STATE COAL MINES

Dominion, Volume 12, Issue 63, 9 December 1918, Page 4

STATE COAL MINES

THE YEAR'S WORK. The net profit earned represents a return of G.SO per cent, on the gross capital expenditure to date,' and is equal to 7.92 per cent, on the total turnover for tho year, which amounted io ■ j;308,759 16s, 3d., states the annual o-eport of the State Coal Mines for the year 1917-18. In comparison with the figures for last year there has been an increase of 1.52 per cent, in the profit earned and 0.18 per cent, in the turnover. Point Elizabeth Colliery made a profit of .£23,572 os. 3d., as against .£18,016 15s. Id. for. last year, an increase of ,£5555 ss. 2d. The cossation cf expenditure on devclopmentwork, in view of the approaching exhaustion of the mine and the fact that tho assets of this colliery havo been written down to such an extent that uo further provision for depreciation has been necessary, isiaa-ge-ly the explanation of tho improvement shown in respect to this colliery during tho past two years. Tho present book value of the valuable plant aud machinery at this mine, together with tho buildings and workmen's cottages, is now only JJI3BT, which is n purely nominal value. Tho Liverpool Colliery relumed a net profit of .£4825 10s. 9d.. as against .£251 10s. 3d. for last year. The improvement in Iho not profit earned by this colliery has therefore been substantial, and but for the writing-off of the book value of the bins and screening plant destroyed by n landslip in January last would have amounted to close on .£12,000. It was considered advisable to make provision for the total writing-off the book value of tliis asset in this year's accounts instead of writing off a proportion each venv until Hqnidnted, and the sum of XVXA was accordingly earmarked for this purpose. •. In nvsnoct io the depots, the result in the aggregate has been a loss of .£917. CUrwtchurch and Wangauui show a pro--11l on the year's operations, while Wellington ami Dunedm show a loss. In the last annual report attention was drawn to the necessity, owing to _ increased operating expenses and restricted turnover, for increasing tho retail prices of coal with a viow of enabling each depot to show a reasonable margin of profit over working expenses and to provide for contingencies. Nothing, however, was done i" this connection, as it was considered inadvisable to increase the price of coal to householders during tho currency of the war,- and, ns sen freights from the West Coast lo all'ports wero advanced 2a. (id. per ton without nny corresponding incremso boing nifldo in retail prices, a trading loss on the depots under these circumstances was inevitable and will, moreover, conlimw until such tinio as a revision of selling rate lakes nlnco. These remarks apply with special force to (ho Wellington depot, which is more unfavourably situated than tho othor depots owing to exceptionally heavy overhead expenses and increased cost of delivery.