THE COAL CRISIS

Dominion, Volume 11, Issue 283, 19 August 1918, Page 6

THE COAL CRISIS

EARNINGS AND PROFITS

CAUSE OF HIGH PRICES

THE SITUATION ON THE COAST The difference between the price of coal at the pit mouth and the price at which it is delivered to consumers in the large cities is (saj-s a special message from Greyniouth to the Christchurch "Sun"), a subject very much discussed among miners. It is assumed by them that a large portion of this differonco represents profits to the coalmine owners, and on this they base their argument that the employers are able to meet their demand for a 20 per cent, increase of wages. When it is stated that the- miner (hewer) receives only 2s. Id. per ton for winning the coal, and that the consumer in Christehurch pays .£2 15s. per ton- for it, it certainly does appear as though there exists room for an investigation of the, question. Inquiries made at Oreymonth by a "Sun" representative elicited the information that screened coal from the Blackball minb is delivered on board ship at that port at a chaTge of 245. per ton. The shipping freight to Lyttelton is 11s. Gd. Railage to Chrietch'iirch is is. 5d., giving a total of 395. lid. A Oreymouth coal merchant stated that to tthis must be added 2s. for bagging. 2s. ! fid. for loss of sacks. Gd. for exehango! insurance and shipping charges, a total of .£2 4s. Gd., leaving 10s. fid. ner ton for division between the wholesale and retail dealers, out of which must be paid the wholesale and retail handling ami cost of distribution in Chri«tehurch. It is understood tbat the wholesale merchant cots 2s. Gd. ippr ton. this amount beintr fixed by the Board of Trade. Ac cording to these firrurps them is a hatnne» of onlv 7s. fid. loft for the retail denier, on whosn shoulders falls the burden of distribution to the consumer. Tt is a oucstion, however, whether the "Sun's" informant has not overstated fhc figures in the amount set down for bagging and loss on snrV=. Tf.lie has dnno , . so the effect would bo. to leave a wider margin for the retail dealer. Comparative Finures. Another ■ gentleman interested in the Blaokball Company put the position this way: 1912." 1918. a. d. s. d. B«tail price of ecreoned coal at Chriatchurch 38 0 58 0 Less discount for cash 2 0 3 0 36 0 55 0 Ho accounts for the increase of 19s. in the following manner:— ! ■ 1912. 1918. b. d. s. d. Screened, coal at. pit mouth ... 14 3 23 1 Eailage to Greymouth 2 6 3 0 'Harbour i rate 0 3 0 3 Froiphtto Lyttelton 6 0 10 6 Railage to Chruitchurch 3 9 4 5 Cost of delivery to consumers 9 3 13 9 36 0 55 0 There is obviously something wrong about these figures, however. -If screeued coal cost 235. Id. at the pit mouth, it could not be put on board ship at ■Greymouth for 245., after paying 3s. railagefront Blackball. As a matter of fact, screened coal is being sold to the public of Blackball for 235. per ton. Coal experts spoken to-at Greymouth agree that Us. or 15s. would be a reasonable amount l to allow as working cost at the pit mouth, the balance between that figuro and the 2s. Id. hewing rate paid to the miner being made up of wages paid to truckers, shiftmen, binsmen, timberinen, etc., and capital charges. Cost of Production. One mine manager gave the following details as to the cost of producing coal «t his mine:— 8. d. Coat of labour 9 o I Royalty, etci '. 0 gi Insurance : ..,'.'. o j Stores, timber, etc 1 j He estimated that capital charges would bring the total cost to Us., and expressed the opinion that that figure would be a fair allowance for cost at the pit mouth at any of the mines. It is most difficult, however, to sot definite information on this question,. and any estimate put forward as to the degree of profit secured by the various handlers of ii ton of coal must be more or less speculative. From tho information obtained the following is put forward as more or less accurate-:— b. d. e. d Screened coal f.o.b. Greymonth 24 0 — Cost at pit mouth — 14 0 Itailaje to Greymouth — 30 Owners' profit , — 70 24 0 24 0 It is doubtful, however, whether tho owners' profit docs roach anything like 7s. a ton, when all grades of conl and the losses in handling are taken into consideration. What the Miners Earn. The "Sun" representative was given an opportunity of examining the wage sheets of the Brunner and Blackball Mining Companies. The following illustrations 1 of hewers' earnings wore selected at random from the Brunnor Companys Ibooks:Wages. Days. £ a. d. 20 20 2 7 • ?2 22 10 1 - 22 22 211 2U 81 0 4 215 22 2 6 J5 15 7 11 24 11 4 0 f 24 U 7 25 2410 6 I Jj 14 5 1 31 20 15 5 17 18 0 7 17 : 16 0 1 Truckers receive 12s. 7d. per day. ' The following illustrations were taken ' at random from the Blackball Company's ' wage sheet and represent the daily earn- i ings of hewers-.—iil Iβ. lid., 18s. 7d., 19s. 5d., 19s. 6d., 17s. Id., 19s. 9d., .ei Oβ. 9d., 081 2s. Id., £1 2s. Id., jEI Os'. 2d., 19s. Id., 103. 6d. The average for :the past twelve months is ,£l, and for tho past fort-' night, 19s. 6d. Out of these earnings the men must | provide themselves with shovels, picks, I lamps, carbide, ph. clothes, etc., but not explosives. The explosives are sold ly the management to the men, and the cost is deducted at each fortnightly- prry. Mr. Watson, the general manager of i the Blackball mine, stated that in 1911 ! the not earnings of the hewers wero 10s. ! 2d. per shift, minus a small amount deducted for radical attention. For tho year 1918 to date, the earnings of hewers averaged 19s. 6d. per shift. In both instances these are net. earnings. Por other classes of labour employed at tho mine tho comparative average dairly earnings are:— 1914. 1918. 8. d. e. d. Truokera 10 5 12 2 Surfacemen 10 8 12 8 Shiftmen 11 13 0 Effect of Lost Time. Id 1914 tho shifts (8 hours) worked by the mine wore five por week. In 1918 tho number of shifts worked wero 4.79 por weok. This ie the available time that tho men could have worked hnd they desired. The time the men actually did. work was 1.5 shifts in 19U, and i in 1918. The differenco represents a loss of approximately half a day per week per man in 1914, anil .79 in 1918. In 1918 the aggregate numbor of shifts lost by the men was 91.82 per week. Mr. Watson explained that these losses of timo wero irrespective of timo lost through sickness and accident. The effect of the loss of time is that while the daily earnings are high, the weekly earnings are not proportionally so. For instance, the company's books show that the men averaged four shifts per week in 1918, at an average earning of Ills. Gd. por shil't, which an average weekly wage of £] 18s. If the men worked eleven shifts in the fortnight thein- earnings would be .£3 7s. 3d. per week. The daily output of coal per man is 5.17 tons per day, and Mr. Watson estimates that tho annual ]oss of production in tho Blackball miue occasioned by lost time is 38,2<!1 tons. ■ 'Mr. Watson . stated Iwther that his

books show that during the pusl Ihreo months tho average weekly earnings of hewers was M 11s. Bd. uper week, ami tho average weekly earnings of shiftmen £i Gs. lid. Tho latter high figure is taauso of overtime worked by the shiftmen. It will bo noted, too, that the thrie months' period shows a higher average than for the year. The men contend that the lime lost by them is really duo to sickness arising out of their occupation. They are supposed to notify tho management wlmi they are off work through sickness, but it is probable that (hey do not Always do so.