C—2a.

4

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,