COAL HAULAGE.
| ADVERSE EFFECT ON t NEW TARIFF. OWNERS MEET RAILWAY BOARD. (7-SESS ASSOCIATION 7ELEG3A3f.) WELLINGTON, July 3. To-day a deputation representing the Waikato coal mining companies, interviewed Mr F. W. Jones, chairman of the Railway Board. It was contended that the new railway tariff on coal would operate adversely to the local companies as compared with imported coal. As the railways were run for the benefit of the State, the Department should not impose long distance fr?ights that would injure the Waikato imnes and the industries dependent upon their product. Last year coal imports vore a quarter of a million tons ;nore than the total Waikato output. The deputation stressed the fact that reduced output from coal mines would:
(1) Entail a serious loss to the coal companies.
(2) Inability on the part of the companies to dispose of a larga quantity of slack coal would necessitate an increase to the consumers of household and steam coal.
f3) The loss of profits would reduce the taxation payable to the State. (4) A reduction of output would compel the discharge of a large number of miners and other workers.
(•">) Would affect the earnings of miners through the irregularity and insufficiency of employment.
Mr Jones sail there were one or two points he would like to clear up. One was why should the cost of working lignite coal be greater than the cost of working bituminous coal?
The Hon. E. W. Alison: "I am unaware that the cost is greater." He added that there must be some misconception in the mind of the chairman of the Railway Board with respect to that point. Tha Waikato mines had as up to date plant as it was possible to get. They made the best possible arrangements with the miners, and the mines were worked as economically as possible so that the cost of production was made as low as possible. He added that the coal companies were not making excessive profits. The Taupiri mines, which had the largest output and had been the longest established, had not for years paid more than 7$ per cent., and that was making no allowance for depreciation by reason of exhaustion. Mr Jones said the Board had to look -t the matter from its own point of view, and that was that traffic had got to pay for itself. The railways could not afford to carry coal at a loss. The cost of haulino: coal for long distances, say to New Plymouth, and to Wellington, would only just pay the railways on condition that they hauled the waggons back. They lost a proportion of the cost by hauling .empties tack. Under the new rate the Department could only just make the traffic pay for itself.
A general discussion followed, in the course of which Mr Jones said, in answer to a question, that the total amount of additional revenue which the railways would require to get from the coal traffic referred to over and above the existing rates, was about £50,000. Mr Alison said the coal mine owners would now be a*ble to review the position, and perhaps make \ proposition for the consideration of the Board.
The owners and Board then held a further conference in committee.
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Press, Volume LXI, Issue 18425, 4 July 1925, Page 4
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540COAL HAULAGE. Press, Volume LXI, Issue 18425, 4 July 1925, Page 4
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