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Chapter 33 of 59 · Where and Why Public Ownership has Failed by Yves Guyot

CHAPTER XXIV: THE FISCAL MINES OF THE SAAR DISTRICT

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The Prussian Government Mines.—Decrease of Profits.

Not only railways, but all other state undertakings are exposed to commercial risks. Their profits do not always increase, as is proved by the fiscal mines belonging to the Prussian government. The following tables show the decease in the aggregate in the accounted profits of Prussian mining undertakings:

Years Reported Profits Number of Workmen Profit per Capita
Marks Marks pf.
1890 ..... 24,464,000 36,475 433 19
1891 ..... 17,112,000 57,939 395 36
1892 ..... 13,829,000 57,307 241 33
1893 ..... 15,084,000 55,322 272 66
1894 ..... 15,024,000 57,009 263 55
1905 ..... 30,651,000 84,244 363 84
1906 ..... 27,444,000 89,130 307 92
1907 ..... 14,622,000 92,776 157 61
1908 ..... 16,136,000 96,845 166 62
1909 ..... 17,000,000 101,941 166 76
Average
1890–1894 .. 17,102,600 52,810 321 22
1895–1899 .. 27,302,552 64,375 424 05
1900–1904 .. 34,846,403 77,462 449 85
1905–1909 .. 21,170,600 92,987 232 55

The enormous falling off after 1905 is readily seen; the decrease per workman is 48 per cent., compared with the previous period.

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A similar decrease is to be noticed in all the mining enterprises except that of salt.

1890 1906 1907 1908 1909
Thousands of Marks
Mining undertakings except salt ........ 20,415 20,987 8,058 10,921 11,299
Metallurgical works ........ 1,099 4,245 1,982 882 31
Salt works ......... 1,749 668 3,210 3,930 5,031
Thermal establishments ......... 34.7 35.1 34.0 5.5 111.1
——— ——— ——— ——— ———
Total .......... 23,297.7 25,935.1 13,284. 15,738.5 16,472.1

The decrease in the profits in government mining ventures is due, above all, to the coal mines of the Saar district.

The following triennial tables show the changes which have taken place since 1900 in the cost and the selling price per ton of the coal from these mines:

Cost per ton in marks
Years Salary Equipment Charges for the Benefit of Workmen Taxes Total1
1900 ........ 4.74 1.64 0.44 0.12 1.43
1903 ........ 4.89 1.57 0.52 0.18 1.82
1906 ........ 5.26 1.74 0.55 0.16 1.78
1909 ........ 5.52 2.11 0.74 0.19 2.13
Selling price and profits
Years Price Actually Realized Expense for New Installation Complete Profit Total1
1900 ........ 10.68 0.14 2.76 2.90
1903 ........ 10.00 0.22 1.48 1.70
1906 ........ 10.40 0.28 1.36 1.64
1909 ........ 11.03 0.58 0.59 1.17

1

The net cost has increased 48 per cent. and the profits have decreased 59 per cent. The budget Edition: current; Page: [255] established by the Prussian Department of Mines, Foundries, and Salt Works, has been worked out on new principles, such as a distinction between the costs of administration and the expenses of operation, reserves for new installations, current expenses, etc. Miscellaneous expenses, figuring heretofore in the general budget of the Prussian government, although really concerning financial operations, have been carried over to the budget of the Department of Mines, Foundries, and Salt Works. Hence, there is a decrease of 8,859,177 marks in the preliminary estimate of the net profit as compared with the budget of 1911.1

The gross profit upon Prussian fiscal mining enterprises was estimated for 1912 at 18,215,000 francs; the net profit at 5,938,000 francs. It should be explained, however, that a certain amount had been previously deducted for the Academy of Mines at Berlin, as well as for the Geological Institute.

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Where and Why Public Ownership has Failed

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