The Daily News. MONDAY, APRIL 16. STATE COAL MARTS.

Taranaki Daily News, Volume XLVII, Issue 8085, 16 April 1906, Page 2

The Daily News. MONDAY, APRIL 16. STATE COAL MARTS.

Tue decision of the Government to j enter upon business as coal retailers • will not be received with any astonishment, as it has been obvious from the commencement that the State coal mines did not result in effecting any saving in fuel bills to the ordin- ' ary consumer. One of the principal I arguments used in favor of the establishment of the State mines was that it would result in breaking the alleged monopoly of the big coalmining concerns, and reducing the price of coal to the consumer. Maybe, indirectly, some saviug has been effected by the use of State coal on the railways, and by the reported profit on working the mines, but the reduced cost of living that was to have resulted is still only a prospect. Whether one is in accord or not with the so-called socialistic trend of our legislation, and the growing competition of the State with private enterprise, all of us, as taxpayers, desire that the industry, having been established at very considerable cost, should be made to pay, and be of some benefit to its owners, It was quite evident that the mere dumping of State coal at a few of the principal ports would never result in any benefit being derived by the smaller con : sumers, as the large coal companies and distributors still controlled the .situation.

It does not appear to be the intention of the Government to drive the ordinary coal dealer out of busiuess, nor is it likely that the State will ever become other than one of the numerous competitors in the trade. The effect of the catering by the State for the masses, at reasonable rates, will be that the price of household coal must be reduced to dealers by the large mining companies. Experience has shown that State com petition in other lines has not resulted in any considerable dislocation of established enterprise. The prime effect has been that the masses have benefited, and, surely, it must be agreed that anything that tends to reduce the cost of living, and, consequently, increase the general spending power of the wage-earners, is good for the community and tho colony in general. * * * 0

We confess that, with regard to the Government proposal that municipalities should undertake the distribution of State coal, in districts where the State does not purpose becoming coal deliverers, we are not yet prepared to offer any decided opinion. Certainly there is much that may be said in favor of the proposal, equally as, especially in small, self-contained communities, there is an obverse side to the picture. In a measure many municipalities are already engaged hi the coal industry as suppliers of gas. In the manufacture of gas, many Councils already supply the most important product of coal for heating, lighting, rooking, and motor purposes. It may be argued that if municipal authorities could undertake the sale and supply of by-pro-ducts, such as tar and coke, it should be able to add coal as well. From that point of view, it would amount to no more than a slight extension of the principle of ratepayers' co-operation already in operation to some extent in the majority of boroughs. It seems to us, however, that it is principally in tho large towns, where private mine-owners have a grip on the supply and delivery market, that there exists necessity for State or municipal interference.

* # * # As the New Plymouth Borough Council does not possess the gasworks, it is unlikely that they wonl consider engaging in this suggested branch of municipal enterprise. Indeed, so far as wo can judge, there would not be m>y necessity for their so doing, if the State concern is prepared to supply merchants with coal at a cheaper rate than has been the practice. There is no reason to doubt, in such circumstances, that the consumers would derive the fall benefit of any such reduction. Had it been proved that such were not the case, there might be some justification for the State or municipalities engaging in the delivery business. Meantime, the experiment of State delivery by the Wellington depot is certain to be watched with interest, and on its success or otherwise will assuredly depend its adoption as a practice by the people.