"OVER-CAPITALISED."

Auckland Star, Volume LX, Issue 282, 28 November 1929, Page 7

"OVER-CAPITALISED."

COAL MINE INDUSTRY. A MERGER SUGGESTED. A merger of coal mines in certain districts in New Zealand as a means of reducing overhead expenses was suggested by the president of the New Zealand Mine Owners' Association (Mr. W. D.'Hblgate) in his presidential address at the annual meeting in "Wellington yesterday. "There is no doubt," said Mr. Holgate, "that the coal industry is overcapitalised in productive capacity, equipment and man power. The demand could be more economically handled with three-quarters of the collieries in existence. Unfortunately the coal mine owners' business is different from any other business, as it is not possi 0 a coal company to reduce its expends by dismissing labour. • Sjich P have brought about small strike . would be possiblefor « company to work hands STork contiTHiously imte.d of Solution of the difficulty, as far as I can see is to follow the example of other countries and bring about a merger of the companies in certain districts, or, failing that, a combined marketing scheme By such an organisation overlapping and other expenses could be considerably reduced and quite possibly cheaper coal could be sold to the public."