COAL INDUSTRY

Poverty Bay Herald, Volume LX, Issue 18208, 2 October 1933, Page 6

COAL INDUSTRY

PRICE-CUTTING EFFECTS COMPROMISE HOPED FOE Dealing with the conditions affecting the Waikato coal industry, Mr. A. Howry Walker, chairman of directors of Pukemiro Collieries, in his address to shareholders at Auckland, said that the market had been seriously affected not only by the advent of hydro-elec-tric power, but also by the use of oil for heating, and by the increased use of internal combustion engines.

Since electric power was turned on from Arapuni there had been a steady decrease in tlie demand for both house coal and steam coal. This had contributed to a general slackness in the coal trade. No doubt electrical energy was convenient and desirable for the general prosperity, but it was very questionable whether the hydro-elec-trical development at Arapuni was of more general advantage than a fuel generation plant would have been, considering the large number of men who would have been employed hear Huntly and the amount of relief taxation which would have been saved. Notwithstanding the decrease in demand for coal, however, two more mines l hud been opened since Arapuni first came Into service. .Six mines operated by four companies were now producing coal in the. Waikato, whereas two or perhaps three mines could economically supply the whole of the demand. There was not sufficient trade for a full panel of men to be regularly employed in each of six mines.

Representatives of all companies had met from time to time to consider a method of economical marketing at stabilised prices, but although much time and consideration had been given to the problem, no satisfactory settlement of trading conditions bad yet been reached.

Much criticism had been levelled at directors of coal companies since the price-cutting campaign had brought the sales below the cost of production. It might seem very simple to say, “Why don’t you get together?” It should be remembered that in these matters it was not the majority but the minority who controlled the situation. Representatives of coal companies in some cases had divergent interests; consequently their claims, conflicts, and ambitions were not easily adjusted. In his opinion, however, the time -was not far distant when a compromise would be reached and rivalry would yield to reason, sound judgment, and goodwill.