COAL PRICES

Taihape Daily Times, Volume 8, Issue 141, 17 June 1916, Page 6

COAL PRICES

WASTE IN DISTRIBUTION The Board of Trade recently investigated tlie cause of th L . increased price o coal in Auckland. Its report states that the increase in the wholesale price was fully warranted, and is not more than sufficient to enable the Taupiri Company, which does 60 to 70 ner cent of th e trade, to produce without loss. On the outbreak of war associated coal owners agreed not to increase the price of coal during the war unless the mine cost were increased. This policy was maintained until! May 22. Examination of retail prices leads the Board to the opinion that the price of coal in sacks is too high.

In regard to kitchen coal, the report says: ‘The object of the colliery proprietors in placing his grade on the market was to ease the burden of the increased price on the poorer consumer. The best wholesale price is 12/7, or 2/3 cheaper than the wholesale price of house coal before the rise. The retail price in ton lots is actually (id a ton higher than house coal before the rise. This price defeats the object for which the grade was instituted, and after making every allowance for increased freights and wages, cost of sacks, etc,, We are of opinion that the retail price should not exceed the folowing:—Ton lots, 33/; half-ton lots,. .17/6; quarter-ton lots, 9/; sack lots 3/2 —the latter being equal to 38/ a ton. A table is appended showing details of the risp of prices. House coal is sold in the trucks at Huntly at .17/1:1 a ton (and is supplied to dealers at £1 10/9. Of the difference 9d represents the merchants’ profit. The coal is supplied to consumers at from £1 1.7/6 to 45/ a ton according to quantity. The difference between these prices and that at which it is supplied to dealers, represents the cost of dclivry and the dealers’ profit. The report says on this point:—‘A sane method of distribution w-ouM greatly reduce the ultimate cost to the consumer, and it is to improved methods of distribution in Auckland that we must look for relief as far as coal isconcerned from the burden of rising prices.”