SHORTAGE OF GAS.

New Zealand Herald, Volume LVII, Issue 17450, 21 April 1920, Page 6

SHORTAGE OF GAS.

PRESSURE STILL REDUCED.

TEMPORARY COAL SUPPLY.

ALLOCATION FROM RAKANOA.

The gas pressure was again reduced by th© Auckland Gas Company last evening owing to the continued shortage in the supply of coal. About 800 tons of coal have been allotted to the Gas Company from the steamer Rakanoa, and the work of unloading commenced yesterday morning. The Railway Department agreed to allow the coal to be loaded direct on to the company's carts at the ship's side, instead of being trucked to the railway yards for weighing, as originally stipulated. This allocation will suffice for three days, and, if the Kaitangata arrives to-morrow afternoon two day's supply will be obtained from her before the week-end holiday. This would leave the company with five days' supply for a seven-days' period, so that the pressure will be reduced each evening at six o'clock, until a full supply of coal is available next Tuesday.

COAL FOR THE WORKS.

DELAYS IN DELIVERY. DEPARTMENT'S EXPLANATION. [BY TELEGRAPH.OWN CORRESPONDENT.] WELLINGTON. Tuesday. The explanation of the Railway Department regarding the alleged late delivery of coal Irom the Rakanoa to the Auckland Gas Company is that if there has been any delay it is not attributable to the Department. Only »t 11 o'clock yesterday did the Gas Company advise that it would accept the Railway Department's conditions of sale, and the bargain was sealed by a telegram despatched from Wellington at 11.35 o'clock. It was also confinned by telephone. The complaint about the sale at £4 per ton of coal, which <:ost the Department 37s 9d per ton, is E.nswered thus —The Department has been selling coal in this way for some time, and it is impossible and very unfair to the Department to calculate profits on a single turnover. It has sold coal often at a loss and often at a profit so small as not to cover charges. This coal cost 37 c d per ton, but this was the net price of the coal plus freight without any commissions, insurance, or exchange. It would not be possible for the company to buy this coal at that price from any dealer or importer in the country. The Department is in urgent need of coal and would much prefer not to sell any. When the request was made that it should let the company have this coal the terms were quoted .and the company agreed to them. The Department states that the coal is worth more than £« to the Department now. The Department has paid as much as 66s per ton freight on cargoes received not long ago, and may have to do so again.

STATEMENT BY THE COMPANY.

DEPARTMENTAL METHODS.

The Railway Department's version of the circumstances connected with the delivery of coal from the Rakanoa to the Uas Company was referred last evening t' . e company's manager and engineer. Mr. J. Lowe. He stated that the company had agreed to take the coal on the Department's terms and conditions as far back as Thursday last, but that on Monday a request was received for a further assurance that the coal would be taken on the stated terms.

Mr. Lowe stated that last Thursday the company applied to the . Ministry of Munitions for the coal. No direct reply was received from the Ministry of Munitions, but the secretary of the Auckland Coal Trade Committee, Mr. A. A. Martin, was asked to inspect the Gas Company's coal stc-.ks. • Mr. Martin, after his visit to the works, reported that the company was in urgent need of coal. Next day Mr. Martin was apprised by the Mwvtions Department that 500 tons of the Rakanoa's cargo had been allocated to the company. The price and method of delivery was stated by Mr. Martin to the company, and the terms were accented. The local officials of the Railway Department were then asked when the coal could be handed over, but their reply was that they had received no instructions. The next-thing that occurred was a visit to the works bv a railway official, who also satisfied himself as to the company's urgent need of coal. Th ; was a few minutes before twelve o'clock on Saturday. Instructions for the delivery of the coal were awaited on Saturday afternoon and Sunday, but none came. On Monday the company was surprised by a request of an assurance that it would pay the price named for the coal— assurance "..hat already had been definitely given four days previously. In regard to the Railway Department's statement concerning the question of price Mr. Lowe said that circumstances had shown clearly that the Rakanoa's cargo, or a portion of it at least, should have b°en allocated to the Gas Company bv the Munitions Department in the first place. The company nave to rely upon the Munitions Department for its supply of coal, but it bought direct from the pit's mouth, and did net purchase from local dealers. It was unreasonable that the Railway Department should make a profit out of coal which -ras transferred by another Government department from it to the Gas Company under these circumstances. A fey months ago a quantity of eo*l consigned to the Gas Company was allocated by the Munitions Department to the Railway Department. In that case the company had transferred the coal at bare cost, but when a few weeks later coal consigned t^'hpl?->'lw:iy Depart had been transferred to the company, £A a ton had been asked and raid. The same price had been asked in the present instance.