MARKETING STATE´S MINES FROM LONEA,
INTRODUCTION OF SECRET ACCOUNTING SYSTEM
AND RECALCULATION OF COAL PRODUCTION (1926-1930)

Abstract:

The main coalfields of Romania were situated in the Jiu Valley (Hunedoara County). Besides the great joint stock coal companies connected to the National Liberal Party, the Romanian state had its own exploitations in Lonea town, in order to deliver fuel for the state railways. As coal mining was a very profitable business, the great private companies intended to take over the state mines in their own management. The goals of the coal companies were favoured by the fact that the National Liberal Party was in power and in 1924 was adopted a Law for the private management of state ownerships. A pretext was needed for setting up a private management in the state mines and in 1924-1925 the local offices of the railways were instructed to reject the coal produced at Lonea. Thereafter the coal output decreased drastically and heavy financial losses were officially recorded. It was the right moment for the great coal companies to offer themselves to take over the management of the state mines. As a result, in 1925 the Lonea joint stock company was set up and the largest part of the shares was taken up by the Petrosani and Lupeni private companies. Immediately the recorded output increased and the enterprise became profitable. The secret accountancy was introduced in the management of Lonea company, i.e. assured a 30% clear profit and it reported only a half of the real production. In this respect the author succeeded to achieve the new computation of the coal output, of the total turnover and of the gross profit obtained by the Lonea company for the years 1926-1930. The newly obtained values are considerably higher than the recorded ones. The fresh calculated average output of 241.758 metric tones of coal for a year is two times bigger than the 120.879 metric tones officially recorded one; the fresh computed average sales figure of 285.133.821 lei is 2,49 times bigger than the 114.480.990 lei published figure. The reported average clear profit represented only 3.448.929 lei in a year, but our fresh calculation points out a real gain of 85.542.370 lei, i.e. 24,80 times bigger.

Keywords:

mining industry, accounting, Transylvania, Jiu Valley, Romania