Union Pacific Railroad Company or was an independent company. It appeared that the Union Pacific Railroad Company was constructing the track necessary to connect this coal property with its line of railroad, and it was said by Mr. Clark that the money which was being expended in the development of the coal mine itself came from New York; from what source he was not informed. It was stated that the Superior Coal Company now held title to such lands in the Horse Thief Canyon as would render it impossible for any other company to mine coal in that field. That company has, therefore, by a comparatively small outlay of money, procured title to coal lands of great value today and of constantly increasing value in time to come.

There are at various points accessible to the Union Pacific Railroad in Wyoming west of Hanna numerous and extensive deposits of coal. Most of this coal is a strictly lignite coal and not of much value, but certain coal measures like those at Rock Springs bear coal which, if not properly bituminous, is of equal value with the best grades of bituminous coal. The coal measures in the Horse Thief Canyon are of this character, and the purpose of the Union Pacific Company seems to be to locate and acquire these valuable coal deposits wherever they are adjacent to its line. Similar operations have already resulted in the acquisition of lands in what is known as the "Long Canyon," into which the Commission did not think it necessary to go in detail. Mr. Clark testified that the Union Pacific Company had a force of men in the field prospecting for coal, and it is safe to predict that unless some effective measures are taken to prevent it the valuable coal lands along the line of the railroad will be in the near future owned either by the railroad itself or those persons who are most prominently identified with the ownership of that property.

The effect of these operations upon the part of the Union Pacific has been to give it a substantial monopoly of the production of coal along its line, which must result in very great profit to that company. The veins which bear coal, like that of Rock Springs, are from 8 to 12 feet in thickness and there are no conditions which render the mining of that coal unusually expensive. The contract price paid the miner varies from 40 to 70 cents per ton. It was estimated that the entire cost of putting coal upon the cars at such mines as Rock Springs, Diamondville, Kemmerer, and Cumberland was about $1 per ton, including interest and depreciation upon the plant-the entire expense except the value of the coal in the ground and the cost of constructing the necessary railroad track from the main line to the tipple.

As coal comes from the mine in these fields it contains from 35 per cent to 45 per cent of slack, which is taken out by screening before the balance is sold for domestic purposes. The superintendent of the Union Pacific Coal Company testified that this slack could all be readily sold at $1 per ton at the mine. This would leave the cost of the lump coal $1 per ton at the mine, and the price at which this is uniformly sold is $2 per ton. The mines of the Union Pacific Coal Company at Rock Springs produce about 7,000 tons per day, but of this between 4,000 and 5,000 tons are used by the railroad company for fuel purposes. It did not appear what the production of the Union Pacific Coal Company for commercial purposes was at Hanna or at Cumberland.

The resolution under which this investigation has proceeded requires the Commission to recommend remedial legislation. Our

recommendations, so far as they concern matters of transportation, will be comprehensively dealt with in our general report, and the Commission does not feel called upon to suggest specific legislation outside its proper sphere. It seems suitable, however, to call attention to certain facts which were developed in the testimony and which should be considered in devising a remedy for the evils disclosed. The present statute providing for entry upon and the purchase of coal lands was passed in 1883 and is extremely crude and incomplete. The oaths which must be taken are not required by the statute, but are prescribed by the Land Office, and it is doubtful whether any punishment could be inflicted for the making of a false oath. No penalties are imposed, nor is any provision made, for the recovery of lands improperly acquired. If this statute is to be relied upon to prevent such predatory assaults upon the public domain, it should be carefully revised in the light of present conditions and recent experiences.

This statute provides that no individual shall take up more than one quarter section of coal land, and the purpose of this provision seems to be to secure a large number of independent coal operations. The mining expert who was employed by the Commission was of the opinion, for reasons stated by him, that coal could not be economically produced in that region in any operation with a capacity of less than 250 tons per day. To develop a mine of this capacity requires the expenditure of a very considerable amount of money, and it was his opinion that capital could not be induced to embark in that enterprise unless a greater supply of coal was obtainable than would be afforded by 160 acres. The individual taking up a quarter section of coal land in this region can not, therefore, be expected to open it. He must either sell it or buy several other quarters to go with it.

No limitation of the right to acquire these lands from the Government can prevent their being ultimately monopolized, provided title is once fixed in a private individual with the unlimited right of conveyance. In view of this fact it is worthy of serious consideration whether the Government ought to part with title to its coal lands. These lands are probably of more fundamental consequence to the whole people than any other public lands, and that importance is a constantly increasing one. Might it not be well for the Government to retain title and to lease the right to mine upon such terms as would attract the investment of capital for this purpose?

Such a course would in the end add largely to the revenues of the Government. The veins producing coal like that at Rock Springs are perhaps 10 feet in thickness on the average, and an acre of land will yield about 10,000 tons of coal. It appeared that in the vicinity of Denver at the present time extensive coal operations are being conducted at a royalty of 8 cents per ton. This coal is much superior to that, but the same royalty would yield $800 per acre for what the Government now receives $20 per acre.

The mere money question, however, is of much less consequence than the ability to prevent the monopolization of these deposits, which must finally result not only in extortion from those whose necessities compel the use of this natural product, but also in controlling the industrial development of that whole region.

All the coal consumed in Salt Lake City is brought there either over the Oregon Short Line or the Rio Grande Western, and no other

supply of coal seems to be available for this whole section. The coal upon the Rio Grande Western is entirely controlled by the Utah Fuel Company, which bears the same relation to the Rio Grande Western Railway Company as does the Union Pacific Coal Company to the Union Pacific Railroad Company. It was said that about 80 per cent of all the coal consumed in Salt Lake City was produced by the Utah Fuel Company. During the year from July 1, 1905, to June 30, 1906, there came in over the Oregon Short Line in round numbers. 116,000 tons, being the remaining 20 per cent, and of this about 90,000 tons were from the mines of the Union Pacific Company.

It will be seen, therefore, that these two railroads companies, through their subsidiary coal companies, supply practically all the coal which is consumed in Salt Lake City; and this is true of that entire section. The testimony leaves no doubt that they not only fix the wholesale price at the mine, but dictate the retail price at which the coal shall be sold to the consumer.

The methods by which this monopoly has been perfected have been already stated. Undoubtedly if these railroads companies were compelled to afford to independent producers proper track connections and proper transportation facilities, and to carry this coal for reasonable charges, independent operations would in time spring up. Today, however, the only available coal lands are owned by these two companies. If, therefore, the public coal lands in that region are permanently withdrawn from private entry the effect is to intensify and perpetuate the very monopoly which these railroads have created.

1st Session.

No. 452.

ACTION OF WAR, NAVY, AND COMMERCE AND LABOR DEPARTMENTS ON WIRELESS TELEGRAPH CONVENTION.

MESSAGE

FROM THE

PRESIDENT OF THE UNITED STATES.

TRANSMITTING A COPY OF THE ACTION OF THE WAR DEPARTMENT, THE NAVY DEPARTMENT, AND THE DEPARTMENT OF COMMERCE AND LABOR ON THE SUBJECT OF THE CONFIRMATION OF THE WIRELESS TELEGRAPH CONVENTION, SIGNED AT BERLIN ON NOVEMBER 3, 1906.

APRIL 25, 1908.-Read; referred to the Committee on Foreign Relations and ordered to be printed.

To the Senate:

I transmit herewith for the consideration of the Senate a copy of the action of the War Department, the Navy Department, and the Department of Commerce and Labor on the subject of the confirmation of the wireless telegraph convention, signed at Berlin on November 3, 1906.

THE WHITE HOUSE, April 25, 1908.

THEODORE ROOSEVELT,

WAR DEPARTMENT, Washington, April 23, 1908. MY DEAR MR. PRESIDENT: I transmit herewith a copy of the ac tion of the Navy Department, the Department of Commerce and Labor, and the War Department on the subject of the confirmation of the wireless telegraph convention, signed at Berlin on November 3, 1906, and in accordance with the recommendation of the Chief Signal Officer of the Army, I have the honor to submit the same to you for your consideration, and I suggest its transmission to Congress.

Very sincerely, yours,

The PRESIDENT.

WM. H. TAFt.