C—3a

4

The following table shows the average earnings per shift by coal-hewers employed at the mines : —

It may at first seem strange that the cost of production at Seddonville has decreased, while the earnings of the miners have so largely increased. The explanation is that the operations in the solid coal at that mine have gradually ceased as the final stage of pillar-extraction has been entered on, pillarcoal being much easier to win than solid coal; the cost per ton is thus reduced, although the hewers have increased their daily earnings. The earnings shown in the last table are the gross earnings, ftom this should be deducted the cost of explosives and other stores used, equal, on an average, to about Is. per man per shift. Sale and Distribution of Coal. Before entering into details regarding the sale and distribution of coal, it is desirable to state that the sale price of the coal, both to Government Departments and the public, was fixed and has always been maintained at bed-rock, the policy of the Government being to sell at practically cost price. To show a handsome profit might have been attractive ; but this would have defeated the purpose for which the business was entered upon. The extent to which the public have availed themselves of the reasonable charges for State coal is illustrated by the following statement showing the quantity of coal sold at each depot annually since their inception: —

It has sometimes been stated that the Railway and other Government Departments have been charged a higher price than the public for State coal supplied to them for the purpose of inflating the profit, but such is absolutely erroneous, as will be seen by the following table showing the prices per ton f.o.b. to New Zealand Railways, other Government Departments, and to the public respectively : —

When coal is charged to the Railway Department at higher rates than above mentioned it is on account of the State coal-mines bearing the cost of the sea-freight, and including same in the total charge for the coal.

Yi;u- ending 31st March. Point Elizabeth. Seddonville. 1905.. 1906.. 1907.. 1908.. 1909.. 1910.. 1911.. 1912.. s. d. 12 7-50 13 7-33 14 4-35 14 10-54 14 1-22 14 0-53 15 3-10 16 8-15 8. 13 14 14 14 16 16 17 17 d. 0 1 1 8 2 6 0 8

Yoar. Wellington. Christohureh. Wanganui. Dunedin. Totals. Tons. 13,858 22,110 28,404 26,859 25,428 27,731 i Tons. 21,187 42,758 64,264 69,095 63,550 70,114 1906-7 .. 1907-8 .. 1908-9 .. 1909-10 .. 1910-11 .. 1911-12 .. Tons. 7,329 16,052 25,045 26,864 26,415 30,427 Tons. 4,596 6,837 6.375 6,112 6,261 Tons. 3,978 8.997 5,595 5,695 144,390 132,132 30.181 24,265 330,968

New Zealand Railways. Other Go' Depart 'eminent uente. Public. Screened. Unscreened. Screened. Unscreened. Screened. Unscreened. s. d. s. 11 11 11 12 12 12 15 d. 6 6 6 0 6 6 0 s. d. s. 11 11 11 12 12 12 15 d. 6 6 6 6 6 6 0 e. d. s. d. 11 6 11 6 11 6 12 6 12 6 12 6 15 0 1905-6 1906-7 1908-9 1909 1910 1911 1912 13 6 14 0 14 6 15 0 16 0 18 0 15 0 15 0 15 0 15 0 16 0 18 0 15 0 15 0 15 0 15 0 16 0 18 0