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WHAT IT MEANS.

INCREASED FREIGHT ON COAL

OWNERS AND RAILWAY BOARD CONFER.

(BY TELEGRAPH. PRESS ASSOCIATION.) WELLINGTON, July 3. A deputation representing the _Waikato coal mining companies interviewed the chairman of the Railway Board (Mr. Jones) to-day. It was contended the new railway tariff on coal would operate adversely to local, companies as compared with imported coal, and as the railways were run tor the benefit of the State, the department should not impose long distance freights that would injure the W aikato mines and the industries dependent upon their product. Last year the coal imports were a quarter of a million toils more than the total \v ai ~ kato output. The ctep«*Rtion stressed the fact that the reduced output from the coal mines will: (1) Entail serious loss to the coal companies; (2) inaoility on the part of the companies to dispose of a large quantity of slack coal wiL necessitate an increase to consumeis of the price of household and steam coal; (3) loss of profits will reduce the taxation payable to the State; (• reduction of output will compel vh discharge of a large number of miners and other workers; (S’; would anoc. the earnings of miners through t irregularity and insufficiency of emp-oy meat.

>—Mr Jones said there wer e one or two points he would like to clear up One was: Why should the cost o working lignite coal be greater tha.the cost of working bituminous cm Hon. E. W Alison: “I am aware that the cost is greater.” He added that there must be some misconception in the mind of the chairman ot tm Railway Board with respect to the point. * The Waikato mines had as up-to-date plant as it was possible to get. They made the best possible arrangement with the miners, and the mines were worked as economically as possible, so that the cost of production was made as low as possible.

Mr. Alison added that the coal companies were not making excessive PlO- - The Taupiri mines, which had the largest output and had been the longest established, had pot for years pan. more than 7-A per cent. That was making no allowance for depreciation b.\ reason of exhaustion. Air. Jones said the board had to look at the matter from its own point o. view, and that was that the traffic had got to pay for itself. The railways could not afford to carry coal at a loss. The cost of handling coal ior ’long distances, say to New Plymouth and to Wellington, would only just pay the railways on condition that they hauled the waggons back apart from that cO‘t In other words, they lost a. proportion of the cost by hauling empties lac! A large proportion of waggons must be hauled back empty. Under the new rate tlie department could only jus! make the traffic pay for itself. A general discussion followed, in the course of which the chairman of t.’' Railway Board said, in answer to a question, that the total amount of additional revenue which the railways would require to get from the coal traffic referred to, over and above the existing rates, was about £50,000. Air. Alison said the coal-mine owners would now be in a position to consider the matter, and perhaps make a proposition for the consideration of the board. The coal-mine owners and the board then held a further conference in committee.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/HAWST19250704.2.44

Bibliographic details

Hawera Star, Volume XLV, 4 July 1925, Page 5

Word Count
568

WHAT IT MEANS. Hawera Star, Volume XLV, 4 July 1925, Page 5

WHAT IT MEANS. Hawera Star, Volume XLV, 4 July 1925, Page 5

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