LANGUISHING.

Auckland Star, Volume LXV, Issue 253, 25 October 1934, Page 8

LANGUISHING.

. THE COAL INDUSTRY. DEPRESSED CONDITIONS. i. PRESIDENT REVIEWS OUTLOOK. (B.v Telegraph.—Special to " Star.") WELLINGTON, this day., i The position of the coal industry in i- New Zealand was reviewed by the prer sident, Colonel W. 1). Holgate, at the - annual meeting of the Coal Mine Owners' Association to-day. He said 1 that, in spite of an increased output in j the North Island, the industry was in an unsatisfactory and depressed condition. "The agreements entered into in Feb--1 ruary last with the Miners' Union were i for a term of 12 months, and although not signed, and speaking generally, have been well maintained," said the president. "It will be necessary to again " meet the union's representatives in j February next to consider new agreements. Work at most collieries, and more particularly in the North, has been more steady, resulting in a lesser num- , her of idle days. The increase in work- " ing time is duo mainly to the greater ) demand from the Railway Department , for Waikato coal. The main causes for J the industry's depressed condition are ) that there are too many mines operating and over-production, with the attendant L keenness in competition, which results in some districts in cutting of price* below the cost of production. This position has obtained during the past two years to . all companies in the Waikato, and has | resulted in heavy losses to all parties. Although prices have recently advanced ' slightly in that district, the companies . are at present depleting their coal , reserves without producing any profit. ' Coal mining at present is not a paying , proposition. i Combined Marketing. 1 "Some scheme of amalgamation, cooperation or combined marketing should be considered in order to bring about the desired result," continued the presi- ' dent. "This is a matter entirely in the hands of the coal mine owners, and can be effected if the will to do so is there. In Australia and other countries it has been found necessary for the Government to step in to prevent price-cutting and to protect the industry. This practice is one which I advocate should be avoided if at all possible. I am convinced that without the introduction of some practicable scheme, the industry will continue to languish in spite of increasing population and industries. "There is one direction in which the Government can be of material assistance to the industry, and that is, instead of further, expenditure on hydroelectric schemes, serious consideration should bo given to the question of generating electricity from coal with power stations erected in the vicinity of the collieries. This would be not only a means of augmenting the number of employees at the mines, but would convert the national loss I have just referred to into a national gain. Apart from electricity, the increasing use of Diesel oil engines is affecting, and will still further affect, the demand.for coal. What is happening in New Zealand is the experience also of other coa) producing countries. It is considered that burning raw coal, with the possible exception of anthracite, is uneconomical. During the past ten years the questions of cheaper and more economical methods of using coal and the recovery of the valuable properties of coal have been the cause of much scientific research, not only by coal m;'ne owners, but by the Governments of various countries. Position in Future. In conclusion the president said:—"l am convinced that in future years New Zealand brown coals at least will be carbonised, as I consider carbonising on similar lines to those adopted in the Waikato, is the only ideal process for New Zealand, as high grade smokeless fuel and oil suitable for forming into deisel oil, light 0.l and bei.iinc is obtainable in payable quantities, the demand for which is already here and increasing. - "In addition to the extra men employed on the various plants, more miners and mine workers would be required to produce the raw coal necessary for conv3».3ion into patent fuel and by-products. While there will always be a demand, for good quality coal, that demand will Lc a diminishing one owir.g to the greater use of oil, benzine and electricity." The following officers were elected:— President, Colonel W. D. Holgate; vicepresident, Mr. W. A. Flavell; executive, Messrs. W. Goodfellow, W. Excel 1, W. Hardie, F. W. Mitchell and R. B. Bail.