1.-6.

1,000 tons a day. We could do that if we had sufficient assurance that the trade would continue, and we felt warranted in employing a number of miners and opening works. 625. That is from the Wallsend ? —Yes. 626. What from the Brunner?—Within a couple of years' time we could bring the Brunner to the condition it was in before—that is, suppose we leave out all question of cost. Speaking of what it is capable of regardless of cost, I should say that the Brunner could be brought to give 1,000 tons a day, working two shifts. 627. The Coal-pit Heath ?—That would be something less—say 500 tons a day. 628. Then, the Tyneside ? —lt is not prudent to work the Tyneside at all. It is broken coal. It would not pay anybody to work it. We do not propose to work the Tyneside again. It is quite sufficient to work the other pits. The Tyneside is not profitable to work.

• Wednesday, 17th July, 1889. Mr. Kennedy, examination continued. Witness : I was examined yesterday as to the output of coal, and the reasons why, as stated, the conditions of the leases were not complied with. That, no doubt, might be made a very serious matter. It would be well to refer to that matter again if you will allow me. It is natural it should be a matter of great interest to us. We have fairly good plant; the mines are sufficiently well developed : if we could find a market for all the coal we could produce at anything like remunerative prices, or even pay the cost of working, there would probably be no difficulty to present itself in working the mines. I may be allowed to follow this up by saying that Ido not know the intention of the Committee in asking this inquiry. 629. The Chairman.] I will put you right in that matter. The intention is to get all the information possible to guide the Committee in making its report as to the state of the coal industry on the West Coast in all its bearings, and in trying to find, if we can, the means by which it can. be assisted. The Committee will be glad to hear what further you have to state. Will you tell us what further information you can lay before the Committee ?—I do not like the idea of having a lease and not complying with its conditions. I think it is desirable to explain my position in regard to that mine again. It may be said that no one ought to take a lease without complying with the conditions and seeing what he has to do. If you will take into account all the leases on the West Coast, and insist on their complying with the full output conditions, I say it would be impossible to find a market for all the coal you would so take out in New Zealand. I question even if it would be practicable to get a market beyond New Zealand that would pay. In regard to the Brunner Mine, you will see that we have more than complied with the conditions from the first, except for the past half-year. There have been to my own knowledge several leases joining our lease —one of which more particularly I might refer to —which had been under lease for ten or twelve years, where a large output was provided for, yet no attempts were made to enforce the conditions. 630. Would you mention it ?—Fowler's lease. Mr Guinness knows it well. He asked, I think, that it should be extended, and it was extended. Mr. Guinness : That is a lease that has not been opened at all. 631. The Chairman.] Is it still unopen? —My own notion is that a person who spends a large capital to comply with his lease is better for the country than one wfio does not work his lease at all. I cannot say what has brought on this investigation. It maybe that it is some difficulty that has arisen between the miners and ourselves. If this particular mine is to be made the subject of inquiry, I would point out that there are persons in the district who have had leases for a number of years and never did anything at all. I have mentioned that it is a serious loss, when you have expended a large sum of money upon it, to allow a mine to remain idle ; without work there is no profit. All the time they are not working there is an absolute loss, for several over-men, road-men, and artisans are employed, without counting interest on capital or depreciation. Here is a sketchplan which I had made some time ago. (Examined on plan.] 632. Is that lease you call P'owier's still in the name of Fowler? Mr. Guinness : It has been cancelled ; it has not been worked. 633. The Chairman.] Then, it is not worked? —If all the conditions of these leases are to be enforced, then I think you might extend the inquiry so as to find whether it is possible to find a market for all the coal that should be produced under them. There is only 130,000 tons imported from Newcastle, but that is as nothing compared with the whole output that would accrue from the leases. Mr. Fish: That makes it more important that the Government should reduce the charge for railage so as to let it be done at the minimum of cost. 634. The Chairman.] Will you leave this plan with the Committee? —Certainly. I was observing that, in my opinion, it is scarcely possible to comply with the output conditions in the present state of trade. At the time I said I was agreeeable to increase the output of the Brunner Mine there is no doubt I thought at that time that we could get a market in Australia for our coal. Circumstances have changed since then. They have discovered in Newcastle what is called the Stockton Mine, which has come to the front, having a good gas-coal. That has destroyed, to a large extent, the prospect we entertained of having a big output for gas-coal, with a market in Melbourne. For some years I used to get 7s. or Bs. per ton at Melbourne over the price of Newcastle coal, because ours was a better gas-coal. They used to buy it for the Bendigo Gasworks. The Metropolitan Gasworks used to tell us that they would take any quantity we would send them at an advance of 4s. or ss. above the ordinary price of Newcastle coal. It was on these circumstances that I based my hopes of having a bigger output, and a market in Australia.

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