MUNICIPAL COAL DEPOT.

Manawatu Herald, Volume XXXV, Issue 1132, 12 August 1913, Page 3

MUNICIPAL COAL DEPOT.

PROPOSAL DEFEATED.

At last night’s Council meeting the notice of motion by Cr Chrstall to the effect that a municipal coal depot be opened to be run in connection with the gas works and to sell coal strictly for cash, was brought up for discussion. The motion was seconded by Cr Whibley pro forma. Cr Chrystall said that his reasons for bringing forward the motion were, firstly, that the establishment of a municipal coal depot would assist the gas works which so far had not been a paying concern and he contended it was the duty of the Council to do something practicable to make the works a paying concern. To establish a coal depot, he contended, would be doing something in this direction. Such depot would undoubtedly be a benefit to the citizens. In the past, as Councillors knew, citizens had been absolutely unable to get adequate coal and as the Council were always able to get supplies and would be in a position to carry good stocks, it would be a safeguard against a similar position arising again. He was not out against private enterprise, but he believed in the policy of the greatest good to the greatest number. He didn’t suggest that local dealers were charging extortionate prices but he did submit that in the past consumers had been unable to get supplies in larger quantities and bad therefore had to purchase their coal in smaller quantities at increased rates. It the Council, by establishing a coal depot, could assist to reduce the cost of living, it was their duty to do so. To run a depot in connection with the local works would not require any additional labour, as the manager had told him the present staff could cope with it. The profit at Woodville last year from the sale of coal was £7 7.

The Mayor, in speaking to the , motion, said that he would deal with this question quite apart from , the coal merchant's poinc of view, ' and as a question affecting the re- j sidents of the borough as a whole. In the first place, the Mayor said, he did not think they had any right to speculate with ratepayers' money in so risky a venture as proposed. To justify establishing ; this depot they must be able to ■ show that the present charges 1 were too high, and that the ' borough would be in a position to ( make substantial reductions in the ! price. He would bring figures to ' show the profits per ton made by ( the local merchant, and would < compare the price charged by the | Woodville Borough Council, and j it would be clearly seen that { Woodville charges were at least j 35 to 47 % P er S cent * higher * naa Foxton. They had also to bear 1 in mind that in Woodville the ! borough were the only retailers of coal, making the position quite ' different. It had been quoted by ] the mover of the motion that ' profit had been made in one year ' at Woodville, but the figures ' would show that Foxton would be ' \ fortunate to come out after a • year's working and pay expenses, ( if it was decided to further reduce | the present charges, and this would be the only ground to ' justify the establishing of a coal depot. The cost of coal in the ] yards at Foxton was as follows : ' Westport 343 3d, and this was sold at 40s per ton delivered, cr 4s < per sack. This was only a gross ' profit of 15 per cent., and it was j also booked at this price. Tau- ] piri coal cost 25s 6d in the yard, and was sold at 32s per ton de- ' livered, or 3s 6d per bag, a profit ' of per cent. Newcastle cost ' 39s 6d, and was retailed at 455, or 4s 6d per bag, the gross profit being 15 per cent., and Puponga cost £1 14s, and was sold at 38s, or a gross profit of only i2}£ per cent. Any man with experience of business knew that the working expenses of any business were never under 10 per cent., and taking this as a basis, the net profits of the coal merchants in Foxton were only z l /z per cent, in the case of Puponga coal, 5 per cent, for Westport and Newcastle, and per cent, for Taupiri. A. comparison of the cost of the coal, and the selling prices in Foxton and Woodville would show that there was no justification for the establishment of a municipal depot locally. The tables were as under :

Westport coal was sold in Foxton at 4s pet bag against 9d in Woodville and Taupiri &t 3s 6d against 4s 3d. The , Major said that in face of the figures quoted he was satisfied that the Council would be making a mistake in establishing this depot. The charges were shown to be as reasonable as the Borough could hope to make them; If the Borough were to cut the local pric* down from 5s 9d a ton profit to 3s per ton, they would then need to' deliver this coal say at is 6d per ton, and the small sum of is 6d per ton would be left as a profit. This would be quite impossible as a business proposition without the loss resulting. He would have been pleased to have supported the motion if there had been figures brought to prove that the proposition was a sound one, but instead of being a help to the gasworks as suggested, there would be a grave danger of the works having to bear a loss. Crs Speirs and Coley ajso spoke

against the motion. Or Whibley said he agreed with the principle but in the face of the figures quoted he could not support same at present, but hoped the mover would bring the matter up at a later date. Cr Chrystall briefly replied and the motion was then put and lost, the mover alone supportiag it.

FOXTON. Coal. Retail Cost. Ptice. Profit; Westport Taupiri 34/3 40/25/6 32/WOODVItWJ. 5/9 6/6 Westport Taupiri 37/4 45/6 29/6 38/6 8/2 9/-