COAL ON THE RAILWAYS.

New Zealand Herald, Volume LXII, Issue 19061, 4 July 1925, Page 12

COAL ON THE RAILWAYS.

THE PROPOSED NEW FREIGHTS. ' ■■' ■ u ■ " • V OBJECTION BY COMPANIES, INJURY TO THE INDUSTRY. DEPARTMENTAL VIEWPOINT* [BY TELEGRAPH. —PSESS ASSOCIATION.] ; WELLINGTON. Friday. A deputation representing the Waikato coal raining companies interviewed tho chairman of the Railway Board, Mr. F. J. Jones, to-day. It was contended that the proposed new railway tariff on coal would operate adversely to the local companies as compared with imported coal. As tho railways were run for the benefit of tho State tho department shoujd not impose long distance freights that would injure Waikato mines and industries dependent upon coal. Last year tho coal imports were a quarter of a million tons more than the total Waikato output. The deputation stressed the fact that a reduced output from tho coalmines will (1) entail serious loss to tho coal companies; (2) inability on the part of the companies to dispose of a large quantity of slack coal will necessitate an increase in price to" tho consumers of household and steam coal; (3) loss of profits will reduce tho taxation payable to tho State; (4) a deduction of output will compel, the discharge of a large number of miners and other workers; (5) a reduction of output will affect thq earnings of miners through irregularity and insufficiency of employment.

Mr. Jones said there were one or two points he would like to clear up. , One was why should the cost of \vorking lignite coal be greater than the cost of working bituminous coal ?

The Hon. E. W. Alison: I am unaware that the cost is greater. He added that there must be some misconception in the mind of the chairman of the Railway Board with respect to that point. The Wuikato mines had as up-to-date a plant as it was possiblo to get. They made the b«t possiblo arrangements with the miners and the mines were worked as economically as possible so that the cost of production was mado as low as possible. He added that the coal companies were not making oxcessive profits. The Taupiri mines, which had the largest output and had been the longest established, had not for years paid more than per cent, and that was making no allowance for depreciation by reason of e.xhaustioA. Mr. Jones said the board had to look at the matter from its own point of view and that was that the traffic had got to pay for itself. The railways could not afford to carry coal at a loss. The cost of hauling coal for long distances, say to New Plymouth and to Wellington, would only just pay,the railways on condition that they hauled the waggons back apart from that cost. In other words they lost a proportion by hauling empties back. A large proportion of the waggons must be hauled back empty. Under the new rate the department could only just make the traffic pay for itself. A general discussion followed in the course of wfiich the" I 'chairman of the Railway Board said that the total amount of additional revenue-which the railways would require to get from the coal traffic referred to, over and above existing rates, was about £50,000. The Hon. E. W. Alison said the coalmine owners would now be able to consider the position and, perhaps, make a proposition for the consideration of the board. The coalmine owners and the board then held a further conference in* committee.