MUNICIPAL COAL.

Star (Christchurch), Issue 12717, 12 August 1919, Page 3

MUNICIPAL COAL.

PERMANENT COUNCIL BUSINESS. MAYOR GIVES CASTING VOTE. The financial obligations involved in the leasing of a railway siding and the provision of electric trucks for the delivery of municipal coal were reported on by the town clerk at last night’s meeting of the City Council, as follows : Per week. £ s. d. Lease of Homebnsh Brick and Tile Company’s siding , . . 315 0 Government license, at £SO per annum 0 19 3 Depot foreman , , , .500 Depot clerk , . . . .360 Total £l3 0 3 The capital cost of a three-and-a-half-ton truck was £1760, and of a twoton track £1376. The weekly costs of running the trucks would he as follows : 2 ton. 3J ton. 3J ton. 2 men. 2 men. 3 men. '■ & s d. ££ s. d. £ s. d. Running expense* 911 2 10 13 0 13 19 0 Depreciation at 10 per cent . 212 11. 3 7 0 3 7 8 Interest on capital, average 3 per cent . .0 15 11 103 103 Insurance . .050 061 061 Totals , . £l3 5 0 £ls 7 0 £lB 13 0 Total cost per week . . £26 5 3 £2B 7 3 £3l 13 3 _ . Tons. Tons. Tons. Estimated quantity of coal to be delivered per day ... 15 .16 20 Total delivery per week . „ of 5$ days 82J 88 110 Tons per annum of 274 days .... 4110 4384 6450 Cost of delivery only s. 'd. s. cl. s. d. Per ton . . .3 2i 3 5 29$ Per bag, at 15 begs per ton . . 2.6 2.7 2.2 Per bag, at 12 bags per ton . . 3.2 3.4 2.3

The men engaged in unloading and bagging would be casual hands employed when necessary at 2s per hour, and would, of course, be paid out of the price of coal charged to consumers. After consultation with Mr Stark, the Town Clerk added, he had come to the conclusion that one three-and-a-hnlf-ton and one two-ton truck should bo purchased if the council decided to enter into the coal business. The three-and-a-half-ton truck would be used for the longer distances and tho two-ton truck for the shorter distances from the depot. The two trucks with four men would deliver 170$ tons per week, and with five men 192$ tons. Two three-and-n-half-ton trucks and one tub-ton truck with six men would deliver 258$ tons, and with eight irrfm wonld deliver 302$ tons weekly. A two-ton truck wag capable of carrying with safety an. overload of half a ton, snd a three-and-a-half-ton truck an overload of one ton, on the flat; but two men could-not he expected to deliver more than sixteen tons a day, so the overload capacity of the threevand-aHialf-ton truck with three men was shbwn in a separate column. R AILWAY CHARGES. . The Railway Department wrote statin f? hhat it wag prepared to work the traffic at the present siding as a’purely temporary measure, only during the present coal famine, without imposing the usual private siding rental and shunting charges which were applicable in such cases, and on the clear understanding that the council and probably the siding holders would be involved in demurrage charges thrtraph the inadequate accommodation which the siding provides for dealing with the combined business. It was understood that the’-' was a pronosal before the council to continue the present retail business as a permanent thing, and in such case the Department' Would "-require the council to enter into the usual siding agreement, and to furnish the requisite accommodation for dealing with the business promptly. The council would also require to undertake to pay siding rental and any shunting charges which might be imposed. PERMANENT DEPOT PROPOSED. In reply to a question by Councillor Agar, tho Mayor said that the first question to he decided was whether the council should continue the purchase and sale of coal, or close down on the first 600 tons- If it was decided to go bn, the council could consider the report. If the council decided not to continue, it was unnecessary to continue the discussion.

Councillor H. T. Armstrong moved that the City Council should continue permanently in the coal trade. The business, he said, had passed far beyond tho experimental stage, and was firmly established. Although the council entered the business when coal was scarce and dear, its operations had checked the dealers who were inclined to exploit the people, and tho council had the support of a large majority. The coal was nbt of the best quality, but it was better than no coal. Trading would not commit the city to anv expenditure, as the coal trade would be self-supporting, although tho city depot should be used not tor pqofit, but as a check on exploitation. Cr D. G. Sullivan, in seconding the motion, congratulated the committee on its successful service to the poor people of the city, who had been unable to get any coal. The committee had raised itself in the estimation of the citizens by its concern for the social condition of the poor. It might be argued that further trading was unnecessary, since the Merchants’ Association had taken drastic steps to stop the exploitation by dealers that -wa-s admittedly going on, but it was unquestionable that if the, committee had not entered the business the Merchants’ Association would not have taken action and equally beyond question that if the committee went out .of business exploitation would be resumed. The council had made errors from_ which it could profit, and a proper business system would reduce costs and enable coal to be sold even more cheaply than at present. He believed in taking a referendum on the question provided the opinion was taken of all the householders.

Cr W. Nieholls suggested the continuation of the experiment to a further 1200 tens before the Council went wholly into the business. He had been glad to git on the committee, and would not undertake to vote against the motion. but he preferred to deal with 1200 tons first. .. Cr> W • Bennland said that the Council s operations had been a real boon to the citizens and he did not see how it could possibly go back, but he would not lightlv embark on a heavy expenditure until it was certain that the undertaking would pay. He was obliged, however, to vote for the principle. i STATE DEPOT CRITICISED. Councillor Jameson said that there had been a State coal depot established in, Christchurch for many years, and ; the action of the council was a direct condemnation of the State and its efforts. He thought the best thing to do was to. offer to take over the State coal depot, pointing out that seemingly the State must have failed in its effort., and the council was prepared to carry on. It did not seem necessary

t at two public authorities should thus em ark m the same line of business. Councillor Hunter ■ said that the ouneil s profit was not the question, biri rather what profit the “other fel--1 would be prevented from making, councillor Jameson seemed to be cbncerned about the Government. liie Mayor: You need not spare the Government on my account. Councillor Hunter said that he was to find anybody* concerned about the Government, in viejy of its bungling on every question, including coal, and he would be quite prepared to take over the State coal depot. Councillor E. E. Langley said that the only question was whether the motion would he in the interests of the citizens, and he took it that the demonstrations during the Peace, procession could be regarded as a vote of confidence in the council’s policy- The present cost of delivery could be reduced from 7s 6d to 2s 6d a ton. and, some hard coal might be obtained. PROTEST AGAINST PERMANENCY. Councillor C. P. Agar said that the council had entered tile business at a time of great shortage to bring about a more equal distriuucion or coal. He was not surprised that some persons were very considerate of the poor people when it was a popular cry. would the council havy entered the business if there had been no shortage f 'lhere was hardly any business in winch there was no exploitation, and where would the council s action end if it was continued to a logical conclusion? Councillor Langley; You are not far out. Councillor Agar: This is the thin end of the wedge. Councillor Langley; They have already got the thick end of the wedge in. Councillor Agar: "Why don’t the Labour people, if they believe in their arguments, float a company and make these huge profits? They want to use the people’s money for their own political ends. Councillor Langley: You are talking bosh. Councillor Agar went on to say that the. Labour group desired to upset the whole industrial system. Councillor Langley had informed him that the wharf labourers at Lyttelton got Is 8d an hour. Two bob,” interjected Councillor Langley. “i understand ” replied Conn cillor Agar. “ You ought to know before you make public statements,” said Councillor Langley. Councillor Agar replied that he would give Councjllor Langley credit for misunderstanding his question, hut he understood that ho had replied that the getting Is Bd. He moved: “ That this council continue in the coal business temporarily during the shortage.” SMALL HEALERS’ POSITION. Councillor Herbert said he was quite satisfied that the entry of the City Council was a boon to the people. It Was all very well tor Councillor Agar to come out with his “ gusto ” about others being concerned lor the poor people, even if Councillor Agar was not. Ihe council’s action had benefited the poor, aged and aitl.cted people. He had made it his business to find out whether they were putting the small dealers out ,oi business, and had consulted three merchants. One stated that in IJI4 his supply was 300 tons, and that in 1918 he had been allocated by the coal committee 120 tons. When the Ngakuta had come to Lyttelton with 2000 tons of coal, he had been allocated 30 cwt, and could not supply his customers, but the big dealers could supply coal to this man’s customers, and yet such dealers said they did not take on new customers. It was no more the thin end. of the wedge for the cionncii to enter into the coal business than it was for the State to do so. Councillor Williams said he thought the coal business upon which the council had entered was almost too young for the council to come to any conclusion. should give the committee at !o -t aiioiVr three months to cc’U'y on the work. Ho was opposed to anything like purchasing trucks without consulting the ratepayers. He seconded Councillor Agar’s amendment. Councillor Peek asked how could the business be established in three weeks. How could they deliver coal as Councillor Langley said at 2s 6d per ton? Councillor Langley: So the Town Clerk says. Councillor Peek; How many orders had they last Saturday—nine. They must look into the question of repeat orders. The Mayor thought they could come to a compromise. Councillor Langley: No good. “NO MANDATE FROM PEOPLE.” Councillor J. A. Flesher said that the council had a financial statement only in regard to the first shipment, when makeshift arrangements had existed. The council should have a statement on the two subsequent shipments, u Inch w ere worked under a proper staff. “It is not fixed up yet.” said the Mayor. Councillor Flesher said that this was a stronger argument for first ascertaining that the council’s depot was on proper lines, and that the public were not being exploited. The railways were working the siding only as a temporary measure during the coal famine without siding rent or shunting charges. The council had no mandate fitmi the people, and it should go to the ratepayers on the question of raising capital for the purchase of trucks. In any case, there should he discrimination as to who obtained the city coal. He had been surprised at orders coming in from persons who were well supplied. " COAL SHARES DISCUSSED. Councillor Flesher added that he had been told that the effect of the council’s entry into the business had been to put pounds into the pockets of city shareholders, for shares previously worth nothing had since been sold at par. In addition, the council had had to pay IDs a ton more for the ctoal than it should have paid. It had been a good thing for the people of Reefton that the council bought the coal. “And Christchurch, too.” said a councillor. “ If tho people of this city are being used to put profits into the pockets of company-mongers,” Councillor Flesher added, “ tho soPner we get out of it the better.” “Councillor Flesher is nutting up very lame arguments,” said the Mayor. “He is only pleading.” Councillor Cuthhert Harper said that he had voted for the purchase of the first lot of coal because he thought it might he additional coal, and he believed now that it had been. The council therefore should continue until the crisisyvas past. He thought that it was practically over now, and that the position would become much easier. The council’s customers would then goawav and the coal merchants would heat the council because they were buying more cheaply. He could not see how the poor people had been benefited, for it was as ensv to order from a coal dealer as from the council. The Mayor said that their coal was not going out of the yards as sneedily ns it should. Should they bnv the two electric waggons, and then went out of the business, they would not he scran. In regard to the supply from the Coast, thev could shut down on than at a week’s notice—the coal could bo transferred to Wellington- If it could he proved in any way that there was exploitation, Captain Lockington hart said that he would hand over a shipment of coal free. The cit.v did jot want to he in eomnetition with the. coal merchants, hut did want a steady supply for the citizens. They were as keenly businesslike in this coal problem as anybody else, and quite as' good. All the pin-pricking-and putting obstructions in their road was not to the good of the council- i “We are_ not tied to the Reefton mines,” said. Councillor Niebolla. “If

we had a chance to buy Blackball or Westport coal, we might do so.” <! so -’’ said the Mayor. ‘ _ I cannot sell you Blackball coal, <i I know that,” said the Mayor, and 1 am sure that you have no more objection to this small trading concern, Councillor M Kellar, than I Tiave mylegitimate lines,” said Councillor M Kellar. SOME CLOSE DIVISIONS. Councillor Agar’s motion to continue temporarily in the business was defeated by nine to seven, the division being Ayes. Noes. Beanland Harper Herbert Jameson Sullivan Agar Hunter M”Kellar Langley b lesher Armstrong V illiams Burgoyne Nicholls Thacker Councillor Harper then moved a further amendment of which he had given notice: — & j That this council continue distri- ' butmg coa for a further period of three months, and that at the end of that time it will again consider the question whether it is necessary in the interests of the city to continue the business for a further period. Councillor M’Kellar seconded the amendment, on which the Mayor de- • chned to allow any discussion, giving! K S , r ® ason f°r this ruling the fact, that the hour was very late. On a division being called, Councillor Beanland at first declined to vote, on the ground that he had not been given an opportunity to explain his vote. Councillors _ insisted on Councillor ' Beanland voting and he voted for the j amendment. I - ’ shouted a councillor. j ■ i i, ou ™ ust withdraw that word,” said the Mayor. 1 “ I withdraw it for him,” said Conn-! ci or Jameson, who sat next to Counciilor Burgoyne, The division resulted in a tie. as follows Ayes. Noes. * Beamand Herbert ■? eek - Sullivan Jameson Hunter Harper Langley ~ Armstrong m ear Burgoyne ttr- S | ler Nicholls Williams Thacker The Mayor gave his casting vote agamst the amendment, and on a similar division gave his casting vote for Councillor Armstrongs motion permanently into cae coal buMness. Councillor Langley then moved the adoption of the town Clerk’s reportlie Mayor said that the adoption of the report did not commit the council to anything. Councillor Hunter moved that the committee should be given the power topiiichase what plant was necessary. he council had decided to continue in the coal trade, and it could not do that without the necessary equipment. Councillor Langley withdrew his moHunter d SeConded tllat of Councillor Councillor Flesher: Do I understand this means the purchase of the two trucksr Councillor Langley : Yes, ves. Councillor Flesher; Then I would draw- attention to the standing orders. Councillor Flesher quoted the standing orders to the effect that any new proposal involving an expenditure ot o\ er A2OO must be deemed extraordinary business. The Mayor held that the council could not go into the purchase without giving notice of motion- So that there would not be any stampeding or hurrying over the business, "he must have a notice of motion. In the meantime, if necessary, they could rent trucks. It was pointed out that there was a previous resolution on the subject, that with a view to facilitating the delivering of coal the council should acquire a railway siding and procure at least three electric waggons for the purpose or delivery. In the light of this the Mayor admitted Councillor Hunter’s motion. Councillor Flesher moved a further amendment, that no action should be taken in the matter of the purchase ot waggons until the financial arrangements involved were submitted to the ratepayers of the city. Councillor J. O. Jameson thought in the light of recent negotiations in Wellington they should hold their horses a bit before going in for big expenditure. Councillor Burgoyne commented on the number of amendments. Councillor Langley: They’re dving hard. " ‘ Councillor Bnrgovne said be would like the council to have a whole night, to consider the price of nil goods. Councillor said tho obstinacy of certain councillors on certain had almost brought about disaster in the coal business. Councillor Armstrong registered his nrotest that it would onlv be a privileged few who would he able to vote as desired bv Councillor Flesher. Councillor Nicholls said that he must vote for an npneal to the ratepayers, but be could claim to have voted consistently on the matter. “Stick to us,” said several councillors. '. “Don’t he downhearted, hoys,” said Councillor Nicholls, “ von will go into the coal business all right.” The Mayor said that the apneal to the ratepayers was quite constitutional, but be saw no reason whv the wawons should not he leased to the Coal Committee. . fin a division Councillor Flesher’s motion was carried bv nine rotes to seven. The division list was : Ayes: Noes; Beanland Herbert ' Peek Sullivan Jameson Hunter Nicholls Langlev Harper Armstrong Agar Bnrgovne W’T'.ellar Thacker Fl®-her Williams. “ Does that mean that a poll will have to be taken?” asked a councillor. “ Before we can buy the trucks.” said th n Mover. ’Ho Town Clerk’e renovt was adopted. Tn rpr.lv fr r, farther question the Mayny said thaf the council would go on delivering 200 tons a week.