RE THE BLACKBALL CO OPERATIVE COLLIERY COMPANY.

Press, Volume XLVII, Issue 7526, 16 April 1890, Page 6

RE THE BLACKBALL CO OPERATIVE COLLIERY COMPANY.

LIMITED. PROSPECTUS.

TO THE KDIT*E oV*IHE PKKSS.

Snt,—Having been for some time past on the outlook for a safe and profitable investment the prospectus of the Blackball Company took my fancy, and if reasonably reliable offered mc a fine-field, .? To enable mc to come to a decision I have made very careful enquiries regarding the working of various coal companies now Iα operation in New Zealand and from other sources, I find there are some parts of the prospectus which are totally at variance with the Information given to mc.

Ist. I would ask the tors, when quoting Mr Brown s •£»?£??. from the report of the Westland Coalfields Committee, why they give mouth to Lyttelton at 5s per to^jWMw as in said report the «re«ht b statelet Ss fad per ton? This difference, other statements to be cwrect completely swamps the estimated profit of Coal Company andLG,rey Valley Coal Company •»»«* "L""&?tRX£ they are each able to export doublei what they are now doing if they could find a "f nd? therein is the value of Mr Brown's opinion? He has had little or no connection with the West Coastcoal trade, having been there only a few months, and is now in charge of a coke business about being established at Port Pirie. 3rd. There seems to be a very serious omission from the prospectus of any provision for rolling stock, which (from information received from reliable practical men) for a trade spoken of would mean several thousand pounds. 4th. Regarding the cost of production, the provision made for trucking, winding, loading, road and plant maintenance, pit timber, engineman, overseer, blacksmiths, carpenters, ventilation, office cost and management, stores and miscellaneous is, I am informed by practical men of long experience, wholly inadequate, being only Is per ton oa louO tons weekly, whereas it Is well • known that on an output o# double that, the cost for such, items (rates and txxes no small item), exceeds os per ton; and for "dead work" in a country like the West Coast, so full of faults, Is per ton is none too much for that item alone. Proof of what I state is to be found in the published balancesheets of the Grey Valley Coal Company and Westport Coal Company's transactions. It is there shown coal cutting and trucking, railage and royalty cost about 6s to Bs, and gales being at 12s to Us respectively, the difference is all absorbed in the charges enumerated, less the small dividend of 2 per cent, to 5 per cent, on capital. sth. Where is the market to be obtained for the prospective output of 5000 tuns weekly. I have ascertained from the most reliable authorities that at present, it outlet could be found— Tons. The Westport Company can put into market weekly ... ... ... 6,000 The Grey Valley Company ... ...6,000 There are also projected companies— 3 at C-reymouth, each say 3000 weekly ... ... ... ... 0,000 3 at Westport and Mokanui, each say3Uoo weekly... ... ... 9,000

.-.."■ 30*000 And the only market to be conquered is the 2500 tons weekly of Newcastle coal that is now imported; as, for a foreign market, I am told, it as far off as tee Greek Kalends. However, if the misgivings thus caused in my mind can be removed, myself and friends are prepared to subscribe for a large number of these shares. Trusting you may consider these remarks of sufficient public importance to afford them space in your valuable paper, —I am, &C, Investor. , New Brighton.