11

H.—44

Council was gazetted fixing the maximum prices of bacon and ham when sold by the manufacturers at the'standard prices ff ruling on the Ist December, 1917—- that is to say, in respect of every locality, the current price at which on that date goods of the same nature and quality were saleable in that locality when sold in the same quantity and on the same terms as to payment, delivery, and otherwise. MILK. Very little trouble was experienced in the control of milk-prices throughout the Dominion, and, generally, prices have been fair and reasonable during the pieriod under review. In Wanganui the Board fixed the maximum wholesale Jprioe of milk at the farm-gate at lid. per gallon, and sd. per quart delivered. Later the Order in Council was amended by providing that the. price of milk should be lid. per gallon when sold and delivered, within the Wanganui district, or lOd. per gallon when sold and delivered at the dairy farm on the usual trade terms. In Wellington the Board also fixed the price of milk by Orders in Council issued in January and in March, the latter Order providing for the wholesale price to be Is. o|d. per gallon delivered at Wellington. GAS. The Supply and Price op Gas, Wellington. Following on instructions from you to the Board, dated the 2nd October last, to inquire into the quality and price of gas at Wellington, the Board instituted an inquiry and reported to you fully on the matter. The price of gas in Wellington was raised from ss. sd. net to 6s. Bd. per 1,000 cubic feet, and complaints were made by several Wellington citizens not ohly in respect to the increased price, but as to the qualitj' of the gas supplied. The gas-supply of Wellington is in the hands of the Wellington Gas Company (Limited), and its intention to increase the price of gas to 6s. Bd. net as from the 24th October, 1917, was given to consumers by advertisement and by circular. This circular set out briefly the reason for the increase as follows : — " During the year the cost of coal for gas-manufacturing purposes has advanced by more than 50 per cent, over the cost of last year ; the taxation payable by the company has been increased by upwards of £8,000, and there has been further large expenditure in many other directions. All these increases are due to war conditions. Notwithstanding this heavy additional expenditure, all of which will be still further increased in the near future, the only advance that has so far been made in the price of gas is sd. per 1,000 cubic feet in April last. It is obvious that this condition of things cannot further continue without imperilling the financial position of the company, and the directors have decided to decrease the amount now allowable as discount off gas accounts from 2s Id. per 1,000 cubic feet to lOd. per 1,000 cubic feet, making the net price of gas 6s. Bd. per 1,000 cubic feet." In view of the need for a full inquiry, the Board asked the company to suspend the operation of the proposed increase until the Board could give its recommendation, but this the company stated it could not accede to because of urgent financial considerations. On the 16th November the Board opened its inquiry in Wellington, and the principal evidence may be summarized as follows : Net Price of Gas to ordinctru Consumers, 1905 to 1918. ?™i? lio ? p^ •' a 1,000 cub. tt. a. d. From October, 1905, until September, 1913 .. . . . . ..55 From. September, 1913, until 16th April, 1917 .. .. .. ..50 From 16th April, 1917, until 24th October, 1917 .. .. .. ..5 5 From 24th October, 1917, and after . . .. .. . . ..68 Dealing with the estimated increased expenditure and income for the year 1918, the following table sets out the position :—■ Estimated sale of gas in 1918 .. .. .. .. 360.000,000 cub. ft. £ £ 1918—29,000 tons coal at 30s. per ton .. .. .. .. ..43,500 1916—31,000 tons coal at 18s. 9d. per ton .. .. .. .. ..29,166 Increased cost of coal .. .. .. .. .. .. — 14,334 Annual amount required for depreciation .. .. .. .. .. ~ 11,398 Estimated increase in wages for 1918 .. .'. .. ..' .. .. 5,300 31,032 360,000,000 cub. ft. of gas sold at increased price of Is. Bd. per 1,000 cub. ft. . . 30,000 Less by operation of sliding scale .. .. .. . . .. .. 2,500 Increased income from gas-sales .. .. .. .. .. .. 27,500 Increased profit on residuals. . .. .. .. .. .. .. 2,000 Total increased'income ... .. ~ .. .. .. 29,500 Estimated direct loss on year 1918 .. .. .. "'.. .. £1,532