STATE COAL-MINES (REPORTS ON THE WORKING OF) FOR THE YEAR ENDED 31st MARCH, 1917.

Appendix to the Journals of the House of Representatives, 1917 Session I, C-02a

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1917. NEW ZEALAND.

STATE COAL-MINES (REPORTS ON THE WORKING OF) FOR THE YEAR ENDED 31st MARCH, 1917.

Prepared in accordance with the requirements of Section 118 of the Goal-mines Act, 1908.

The Manager, State Coal-mines, Greymouth, to the Under-Secretary, Mines Department, Wellington. Sir, — State Coal-mines, Greymouth, 6-th June, 1917. I have the honour to submit my annual report on the work done at the State collieries for the year ended 31st March, 191.7. Point Elizabeth Colliery. Coal-winning. The gross total output for the year was 132,769 tons 1.0wt., a decrease of over 1,000-tons when compared with the previous year's figures, and after deducting mine consumption there remained for disposal 125,030 tons. The gross total output won from this mine since its inception in June, 1904, amounts to 2,213,456 tons. The colliery worked on 256 days for the year, making an average of 4/92 per week. The difference between time worked and the possible working-time is accounted for as follows : raySaturdays, 27; union holidays, 15; want of .shipping, 5; bar unworkable, 3; flood in river, I; slip on Greymouth—Runanga Railway, 2; fire in No. 2 Section, 2; and cavil, 2. The average numbers of men and boys employed in and about the mine were as follow : Underground—Coal-hewers, 76; deputies, shiftmen, and truckers, 75; boys, 2. Surface, 44 men and 14 boys : making a total of 195 men and 16 boys. The total payments made on wages account, exclusive of stores, compensation, and minetimber, amounted to .£38,551 13s. 2d. The coal-hewers' average daily earnings (gross) was 20s. 3'03d., and the net average daily return to each man 19s. 6'2Bd. Underground Development. No new developments have taken place in connection with this colliery. The whole of the output was obtained from coal won from pillar-extr action. On the west side of the main dip haulage-road of the No. 2 section, where a series of pillars underlies, the main entrance tunnel, these pillars could not be taken out entirely, but merely split, and small stumps or pillars left to protect the haulage-road above. The same method had to be adopted in the rise workings of the same section to prevent two small creeks from breaking through into the mine. During the year several attempts were made to reopen the fire area in the No. 2 section with the object of extracting some of the pillars which yvcre sealed off. It was thought that after the water had been allowed to rise up to the main dip "haulage-road several chains above the level where the fire originally occurred the fire would be extinguished, but it was found in a short time after holing was effected that the fire had spread practically over the whole of the area, thus rendering it impossible to win any of the coal. The whole of the fire area is now under water, and as all the adjoining pillars have been extracted, the coal lost through this cause will not warrant the cost of unwatering. Surface Works. The whole of the surface plant, machinery, and buildings have been maintained in good order and condition. Liverpool Colliery. Goal-winning. The gross total output for the year was 133,012 tons 18 cw-t., which, after allowing for mine consumption, left 127,780 tons I'm- disposal, and when compared with the figures of last year shows an increase of 19,526 lons. The gross total output, won from this colliery since April, 1913, amounts to 357,441 tons 14 cwt.

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The colliery worked on 262J days for the year, making an average of 504 days per week. The difference between time worked and the possible working-time is accounted for as follows : Pay-Saturdays, 27; union holidays, 16; want of shipping, 4; slips on railway, 3; cavil, day. The average numbers of men and boys employed in and about the mine were as follow : Underground —Coal-hewers, 104; deputies, shiftmen, and truckers, 85. On the surface, 43 men and 18 boys. In addition to those employed in connection with coal-winning there were employed on property and development-work 14 men and 1 boy, making a total of 246 men and 19 boys. The total payments made on wages account, in connection with coal-winning, exclusive of stores, compensation, and timber, amounted to £46,826 4s. 7d. The coal-hewers' average daily earnings (gross) were 19s. 0"42 d., and the net average daily return to each man was 17s. 4'66d. Underground Development. The output from this colliery was obtained from three mines—namely, Nos, I, 3, and 3a. In the No. 1 Mine good progress has been made with the development-work in a northerly direction, the coal Avon therefrom being ol' excellent quality and thickness, and the inclination of the seam is also not so great as to the south, thus making working-conditions much more favourable. The pinching-out line of the scam on the eastern side of the field does not appear to have altered its course, for when the workings have been driven a certain distance they have to he stopped owing to the thinning of the seam and the intrusion of stone bands. The Morgan seam, which is connected with No. 1 Mine, has only been worked intermittently during the year, the early part of which work was confined to making a connection for ventilation purposes. Since then, owing to shortage (if miners, and also through failure to arrive at a working agreement, little or no development-work has been done. Latterly three pairs of miners have been employed in the winning-places on day wages. The No. 3a Mine has been worked continuously throughout the year, but owing to the limited area, through the pinching-out of the seam in an eastern course and the coming-in of stone bands in a westerly course, the output has been small. The output from the No. 3 Mine, which is situated near the storage-bins, was obtained from coal won from solid and pillar workings. During the year a downthrow fault was encountered in the main level west, and with the object of proving the displacement a prospecting-drive was started and driven approximately three-quarters of a chain, but owing to an influx of water and to the strata at the face of the drive resembling the strata about 100 ft. above the seam, it was deemed advisable to slop this drive, as the small area between this fault and the other larger fault would not warrant the expenditure of continuing it. In the winning heading a downthrow fault was struck; the fault was driven through for a few yards and a hand-drilled hole put down. At about 10 ft. down the seam was struck, and drilling was continued, proving the seam to be over 10 ft. thick. Exploration. The work done in tin's connection during the year has been limited to surface examination in different parts of the reserve, and drilling of one hole with the diamond drilling plant, approximately 12 chains westward of No. 3,\ Mine. Two attempts were made to drill this hole to a suitable depth, but owing to the broken nature of the strata, evidently due to faulting, the hole was abandoned at 80 ft. Since the starting of this colliery eleven bores for prospecting purposes have been sunk, aggregating 3,371 ft. Accidents. A number of minor accidents occurred at these collieries during the year, but there was none of a serious nature. Surface Works. The whole of the plant, machinery, and buildings have been maintained in efficient workingorder, and during the year the following plant has been installed : (a) Self-acting endless-rope haulage to deal with the output from the steep workings at the No. 1 Mine; (b) an electrically driven endless-rope haulage to deal with the output from the "Morgan and Upper seams; (c) an electrically driven fan at the No. 3a Mine ; (d) fan and engine at the No. 3 Mine, situated near the bins; (c) self-acting endless-rope haulage at the No. 3 Mine; (/) the erection of ten workmen's huts, Manager and deputies' office at the No. 1 Mine, also the housing of the plant referred to in (b), (c), and (d). Change and Bath Houses. The change and bath house referred to in my last annual report was completed early in the year, and is giving entire satisfaction. During the year a change and bath house was erected for the men employed at the Upper section, on the same lines as the first mentioned, but on a much larger scale. In each bathhouse the showers are fitted with hot and cold water, so that the temperature of the water may be regulated to the satisfaction of the men washing therein. Shaet-sinkino at Charming Creek. In view of the near exhaustion of the Point Elizabeth Colliery, and with no other area of coal available for exploitation from the present mine-openings, the question was discussed as to what position the depots would be placed in with regard to coal when operations ceased at the Point Elizabeth Colliery. After carefully reviewing the situation it was decided that the coal in the Charming Creek area should be further tested. The field has been systematically bored, and a moderate area of coal proved, but in order thoroughly to test the'quality and

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hardness of the seam it was deemed advisable to sink at least two shafts. Sites were selected for two shafts, the distance separating them being 40 chains. These shafts have been sunk, and the seam in each found to be over 20 ft. thick of hard coal. Three samples of coal from the first shaft were forwarded to the Dominion Laboratory for analysis, au'd the following is an average of the three samples : — Fixed carbon ... ... ... ... ... 5514 Volatile hydrocarbons ... ... ... ... 4L89 Water... ... ... ... ... ... P6l Ash ... ... ... ... ... ... 1-36 100-00 Sulphur (per cent.), 504. From the analysis it will be seen that the sulphur is rather high, but when compared with the sulphur in other coals, such as Blackball, Millerton, and Wes-tport-Stockton, the percentage difference is not great. The chief drawback in the development of this field is the access into it. There are two ways or moans by which this area could be worked, viz. : (a) By constructing a railway from Ngakawau to the centre of Charming Creek valley and winning the coal by means of a shaft; (b) by constructing a long tunnel from Seddonville. Both schemes are costly, but the latter would probably be the cheaper, as the tunnel could also be made to act as a drainage adit, thus doing away with pumping, which would no doubt be required if the area, was worked by means of a shaft. However, before anything is done regarding the development of this area it will be necessary to have surveys made in order to enable an estimate of the undertaking to be arrived at. General. Although the output from the Liverpool Colliery shows an increase when compared with last year's figures and the output from Point Elizabeth shows a slight reduction, it must be pointed out that the output from each colliery would have been greater by over 10,000 tons had it not been for the miners adopting the go-slow policy during the months of November and December, 1916, and also during February and March of this year. It will also be noticed that exceptionally good time has been worked at the mines during the year. This is due largely to the Greymouth bar being workable practically every day throughout the year, thus enabling the steamers to arrive and depart with little or no delay. In conclusion, permit me to say that all the officers in the various branches have performed their duties in a most satisfactory manner, and the Consulting Engineer has in the course of his duties rendered good service. 1 have, &c, I. A. James, Manager. The Sales Manager, State Coal-mines, to the Under-Secretary, Mines Department, Wellington. Sir, — State Coal-mines, Wellington, 28th May, 1917. I have the honour to present the annual report and balance-sheet of the New Zealand State coal-mines for the year ended 31st March last. Financial. The net profit for the year, after making full provision for interest, depreciation, war bonus, and all annual charges, amounted to £18,521 ss. 9d., made up as follows : — £ s. d. Point Elizabeth Colliery (net profit) ... ... ... £18,016 15 1 Liverpool Colliery (net profit ) ... ... ... ... 254 10 3 Seddonville Colliery (recovery) ... ... ... ... 44 15 0 Depots (net profit) ... ... ... ... ... 205 5 5 £18,521 5 9 The profit earned represents a return of 528 per cent, on the gross capital expenditure to date, and is equal to 744 per cent, on the turnover. Turning to the financial results for the year, it will be noted that Point Elizabeth Colliery has made a profit of £18,016 15s. Id., as against £8,779 os. Id. for the corresponding period last year. The increase in profit at this mine has therefore been substantial, but is partly due to the decreased amount charged as depreciation as compared with former years, and to the cessation of expenditure on development-work in view of the approaching exhaustion of the mine. The assets of this colliery have now been written down to such an extent that no further provision for depreciation is necessary. The present book value of the valuable plant and machinery at the mine, together with the buildings and workmen's cottages, is only £1,486 — a purely nominal value. The Liverpool Colliery returned a net profit of £254 10s. 3d., as against a loss of £10,118 12s. last year. While the figures indicate a good recovery, the result is disappointing in view of the tonnage produced and the large capital expenditure (£172,068) on which interest has to be earned. In order to place this colliery on a sound footing it is imperative that the present f.o.b. rates for coal should be increased to such an extent as to provide a reasonable net profit on the undertaking and to permit a sufficient sum to be set aside annually as a sinking

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fund for the redemption of the debenture and loan capital. It must not be overlooked that Point Elizabeth Colliery is rapidly approaching the exhaustion stage, and when it ceases operations the whole of the interest charge, at present apportioned between the two mines, will have to be borne by Liverpool. In respect to the depots, the result in the aggregate has been a net profit of £205 ss. 5d.; Wellington and Wanganui show a loss on the year's operations, while Christchurch (owing to a large ex-steamer trade) and Dunedin show a profit. In regard to the Wellington depot, extensive repairs and alterations to the depot buildings were carried out during the year, the cost being included in working-expenses, which has also borne the cost of other special expenditure of a non-recurrent nature. During the year the working-expenses of the depots, in common yvith all other trading concerns, were considerably increased by the advance in wages and the increased cost of cartage, supplies, and repairs. The policy adopted some two years ago of placing large contract orders -through the depots was discontinued during the financial year, and the present policy is to restrict the depots to a legitimate retail trade in each centre. The margin of profit on large wholesale orders is the explanation of the relatively large profits that the depots have been showing for the past two years. In view of the withdrawal of this business and the increased operating expenses already referred to, I am of the opinion that the retail prices of coal sold through ■the depots should be increased with a view of enabling each depot to show a reasonable margin of profit over working-expenses and to provide for contingencies. Output. The gross output of the mines for the year was 265,782 tons, as compared with 249,839 tons for the corresponding period last year, being an increase for the year of 15,943 tons. A comparative statement for the two years is shown in the following table : —

Note. —The difference between the gross and net output is the allowance made for mine consumption and w r as-te. Point Elizabeth Colliery produced 125,030 tons of marketable coal, a decrease of 970 tons on last year's figures. After allowing for stocks on hand and afloat at the beginning and end of the year the disposal was as under : —

Liverpool Colliery produced 127,780 tons of marketable coal, an increase of 13,650 tons. The disposal was as follows : —

Output in Tons, 1916. Output in Tons, 1917. Mine. Gross. Net. Gross. Net. 'oint Elizabeth liverpool 134,102 115,737 126,000 114,130 r 132,769 125.030 133,013 127,780 265,782 252,810 Totals 249,839 240,130

Supplied to Soreened. Unscreened. Steam. I Small. Totals. Depots Railways Shipping companies Other Government Departments ... Other consumers Tons. 23,472 22,458 97 743 6,144 Tons. 11,664 3,604 4,153 61 4,282 Tons. 11 26,594 Tons. 13,739 7,169 52 2,906 Tons. 48,886 26,062 38,013 856 13,332 Totals 52,914 23,764 26,605 23,866 127,149

Supplied to Screened. Unscreened. Steam. Small. Totals. Depots Railways Shipping companies Gas companies Other Government Departments ... Other consumers Tons. 19,019 20,082 137 Tons. 1,986 4,670 3,396 8,416 Tons 6 11,733 Tons. 27,757 91 5,739 18,659 Tons 48,768 24,843 21,005 27,075 456 7,262 456 865 'l61 6,236 Totals 40,559 18,629 11,739 58,482 129,409 The total sales for the year coi 241,022 tons, value .£201,564,' for las and in value £47,253. mprised 25 it year, an 6,558 tons, value £24; increase for the year ir ,817, as quantity iompared with )f 15,536 tons,

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For the purpose of easy comparison the figures are restated below in tabulated form.

Comparative Statement of Sales.

The average price per ton realized on the total sales was 19s. 4'76d., an increase of 2s. B'osd. on last year's figures. The sales of coal through the medium of the depots totalled 103,269 tons, value £141,606. The demand for coal of every grade was exceptional throughout the year, and some difficulty was experienced in meeting requirements, especially during the closing months of the year, when the output was seriously restricted. But for this restriction a much larger tonnage would have been available for disposal, with a consequent decrease in the cost of production and a corresponding increase in profit. It is gratifying to record that gas companies throughout the Dominion speak in the highest terms of praise in respect to the gas-producing qualities of Liverpool small coal, and the demand for this grade of coal at present exceeds the available supply. In connection with the transport of coal it may be mentioned that the arrangements made by our contractors for the sea carriage of State coal were of a very satisfactory nature notwithstanding the abnormal conditions prevailing in shipping circles. The cost of production at Point Elizabeth shows an increase of B'26d. per ton, and at Liverpool of 7'56d. pet- ton, over last year's figures, due largely to the go-slow policy adopted by the miners. The report of the Manager of the collieries gives full information in respect to the working of each mine and other details relative thereto. The following items taken from the balance-sheet are of interest as indicating the scope of operations and for reference in respect to the present position of the Capital Account, reserve funds, and other accounts shown therein : £ The total amount paid as war bonus was ... ... ... ... 9,239 The amount written off for depreciation for the year was ... ... 12,229 The payments for interest totalled ... ... ... ... 8,715 The payments for sea carriage of coal amounted to ... ... 71,1.20 The cost of railway haulage amounted to ... ... ... 26,655 The total wages paid for coal-winning was ... ... ... 77,751 The amount paid for management and office salaries (Head Office and mines) totalled ... ... ... ... ... ... 2,477 The gross capital expenditure on the whole undertakings to 31st March last was ... ... ... ... ... ... 350,712 The total depreciation written off to date amounts to ... ... 187,798 (equal to 5354 per cent, on the gross capital expenditure as above) The debenture and loan capital stands at ..'. ... ... 227,601 The sinking fund is in credit ... ... ... ... ... 13,200 The reserve fund stands at ... ... ... ... ... 5,884 The amount at debit of Profit and Loss Account is ... ... ... 16,424 (last year, £34,946) The cash in hand and in Public Account at 31st March last was ... 68,018 (last year, £34,751) The present net book value of permanent or fixed assets (exclusive of floating assets) is ... ... ... ... ... ... 157,123 In conclusion, I have to acknowledge the services of the Accountant, Depot Managers, and staffs for loyal and efficient co-operation in the conduct of the business under sometimes difficult and trying circumstances. I have, &c, F. J. Gunn, Sales Manager.

Mine. Total Sales for 1916. Quantity. Vt Total Sales : for 1917. Value. Value. Quantity. Point Elizabeth Liverpool Totals Tons. cwt. qr. £ 125,519 7 0 104,53 115,502 19 3 97,02 241,022 6 S 201,56 £ s. 104,537 1.6 97,025 14 d. 4 8 Tons. cwt. qr. 127,149 4 1 129,408 13 2 £ s. d. 120,542 6 4 128,274 16 6 201,563 IL 0 256,557 17 3 248,817 2 10

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Balance-sheet of the New Zealand State Coal-mines. Statement of Liabilities and Assets at 31st March, 1917. Liabilities. Assets. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Debenture loan .. .. .. .. 175,000 0 0 Point Elizabeth Colliery and Development Property Account — Loan under Appropriation Act, 1912 .. .. 50,000 0 0 Expended during year .. .. .. .. 300 9 6 Inscribed stock .. .. .. '.. 2,601 0 7 Depreciation .. .. .. .. .. 300 9 6 227,601 0 7 Machinery, olant, rope-, and rolling-stock— Debenture sinking fund .. .. .. 13,200 0 0 Cost at 31st March, 1916 .. •• •• •• 1,827 15 9 Reservefund .. .. .. .. 5,884 11 2 Less sales.. .. .. .. .. .. 341 15 9 19,084 11 2 1,486 0 0 Buildings at mme— Accrued interest .. .. .. .. .. 4,357 4 6 Cost at 31st March, 1916 .. .. .. .. 1,063 111 Sundry creditors .. .. .. .. 17,905 11 5 Depreciation .. .. .. .. .. 1,063 111 War Bonus .. .. .. .. 9,238 15 8 27,144 7 1 CottagesCost at 31st March, 1916 .. .. .. .. 1,259 10 4 Less sales .. .. .. .. .. .. 076 1,259 2 10 Depreciation .. .. .. .. .. 1,259 210 Stores (stock on hand) .. .. .. .. .. 6,566 14 5 Coal (stock on hand at mine and wharf) .. .. .. 11l 5 0 Coal (stock on hand, afloat) .. .. .. .. 1,013 11 5 7,691 10 10 9,177 10 r Point Elizabeth (Liverpool) Colliery and Development Property Account— Cost at 31st March. 1916 .. .. .. .. 94,616 8 2 Additions during the year .. .. .. .. 1,643 19 10 96,260 8 0 Depreciation .. .. .. .. .. 5,441 5 8 90,819 2 4 Machinery, plant, ropes, and rolling stock— Cost at 31st March, 1916 .. .. .. .. 47,319 11 7 Additions during the year .. .. .. .. 780 10 0 48,100 1 7 Depreciation .. .. .. .. .. 2,753 10 7 45,346 11 0 Buildings at mme— Cost at 31st March, 1916 .. .. .. .. 3,733 17 6 Additions during the year .. .. .. .. 964 0 8 4,697 18 2 Depreciation .. .. .. .. .. 256 9 8 4,441 8 6 Cottages at mine .. .. .. .. .. 3.348 7 8 Additions .. .. .. .. .. 459 5 6 3,807 13 2 Depreciation .. .. .. .. .. 152 111 3,655 11 3 Coal (stock on hand at mine and wharf) .. .. .. 695 17 6 Coal (stock on hand, afloat) .. .. .. .. 1,085 3 11 1,781 1 5 146,043 14 Charming Creek Development— Expended during year .. .. .. .. .. 1,562 17 4

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Balance-sheet of the New Zealand State Coal-mines— continued. Statement of Liabilities and Assets at Slst March, 1917 — continued. Liabilities— continued. Assets — continued. £ s. d. £ s. d, £ s. d. £ s. d. Hulkß Property Account— Cost at 31st March, 1916 .. .. .. .. 596 15 9 Depreciation .. .. .. .. .. .. 119 3 6 477 12 3 Wellington Depot Property Account— Cost at 31st March, 1916 .. .. .. .. 3,268 7 10 Less sales .. .. .. .. .. .. 31 5 6 3,237 2 4 Depreciation .. .. .. .. .. 292 16 0 2,944 6 4 Stocks on hand .. .. .. .. .. 213 4 1 3,157 10 5 Christchurch Depot Property Account— Costat3lst March, 1916.. .. .. .. .. 4,258 18 11 Additions during the year .. .. .. .. 200 16 0 4,459 14 11 Depreciation .. .. .. .. .. .. 374 14 11 4,085 0 0 Stocks on hand .. .. .. .. .. .. .. 1,175 18 8 5,260 18 8 Wanganui Depot Property Account— Cost at 31st March, 1916 .. .. .. .. .. 1,671 19 7 Additions during the year.. .. .. .. .. 135 3 6 1,807 3 1 Depreciation .. .. .. .. .. .. 130 14 0 1,676 9 1 Stocks on hand .. .. .. .. .. .. 578 0 9 . 2,254 9 10 Dunedin Depot Property Account — Cost at 31st March, 1916 .. .. .. .. .. 713 16 10 Depreciation .. .. .. .. .. .. 85 8 0 628 8 10 Stocks on hand .. .. .. .. .. .. .. 954 17 1 1,583 5 11 Sundry debtors .. .. .. .. .. .. .. 22,645 17 2 Suspense Account, cremiums. deposits, &c. .. .. .. .. 580 17 1 Loan Flotation (Balance) .. .. .. .. .. .. 1,000 0 0 24,226 14 3 Cash in hand and in Public Account on 31st March, 1917 .. .. 68,124 19 6 Less vouchers outstanding .. .. .. .. .. 106 17 8 ■- 68,018 1 10 General Profit and Loss Account— Dr. balance at 31st March, 1916 .. .. .. .. .. 34,945 13 3 Less profit for year .. .. .. .. .. .. 18,521 5 9 16,424 7 6 £278,187 3 4 £278,187 3 4 State Goal-mines Office, Wellington, 24th May, 1917. . W. D. S. Mac Donald, Louis H. Eilees, F.E.A., N.Z., Accountant. Minister of Mines. Examined and found correct.— Bobeet J. Collins, Controller and Auditor-General.

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Statement of General Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Gr. £ s. d. £ s. d. To Point Elizabeth Colliery Trade Expenses Account .. 55,070 14 5 By Point Elizabeth Colliery Working Account— Gross profit .. 72,974 7 0 Liverpool Colliery „ .. 75,255 16 9 Liverpool Colliery „ „ 75,173 2 0 Wellington Depot „ . ... 13,733 11 1 Wellington Depot Trading Account— Gross profit .. 13,102 11 6 Christchurch Depot „ „ .. 6,971 14 10 Christchurch Depot „ „ .. 7,941 15 6 Wanganui Depot . . .. 3,233 0 2 Wanganui Depot „ . .. 3,025 10 5 Dunedin Depot . „ .. 2,082 9 10 Dunedin Depot „ , .. 2,156 3 11 156,347 7 1 174,373 10 4 Seddonville bad debt .. .. .. .. .. .. 190 Seddonville Colliery recovery .. .. .. .. 46 4 0 Balance profit for year .. .. .. .. .. 18,521 5 9 Point Elizabeth Colliery rents .. .. .. .. 113 2 6 Liverpool . . .. .. .. .. 337 5 0 496 11 6 £174,870 1 10 £174,870 1 10 Balance down at 31st March, 1916 .. .. .. 34,945 13 3 Less profit for year .. .. .. .. .. 18,521 5 9 £16,424 7 6 Statement of Point Elizabeth Colliery Working Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ s. d. £ s. d. To Stock of coal on hand at 31st March, 1916 .. .. .. 2,340 17 10 By Sales of coal .. .. .. .. .. 120,542 6 4 Coal-winning— ■ Sales of timber .. .. .. .. .. 176 15 1 Wages .. .. .. .. .. .. 36,567 11 0 Sales of stores .. .. .. .. .. 2,788 2 0 Materials used .. .. .. .. .. 2,963 1 9 123,507 3 5 Stores used.. .. .. .. .. .. 1,507 17 3 Stock of coal on hand at 31st March, 1917— War bonus .. .. .. .. .. .. 3,839 12 9At mine and wharf .. .. .. .. 11l 5 0 44,878 2 9 Afloat .. .. .. .. .. .. 1,013 11 5 Timber cut .. .. .. .. .. .. 127 14 11 1,124 16 5 Stores sold .. .. .. .. .. .. 2,594 5 7 2,72-2 0 6 Special rate .. .. .. .. .. .. 1,024 19 3 Royalty .. .. .. .. .. .. 685 12 6 1,710 11 9 Balance: Gross profit at mine.. .. .. .. .. 72,974 7 0 £124,631 19 10 £124,631 19 10

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NEW ZEALAND STATE COLLIERIES Plan of the LIVERPOOL COLLIERY

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Statement of Point Elizabeth Colliery Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. j Cr. £ s. d. £ s. d. To Management and office salaries .. .. .. .. 1,286 05j By Balance of Working Aocount— Interest and exchange .. .. .. .. .. 2,949 7 4 Gross profits at mine .. .. .. .. 72,974 7 0 Travelling-expenses .. .. .. .. .. 133 17 8 Rents .. .. .. .. .. .. 113 2 6 Printing and stationery .. .. .. .. .. 89 13 10 _.__ 73,087 9 6 Repairs and maintenance .. .. .. .. 978 7 2 Telegrams and postages .. .. .. .. .. 75 14 10 Railway haulage ..' .. .. .. .. 12,261 2 0 Insurances .. .. .. .. .. .. 155 12 6 Compensation for accidents and fund .. .. .. 1,078 15 9 Cargo adjustments .......... 35 13 6 General expenses .. .. .. - .. .. 80 9 7 Marine freights .. .. .. .. 31,698 2 0 Hulks Working Account (proportion) .. .. .. 1,139 10 10 Terminal charges .. .. .. .. .. 188 13 5 Audit fees .. .. .. .. .. .. 13 6 0 Bad debts .. .. .. .. .. .. 29 9 3 Head Office alterations .. .. .. .. .. 133 17 1 War bonus .. .. .. .. .. .. 120 7 0 Depreciation: Mine, buildings, plant, and machinery .. 2,622 14 3 55,070 14 5 Balance profit .. .. .. .. .. .. .. 18,016 15 1 £73,087 9 6 £73,087 9 6 Statement of Point Elizabeth (Liverpool) Colliery Working Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ s. d. £ 8 . a. To Stocks on hand .. .. .. .. .. .. 3,027 9 0 By Sales of coal .. .. .. .. .. 128,274 16 6 To Coal-winning— Sales of timber .. .. .. .. .. 7 110 Wages .. .. .. .. .. .. 41,183 5 10 Sales of stores .. .. .. .. .. 151 10 0 Materials used .. .. .. .. .. 2,769 9 9 128,433 8 4 Stores used .. .. .. .. .. .. 2,235 18 5 Stock of coal on hand at 31st March, 1917— War bonus .. .. .. .. .. .. 4,524 14 5At mine and wharf .. .. .. .. 695 17 6 50,713 8 5 Afloat .. .. .. .. .. .. 1,085 3 11 Timber cut .. .. .. .. .. .. 417 4 1,781 1 5 Stores sold .. .. .. .. .. .. 151 10 0 156 7 4 Special rate .. .. .. .. .. .. .. 1,144 3 0 Balance: Gross profit .. .. .. .. .. .. 75,173 2 0 £130,214 9 9 £130,214 V 9

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Statement of Point Elizabeth (Liverpool) Colliery Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ s. d. £ s. d. To Management and office salaries .. .. ~ .. 1,!90 18 11 By Gross pre fits at mine .. .. .. .. .. 75,173 2 0 Interest and exchange .. .. .. .. .. 5,155 12 6 Rents .. .. .. .. .. .. .. 337 5 0 Travelling-expenses .. .. .. .. .. 144 2 6 75,510 7 0 Printing and stationery .. .. .. .. .. 67 19 3 Repairs and maintenance .. .. .. .. 1,127 15 5 Telegrams and postages.. .. .. .. .. 71 15 8 Railway haulage .. .. .. .. .. 14,393 8 10 Insurances .. .. .. .. .. .. 145 7 7 Compensation for accidents and fund .. .. .. 1,563 1 8 Cargo adjustments .. .. .. .. .. 31 16 6 General expenses .. .. .. .. .. 95 3 1 Marine freights .. .. .. .. .. 39,421 15 7 Hulks Working Account (proportion) .. ' . .. 241 5 5 Terminal charges .. .. .. .. .. 2,193 15 7 Audit fees .. .. .. .. .. .. 12 7 4 Head-office alterations .. .. .. .. .. 120 17 1 War bonuses .. .. .. .. .. .. 114 6 0 Loan-flotation charges .. .. .. .. .. 561 0 0 Depreciation: Mine, buildings, plant, and machinery .. 8,603 7 10 75,255 16 9 Balance: Net profit- .. .. .. .. .. .. 254 10 3 £75,510 7 0 £75,510 7 0 Wellington Depot Trading Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. ! Cr. £ s. d. £ s. d. To Stocks on band at 31st March, 1916 .. .. .. .. 2,240 99 By Sales of coal .. .. .. .. .. 62,65115 0 Purchases of coal .. .. .. '.. .. 45,641 0 4 Sales of firewood, coke, &c. .. .. .. .. 1,542 1 1 Purchases of firewood, coke, &c. .. .. .. 984 3 1 64,193 16 1 46,625 3 5 Stocks on hand at 31st March, 1917— Cartage to depot .. .. .. .. .. 1,024 18 7 Firewood, &c, .. .. .. .. .. .. 213 4 1 Wharfage .. .. .. .. .. .. 1,413 16 11 2,438 15 6 | Balance: Gross profits .. .. .. .. .. .. 13,102 11 6 £64,407 0 2 j £64,407 0 2

10

o.—2a.

Wellington Depot Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. - £ s. d. To Wages .. .. .. .. .. .. .. 4,466 17 2By Balance of Trading Account .. .. .. .. .. .. 13,102 11 6 Salaries .. .. .. .. .. .. .. 1,059 19 11 Balance: Loss .. .. .. .. .. .. . 630 19 7 Rents .. .. .. .. .. .. .. 798 0 0 Rates .. .. .. .. .. .. .. 148 4 8 Interest .. .. .. .. .. .. .. 177 S 6 Travelling-expenses and allowances .. .. .. 26 6 6 Repairs and maintenance .. .. .. .. .. 542 6 2 Telegrams and postages .. .. .. .. .. 54 11 11 Printing and stationery .. .. .. .. .. 186 9 4 Insurances .. .. .. .. .. .. 15 11 0 Cartage .. .. .. .. .. .. .. 4,884 7 4 Sacks .. .. .. .. .. .. .. 304 8 4 Freights, &c. .. .. .. .. .. .. 300 9 3 General expenses.. .. .. .. .. .. 95 911 Alterations .. .. .. .. .. .. 108 8 3 Audit fees .. .. .. .. .. .. 24 13 4 Bad debts written off .. .. .. .. .. 0 17 0 War bonuses .. .. .. .. .. .. 246 6 6 Depreciation .. .. .. .. .. .. 292 16 0 13,733 11 1 £13,733 11 1 • ' £137733 11 1 Christchurch Depot Trading Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ s d £ s d Xo Stocks on band, 31st March, 1916 .. .. .. .. .. 1,956 14 10 By Sales of coal .. .. .. .. .. .. 49,706 5 2 Purchases of coal.. .. .. .. .. .. 36,809 14 4 Sales of firewood, coke, &c. .. .. .. .. 1,174 11 7 Purchases of firewood, ooke, &c. .. .. .. .. 684 26 50 gBO 16 9 , 37,493 16 10 Stocks on hand at 31st March, 1917— Haulage to depot .. .. .. .. .. .. .. 4,664 8 3 Coal .. .. .. .. .. .. .. 746 14 6 Gross profit .. .. .. .. -.. .. .. 7,941 15 6 Firewood, coke, &c. .. .. .. .. .. 429 4 2 1,175 18 8 £52,056 15 5 £52,056 15 5

11

C—2a.

12

Christchurch Depot Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ c. d. To Wages .. .. .. .. .. .. .. 2,250 13 0 By Balance of Trading Account .. .. .. .. .. .. 7,94115 6 Salaries .. .. .. .. .. .. .. 896 17 8 Rents .. .. .. .. .. .. .. 90 11 5 Interest and exchange .. .. .. .. .. 221 12 8 Repairs and maintenance .. .. .. .. .. 152 7 6 Telegrams and postages .. .. .. .. .. 17 0 0 Printing and stationery .. .. .. .. .. 78 3 11 Insurances .. .. .. .. .. .. 11 16 6 Travelling-expenses .. .. .. .. .. 28 13 8 Cartage .. .. .. .. .. .. .. 2,233 18 2 Sacks .. .. .. .. .. .. .. 113 2 1 Freights .............. 238 6 9 General expenses .. .. .. .. .. - .. 57 13 8 Audit fees .. .. .. .. .. .. 33 0 0 War Bonuses .. .. .. .. .. .. 173 2 11 Depreciation .. .. ... .. .. .. 374 14 11 6,971 14 10 Balance: Net profit .. .. .. .. .. .. 970 0 8 £7,941 15 6 £7941, 15 6 Wanganui Depot Trading Account for the Year ended 31st March, 1917. Dr. £ «. d. £ s. d. Cr. £ s. d. £ s. d. To Stocks on hand at 31st March, 1916 .. .. .. .. 1,439 10 6 By Sales of coal .. .. .. .. .. .. 14,535 12 11 Purchases of coal .. .. .. .. .. 10,114 13 9 Sales of firewood, ooke, &c. .. .. .. .. 826 14 10 Purchases of firewood, coke, &o. .. .. .. 580 1 1 15,362 7 9 10,691 14 10 Stocks on hand at 31st March, 1917— . Haulage to depot .. .. .. .. .. .. 780 12 9 Coal .. .. .. .. .. .. 201 10 0 Grossprofit .. .. .. .. .. .. .. 3,025 10 5 Firewood, coke, &o. .. .. .. .. .. 376 10 9 578 0 9 £15,940 8 6 " £15,940 8 6

13

C—2a

Wanganui Depot Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ a. d. To Wages .. .. .. .. .. .. .. 720 15 IBy Balance of Trading Account .. .. .. .. •■ 3,025 10 5 Salaries.. .. .. .. .. .. .. 453 19 0 Balance : Loss.. .. .. .. .. .. •• •- 207 9 9 Rents .. .. .. .. .. .. .. 140 0 0 Interest and exchange .. .. .. .. .. 77 110 Repairs and maintenance .. .. .. .. 157 0 4 Telegrams and postages .. .. .. .. 15 610 Printing and stationery .. .. .. .. .. 56 1 6 Travelling-expenses .. .. .. .. .. 29 3 2 Insurance .. .. .. .. .. .. 610 8 Cartage .. .. .. .. .. .. .. 1,029 19 1 Sacks .. .. ..- .. .. .. .. 81 3 4 Freights, &c. .. .. .. .. .. .. 150 9 0 General expenses .. .. .. .. .. 63 5 5 Audit fees ............ 17 6 8 War bonuses .. .. .. .. .. .. 104 4 3 Depreciation .. .. .. .. .. .. 130 14 0 3,233 0 2 £3,233 0 2 £3,233 0 2 Dunedin Depot Trading Account for the Year ended 31st March, 1917. Dr. £ s. A. £ s. d. Cr. £ s. d. £ s. d. To Stocks on hand at 31st Maroh, 1916 .. .. .. .. 1,231 18■ By Sales of coal .. .. .. .. .. .. 15,305 16 11 Purchases of coal.. .. .. .. .. .. 11,308 6 5 Sales of firewood, coke," &c. .. .. .. .. 81 15 0 Purchases of firewood, coke, &c. .. .. .. .. 74 16 7 15,387 1111 11,383 3 0 Stocks on hand at 31st March, 1917— Wharfages, &c. .. .. .. .. .. .. 1,246 18 10 Coal .. .. .. .. .. .. 888 3 7 Cartage to depot .. .. .. .. .. .. 325 1 7 Firewood, coke, &o. .. .. .. .. .. 66 13 6 1,572 0 5 954 17 1 Balance: Gross profit .. .. .. .. .. .. 2,156 3 11 £16,342 9 0 £16,342 9 0 Dunedin Depot Profit and Loss Account for the Year ended 31st March, 1917. Dr. £ s. d. £ s. d. Cr. £ s. d. To Wages .. .. .. .. .. .. .. 458 13 4By Balance of Trading Account .. .. .. .. .. .. 2,156 311 Salaries .. .. .. .. ~ .. 355 0 0 Rents .. .. .. .. .. .. 200 0 0 Rates .. .. .. .. .. .. 25 19 9 Interest .. .. .. .. .. .. 60 16 6 Repairs and maintenance .. .. .. .. 22 9 6 Telegrams and postages .. .. .. .. .. 808 Printing and stationery .. .. ... .. .. 18 310 Insurances .. .. .. .. .. .. 26 10 Travelling-expenses .. .. .. ... .. 15 0 Cartage .. .. .. .. .. .. .. 719 14 3 Freights, &c. .. .. .. .. .. .. 316 7 General expenses .. .. .. .. .. .. 20 13 9 Sacks .. .. .... .. .; .. 42 9 4 Audit fees .. .. .. .. .. .. 700 War bonuses .. .. .. .. .. .. 50 12 6 Depreciation ............ 85 8 0 2,082 9 10 Balanoe: Net profit .. .. .. .. .. .. 73 14 1 £2,156 3 11 £2,156 3 11

C—2a

14

Statement of the Receipts and Expenditure of the New Zealand State Coal-mines for the Year ended, 31st March, 1917. Receipts. £ s. d. £ s. d. Expenditure. £ s. d. £ g, a. To Cash in hand and in Public Account at 31st By Point Elizabeth Colliery— March, 1916 .. .. .. .. 34,750 13 10 Property and development .. .. .. .. .. .. 300 9 6 Proceeds of sale of coal .. .. .. 290,177 3 5 Stores and materials .. .. .. .. .. .. .. 11,110 2 5 Recoveries .. .. .. .. 11,398 11 1 Wages .. .. .. .. .. .. .. .. 39,106 3 8 Refunds, &c. .. .. .. .. 147 15 0 Timber .. .. .. .. .. .. .. .. 226 9 4 : 301,723 9 6 Special rate .. .. .. .. .. .. .. .. 1,050 0 3 Royalty .. .. .. .. .. ~ .. .. 707 13 0 Liverpool Colliery— 52,500 18 2 Property and development .. .. ... .. .. .. 1,658 16 0 Machinery, plant, and rolling-stock .. .. .. .. .. 1,405 17 11 Buildings .. .. .. .. .. .. .. .. 836 10 8 Cottages .. .. ... .. .. .. .. .. 371 5 10 Stores and materials .. .. .. .. .. .. .. 2,917 15 10 Wages .. .. .. .. .. .. .. .. 44,180 1 2 Timber .. .. .. .. .. .. .. .. 9 10 Special rate .. .. .. .. .. .. .. .. 1,130 18 9 52,510 7 2 Charming Creek Account .. .." .. .. .. .. .. 1,468 1 8 Hulks, working .. .. .. .. .. .. .. 1,159 5 3 Wellington Depot, working .. .. .. .. .. .. 17,763 0 10 Christchurch Depot, working .. .. .. .. .. .. 12,454 18 5 Wanganui Depot, working .. .. .-. .. .. .. 4,845 17 2 Dunedin Depot „.. .. .. .. .. .. 3,534 9 0 39,757 10 8 Management and office salaries .. .. .. .. .. .. 2,568 4 4 Rents .. .. .. .. .. .. .. .. .. 65 0 0 Interest and exchange .. .. .. .. .. .. .. 8,639 9 0 Marine freights .. .. .. .. .. .. .. .. 76,473 1 7 Travelling-expenses .. .. .. .. .. .. .. 282 2 9 Printing and stationery .. .. .. .. ~ .. .. 156 11 7 Telegrams and postages .. .. .. .. .. .. .. 145 9 4 Repairs and maintenance .. .. .. .. .. .. 1,619 15 5 Railway haulage .. .. .. .. .. .. .. 26,778 17 6 Insurances .. .. .. .. .. .. .. .. 301 0 1 Compensation for accidents and fund .. .. .. .. .. 2,951 16 9 General expenses .. .. .. .. .. .. .. 205 19 8 Terminal charges .. .. .. .. .. .. .. 1,658 16 9 Cargo adjustments .. .. .. .. .. .. .. 56 9 10 Refunds .. .. .. .. .. .. .. .. 019 1 Audit fees .. .. .. .. .. .. 26 13 4 Head Office alterations .. .. .. ~ .. .. .. 233 16 10 Deposit Contract Account .. .. .. .. .. .. 55 0 0 122,219 3 10 Cash in hand and in Public Account at 31st March, 1917 .. .. .. 68,124 19 6 . Less vouchers passed .. .. .. .. .. .. .. 106 17 8 68,018 1 10 £336,474 3 4 £336,474 3 4 State Coal-mines Office, Wellington, 24th May, 1917. W. D. S. Mac Donald, Louis H. Eiders, F.E.A., N.Z., Accountant. Minister of Mines.

a—2a

15

Table showing the Position of the State Coal-mines Account from Inception to 31st March, 1917.

Name of Works. Total Capital Expenditure. Total Amount of Depreciation written off. Assets: Net Capital as per Balance-sheet, 1917. Net Profits. Net Losses. Liabilities as perj Balance-sheet, 1917. Point Elizabeth Colliery Less loss by fire and sales £ s. d. 97,643 8 5 805 6 11 £ s. d. £ s. d. £ s. d. £ s. d. £ s, d. 96.838 1 6 I 96,838 1 6 95,352 1 6 1,486 0 0 92,988 10 8 iJV , OOO X u Point Elizabeth (Liverpool Colliery) I— _ 172,067 16 3 27,805 3^2 144,262 13 1 24,457 16 5 — Seddonville Colliery Less sales 38,187 6 8 548 11 0 I — 37,638 15 8 39,573 8 7 37,638 15 8 O I . UOO i-O o Briquette-works property Less sales of plant 16,135 2 6 2,066 5 0 ! UflfiR 17 fi 14,068 17 6 14,068 17 6 22,663 1 II 14,UOO il 0 Charming Creek prospecting ... - 4,563 15 8 4,563 15 8 3,000 18 4 1,562 17 4 3,000 18 4 . Wellington Depot property Less sales 5,856 0 3 323 5 6 5,856 323 0 5 3 6 * Christchurch Depot property .. Less loss on horses 0,032 14 y 7,415 1 4 40 0 0 7 O.JK 1 A 5,532 14 9 2,588 8 5 2,944 6 4 481 9 7 7.415 40 1 0 4 0 Wanganui Depot property Less loss on horses 7,370 1 4 2.611 19 6 40 0 0 7,375 1 4 3,290 1 4 4,035 0 0 2,277 13 8 j I ! 2.611 19 40 0 6 0 895 10 5 1,676 9 1 i 2,571 19 6 I Dunedin Depot property Less sale of plant 2,007 17 7 300 0 0 2,571 19 6 450 13 4 2,007 17 300 0 rr 0 1,079 8 9 628 8 10 i I 1,707 17 7 2,782 5 8

C—2a.

16

Table showing the Position of the State Coal-mines Account from Inception to 31st March, 1917— continued.

Approximate Coat of Paper. —Preparation, not given ; printing (1,200 copies, including plan), £22 15s.

By Authority : Marcus F. Marks, Government Printer, Wellington.—l9l7.

Price 6d.]

i Name of Works. Total Capital Expenditure. Total Amount of Depreciation written off. Assets: Net Capital as per Balance-sheet, 1917. Net Profits. Net Losses. Liabilities as per Balance-sheet, 1917. I £ s. £ s. 4,033 15 t firin n d. d. 5 £ £ s. s. d. d. £ s. d. £ s. d. £ s. d. £ s. d. Hulks property Less sales .. I 4,033 15 1,650 0 5 0 I r— 2,383 15 2,383 15 189 13 2,383 15 0 5 9 5 5 1,906 1,906 3 3 2 2 477 12 3 Office furniture Less sales 189 13 17 5 189 13 17 5 9 0 9 0 172 8 17 5 172 8 172 8 0 9 9 - 172 172 8 8 9 9 172 8 9 _ Grand total Less losses and sales 350,711 17 5,790 13 350,711 17 5,790 13 4 5 4 5 -■ • 34-4. 991 3 344,921 3 11 If 187,797 17 87.797 17 n 0 123 6 : 11 044,yZl o . IC Ol, IVI Li 157,123 6 11 Discounts 13 2 13 2 9 9 Totals, profits and losses Balance, profits over losses Stocks on hand Loan, flotation charges (balance) Suspense and Deposits Accounts Sundry debtors Cash on hand Debentures and Loan Account Sundry creditors Accrued interest Sinking Fund Account Reserve Fund Account Genera] Profit and Loss Account 12.394 12 10 1.000 0 0 580 17 1 22.645 17 2 68,018 1 10 95,760 16 8 93,100 13 2,660 3 0 8 227,601 0 7 27,144 7 1 4,357 4 6 13,200 0 0 5.884 11 2 16,424 7 6 i I 278,187 3 4 95,760 16 8 95,760^16 8 278,187 3 4 L. H. Eilees, Accountant.