1.—7

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Question s.—Quantity of fuel made in England and on the Continent annually:— England — Crown Preserved ... ... ... ... ... 49,600 Star Fuel ... ... ... ... ... ... 50,100 Linnel's ... ... ... ... ... ... 25,000 Cory, Teo, and Co. ... ... ... ... ... 212,286 Wa'rland's ... ... ... ... ... ... 20,000 Elkington and Mason ... ... ... ... ... 5,000 Diamond ... ... ... ... ... ... 5,000 Llanelly ... ... ... ... ... ... 5,000 Sundry places ... ... ... ... ... 20,000 391,986 Prance ... ... ... ... ... ... ... 120,000 Belgium ... ... ... ... ... ... 40,000 Germany ... ... ... ... ... ... ... 80,000 631,986 This is very nearly the total make—l,ooo tons either way. Question 6.—The future prospects of patent fuel. —-There is a great future for patent fuel properly made. The reasons that patent fuel has hitherto been so sparingly used are twofold: First, the want of good machinery to turn out a first-class article. Up to about six or twelve months ago, no really good machinery was available; all was experimental. Now, wo have succeeded in getting a really good and practical machine. The second reason of the comparative non-success of patent fuel has been, fuel was badly made, and people were prejudiced in favour of coal, simply because fuel was unknown. For instance, I have had much difficulty in introducing patent fuel into the Admiralty, but I knew I was right and persevered, and the result is a great success for patent fuel: officers and men alike praise it. But for a long time to come, patent fuel cannot make its way properly, there is such an abundance of good and cheap coal. But in countries where the first or at most secondary formation of coal is found, there it must come to the front. As the process of manufacture improves the coal very much, in England the patent fuel is worth quite 3s. per ton more than the fresh-worked largo coal, and good fuel will stand the weather in either hot or cold climates without deterioration ; whereas the best coal exposed to the weather will perish in twelve months, and some of the inferior coal in half that time. You will have no trouble in getting abundance of pitch; by a simple process you can get your pitch from the gas tar, and you might advantageously buy up all the tar made by your gasworks, and the other products you get from the tar will not only give a good profit, but will leave you the pitch for nothing. Your products would be creosote, naphtha, dyes, and pitch. 100 gallons of tar would give 40 gallons of pitch. In the evaporative power, " Altered " comes out the best in the paper you sent me, but it is deficient in gaseous power. " Saddle Hill " shows low evaporative power, but high gaseous power, and will make an excellent patent fuel; but lam quite sure it will require the very best machinery and a pressure of at least 50 tons. I see you have some very good gas coals, and ought to make a large quantity of tar; but there is no lack of pitch ; it abounds almost everywhere. I went, on Saturday last, purposely to see a new patent fuel (so called), but I found the machinery in a most wretched condition, consequently the fuel was almost worthless. But their patent professes to have a new adhesive power or mixer without pitch ; but I saw at once there was pitch in it, and it may be the ingredients are cheaper than if it were all pitch, as the adhesive power was good. I will see to it, as I have to inspect and to decide as to its worth. In conclusion, I would say, in my opinion, there can be no doubt that your coal will make an excellent fuel, and be highly remunerative to those who embark, in it; but you must be very careful in purchasing heaps of coal that have been exposed for three or more months to the weather, as I find that all the coals both in New South Wales and New Zealand are largely impregnated with carbonaceous and clayey matter. I need now only say that I shall be happy to supply you with the best and strongest machinery ; i.e., I would inspect it and see all was right. I have, &c, Ht. J. McCtjllach, M.E.T.K.G-.5., Consulting Engineer to My Lords Commissioners of the Admiralty. The Hon. Sir Julius Vogel, Prime Minister, New Zealand.