THE COAL TRADE

Dominion, Volume 12, Issue 233, 26 June 1919, Page 2

THE COAL TRADE

v The report .of the Board, of Trade on certain questions submitted to it resarding.coiil supply and distribution has bten releiiscd Tor publication. Following is the board's- own summary- of the findings :— : ...

The coal-mining industry of New Zealand cannot be said to have exploited tho public during the period of the war.Though the supplies of coal have not , been as regular 'and uninterrupted■ •as should have been tho casa with less industrial friction, nbither the owners of the minos, nor thoso actively engaged intho management and direction of the industry, nor. the workers in the mines, nor those engaged in- distribution have received remuneration that ehould lie re : sarded as unduly high in , existing'condi-° tions. 'It is an industry which experience'shows .to he : dho of very uncertain return, of varyingcost, nnd with labour conditions that do not appeal'strongly to; the ordinary worker. The markets are small and widely scattered, and'there-is considerable waste in production due to tho'great amount of sniall .coal necessarily produced with the larger, for,which in norniat times there is little or no. demand at a''prontablp. .prieu.' Tho ,exPDricnce of tlvn piist'.is not very eiiconr-. ngiujj for ths future.' The conditions directly.'a'nH'.'indireetly govei'ning tlio industry are such that thyrn is.not much scope for effecting.any 1 ''considerable--.fall in the pi'ieo of household'coal relative to the price of other comniodities iii'cqinmon.' dejiiand. But !'unleß ( s. .cortaiii..' iniDrove'ments;are made, paTticularly in tho organisation 'of tliis industry, the. Tela-, tiyQ .prico of coa] will continue, to rise, and probably rise." rapidly;. ';•; Tho means of establishing the. pcrm'aneht conditions necessiu'v to prevent , or minimise such a rise have attention. Tho "main recommendation's to this, end ar£ set: out below in licctjons: .2 and ,3.

■2. Improvements in Production, Those linos of-improvements-.promising to lead to the fullest results suggested by. tho..evidence'. Rftthere.il .and.by. tho exam-., illation of thu oondiUoms of ; tho mining : industry by\ (he .board itself lie iu .tilt, direction of a move eflicieiit orpnniention of.tho industry than:of any immedinti). ■ reforms' in- the technical details'.of the. mining processes. The latter Von Id fol : . low as required in, consequence, of tho broad changes coiiteiupiated-.in tlio. or-; Kanisntioii, their, need being, then; more cleiirly appi'dieiided-niut their-institution, rnpro easily. effected by a body charged, with-the direction...of tlio industry:, {pi, the whole of the Dominion,-able to -command, the; mpst expert adviser?,, and pos : BMai>d-.of. Hie necessary. financial power..With certain exceptions mentioned-- be--hnv tho technique, of coal-mining:, in New Zealand is considered by competent authorities In bo,, relative to the peculiar Icical condition?, as well-planned nnd-oar-ricdout an in any . other- cQal-mining region. ..Among,. the chief . disabilities.'under which.-the; Individual min.ee labour, 'are .the stoprwes of,'.work, and disturb-, aricq of sood feeling .through industrial. juni'CSt. fhe waste .o'f'i'res'burees-.due. t'o a' lacft ofmni'lidta (in , soma, cases .a permanent lack) , i'or p:u:t of'their output, anil the difficulty of providing such a, social environiiifnt.as will.permanently attract a Rood class of 'worker, These are.onlj i\ fow auiong many factors which, ....in-, (luencinp; the mines directly, have also 'a' peculiar interest- for the- community as a whole, since it-needsji steady supply of coal at .a reasonable price- .and'readily adaptable to changes in demand. ■ ~ Nationalisation Urged, In view of this undoubtedly strong-nii-tional interest in. the coal supply, theboard devoted considerable . thought .to tho question of tho desirability aud pracliqibjlilx pfc "natipimlising" tho mines xit New. Zealand. "Natioiialising" may be interpreted in several senses.- The Govern.meiit of the'Dominioil might— ■ ... '.'. , '. .(U. Buy the-mines outright, and, Slaving done so, might: (a) Either work thorn it-selfj-as-itdoce the present Stato mines, or (b) lease them to..concessionaries.: .lindcr strict conditions, or . ... '.'■.. '

(ii) It might institute some form of control .of ..the -,:privately-o.wned. mine* through'a 'public department charged' ■with the enactment and administration of regulations b'imliiig the industry, or .-(Hi) It might obtain representation.on the .tlirootoa'iites'..gf, the ..chief, mines , .by legislative right or. by -virtue of- financial grants for developmental purposes, : All; tliesp -forms 'of reorganisation,mi\ylw regarded- as varieties of "nationalisatiou'.". ..Tho.tiuestions \vo,set ourselves to answer, are: : •.' ■' \ ■ ,-■ (l).Ia nationalisation, desirable* P and., ■(ijj'lfso, wjii'ch particular,, form of nationalisation promises tho best Tosnlts for the. coal industry-ill Nov. Zealand ?. ... .. ...(3) If-not, what modifications,' if any,. nre required .so'that the. industry may. best; serve the community during: the remainder of its terra? •■- • ■-■■ The board,. after carefully consider-, ing all relevant l -, arguments,, is' of opinion that some form of nationalisation is urgently needed as an essential step towards'removing shortcomings of long standing, effecting needed improvements of a positive kind, and avoiding evils that threaten to turn the industry out'of the course of healthy arid' sano development*. • ■■• -'■ ■■ What It Might- Achieve. \ Tho chief aims to be achieved by reorganisation., of the industry..appear, to .bo these;— ■■-,-. : . ■ ' .- (1) The introduction of .economies in. tho cost, of producing the, output of coal, : ■ (2) The conservation of the coal, re. source's of tie Dominion,' with due; regard to the most equitable distribution of the available .supplies as between present and futuro needs; tlio .systematic and easy development and expansion of .the,'industry to satisfy the growing requirements of the community. (3) The conconUration of the industry at any given time in tho most' profitable fields. : '■ ■•■■' ' ' ;■■ (1) Tho removal of the causes of labour unrest. Subsidiary to this is-tlie institution of proper housing for mine workors. (5) Tho inauguration of an efficient system of distribution. ■ ',-.,. (G) Tho regulation of coal prices in tho intomsis of consumers.. -. A change-in'organisation in the direction of .consolidating the several mines of tjip. Dominion under, a single central control arid management would tend to effect many economies in the costs both of production and marketing, ns well.as to facilitate the .development, of a wellreasoned compact' policy for the whole country, in regard to the opening up of now fields, the closing down of unprofitable, mines, and llie application of tho capital and' labour resources id those mines at whieli.'''fho supply of coal required could ho"most economically won. Such a change would also provide those conditions which seem to. promise tlio most useful results'in the distribution of coal by extending to that sphere, iu which 'reforms of other lands appear to be- so difficult k> mnko ■ because of our scattered markets,- our small •■population, and widely diffused minus, tlio principle of unified 'and co-ordinated■ policy and management. Tho most 'satisfactory methods of distribution and- thb lowest prices are found lit present iii those cit.-es whero' distribution is controlled, by the same agency as production—for example, in tlio caso of the Westporl, and Piikcmi-ro coals. The elimiii:-. .jti of labour unrest and tlio control of , pric?s in the' , public interest'could-both lie facilitated by such a-clmngivsince it would provide--n'n opportunity for living tlint direct .representation-of labour and con'sumers on tho agents controlling produc-

A -PRECARIOUS, POSITION -..:. .DIMINISHING. SUPPLIES HIGHER PRICES UNLESS ■ -ACTION TAKEN ' NATIONALISATION 1 RECOMGHENDED' NO WAR'PROFITEERING

■tion that promises to l>e one of the most powerful factors in harmonising economic classes. i

; But the board is of opinion that this desired'change ehould not lake the'j'orm of Stiiie.. purchase mid direct management 'of the mines. Hi believes that direct State ownership and management, though it might lead to'some of the objects iu yiew. would not foster the highest degree oi : enterprise, initiative, and resourceful management, nor tho nect* sary single-minded, regard for efficient service frdi'ri nil ranks, nor the accumulation out of the profits of the industry, of tho'fand adequate to its future developnient without becoming a burden on the other industries of the Dominion. Tho most' pressing need is to combine the undoubted advantages of centralised policj; and management with those thutf may reasonably _be expected to result from (representation of labour and of ■.consumer (through the State) on the controlling body.- ■ • ■■ .

'•'• A Coal Board, The board therefore strongly urgesthe immediate'institution c-f a Dominion Coal Board '.for development and conservation). - - : ■ ' • ' The Dominion Coal Bo'aivl should consist ■ of representatives of— (1) The existing coal-mining companies; (2) The employees of these companies; and (3)' The Crown. '

It'is , suggested that the board comprise flvo mem'bers'at'ihost—the companies to appoint two mombers, the coal-workers two, and tho Crbwivono, who shall -bo president. If the 'board took over the function-of distribution tho employees engiijj'xl' in that branch would' exercise a voi:o in tho selection of the representatives of labour on tho board. The nominee of the Crown should be appointed for q definite term-. The representatives of the coal'companies should be elected by the shareholders voting by a method similar to that prescribed for Mio election of the directors of a company under the Companies Act. -The representatives of tho coal-workors should be elected nnnulilly according to a system to be determined after consultation with,the workers. In order to establish eomo continuity in policy the.menifcers of. the board should retire from office not as a, ,whole, but one representative of each of the two interests of capital and . labour .at a time; this,',would involve a .two years turin of office for each representative, but he sho.uld be.eligible for re-election. .'i-ho-J")omii.ion Cioal Board .should bo in a positiciu to achieve effectively tbe objects detailed above and eimii'lar, aims. 'J,' , ), theso ends the board should ,bo '. empowered to tako over tbe existm;; . coal coii'panies withtlieir assets and

liabuiticj al; valuation, and to isauo slnck to fij existinf! shareholders in oxchnnge fur tho sliaree held by tiiera a.t tho iivcrfige market, value of. suoh shares, for the period ofthetlirco years .immediately preceding exchange; such average market valiie. .to l>3 calculated, and determined by a specially appointed coiiunissioh. . " . ■Jixistinf} company law should apply to the Dominion, Coal Board, but it should bo .modified wherever required, to permit the board to exercise the functions necesisary to achieve the objects'in view.

•Stockhoiders should be' guaranteed h pure' in teres)- rate of -I'per cent. Oh their" paid-ap capital. 'Prom tho balance left. fift.tr' 1 payment of this rate,' working and maintenance 'expenses'.'.and making pro-' vision for renewals and depreciation and .reasonable , development,'there should l>a ■pa-i'il— , ■ ■ • ■ 11) 'A; , Ti.sk rate to stockholders, and- ■ ',2)'fionii'ste to stockholders arid , employees, in. the.-proportions respectively of the 'nmotint of 'dividend calculated , at tliß pmo interest and risk 'rate* combined mid the total amount of tho pay roll of the board. . . , Other Functions, of Board. . The board should also take < ver, ad'minister, and develop tho existing ccal mines of the State. . ' The industry should be subject to taxation ..and ratkg in common with all other industries. . The board would probably find it. advantageous to organise' its business on ah extension of the lines followed at present by tho Westport Coal Company, which administers its affairs through a general manager, who is assisted in rosped of production by. a district manager in charge of all the mines on the field, with' several mine managers subordinate, and, iu rospeot of inarke:ing and'distribution, by a sales manager ana branch managers in the different consuming centres. It should consider the ad-< 'viability of owning and running eteamers for the transport of coal, Among the subjects to which the board should give attention at the earliest moment are the following, which came-prom-iuently under our notice as affecting the production of coal.:—. (1)-Reference of the methods-of mining to be followed in new mines to a .committee -representative of tho best ex. ■;porience and theoretical knowledge, so ;.os to avoid certain, present dangers and costly hindrances to production that have followed, upon the.adoption of vnsuitable methods' without due consideration. (2) Tho provision of suitable housing accommodation at the mining fields. We strongly recommend \ that tho Coal Board be empowered, to iinposo a levy of 3d. per ton on all coal raised in tho Dominion; to , be supplemented 'by'" a" duty'. of. 3d. 'per' ton on all imported coal, for the 'purpose of' providing interest and sinking fund charges lor loans to ■build houses and provide suitable ■••means:'of recreation for liiine ■.•■orkom ; on' recognised town-planning lines. " We are satisfied that tho value and probable 'duration' of the industry warrant this -step'being taken on most of the fields, and that tho fund 60 provided would prove sufficient for tho purpose. Its cost we considor to be n, fair charge to bo borne by tho industry itself. The scheriie should te 'worked out forthwith in detail, and inaugurated at places like Avoca and Dennisto|i, to quote two ci.ses —one typical of new mines, the other ot long-eeuiblished collieries with a iong lifo ahead. Tlio miners should be encouraged to form in each coiitro a boasing committee to sue that tho houses and gardens are kept in proper order and to ndviso the board of the needs of the district. ■'.''■ (3) The institution of an easy moans of transporting minors from their homes to within reasonnblo distance from their working-faces. ■ This is necessarily bound up with Hit) question of tho location ot nny now mining settlements under (2). .Closely related to this is the duty of arranging with tho K:\ilway Depiul- - incut-'for-a belter train service between tho worliei's , homes and the mines, It was assorted, for example, that at Kotownro and Pukemiro tho coul output coiiild be incrcused by 100(1 lons per year if so much Of the men's time were not wasted by an inefficient train service. There appenrs to bo need of improvement even in the railway line serving the State mines at Dunollio and liewa-niii-in-respect of suiting the <onvemcnco.of the mine workcre, u» well as on the BlneUbiill line. (•{.) Tho establishment wherever needed —for example, at Iluntly—of a motor ambulance depot with a tmiall dispensary, and a niuternily hospital with a bed or two for emergency purposes, and nny similar' appropriate facilities for dealing with accidents and providing medical attention and comforts for the remoter mining camps. (S.) Tho dcsirnbility of introducing certain imnrovemonts in tho technical proCC8503 of micing the coal, more particu-

larly coal-cutting machines, double-decked cages as used in Australia, (for HuntM, tho system of flushing the mines witii sand in order to allow of the mining of the maximum amount of- coal on tho fields.

(0) Tho transfer of the management; of those railways which serve coal mines only, euch as tho Groymouth-l'oint Elizabeth and Westport-Mokihinui lines, to the Coal Board. A certain amount of inconvenience and friction is caused by the fact that the mines have no direct control over those railways. . .

(7.) The modification of certain parts of the Coal Mines Act. We do not feel justified in advising any alteration in the following particulars concerniug which ro-; presentation!) were made to us. _ They require consideration by experts in mining itself, ■ and should receive the attention of the proposed board, (i) Giving miners the power, at the. discretion of the mining inspector, of firing their own shots in certain conditions —0.g., in wet places.

(iij The abolition of the provision limiting the number of num employed in a ventilated district to lifty.

(iii) The reduction of the time a miner must, speud underground before he may bo put in charge of a face. Wo do not think a prima i'ncie caso has !>een made but for this demand.

(iv.) The placing of two names on the board at'the. mine mouth—that of the general manager as well as that of the mino manager—so that in a case of disaster both may be held responsible. (8.) The ument need'.of improving the coal ports. The further development of the harbours giving outlet to the West Coast mines is a matter 'of vital, importance to the coal' trade of the Dominion. Upon this depends not only, the regularity of the supply of bituminous large coal in the centres of the Dominion, but the' possibility of a profitable •' export trade in the smaller coals of the districts and the cheapness of that' part of the supply marketed here; for if ..a 6tcady foreign market can bo developed for tho. bunker coals the other part of the output can be sold at a-lower price.' \Ve direct particular attention to the.extract, from the evidence tendered to us by .Mr. C. N. Boult, engineer lo the Westport Harbour Board, in .which .ho rocoinmendn certain improvements as absolutely, riceesBury in his opinion to make Weslport Harbour adequate to the needs/of the coal trade. ■ ■ ; (Mr. Boult's evidence is to, the effect that tho port of Wcstport is tho only,pos ; eible outlet for the coal area surrounding it, and that unless scyne steps are taken immediately to make improvements in the port there is danger of the trade of the district being throttled. Hβ does/ot say. that any result will immediately lollow the adoption of tho policy he recommends. On the contrary, he estimates that it may take .a couplo of .years to »et the plant suitable, and that -jt will bo four years before the necessary' lm-, provemen't worlc can be completed on tho bar Some effect would be felt .in less than this time. The plant required is.a now dredger, such as would .have:.cost before the war .£72,000. The running cost would bo about WOO a year. After four years the bar could be opened to such an extent that enough water could be kept by working, any, four months in the year. The piesent plant is on its last legs, and. -unless now plant is .obtained at once the condition of. the har : . bour will get worse, and. the coal trade interrupted. Mr. Boult's opinion'is that the lwr is a bad one, perhaps harder to deal with than any other in.the world-) (9.) The thorough prospecting of news ■whose development promise? 'li-ofitable.re-; suits in the near future. ,We; have' in mind in particular the deposits of the Inangahua, Keefton, and Waikato fields as our examination-of tIW districts and samples of coal obtained convinced .us that thero is a strong "use for instituting | u thorough and systematic testing ot these fields. . : ■~--.., . ~' Miners to Have' Representation. - A feature of the reorganisation 'recommended by us is tLe introduction -of tho mino workers to a voice.in.,the determination,, of tho business policy k of tiie industry and in the conduct of the management. Wo believe that this, is the way which promises most for.the alleviation of • industrial , strife. ; niul.', misunderstandings between capital and , labour or employer and worker. -That the presentrelationship cannot-last and as-destined to'a rapid change must bo- the- opinion , of every onowlio studies tho fundamental, fivcts-oftlie situation without bias.-btrong forces arc at work that cannot be ignored or altogether counteracted, oven- , it itwere desirable tu do so; but they may be controlled and guided , bo-as to'eflect results "that shall be truly constructive and socially beneficial. Unless the period of transition be eased by comck bus co-operative effort on the part ot tho workers, employers, and tho ..community generally towards the realisation ot a higher and more humane form of business organisation, it miiy end in the -ataclysm desired by none-but a- tew revolutionary fanatics or Utopian dreamers. The best means of establishing better industrial relatious is that winch shall satisfy the natural demands of the workers to share in the conduct of the business in which they are engaged. It appears to us that tho coal-mining industry is ono in which such participation may be established. Tho formation•of a Dominion Coal Board would natural-; ly be followed by tho institution of works committees or joint pits committees, as well as by joint district committees or councils. It would then be no more difficult than it is at-present to nx responsibility for tho safety of. the mines upon a particular individual or group. Tho industry is one that possesses: little in tho nature of trade secrets;-it has developed a large body of- experience- that is the common property of those engaged in it; and it has much to gain from that full .and frank discussion by all parties of tho details of costs and returns which would be possible wero all the mines under one management and ownership. Certain matters , brought before our notice regarding labour, organisation should receive the attention of the board. Part of-the expenses-of the ''chock inspection"'of tho mines .should in our opinion be borne by it, and the vexed nucstion of contract or wage trucking could bo threshed out by.the, represents tives. The provision of the Workers Compensation Act wjiereby a mino worker must be absent from worlc for a period of fourteen days before he .can claim compensation requires amendment, sinca it has the undoubted effect of increasing unnecessarily the time off following; an injury. ■ Improvements in Distribution.

The organisation of distribution is "ouerally much more faulty and dofec tivo than that of production. The State mines should have a depot nearer the ship Jit Wellington. The system instituted by-the Coal Trade Committee for economising Iho time formerly wasted through crowding of the dealers drays at the wharf should be continued. If there were means of bagging coal at the wharf costs could be reduced. 'I he estaulisknymt of a main depot into which coal could bo trucked, it was stated by one witness, might save about Bs. a «ton. it coal were pent away' unscreened from the mine there would be less breakage. \t Christelmrch and Dunediifc the excessive number of men engaged in coaldealing, and the overlapping of deliveries, which are features of the distribution ot coal in nil the centres, were condemned. The effect of these, and of the trade convention that the small dealer must 1)0 given a fair chance in fixing the association price scnlo, undoubtedly tends to keep tho costs higher than they would otherwise be. The establishment ot a monopoly in distribution was advocated by witnesses hero and in other centres. At Duncdin tho >noral trend of tho evidence in- a-egard l , to . thclimothods of delivery was that it is altogether wrong, mid Hint it should-bo Ryetcnmt.isedI in tho direction of restricting tho operation of a given denier to a particular district. The opinion was expressed that there are too many dealers/ that tho cash system should bo extended at the expollso ot tho croilit system, that householders in orectin" houses should give greater nttontion to the provision of coal-collars, that orders for coal should be given a few days before fulfilment is required, and that if all eo.il wcro State-owned theTo would be a more continuous supply, a greater possibility of a cash trade,-and consumers would bo more willing to give reasonable notion of thoiv requirements. Certain complaints worn made asainst the. Railway Department:— fO The coal is delayed unduly on the line between the. mines and Duncdin, causing great inconvenience to the dcnlere and cNtrn cost in the form of doimirrflgp, (2) There is a loss of time at the rail-way-station in taking delivery of coal owing to the fact thnt expressmen and

other small- dealers can call early and thus hold up delivery to the larger dealers, keeping.their drays and men idle for a considerable part of the day. • (3) Every truck of lignite coal is charged up by the Kailway- Department as 6ix tons in weight, though it may lw below. (The reply of the Uailway Department to these complaints is in a statementbs- the General Manager of Railways. Ho slates that , the'weijjht of coalron- trucks is assessed on the consignors' weights, snhjeut lo review at irregular intervals' by the Department's tests over their,own weighbridges. As to delays in transport, conl is regarded as non-perishable, and is held back on occasion to Rive way to other more urgent traffic. On this account coal is a freight that can be more cheaply handled by the Tailwnys. Tho Department accepts no responsibility for the removal of coal from trucks at destination. This is the duty of the consignees.) . In regard to the methods of handling coal en route there was difference of opinion among the large importers ns to tho advantage of mechanical discharge from the ship, Gome thinking that there is not sufficient (rade to return the cost of the '-appliances. One witness estimated thut hopper-wagons would save Is, a ton : plus the savings in broken coal, and that grabs for" discharging would eave 9d. a ton. The use of grabs was generally advocated. Some witnesses urged the -establishment of bins at the coal ports in which to store small nnd bunker coal to 1)6 delivered mechanically into the steamers, in order to enable the mines to keep working'■when the bnrs are bad. But storing in bins is generally , not re- , carded with favour, as it means increased handling and breaking of the coal, which is very friable.' Tho loading of the coal into tho ships at Greymouth' and Westnort is up to date, as it is done by means of hopper wagons swung over tho holds. .''...

In order to secure tlio general application'* of tho , advantages that result from large-scalp distributing businesses, tho abolition of overlapping in deliveries, the concentration of depots, and the ownership by the mine of tlio iiipniis of transport to the main distributing centres, the board recommends that the Dominion Coal Board to empowered to undertake the business , of distributing coal, including its carriage I).V sm-

This (unction it might exercise wherever it sremed desirable in conjunction with . municipalities and other local authorities, and wherever power to do this is not possessed .by these bodies thencces-.. eary authority should be granted , them bv Parliament. The question of the installation of improved mechanical means of haiidlinc coal in transit from mines to denots ehould lie decided by the Coal Board, after consultation with engineers who linvcv made exhaustive inquiries into this subject./ • • ■•••■ V Prices. : If the recommendations made above be adopted they should'result intho lowering of the pries of coal relatively to that nf other commodities. There should he on the supply sidofl) lower costs of'production, marketing, aiid distribution generally because of the , economies from unified control and , the larger scale of .business;; , (ii) a more regular output; •(lib) a more even quality of coal; and (iy) the probability of marketing a larger . proportion ttf-'the small'coal than , is now : possible, tending' to lower the price of hou,so' coal relatively to the prices for the rest of the output. • ■But idelnand also exercises its own peen--liar 'jAiflucncn on price, and there ars certain ways in winch demand ehould bo '

'madifi'e'd.'-'iind which' should result in i\ lower price for-'coal. In regard to ■ household coal the chief points to bo no- ■ ti'-ed nre , .— : ; . . ■

(\Y Householders'- should notify their, orders for coal some considerable timo' before deliyery is required. This would facilitate tluvsystematising of'deliveries .over different area Jilocks, mulling it ■casip'r' to confine the several dealers to epecinl areas. This would very appreciably aft'ect (he cost of delivery, per ton. (ii) . Coal-bins should bo provided • by householders-"wherever possible in convenient places. .■ These would reduce- de-' livery costs-by economising the time and labour , in-'delivery, arid diminishing the I'iiiufer of eaclisrcquirtdand lengtheningthe life of those used. ;; '-" '■•' ' ; '■'

.'(iii) If-unscreened coal were nioregenerally used , , for household purposes tiitf coal bill- would be smaller. If all household conl were sent unscreened froii tho mines there would bo. less breakage and less waste of email coal, enabling it to be sold at a, lower price. There is much room for.-improvement in the prevalent methods .-of stoking-domestic ranges and' crates, which do not utilise to tho full the heating qualities of slack and brown coals.. .Costly..screened bituminous coal is used in ranges and grates, and often largely wasted through unskilful stoking, where brown coals .or a.judicious mixture of brown and bituminous with tho use of.slack and coke.would yield as good results with much less cost. Greater attentaon should be given to systematic instruction ■in domestic-stoking at technicar schools and cookery centres.

• (iv.) The increased ueo of gaa and oleotrio heating substituting an indirect tor the direct demand for coal, and freeing nioro- of the supply for industrial uses. , The demand -for for industrial purposes may be very considerably modified by the increased..use- of mechanical stokers, some varieties of which are now used in the Dominion with, great advantage; by other improvements in furnaces; by the use of dust-firing and by the extension of suction-gas manufacture, as well as by tho establishment of plants for tho. manufacture of electric power on the-coalfields.- There is urgent need for research in these directions; and tho Coal Board, or, failing its institution, the Government,, is recommended to encourage and financially assist experimental work which has ia view tho utilisation of that part of t'ho coal supply which is; at present largely wasted, particularly tho slack or fine ooal. inflation of Currency and Credit. So fur we have considered tho price of coal relatively to that of other commodities. Its price, however, may change in'common wilh_the prices of other commodities iii general, owing to changes in currency conditions, nnd independently of changes in tho conditions of the supply of and demand for coal itself. Tiicro is no doubt but that part of the riso in the price of coal : during the last fivo years has been due to the inflation of currency and crellit. "Every creation by the Gov. eminent or by the public of fresh credits means an addition tw the purchasing power nnd therefore an increase of prices. It is only when credits are redeemed by an equivalent in saving or in extra production that their effects upon prices are cancelled. , " The subsequent trend of coal prices will therefore depend in some degree upon the financial policy of the Government and banks and other financial houses. If money and credit continuo to bo inflated beyond tho available- supply of goods and services any tendency to a lower level of the price of coal will to that extent be counteracted by the etl'ects of such inflation. On the other hand, a wise policy of' lending for legitimate productive purposes and of encouraging saving for investment will tend to accelerate the effect of all other forces making for a fall in the prico of coal. The Hoard of Trade, .whilst recommending the institution of a. Dominion Coal Board and unity of administration into the coat industry, is alive to the necessity of preserving as far as jossiblo the principle oi : competition as a regulator of prico. It would therefore view with disfavour any attempt to discourage tho importation of foreign coals or to discriminate against their use. , ' Tho Coal Board should direct all its efforts to improving the efficiency of the industry at every point by keeping, the capital, labour, and management at the highest degree of efficiency. In particular it should encouraso and assist scientific and experimental work &s;#>c4 to that end, and should tata steps to r.pp'iy to New Zealand'■wherever suitable the advances in mining methods that aro niado abroad. It should ho able .to devise a system of healthy regulated'.competition among its mines. Tho iemptw. tion to raise- prices against consumers, which besets nil monopolies, complete or partial, especially where there is an un< di'islamling between Capital and Labour, should bo safeguarded" through tho representation of the State upon the board and by the periodical publication of tho main facts of the industry in open reperls to Parliament.

Cost of Living—Mining Statistics. The board recommends that il be .authorised, with (he assistance of the Government Statistician, to-carry out en investigation into tlio cost'of living mid the general Booial conditions of the mine workers of Iho Dominion.

It Is also of opinion that the -Coal Board should devise a system of record, ing costs, output, amount, and character of labour employed, time worked, cutput per shift, etc., as far as possible uniform for tho mines of the Dominion, so os to inako it possible to institute those statistical comparisons which nro necessary foi measuring tho changes in the industry. In viow of the close connection between, occupation, health, and mortality, it is of the greatest importance that living workers be periodically examined in order to obtain acoiuato records of tiie diseases from which they suffer.: THE MAIN FINDINGS. It remains to indicate the main f-nd-ings and-recommendations of this ionort in connection with the different heads ol the order of reference.

The Present Cost of tho Production arid Distribution.of Coal in New Zealand,

, Iho .average cost of production at the mines of coal from all the principal collieries of the Dominion for the year 191718, taking into account the different outputs of tho several mines, was approximately Jss. M. per ton. This does not' include the cost of railway haulage from the mine to port of shipment in the case of those mines (on tho AVest Coast and in North Auckland) which-, reckon this cost in when fixing their selling prices. Of this cost about 73. Id., or 4G per cent,, was paid directly to manual labour employed in and about tho mines.

The cost of producing bituminous coal iras about 17s. per ton, the labour cost being nearly 7s. 3d., or about 42 per cent, of the total; of semi-bituiniiious, Us. jjj including a labour cost of Bs. 2d., or noarly 57 per cent.; of x brown coal, 13s, id., the labour charge being Ss., or nearly 60 per, cent, of the total cost. The_ freight charges vary according to the distances. The costs per ton of retailing the standard household coals were as set forth in the following table:Distributing Costs of Standard House Coals/ 1918. Whole- HeRailage salers' tailers , or grosa gross freight, profit, profit. ~ • s. d. s. d. .- s. d. Auckland 711 6 9 7 9 Wellington 9 7 2 5 15 0 Christohurch (i) 15 0 4 6 12 '6 • „ (i; 13 6 3 0 11 0 _ >. (iii) 5 9 5 3 9 0 Dunedin 6 7 — ,90 Invercargill GO — 98 ' The gross profits • are analysed in the text into their constituent parts—bagging and loading, delivery iato yard, yard expenses, dohvery- to consumer, overhead and other expenses, net profits. Any increase in the Cost of Such Produc-/ tion and Distribution Since the Commencement of the Present War, and the Causes of Such Increases. • (i) Increase in the Cost of Production of Coal, 1913-14 to 1917-18. The average mining cost per ton increased at every ouo of the principal mines except at one, where abnormal and increasingly favourable working conditions ruled. The total cost of produotion per ton of coal mined at all the mines, giving returns, for every year of. the period 1913-18 -inclusive, increased about Jl per cent, or 4s. 10d. per ton. Taking into account the cost at all the mines, whether giving returns for nil the earlier years of the period or not, the increase in the cost of production was about 31 pen: cent., or 3s. 7d. a ton. This latter figure under-estimates tho acttial nso in the cost of production of all coal produced over the period. The cost of mining bituminous coal at all mines giving data i'or every year increased about 43 per cent., or by ss. sd. a ton; at a r .l the mines from which .exact particulars were obtained, by 40 per cent, or 4s. 9d.

; The corresponding increases in the mining costs of seini-bituminous coa.to were 13 per cent., or Is. Cd. a ton. and 31 per cent., or, 3s. sd. a ton. Tho min? showing a decrease in the cost during the period was ono producing seniioituminous coal.

The corresponding increases for browncoal production,were 70 per cent., or Bs. «d. a ton, and 25 per cent., or 2s. 7d. a ton. Certain new brown-coal mines caino into operation after the beginning of the period under review.,-. -...■■■ ■■■ ..-••

TheJncreases in the .cost of production nave been made- tip of increases in every separate item of cost, and have .heen caused by rises in the prices of materials and the labour necessary, increased taxation, and diminished output due to a reduction in the number of mine workers, the smaller output increasing the share of standing charges for each ton raised. In the ease of a few mines industrial disputes and a slight falling-off in the output per miner haye tended'to increase cost. , ■■...• . v TiieViost of production per ton due to the wages of manual labour in and about the mines increased at those mines givin* return for every year of.the period bv 31 per cont., or Is. Kid. a ton-that is by an amount equal to 38 per cent, of the increase in the total cost of production. If accoiint.be taken of the labour cost per -ton of all coal concerning which exact particulars were given, whether produced at mines giving returns over the whole period or not, the increase in the labour' cost is 20 per cent., or Iβ. 2d. a ton, an amount equal to 33 per cent, of the increase in the total cost of production. J.he increase in the labour cost of production of aW coal mined in New Zealand during 11)13-18 may be estimated at a little more than a third of tho increase in the total cost of production at the mines.

rhe cliiijnges in the cost of stores and materials per ton of coal raised ranged trom a decrease of about 2d. at one miho to an increase of Is. Bd. at another, lhe corresponding range for maintenance and renewals was lid. decrease to nV V increase; for rates and taxes, ad. decrease (State, mine) to Is. 9Sd increase; for administration, llsd. decrease to Is. IM. increase; for royalties n.ml rents, 4}<l. decrease to 3d. increase; and for depreciation and sinking-fund charges (actually made). Is. 2d. decrease to 6M increase." ,

fii) the_Cost of Distribution

of Coal, 1913-1! to 1918.

This cost has increased everywhere as regards both costs of transport and the costs of conducting wholesale and retnil businesses. Eailage has increased 21 per cent. The general increase in shipping rates cannot lie bo definitely measured by a percentage, because of the unequal distribution over 'the various routes of the particular increases. Now Zealand coastal rates advanced from 42 per cent, to 55 per cent.; Newcastle rates by about 52 per cent, on the average. (A. recort risD-rlllarch, 191Q-of-3s. Cd. per ton, or over 21 per cent.,, on the rates from Newcastle 'to the chief ports has not been included in this estimate.) The increased cost of transport has been caused by rises in tho prices of bunker coal, labour, stores, victualling, and the general costs of working ship 3. The increased cost per ton of working coal shins in the New Zealand coastal frade between 1911 and 1018 aifiounted to iiearly 50 per cent. Dealers' costs have increased because siding and yard rents, the wag« 3 of carters and yardmen, the price of eaciw, of horse feed, of repairs and renewals, of gear, and general expenses havo all risen, some of them very considerably; and also to a large extent because tlie shortage in tho supplies of coal necessitating delivery in small lots lias greatly increased tho cost of delivery per toh'to the consumer.

Whether the Profits made in the Production and Distribution of Coal are Fair and Reasonable. (i.) Profits in Production.

The annual average differences between the average selling-prico per ton and the average cost per ton to the several mining companies over tho whole period 10)3 to'MS range from a loss of Is. lid. to'a gain of. Is. 10d. In four cases out of thirteen principal collieries there was a loss on tho average; in two cases tho average profit wa3 less than 6(1.; in two cases between Gd. And Is.; in four cases between Is. and Is. 3d.; and in the other caso Is. 9.93 d.

' If the increase in the average sellingprice for the industry as a wholo be calculated from tho available ■ data in the same manner as tho increase in tho iiost of production it is found that the BellinK-price of those mines for which data is availablo over the whole period IDI3-18 increased, when duo allowanco has been mode for relative outputs, by 3G pel- cent.—i.e., from nhoiit 14s. 3d. to 19s. sti. per 'ton. This figure is to he compared with that showing the increase in total cost of production—viz., 37 per cent.

When we compare the selting-pricea of nil coals for which exacb details were avfiiluble in each year, ivhethor from

collieries working over tho wholo period or not, the increase in Bclling-price is 22 per cent. This figure, however, as in tho wise of COSI of production, does not give (i true measure of the change of tho price of all coals, since the selling-prices and cust of (lie mines for which exact particulars wero not available for 1&13. wore on the average lower than those of the minus providing data i'or that year. This iig'.ire was lower during 1914-15-1G than in 1913. In 1916-17 it rose 11' per cent, above thv 1913 level, and in 1917-18 22 per cent. The selling-price of bituminous •coal inerensed 85 per cout;. (3s. 2d) during tho period, , though tho cw>t rose JO per cent.; that of semi-bituminous coal roso 31 p a r cent. (ss. 7d.) or slightly moro thnn i!s cost; that of brown coal 22 per. conr. (2s. 7d.), as against a rise of 25 per cent, in cost. Tho increase in the price of brown co-:ii for 1917-18 when compared with 1913-14 (« better basis of comparison of the incomplete data for browncoal mines for 1913) is 30 per cent. (3s. Id), the corresponding increase in cost of production being 31 per cent.

■ If the properly-weighted average sellingprice ba compared with the corresponding ayer.ip) cost of production for tho mines giving returns for the years 1913-18 the mar;i!!s between cost and price are 9d. omMOd. a ton for 1913 and 1918 respectively, or ,f>.G and'4..l per cent, of the cost of production. A comparison of thesimilar margins for all mines giving data, whether over Iho whole period or not, shows a reduction from 9d. to sil. a lon, tho latter representing 2.2 per cent, of the average cost.

The mining' companies have- i'Ot incrtnscd their gains from tho industry during the war period relatively to ciieir costs. It is further to be noled that in many cases certain charges are not sufficiently provided for in their costs. Of tho twelve principal coal-mining companies the highest, average- annual dividend for the last six years is 10 per cent, (earned by a company which fir seventeen years, 1650-97, paid no dividend at all); the lowest average is nil. Of the twelve, two paid an average dividend of from 7-i to 10 per cent.; two from 5 to 7i per cent.; four of from 2i to 5 per cent.; one pa-u below 2-J por (,»nt.; and three paid no dividend during the period. '

The average rate of dividend paid during the period, weighted according to the relative s:'zes of the capitals of tho different companies, was i.S per cent. The average rate of total gains made by the companies—that is, including undivided as well as divided profits—was 5.1 per cent. Out of this tho industry has to provide interest to the shareholders, and a large part of trio insurance, depreciation, and sinking fund charges. The general conclusion is that Iho rate of profit.made in the production of coal, taking the industry as a' whole, is znduly loy. A large amount of capital invested in coal mining in Now Zealand in (he past has been lost without 1 making !>ny returns to the owners.'

(ii.) Profits in Distribution,

It is assumed that the ijuestion of (he reasonableness of distributors' profits refers to.coal dealing iii existing conditions and with tho present methods of distribution.

The general conclusion is that, except in the cajo of those dealers who are engaged in the retail trade on a large scale, the\dilference between the cost of coal to theNleakrs and tho price received by them affords but a mere living to those engaged in it. 'iho profits of tho retail dealers cannot be assessed as exactly as those of tho mining comparilest, because of the mixed nature of tho business conducted by them, but (he evidence does not support the charge flat they are' unreasonably high. (it is estimated that the profits per ton of coal made by retailers in Wellington averages 2s. ii. in the city and 3a. 2d. in the suburbs. These averages takes no account of poriode when there ivas no coal to distribute, during which time hands r had to be kept on.) Profits in-the transport of coal appear to be higher than in mining or retail distribution. For the period 1914-17 the profit earned on t'ho "carriage of coal in certain .typical parts of the New Zealand coastal, trade appears to haye ranged from Is. to Is. 3d. a ton, from which fiepreciatipu, sinking fund, and-periodical overhaul charges have do be deducted, These ' profits would have been much higher if the shipping in question had (trailed itself of the many opportunities for much more profitable work . abroad during the war period. Higher margins of profit were undoubtedly earned by foreign-owned shipping carrying coal to tho Dominion.

Whether the Selling Prices of Coal are Fair and Reasonable,

This question has already boon answered in the last section. There is no doubt that tho price of coal could have been raised niucli higher than it actually was during tho last two winters ■ in view ol the competition of consumers for the diminished supplies, but for (lie influence of public opinion, the action of the loi*i coal committees set up by the At nißtry of Munitions and Supplies, and the pree-' euro in certain cases brought to l<sar by some, of the leading coliiery-owiicre and large distributors upon tho general body of retailers in the direction of discouraging proposed increases in retail prices. In many cases tho smaller dealers lnrgoly dependent, upon coal suffered considerably through prices not rising sufficiently to return them working expenses. •

Whether Increased Economy or Efficiency Can be Obtained irythe Production and Distribution of Coai, and, if so, ---■ in what Manner, As thia question has been discussed, it is not necessary to repeat the recommendations specified there. ,

All Other Matters Affecting the Supply or. Price of Coal, .

These also have been included in an earlier section of thia chapter. Without undue repetition we should like to oniphasise hero—

(i.) Tho'.necessity for State encouragement scientific research, and its application to the problem ol' v,oal-nrining and the utilisation of :he small coals or' the Dominion. A much fuller advantage may be taken of the work done and the advice given by the State Geological Department, and . the university colleges should receive generous financial assistance in tho development of research. (ii.) The equal importance of .411 improvement in tho industrial organisation of labour at the mines and in its* gcr.wal social environment, particularly in respeol of housing cud better cuiiuutionul facilities.

(iii.) Systematic technical education in the domestic use of coal so as to diminish considerably the present great waste duo to ignorance of the possibilities of small and mixed coals, and of the proper methods of stoking ovens and grates. (iv.) Discouraging every form of inflation of the currency, which inevitably leads to rising prices at the expenso of the poorer members of the community.

The Increases Since the Commencement of the- War in the Cost of Living so Far as Such Increases Affect Men Engaged in the Production of Coal', Distinguishing Between Increases, if any, Prior to and Subsequent to the Industrial Agreements made in the Coal Industry in the Year 1917. This section of tho inquiry presented special difficulties, which, owing to tho abnormal diameter of the period during , which the board was conducting ils investigations—i.e., tho period of tho in? iluenza epidemic—we wero not in a position altogether to overcome. From the data at its disposal llio board estimates tho increase in tl* ■ "expenditure on living" at tho minefields'' from 1813 to about September, 1918, to bo about 35 per rent, lit tho most. A more intensive investigation is necessary. The chief factors tending to counterbalanco thp. rise in the cost of living have heon tho increases in tho rates of wages to mine workers, which, together with improvements in the conditions of their work, increased opportunity? of employment, and in some cases a longer working year, have resulted in substantial additions to' their actual annual earnings. In the case of many of the underground workers" tho additional earnings have fully compensated for llio riso in the cost of living even nt the pre-war standard, although .the 'adjustments made in the rates of pay by :neans of the bonuses granted in 11)10 and 1917 (as well as in 1918) lagged behind the increases in their expenditure. In other cases, and particularly in the case of tho surface men on day wages, the increases in actual earnings do not appear to havo fully compensated for tho increased expenditure necessitated by living at tlio pre-war standard,

Other compensating factors, such as any increnso in actual family earnings as from individual earnings, it'was not possible to determine statistically from the available material. We take the view (hat the order cf reference does not reqniro us to express our opinion upon tho question whether wages rates ought to be raised whenever and because tho cost of living- increases.

The increases since the commencement of the present war in the earnings of the men engaged in the production of coal, distinguishing between increases, if any, prior to and subsequent to tho said agreements.

Up to September, 1918, tho rates of pay to miners (hewers) had increased by 17-} per cent, by two bonuses, one of 10 per cent, in the first half of 191G and the other of 7J per cent, about the middle of 1917; nil other workers in and about the mines received two bonuses each of 10 per cent, at the same time. From September to October, 1918, miners received 25 por cent, increase on the 1914 rates of pay, and other workers 30 per cent.

Mine workers generally have received increased actual earnings beyond the increases in (he rales of pay. The increase in labour cost of production has been already stated in this summary. Underground workers' earnings have increased in some cases beyond 50 per cent., and the average increase cannot bo far from 71 per cent, as between 1913 and 1918. These increases have been due not only to the increase in tho. rates, but also to tho fact that tho mine work lias during tho war been concentrated largely on those parts of the mines where the conditions of production are most favourable to a high output per worker, and that more time in the year has been put in by workers in many cases. The increase in the wages actually earned by surface workers' does not exceed the increase in. their rates of pay to such a degree- as in Die case of miners, but earnings in excess of tho increased rates aro the rule.

■ The increases in miners' actual earnings have a very close connection with tho increases in the rates of pay provided for , by the industrial agreements of WIG and 1917; these were followed tn most cases by a. more than proportionate increase in actual earnings, tho whole of which, however, as pointed ont above, cannot be ascribed to the increased rates alone. '

While the mine worker's income has increased, his expenditure on tools ami other necessaries used in the mine, which ho provides wholly or in part, has increased bv •nt least ,£lO a year. His cost of living has also increased. Tho wages" of the mine worker had increased very little, if at all, bySeptember, 1918, unless the unknovn factor, family earnings, had increased. The effect of the third bonus then granted should bo to increase them beyond their level in 1913->l4.

It is to be noted that these results, like those in respect of profits, are generalisations or averages true of the mass, and that there are to be found within the period particular cases, both ,of individuals and mines, showing consiflornblo divergency on either side from the average.