lim in a ry s tra in s , th u s co n fo u n d in g o u r th e o rie s.
O ur tro u b le is t h a t w e declare t h a t a so lu tio n o f th e problem is im possible an d re fu s e to a tte m p t it. Y et w hen we b eg in to o p e ra te we assu m e n o t m ere ly th e co nd itio ns on w hich a so lu tio n of th e p ro blem m ig h t be a p p ro x im a te d b u t th e final re s u lt. W e m ak e n o t one or tw o assu m p tio n s b u t sev e ral a n d th o se less n e a rly co r
re c t th a n th o se w e h ave re fu s e d to m ake.
One assu m p tio n t h a t lies a t th e b a s is o f all re a s o n in g re g a rd in g th e ro o f is t h a t i t is a m o n o lith except fo r tw o m a in la y e rs t h a t lie above an d below th e c e n tra l m ass respectively. T he bo tto m la y e r is th e d ra w sla te , th e to p lay er, th e s u rfa c e m a te ria l. N ow, it is to be ad m itte d t h a t th e re a re o fte n u n c e rta in tie s as to th e m o nolithic c h a ra c te r of th e m id -ro o f, b u t o u r tro u b le is to b re a k a s tro n g roof, n o t a w eak one, so if we assu m e t h a t th e m id ro o f is in te g ra l we g e t a s a f e ty fa c to r, w hich is w h a t we som etim es need.
In any ev ent by assu m in g a m o n o lith ic s tr u c tu r e we m ake a s t a r t . We discuss, a t le a st, one ty p e o f ro o f;
in th e p arla n ce of th e s tr e e t “ we g e t dow n to cases.”
L a te r we can ta k e up th e exception s. M ea n tim e we c la rify o u r ideas. O u r s tu d y o f ro o f a c tio n to d ay is a lto g e th e r too nebulous. One m an h a s a good roof, a n o th e r a bad ro o f a n d w h a t is m e a n t by good o r bad no one know s. T h e re a r e d iffe re n t k in d s of goodness and b adn ess and a good ro o f a t one tim e is a b ad ro of a t a n o th er. Such vag u e te rm s c a n n o t p ro fit anyone.
Only an a ly sis will afford an a d e q u a te term in o lo g y .
J U NE 1 0 , 1 9 2 6 C O A L A G E 825
Three Illinois Mines Generate Their
Own Power
I n s t a ll T h r e e W a te r -T u b e B o ile r s E a c h C a p a b le o f P r o d u c in g 700 H p . and T w o 1,872 K va. G e n e ra to rs D r iv e n b y D ir e c t-C o n n e c te d C o n d e n sin g S te a m T u r b in e s
[ .
B y E. S te c kM i n e E q u i p m e n t a n d S e r v i c e B u r e a u , C h i c a g o , 111.
tion . T he in v e stig a tio n showed th a t a la rg e sav in g would be effected by th e com pany b u ild in g its own c e n tra l s ta tio n and ab a n d o n in g its bo iler p la n ts a t m ines Nos. 12 an d 14. In view of th e f u tu r e develop
m en t of th e p ro p e rtie s an d th e p re s e n t o p e ra tin g condi
tio ns, it w as decided to locate th e p la n t a t m ine No. 12 an d to tr a n s m it pow er to m in es Nos. 14 an d 10, a distan ce o f ap p ro x im a te ly 10 m iles.
S team fo r No. 12 m in e will be su pp lied by th e new plan t, b u t a t m in e No. 14 th e re still re m a in s a steam h o ist w hich m u st be electrified b efo re t h a t b o iler p la n t can be s h u t down. L ab o r released a t m in es N os. 12 and 14 w ill be m ore th a n sufficient to o p e ra te th e new p lan t. L ittle m ore coal w ill be b u rn e d a t th e new pow er p la n t to o p e ra te all th re e m in es th a n w as used fo rm e rly a t m in es Nos. 12 an d 14 alone.
A tra c k h o p p er n e a r th e s h a f t of m in e No. 12 ta k e s screen in g s d ire c t fro m th e tip p le o r fro m a ho p p er- bo ttom c a r fro m one of th e o th e r m in es in case No. 12 is s h u t down an d by m ean s of a re c ip ro c a tin g fe e d e r delivers it to a b elt conveyor w hich d isc h a rg e s in to a screw conveyor over th e coal b u n k e r. T he coal b u n k e r is m ade of steel an d h a s a ca p acity of a p p ro x im a te ly 125 tons. F ro m th e b u n k e r th e coal is delivered by sw in g in g sp o u ts to h o p p ers t h a t fe ed th e c h a in g ra te s .
Ad e q u a t e In d ic a t in g Eq u i p m e n t Used
T h re e w a te r-tu b e b o ilers h a v in g n o rm a l ca p acity of 353 hp. an d m ax im u m c a p a c ity of 700 hp. each h av e been installed, each h a v in g tw o d ru m s 36 in. in d ia m e te r an d 21 ft. 9 in. long a n d 175 s t r a i g h t tu b e s of 4 in.
d ia m e te r an d 18 f t. long. T h e b o ilers a r e eq uipped w ith flow m e te rs, carb on -d io x id e re c o rd e rs, d r a f t gag es, p y ro m ete rs an d re g u la to rs fo r th e feed w a te r a n d dam p ers. S team is g e n e ra te d a t 175 lb. an d deliv ered to th e h ea d er w ith 100 deg. of s u p e rh e a t.
F ro m th e ch ain g ra te s th e ash e s a re d is c h a rg e d in to concrete h o p p ers an d th en ce in to a sh c a rs u n d e r th e boiler-room floor. T h ese a r e d ra w n o u t a n d em p tied on th e m ine p ro p e rty .
A w a te r-s o fte n in g p la n t w as erected , c o n s is tin g of
T H E In d ia n a &
Illinois Coal C or
p o ra tio n o p erates a m ine a t N okom is, h a v in g a ca p acity of 6,000 tons, an d tw o a t W itt, one w ith a cap acity of 3,500 to n s, and th e o th e r w ith a cap acity o f 2,500 to n s p e r day.
T hese m in es a re know n as Nos. 10, 14 an d 12 respectively. No. 10 m in e is com pletely elec
trifie d an d p u rc h ases pow er fro m a ce n tral s ta tio n . Nos. 14 and 12 p u rc h a se pow er fo r o p e ra tin g m o to r-g en e r- a to r sets, fo r u n d e rg ro u n d elec trical eq u ip m en t an d g en e ra te th e ir own ste a m fo r h o is tin g an d m iscellaneous use.
T he b o iler p la n ts a r e ty p ical old-style m ine p lan ts, u sin g m o stly 150-hp. r e tu r n - tu b u la r boiler, w ith no a tte m p t a t c o n siste n t e n g in e e rin g lay o u t fo r boilers, pip in g , w a te r tr e a tm e n t, b u ild in g s o r coal and ash h an d lin g . N a tu r a lly th e q u a n tity of coal b u rn e d is excessive an d th e co sts of m a in te n a n c e an d o p eratio n a re heavy.
T he cost of p u rc h a s e d p ow er fo r No. 10 m in e becam e especially b u rd e n so m e , due p a r tly to th e m in e only w o rk in g p a r t tim e d u rin g th e la s t fe w y e a rs. In 1923, th e coal co m pan y used 1,655,400 kw .-h r. a t a n e t co st of $56,837 o r a c h a rg e o f 3.43c. p e r kw .-h r. T h a t y e a r th e r u n w a s ir r e g u la r a n d p o w er c o n su m p tio n low.
A stu d y w a s m ad e a s to th e co st of pow er, p a r t p u r chased a n d p a r t g e n e ra te d , a n d also w h a t w ould be th e cost of p ro d u c in g it a t th e co m p an y ’s ow n c e n tra l sta-
T h e h e a d p i e c e s h o w s s c e n e s a t t h e W i t t p o w e r h o u s e . O n t h e l e f t i s t h e c o n v e y o r f o r t r a n s p o r t i n g - c o a l f r o m t h e t r a c k h o p p e r t o t h e c o a l b u n k e r s i n t h e b o i l e r r o o m . I n t h e c e n t e r i s t h e s p r a y p o n d , a n d t h e t h i r d i l l u s t r a t i o n i s o f t h e b o i l e r r o o m a n d t u r b i n e h o u s e , t h e l a t t e r b e i n g o n t h e e x t r e m e r i g h t .
826 C O A L A G E
V o l . 2 9 , N o . 2 3Scenes in the Boiler House of the Indiana &
Illinois Coal Corporation
(1) F ron t o f boilers before b uild in g w as finished. (2 ) S p ray pond (3) A isle betw een b oilers. (4 ) T urbines. (5 ) Pum ps.
(6 ) T urbine fou n d ation s and condensers.
J u n e 1 0 , 1 9 2 6
C O A L A G E
8 2 7a feed-water heater, filtering and chemical tank, supply
pumps and a meter proportioner which supplies a fixed proportion of chemical to the water, no matter what the demands are on the plant.
Two boiler-feed pumps, 10x6xl2-in. duplex, equipped with pump governors are located in the condenser room basement under the water-softening plant thus giving them a considerable suction head. The exhaust steam from the pumps, exciter turbine and air ejector is used for heating the feed water in the water-softening plant.
An air compressor, electrically driven, is installed for operating boiler-tube cleaners and air tools and for cleaning the electrical equipment.
The chimney 202 ft. 6 in. high is made of re-inforced concrete and lined with radial brick for a distance of 50 ft. with an inside diameter at the base of 11 ft. 5 in.
and at the top of 8 ft.
The prime movers consists of two 1,875-kva., 3-phase, 60-cycle, 2,400-volt generators driven by direct-con
nected condensing steam turbines operating on 175-lb.
steam pressure and 100 deg. superheat. A 35-kw.
turbine-driven exciter is furnished to supply excitation to the two turbo-generators and to supply power for the station lights in case of emergency. Additional space is povided in the turbine room for a smaller unit to be installed later to take care of the night and idle- day load. Both condensers are of the jet type, one being equipped with a two-stage steam-air ejector, and the other with an air pump.
Ab u n d a n t Wa t e r Su p p l y Is Pr o v i d e d
A pond is located near the power house which is used for both boiler-feed water and for operating the con
densers. Water from the pond is taken by gravity through a concrete basing with removable screen and settling chamber to cold wells in the condenser room, whence the condensers lift it by short suction lines.
A pipe line is run from the washhouse tank for priming the condensers. The discharge water from the con
densers is taken back to the opposite end of the pond from the intake water to a concrete basin which over
flows into the pond. The pond level is below the condenser discharge so that little power is taken by the discharge. A centrifugal pump is located at the afore-mentioned basin which is connected to the spray system for cooling the water. This cooling system is independent of the condenser discharge which permits operating the sprays in the summertime at night when the turbines are shut down and shutting them down in the winter time when they are not needed.
The switchboard consists of two generator panels, one exciter, two 2,300-volt feeders and one 440-volt dis
tributing panel. The generators and feeders are sup
plied with recording wattmeters which record the power delivered by each generator and furnished to each mine. Each generator panel is supplied with an alter
nating- and a direct-current ammeter, an alternating voltmeter, an indicating wattmeter and a non-automatic oil switch. The 2,300-volt circuits each have an oil circuit breaker and recording wattmeter. Both tui- bines have motor-driven synchronizers, with control switches on their respective generator panels. On a swinging bracket is a synchroscope and a power-factor meter.
A bank of three 75-kva., 2,300/440-volt transformers is used to supply power to the motors in use at the power plant such as condenser drives, compressors, pumps, conveyors, etc.
W itt Pow er H ouse in P rocess of E rection
Bu-nkers, b o ile r s a n d a s h p it c a n b e se e n to t h e le f t o f th e il l u s tr a tio n . T h e b o ile r s h a v e a m a x im u m a g g r e g a t e c a p a c it y o f 2,100 hp., th e n o r m a l c a p a c ity b e in g 1,059 hp.
Mine No. 14, which is less than a mile away, is oper
ated by a 2,300-volt transmission line, and No. 10, which is about 9 miles distant, by a 23,000-volt line. For operating No. 10 mine there are two transformer sub
stations, delta-star connected, each consisting of three 667-kva. transformers, one at the generating end, and the other at the receiving end. Each transformer sta
tion is equipped with high- and low-tension discon
necting switches, air-brake switches, lightning arresters, high-tension expulsion fuses and choke coils.
The engine room for a height of 3 ft. and the boiler room for a height of 7 ft. above the ground level is constructed of reinforced concrete, and the remainder of the building is steel-frame construction and sided with asbestos-covered corrugated-steel siding. Steel window sash is used with wire-ribbed glass in the lower sashes, plain glass being used in the upper windows.
The water-softening plant is built of reinforced con
crete up to floor level, the upper part being of concrete block with steel sash. The turbine foundations are built entirely of reinforced concrete. The plant, except the brick work in the chimney and boilers, was built by men at one time connected with the coal company.
Sa v i n g s Wi l l De p e n d o n Ru n n i n g Ti m e
The cost per kilowatt-hour for generating power at the new plant depends on many elements entering into the cost, that is, the efficiency and care with which the plant is operated, the cost of repairs and deprecia
tion and the working time of the mine. In making a comparison with the purchased power, it should be remembered that the plant will not only replace this power but will furnish steam to Mine No. 12, which will abandon its power plant and eventually supply additional electric power to Mine No. 14, which will also shut down its boiler plant.
Making no allowance for savings in maintenance, coal and labor in these old plants, the new power station will show a reduction in the power costs of from $20,000 to $50,000 per year over purchased power, depending on the running time of the mines. This saving is greatly increased by shutting down the old steam plants, so that this new power plant will pay for itself in from three to six years. After the plant has paid for itself, the cost of producing power will be further decreased.
The plant was designed, built and put into service in
1925 by the Mine Equipment & Service Bureau, of
Chicago, 111.
828 C O A L A G E Vo l. 2 9 , N o . 2 3
V i b r a t i n g S c r e e n s a n d T u m b l i n g B r e a k e r s i n S m o k e l e s s F i e l d
P e a P r e p a r e d b y P a s s in g S la c k , O n e I n c h a n d
U n d e r, O v e r a V ib r a to r y S c re e n — R o c k C le a v e d fr o m C oal b y M e c h a n ic a l M e a n s
D U R IN G th e p a st w in te r a su b sta n tia l m a rk e t de
veloped fo r b itum inous coal of pea size, especially fo r sm okeless fuels. W ith p ro p er equipm ent low- volatile coal of th is g ra d e can be utilized as successfully fo r dom estic h e a tin g as fo r steam ra isin g .
A t th e new tip ple of th e C rozer Coal & Coke Co., Elk- horn, W. Va., pea coal from th e P ocahontas No. 3 bed is p re p are d over H um -m er electric screens, one of w hich is shown in th e accom panying illu stra tio n . The in s ta l
latio n in th is tipple consists of tw o single-deck screens, each 6 ft. long and 4 ft. wide. These are placed in ta n dem on a slope of 30 deg. The screen u n it th u s form ed tak es a feed v a ry in g in size from n o th in g to 1 in. F ro m th is it sep a rates all coal over i in. I t is capable of h an d lin g th is m a te ria l a t a m axim um ra te of 25 tons p e r hour. The tipple is provided w ith fa c ilitie s fo r loading upon only fo u r trac k s, and accordingly pea coal is elevated to a 220-ton bin, w hich holds a day ’s supply.
A t th e m ine of the U pland Coal & Coke Co., a d jo in ing th e p ro p e rty of th e C rozer com pany and o p e ra tin g u n d er th e sam e m anagem ent, th e tipple is likew ise equipped fo r th e p re p a ra tio n of pea fro m P o cah on tas No. 3 coal. A t th is plant, how ever, a 4x6-ft. A rm s v ib ra tin g screen w ith £-in. p e rfo ra tio n s is used fo r th is purpose. T his screen is horizontal and is su p p o rted from below. I t receives its feed from a M arcus r e cip ro catin g screen, w hich p re p a re s th e la rg e r sizes.
The pea coal w hich passes over th is A rm s screen, as well as th e slack going th ro u g h it, is sen t by ch u tes to ra ilro a d cars direct.
Tum bling Coal B reaker in U pland T ipple
W i t h i n t h e h o u s i n g - i s a 9 x l l - f t . b r e a k e r w h i c h s e p a r a t e s g o o d c o a l f r o m a d h e r i n g b u t w o r t h l e s s b o n e a n d s l a t e . L u m p s c o m p o s e d o f t h e s e t w o m a t e r i a l s r e j e c t e d f r o m t h e p i c k i n g t a b l e a r e f e d t o t h i s m a c h i n e . T h i s s a v e s t h e p i c k e r s f r o m w a s t i n g t i m e i n c l e a v i n g t h e c o a l b y h a n d f r o m t h e b o n e .
B oth of th ese tip p le s a re eq uipped w ith B ra d fo rd b re ak ers, w hich s e p a ra te th e h ig h -q u a lity lum p coal fro m th e bone an d rock a d h e rin g to it. T h is m ach in e handles th e re je c t fro m th e p ick in g tab les. A bone b in d er som etim es a tta in in g a th ic k n e ss of 3 in. occurs slig h tly above th e m iddle of th e coal bed. I t is n o t th e p ra ctice in th ese m ines o r th ro u g h o u t th e a d jo in in g fields to s e p a ra te th is bone fro m th e coal a t th e w o rk in g face. In th e p a s t i t h a s been c u s to m a ry to li f t lum ps of com bined coal an d bone fro m th e p ick in g ta b le s an d cleave off as m uch good coal a s tim e w ould p e rm it. As a re s u lt of th is p ra c tic e m uch coal, a s well as bone,
Tandem V ibrating-S creen U nit R em oves F in es
T h i s s h o w s t h e f i n e - c o a l s c r e e n s i n t h e C r o z e r t i p p l e . T h e t a n d e m u n i t , w h i c h i s e l e c t r i c a l l y d r i v e n , s e p a r a t e s c o a l l e s s t h a n J i n . i n s i z e f r o m t h e s l a c k s c r e e n e d o u t b y a p r e l i m i n a r y p r o c e s s . T h e c a p a c i t y o f t h i s u n i t i s a p p r o x i m a t e l y 2 5 t o n s p e r h o u r . T h e s c r e e n i s s e t o n a 3 0 - d e g . s l o p e .
V ibrating Screen, U pland Coal & Coke Co’s T ipple
T h i s s c r e e n i s h o r i z o n t a l a n d i s i n s t a l l e d u n d e r t h e m a i n r e c i p r o c a t i n g s c r e e n . O v e r i t i x l - i n . p e a c o a l i s p r e p a r e d . I t i s d r i v e n b y a 3 - h p . m o t o r .
w as re le g a te d to th e dum p. T h e tim e consum ed in cleaving th e bone by h a n d serio u sly lessens th e a b ility of th e p ick ers em ployed on th e ta b le s to p re p a re a la rg e to n n ag e daily.
The p ra c tic e now follow ed a t th e p ic k in g ta b le s o f th ese com panies is to cleave off only th e coal t h a t sep a ra te s re a d ily fro m th e bone. T he re s id u e o r lu m ps of com bined coal an d bone w hich c a n n o t be re a d ily sep
a ra te d a re fed in to th e B ra d fo rd b re a k e rs. T hese m a chines co n v ert th e coal in to slack an d re je c t th e bone.
T he C rozer tip p le is equ ipped w ith a 9 x l4 -ft. b re a k e r h av in g a ca p acity of 50 to n s p e r h o u r, an d th e U p lan d tip p le h as a b re a k e r 9x11 f t. in d im ension s.
F .
F r a s e r M a c W i l l i a m ’sn am e w a s in c o rre c tly g iv en
as F. F r a s e r W illiam s on p ag e 707 of th e issu e o f M ay 20.
Ju n e 1 0 , 1 9 2 6
Company Store Run by Better Business Methods Lowers Costs and Gives
Improved Service
Good Salaries Paid to R eally Compe
tent Men W h o Know H ow to Turn Stocks R apidly and Free from Spoilage
C O A L A G E
B y L o u is S p ilm a n
E d i t o r , I n d u s t r i a l R e t a i l S t o r e s ,
N e w Y o r k C i t y
B U S IN E S S IS b u sin e ss an d w e lfa re w ork is w el
f a r e w ork, b u t w hen a co m b in atio n of th e tw o re s u lts is good fo r b o th — t h a t is a p arad o x . T his, how ever, h a s been th e re s u lt o f th e g ra d u a l developm ent by co al-m in in g com p anies of re ta il s to re s to serv e th e ir em ployees. A t th e s ta r t , co a l-m in in g com panies w ere fo rced in to th e r e ta il m e rc a n tile b u sin ess in o rd e r to supply t h e i r em ployees w ith th e n ec essitie s of life.
T h is w as due to th e iso la tio n of th e m in es an d to th e re lu c tan ce o f in d e p e n d e n t c a p ita l to in v e st in sto re s located in th e s e co m m u n ities.
T h ese e a rly r e ta il u n its , w hich w e re te rm e d “ com m is s a rie s ,” w e re n o t in a n y w ay p ro g re s siv e sto re s, b u t m erely u n its t h a t c a rrie d such ite m s o f food a n d clo th in g as w e re n e c e ssa ry to m eet th e g e n e ra l d em an d of
T h e h e a d p i e c e s h o w s t h e b u t c h e r ’s s h o p a t t h e L y n c h s t o r e o f t h e U n i t e d S u p p l y C o . , a s u b s i d i a r y o f t h e U n i t e d S t a t e s S t e e l C o r p o r a t i o n , L y n c h , K y .
th e m in e rs an d o th e r em ployees. A s th e m a n a g e rs o f th ese co m m issaries w ere n o t experienced in s to re o p er
atio n , th e usu al re s u lt w as a trem e n d o u s o v erstock of in fe rio r goods w hich w e re sold a t h ig h prices.
Co m p e t it io n Does Not Hin d e r
T he profit w hich accrued fro m th e e n te rp ris e , n e v e r
theless, w as sufficient to call th e a tte n tio n of th e m in e
o p erato rs to th e fa c t t h a t a la rg e rev en u e could be
secured th ro u g h th is d ivisio n of t h e ir b u sin ess. W ith
com petition developing, how ever, due to th e ra p id ris e
of th e m a il-o rd e r house, th e b u ild in g of a g r e a t sy stem
of h a rd roads, th e g ro w th of bus sy stem s an d th e w id e r
d istrib u tio n of autom ob iles, th u s g iv in g access to
la rg e r cities, coal o p e ra to rs w e re fa c e to fa c e w ith th e
prop o sitio n of m ak in g one o f tw o d e c is io n s : T h ey m u s t
e ith e r end th e ir m e rc a n tile o p e ra tio n s an d p e r m it in d e
p en d en t c a p ita l to c a re f o r th e dem and, or th e y m u s t
re -o rg an ize t h e ir sto re s on m od ern , p ro g re s s iv e p r i n
ciples of m e rc h a n d isin g , w h ich w ould enable th e m to
m eet an y co m p etitio n offered.
830
C O A L A G EVo l. 29, No . 23
T he decision in m ost instances h as been to develop th e stores, and it h as been found, th a t, as th e com m is
sa ry h as given w ay to th e m odern re ta il u n it, m anaged by an experienced personnel, stocked on a scientific b a sis and m erch andised in th e m ost approved and m od
ern system , no t only w as th e service to th e employee b e tte r, th e prices offered m uch low er and th e q ualities p re sen ted h ig h er, b u t th e n e t profits to th e com pany its e lf w ere as g re a t, or in m ost cases, even g re a te r.
A s a th o ro u g h realizatio n of th e ad v a n ta g es to be gain ed by o p e ra tin g re ta il sto res on m odern piin cip les becam e ap p a re n t, increased o p p o rtu n itie s fo r th e devel
opm ent of th e sto res w ere given.
P e rh a p s th e g re a te s t single step fo rw a rd has been th e absolute divorce of
th e m ercan tile e n te rp rise fro m coal production.
In P en nsy lv an ia, t h i s w a s m a d e necessary som e fo rty or fifty years ago, w hen th e s t a t e passed a law p ro h ib itin g th e operation of re ta il sto re s by in d u stria l o r
ganizations.
T h is law is, of course, no t necessary now so f a r as th e coal in d u stry is concerned, fo r th e re h as been no re cen t evi
dence of th e existence of th e evils th a t b ro u g h t
abo u t th e p assin g of th e early law. T oday we find th e m a jo rity of th e coal com panies in every s ta te have se p a ra te d th ese tw o fu n ctio n s, law or no law ; e ith e r sep a rately in co rp o ratin g a m erc an tile d e p a rtm e n t or conducting it as a d istin c t and independent section of th e e x istin g business.
The profit derived from th e sto re, how ever, w as not th e only consideration w hich prom pted th e o p e ra to rs to develop th ese re ta il m erch an d ise estab lish m en ts to th e ir p re sen t h ig h sta n d a rd . L abor, a t c e rta in p erio d s, such as, fo r example, d u rin g th e W orld W ar, becam e extrem ely scarce an d th e ac tu al w age alone w as n o t th e sole consid eratio n w hich caused th e w orkm an to become a p erm a n en t fix ture in a p a rtic u la r com m unity. D u rin g such tim es it w as necessary to c reate w ith in th e la b o re r confidence in th e com pany fo r w hich he w orked and to su rro u n d him w ith an en vironm ent th a t ten d ed to cre a te co n ten tm en t an d sa tisfa c tio n .
As th e m iner, or m em bers of h is fam ily, v isite d th e sto re daily, th e com pany found t h a t its la rg e s t o p po r
tu n ity to c reate confidence and to sp re ad co n ten tm en t w as to give a sq u are deal a t th e sto re. T he p rice s and q u a litie s had to be such th a t th e y would b e a r a fa v o r
able com parison to tho se offered b y com peting sto res in n e a rb y tow ns.
Fig ures of Ot h e r Co m p a n ie s a s Gu id e
T h is developm ent in th e sto re field h as b ro u g h t m an y problem s to executives of coal com panies. W h a t should th e in v e stm e n t be in m erc h an d ise? W h a t should th e cost o f b u sin ess be? W h a t should th e n e t p ro fit be, if a n y ? H ow m an y sto re employees should th e re be?
W h a t con venient system of c re d it fo r com pany em ploy
ees can be u tilize d ? W h a t p ercen tag e of th e to ta l m ine payroll should a com pany expect to be sp e n t a t th e s to re ? T hese a re a few of th e qu estions t h a t have
co n fro n ted th e coal-com pany executive, since he began to realize th e im p o rtan ce of a s to re to th e s a tis fa c to ry o p eratio n of a m ine.
T he only f a i r w ay to a r r iv e a t a conclusion on any of th ese q u estio n s is to find o u t how som e of th e su c
cessful coal-com pany m e rc h a n d ise u n its a re o p e ra tin g and w h a t th e ir figu res a re . L e t u s t u r n firs t to th e la rg e s t o p e ra to rs of coal-com m unity s to re s in th e U n ited S ta tes, th e U nion and th e U n ite d S up ply Co., w ith h e a d q u a rte rs a t P itts b u r g h , P a ., w h ich o p e ra te seventy- one sto res in P en n sy lv an ia, W est V irg in ia an d K en
tucky, in co m m u n ities e sta b lish e d by th e H . C. F ric k Coke Co. an d th e U n ited S ta te s Coal & Coke Co.
T he U nion S upply Co. w as in c o rp o ra te d as a s e p a ra te o rg a n iz a tio n in 1882, and ... th e U n ite d S upply Co.
■was in c o rp o ra te d in 1902.
T h e h e a d q u a rte r s f o r bo th th e s e g ro u p s is th e sam e, an d J . W. A na- w a lt is p re s id e n t of b oth co rp o ra tio n s. T h e g en e ra l offices a r e a t P i t t s b u rg h , w h e re in a d d itio n to M r. A n a w alt, a r e th e o th e r g e n e ra l executives of th e com panies, in clu d
in g F r a n k W alton , g en e ra l p u rc h a s in g ag e n t.
T h e U n io n S up ply Co.
o p e ra te s s i x t y s to re s a n d h a s its g e n e ra l sto re h e a d q u a rte rs a t U n io nto w n , P a ., w ith C. L. S te in e r in c h a rg e as g e n e ra l s to re s u p e rin te n d e n t. T h e U n ited Supply Co. o p erates eleven sto re s, am o ng w h ich is th e re m a rk ab le u n it a t Lynch, Ky., u n d e r th e s to re m an ag e m e n t of Jo h n C. H ow ard . T h e g e n e ra l s to re h ea d q u a r te rs fo r th e U n ited S upp ly Co. is a t G ary , W. Va., w here C laude B o u g h n er serv es as g e n e ra l s to re s u p e r
in ten d en t.
F o r th e p u rp o ses of th is su rv ey , th e tw o com panies a re considered to g e th e r, and, as th e y a r e re ally u n d e r one executive ju ris d ic tio n , th is ca n be done s a tis fa c to rily .
W hen you come fa ce to fa c e w ith th e fa c t t h a t th is o rg a n iz a tio n , only one of th e m a n y m e rc h a n d is in g o r
g a n iz a tio n s developed d u rin g th e p a s t fe w y e a rs to serve co al-m in in g co m m u n ities, h a s an a v e ra g e o f 900
Company Store of Island Creek Coal Co., Holden, Logan County, W. Va.
T h e c o a l c o m p a n y h a s it s o ffic e s in t h i s b u ild in g . T h e s u p e r in t e n d e n t ’s h o u s e is o n t h e h ill t o t h e le f t . S to r e s a r e u n lo a d e d fr o m th e r a ilr o a d , t h e C h e s a p e a k e & O h io, o n t h e r ig h t . N o t e th e p a v e d s t r e e ts . I t is a n e a s y r u n f r o m H o ld e n t o L o g a n , b u t th e H o ld e n sto r e h o ld s it s o w n •n e v e r th e le ss . —
I N p re p a rin g th is a rtic le fo r Coal A g e, M i. S pilm an surveyed 101 coal-com m unity sto res located in v a rio u s sections of th e co un try . H ere a re some of th e o u t
sta n d in g re su lts of h is su rv e y :
N u m b e r o f s t o r e s s u r v e y e d ... v , 1.1 ? } A v e r a g e s t o r e s t o c k c a r r i e d ...¿ 1« ¿ 7 0 7 9 1 A v e r a g e a n n u a l s a l e s ... 7 ^ t i m e s A v e r a g e t u r n o v e r ... '• » A v e r a g e n u m b e r o f s t o r e e m p l o y e e s ... , y i j A v e r a g e p e r c e n t o f c o m p a n y p a y r o l l s p e n t a t s t o r e ...6 a i
A v e r a g e b u s i n e s s o t h e r t h a n c o m p a n y e m p l o y e e s ...U n i a t
A v e r a g e s a l a r y o f m a n a g e r p e r m o n t h ... y u b . a s A v e r a g e c o s t o f d o i n g b u s i n e s s ... i i . » o p e r c e n t
O f t h i s
T h e a v e r a g e s a l a r y c o s t w a s ...9 -5 P e r c e n t T h e a v e r a g e d e l i v e r y c o s t w a s ...1 0 7 p e r c e n t T h e a v e r a g e r e n t a l c o s t w a s ...c e n t T h e a v e r a g e a d v e r t i s i n g c o s t w a s ... • • • . . » . ¿ a p e r c e n i T h e r e s t o f t h e 1 3 . 9 5 p e r c e n t i s d i s t r i b u t e d m l e s s e r a m o u n t s o v e r a v a r i e d n u m b e r o f i t e m s .
Ju n e 10, 1926 C O A L A G E 831
em ployees, c a r r ie s an a v e ra g e stock in v e stm e n t of over a m illion an d a h a lf dollars, an d does an a n n u a l re ta il b u sin e ss o f aro u n d tw elve m illion dollars, you b egin to u n d e r s ta n d w hy th is b ra n c h of coal-m ining com pany a c tiv itie s h a s ta k e n on such a n im p o rta n t asp e c t; a n y w a y t h a t ’s w h a t th e U nion a n d U n ited S upply com panies a r e doing.
On e Th ir d Doa Ca s h Bu s i n e s s
A bo ut 30 p e r cent of th is b u sin ess is fo r o u trig h t c a sh . T he re m a in d e r is done on c h a rg e accounts ex
te n d e d to em ployees of th e coal com panies, w ho a ssig n t h e i r e a rn in g s as collateral. M ost of th e b u sin ess, of course, is done w ith th e coal-com pany em ployees, b u t som e of th e sto re s, such as th e one a t L ynch, Ky., d raw a s m uch a s 10 p e r ce n t of th e ir b u sin ess fro m people o f th e a d ja c e n t co u n try sid e, w ho a re in no w ay con
n ec te d w ith th e coal com pany.
A s to th e m a tte r of expense, th e U nion and U n ited S up p ly com panies m ade figures t h a t would challenge m a n y n atio n -w id e c h a in -sto re o rg a n iz a tio n s to equal.
I t costs th e m 15 p e r ce n t to do b u sin ess an d 10.37 p e r
G rocery D ep artm en t o f an Illin ois Mine Store
O v e r t h e c o u n t e r m a y b e s e e n t h e c a s h - c a r r i e r s y s t e m . O r d e r a n d n e a t n e s s i s t h e r u l e o f t h e s t o r e . N e w g o o d s , w e l l d i s p l a y e d k e p t c l e a n a n d m o v i n g 1. W h a t a c o n t r a s t t o t h e o l d e r d a y s .
c e n t of th is goes fo r s a la rie s an d w ages. T h e ir su p plies co st th e m 2.5 p e r ce n t an d d eliv ery 1.2 p e r cent.
T h ey h av e discovered t h a t to o p e ra te su ccessfu l sto res th e y m u s t offer a f a i r w age to th e sto re m an ag e r.
H ence, th e a v e ra g e s a la ry p a id U nion an d U n ite d S upply c o m p an ie s’ s to re m a n a g e rs is $235 a m onth. In a d d i
tio n to th e a c tu a l cash sa la ry , th e m a n a g e r is, of course, given a d isc o u n t on h is m e rc h a n d ise and enjoys ex
tre m e ly low re n t.
Som e coal-com pany execu tiv e w ill say, “Yes, all these th in g s a r e v e ry w ell fo r an o rg a n iz a tio n of such size, b u t o u r co m pan y is sm all. We ca n have b u t one sto re, so th e r e is little chance f o r us to com pete w ith th e n e a rb y c ity s to re s o r to expect to offer o u r em ployees a n y p a r tic u la r in d u c e m e n t as to p ric e o r a ss o rtm e n t th ro u g h o u r m e rc h a n d ise d e p a rtm e n t.”
All w e h av e to do is to t u r n to th e G a rd en Coal Co., a t T azew ell, V a. T h is com pany h a s one sto re , c a rry in g an a v e ra g e sto ck o f $8,500 a n d d o in g a b o u t $100,000 b u s in e s s a y e a r, w h ich is a n excellent tu rn o v e r indeed.
T h ey h av e f o u r s to re em ployees. T w e n ty p e r c e n t of t h e i r b u s in e s s is o u tr ig h t cash, an d th e re m a in d e r is done on c r e d it ex te n d e d to em ployees of th e coal com p an y . A b o u t 15 p e r c e n t o f t h e i r to ta l b u sin e ss is done w ith Deoole o th e r th a n G a rd e n Coal Co. em ployees.
> ...
A nother of Lynch’s Store D ep artm ents— T his for H ardw are
S h o w c a s e s g i v e a n o p p o r t u n i t y t o t e m p t t r a d e . T h e s p i c k - a n d - s p a n a p p e a r a n c e h a s i t s v a l u e n o t o n l y i n m a k i n g s a l e s b u t i n f o r b i d d i n g - t h e k e e p i n g o f d e a d s t o c k . W i t h n o p l a c e t o p u t i t , e v e r y o n e t r i e s n o t t o g e t s t o c k t h a t w i l l n o t s e l l .
The tw o o u tsta n d in g fa c ts abo ut th e o p eratio n of th e G arden Coal Co.’s sto re th a t disprove w h a t m ay be said ab o u t th e sin g le -u n it o p eratio n , a r e th e s e : (1) 42 p e r cen t o f th e to ta l payroll of th e G arden Coal Co.
is sp e n t th ro u g h th e sto re, so evidently, th e employees a re well satisfied w ith th e ty p e of service, q u a lity an d a s s o rtm e n t of m erc h an d ise an d th e fa irn e s s of th e prices. (2 ) I t costs th e G ard en Coal Co. j u s t 6.19 p e r cent to do b u sin ess, sh ow ing t h a t th e overhead of th e sm all sto re does n o t n ec essarily e a t i t up. In fa c t, R„ O. V an Dyke, s e c re ta r y -tre a s u re r of th e G ard en Coal Co., says t h a t th e officials of th e com pany look on th e ir sto re w ith g r e a t fa v o r, in re fe re n c e to n e t profit, as well as to th e service re n d e re d com pany employees.
M any com panies find it n ecessary to o p e ra te th re e , fo u r o r five sto re s fo r ttte benefit o f th e ir m en. In W est V irg in ia a re tw o exam ples o f coal com panies of th is k in d ; th e L illybrook Coal Co., a t L illyb ro ok an d th e K a naw ha & H ock ing Coal Co., a t L on gacre. T he L illy brook Coal Co. o p erates th re e sto re s an d c a rrie s ab o u t
$100,000 w o rth of stock, a n d does a b u sin ess o f a b o u t a m illion dollars. I ts cost of doing t h a t b u sin ess is 9 p e r cent o f th e g ro ss tu rn o v e r. F i f t y to fifty-five p e r ce n t of th e coal com pany’s p ay ro ll is sp e n t a t th e s to re and 20 p e r ce n t of its b u sin ess is done in cash. F ig u r e s to be p ro u d of indeed!
C ash-Carrier S y stem a t U n ited S ta te s Coal & Coke Co.
Store, Lynch, K y.
T h i s b u i l d i n g i s f i t t e d u p l i k e a c i t y d e p a r t m e n t s t o r e w i t h e v e r y f a c i l i t y f o r d i s p l a y a n d f o r o p e r a t i o n . T h e c a s h - c a r r i e r s y s t e m s h o w n a b o v e s a v e s s t e p s a n d m a k e s i t p o s s i b l e t o k e e p a r e c o r d o f e v e r y t r a n s a c t i o n a s m a d e .
8 32 C O A L A G E Vo l. 29, N o . 2 3
How the Hilm an Supply Co. K eeps Track o f D ay’s S ales
T h is e n a b le s th e m a n a g e r to se e h o w m u c h e v e r y c le r k h a s s o ld b o th fo r c a s h a n d on c h a r g e a c c o u n ts ; a ls o to k eep a c c o u n t o f r e tu r n e d m e r c h a n d is e w h e t h e r c h a r g e d or so ld fo r c a s h .
The K a n aw ha & H ocking Coal Co. h as fo u r sto res.
I t c a rrie s ab o u t $80,000 w o rth of stock in th ese sto res, an d d u rin g th e first nine m onths of la s t y e a r did ju s t a wee b it u n d er a h a lf m illion do llars’ w o rth of b usin ess.
I ts cost of doing busin ess w as 9.4 p e r cent. T h is com pany d ep a rts fro m th e p re v a ilin g m eth od of com
p e n sa tin g sto re m an ag e rs, in th a t it p ays an a v e rag e m onthly sa la ry of $160 and gives, in ad d itio n to th is , 5 p e r cent of th e n et profits m ade by th e sto re. B oth th e L illybrook Coal Co. and th e K a n aw h a & H ocking Coal Co. issu e m etal checks to th e m in ers fo r use a t th e sto re as a convenient m ethod of su p e rv isin g cred it.
L eav in g th e e a ste rn and ce n tral fields in o rd e r to g e t an even b ro a d e r outlook on sto re ac tiv itie s in coal com
m u n ities, let us exam ine th e records m ade by th e U nion P acific Coal Co., w hich o p erates six sto re s w ith h e a d q u a rte rs a t Rock S p rin g s, Wyo. E. R. Jefferis, m a n a g e r of sto re s fo r th is com pany, say s t h a t i t is h is endeavor to m a in ta in th e s ta n d a rd s fo r efficient o p eratio n recom m ended by th e o u tsta n d in g a u th o ritie s in th e m erc h an d ise field.
“ We realize th a t th e isolated location o f th e m a jo rity o f coal co m m unity sto res is no longer a b u sin ess a s s e t,”
say s M r. Jefferis. “ In stea d , th e autom obile an d th e catalo g have b ro u g h t com petition to o u r v ery door, m ak in g it abso lutely esse n tial t h a t we offer q u a lity m e r
ch an d ise a t com petitiv e p rice s.”
T he U nion Pacific Coal Co. c a rrie s fro m $200,000 to
$225,000 stock and does a busin ess of fro m $900,000 to
$1,110,000 each y ea r, em ploying ab o u t fifty men.
T h e a v e rag e s a la ry p aid th e sto re m a n a g e rs is $230 a m on th . T he cost of doing b u sin ess is ab o u t 15 p e r cent, 7 p e r ce n t of w hich is fo r sa la rie s and w ages, in clu d in g delivery costs. T w en ty p er cen t of th e b u si
n ess done is fo r o u trig h t cash, and th e issu an ce of coupon books as a m edium o f cred it, cares fo r th e r e
m a in d e r. A p p ro x im a te ly 25 p e r cen t of th e U nion P acific Coal Co.
payroll is s p e n t th ro u g h th e sto re.
On th e P acific C oast, th e Pacific C oast Coal Co., em ploying un io n lab o r exclusively, o p e ra te s fo u r su ccessfu l sto re s. T h ey c a rry a little less th a n $100,000 w o rth o f stock an d la s t y e a r did $558,156 w o rth of b u sin ess.
E. F . D e G ran d p re, m a n a g e r o f m iscellan eou s o p e ra tio n s fo r th e P acific C oast Coal Co., su p e rv ise s th e sto re develop m ents an d m a in ta in s an efficient an d concise su rv e y of th e sto re a c tiv itie s . I t s figu res a re ex a ct in every in s ta n c e an d a re given h ere in d etail. F o r in stan ce , th e com pany know s t h a t 13.9 p e r ce n t of its b u sin e ss is fo r cash . I t know s t h a t 3 p e r c e n t of th e b u s i
n ess is done w ith people n o t con
nected w ith th e coal com p any in an y w ay w h a tso e v er, an d t h a t th e re s t o f th e b u sin e ss is done th ro u g h th e m ed iu m of c re d it, as re p r e sen ted by coupon books issu ed in d en o m in atio n s o f $2, $5 an d $10, c h a rg e d to th e c u s to m e r’s ac co u n t.
I t know s t h a t 25.24 p e r c e n t o f th e P acific C oast Coal Co. p ay ro ll is sp en t a t th e sto re, w hich is a f a i r p e rc e n ta g e .
T he cost of doing b u sin ess is 14.34 p e r cent, a n d t h i s is less th a n it w as te n or tw e n ty y e a rs ago. M r.
D e G rah p re a ttr ib u te s t h is d ecrease to f o u r c a u s e s : Im proved m eth o d s of h a n d lin g , in c re a se d volum e o f bu sin ess, g r e a te r experience, an d th e s ta n d a rd iz a tio n of m erc h an d ise. I ts co st of do in g b u sin e ss is so well divided t h a t it is g iven in its e n tir e ty in T able I.
T able I— D istrib u tion o f O p erating C osts, Pacific C oast Coal Co.
P e r C e n t o f
E x p e n s e s C h a r g e a b le t o B u s in e s s
T r a n s a c t e d A . S a la r ie s ( e x c l u d i n g d r i v e r ) ... 7 .8 2 B . D e l i v e r i e s ... 1 .3 8 C . F u e l ... 0 . 2 2 D . S to r e s u p p lie s a n d e x p e n s e s ... 1 . 30 E . C o u p o n b o o k s ... 0 .1 1 F . R e p a i i s a n d r e n e w a l s o f b u i l d i n g s ... 0 .5 1 G . L o s s e s ... 0 . 0 9 H . O t h e r e x p e n s e s ... 0 .0 5 I . D e p r e c i a ti o n o f b u i l d i n g s ... 0 . 4 4 J . M a n a g e r o f s to r e s a n d c l e r k s ... 0 .5 3 K . I n s u r a n c e ... 0 .1 9 L . G e n e r a l office s a la r ie s a n d e x p e n s e s ... 0 . 75 M . T a x e s ... 0 . 3 0 N . R e n t ... 0 . 6 5 T o t a l ... 1 4 .3 4 T h e i t e m o f r e n t i s g i v e n a s 0 . 6 5 p e r c e n t . N o r e n t i s p a i d a s t h e c o m p a n y o w n s i t s o w n b u i l d i n g , t h i s f i g u r e m e r e l y b e i n g t h e a m o u n t s e t a s i d e a s a r e t u r n o n t h e i n v e s t m e n t i n t h e b u i l d i n g .
