1.-7

12

throughout; and in England, on the 12 tons an hour, it is represented to me that the whole cost of labour and superintendence from truck to truck does not exceed Gd. per ton. The substance with which to bind together the particles of coal is the chief expense. "Various substances have been tried, but none appear to equal ordinary pitch,'whether made from coal tar or the pitch of commerce. The amount required varies from 4 to 10 per cent. I think 7 to 8 per cent, would be sufficient for the Otago coals. It can, I believe, be imported, all charges paid, at about 65s. a ton landed in Dunedin. Possibly it might be obtained cheaper by the distillation of the waste coal at Greymouth ; and possibly it may be found in a natural condition in the country. It so exists, I believe, in several parts of the world. Pitch can easily be made from gas tar. Even if imported, I am of opinion the pitch could be obtained at a cost which would make it profitable to convert the Otago coal into compressed fuel. Deprived of water, compressed in bulk, not liable to waste into dust, and convenient to pack, I am of opinion that for ocean-steam and loco-motive-engine purposes, the ton of Otago compressed fuel would be worth more than a ton of Newcastle coal. That which struck mo most strongly, when making my investigations, was, that I found inquiries on the same subject were being instituted from many different quarters, while the use of the fuel was becoming very wide-spread. The steam ships despatched on the Arctic expedition were filled with it; whilst at the same time a model of the machinery was set up in London, in order to enable a representative of the Government of India to examine into the mode of manufacture. For some time, the fuel has been in more or less use in India. Considerable quantities of it are shipped to Peru for the use of ocean steamers. I heard of proposals to erect machinery on points of both the East and West Coast of South America, in several parts of England, and on a small scale in different portions of the world. For example, I heard of the intention to erect a small machine on one of the West Indian Islands. The use of the machinery is not confined to the places where coal is raised. In places where large quantities of coal are stored, a great deal of otherwise useless coal dust, by the aid of a small machine, can bo utilized, if not too long exposed to the atmosphere. I heard of a machine costing only £200 or £300. I was given to understand that compressed coal was regarded very favourably at the British Admiralty, as also by the French naval authorities. I append a report [marked C] upon this fuel, by the French Marine. It will be seen by it that the subject has engaged much attention, and that the fuel is highly thought of. I forward also a copy of a most interesting report [marked D] prepared for me by the engineer who has charge of the purchase of coal for the Admiralty. I believe that gentlemen interested in the Waikato coal mine are carefully inquiring into the subject. When I reflect on the circumstances under which compressed fuel is used and manufactured in other countries, I cannot avoid the conclusion that in parts of New Zealand it can be made and used with great advantage. If the difficulties which beset the initiation of a new industry can be overcome, artificial fuel should be largely used in parts of the colony for locomotives, for ocean steamers, and for domestic purposes. In course of time, I see no reason why it should not be made an article of export. It will be observed, however, from what I have said, that much depends on the cost of the substance which is to be used to agglomerate the material. The use of brown coal in its original state must be very much limited by its liability to crumble into powder when carried any great distance. To convert it into compressed fuel, is obviously to give it an enormously increased value, not only on account of its portable form, but because of its waste water being driven off. The process of conversion is inexpensive ; indeed, the cost of the labour might be considered to be covered by the saving in the cost of the coal from the pit; inasmuch as powdered coal would be as serviceable as whole coal, all the coal could be taken, and a great deal otherwise wasted be saved. The one item of expense is the substance to be used for binding the mass together. Experience hitherto points to pitch as being the best substance ; but at present, pitch means a cost of 5s. to 8s. for each ton of compressed fuel. I believe at even this cost compressed fuel could be manufactured with advantage for a great many purposes. But in proportion as it is practicable to reduce the cost of the adhesive substance, will be the wider demand for the fuel. At anything under a cost of 4s. for the adhesive substance for each ton of fuel, I believe Otago compressed fuel could be made to compete with Newcastle coal in the Melbourne market. The great object, then, is either to find pitch cheaply, or a substance to be used instead of or in combination with it. I believe that such a result can be arrived at. In India, it is proposed, I understand, to use pitch in combination with starch, whilst there are a great variety of other mixtures spoken of, and several substances have been experimented on without any admixture with pitch. It would be well worth the while of persons interested in the subject to spend a little money in causing experiments to be made. The mode of manufacturing the fuel is easy. The coal is intimately mixed with the agglomerating material. The mixture feels perfectly dry to the touch, but when subjected to a pressure of about 50 tons to the block, it becomes a compact glazed mass. The machinery is so contrived that the coal and pitch poured into the machine pass through the various operations without handling, till it is delivered by an endless band in blocks, wherever it is desired to store or load it. In appearance, artificial fuel, properly prepared, is well defined in shape. It bears a glaze, and can be handled without soiling the fingers. Pktroletjm. I observe ilia t e House has directed he Committee to rnort on the occurrence of and facilities for o taming p fcro] um in Nov. Zealand. I venture to volunteer some evidence on the subject, which is u i1 in which I take deep interest. I have expended at.various limes about £1,500 in the search fop petroleum in New Zealand. 1 am confident it exists, and had 1 money to spare, I would not grudge a very considerable expenditure on the search. It exists on the coast of Marlborough, but whether in payable quantities the agent I sent there to report upon it was not able to ascertain. I believe I have noticed, in the characteristic bronzing of the rocks, evidence of its occurrence on the beach in the neighbourhood of Nelson. Indeed, its presence should be looked for in that province. There is little doubt but that traces of it have been found at D'Urville's Island. I sent to this locality once, but my