xt7kh12v6014_473 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 1936-1937 text 1936-1937 2015 https://exploreuk.uky.edu/dips/xt7kh12v6014/data/2008ms006/2008ms006_48/2008ms006_48_7/44408/44408.pdf 1936-1937 1937 1936-1937 section false xt7kh12v6014_473 xt7kh12v6014 N_ D_ BACHMAN
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M E M 0 R A N D U M
To Mr. C. F. Biggert: A
RE: PEABODY COAL 8; INTERLAKE IRON CORPORATION
BLACK MOUNTAIN CORPORATION:
Peabody own two-thirds of Corporation
Interlake " one—third of Black Mountain Corporation.
However, Interlake Iron Corporation have a contract with Black
Mountain Corporation to take two-thirds of Run of Mine Coal mined, leaving
one-third to Peabody.
However again, Peabody have a contract with Interlake to market
all of its coal above 2", and Interlake buy from Peabody whatever it wants
of Peabody's 2" and under coal.
Black Mountain Corporation has two mines and they are mining
about 1,000,000 tons oer year, giving Interlake as their share 666,000 tone,
which separates into 50% 2" and under, and 50" prepared sizes, therefore
Interlake gets 553,000 tons of 2" and under from their own share and can buy
about 166,000 tons of 2" and under from Peabody, making a total of 500,000 tons
of coal to Interlake for coke purposes. The price Interlake pays for the
Peabody screenings is aoout mine run cost of production, i.e. about $1.50.
On the Block, Egg, and Nut sold last year they made:
$ 264,000.00 on all rail coal, netting $2.46 mine
$ 56,000.00 " lake coal , " $2.56 "
3 320,000.00
$320,000.00 divided by 1/2 equals $160,000.00 for each Company
In other words, their production cost was about $1.50 per ton.
Inter1ake's 333,000 tons of Screens x $1.50 cost equals $499,500.00
Then paying $1.50 per ton for Peabody's Screenings, which in amount
is one—ha1f Inter1ake's, or 166,500 n.t.
166,500 n.t. x $1.50 equals $ 249,750.00
Add Inter1ake's cost 499,500.00
a 749,250.00
Deduct Inter1ake's profit 160,000,00
6 589,250.00
$589,250.00 divided by $499,500.00 equals $1.18 cost of Interlake's Screenings
out of which they make their coke ($1.18) compared with $2.58 for our 1956 cost
of coal equals $1.20 higher x 1.6 tons coal per ton coke equals $1.92 higher for our
coke.

 - 3 -
Black Mountain Corporation coal separates about as follows:
22% - s" aiock
19% - 5 x 5" Egg
Q? - 5 x 2" Egg
5/0
Benham: 11% - 5" Block
22% - 5 x 2" Egg
2a%
They suggested that on a three track tipple as ours, perhaps, it would be
better to produce
s" sieck - 11%
5 x 5" Egg — 19%
50%
(They remarked that the all rail freight rate to Toledo was $2.59
to Interlakes plant, whereas the rate to Sandusky for lake transportation was
only:
$ 1.81 (from Black Mountain to Sandusky)
.08 dumping charge
.20 lake freight rate from Sandusky to Toledo
a total ofa 2.09 or a .50q¢saying per ton over shipping direct from Black
Mountain to Toledo furnace plant by rail)
They are mining the Darby #5 Seam at Black Mountain and now getting:
5" Block - $5.10 @ Mine
(Red Heart5 x 5 Egg — 2.75 Q "
5 x 2 " - 2.50 @ "
whereas we are getting · $2.95 for 5" Block) (Red Ccmét)
2.55 ~ Egg >
On the coal they sent up the Lakes last year, they got $5.55 at
head of Lakes:
Railroad freight to Lakes $1.89
Lake freight .50
Dock costs .40
_ $2.79
$5.55 - $2.79 equals $2.56 net at mine with Peabody selling commission out
Mine #50, one of the Black Mountain mines, cost of mining one month:
Days Tons Labor Supplies Fixed Charges Total
20 48,000 1.1166 .2552 .1986 1.5704

 - 5 -
They make an estimate or bogey before hand on the cost of mining:
6 days per month
8 H H
10 n vv
12 H VI
1.4 H N
16 vv u
18 H vt
20 n vv
2 2 H H
24 H IY
Their estimate or bogey on the #51 Mine for a twenty day operation was as
follows. This is printed in a book like our Wisconsin Steel Section Book and
Weights, etc., from the book for a twenty day operation, was as follows:
Days Tons Labor Supplies Fixed Charges Total
20 58,000 1.0985 .2500 .1975 1.5457
Taken off one of their monthly operating sheets picked out at random for a twenty
day operation, the figures were as follows:
20 58,504 1.1218 .2265 .1975 1.5456
They pay nothing for the loading of slate that comes down with the
coal as it is shot down, unless it amounts to more than 6" in thickness.
Where they wish to brush out slate to increase the height of roof
in entries, they pay .05¢ per inch of thickness (averaged over the width of entry)
per lineal yard advanced, i.e. if coal is 5G" plus 6" slate no pay. They have
sandstone in bottom.
If we could have them market even 50% of our total tonnage mined,
as prepared sizes averaging $2.50 net at mine for it, and if by mining 50% more
than our consumption at South Chicago, we could get our mining cost down to ‘
$1.75 per ton. We would have a credit of .75¢ per ton or 50% or .22%¢ per ton
on the whole tonnage mined, bringing our coal screenings for coke purposes at
South Chicago down to ($1.75 - .22%) $1.52%, and we could perhaps still maintain
the best looking coal mining operation in Eastern Kentucky.
The Peabody people would like to look over our coal mining operation
at Benham and examine our method of mining underground, and our tipple equipment
for making prepared sizes, etc., and then make us a recommendation and, perhaps,
a proposition on handling our prepared sizes of coal.
Geo. E. Rose
October 22, 1956

   M E ?» Q E. AAP U iii. `
Tc Mr. C. F. Blg·ert:
HH: PEAACU3 COAL 1 Q;T‘HLAKN Ih©J_COHPQyLTI0H
BLACK LJQOZIEHK li` C0§~;;* ‘» A R; ·¢.* 1*1 W :
Peebw&y qhw t e—tL?rd; ©f CUT DF ti¤;
Interlake " ¤ne—t%ird ¢f blwc¥ Mcwnt in C;r;orctiex.
0 Inxevef, Imt@;luke Irwx Cnrwcruticn »u"e e ccwtrcct witH black
¤0uxtm1n `»:` Ccrqerutivu to iwYe t 2-t {rd; cf hun cf mice Ccel mined, leaving
¤re—tIi?d to Peec dy.
However *&¤i¤» Peehoiy `<"G r cc tract with Interlakw tv market
all cf it? c¤¤l wL—te E", nxd Iiterleke Any ??c¤ Peabwdj Mkntever it want:
cf Pew¥*dy‘s 2" fwd ww*er c`¤l.
Black 1¤unt2i: Cwr»mr;ti*N `wS t"v riiem nn6 iiev ire miiirp
ub¤ut l,000,000 tcrw er ‘e¤r, givi·; I t¢rleKe as t cir el rn 656,000 teie,
rhicl eeeeruten ittc cox 2" and uw*er, #pd 5?" trejwred viwee, t ereFc?e
Ivterlxte getv 556,000 tctr .f Z" and ;¤%~r fT¤r ticir ¤.¤ eNj,·* —  
BG;
(They remarked tkat the all r¢il frei;ht retc to Toledo was QB.53
to Iutorlekee vlant, ¤Lere¤s the rgte to 5hWOU?if for lake transportation was
onli:
o 1.Ll (from Blecn mountain to $uud¤x;O
.0g dumping cberge
_.20_1ake freight rzte from qeuduekr to Tqledo
2 total ofl 2.09 or e :5G¢ saving por ton over vhipvimg direct Tron Black
Mountain to Toledo furnace plant by rail)
They are miAlvQ the Dwrbv #5 Benn it Black Mowwtiim and wow getting:
5" Block — 55.10 A Line
(Red Tenrt5 x 5 Egg V 2.V5 "
5 x 2 " ~ 3.30 ~ "
whereas we ere gettin; - c2,Q5 for S" clock} (REG CUMEt>
V.55 " Era 1
Cn the coal they sent up the Lakes laat yea , they got 45.55 et
head of Lakes:
Railroad freight to Lakes $1.69
Lake fre ipht .50
Dock coete .40
52.79
$5.55 - $2.79 equals $2.56 net at mine with Peabody sellinv commisoion out
. a
Mine geo, one of the Black hountuiu mines, cost of wining one wonthz
Qqie [Eye Labor Supqlies Fixed Charge; Total
20 40,000 1.1166 .2552 .1906 1.5704

 - 5 -
They make en eetimute or bogey before hand on tie cost of mining:
6 deym per ment}
C VV W
1-0 ·r n
12 “ “
lik 77 vv
lm vv ~v
1;.) n -·
BO " "
EQ ” “
  vv rv ‘
Their estimate or begey on the §Bl Mine Ter ; twenty ivy operetiwn rue es
fellows. This is printed in n book like cur Ziocw Min Steel Section Book end
Heights, etc., from the book fir a twenty dev operation, was ev follcwxz
Qqje Tone Lebor Snevlies Fixed Clarégs Tctel
BO 5e,OOO 1.0TQé .25OO .1?75 1.5457
Taker off ~ue or their monthly omeratiwg Sheath wicked ent et random for e t enty
dey c>perntiini, the i”Qj4r¤¥é·wero u::i\>1lc.;;
EO 5c,B@é 1.131e .2235 .1CVZ 1.5456
1YieT` Lrg; ziot¤.i=w; i`©;* tiie Icfiii ii. of :ii!;Le tF¤ t conuen ric·ni .iit}. tkie
coe; ee it is abet dere, inlees it unc xt? tv more t‘zn 6* in tkicknesx.
where they ish to brnsi out slate to increnge the height cf r0’f
in entries, they pay .ob; yer inc) of t ickneue (evereged ever t*e width ef entry)
per lineel yard eévenced, i.e. if coal is B6" :’:   {Level »J;‘:¢*·;#r.21;’ su’*riw·‘»d
in £0n¥~m on tho lnvw aft #ro¤n "T ?r¢"»r *7, ITZG:
`. ‘. Cr m#rr, xt‘t in i~n ¥ro·i‘n¤t in o*rv;¢ of
<;r:n»:n‘civ" , ."‘ if ·"‘.
". Q U0"#*2lw. `iviri n·€w¤vr, -v"t to 'ium VTHFi°”Ht
7‘— e‘,:_;··¢` ·i-j` r`·zm··‘:··< j_::=’·e ,_ "f·i<3’:-·:*n,
21a:F io All i, Zi' ""o`**1 TQ`iTE@”?T, r.¤·;T1=i, t . ZK..
1*.. io Z., ,.;Cf :. .,   ‘·`. ¤_tE:;.\1€’-i"`ia1c&.
Llszume .`•‘·.rr·»wlL, C*Y`Ci *1’,‘i.r;- · Tm; rtzuout, dlnck £~..c¤w’;t· in
<;w~·:’* inn, T‘o¤vZ:=, ”;.
.rr¤n;n:0nb¤ :¢~» vz*e "¤· tPn 0 rontlarnn to ztwr at the S?ic;rc
Ivwoo ·n1 Liv; ;wr~ w·§» KH Poufc t hi: ~" oo:*€c§ &?rn nrrnwy ·~·· ;o¤t: ·or¤ ¤e5* ‘·’ · for ¢;lit‘inr wp the
Gotti “¤r vwkiug inwgnctl nw ;* t?~ · no, flv ln. rmi nlwnt in general,
#nd also ?@r n gener l ro=ia· of ¤ur sort Figure: in tkn occwnrtiy;
Bapurtiaut.
ir. G. . Luke end ir. ‘. Q. Kam wu w? ~ur crm;wny uoccmpsniod
,3*, ., ` ., §)cz<;m1:2lel ram'] Mr, Qosilio `.;;;t?. rv; rz rxirzc in.T";>0Ctt?.c:i .c:?n&S!?.‘y‘
:wo:¢:Uq·¤ .,wcii:uma‘§, LC}, L1 q Q3 ii' @¤·q2 WGIT‘ cov¤:¢~i by téuesa ;·ent1@;yu;
uni rw ort of tHo1r insnwciixi 1; ucv rod by t¥e honor nwuws o" pr. '. .
Luio, Tnmnynl Tino wynwau, gnd ix. ,. ‘. Towmrn, timing »¤iixn#r.
Llso on `odnwsim , Fc?. CL, Ir, Yrnufcr ~nG ir. ?orrnll x? the
?e.bo*y Comprny sport tha Q~y ·uF .>.‘ crkad lwtn into tho nixht until nlavan
o’c10ck ith Hr. wuruv ~n& `:. A¤11ur6 in thm office coin; over our system
of ncwonniing und applying it to their co¢L nh0ot¤. Lamar?. uigyert wnd
fdlbronth snout aGnooéwy rorninq with Lr. p:ckr»: discussing iu a general
Why tho ponnibility of tho anla n? our prnp~r¤d xirwa o? coal by the
Nonhn¤y Scwneny, a vlan &~& an u#°cruton&in5 with Er. Urowdcr ns to the
extent to wTicY we vruld yo in ?urn1¤ ing cost Tiguron t» tho Pon%0¤t Company
in order for t'¤m to nrrivn ut n ron xnuuly uccuruta figunc of production
moot uuomr thoir $ynbom of cost mccrwntimg For thp purpose of their sub-
mitting to us u proposition fur tho anla of our cnmwnrciul coal. it was
understood batwnen Kr. Biggart and Lv. Crowdor tlmt no mnulé be Furnished
a copy of all figures given to them.

 . —2—
in .adu0sd¤; ¤ft~rnn0m, Oct. QU, kr. uwchmmu www uccump¤¤1aM by Nr.
¤ig.arL wni myself to 10. 1 tlmnlu wnurm innpucfi n 0* tho Lippln was mwda nt
the *1wm do warn making prop r·d ;izez, urin uur inspacfinn 0* fin tipnle
r. Lcv0n¤l* ~u” Ir. Luk~ *~” Tlninhné Liviy iusgzcriwn q? Lb¤ Wiwc and cwme
j¤~n tu iuspvct the pr0par¤21—u n? th¤ prmpmrnd ulzea ¤f the lvwcr tipwln ~ith
uc, ln win; Tv. “>1t2 and Tv. Wewmwx in {Mw mine to ¢0mwl¤b~ fhw iU$D“OC$ v cf
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pile bi ¤1l Liana rnwtlaméy,
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