COAL PRICES

Otago Daily Times, Issue 27386, 11 May 1950, Page 6

COAL PRICES

Further Increase EFFECT OF FREIGHT CHARGES The price of coal, which has been increased by Is a bag in Dunedin, will in many cases rise still higher. This was learned by the Daily Times last night when it approached the president of the Dunedin Coal Merchants’ Association, Mr D. R. Wilson. The rise of Is a bag on certain coal was a direct result of the removal of the subsidy, he said, but the higher freight to operate from May 15 would bring about a further rise. In the case of Southland coal this would amount to 7s 3d a ton, or 6d a bag, and for coals from mines nearer at hand the rise would be slightly less. It could be said, Mr Wilson stated, that on an order of mixed bright and brown coal the total price increase would average Is 4d a bag. This information was given by Mr Wilson when complaints were referred to him that merchants had increased their prices before they had cleared their existing stocks of coal. Many householders in the city reported yesterda3 r that coal had been delivered to them this week at the increased price of Is a bag. and several complaints were made to the Daily Times over the speed with .which the increases had been made. It was stated that in his announcement last Friday night the Prime Minister had said that prices for coal sold from depots would be increased as soon as existing stocks were sold. It seemed hardly credible, householders stated, that stocks held by merchants would be exhausted by Monday night. Yet the new prices had been charged on coal already delivered. Mr Wilson stated that many city merchants were justified in making the higher charge. On Monday morning they had compared their orders with the coal in stock, and wherever possible had made immediate deliveries at the old price. The later orders that could not be dealt with had to be filled with coal reaching the yards on Tuesday at the new price. On the other hand, those merchants who took cash orders would have to fill them at the old price irrespective of the fact that many of the orders would have to be met with coal received at the depots this week. New cash orders had been taken this week at the increased price, and orders for delivery after March 16 would have to include the increase resulting from higher freight charges. ... “Merchants are not receiving any benefit from the increased price,’ Mr Wilson said. “We have to collect more, money and yet will receive no more for ourselves. Moreover, if wage increases are'made retrospective to May 8 we shall lose money on the orders now being filled.”