STATE COAL MINES.

Star (Christchurch), Issue 10535, 9 August 1912, Page 4

STATE COAL MINES.

MINISTER NOT SATISFIED. SERIOUS LOSS ANTICIPATED. [Feom Our Correspondent.! WELLINGTON, August 8. The Minister of Mines, the Hon W. Eraser, was interviewed by a Wellington Trades and Labour Council deputation, complaining of the shortage of coal at tho State depots this winter. He explained in reply that the Point, Elizabeth mine, from which the coal was being won. was producing nothing like the quantity it j-ielded before. They had reached a very narrow seam, and considerable expenditure had gone on for some time in extending the railway beyond tho working to a point where there was a large deposit. The expenditure had been close on £IOO,OGO. The land -i:rouph which this line had .been made was very expensive and there was a difficult .merge. It was hoped that when that, railway war. completed there would be a large supply of coal. lie knew that was not very comforting to those wanting coal for immediate requirements, but it was one reason for the diminished production.. The Seddonville mine had ehown a heavy loss in working, but fortunately the Union Company took the whole of the output. They were able to use if for some of their vessels, but GO to 70 per cent of the coal was dross. That was why the rains had an expensive briquette plunt. T T :ey could only sell some 30 to 40 per cent of it, they could see what a loss would ensue. Very little Seddonville coal came into use for household pnrpepes. NOT SATISFIED WITH MANY THINGS.

Since he hr.d taken office he had looked into the matter, r.nct_ r.e confessed lie was not satisfied with many things in regard to tivj State coal mines. Ee hoped they would nou think for a moment that what ho was jK'-ing to srsy was an objection to tho pehev. " I tell you plainly at once that'the State would not be justified in owning a mine and selling coal for less then it cost," he said. "I do not think that as reasonable men you exoect tho to go so Well I am inclined to think when tho accounts ore nmdo up it will Je found there has been not a- profit but a serious loss e-n the &tate mine. Thrt wns a thins: which should be obviated in the future. Tnere was no de-iro on the part of himself _ or his collenlues to prevent the carrying out to its fullest entirety and in the most effectual manner possible tho winning of coal. There had been no policy of interference, and therefore the thin as they complained of could not be laid at the ministerial door. They would be perfectly justified in charging the Government if steps had not been taken to remedy matters. HEAVY DEPOT LOSSES. Mr Fraser continued that the Wellington depot showed a heavy loss and tho Christchurch depot a still heavier loss. He was not too sure whether that was not owing to the fact that high prices were paid at the pit-mouth so as to make the mine look as if it were ' paying. Because these depots showed a loss they should not be condemned. The depots ought to be able to pay their way. After allowing for cost of management and production if a loss occurred it must be bad management, but if as ho supposed tho mines had been operated at too high a cost they must lose. He was desirous of increasing tho coal supply, and was aware of the scarcity. The Ministry had only been a few wesks in oiiice, and it was important to get at the bottom of everything. He sincerely hoped this scarcity would not continue long and that they would get vessels to bring supplies. Supposing they had twenty depots, would they not be worse off till the supplies increased? Depots were useless without tho coal, and it was no use increasing the depots, as had be6n suggested, without coal.