NATION-BUILDING PLAN

New Zealand Herald, Volume LXII, Issue 19032, 1 June 1925, Page 11

NATION-BUILDING PLAN

CANADA'S FUEL PROBLEMS. EFFORT FOR INDEPENDENCE. HAULING COAL 2000 MILES. GOVERNMENT'S ASSISTANCE. [from our own correspondent.] TORONTO. May 2. Canada is making renewed efforts to freo lieisclf from dependence on United States coal. The Dominion is in the anomalous position of possessing one-sixth of the world's total coal supply but being, nevertheless, one of the largest importers of coal in the world. Geography is the explanation. The largo coal-consum-ing population of central Canada is 1000 miles from tho Nova Scotia mines on the east and 2000 miles from the Alberta mines on the west; whereas the convenient anthracite and bituminous fields oi Pennsylvania and Ohio, are only 300 or 400 miles away. .As a result the almost universal fuel in Ontario and Quebec in home and factory is United States coal. Last year Canada imported more than 18,000,000 tons of United States coal. With anthracite costing £3> « ion and upwards, it \vill be seen what a heavy drain the outlay is On the Canadian purse and to what an extent the balance of trade is loaded against tho Dominios before there is any interchange of manjimctured commodities. It is poor satisfaction for tho Canadian consumer to be told that Canada possesses coal reserves equal to one-third of the total immense deposits of the United States, or that Nova Scotia as at present equipped, can produce 10,000,000 tons of coal annually; and that Alberta's known deposits are four times as great as those of Nova Scotia. Must geography continue to be the dominating factor '! The situation is a challenge to Canadian ingenuity and' statesmanship. Three Steps Taken. Three important steps toward seeking Canada's fuel emancipation have been announced:—(l) The Canadian Government announced an increase in the, tariff on slack coal from 14 to 50 cents a ton; (2) an experiment is to be undertaken at once under the joint auspices of the Canadian and the Ontario Governments, under which 50 train loads carrying 100,000 tons of Alberta coal will be brought east to replace United States anthracite in Ontario households; (3) the Canadian Government proposes to grant subsidies to coking plants to enable them to establish an industry in which Canadian soft coal will be transformed into coke to compete with United States imports. The increased duty on slack coal, while not large, is expected to prove a boon to the Nova Scotia coalmines in that it will enable them to regain from United States competitors part of their St. Lawrence market, lost during the war and after. If this result is achieved it will bring much needed business to the discontented ' maritime provinces Alberta Coal in Ontario. The experiment with Alberta coal shipments to Ontario will, it is hoped, demonstrate two things—the desirability of the coal as a household fuel, and the practicability of a low freight rate on the railways. It follows minor experiments made two years ago, when a few Ontario householders tried the Alberta product in their furnaces with fairly satisfactory results. The freight rate for a 2000-mile haul halted shipments on a commercial seal**. The present shipment of 100,000 tons is to be carried by the Canadian National Railways at a rate of 7 dollars a ton for freight, and it is understood if the cost to the railways is greater than that amount, the Dominion Government will pay tho difference. Allowing 3 dollars 50 cents a ton as the cost of the coal at the mine mouth and 2 dollars 50 cents for marketing costs, tho coal will be delivered to consumers at 13 dollars a ton. It is hoped ' that this price will enablo the coal to compete with United States anthracite, a more condensed fuel which sells at 15 or 16 dollars a ton. Carrying out the experiment on a large scale will show whether any of the costs can bo further reduced. It is said that if a market could be found for 15,000,000 tons the cost at the mine mouth could be reduced to 2 dollars 50 cents a ton. Tho prospect of success is such that a few days ago the Canadian Minister for the' - Interior expressed the official hope that Alberta coal would ultimately supplant United 'Stateß' anthracite in Ontario as it has already done to a large extent in Manitoba. Production of Coke From Slack. Simultaneously experiments in coking soft coal are to be carried out with the co-operation of the Dominion Government. Plants arc already in operation and additional plants are in contemplation at Toronto, Montreal, Quebec, St. John and Halifax. It is understood that tho Government is prepared to contribute toward the original cost of the plants and that it will also rebate the duty on coal slack imported from the United States for coking purposes during the experimental stages. Eventually it is hoped that Nova Scotia and perhaps Alberta coal will be used in these plants and that the coke product will.be produced at a price two or three dollars a ton below the present cost of United States anthracite. Byproducts in gas, oils, tar and ammonium sulphate will have a bearing on the success of the enterprise. Owing to its size and the many vital interests involved, the scheme easily takes its place as a major experiment in nation building. It is designed to aid industry in the outlying provinces, .to bring relief to the consuming public, to create new business for the non-paying National railways, to make Canada independent of a foreign country for its basic fuel supply, and develop a fresh unity and cohesion for the whole Dominion.