STATE COAL-MINES (REPORT ON THE WORKING OF) FOR THE YEAR ENDING THE 31st MARCH, 1905.

Appendix to the Journals of the House of Representatives, 1905 Session I, C-03b

C—3b

1905. NEW ZEALAND.

STATE COAL-MINES (REPORT ON THE WORKING OF) FOR THE YEAR ENDING THE 31st MARCH, 1905.

Presented to both Houses of the General Assembly in accordance ivith the requirements of Section 14 of " The State Coal-mines Act, 1901."

Mr. James Bishop, Manager of State Coal-mines, to the Under-Secretary of Mines, Wellington. Sir,— Greymouth, 10th July, 1905. I have the honour to submit my annual report on the State Coal-mines for the year ending 31st March last. Point Elizabeth Coal-mine. Underground Development. As detailed in my last report, there are three tunnels all driven with the object of operation on what has been named the Exhibition Seam, and they were rendered necessary by the faulty character of the coalfield. Nos. 1 and 2 tunnels are the main haulage-roads from two distinct sections of the mine : Nos. 2 and 3 are connected for purposes of ventilation. The effect of the faults is shown by the fact that No. 1 tunnel is 100 ft. higher than No. 2, and there is a similar difference between Nos. 2 and 3. The course of the faults as proved by the underground workings is different from what was anticipated : this is especially so as regards the one between Nos. 2 and 3 sections, and this would indicate that the thick coal seen in the cliff on the Seven-mile Creek will be found in No. 3 section as the workings advance to the rise. The coal-winning so far has been almost entirely confined to the No. 1 and No. 2 sections, and as the workings have advanced north and east, or towards the rise and on the strike or level course, the coal has proved to be of reduced thickness, necessitating a change in the system of working from bord and pillar to longwall, and at the same time the rate paid for hewing the coal has had to be increased. The change of system will, however, enable a much larger quantity of this thin coal to be won than would have been possible under the bord-and-rnlLir system, and there will be economies in connection with roads, &c, which will largely counterbalance the effect of the increased hewing-rate. The second seam, which exists only in the No. 1 section, continues of good average thickness for a short distance east of the fault-line, when it also thins; in going to the rise a good workable thickness is maintained. No. 3 section : A road has been laid into this section connecting it with No. 2 level, and a small quantity of coal is now being won from this section, which is delivered to the endless-rope haulage at No. 2 for conveyance to the bins or railway-trucks. Exploratory work with the object of providing for future requirements : A pair of dip headings have been started and are now in course of being driven. These have reached a length of 26 chains; the grade is 1 in 5 (approximate) : the coal is of excellent quality, and has maintained an average thickness of 10 ft. without a break, and very little water has been met with. In addition to these exploratory drives a borehole is being put down from the surface, the object being to prove the position of the lower seams know m as the Moody's Creek coal. The probable depth of this bore is calculated to be 1,200 ft., and it has been located at a convenient point for working the coal should it be found advisable to sink a shaft for that purpose. The plan attached shows the present underground workings, the new dip headings, and the location of the borehole.

I—C. 3b.

C.-3b

2

Surface Works. The railway for conveyance of the coal to the shipping-port is now complete, excepting buildings at stations. The coal-storage bins have also been completed, the capacity being approximately 2,000 tons, and they have proved so far of great value, inasmuch as we are enabled to keep the mine at work when shipping is delayed from any cause. Coal-picking and automatic distributing-belts are to be added to the bin-equipment: these are on order, but not yet delivered. Endless-rope haulage : This plant continues to work well, and meets all requirements. Ventilating-fans : The mine-workings are ventilated by fans, one on each section, actuated by horizontal steam-engines; by them ample air is produced, and they will be equal to the requirements for some years. Workshops : These have been equipped with excellent machine tools, enabling considerable saving to be effected, as repairs and new work (in many cases which would otherwise have to be sent away) can be done at the works. Sawmill: This plant has been improved during the year by the addition of a planing-machine. The mill continues to be of great value to the mine, as by it the whole of the sawn timber for underground use and for surface-erections is obtained at a minimum cost, and without delays often inseparable from having to obtain supplies from outside sources. In addition to the supply of all the timber for mine purposes, whatever is required for building workmen's houses can now be supplied. Numbers of houses are now in course of erection, and, as the new township is being opened up by pushing on the making of streets, the demand for building-timber will rapidly increase. Coal-export. The raising of coal for market was begun in May last year, and up to the 31st March 92,949 tons had been raised and disposed of, the principal portions to the Department of Working Railways. Class of Coal raised. Hitherto unscreened coal only has been handled, but as the output now exceeds the demand for this class, it has been decided to add to the plant by erecting screens to enable the requirements of the household trade to be met. The mine is at present capable of producing 3,000 tons per week. Labour. There has been no difficulty in obtaining labour as required, and although the changing thickness of the seam has rendered frequent alterations of hewing-rates, &c, necessary, any difficulty of this kind has been arranged without serious trouble by meeting the workmen's representatives in conference. Accidents. There have been a good many minor accidents, and, I regret to say, one fatality during the year, the latter caused by a fall of stone from what appeared to be a perfectly sound roof. Harbour and Shipping Facilities. Reference may here be made to the difficulties connected with the carrying-on of a coal trade from the port of Greymouth due to— (a.) The hindrances to shipping entering the port owing to the frequency of heavy seas on the bar, and the shoaling which not infrequently occurs after storms which are mainly due to the effect of the prevailing wind ; on several occasions during the past year vessels after loading have had to be lightened of part of the cargo to enable them to get over the bar. And (b.) When ships are available the facilities for loading coal are not such as to enable prompt despatch to be given. More coal-hoppers are required, and a better sytsem of cranes than is now in use. Steps are, it is understood, in progress which will to some extent remedy the last named defects, but they will fall far short of what is required to make the port reasonably complete. The system now in vogue tends to the maintenance of high shipping freights and extra costs in loading the coal. Seddonville Coal-mine. In my last report detailed information regarding the former ownership of the mine, its physical features, the various works undertaken to prove existence of coal and its quality, was given, and need not be repeated now. It may, however, be stated that Underground development has during the year been continued on the lines described in last report. The stone tunnel then in course of construction (which forms the main haulage-line) has been completed to the north bank of Chasm Creek, and new workings have been opened from this tunnel in the area of coal formerly known as Grant's Face.

3

C—3b

Thus, as will be seen by reference to the mine-plan, there are now two separate districts or sections in the mine, designated the west and south districts respectively. In the first, the coal was intersected by the stone tunnel, and was found to dip at a high angle towards the south. Workings were then opened, and this coal, which has proved to be of a crushed character, has been worked towards the rise during the development of these workings : the stone tunnel was continued until the coal in Grant's Pace was reached. Here the coal is much harder and of superior quality, and from it coal is being obtained which should give good results in locomotive-work. But, although this coal is hard and of improved quality, it has the drawback of being difficult to work, owing to the presence of stone in blocks and bands of very irregular form and thickness. Haulage Arrangements. The haulage of the coal is effected by endless rope, which it is intended to extend to the extreme of the south district or beyond, if the exploration of the area south of Chasm Creek warrants this. Meantime, the terminal wheel of the endless-rope system is fixed near the level connecting the west workings with the haulage-line. The distance from this point to the level storage-bins is 116_ chains, requiring the application of 2 miles and 73 chains of rope. The machinery in use, including haulage-engine, ventilating-fan, and engine have worked satisfactorily during the year, and are now in good order. Coal raised There has been 40,090 tons raised during the year. The output from the west workings has been sold principally for bunkering steamers, and that from the south workings since being opened principally to the Department of Working Railways. The selling-prices, owing to the crushed character of the coal, have not been payable, but since the opening of the south workings arrangements have been made whereby better prices will be obtainable, thus in future if trade is maintained there is a good prospect of the mine being made to show a margin of profit. Future Developments. The development of the field will in the future be towards the south across Chasm Creek, in which direction exploration-work is now being carried on The work so far done in connection with the winning of coal from the Jdistricts already opened, and by exploration having future requirements in view, shows that the field is broken up into a series of small basins, the continuity of the seam being interfered with by granite intrusions. In the centre of the basins the coal may be as much as from 15 ft. to 18 ft. thick, thinning off towards the edges, as shown by attached sections of the coal exposed north and south of Chasm Creek. In the centre of the basins the coal (especially the lower part) is generally of good quality, towards the edges it becomes crushed. The undesirable features just referred to render the continuation of exploratory and development work imperative. With the object of utilising the coal that cannot at present be disposed of profitably, consideration has been given to the following methods of treatment :— (a.) The advisability or otherwise of establishing coke-works ; or (b.) Of establishing works for the manufacture of briquettes. As regards the first of these proposals, experiment has proved the coal capable of producing good coke, but the demand for this within the colony is too limited to be of much practical value in disposing of the product of a mine producing small coal in such quantity as Seddonville does. The manufacture of briquettes is extensively carried on on the Continent of Europe and in England, and coal is thus utilised that could not be sold under ordinary conditions. The small coal is, after mixture with a suitable agglomerating-material, pressed into blocks of whatever size is found most suitable for the trade to be supplied. Given efficient plant, the blocks can be made of such hardness as to stand handling and atmospheric exposure as well as ordinary lump coal. This system, it would appear, is capable of producing profitable results ; much, however, depends on the cost of labour and of the agglomerating-material. Detailed estimates of plant are being obtained. Cost of Producing Coal. The question of the cost of production has been the subject of much consideration during the year, and has led to frequent meetings between the workmen and management. The limited demand and consequent short time worked have had the effect of maintaining costs at a higher level than would have obtained had the output been larger. 4. number of minor accidents have occurred during the year but nothing of a serious character. The accompanying tracing of the mine-plan shows the workings up to date, and the direction in which future extensions will be made. In concluding my reports on the State Coal-mines, permit me to say that all the officers connected with the mines have carried out their duties carefully and well, and in numerous consultations I have received valuable assistance from the Consulting Engineer. I have, &c., James Bishop, Manager. The Under-Secretary, Mines Department, Wellington.

a—3b

4

Alexander MacDougall, Managing Agent, to the Under-Secretary, Mines Department. Seddonville State Coal-mine, Westport. This mine hasJnotTbeefijkept inactive or The quality b of_the_coal has been found.to bejextremely variable, and the demand so uncertain and intermittentjthat full time for the miners could not be maintained. Taking the output all through during the twelve months, I estimate that there was not 20 per cent, of good sound coal suitable for household or locomotive purposes to be found in the whole production, as delivered at this port —the remainder being in a soft, mushy, and half-perished state, rendering its sale often difficult and always unsatisfactory. The railways were unable to use this coal profitably for locomotives, unless the greater part of the round lumpy coal were picked and selected for them ; but even with this manipulating process Seddonville coal was not looked upon with favour as a steam-generator. I understand, however, that during the last few weeks a new development has taken place in a different part of this mine, which shows a very great improvement in the quality of the coal. The first shipment of this coal (115 tons) came to Wellington in a screened state last Monday, and a finer sample of coal I have not seen landed in any part of New Zealand. If this class of coal can be regularly supplied, a ready and no doubt profitable market will be found for it all over the colony. There has been such a large preponderance (about 80 per cent.) of small coal found at the Seddonville Mine that it would not have paid to screen the output, and while the screened portion would command a high price—say equal to the best Westport Company's screened —the preponderating small would command very little ; consequently the loss by screening the coal from this mine would have been greater than it is even now. The quantity of coal from this mine which passed through the Managing Agent's office during the past financial year amounted to 35,504 tons 12 cwt. lqr., valued at £24,871 4s. 6d. Point Elizabeth State Coal-mine, Greymouih. Active operations at this mine commenced only on the Bth June, 1904, so that the period under consideration is less than ten months. The quantity of Greymouth State coal which passed through the office of the Managing Agent during that period was 84,282 tons 18 cwt. 3 qr., valued at £81,847 65., exclusive of sales made to railways and local people in the Greymouth district. The quality of this coal was found and is still found to be excellent, and the demand for it far exceeds the supply. If the quality and quantity of the coal from these mines keep up their present standard, and the Seddonville product fulfills its present promise, the colony's main supply for the future will be derived from the State coal-mines, and, with the prospects now held out, there should be no hesitation in proceeding with the development of these coal-fields as rapidly as circumstances permit and the demand for the coal requires. The Government has a large tract of coal-bearing country containing an enormous quantity of good sound coal to work upon. But the profitable working of these coal-fields must depend largely upon the amount of skill and economy with which they are developed. Coal cannot be sold cheaply if it is not won cheaply, and in the present field of competition this can only be accomplished under the highest conditions of practical knowledge and economy. The Department has two coal-hulks in Wellington Harbour —the " Coromandel," which stores about 1,500 tons of coal, and the " Enterprise," which carries about 140 tons. The former was purchased for the purpose of storing and supplying State coal for the use of His Majesty's men-of-war, when they visited Wellington; but the coal at present mined both at the Greymouth and Westport State mines is not found to be suitable for navy use, and it will take a.little further development and construction of tramways before arriving at the seams of coal which are known to be well adapted for use on board war-ships. The " Coromandel" will then be required to supply the purpose for which she was purchased, and, until then, she can, as at fi present, be usefully employed as a storage-hulk for Seddonville coal. The " Enterprise " is also used to relieve the congestion caused by an excess of small coal or slack produced at the Seddonville Mine, which she supplies for bunkering small coastal steamers loading at Wellington ; but, while useful in this respect as a medium for finding an outlet for Seddonville coal, she is barely paying her way otherwise. But all the hulks in the harbour are used only as a means towards an end in the same way. Very fair and reasonable freight arrangements have been entered into with steamship-owners for the carriage of State coal from Greymouth and Westport to the various ports of the colony, and coal-dealers and private importers who wish to buy cargoes or part cargoes of State coal at f.o.b. prices can, through the same channels, procure the benefit of these arrangements. These arrangements already effect a reduction in freight on coal for Government Departments alone of about £3,000 per annum as compared with those ruling when this office was established. With reference to the question of establishing depots for the sale of coal in the various centres of the colony, this matter has engaged my attention very fully of late, and I am of opinion that the State coal-mines will never adequately fulfil the object for which they were undertaken until such depots arc opened. The initial cost would not be heavy, and it would soon be recouped from profits on sales of coal. Hitherto by far the larger portion of the coal produced from the State mines has been used

5

C—3b

by the railways and other Departments of the Government; but now, with the prospect of larger developments at Greymouth and the erection of screening appliances there, and also the development of the new field recently opened out at Seddonville, where, I understand, permanent screens are also to be erected, I should say that the Government would be justified in establishing depots in the large centres without further delay, and extending gradually to other parts of the colony as more coal became available. There is practically an unlimited supply of coal, and the quality both for steam and household purposes as now coming forward is all that could be desired ; and now that I understand further improvements are being introduced, the increased production of a marketable article should keep pace with the demand. At present there is an opening in the colony for at least 400,000 tons of first-class State coal, which, if available, could be sold to advantage at a large reduction on present prices. Alexander MacDougall, Managing Agent. The Under-Secretary, Mines Department, Wellington, 31st July, 1905.

C—3b

6

New Zealand State Coal-mines. Balance-sheet of Seddonville Mine at 31st March, 1905, as required by the Audit Office in Accordance with Section 14 of " The State Coal-mines Act, 1901." Liabilities. £ s. d. £ s. d. Assets. £ a. d. £ s. d. To Proportion of debentures allocated to Seddonville Mine .. 80,785 11 9 By Sedaonville Mme— Proportion of sundry oreditors .. .'. .. 2,213 18 1 Cost at 31st March, 1904 .. .. 24,376 10 10 Proportion of accrued interest payable .. .. .. 1,050 0 0 Less stocks stores coal .. ... 434 811 84,049 9 10 — 23,942 1 11 Additional outlay during year .. .. .. 4,942 6 8 28,884 8 7 Less depreciation 10 per cent. .. .. .. 2,888 8 10 25,995 19 9 Stores (stock on hand) .. .. 270 9 4 Coal (stock on hand at mine) £97 17 0 „ (stock on hand at wharf and afloat) .. .. 546 18 9 644 15 9 915 5 1 26,911 4 10 Hulks property account cost .. .. .. .. 2,600 0 0 Less depreciation 10 per cent. .. .. .. 260 0 0 2,340 0 0 Proportion Greymouth office furniture .. .. 112 17 6 - . Wellington , .. .. 38 13 3 151 10 9 Leps depreciation 10 per cent. .. .. .. 15 3 1 136 7 8 Proportion of sundry debtors .. .. .'. .. .. 2,403 2 9 Balance in hand State Coal-mines Acoount .. .. 97,949 410 Less vouchers outstanding .. .. .. 7,414 910 90,534 15 0 Proportion allocated to Seddonville Mine .. .. .. .. 45,267 7 6 Balance of profit and loss account .. .. 6,109 1 0 Add balance brought forward .. .. 882 6 1 6,991 T 1 £84,049 9 10 £84,049 9 10

7

C—3b

Seddonville Colliery Profit and Loss Account for the Year ended 31st March, 1905. Liabilities. £. s . d. £ s. d. Assets. •£■ s- d. ■_ s. d. To Stock of coal at 31st March, 1904 .. .. .. .. .. .. 221 7 6 By Sales of coal .. .. .. ■■ •• •• 25,756 10 2 Coal-winning— Stock of coal at mine '.'. '.'. 97 17 0 wages .. .. .. .. .. 9 ; 673 1 2 Stock of coal at wharf and afloat .. .. .. 546 18 9 Material used .. 530 10 7 644 15 9 stores •• •• •• •■ •• .. 491 6 2 Balance loss .. .. .. .. •- •• •• -• 6,109 1 0 10,694 17 11 Management and office salaries .. .. .. .. 1,083 19 9 Bents .. .. .. .. .. .. .. ' 83 18 9 Royalties .. .. .. .. .. .. 99 18 0 Interest ana exchanges .. .. .. .. .. 1,962 0 5 Travelling-expenses .. .. .. .. .. 278 7 6 Printing and stationery .......... 94 0 3 Stamps and telegrams .. .. .. .. .. 113 is 5 Repairs and maintenance .. .. .. .. 39 14 10 Railway-haulage .. .. 6,081 9 2 Insurances .. .. .. .. .. .. 113 6 g Compensation for Accidents and Fund .. .. 35 15 5 General expenses .. .. .. .. .. 116 4 0 Marine freights .. .. .. .. .. 7 313 6 9 Hulks Working Account .. .. .. .. .. 1 1 274 9 8 18,690 9 7 Depreciation, property and plant .. .. .. .. .. .. 2 888 810 Depreciation, offioe furniture .. .. .. .. .. .. ' 15 3 1 £32,510 6 11 £32,510 6 11

C—3b

8

• c* io t-co to to no Z • OS CO 6-"* fc- _5 O fc- • (O IO t- <H _k Ol • GO co ■**< CO CO CfJ CN co —l CO CN t-C-T rH*" rH UD O co co ■ co en co-* ** w to r-i in fc- o oo © HO i-H rH fc-CO COCO O OS CO O CO O CO "# OS io c»a cc *H rH tH tH rH rH r-i rH *S HOI Hi}t t- O 'id rH -rfl rH iO ' OS ■* -«fl ■ § O CO •* CO O OS ■ O CN 00 IOH "dH tO ' 'Cfl WOO COO CO -sH t- CO rH OJ^-l«3 H COO OCO W rH -**,CNtH fc- fc- © q CN rH CO CO COCO OS OS o - IC rH O IO COO OCO OCM H) T- H rH rH _» OSiH OSO fc- co ■S „ H r-i iH rH rHrH Ol CO ■ . O iO COOS OO . CN CO • ... „ 00 CO • • CO O CO tH rtf 00 ■ riCC • * ■ ' g fc- CM t- rH Ol «tf OH rH f_< c_} ** ""__*•" __* Cv CO rH CN rH CM " CN -O rH CO w : : : : :°° . . . . a : :: : : :: : « oo M S p "' OT S3 « "B .fl oo fl o g « 43 X ... . .cj * . -»a • G> . S3 3 . • cl • tXI « * & .s g 3 § .2 cS S ~ ? q|SS|S * . • § :-I -1 . : §g « :s : * I L-a •§ g la's I--S 1: I : iff s : 3| 1 tH 5 rH -Itl j' _ rH-r rr»_e3rH O O _ O X «e8 _. ,S tS OOP W«° _ el) gtD.-tti-S 0 o I ! 11l - _ 5-s-s l|-3 Is §1 gg I |.s. g ij Si! 3 £ g> i-S- S«S mo oS oo "o tja !> o S S W h=">S m 2-h M 4 J Saeija«o,- 1 Oh © SJH» flO'ta IsO* a O*& rtC3 CD rJCO© fcH C 3 c? oO •§ So -|_< bot pq cuPh J osfflJ Ph <! 13 fa W , — P <a • oo o Z r< 1> rH H ■" . OH O W -- co rH t-H _ ~C> OrH TH _! . S _ £2 N tj -I com ►- !» S 00* t-" ■«" f* •§ oh eg r5 g 1 rjfflOO S HJOO _> HtDO a hiSi>hj t-h - - - OJ fc- rH to o I ::: = S3 _• • ■ I ::: : HHt _ rO S S O ■8 -S :g-g § ro »S O <o < riJ ■«? 43 _* •«> "_; co 55 -» .S «% "So =£s 1 rQ a O 43 no oQ co o « oo o P^ xi ,2.2.2 i V 3 "hS * V htl o ci 000 a 5 p-,0.0_ 3 •13 O O O »-3 « P-i Ph Pn W

a—3b

9

Point Elizabeth Colliery Profit and Loss Account for the Year ended 31st March, 1905. Dr. Cr. £ s. d. £ s. d. To Coal-winning— £s.d.£s. d. By Sales of coal .. .. .. .. .. ■- 84,771 8 4 Wages .. .. .. .. .. .. 21,702 18 2 Stock at mine .. .. .. .. .. 603 0 0 Materials used .. .. .. .. .. 622 0 6 Stock at wharf and afloat .. .. .. .. 502 0 5 Stores .. .. .. .. .. .. 1,152 17 0 1,105 0 5 23,477 15 8 Timber account .. .. .. .. .. .. 144 13 10 Management and office salaries .. .. .. 1,083 19 8 Discounts .. .. .. .. .. 13 2 9 Rents .. .. .. .. .. .. 98 18 9 Royalties .. .. .. .. .. .. 188 17 6 Interest and exchanges .. .. .. .. 2,616 0 5 Travelling-expenses .. .. .. .. .. 278 7 5 Printing and stationery .. .. .. .. 94 0 3 Postages and telegrams .. .. .. .. 113 18 4 Repairs and maintenance .. .. .. .. 147 3 0 Railway haulage .. .. .. .. .. 7,110 410 Insurances .. .. .. .. .. .. 184 1 5 Compensation for accidents and fund.. .. .. 164 11 3 General expenses .. .. .. .. .. 283 5 2 Marine freights .. .. .. .. .. 28,892 3 6 41,255 11 6 Depreciation property and plant .. .. .. .. 3,934 3 4 Depreciation office furniture .. .. .. .. 15 3 0 Balanoe .. .. .. .. .. .. .. 17,351 11 10 £86,034 5 4 £86,034 5 4 The foregoing is the balance-sheet and statements of accounts drawn up as required by the Audit Office, in accordance with section 14 of " The State Coalmines Act, 1901." Jas. McGowan, Minister of Mines. State Coal-mines Office, Greymouth, 19th July, 1905. Louis H. Eileks, Accountant. Examined and found correct— J. K. Wabbubton, Controller and Auditor-General.

2—C. 3b.

C—3b

10

Balance-sheet of the New Zealand State Coal-mines. Statement of Liabilities and Assets at 31st March, 1905. Liabilities. £ s. d. £ s. d. Assets. £ s. d. £ s. d. Debenture loan .. .. .. ..140,000 1 0 Point Elizabeth Colliery and Development Property AccountSundry creditors .. .. .. .. 9,979 13 6 Cost at 31st March, 1904 .. .. .. .. .. .. 16,908 5 6 Accrued interest .. .. .. .. 2,450 0 0 Additional outlay during the year .. .. .. .. .. 1,517 19 10 152,429 13 6 18,426 5 4 General Profit and Loss Account— Machinery, plant, ropes, and rolling-stock— Net profits for the year ended 31st March, Cost at 31st March, 1904 .. .. .. .. £10,147 12 0 1905 .. .. .. .. 11,242 10 10 Additional outlay during the year .. .. .. 8,457 11 1 Leps debtor balanoe year ended 31st March, 1904 .. .. .. 882 6 1 18,605 3 1 10,360 4 9 Buildings at mineCost at 31st March, 1904 .. .. £1,146 0 0 Additions during year .. .. 864 5 3 2,010 5 3 Cottages .. .. .. .. .. .. 300 0 0 20,915 8 4 39,341 13 8 Less depreciation 10 per cent. .. .. .. .. .. 3,934 3 4 35,407 10 4 Stores (stock on hand) .. .. .. .. 785 9 0 Coal (stock on hand at mine) .. £603 0 0 Coal (stock on hand at wharf and afloat) 502 0 5 1,105 0 5 1,890 9 5 37,297 19 9 Seddonville Colliery and Development Property Account— Cost at 31st March, 1904 .. .. .. .. .. .. 9,293 13 3 Additional outlay during the year .. .. .. .. .. 3,357 12 5 12,651 5 8 Machinery, plant, ropes, and rolling-stock, cost at 31st March, 1904 .. .. .. .. .. £13,698 8 8 Additional outlay during the year .. .. .. 1,584 14 3 15,283 2 11 Buildings at mine .. .. .. .. .. 590 0 0 Cottages at mine .. .. .. .. .. 360 0 0 16,233 2 11 28,884 8 7 Less depreciation, 10 per cent. .. .. .. .. .. 2,888 810 25,995 19 9 Stores (stock on hand) .. .. .. .. 270 9 4 Coal (stock on hand at mine) .. £97 17 0 Coal (stock on hand at wharf and afloat) 546 18 9 644 15 9 915 5 1 26,911 4 10

11

a—3b

Point Elizabeth Railway Property Account— Cost at 31st March, 1904 .. .. £52,986 4 8 Additional outlay during the year .. 11,419 11 10 64,405 16 6 Transferred by Public Works Deparment 62,540 11 10 Sale of gravel .. .. .. 180 18 3 62,721 10 1 Balance owing by Public Works Department .. .. 1,684 6 5 .. 1,684 6 5 Hulks Property Acoount— Cost .. .. .. .. .. .. 2,600 0 0 Less depreciation, 10 per cent. .. .. .. .. .. 260 0 0 2,340 0 0 Greymouth Office Furniture Account.. .. .. .. .. .. 225 14 11 Wellington „.. .. .. .. .. .. 77 6 5 303 1 4 Less depreciation, 10 per cent. .. .. .. .. .. 30 6 1 272 15 3 Sundry debtors .. .. .. .. .. .. .. .. .. 3,748 17 0 Cash inlhand and in the Publio Account at 31st March, 1905 .. .. 97,949 4 10 Less vouchers (outstanding) .. .. .. .. .. .. 7,414 9 10 90,534 15 0 £162,789 18 3 £162,789 18 3

C—3b

12

Statement of General Profit and Loss Account for the Year ended 31st March, 1905. Dr. Cr. To Point Elizabeth Colliery— £ s. d. £ s. d. £ s. d. £ a. d. Management and office salaries .. .. .. 1,083 19 BBy Point Elizabeth Colliery Working Account: Gross profits 62,543 611 Rents .. .. .. .. .. .. 98 18 9 Seddonville Colliery Working Account: Gross profits .. 15,485 0 6 Royalties .. .. .. .. .. .. 188 17 6 78,028 7 5 Interest and exchange .. .. .. .. 2,616 0 5 Discounts .. .. .. .. .. .. .. 13 2 9 Travelling expenses .. .. .. .. .. 278 7 5 Printing and stationery .. .. .. .. 94 0 3 Postages and telegrams .. .. ' .. .. 113 18 4 Repairs and maintenance .. .. .. .. 147 3 0 Rail-way-haulage .. .. .. .. .. 7,110 410 Insurances .. .. .. .. .. .. 184 1 5 Compensation for accidents and fund .. .. .. 164 11 3 General expenses .. .. .. .. .. 283 5 2 Marine freights .. .. .. .. 28,892 3 6 Deoreciation : mine, buildings, plant, and machinery .. 3,934 3 4 45,189 14 10 Seddonville Colliery— Management and office salaries .. .. .. 1,083 19 9 Rents .. .. .. .. .. .. 83 18 9 Royalties .. .. .. .. .. .. 99 18 0 Interest and exchange .. .. .. .. 1,962 0 5 Travelling-expenses .. .. .. .. .. 278 7 6 Printing and stationery .. .. .. .. 94 0 3 Postages and telegrams .. .. .. .. 113 18 5. Repairs and maintenance .. .. .. .. 39 14 10 Railway- haulage .. .. .. .. .. 6,081 9 2 Insurances .. .. .. .. .. .. 113 6 8 Compensation for accidents and fund .. .. .. 35 15 5 General expenses .. .. .. .. .. 116 4 0 Marine freights .. .. .. .. .. 7,313 6 9 Hulks' Working Account .. .. .. .. 1,014 9 8 Hulks' Depreciation Account .. .. .. 260 0 0 Depreciation: mine, buildings, plant, and maohinery .. 2,888 8 10 ■ 21,578 18 5 Greymouth and Wellington office furniture acoount depreciation .. .. .. .. .. .. .. 30 6 1 Balance net profits for the year .. .. .. 11,242 10 10 £78,041 10 2 £78,041 10 2

13

C—3b

Statement of Point Elizabeth Colliery Working Account for the Year ended 31st March, 1905. Dr. Or. £ a. d. £ s. d. To Coal-winning— £s.d.£s. d. By Sales of coal .. .. .. .. .. .. 84,771 8 4 Wages .. .. .. .. .. .. 21,702 18 2 Stock of coal on handMaterials used .. .. .. .. .. 622 0 6 At mine .. .. .. .. .. 603 0 0 Stores used.. .. .. .. .. .. 1,152 17 OAt wharf and afloat .. .. .. .. 502 0 5 23,477 15 8 1,105 0 5 Balance gross profits at mine .. .. .. .. .. 62,543 6 11 Timber acoount .. .. .. .. .. .. 144 13 10 £86,021 2 7 £86,021 2 7 Statement of Point Elizabelh Colliery Profit and Loss Account for the Year ended 31st March, 1905. Dr. £ s. d. £ s. d. Cr. £ s. d. To Management and office salaries .. .. .. 1,083 19 8 By Balance of Working Acoount: Gross profits at mine .. .. .. 62,543 6 11 Rents .. .. .. .. .. .. 98 18 9 Royalties .. .. .. .. .. .. 188 17 6 Interest and exchange .. .. .. .. .. 2,616 0 5 Travelling-expenses .. .. .. .. .. 278 7 5 Printing and stationery .. .. .. .. 94 0 3 Stamps and telegrams .. .. .. .. 113 18 4 Repairs and maintenance .. .. .. .. 147 3 0 Railway haulage .. .. .. .. .. 7,110 4 10 Insurances .. .. .. .. .. .. 184 1 5 Compensation for accidents and fund .. .. .. 164 11 3 General expenses .. .. .. .. .. 283 5 2 Marine freights .. .. .. .. .. 28,892 3 6 Depreciation : mine, buildings, plant, and machinery .. 3,934 3 4 45,189 14 10 Balance: Net profits for the year .. .. 17,353 12 1 £62,543 6 11 £62,543 6 11 Statement of Seddonville Colliery Working Account for the Year ended 31st March, 1905. Dr. £ s. d. £ s. d. Cr. £ s. d. £ s. d To Stock of coal on hand at 31st March, 1904 .. .. .. 221 7 6 By Sales of coal .. .. .. .. .. .. 25,756 10 2 Coal-winning— Stock of coal on hand— Wages .. .. .. .. .. .. 9,673 12 At mine .. .. .. .. .. .. 97 17 0 Materials used .. .. .. .. .. 530 10 7 At wharf and afloat .. .. .. .. 546 18 9 Stores used .. .. .. .. .. 491 6 2 644 15 9 10,694 17 11 Balance: Gross profits at mine .. .. 15,485 0 6 £26,401 5 11 £26,401 5 11

a—3b

14

Statement of Seddonville Colliery Profit and Loss Account for the Year ended 31st March, 1905. Dr £ s. d. £ s. d. Cr. & »• d. To Management and office salaries 1,083 19 9 : By Balance of Working Account: Gross profits at mine 15,485 0 6 Rents.. .. .. .. .. .. •• 83 18 9 Balanoe: Loss .. .. •• •• •• •• •• 6,093 17 11 Royalties .. .. .. .. .. ■• 99 18 0 Interest and exchange .. .. .. .. .. 1,962 0 5 Travelling-expenses .. .. .. .. • • 278 7 6 Printing and stationery .. .. .. .. •. 94 0 3 Stamps and telegrams .. .. .. .. .. 113 18 5 Repairs and maintenance .. .. .. .. 39 14 10 Railway haulage .. .. .. .. •• 6,081 9 2 Insurances .. .. .. .. .. .• 113 6 8 Compensation for accidents and fund .. .. . -3515 5 General expenses .. .. .. .. • • 116 4 0 Marine freights .. .. .. .. . • 7,313 6 9 Hulks Working Account .. .... 1,014 9 8 Hulks depreciation .. .. .. .. .. 260 0 0 Depreciation: Mine, buildings, plant, and machinery .. 2,888 8 10 21,578 18 5 . 18 5 £21,578 18 5

C—3b

Statement of the Receipts and Expenditure of the State Coal-mines Account for the Year ended 31st March, 1905. Dr. Receipts. £ s. d. £ s. d. Cr. Expenditure. £ s. d. £ s. d. To Cash in hand and in Public Aocount at 81st By Point Elizabeth Colliery— March, 1904 .. .. .. 1,838 6 9 Property and development .. .. .. .. 3,482 11 8 Sales of coal, Point Elizabeth 83,539 12 6 Machinery, plant, and rolling-stock .. .. .. .. 6,692 1 4 Sales of coal, Seddonville 25,076 8 8 Buildings .. .. .. .. .. .. 432 9 10 108,616 1 2 Materials and stores .. .. .. .. 4,089 3 5 Debentures issued .. 33,000 0 0 Wages .. .. ... .. 20,501 6 9 Transfer of railway .. 62,540 1110 Wharfage, &c. (Wellington) .. 130 17 3 Recoveries 6,008 19 1 35,828 10 8 101,549 10 11 Railway construction .. .. .. .. 11,906 14 9 Seddonville CollieryProperty and development .. .. 3,100 11 11 Machinery, plant, and rolling-stook .. .. .. 1,411 4 9 Materials and stores .. .. .. 1,319 8 9 Wages .. .. .. .. .. .. .. 9.782 15 8 15,614 0 3 HulksProperty aooount .. .. .. .. .. .. 2,600 0 0 Working acoount .. .. .. .. .. 742 9 9 8,848 9 9 Greymouth office furniture .. .. .. .. .. 166 6 8 Wellington „.. .. .. .. 77 6 5 Management and offioe salaries .. .. .. .. 2,162 1 1 Rent .. .. .. .. .. .. 142 5 0 Royalties .. .. .. .. .. .. .. .. 197 19 9 Interest and exchange .. .. .. .. .. 3,786 9 3 Freights .. .. 31,469 19 1 Travelling-expenses .. .. .. .. .. .. 574 7 2 Printing and stationery .. .. .. ». .. .. .. 175 4 8 Postages and telegrams .. .. .. • .. .. 227 16 9 Repairs and maintenance .. 232 12 11 Haulage .. .. .. .. .. .. .. 14,760 0 6 Insurances .. .. .. .. .. .. .. 241 16 2 Compensation for accidents 189 3 3 General expenses .. .. .. .. .. .. 270 1 9 Refunds (overpayments) .. .. .. .. .. 113 18 5 : 54,777 8 5 Cash in hand and in Public Account at 81st Maroh, 19C5 .. 97,949 4 10 Less vouchers passed outstanding 7,4149 10 90,534 15 0 £211,503 18 10 £211,503 18 10 State Coal-mines Office, Greymouth, 19ch July, 1905. Jas. MoGowan Louis H. Eilers, Accountant. Minister of Mines. P. Heyes, f.s.a.a. Eng., Inspecting Accountant.

15

€.—3b

16

REMARKS ON THE STATE COAL-MINE ACCOUNTS.

The capital outlay on the Point Elizabeth Colliery is ... ... ... £37,279 19s. 9d. The capital outlay on the Seddonville Colliery is ... .. ... £26,911 4s. lOd. On the general Profit and Loss Account—that is, the result of operations of both mines conjointly, the net profits are ... ... ... £11,242 10s. lOd. This equals a return of 8 per cent, on the debenture capital employed, after allowing for full depreciation and all expenses. The Point Elizabeth Colliery Profit and Loss Account shows net profits ... £17,353 12s. Id. The Seddonville Profit and Loss Account shows a loss ... ... ... £6,093 17s. lid. after allowing for full depreciation and all expenses. The net profits realised on Point Elizabeth Colliery over all expenses equals 3s. 9d. per ton on the coal sold. The net profits realised on the entire operations of both mines over all expenses equals Is. Id. per ton on the coal sold. The sales realised an average return — On the coal from Point Elizabeth Colliery, of ... ... ... 18s. 6d. per ton. On the coal from Seddonville Colliery, of ... ... ... 13s. 3d. per ton. The cost of coal-winning —that is, in the binns— At Point Elizabeth Colliery ... ... £62,543 6s. lid., equal to ss. a ton. At Seddonville Colliery ... ... ... £10,694 17s. lid., equal to ss. 4d. a ton. P. Heyes, F.S.A.A. Eng., Inspecting Accountant. Approximate Cost of Paper— Preparation, not given; printing (2,360 copiest, ;611 3s.

By Authority : John Mackay, Government Printer, Wellington.—l9os. Price, tjrf.]

C.-33.

NEW ZEALAND STATE COAL-MINES James Bishop M.I.M.E. Manager PLAN OF THE POINT ELIZABETH COLLIERY

a-3 b

NEW ZEALAND STATE COAL-MINES. James Bishop. M.I.M.E. Manager. POINT ELIZABETH COLLIERY.

C._3b

PLAN OF THE SEDDONVILLE COLLIERY.

C.-3B

SEDDONVILLE COLLIERY. LONGITUDINAL SECTIONS OF COAL OUTCROPS.