xt7kh12v6014_449 https://exploreuk.uky.edu/dips/xt7kh12v6014/data/mets.xml https://exploreuk.uky.edu/dips/xt7kh12v6014/data/2008ms006.dao.xml Benham Coal Mines. (Benham, Ky.) 151.0 Cubic feet 302 Boxes The Benham Coal Company records (151 cubic feet, 302 Boxes; dated 1911-1973) focus primarily on the early years of Benham Coal through the 1940s, including office files, Employee Benefits Association records, files on accidents and safety, and photographs. archival material English University of Kentucky This digital resource may be freely searched and displayed. Permission must be received for subsequent distribution in print or electronically. Physical rights are retained by the owning repository. Copyright is retained in accordance with U. S. copyright laws. For information about permissions to reproduce or publish, contact the Special Collections Research Center. Benham Coal Company Records African American coal miners--Kentucky--Harlan County Coal miners--Kentucky--Harlan County Coal mines and mining--Appalachian Region Coal mines and mining--Appalachian Region--History. Coal mines and mining--Kentucky--Benham--History Company towns--Kentucky--Benham National Bituminous Coal Commission text National Bituminous Coal Commission 2015 https://exploreuk.uky.edu/dips/xt7kh12v6014/data/2008ms006/2008ms006_37/2008ms006_37_13/42542/42542.pdf 1939 1939 1939 section false xt7kh12v6014_449 xt7kh12v6014 in ~
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52;; xxswyz uc? 10115 REVERSE 2 Im
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FOR USE OF DISTRICT STATISTICAL BUREAU `
DO NOT FILL IN
Report N0·._______C0de N0. _____.. Mine Classification_________________....
Market Areas Shipped Lo: Consumer Classes:
N0..._..... ......__________L0ns Code NO.________ ...._.._.........t0ns
NO·......._. ._,_____________t0ns Code N0._________ _________________L0ns
l C0¤iP8Ct.._..._.____________Lons Shipped by_________________________.___.
Sp0t............—..........tons Tons Interstate.....Intrastate ........ »
Note A: When this reporn is made by a Tg be_£llLgd in by Producer
producer also shipping coal in car-load Preparation: Hand C1eaned...._______L0ns
or cargo lots these items (*> will not Washed ____________L0ns
be filled in. Dustless l...________L0ns
V Unher Treatment ......._....t0ns
INSTRUCTIONS FOR MAKING REPORT
1. File wich Lhls report a schedule showing orders for fumure delivery accevmee
during Lhe nerlcd of cnla rencrn. This schedule annuln snow daze or period of
delivery, amount 0f Lennage, size if coal. aellln; price, agreed discounts, it BUY,
delivery enarges, if any, and Lhe name and address of une buyer. II an order is
in wrlnlnq. ln need nec me included ln the schedule, lf a true copy is filed wlnh
the schedule.
2. Hake a senarane entry for each quanilny or coal nf each slge LO each quantity
buyer, lndlcenlng by a cueckmark in une rlgn;»han0 <0lumn lf che sale was 0n a
contract.
3. On¤maiLe ;Le ”T¤ ai wl rash salee en@ single lned l¤ns” enter aggregate Of Such
sales. making a seraraae enlry {nr each Gilferena nrice and for each different size.
4. if any cial ln arid fur vellvery ®uLsine `; Lae ¤;gLe, nr Outside 0f the market
area ln which Lhe nine lr lncameq, li musu me sheen Separately cn Lne rencru. Upon
applicarlon by Lne wr·nuv»r, ;he districa smaLl2l2tio;ml }55;h1uni¤.>u.s
Con]. Ccmwi;esi.·;>n‘g Oyder Nw. ;,i`i;;, tosgq alamy im ci or lea? or of
- stm·<:’1:i.a>ns, 8, of which a copy hos been ;;1e;c?’7.
WHEREAS, the Commission by its Order No. 236, dated March 22, l9l"58,
requires all producers of bituminous coal to file complete reports showing
the total costs of the tonnage produc ed and realization prices derived from
the sale of coal for each mine and for each calendar month so as to include
all coal produced and all coal sold on and after the first day of January,
1958; ani
WHEREAS, the *··ommission believes that in order to better to perform its
duties under the Bituminous Coal Act of 19167, and in L.·.}.9l$.€§
I Items 2, 3 and 4. Production. The items here called for,
designated, "2, Loaded by hand, ____ net tone", "3, Loaded by
machine, ____ net tons", and "4, Mined by stripping,
_ ___ ______ net tone", relate to methods of loading. For this
purpose the most accurate record may be the payroll or bulletin
weights. These items on the cost reports are merely informative
and in total the figures shown need not, and in some instances
probably will not, add to the tonnage shown on Item 5, designated,
— "Total Product ion".
5433 - 12-5-38
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However, the discrepancy should not be unduly large. If unusual in
_ amount the discrepamy should be explained by a notation on the cost
report or by a memorandum attached to it.
Item 5. Totelj’roductiogi_,__(must egual total tons in ljg_m_2Q
__________ ne_t__1Lq;s_. This item, which, by the instructions con-
' te ined on the form, must correspond to Item 2:5, is the proper divisor
_ for producing and administrative costs. Reference to Item 25 shows
that it is the aggregate of all of the tonnage of commercial sales,
plus coal used for mine fuel ain other production purposes, exempt
coal, ani "controlled" sales, adjusted for the opening and closing
inventories. This item represents, there fore, primarily the merbhant-
` able coal shipped or otherwise disposed of, as distinguished from the
payroll tonnage. THB tonnage shown in ltem 5 and in ltem 25 represents
the production of the plant after the elimination of impurities thrown
out on the picking table or other cleaning facilities, or losses in
the washery, if such a facility is maintained. Due to such indicated
losses from payroll weights and also to variation between tipple scale
weights and railroad scale weights , there may properly be discrepancies
between the sum of Items 2, 5 and 4, and the tonnage shown in Item 5
and Items 5 and 25 should, however_,__agree.
Items Ga, ob, 6c and 6d. Lzrbjir Costs, The cost forns call for
labor costs broken down into the items "Day men", "Mining", "Yar dage
and deadwork", and "Mine supervisory and clerical employees". In a
_ few instances this breakdown. has been ignored, and producers are re-
quested, when exact figures are not available for any reason, to
. apportion the amounts of the intermediate items requized to make up
the total labor cost appearing on Item 6e on the basis of the best
information at hand. Failure to make such a breakdown causes stat-
istical difficulties in combining the se data with cost data of other
producers who have xeported the full information required by the cost
schedule.
The labor cost of trucking coal from the mine to a corrmon
carrier (railroad, boat or tmzck) should be included in "Day men",
Item 6a; _*g1_e;__la_bor ccst of trucking to_g consumer should be entirely
€X(}].\£l§_Q.__QlLO_Iil the cos t repor_t_.
The wages of employees loading coal by the use of mechanical
devices should be included in Item oh, "Mining", and not in Item Ga,
"Day men".
Where the owner or owners of the mine are themselves engaged in
. the work of producing coal, the value of their services should be
included in the producing cost along with the wages paid to hired
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employees. A ch rrge shoul d be made for the reasonable value of the
' services of the owners, me thor engaged in the mining of coal, the
management of the plant, or the sale of the coal.
. Profits of a partnership or of a business of an individual owner,
or of a cooperative venture, beyond the reasonable value of the ser-
· vices of the owners, measured by the current cost for like hired
services in the locality in which the mine is located, should be ex-
cluded from the cost report and treated as profit.
Item 6a, "Day men", should not include tie cost of maintenance
and repairs of miners' houses nor the labor cost of any other activities
not directly connected with the produc tion and marketing of coal.
Item 7b. Powe_r;p_urchas_ed_. This account may be construed to
include not only power purchased from an outside public utility, but
power produced at a central power plant of the producer, which serves
several mines, or which, while serving but one mine, sells to other
interests a substantial part of the energy generated, but the producer
should in any case fully describe the accounting procedure. Where
this condition exists, all cost of the fuel, whether coal, gas, or
fuel oil, all labor and supplies necessary for the product ion of power,
and a proper portion cr the insurance, depreciation, workmen's compensa-
tion, social security and property taxes, etc., applicable to the power
plant , should be charted to an appropriate account and the aggregate
A cost of the operation of t he power plant should properly be apportioned
_ to the mining plants, and to other facilities served. Obviously, in
such a case as this, there should be no clmrge for the same coal in
Item 7c.
» The amount t_g__be included in the q_o_st report is the___gt cost
after credit or adjustrent for power sold, or used by other plats.
The reapljiation for coal used at such a central power plant
plgxld be reported in Item zlb, "Exempt coal".
_It_ein_ 7c. Coal used to produce coal (at market price).
When a mine generates its own power, even though for this pur-
pose it uses an inferior or unmarketable product, a charge should
appear against Item Vc. These remarks apply also to coal used for
. the purpose of drying sani and to coal used at tie blacksmith shop
or any other facility of operation at the mine. In every case where
‘ there is an entry on Line Bla, "Coal used to produce coal", there
should likewise appear a reflection of the value of that coal on
Line 7c. The ton rage which forms the vasis for the charge to cost
in Item '?c should be identical with that reported for realization in
Item Bla. The dollars shown in Item '7c may properly difrer from the
value shown in ·*·tem Bla, by the ralue of generated power sold. Item
` Vc should show net cost after such credits. (See Item Vb, "Power
Purchased.")
Item lOa. Taxes__g_zL mine proper ty and eguipment_a__n_d other taxes
_i_n___Lieu thereof. The term "Mine property and equipment", as here
used, includes all of the real pioperty acuially used in the minirg
operation; the value of the leasehold, when the mine is operated on a
royalty basis the value of the improvements, equipment, etc., which
‘ · comprise the operating plant. lhis term does not include the value
of miners' houses, stores, nor other structures which bring in a
· rental; nor unassigned or reserve mineral acreage, nor farm lands or
timber lanis not directly attached to the reporting mine. The taxes
relating to such properties should be separately accounted for and
not included in the cost report.
item lOb. Uorporate, privileges and severance taxes, and sales
taxes not paid by the consumer;. income taxes are properly accounted
for as deductions from income and not as part of the product ion cost.
ouch items should, therefore, not be included in cost . "oross sales
‘l‘a:ces" not specifically passed on to the consumer are properly a part
of cost; "'Uonsumers’ T&xes" are not.
"Sgverance 'l‘axes" paid upon the coal as mined are a proper wrt
of cost.
ltem lOe. ‘l‘a:< - vituminous ooal Act of l957. The amount shown
shoul d, in the aggregate, equal the sum paid to or accrued to the credit
of the Uollector of lnternal Revenue covering the period in question.
ltem lOhL___.Lnsura;c e (all classes except compensation and vocational
_ disease}. ine amount here charged should be that applying to operating
property only and should exclude tm cost of insurance on miners’ dwell-
ings nnd all other rental property, for which a separate accounting
should oe made. y
noyalti_e§__.
ltempL_Qi. Royalties are rents paid to a lessor for the
privilege of extracting mineral from the property of the lessor. They
generally bear a direct relationship to the producti on tons, and,
ordinarily, the amount to ce included in the cost report may oe deter-
mined by multiplying the contra ct rate of royalty by the tons produced
from the leased property within the signifi cient accounting period; but
when the minimum royalty provided for by the lease is set so high as
to preclude the possibility of its being currently earned, the amount
· shown as item lOi may properly be the minimum royalty paid.
when the accounting practice of the producer charg es to cost
currently only the earned royalties, the excess of the minimum over
the earned royalties ceing charged to an account designated "Prepaid
xcoyalties", "Advanced mzyalties", or some similar name, with the
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expectation that these excess payments may in a subsequent period
be availed of to reduce earned royalty payments, and where, within
the recovery period stated by the lease, any portion of these ad-
vanced royalties is not recovered, the unearned portion, immediately
_ upon being barred from recovery by the terms of the lease contact,
msu; be charged to "Depletion" and included in the production cost
. in addition to the current month's estimate. In such a case, the
fact should be fully explained by a notation on the cost report, or
l3}1I‘Cl1,§$l the medium of a note to be attached to the cost report. The
r charge to the cost Of operation of such additional amounts transferred
from the "Advanced Royalty" account is permitted only with respect to
that portion of the advanced royalty most recently outlawed against
recovery. In the accounting for unre coverable "Advanced ¤oyaltiss"
· for prior periods, the charge should be to Profit and Loss and not to
cost of production.
when the compensation paid to a lessor under a lease agreement
covers not only the right to remove the mineral, but rental of the
plant and equiupment owned by the lessor as well, and when the leased
proper ty includes miner's dwellings and other property not primarily
- a part of the operating plant, the amount of the rental paid should
be equitably apportioned among the various classes of property and
that portion not applic able to the mining operation should be ex-
cluded from the cost reports.
item lO_3;:___1g__epZLetion. {Use income tax b_as_i_s__i_1lr calculatioxli
Under the provisions of the Coal Mgt, Part II (a), relating the
allowance for depletion to the amount "as determined by the Bureau
of internal ltevenue in the computation of the Federal income tax",
percentage depletion or depletion cased on the cost or the l9lL5 value
of mineral may be included in cost, the amount allowable being depen-
dent upon whether or not the producer shall have elected to take
depletion on the percentage basis in the determination of net income
for the purpose of the Federal income tax. The provisions of the
Revenue Act with respect to percentage depletion are, generally, that
tm producer must elect whether he shall take depletion based on cost
or the 1913 value, or in lieu thereof, accept percentage depletion,
computed on 5% of the gross income from the mining property "excluding
from such gross income an amount eqzal to any rents or royalties paid
or incurred * * * * in respect of the property". This election, once
_ made, for the purpose of the Federal income tux, cannot be changed.
Under the statutory provisions of the Coal Act the amount to be inc-
. luded in cost is limited to the allowance fortke rgderal income tax.
The amount of the allowance for percentage depletion being
limited to 50% of the net earnings from the mining property, it is
apparent that where losses occur in a given month, current adjustments
may be necessary as to the earlier estimates of the amount of depletion.
hstimates should, therefore, be made on the basis of the cumulative earnilngs
to the date of the report - not merely upon the basis of earnings for
the current month. At the close of the year, when the net
..6-
income shall have become defi nitely known, the estimated depletion
should be corrected to a basis measured by the net income reported
to the Bureau of Internal Revenue.
‘ £t_eg.»___lQ_}&__l)_;>‘Iy$a;§L_a_;t_j;_oI1_. See counent on Item lOa, "'I‘axes",
for description of property the depreciation on which should be in-
’ eluded in Item lOk. Exclu_d_e__dpp_re_c}_eL’g_o_1£rmi_rL.l;_..,..s ash 21..1 asa..J2s
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