COAL PROFITEERING

Feilding Star, Volume XVI, Issue 3929, 9 February 1920, Page 4

COAL PROFITEERING

RAILWAY DEPARTMENT

CHARGED

(Per Press Association.)

Christehureh, February 7. A new factor has entered into the coal situation according to an article in the Sun, which says that, whereas the Railway Department has previously been accused of greed in the matter of securing stocks, there is now a distinct, grievance that it is exploiting industries by the prices it charges for Australian coal which it allows to be released. The Department is allowing 700 tons of coal to go to the threshing industry from a shipment brought by it in the Nga_ kuta from Newcastle. This coal cost lbout 45s to land, but the Department is charging distributors 60s per ton on trucks at Lyttelton, thus making a clear profit of 15s per ton or j €525 by the transaction.

This case, Iho Sun assorts, is not an isolated one. It apponrs part of a deliberate policy to make up, by outside sales, at high figures, losses sus:uim\l during operations in securing -oal at the time of the reduction of tin , railway services; in other words. it is exploiting the needs of consumers to an extent which, in a private concern, might lay it open to charges of profiteering. On many of its sates lately the Department is charging ,ibout 60s per ton. In Wellington rc~ ,cntly it released 3000 tons ot coal. •x the YVaitemata, to consumers at o!)> per ton, the initial eo-t in Newcastle being l"s f>d per ten. In this instaneo the freight rates an- said to have been !i2s (3d )ter ton, and possibly 2d pel- ton would cover insurance. This makes the lande.l cost f>l is _ 3d. .'oal which cost to land in the vicinty of 42s fid to -T>s per ton, was re'eased the other day to the Christ - hurch Gas Co. at 60s per ton on aucki at Lyttelton. The landed cost of Australian coal from the I'nion Steamship Co.'s steamers is -Ills .'Jd. Last month supplies of coal were urgently required by the Dinicdin Mil licipnl Oas Works. A vessel was at Dunedin with coal, but the Departiient would not release any of the argn. Instead, as suppliers were ivailable at. Lyttelton, several hun.ired tons were sold at the steamer's -ide there. In addition to the Dunelin niunicij)ality having to pay a hi;:h ate for coal, it had also to face a barge of 23s per ton for railage to hinedin, part ot which also reprcenled profit to the Department. In e-p-ct to TIKI tons just released from 'v Ngatiika lor the threshing indusiv, it i> gathered; that importing hstnbiitors proposed to the Depattieiit that they should borrow this Hiantity from the department to neet urgent demands of the indus ry and repay it out of their first -lu'pmcut. Tlie Department refused, Sut. instead, sold distributors 700 tons i- described' at 00s per ton on trucks it Lvttelton. Naturally mill-owners consider that th.-v aie being unfairly Heated, because in framing their .breshing charges they did not. antiipate that coal was to reach so high i juice as it has reached. *For coal ■<.ming from South Africa ex \ mine. .ihich the Government i> distributing to threshing and inn-zing indus! ne*. ■he price «ill also be extraordinarily ■ligh. For freezing companies the maximum charge is £3 I'As l>l a ton net on '.rucks at Lyttelton. and Mr mill-ouners, who take smaller quantitles l_".'j 12s per ton on trucks at Lvttelton. less Is per ton for prompt • a.h. Merchants who usually import viial are securing supplies tor distribution amongst these industries at -J--pcl ton less. The jHisilioli, therctoro. i- that the Government allows them •>v per ton for handling, but the Hail wav Department feels itself entnl»-l to at least 15s for merely releasing coal at the ship's side.