THE PRICE OF COAL.

New Zealand Herald, Volume LIV, Issue 16435, 11 January 1917, Page 6

THE PRICE OF COAL.

RISE IN CHRISTCHURCH. QUESTION OF FREIGHTS. UNION COMPANY'S POSITION. [BY TELEOBAPH.—OWN correspondent.] CHEISTCHURCH. Wednesday. At a combined meeting of coal importers and merchants, held for the purpose of considering the recent increases in the cost and freight of imported coal and the price to be charged the public, .it was decided to fix the retail price at 56s per ton, practically a 10s per ton increase on late prices. Speaking to a reporter to-day, a coal merchant justified this increase' on the ground that it represented no more than tiie actual increases which the dealers were called upon to pay. He reiterated the statement that the exporters had increased their price by 3s per ton, the Union Steam Ship Company had increased freights, and there were various other increases in railage, overhead expenses, etc , which the dealers could not afford to carry, and which they must pass on to the public. The local manager of the Union Steam Ship Company, Mr. S. K. Sleigh, interviewed regarding the criticisms that had been levelled at the company by several local merchants concerning its-action in increasing the freight on Newcastle coal by 2s per ton, said the Union Company took strong exception to the statement made by the merchants to the effect that the increase in the rate of freight was "neither justifiable nor necessary." The Union Company desired to point out that, when, owing to substantial increases in running expenses, the rata on general cargo was increased last year, no increase was I made in the Newcastle rates, which stood at the same figure for the whole year. Instead of criticising the Union Company for having now increased coal freights by 2s per too, merchants should be grateful that the increase had not been put on long ago. The increased running expenses to which he referred had now been raised yet higher by tho increase of 3s per ton in Australia for coal required for the steamers' bunkers, and in consequence it had been found necessary to raise the freight on coal to New Zealand. " This," "continued Mr. Sleigh, "with the increased cost of coal at Newcastle, makes' a total increase in the cost of Newcastle coal, c.i.f. at Lyttelton, of 5s per ton. We understand from inquiries made that the recent award in the carters' case will necessitate a slight increase in the cost to the general public, but so far as the wholesale" importers aro concerned, we believe that they are increasing the selling price of the coal to dealers only by the exact amount of the increased cost and freight on the coal, namely, 5s per ton. So that any to the public beyond this is for the retail dealers to justify. The present rates of freight from Newcastle to South Island ports do not average 15s per ton, and to Lyttelton the rate is considerably less, and under the present extraordinary conditions the rate can only be considered a most reasonable one." —