WAIKATO COLLIERIES

Greymouth Evening Star, 31 October 1933, Page 3

WAIKATO COLLIERIES

PRICE-CUTTING COMPETITION.

[special to “star.”]

AUCKLAND, October 30. “The bogey of too many mines in the Waikato, is still paraded, but it is our contention that there is no room to; all the existing collieries to w r ork a reasonable period each week, and secure shareholders’ investment, miners’ homes, and a reasonable return tor the canital, and this condition should apply to-day, but for the selfish desire of some people to dominate the industry." said Mr W. F. Brooke Taylor, chairman of directors, at the annual meeting of Renown Collieries, Limited.

The directors regretted to report a trading loss for the year of £3349. In the early part of the year, an arrangement was made with the Pukemiro Collieries for joint selling, but it was terminated by mutual arrangement. Combined selling would have been beneficial to both companies, but the selling of coal by competitors at under cost was the prime reason for the company’s associates requesting a cancellation of the arrangement. Coal mined was in excess of last year. During the latter portion of the year, the price of coal was forced down by competitors to 12/6 a ton for house coal, 10/- per ton for kitchen coal, and prices ranging from 6/6 downwards for slack. The prices were under the cost of production, and it was estimated that £40,000 was lost to shareholders in the Waikato coal companies during the twelve months, without benefit to the public. The purpose of this loss of capital still existed and the reason was a definite desire on the part of some of the collieries to put the Renown and another company out of business. An arrangement had been entered into with the Wilton Collieries for amalgamation, but owing to circumstances over which the directors had no control, it was found necessary to terminate the negotiations. The company had a large investment in the Waikato Carbonisation Company, but the investment could not be looked upon :is a profitable investment in view of the competition from coal. The concern was of national importance on account of the research work undertaken, but it. would appear that it would probably be forced out of business by the same tactics that existed in the coal trade, generally. It was the intention of the directors to issue debentures to enable the guarantee held by the bank to be satisfied, and to supply sufficient working capital.