WELLINGTON NEWS

Hokitika Guardian, 1 March 1928, Page 4

WELLINGTON NEWS

NEW ZEALAND COAL DEPOSITS. (Special to “ Guardian WELLINGTON, Feb. 27. Now Zealand is rich in coal deposits. but they are mostly lignite. To a certain extent tins coal has been neglected, that is to say it has not the commercial value of anthracite or bituminous coal. \et it has great intrinsic value and is being put to a great many uses, the most important being its conversion into pulverised coal. The llutt Gas Lighting Hoard is in want of material in connection with its lighting system, and it' has wisely decided to gel the best offer available. The Board can extend its lighting system at some expense; it can also obtain its supply of gas direct from the Wellington Gas Company. ami this proposition looks feasible. The Wellington Gas Company offered to supply Mutt Gas Light Board with; gas at so much per thousand feet. Now. in respect to gas. the cost lies in producing the coal at a convenient point and there retorting it for the gas. In this respect the Wellington Gas Company is advantageously situated, its works are round the waterfront and its delivery of coal goes straight to the bins from the ship. It can there he converted into gas and can be sold us required by the Hutt Lighting Board at a minimum cost and this Board is saved all cost, of manipulation. It gets its gas at the lowest price possible. Apparently the Wellington Gas Company makes nothing out of its venture, but that would not be the case because the more gas it sells the cheaper becomes the coal, and it is on the sale of gas hath to the Gas Lighting Board and to its customers in the city that it will derive its profits, the venture then looks very promising for both parties- anti in the absence of any other proposition this offer would no doubt be accepted. But it is stated that the Gas Lighting Board lias another offer which is of greater importance than the proposal of the Wellington Gas Company. It is proposed to utilise the lignite coal so plentiful in the Dominant, which can be obtained at the waterfront in large quantities at cheap rates. Sir Joseph Ward, wlto appears to be the prime mover in this matter. has approached the Gas Lighting Board with an oiler to form a company with a capital of not less than tMOIhCDO with the object of establishing very large works in the llutt Valley and will supply the Board with gas of a high calorific value at prices much below the cost of production by other known methods of gas manufacture. The Gas Lighting Board seems rather impressed with this offer, and has engaged an eminent gas expert to make a thorough examination of the present plant, to confer with the gas manager and to bring down to the Board a recommendation showing the most economical anti practical method of enabling present manufacturing plant, to cope with the ever increasing demand until the Board is in a position to obtain supplies by a more modern and cheaper method. The syndicate which proposes dealing with the lignite coal will manufacture smokeless fuel and will supply the Board with gas at a price considerably below I hat at which it could be either manufactured or purchased in-bulk. The syndicate proposes the formation of a tompauv in London, and with the hacking of Sir Joseph Ward, such a comiiitny would ho easily and quickly formed. It is staled that those inter 'sted in the Company have a thorough knowledge of the coal trade and the manufacture of gas. and it is considered that the smokeless fuel could be made from what is now a waste product of New Zealand coal fields. Sir Joseph Ward is ready to proceed to London as the head ol the syndicate to float the company, In addition to smokeless fuel and gas there are many by-products. principally of a manure value, which would no doubt find a place in the scheme. Sir Joseph Ward and those who are acting with him are looking after their own interests, hut it will be very difficult, to discriminate between their interests and those of the public at large. If the scheme is successful it means establishing a new industry in the Dominion from which all must benefit.