CO-OPERATIVE COAL MINING.

Auckland Star, Volume LII, Issue 25, 29 January 1921, Page 10

CO-OPERATIVE COAL MINING.

A WAIKATO SCHEME. A now departure in respect to coal mining in New Zealand is at present under contemplation, namely, the formation of a company on the co-operative basis. The owners of some 2000 acres of coal-bearing lands in the Waikato are considering the formation of a company on lines so as to enable the employees to share in the profits and be represented on the directorate. Roughly, the owners, of the area value their land at £20 per acre, but are prepared to submit that to an independent valuation, and to accept debentures in coal rights. They are prepared to deal direct with a company, but not to give options to enable any syndicate to exploit any company taking up the area. No promoters' shares are to be issued. It is also arranged that any profits after payment of interest on debentures issued to owners of land in payment for coal rights shall be distributed as follows: To shareholders providing capital, the present bank rate of 6i per cent interest, plus one-half the remaining profits, and to employees the other half remaining profits as a bonus on wages. It is also proposed that onehalf the directors shall be shareholders and the otaer half employees. The latter is. however, conditional upon an undertaking from the Miners' Federation that "no dispute arising in any other privately owned mine shall be made the occasion for calling the men out on strike or initiating a 'go slow' policy as regards the co-operative mine, and an undertaking that so long as- the employees have equal representation on the directorate as provided for the Federation shall not influence the workers in this co-operative mine to strike or 'go slow' as a result of any decision arrived at by the directors." Until the mine is opened up it is proposed that two of the present "Labour members of Parliament shall be asked to join the directorate to represent the interests of future employees in matt€rs such as provision out of funds for proper housing accommodation.