OWNERS' PROFITS

Evening Post, Volume XCVI, Issue 40, 15 August 1918, Page 7

OWNERS' PROFITS

MINES ALLEGED TO BE RUN AT A LOSS.

A well-known Greymouth man interested in mining ventures told a Christchurch Sun representative that the allegations by the Miners' Federation of the large profits earned by the coal-mine owners cannot bs substantiated. ■ He said: "The coal mines in this district are not a profitable investment." Detailing the history of the various mines, he points out that Paparoa cost £250,000 to develop, and he says that not only the original shareholders, but also the second and third debenture holders, lost their capital. He says that the mine has been worked for the past four years on behalf of the first debenture holders, but no interest has been paid, only expenses being earned. The North Brunner Mujing Company, floated six or- seven years ago by an Engh'sh company, lost the capital of the original shareholders, amounting to £150,000. The mine was sold to a New Zealand Company for £9000, and, he understands that it is again in the market.

The Point Elizabeth Company ako worked the "bid Brunner mine for many years at a loss. The Tynesid* Company operated twelve or thirteen years without paying a dividend. At present the mine is worked by the debenture holders. The Blackball Company pays a royalty of Is per ton to Sir Edwin Dawes, and he believed that it had not paid more than 5 per cent, for many years, despite the fact that this mine, has a great advantage through co-ordina-tion of interests with the Union Steam Ship Company, and because of the good steaming quality of the coal it commands a steady market at better prices than are obtainable by other companies. In reply to the argument that the State Mine is profitable, he says that it must be remembered that the State Mine pays no royalty, no terminal dues., and no rates and taxes, like the other companies, and has other customers in NewZealand besides the Government railways, to which the State Mine chargea what it likes.