coal-getters or hewers or colliers and all the other grades of labour
who are essential to this the primary operation.


THE QUESTION OF ROYALTIES

Coming back to the royalty-owner, you will see his functions are not
very onerous. He signs receipts for his royalties and occasionally
negotiates the terms of a lease. But as regards the coal-mining
industry, he "toils not, neither does he spin." I do not say that
reproachfully, for he (and his number has been estimated at 4000) is
doubtless a good husband, a kind father, a busy man, and a good citizen.
But as regards this industry he performs no essential function beyond
allowing the colliery-owners to mine his coal.

What is the total amount annually paid in coal royalties? We can arrive
at an approximate estimate in this way: Average output of coal for five
years before the war, roughly, 270,000,000 tons; average royalty, 51/2d.
per ton, which means, after deducting coal for colliery consumption and
the mineral rights duty paid to the State by the royalty-owner, roughly
£5,500,000 per annum paid in coal royalties. Regarding this as an
annuity, the capital value is 70 millions sterling if we allow a
purchaser 8 per cent. on his money (12.5 years' purchase), or 551/2
millions sterling if we allow him 10 per cent. (10 years' purchase). For
all practical purposes the annuity may be regarded as perpetual.

Now the State must acquire these royalties. That is the only practicable
solution, and a condition precedent to any modification in the structure
of the coal-mining industry so long as the participants in that industry
continue unwilling or unable to agree upon those modifications