THE PRICE OF COAL

Otago Witness, Issue 3298, 30 May 1917, Page 17

THE PRICE OF COAL

"NO EXPLOITATION." (From Oub Own Correspondent.) WELLINGTON, May 22. In amplification of the statement issued by tho Mine-owners' Association, tho secretary of tho association (Mr W. Pryor) gave a reporter some information as to how the increased charges to the householder were arrived at. The Miners' federation in its statement, said that, while the cost of production had increased to tho coal owners by 3d a ton, they had exacted a tributo of 8s a ton from the consumer. Mr Pryor pointed out that there was a big distinction between the cost of the coal at tho mine and the port of shipment and tho cost for final delivery to the householder. Taking coal from Wostport and Greymouth, the main sources of supply for Wellington, tho case of two mines would illustrate the exact position. For the period ended March 31 tho price in one of the mines was raised by Is 7.17 d per ton on the average at the port of shipment, while tho cost of production had increased by 2s 6.74 d per ton —almost Is more than the extra charge. In another case, whero the price had been advanced by 2s per ton at the port of shipment, the cost of production had been increased by 2s 2d. Following tho latter case to tho point of delivery to the consumer, it was found that the cost of production had increased by 2s 2d (for labour and material) to March 31. The " go-slow " policy, resulting in a very serious decrease in the output, was responsible for a further advance of 2s per ton in the cost of production, making 4s 2d. To this had to be added increased shipping charges of 4s per ton, which had to be paid by tho mine owner to the shipping companies to cover advances in pay to officers, seamen, waterside workers, and others. This made the total extra cost of production and shipment for delivery in Wellington 8s 2d per ton to the mine-owner. In this particular case the_ company charged 8s per ton extra to the wholesale merchants, so that 2d was not passed on. The retailer who obtained his supplies from the wholesale dealer had recently had to provide for increased wages to drivers and increased cost of upkeep of plant, supplies of material, etc., so that manifestly he could not charge less than 8s extra. Out of 22 registered companies in the dominion only five paid dividends last year. If tho mine-owners could obtain a profit of Is per ton on all coal mined they would be perfectly satisfied with the result. There had been no exploitation; on tho contrary, in many cases the increased cost of production had not been wholly passed on to the public.