THE PRICE OF COAL

Taranaki Daily News, 13 September 1922, Page 5

THE PRICE OF COAL

PROSECUTION OF MERCHANTS. EVIDENCE FOR DEFENCE. By Telegraph.—Press Association. Dunedin, Last Night. The case in which the Crown is proceeding against a group of Oamaru coal merchants and several coal and other companies charging them with a, breach of the Commercial Trusts ] 9)0, and claiming penalties of £5OO, and asking for an injunction, was continued before Mr. Justice HoSkine- in the Supreme Court to-day. Evidence .for the defence was called, which was generally a denial of the charges. Robert Lee, manager of the Kat tan* gata Coal Company, said the Coal Merchants’ Association of Oamaru acted as a convenient medium of negotiation between merchants and the coal companies. Cross-examined, witness said there had been no general reduction in the price of coal in November, and he would be surprised if any other companies besides the Kaitangata and Shag Point had then reduced the price. Oamaru was the only place where a reduction was made in November. His company made its general reduction on May 1 last. From December to May there would not perhaps have been a loss on the Oamaru trade, but the company would not be making much out of it. The Kaitangata Company would have supplied Brown if he had agreed to sell at the prices fixed by it and to drop Linton, and also to join the association.

The price of coal to the association in Oamaru had again been reduced from the first of the present month, but the fact that Brown was not getting Kaitangata coal had not caused the reduction; it was due to competition with Linton. The price fixed by his company with the Oamaru merchants was a maximum, and they were free to go below that so long as they did not. start cutting. They desired that all coals handled by merchants should yield the same profit. That was why they approved of the Coal Merchants’ Association. Such associations were common all through the Dominion, not only in the coal trade, but in other trades. As a matter of fact the Coal Control Department, through the Dunedin Coal Committee, recognised the Oamaru Coal Merchants’ Association and negotiated with it. Further evidence was heard and counsels’ addresses were commenced. It is expected that the case will finish early to-morrow.