35

H.—44a

CHAPTER 111. THE COST OF DISTRIBUTION OP COAL. PASS M.UE ). Transport from Mino to Dealer . . 35 2. Distribution - costs from Dealer to (i.) Relation of Transport to Retail Consumer— continued. Prices .. .. ..35 (iv.) Distribution at Christchurch— contd. (ii.) Changes in Transport-costs since (b. ) Prices : Changes and Causes 46 1913 .. . . 30 (o.) Costs .. .. .. 48 2. Distribution - costs from Dealer to Con- (d.) Lignites .. .. 4!) sumer .. .. 37 (c.) Australian Coal .. .. 49 (i.) Definition and Classification of Costs 37 (/.) Increases in Cost of Con(ii.) Distribution at Auckland .. 37 ducting a Retail Business 50 {a.) General Features .. 37 (g.) Profits .. .. ..50 (6.) Prices: Changes and Causes 38 (h.) Suggestions for Improve(c.) Demand and Costs . . 38 ments .. .. 51 (d.) Newcastle Coal .. .. 41 (v.) Distribution at Dunedin .. 51. (c.) Public Apathy ... ..41 (a.) General 51 (/.) Possibilities of Improvement 42 (6.) Pricos : Changes and Causes 51 (jr.) Rates of Profit .. .. 42 (c.) Costs .. .. 52 (iii.) Distribution at Wellington .. 43 (d.) Profits .. 52 (a.) General .. .. 43 (c.) Suggestions for lmprove(b.) Prices: Changes and Causes 43 ment.. .. .. 52 (c.) Costs .. .. 44 (vi.) Distribution at Invercargill .. 53 (d.) Profits .. .. 45 (a.) General .. .. 53 (c.) Improvements suggested .. 45 (6.) Prices: Changes and Causes 53 (iv.) Distribution at Christchurch .. 45 (c.) Costs .. 54 (a.) General .. .. 45 (d.) Profits .. .. ..55 1. TRANSPORT FROM MINE TO DEALER. . (i.) Relation of the Amount of Transport Charges to the Retail Price of Coal. The New Zealand coal-mines are more or less remote from the chief consuming-centres. The cost of transportation by rail or sea is therefore an important item in the cost of coal to the consumer, and is the first in order of the costs of distribution. For example, in the case of Taupiri house coal the cost of transport puts 40 per cent, on to the selling-price f.o.r. at the mine (September, 1918), and represents 23 per cent, of the net cost of coal to the consumer at Auckland. In the case of Westport house coal at Lyttelton sea freight adds 46 per cent, to the f.o.b. cost at Westport, and railage from Lyttelton to Christchurch another 20 per cent. ; while the sea freight represents 19 per cent., and the rail charges, including the railage from mine to Westport, over 13 per cent., of the net retail price at Christchurch. (In the latter case the rail freight from Lyttelton to Christchurch is over 42 per cent, of the sea freight from Westport to Lyttelton.) The Newcastle mine price (155.) is increased by 110 per cent, by the sea carriage (16s. 6d.) to Lyttelton (133| per cent, after Ist March, 1919) ; the railage to Christchurch (ss. 6d., or one-third of the cost Newcastle to Lyttelton) represents nearly 37 per cent, of the mine price ; and nearly 10 per cent, of the retail price at Christchurch (£2 175.) s accounted for by this railage, and 29 per cent, by the sea freight. The following table shows the relation which cost of carriage boars (1) to the cost of the coal as it leaves the principal minefields, and (2) to its cost to the consumer. In each case the figures have been calculated on net price per ton ; the transport in question is carriage by rail or sea, and does not include cartage of coal from ship or truck to dealers' yards, which will be considered under another heading. Table 34.— Showing relation between Cost of Transport by Rail ob Sea and the Net Retail Price of certain Household Coals. Percentage added ~ ~.. , ~ ~.,,,, , ■..-• " ,* Percentage which hrenmt Freight between to Mme-cost* , ~ ° „ , ~ „ . h 6 . T7, . , , is or Net lletail Price. by Freight. Newcastle and Lyttelton .. .. 110 29 (Christchurch price). Newcastle and Christchurch . . . . 147 89 Newcastle and Wellington . . . . 110 32 Taupiri and Auckland .... 40 23 Taupiri and Wellington .... 77 29 Westport and Lyttelton .'. . . 46 19 (Christchurch price). Westport and Christchurch . . . . 65 27J Kaitangata and Dunedin . . . . 22| 15 Kaitangata and Christchurch. . . . 24-| Nightcaps and Invercargill . . . . 35 \ 18| Greymouth (other than State) and Lyttelton .. . . . . . . 39 19 (Christchurch price). Greymouth (other than State) and Christchurch.. .. .. .. 56 27 J * In the case of Westport and Greymouth mine-cost includes railage charges of from 2s. 3d. to 3s. from mine to port.