THE COAL TRADE.

Otago Witness, Issue 3757, 16 March 1926, Page 35

THE COAL TRADE.

REPORT OF_COMMISSION NATIONALISM REJECTED.

DEDUCTION OF WAGES PROPOSED. LONDON, March ia The report of the Coal Commission ■which is unanimous gays that the change in the fortunes of the coal mining industry ** a result of powerful economic forces cannot be attributed to political unrest and restriction of output tomong the miners on the one hand or the inefficiency pf the management on the other hand. At the same time, it says, we cannot ogroe with the mine owners that little can be done to improve the organisation of the industry and that the only practicable course is to lengthen the hours and lower the wages. Iq our view large changes are necessary in other directions, large progress is possible, and immediate measures are indispensable to deal with the immediate position. The problem is two fold. It has a permanent aspect and a temporary aspect. The report details the defects of the industry.

It rejects the proposal of the Miners’ Federation to nationalise the mines as unworkable and not offering clear social gain. We perceive in this proposal, it **>■*> grave economic dangers and find no advantages that cannot be obtained in other ways. We therefore contemplate the continuance of the industry under private enterprise, but make a number of proposals for reorganisation. After detailing with these the report refers to the nation’s grave anxiety last summer when confronted with the possibility of an industrial conflict on an unprecedeted scale, and says: Tlie way to prosperity lies along three chief lines of advance namely— The. greater application of science to the winning and using of coal. Largei units for production and distribution.

Fuller partnership between employers and employed. In all three respects progress must come mainly from within the industry. The State can help materially. First, by substantial payments to aid research.

• Secondly, by removing the obstacles to amalgamation under the existing leases. Thirdly, as the owners of the minerals by determining the conditions of the new leases. Fourthly, by legislation fer the establishment of pit committees and profitsharing, and in other ways. The future depends primarily on the leadership and general level of opinion among tne mine-owners and the miners. We are firmly convinced that if the present difficulties are wisely handled the mining industry, with the aid of science, will certainly recover and even surpass its former prosperity. The report under the heading “Recom. mendations for Reorganisation” says that the past error in allowing the ownership of coal to fall into private hands should be retrieved. The minerals should be acquired by the State by purchare where they have a market value and by a declaration of State ownership in the case cf unproved or deep level coal which at present has no market value. Safeguards should be adopted agaic-st excessive compensation claims. A ooal commission should be appointed under the authority of the Secretary of Mines to acquire and administer mineral property The amalgamation of many of the present small units cf production is both desirable and practicable. Any general measure for compulsory amalgamation wouldlo mischevious, and each case should be treated individually. The State as the mineral owner, should be able to promote desirable amalgamations when granting or renewing leases.

The report says that the closer connection mining with allied industries, not merely the electrical trade, should be promt-led. The development of electrlon 1 supple under the Government’s new proposals should be closely co-ordinated with the veneration of electricity at the mines. The power and light requirements of the country should be under a constant and comprehensive survey and a body should be formed for the purpose. We propose tlie establishment of a National Fuel and Power Committee with advisory powers composed of representatives nominated by tne Government from the official and other bodies concerned. The existing provision for research should be largely extended by the industry with the support of the State. It is urgently necessary to find new methods of winning and utilising coal. Great national advantages wculd ensue if the processes of lowtemperature carbonisation were perfected, particularly through the production of smokeless fuel and the provision cf large supplies of mineral oil. The State should financially support further experiments on these lines.

The report under the heading ‘‘Distribution’’ says that the industry has failed to Tealise the benefits of co-opera-tion and the large financial advantages to be derived from the formation of cooperative selling agencies which are specially needed for the export trade. The Government should consider the establish ment of an official system fer the sampling and analysis of coal with a view to encouraging the selling on specification and guarantee in both the home and foreign markets. The local authorities should be empowered to engage in the retail sale of coal. We propose measures for larger mineral wagons on the railways and greater concentration of the ownership of the wagons. A standing joint committee of the Ministry of Transport and the Mines Department should l>e formed to promote these measures.

The report states that changes are necessary in the relations between the employers and the employed which are of fundamental importance. amendments are needed in the methods of ascertaining the proceeds of the industry and for fixing wages. The standard length of the working day, which now averages 7$ hours underground should not be altered, but an optional redistribution of hours within the present weekly total over a week of five days instead of six should be considered. " The multiple shift system should he extended and joint pit committees should generally be established. The methods of the payment of men not employed at the face should be revised in order to give them a direct interest in the output. The intro* duction of the family allowance system is desirable, and pooling schemes should be adopted to prevent married men with families from being prejudiced in obtaining employment. Profit-sharing schemes should be generally adopted and made obligatory by statute. Proper provision for houses for the workers should be a condition of the lease of all new collieries. The general establishment of pithead baths was necessary. This should He undertaken by the existing Miners’ Welfare Fund, which should be increased by a substantia] contribution from the royalties. Annual holidays with pay should be established when prosperity returns to the industry. A period of months is necessary to bring into effect any of these mease s of re organisation and years are necessary to bring all into full operation.

We express no opinion whether the granting of a subsidy last July was unavoidable, but we think that its continuance is indefensible. Tlie subsidy should cease at the end of its authorised term and should never be repeated. After rejecting the mine-owners’ proposals to increase the hours, reduce the wages, and largely diminish the railway rate by lowering the wages of the raiiwayrnen, the report points out that the Miners’ Federation abstained from suggesting any means of meeting the immediate situation. Therefore the duty devolved on the Commission to formulate proposals. The report says that a revision of the minimum percentage.addition to the standard rates cf wages fixed in 1924 during a time of temporary prosperity is indispensable to save the industry from impending disaster. The wages of the lowest paid men should be safeguarded by a continuance of the system of subsistence allowance. Should the miners prefer some extension *f hours with a 'vss reduction of wages, Parliament will doubtless authorise it. We trust, however, that this will not occur. A considerable variation in the rates of wages in several districts is bound to continue, but we are strongly of opinion that the national wage agreements should continue. We recommend that representatives of the employers and employed should meet. VIEWS OF LABOUR MEMBERS. LONDON. March 11. The earliest impressions of ihe Labour attitude cn the Coal Commission** report were gathered in the parliamentary lobby where the Opposition members emphatically declare that the miners will not bear erf the proposed reduction of wages. Several Labourites recoguise that there are many good constructive points in the report, notably the suggestion in regard to the nationalisation of minerals and the recommendations that the local authorities should engage in coal distribution and the amalgamation of the smaller mines: but a notable weakness pointed out is that the report does not provide a basis for a discussion of the problem with which the industry will he faced on May 1 when the subsidy terminates.

DISMAY ALL ROUND. LONDON, March 11. The miners’ executive considered the

c< *i report, but outlined to make a statement pending to-morrow’s meeting of delegates. It is expected that they will concentrate their opposition on the wage revision and the stoppage subsidy. 'ihe South Wales owners and miners are dismayed at the coal report. They declare that anly stagnation and impoverishment are ahead.

*Ar William Johnson expresses the opinion that there is no hope for the Welsh industry until longer hours are worked. Sir David Llewellyn said the removal of the subsidy meant an increase in price.

Mr Harris (miners* treasurer) said: ‘‘The report won’t settle the dispute. The reduction of the bonus, which now amounts to 33 per cent, upon the standard wage, is not acceptable.” Mr Justice Sankey, who was chairman of the 1919 Coal Commission, which recommended nationalisation, briefly commented on the present report as follows:—“I think it is an effort to postpone the inevitable.”

PRIME MINISTER’S PLEA. LONDON, March 12. The need for careful consideration cf the Coal Commission’s report was emphasised by the Prime Minister at a meeting with representatives of the Mining Association and the Miners’ Federation at Downing street. Mr Baldwin, in a speech, emphasised the seriousness of the*responsibility rest ing on them all in that connection. He requested Cabinet members to study the report with groat care diving the week, and asked his hearers earnestly to consider the report and not to be in too much of a hurry to jump to conclusions. Even a few days’ careful consideraticn and deliberation at present might be worth a great deal to them later on.

Mr Evan Williams, on behalf of the mine owners, entirely concurred with the Prime Minister’s view. He remarked that the mine owners had on their sMe a very large body of people, and the whole

means in the world of many of them might depend on the discussions. Mr Herbert Smith (president of the Miners’ Federation) said: “Our people’s lives depend on this industry, and more depends upon what is done for them than upon what is done for those whom it affects from % money viewpoint.*' He said they would give the report as much consideration as possible, but the question rested between the Prime Minister and the owners largely in regard to what they were going to say about the report and its results. He had no strong opinions yet, and would not have until he knew what derision they would make.

CONSIDERATION BY MINERS. LONDON, March 12.

A miners* conference of delegates decided to refer the Coal Commission’s report to the districts and subsequently to call a further conference.