COAL FOR ELECTRICITY.

New Zealand Herald, Volume LXVII, Issue 20603, 30 June 1930, Page 7

COAL FOR ELECTRICITY.

POWER BOARD SUPPLIES. ' • QUESTION OF CHARGES. COMPANIES' EXPLANATION, .. , - - A reply to the charges levelled against tho Waikato coal companies of attempting to make capital out of the disaster tbafc has overtakon Arapuni, by increasing the price of coal supplied to tho Auckland Power Board, has'.been .made, by Mr. W. D. Holgate, chairman of tha Coal Car- • bonisation Company and previously chairman of the association controlling the sale of slack coal from the four Waikato min6s. t J * \ ■ Stating that there appeared to he a wrong impression regarding the position, Mr. Holgate said that prior to the securing of a supply, of electric powe? from,-. Arapuni, the slack association had a contract with the Auckland Power Board for some years. That contraot expired, when . Arapuni started. The price of slack coal, under that, pgreompnt had always been 7s 6d a ton net and/ tho mines had also contracted to supply "runner-mine" coal at 17s 6d a ton. ; In November, 1927, the price of slack .was.. raised to 10s' a ton to. all other consumers, but not the" Auckland Power Board. : The reason for the advance .was i that it had been discovered by consumers that the calorific value of slack was equal to that of steam coal.. . . . Ready to Meet Demand. • ? At the same time tho price of other - grades of coal was reduced to: the con.-, sumer, house coal by 2s q. ton and kitchen coal by 3s a ton, and a cut of Is a ton was, made to the Railway Department.;; It would be seen, therefore, that the rise obtained on slack ws.s more than given back to the public. - • _ The four Waikato companies were desirous 'of meeting ths demand from tha Power Board for coal to drive steain\ plants to generate electricity in the present .emergency. Screened slack would* be supplied at 10s a ton, which was the rate paid by dairy, fertiliser and other companies. The Power Board had also-' been offered 35,000 tons of slack 7s 6d a ton. This had been dumped pending the' operation of tho carbonising plant, which had been purchased following the coming into operation of Arapuni. Asit had been held partially under water,, it was in a good state of preservation. Question of Huntly Plant. ' The mines would also probably $e in a position to supply 500 tons of fresh slack a day, independent of the dump, until the carbonising plant started,- which would not be for six or perhapn twelve months. Even then the company, would' be prepared to contract to supply "face or "runner" coal at 17s. fid a ton and "through" coal (with household coal taken out) at 16s 6d a ton. If were entered into with the Power Board, lli\ Holgate said he felt sure the four companies would be -prepared to supply . the board with all the coal it required iu'those two grades. " ; At the present time the four companies in the Waikato did not on an average work moro than four days a week. The supply, if necessary, could be increased " by 25 per cent. It had been suggested that an additional steam, .electric plant should be erected at Huntly. If that was done the supply of coal to the Power. Board would naturally cost less. At the present time the board had to pay lis 3d ... a ton freight, in addition to the - cost of, the slack. The cost of- transport to a : power., station at Huntly would be -only 3s 6d a ton, which on the quantity used by the board would mean a great saving.