STATE COAL MINES.

New Zealand Herald, Volume XLI, Issue 12628, 8 August 1904, Page 5

STATE COAL MINES.

THE MIDDLEMAN'S PROFITS. DISSATISFACTION IN WEL* LINGTON. [BT TELEGRAPH.— SPECIAL CORRESPONDENT.] I Wellington, Sunday. The initial move of the State Coal Mines Department has given rise to much dissatisfaction among those who expected great tilings from the State as coal dealers. Good household coal is procured from the Government's mine, at Greymouth, and the first cargo of this article sent to Wellington has been disposed of to middlemen, largely, it appears, to the New Zealand Coal Company, a syndicate formed to deal only in State coal. Protests have been made by several members of Parliament and by the Wellington Trades Council. At a meeting of the Trades Council, Mr. Young, speaking for the Labour party, characterised the whole thing as a public scandal. He said the object of the Labour party in- agitating for the establishment of State coal mines was to afford relief to the general public from the exorbitant prices charged by private companies, and the workers understood that the Government would supply the general public direct as soon as the output of the mines was large enough. To the astonishment of everyone, however, it was found that this was not to be the case, and that a private company had been formed in this city to retail the coal to the public. He had been informed by persons who knew, that the company ~was charging practically the same price for State coal as for any other coal. The position seemed to be that after thousands of the people's money had been spent in opening these State mines the Government was selling the people's coal to a private company, and the company was selling it back to the people at a huge profit. A resolution was passed condemning the Government for supplying private dealers, and urging the establishment of retail State coal yards in the various centres. It was also decided that in the event of no satisfactory reply being received from the Government a public indignation meeting be called to consider the whole question.

Mr. Barber and Mr. Taylor, speaking in the House of Representatives on Friday night, both complained bitterly of the action of the Government in this matter. The reply of the State Coal Mines Department is that the New Zealand Coal Company stands in exactly the same position as the other dealers in so far that it has not received, and will not receive, any preference in the matter of obtaining State coal. The Department will treat all alike, selling to each firm and dealer (including the syndicate), as much coal as is ordered, at a certain price. The Department says that it experienced some difficulty at first in inducing the regular dealers in Wellington to order portions of the first shipment of coal. The New Zealand Coal Company, which has been formed to deal olilv in Slate ,coal, and which has not any connection whatever with the Department, undertook to purchase the whole of the first shipment, but the Department being anxious to have the coal in the hands of all the retailers, declined to accept the offer until it was ascertained whether the latter would place any orders with the Department. Tins dealers have now agreed to .take about 300 tons of the first cargo, and the balance will be taken by the New Zealand Coal Company. The Department also denies the statement that the New Zealand Coal Company intended to charge the ordinary price for coal from the State mines. It says that the company in question has deoided to retail the State coal several shillings cheaper than the price charged for other coal in Wellington, and it claims, therefore, that the object which the Government had in view in establishing the collieries, viz., the cheapening of coal to consumers, will be attained. There is at present a vacancy on the Wellington City Council, and one of the" candidates is advocating municipal coal depots to retail the coal from the State coal mine.