COAL WILL BE DEARER.

Taranaki Daily News, 4 July 1925, Page 12

COAL WILL BE DEARER.

HIGHER RAILWAY FREIGHTS. PROTEST BY MINE-OWNERS. RAILWAYS WANT REVENUE. Br Tslearsnh.—Press Assoclatloß. Wellington, Last Night. A deputation representing the Waikato coal mining companies interviewed the chairman of the Railway Board (Mr. Jones) to-day. It was contended the new railway tariff on coal would operate adversely to local companies as com ■ pared with imported coal, and as the railways were run for the benefit Of the State, the department should not impose long distance freights flint would injure the Waikato mines anil the industries dependent upon limit product. Last year the coal imports were a quarter of a million tons more than the total Waikato output. The deputation stressed the fact that the reduced output from the coal mines will: (1) Entail serious loss to the coal companies; (2; inability on the part of the companies to dispose of a large quantity of slack coal will necessitate an increase to consumers of the price oi household and steam coal; (3) loss of profits will reduce the. taxation payable to the State; (4) reduction of output will compel the discharge of a large number ot miners and other workers; (•>) would affect the earnings of miners through tlie irregularity and insufficiency of employment.

Mr. Jones said there were one or two points he would like to clear up. One was: Why should the cost ot working lignite coal be greater than the eost of working bitumenous coal? Hon. E. W. Alison: “1 am aware that the cost is greater." He added that there must be some misconception in the mind of the chairman of the Railway Board with respect to that point. The Waikato mines had as up-to-date plant as it was possible to get. They made the best possible arrangements with the miners and the mines were worked as economically as possible, so that the cost of production was made as low as possible. Mr. Alison added that the coal companies were not making excessive profits. The Taupiri mines, which had the largest output and had been, the longest established, had not for years paid more than 7-J per cent. That was making no allowance tor depreciation by reason of exhaustion. Mr. Jones said the board had to look at the .matter from its own point of view, and that was that the traffic had got to pay for itself. The railways could not afford to carry eoal at a loss. The eost of hauling coal for long distances, say to New Plymouth and to Wellington, would only just pay the railways on condition that they hauled the wagons back apart from that eost. In other words, they lost a proportion of the cost of hauling empties back. A large proportion of wagons must be hauled back empty. Under the new rate the department could only just make the traffic pay for itself. A general discussion followed, in the course of which the chairman of the Railway Board said, in answer to a question, that the total amount ot additional revenue which the railways would require to get from the coal traffic referred to, over and above the existing rates, was about £50,000. Mr. Alison said the coal mine-owners would now be in a position to consider the matter, and perhaps make a proposition. for the consideration of the board.

The coal mine-owners and the board then held a further conference in committee.