STATE COAL-MINES (REPORT ON THE WORKING OF) FOR THE YEAR ENDING THE 31st MARCH, 1906.

Appendix to the Journals of the House of Representatives, 1906 Session II, C-03b

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Session 11. 1906. NEW ZEALAND.

STATE COAL-MINES (REPORT ON THE WORKING OF) FOR THE YEAR ENDING THE 31st MARCH, 1906.

Presented to both Houses of the General Assembly in accordance with the requirements of Section 108 of " The Coal-mines Act, 1905."

Mr. James Bishop, Manager of State Coal-mines, to the Under-Secretary for Mines, Wellington. SIR _ Greymouth, 10th July, 1906. I have the honour to submit my annual report on the State Coal-mines for the year ending 31st March last. Point Elizabeth Colliery. In previous reports I have dealt somewhat fully with the physical features of the reserves on which this, colliery has been opened, as also with the peculiarities hitherto met with in the course of the underground development. . , In this connection a disappointing feature has been the thinning of the coal-seam now being operated on as the workings advanced towards the rise of the field. This, taken in conjunction with the system of faults known to exist in the region, has demanded constant and careful attention being given to exploratory work in order that the colliery may be maintained in a position to cope with the trade, and increase the output of coal as demand arises. The principaT'woTk done in this direction during the year comprises boring by diamond drill, extending new headings underground, and the; examination of surface outcrops. In all, 2,200 ft. of boring has been done, one bore having been carried to a depth of 1,600 ft, proving a number of seams, two of which are workable and can be developed later on. The result of the boring is not conclusive as regards the lower or Moody Creek seams, and further boring will be required before deciding the position of works required to develop these coals. .-'.,'., The outcrops examined on the outlying part of the reserves show seams varying in thickness from 2 ft. to 20 ft., the latter being of a high-quality bituminous coal. These seams will be further examined, and their position ascertained by survey at the very earliest opportunity. Underground Development. The developments underground have been continued on the lines indicated in my last year's The dip headings in Nos. 1 and 2 sections are being continued. The former has reached a distance of 16 chains, and the latter 33 chains. In both sections the coal has maintained an average thickness of 10 ft, and is of excellent quality. Coal-winning. The quantity of coal raised during the year amounts in the gross to 131,816 tons 8 cwt, made up of 85,493 tons 9 cwt. from No. 1 section, 44,464 tons 7 cwt, from No. 2, and 1,858 tons 12 cwt. from No. 3.

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Nos. 1 and 2 have produced coal from both rise and dip workings, No. 3 from the rise only, and as the same indications of thinning have been met with as in Nos. 1 and 2, work in this direction will not be continued, but steps will be taken to test this part of the colliery to the dip. Surface Works. The whole of the surface works and machinery have been maintained in efficient working-order, and a new hauling plant has been erected at No. 1 tunnel, to enable coal to be raised from the new dip workings. The alterations and additions made at the storage-bins and tipping-platform have proved most satisfactory, for by means of the distributing-belts the storage can be filled to the maximum holdingcapacitv at the smallest possible cost for labour, and the same applies to the tipping-machines recently erected, which are capable of dealing with the largest possible output with a minimum of labour. Future Developments. The development-work now in hand consists of the erection of a powerful haulage-engine and air-compressing plant. The former is to deal with an output of 1,000 tons daily from the dip workings, and the latter to supply compressed air for pumping and auxiliary haulage engines. In addition to the above plant, it will be necessary at an early date to proceed with the installation of a new and powerful ventilating-fan, capable of producing at least twice as much air as is now done by the two fans in use. This installation is necessary for the ventilation of the rapidly extending dip workings now opening, and to give air for the development of the underlying seams. For the working of the lower seams cross-measure tunnels will be required to connect with the present seam, from which all the coal will be raised to the surface. It may also be found necessary to increase the storage-capacity of the bins as a further means of preventing stoppage of the mine and delays to shipping. Accidents. There have been a number of minor accidents during the year, and some which may be classed as serious, but no fatality. However trivial accidents may be, they generally cause some, loss of workingtime to the employees, and are the cause of increased cost to the industry. Harbour and Shipping Facilities. It is gratifying to be able to state that steps are being taken to improve the facilities for handling the coal at the port. At present the Bailway Department is pushing on the erection of a new portable hydraulic crane ; it is also intended to alter the present cranes to portable ones. The General Manager of Bailways has prepared a comprehensive scheme embracing extended sidings, strengthening of wharf, and removal of buildings now blocking the woik of the port. When this is given effect to, and with some additions to rolling-stock, the equipment of the port will be reasonably complete. Seddonville Colliery. In my last year's report on this colliery reference was made to the extension of the workings to the south of Chasm Creek, where for some time prospecting operations had been carried on, and for the connection of which with the haulage system it was necessary to bridge the above-named creek and extend the haulage-rope. These works were completed during the Christmas holidays, 1905. The creek is spanned by a substantial bridge, and the haulage has been extended into the main heading south of the creek. The coal in this new district at the time the rope was extended had proved very good in parts, but, like the area on the north of the creek, it has been subject to severe disturbance, and will in consequence produce a considerable percentage of crushed coal, although it will probably prove on the whole superior to any coal worked from north of the creek. Additions to Plant. In order to meet requirements of the Bailway Department for screened coal, it was decided to erect appliances for screening and sorting the coal into three classes —lump, nuts, and peas. The system has undoubtedly enabled a very fine class of screened coal and nuts to be produced, and it is hoped that the output of these classes will be found acceptable to the Bailways and consumers generally, thus keeping the mine fully employed. Coal raised. The colliery has produced 46,085- tons during the year, most of which has been taken by the Railways.

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Future Developments. It is hoped that the field south of Chasm Creek, in which direction developments are being extended, will prove more extensive in hard coal than the field on the north. It is, however, too much to expect the coal to continue uniformly hard ; it will therefore be necessary to keep exploration-work well ahead. In connection with the developments now being considered, which is practically opening a new mine (as will be seen by reference to the plan), a new ventilating-fan has to be installed, and a fan of a new type, known as the " Sirocco," has been selected, and will soon be on the ground and erected. For the utilisation of the small coal, the briquette plant referred to in last year's report is in course of erection at Westport, a site having been chosen at the port in preference to the mine. The starting of this plant should have a beneficial effect on the working of the colliery, and improve the commercial aspect of the concern. It has been the aim of the management to keep down cost of production, but in consequence of the frequent interruptions to work and smallness of the output, the costs have been higher than if given a regular and greater output. In concluding my report on the collieries, permit me to say that the officers hav3 discharged their duties most satisfactorily, and in the discharge of my duties I have received valuable assistance from the Consulting Engineer. I have, &c. The Under-Secretary, Mines Department, Wellington. James Bishop, Manager.

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Balance-sheet op the New Zealand State Coal-mines. Statement of Liabilities and Assets at Slst March, 1906. Liabilities. £ a. A. £ s. d. Assets. £ s. d. £ s. d. Debenture loan .. .. .. .. 140,000 0 0 Point Elizabeth Colliery and Development Property Account— Sundry creditors .. .. .. .. 13,533 19 7 Cost at 31st March, 1905 .. .. .. .. ... 18,4:26 5 4 Accrued interest .. .. .. .. 2,450 0 0 Less depreciation .. .. .. .. .. .. 1,842 12 6 Debenture Sinking Fund .. .. .. 2,800 0 0 18,783 19 7 16,583 12 10 Additional outlay during the year .. .. .. .. .. 1,094 9 2 General Profit and Loss Account— Balance of profit at 31st March, 1905 .. 10,360 4 9 17,678 2 0 Net profits for the year ended 31st March, Depreciation, 10 per cent. .. .. .. .. .. .. 1,767 16 2 1906 .. .. .. .. 14,647 10 4 ■ 25,007 15 1 15,910 5 10 Machinery, plant, ropes, and rolling-stock— Cost at 31st March, 1905 .. .. .. .. £18,605 3 1 Less depreciation .. .. .. .. 1,860 10 4 16,744 12 9 Additional outlay during the year .. .. .. 3,96 C 19 6 20,711 12 3 Depreciation, 10 per cent... .. .. .. 2,071 3 3 18,640. 9 0 Buildings at mme— Cost at 31st March, 1905 .. .. .. .. £2,010 5 3 Less depreciation.. .. .. .. .. 201 0 6 1,809 4 9 Additional outlay during the year .. .. .. 168 5 5 1,977 10 2 Depreciation, 10 per cent... .. .. .. 197 15 0 1,779 15 2 Cottages— Cost at 31st March, 1905 .. .. .. ... 300 0 0 Less depreciation .. .. .. .. 30 0 0 270 0 0 Depreciation, 10 per cent... .. .. .. 27 0 0 243 0 0 Stores (stock on hand) .. .. .. .. 1,064 7 7 Timber (stock on hand) .. .. .. .. 83 9 6 Coal (stock on hand at mine) .. £137 8 4 Coal (stock on hand at wharf and afloat) 167 11 6 304 19 10 1,452 IB 11 38,026 6 11 Seddonville Colliery and Development Property Account— Cost at 31st March, 1905 .. .. .. .. £12,651 5 8 Less depreciation .. .. .. .. 1,265 2 7 11,386 3 1 Additional outlay during the year .. .. .. 2,636 16 0 14,022 19 1 Depreciation, 10 per cent... .. .. .. 1,402 5 11 12,620 13 2

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Machinery, plant, ropes, aiid rolling-stock, cost at 31sc March, 1905 .. .. .. .. .. 15,283 2 11 4 Less depreciation .. .. .. 1,528 6 3 13,754 16 8 Additional outlay during the year .. .. .. 1,308 12 9 15,063 9 5 Depreciation, 10 per cent.. . .. .. .. 1,506 6 11 . 13,557 2 6 Buildings at mine, cost at 31st March, 1905 .. .. 590 0 0 Less depreciation .. .. .. .. 59 0 0 531 0 0 Depreciation, 10 per cent... .. .. .. 53 2 0 477 18 0 Cottages, cost at 31st March, 1905 .. .. .. 360 0 0 Less depreciation .. .. .. .. 36 0 0 324 0 0 Depreciation 10 per cent. .. .. .. 32 8 0 291 12 0 Briquette plant .. .. .. .. .. .. .. 3,990 19 7 Stores (stock on hand) .. .. .. .. 345 911 Coal (stock on hand at mine) .. £150 0 0 Coal (stock on hand at wharf and afloat) 238 14 8 388 14 8 734 4 7 31,672 9 10 Point Elizabeth Railway Property Account— Balance outstanding .. .. .. 1,684 6 5 Hulks Property Account, cost at 31st March. 1905 .. ~. .. .. 2,340 0 0 Less depreciation, 10 per cent. .. .. .. .. .. 234 0 0 : 2,106 0 0 Christchurch Depot Property Account ' .. .. .. .. .. .. 2,250 0 0 Greymouth office furniture .. .. .. .. .. £225 14 11 Less depreciation .. .. .. .. .. 22 11 6 203 3 5 Depreciation, 10 per cent. .. .. .. .. 20 6 4 182 17 1 Wellington office furniture .. .. .. .. .. 77 6 5 Less depreciation .. .. .. .. .. 714 7 69 11 10 Depreciation, 10 per cent. .. .. .. .. Ii 19 2 62 12 8 245 9 9 Sundry debtors .. .. .. .. .. .. .. .. .. 4,697 0 6 Cash in hand and in the Publio Aocount at 31st March, 1906 .. .. 106,878 19 5 Less vouchers outstanding .. .. .. .. .. 3,768 18 2 103,110 1 3 £183,791 14 8 £183,791 14 8

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Statement of General Profit and Loss Account for the Year ended 31st March, 1906. Dr. . Or. To Point Elizabeth Colliery— £ s. d. £ s. d. £ -s. a. £ s. d. Management and offioe salaries .. .. .. 1,56119 11 By Point Elizabeth Colliery Working Account: Gross profits 84,907 7 6 Bents .. .. .. .. .. .. 136 4 0 Seddonvil Ie Colliery Working Account: Gross profits .. 19,356 13 6 Interest and exchange .. .. .. .. 2,680 19 10 104,264 1 0 Travelling-expenses .. .. .. .. .. 489 5 0 Printing and stationery .. .. .. .. 74 9 2 Telegrams and postages .. .. .. .. 174 0 7 Repairs and maintenance .. .. .. .. 344 16 0 Railway haulage .. .. .. .. .. 11,673 911 Insurance .. .. .. .. .. .. 21 15 0 Marine insurance .. .. .. .. .. 295 1 4 Compensation for accidents and fund .. .. .. 683 13 0 General expenses .. .. .. .. .. 138 0 7 Marine freights .. .. .. .. .. 40,537 16 3 Hulks' Working Account .. .. .. .. 454 19 6 ' Railwaj- freights .. .. .. .. .. 22 19 8 Charges (Wellington) .. .. .. .. 240 8 5 Depreciation: mine, buildings, plant, and machinery .. 4,063 14 5 63,593 12 7 Seddonville Colliery— Management and office salaries .. .. .. 970 12 11 Rents .. .. .. .. .. .. 70 16 0 Interest and exchange .. .. .. .. 2,233 2 11 Travelling-expenses .. .. .. .. .. 326 3 3 Printing and stationery .. .. .. .. 49 12 10 Telegrams and postages .. .. .. .. 116 0 5 Repairs and maintenance .. .. .. .. 20 0 7 Railway haulage .. .. .. .. .. 6,222 13 10 Insurance .. .. .. .. .. .. 14 10 0 Marine Insurance .. .. .. .. .. 67 7 1 Compensation for accidents and fund .. .. .. 149 10 3 • General expenses .. .. .. .. .. 176 15 11 Marine freights .. .. .. .. .. 8,285 511 Hulks' Working Account .. .. .. .. 909 18 11 Charges (Wellington) .. .. .. .. 192 1 9 Bad debts; New Zealand Railways Account .. .. 396 17 2 Depreciation: mine, buildings, plant, and machinery .. 2,994 2 10 23,195 12 7 Grevinouth and Wellington office furniture account depreciation .. .. .. .. .. .. .. 27 5 6 Debenture sinking fund .. .. .. .. .. 2,800 0 0 Balance net profits for the year .. .. .. .. 14,647 10 4 £104,264_1J3 £104,264- 1 J)

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Statement of Point Elizabeth Colliery Working Account for the Year ended 31st March, 1906. ®r. £ s. d. £ s. d. O. £ s. d £ s d To Stock of coal on hand at 31st March, 1905 .. .. i, 105 05 By Sales of coal . 122 239 0 7 Coal-winning- Stook of ooal on hand _ Wa § es •• •• ■■ 33,991 44 At mine .. .. .. . 137 8 4 Materials used 1,926 1 1 At wharf and afloat 167 11 6 Stores used.. .. .. .. .. .. 1,219 18 4 304 19 10 _ , 37,137 3 9 Timber account, gross profits .. ... .. 605 11 3 Balance gross profits at mine .. .. .. .. .. 84,907 7 6 £123,149 11 8 £123,149 11 8 Statement of Point Elisabeth Colliery Profit and Loss Account for the Year ended 31st March, 1906. Dr - £ s. d. £ s. d. Cr. £ s d To Management and office salaries .. .. .. 1,56119 11 By Balance of Working Account: Gross profits at mine .. .. .. 84,907 7 6 Rents ............ 136 4 0 Interest and exchange .. .. .. .. .. 2,680 19 10 Travelling-expenses .. .. .. .. .. 489 5 0 Printing and stationery .. .. .. .. 74 9 2 Telegrams and postages .. .. .. .. 174 0 7 Repairs and maintenance .. .. .. .. 344 16 0 Railway haulage .. .. .. .. .." 11,673 911 Insurances .. .. .. .. .. .. 21 15 0 Marine insurance .. .. .. .. .. 295 1 4 Compensation for accidents and fund .. .. .. 683 13 0 General expenses .. .. . . .. .. 138 0 7 Marine freights .. .. ..■ .. .. 40,537 16 3 Hulks Working Account .. .. .. .. 454 19 6 Railway freights .. .. .. .. .. 22 19 8 Charges (Wellington) .. .. . . .. .. 240 8 5 Depreciation : mine, buildings, plant, and machinery .. 4,063 14 5 63,593 12 7 Balance: Net profits for the'year .. .. 21,313 14 11 £84,907 7 6 £84,907 7 6 Statement of Seddonville Colliery Working Account for the Year ended 31st March, 1906. Dr - £ »■ <3. £ s. d. I Or. £ s d £ s d To Stock of coal on hand at 31st March, 1905 .. .. .. 644 15 9i By Sales of coal .. 30 984 io' 7 Coal-winning— Stook of coal on hand _ Wages . 10,252 10 7 At mine 150 0 0 Materials used 573 15 6 At wharf and afloat 238 14 8 Stores used .. .. .. .. .. 545 9 11 388 v g 11,371 16 0 Balance: Gross profits at mine .. .. 19,356 13 6

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Statement of Seddonville Colliery Profit and Loss Account for the Year ended 31st March, 1906. Dr. £ s. d. £ s. d. O. £ s . d. To Management and office salaries .. .. .. ... 970 12 11 By Balance of Working Account: Gross profits at mine .. .. .. 19,356 13 6 Rents.. .. .. .. .. .. .. 70 16 0 Balance: Loss .. .. .. .. .. .. .. 3,838 19 1 Interest and exchange .. .. .. .. .. 2,233 211 Travelling-expenses .. .. .. .. .. 326 3 3 Printing and stationery .. .. .. .. .. 49 12 10 Telegrams and postages .. ... .. .. .. 116 0 5 Repairs and maintenance .. . . .. .. 20 0 7 Railway haulage .. .. .. .. .. 6,222.13 10 Insurances .. .. .. .. .. .. 14 10 0 Marine insurance .. .. .. .. .. 67 7 1 Compensation for accidents and fund .. .. .. 149 10 3 General expenses .. .... .. .. 176 15 11 Marine freights .. .. .. .. .. 8,285 511 Hulks Working Account .. .. ... 909 18 11 Charges (Wellington) .. .. .. . . ... 192 1 9 Bad debts (New Zealand Railways Accouuoj .. .. 396 17 2 Depreciation: mine, buildings, plant, and machinery .. 2,994 2 10 23,195 12 7 £23,195 12 7 £23,195 12 '7

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Statement of the Receipts and Expenditure of the State Coal-mines Account for the Year ended 31st March, 1906. Dr. Receipts. £ s. d. £ s. d. Cr. Expenditure. £ s. d. £ t. &. /-v To Cash in hand and in Publio Account at 31st By Point Elizabeth Colliery— • March, 1905 .. .. .. ... 90,534 15 0 Property and development .. .. 1,163 15 2 Sundries Refunds .. .. .. 014 0 Machinery, plant, and rolling-stock .. 2,865 11 0 fef Sales of coal, Point Elizabeth .. .. 120,778 16 3 Buildings .... .. 117 18 7 Sales of coal, Seddonville .. .. 31,731 15 6 Stores and materials .. .. 5,188 3 8 Recoveries .. .. .. .. 1,778 9 2 Wages .. .. 34,704 18 6 154,289 14 11 Timbef .. .. .. .. 1,010 5 7 Wharfage, &c. (Wellington) .. .. 207 14 8 Railway freights .. .. .. .. .. .. 30 9 1 ' 45,288 16 8 Seddonville Colliery— Property and development .. .. .. 2,657 17 2 Machinery, plant, and rolling-stook . 786 9 4 Stores and materials .. .. .. .. 1,617 3 9 Wages .. .. .. .. .. 10,346 4 8 Briquette plant .. .. .. .. .. 3,803 5 7 Wharfage, &c. (Wellington) .. .. .. .. 166 2 9 19,377 8 S Hulks Working Account .. .. .. .. .. .. 1,143 17 7 Christchurch depot property .. .. .. .. 2,250 0 0 Management and office salaries .. .. .. ... 2,537 6 4 Rent .. .. .. .. .. .. .. 145 12 6 Interest and exchange .. .. .. .. 4,914 2 9 Marine freights .. .. .. .. 45,105 3 3 Travelling-expenses .. .-. .. .. .. 705 14 6 Printing and stationery .. .. .. .. .. 105 18 1 Telegrams and postages .. .. .. .. .. .. .. 290 10 ; Repairs and maintenance .. .. .. .. 298 10 2 Railway haulage.. .. .. .. .. .. .. 18,006 7 0 Marine insurance .. .. .. .. .. 366 2 4 Insurance .. .. .. 36 5 0 Compensation for accidents and fund .. .. 833 5 4 General expenses .. .. .. .. .. 310 3 4 73,654 11 7 Cash in hand and in Public Account at 31st March, 19C6 .. .. .. 106,878 19 5 .:; Less vouchers passed outstanding .. .. .. .. .. 3,768 18 2 103,110 1 3 £244,824 9 11 £244,824 9 11 State Coal-mines Office, Wellington, 12th July, 1906 Jas. McGowan, Louis H. Eilebs, Accountant. Minister of Mines P. Heyes, F.S.A.A. Eng., Inspecting Accountant.

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3:1 Balance-sheet of the State Coal-mines 'fob the Yeab ending 31st March, 1906. The Hon, the Minister of Mines. , ~,, Audit Office, 23rd August, 1906. "The Coal-mines Act, 1905," in section 108 of the provisions for State coal-mines, requires that, with respect to each coal-mine woiked by the Minister, he shall cause a balance-sheet, to be prepared, together with a statement of accounts, and such balance-sheSt and statement of accounts to be submitted to the Audit Office for audit. There should accordingly be submitted two balance-sheets, one for the Point Elizabeth Mine and one for the Seddonville Mine. The balancesheet submitted, being one balance-sheet for the two mines, does not comply with the statutory requirement, and cannot be audited or certificated as doing so. J. K. Warburton, Controller and Auditor-General.

Hon. the Minister of Mines, Wellington. [n reply to the memorandum of the Controller and Auditor-General on the State coal-mines, balance-sheet, I have to say that the balance-sheet and statements have been audited and found correct. The balance-sheet fully complies with all the requirements of " The State Coal-mines Act, 1905," section 108, with respect to each coal-mine. In accordance with subsection (d) of section 108, the balance-sheet has been submitted to the Audit Office for audit, but the Controller and Auditor-General objects to certify on a question as to the form, which cannot be overcome. There is no alternative, therefore, but that the balance sheet as submitted be presented to Parliament. P. Heyes, 3rd September, 1906. Inspecting Accountant.

REMAEKS ON THE STATE COAL-MINES ACCOUNTS.

The capital outlay on the Port Elizabeth Colliery is ... ... ... £38,026 6s. lid. The capital outlay on the Seddonville Colliery is ... ... ... £31,672 9s. lOd. On the General Profit and Loss Account —that is, the result of operations of both mines conjointly—-the net profits are ... ... ... ... £14,647 10s. 4d. The Point Elizabeth Colliery Profit and Loss Account shows net profits ... £21,313 14s. lid. The Seddonville Profit and Loss Account shows a loss ... ... ... £3,838 19s. Id. The net profits realised on Point Elizabeth Colliery over all expenses equals 3s. 2 - sd. per ton on the coal sold. The net profit realised on the entire operations of both mines over all expenses equals Is. l-2d. per ton on the coal sold. The sales realised an average return — On the coal from Point Elizabeth Colliery, of ... ... ... 18s. 4*9 d. per ton. On the coal from Seddonville Colliery, of ... ... ... 14s. 95d. per ton. Louis H. Eilers, 12th July, 1906. Accountant. Approximate Cost of Paper.— Preparation, not given; printing (2,250 copies), £ 8 13s.

By Authority: John Mackay, Government Printer, Wellington.—l9o6 Prin 6d.'j

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Bins, Seddonville State Coal-mine.

Tramway, Seddonville State Coal-mine.

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Manager's House, Point Elizabeth State Coal-mine.

Bins, Point Elizabeth State Coal-mine.

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LONGITUDINAL SECTION OF MAIN DIP. (No 1 TUNNEL.)

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NEW ZEALAND STATE COAL-MINES. PLAN OF THE SEDDONVILLE COLLIEFY.

NEW ZEALAND STATE COAL-MINES. PLAN OF THE POINT ELIZABETH COLLIERY.