THE COAL OUTLOOK.

Poverty Bay Herald, Volume XLVII, Issue 15321, 17 September 1920, Page 3

THE COAL OUTLOOK.

i BRIGHTER PROSPECTS. (Elec. Tel. Copyright— United Press Assn.) LONDON, Sept. 15. * ! The ooal outlook is brighter, and the miners will probably drop the demand lor reduction' iu the price if tlie Government guarantee to continue control of c the industry over an extended period. r j'lhe miners' executive has arranged tb l meet Sir R. Home on Thursday, alao * •to summon a full conference of delegates \ lrom miners' lodges. . ■ . * The Daily Cnronicle says that at - Thursdays .'meeting .with v Sir .11. Home * the" ihihers may consent^ to waive their ' claim the.. .14s* 1 2d if a pledge is given that coal is not decontrolled * during the present Parliament and a - ! higher wage increase given than that J already asxed. But it must be remem- ( bered that Sir R. Home has already " announced that the wage demand must" \ go to arbitration, as there was not ; enough money m the industry to pay ! the increase to the miners. ! The chairman of tile Coal Owners' Association announces that the coal ' owners do not .want decontrol, wliich is ' contrary to the public interest. — A. and N.Z.CA. „ ' 1Apropos of the question of .the dis- \ ti'ibutkm of the coal output, a White j j/aper shows tliat during the quarter ended Juno 30, fifty-eight million tons ' were produced, and approximately nine* and a half million tons were exported. The cost of production totalled eightyeight millions, of which sixty-aiine millions were paid m wages. 'i.'ne tonnage iai.sed per person was 49.33 tone. Tho return shows gross iprohts on coal-min-ing lor the June' quarter at- eight millions, but this is subject to .charges lor iuterset and depreciation, ' owners' profits and capital adjustments, making nett profits lor the kuarter of £750,<M), or three millions per year. It is pointed out that Mr fchnillie's case for a reduction of 14s 2d per ton m tne selling price lor domestic use is based on tne as- . sumption tnat the, industry will give a years surplus of sixty-six millions sterling. Consequently it is claimed that i/no return" completely explodes the minors' claim. 1,110 figures snow, moreover, that the average earnings of coal workers of all grades is £220 per annum, against £b<i belore the war. Compared with the previous quarter the output of the mines decreased, t approxi-' mately, by foul* million tons,^ while the exports decreased by nearly two and a naif million tons. The Miners' Federation challenge the I Government's figures, and state tl;at tho ' costs, of production include an abnormal amount spent by tho mine -owners'•"on--1 development. It contends-' that this ex- . penditure will continue high as long as the owners believe decontrol is approach- ' ing, because their profits are guaranteed 1 regardless of preparatory capital expen- ; diture, which is always counted as items ' of legitimate tost under the Coal Mines [ Act. The Federation attributes the reduction of output during the three ! months ended June 30 to the usual holi- '. days, and contends that it's.calucuUitioiis ' of the annual output are not affected, t It attributes the reduction of exports on which most, profit is made to a diversion of export coal to. inland use m order to build up an accumulation at home ixy. view of the possibility of a strike. The Federation asserts that with a re- ; turm to normal conditions m expendi- . ture and development v and exp'ehses there ; will bo a sufficient surplus wholly to » meet the miners' present demands. — i Reuter. '