RUINOUS COMPETITION

Ashburton Guardian, Volume 54, Issue 190, 25 May 1934, Page 3

RUINOUS COMPETITION

NORTHERN COAL COMPANIES.

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AUCKLAND, May 24

The effects on the coal-mining industry of the fierce" competition for trade' with its resultant price-cutting, were outlined by Mr K. W. Allison, chairman of directors of the Taupiri Coal Mines, Ltd., at the annual meeting of the company. He said that the loss On the year's working, without making the usual allowance for depreciation, was £12,248. , Mr Alison said that at no time in the history of New Zealand had there been such competition in the selling price' of coal as during the last four years, particularly during the last twelve months, when the selling price was reduced to such an extent that it was impossible for the company, however favourably, situated to mine coal except at a serious loss: He said that it seemed inconceivable that such idiotic and ruinous 'competition could have been commenced and 'continued for such a length of time. Some of the firms had be<nm to cut prices in the hope or attracting sufficient trade to allow them to continue in existence. ine result was that other companies had been forced to reduce prices, and a coal war followed, which had lasted for four years, with disastrous efiects to all engaged in the industry. It was surprising how many persons had been persuaded to invest in new coal mining ventures, notwithstanding that so many North Island and other coal companies had proved financial i failures.