STATE COAL MINES.

Lyttelton Times, Volume CXVII, Issue 17286, 29 September 1916, Page 6

STATE COAL MINES.

to ihk zmiOK. Sir, —Tlie article with reference to* State coal mines appealing in your issue of 2dth inst. can hardly- be called an unbiased statement of the-; facts with reference to the general positron of the State coal mines. For instance, your statement than last year the business showed a profit of some £2500, but that tho year before there was a loss of £14,150, does not go far enough back for practical purposes. The published accounts show that the less on trading during the last four years, after allowing for profit, yen mention, is no less than £-15,000. I hive not been able to examine accounts prior to those for year ended Atarch 31, 1913* but my recollection is that sugstantial losses were recorded nearly every year. It should also be remembered that, bad as the position appears to be when tlie above figures are taken into consideration, it would be Still worse if tho State enterprise was charged with many expenses which have to bo borne by competing private coal companies. The State, probably, escapes charges to tho extent- of about £IO,OOO per annum in this way on royalties and wharfage alone. Their published accounts, also, apparently make no allowance for interest oil capital, so that,, looking at it from all points of view, the loss te date must have been fairly heavy. The Hon G. AY. Russell’s statement, that the entry of the State into the coal market lias exercised a steadying influence on prices is a mere unsupported assertion which is contradicted by the facts. The competition of Australian coal has been and is now the great factor in steadying prices. By no stretch of the imagination can New Zealand be called either isolated or highly protected _as far as coal is concerned. . That prices for New Zealand coal have not hitherto been cxces : sive is proved bv the fact that comparatively few New Zealand collieries have ever reached the dividend-paying stage. . . , . . ' ‘ Your argument that it- is ol some value, that- the railways ana other Government- departments should be able to draw their coal from State mines, is decidedlv, weak if the 1913-14 results are anv' guide. Out of a total output of 173 411 tons, onlv 2G.BS-I tons were taken by the railways and other Government departments. I do not think it will be found that this proportion has been greatly exceeded in later years. Railway requirements ’ alone probablv exceed 390,i)0L' tops, per annum, so it would be a very poor lookout for ihe. railways if they were intirely dependent on the State mines. It- is* a fact, also, that the railways are now paying higher prices than they were before the establishment of tlie State collieries. Your statement that the railways and other Government departments have the first call on ilia output of the State mines is open .to challenge. It was intended that this should be the case, but I think' tho reverse procedure has been followed, and that th,e greater part of the output lias been disposed of to iho public and shipping companies, any surplus, going te tho Government departments —I am, etc,, WATCHMAN. Christchurch, September 28. yy-