STATE COAL

Dominion, Volume 9, Issue 2879, 18 September 1916, Page 3

STATE COAL

UNFAIR COMPETITION ALLEGED

THE WEIGHT OF SACKS

'Die Hon. G. W. Russell, Minister of Internal Affairs, was waited upon on Saturday by a deputation from tho N.rth Canterbury (Vnl Sierrli.mts ami Dealers' Association, which brought under tho Minister's notice the alleged unfair competition of the State Coal Department, and also dealt with the question of the -weight- of sacks, upon which the Minister recently made a statement which was widely published. Tho deputation consisted of Messrs. P. M. C. Clcary (secretary of the association), W. Richardson, J. Wilson, nnd J. E.. Cooper. The Minister, before hearing tho deputation, pointed out that tho State Coal Department was linder tho control of tho Minister of Mines (Hon. W. D. S. Mac Donald), and suggested that tho deputation should confine itself to matters coming tinder his (Mr. Rusfiel's) control. Othor matters could bo brought beforo tlio Minister of Mines when he visited Cbristchurch. Mr. Cleary said that they desired to point out the unfair competition of the State Coal Department with private dealers. He argued that tho Christchurch depot was losing on its output, and it was the shipping trade that kept it going. Ho gave details of the cost of coal to private dealers, which totalled 455. lOd. per ton, and said that in attempting to meet the competition of tho State Department the dealers and merchants sold at 475., less 3 per cent. The State was selling at 395., but if there was included the 6s. or 7e. which ought to be included in tho cost, tho State would bo running its Department at a loss. Thie, he contended, was unfair competition. Ho cit-ed several cases in which private dealers had made only modorato profits. One dealeir. who had been in the trade 25 years, had saved £250, whilst another, who had been in tho trade for 31} years, had only saved a similar amount. • This, he thought, was scandalous in a country like New Zealand: However, they would reserve their further remarks 011 this phase of the question till the Minister of Mines visited Christ-church. He then dealt with tho question of weight of sacks, and quoted from a newspaper cutting to the effect that the average weight was Gib. He gave figures to show that the average weight was 31b. llio Minister said that would apply only to dry sacks'; we£ 6acks would be heavier. Mr. deary said that empty sacks svero kept stored in a- dry place; full sacks were only exposed to the weather, j, Mr. llicliardeon -said that he had I weighed several sacks, and had n-ot been, able to get. anything much over 21b. Tho Hon. G. W. Russell, in reply, 6a id 110 was always glad to get practical information of tho kind that had been given. He reminded tho deputation that from the beginning of his political career ho had advocated the ownership of coal mines by the State, but said that tho people the State had intended "hitting" were not the coaldealers, but the owners of coal mines. He contended that the existence of the State Coal Department had steadid prices. Tho Stato should have gone further aud owned the ships that carried tho coal,' so that tho full benefit of cheap coal could be obtained. He hoped that at soiho future time the State Coal Department had steadied understood that State coal was carried at tho same freight rates as those charged other shippers' of coal. He saw no reason why tho State should, in making a loss, destroy the interests of those engaged in the coal trade. If present methods wore destroying the trade of private dealers, then there was necessity for 6omo change. The details given by Mr. Cleary regarding the "profits" made by the private dealers mentioned had been painful to listen to. When tho time came lie was prepared to do what could be done to give relief. As to the weight of _ sacks the.informatiou published as coming from him ' (the Minister) had been prepared by a responsible officer of t-ho_ DepartmentThere was 110 intention iu that statement to accuso all coal dealers of thieving, but the Department found, in rospect to bread, that despite many prosecutions, light wciglit bread was still being sold. 1 The Weights and Measures Act would be brought up-to-dato next session and brought into lino with legislation of a similar character in England and Franco. The statement he had issued was intended as a warning to those who were exploiting tho poor.of tho Dominion. If lie could get evidence of coal being sold short weight he would endeavour to get tho polico to proceed against tho offender for obtaining money under false pretences. Tho Minister undertook to acquaint the Hon. \y, ]). S. Mac Donald, Minister- of Mines, with the views expressed by tlio deputation •