COAL MINING

Hokitika Guardian, 8 May 1930, Page 8

COAL MINING

POSITION IN WAIKATO

A FRANK STATEMENT

AUCKLAND, May 5

That the coal industry in the Waikato is facing difficult conditions and an unpromising outlook was the keynote of an outspoken address delivered to day to tfellow Rotarians by Mr C. M. licit white, director of the Glen Afton Collieries in the Waiktato. The speaker said: “We have five collieries at present operating, Taupiri, Pukemiro, Wai pa, Renown and Glen Afton. The first four are public companies, while the latter is private, being owned exclusively by the N.Z. Co-op Dairy Co. Ltd”

It was not generally known, said Mr >: fewhite, that, with the exception of 'Men Afton, all the other Waikato coal mines had only worked an average of about 3} days weekly during the last five or six years. During the past two or three months these mines had not averaged more than about two days’ work each week. This information might come as a surprise, particularly 1 in v.iew of the fact that quite recently, nmv companies had been floated, indicating that the existing mines were not ■Mile to satisfy the demands. There 'was no shortage of coal, each company having millions of tons awaiting prodnotion. The controlling factor in the coal industry to-day was hot production but markets. There was no use In coal seams showing millions of tons if there was no profitable market offering. Unfortunately, the public had T>r«m under the impression that one had onlv to locate a workable seam of real and a fortune was waiting to be nicked up. They had never been told the truth, and it was time somebody spoke up. During the last few years inaccuracies, amounting almost to misrepresentation, had been contained in the prospectuses offered to the public in connection with the coal industry. The public had been invited to invest still further capital in an industry which was already overdone, and was in a most difficult position. The speaker quoted from an advertisement published, in 1925 showing that, at that date, the four Waikato companies w'ere capable of turning out 010,000 tons of coal per annum, whilst r fes totalled 490,000 tons. The restricting effect that Arapuni would have on future sales was also emphasised, yet in face of this a company prospectus was issued shortly after in which the statement appear ed: “Within the last few years the principal mines in the Waikato have been taxed to the utmost to fulfill orders.” The mere fact that a new colliery opened, did not increase consumption one ton per annum. It only further divided the existing business. During the last few years they had seen the establishment off a number of comparatively small co-operative mines operating in Waikato district. These mines did not individually turn out a very great tonnage, hut their collective outputs was more than sufficient to absorb the increased trade over the last few years. He believed- he was well within the mark in stating that ’ ■ nrincipal Waikato collieries were to-day, only producing two-thirds of th<dr output in 1920. It seemed to him '■■>t. in order to place the coal mining '■ dnstry in the Waikato in a stable

-'o-vt.ion. there would have to he considered either an amalgamation of in femsts, a pooling of sales, a merger of ennital of. some combination which would restrict the output to. the needs of the market. He had purposely re•’mined from touching on the labour "''editions which were also teeming ‘‘h difficulties. Concession after conoossion t>ad been granted until the management of the industry had almost

"tirely been wrested from the owners ' r h« unemployment situation in relation coal was greater than most peonl.> imagined.