A Coal Company's Troubles.

Star (Christchurch), Issue 5847, 9 February 1887, Page 3

A Coal Company's Troubles.

■■» [Bt TKi.KaBAPn.j [Special to thb " Stab."J LABOUR AND CAPITAL. THE ROYALTY QUESTION. AUCKLAND, Feb. 9. At a meeting of tho Bay of Islands Coal Company, yesterday, Mr J. C. Firth, Chairman, commented on the continued losses suffered by tbe Company, but aa the shares were all fully paid up, no further harm could happen. The Directors had now, however, deoided that it was only fair that the workmen Bhould share in the bad time with the shareholders, who had sunk —50,000, together -with loss of interest; excepting moneys which had been receivad as dividends. He saw by returns that .£400,000 had been paid in at the Postoffice and Auckland Savings Banks j and although no doubt much of this had been ! withdrawn, it still showed there had been less depression amongst the working classes than amongst those who were con„dered above them. In their own case, and aIBO in the case of other Companies, the shareholders had received nothing, and yet comparatively high wages had been earned by employees of these Companies. This meant that if capital could not get a fair profit, it would not be invested.. He did not make these remarkß out of any want of sympathy with the working man, for personally he believed in any . enterprise paying as high ratea aa it waa possible to do from the profits received. The way to adjust the balance of lobs was either to reduce the wages or close the mine. The Directors did not wish to resort to the latter method unless compelled to do bo. In considering the statement of accounts, he aaw that £3100 had been paid to tho Government as royalty, juat abeut four timea the value of the land held by the Company; and .£218,000 had been paid to the workmen, while the shareholders had received only _8109,000. In addition there was a liability of royalty due from the Company of .£6600, and in the present state of the Company it waa not likely to be reduced. He thought this royalty upon atated quantities was not a proper method, for, aB in their own case, the profits did not go to the shareholders in the Company. The Government were the general trustees of the people, and ho could not Bee why the Government and the public Bhculd benefit while the shareholders were losing. He would favour tho idea of paying royalty in accordance with the per centage of profits paid to the shareholders. That would be one Btep towards co-operation. There ought to be a community of interest, and until there was such there could be no real progress in any conntry.