H.—44a

45

lv this estimate no allowance has been made for the times during which no coal has been available to distribute. During the pant yeai such contingencies have not been infrequent-- in one case during January, 1919, the yard had been bare of coal for ten days, with none in sight. On such occasions the hands are generally kept on, and a large proportion of the expenses continue with no corresponding income. It is to be noted also that the " average retail price " is not the ton rate, but a rate between the quarter-ton rate and the hundredweight rate, as the greater part of the business done by retailers of late has been in small lots. 'Phis fact, however, increases the cost, and this increase in cost, due to the diminution in the size of the average order, has not been fully allowed for in the above estimate. The suburban portion of this estimate refers to a business which is worked from a yard in the city. The following is an estimate of the costs of a retail suburban dealer whose yard is situated in the suburb itself : — ' Tablh 47. s. d. Cartage to yard .. . . 1.0 0 during shortage of supplies— about 7s. with normal supply. Cartage to customer .. .. ■ .. 6 6 Sacks.. .. .. .. ..2 1 Rent and depreciation . . . . .. 16 Coal ex ship .. .. .. .. 35 0 55 1 Average retail price .. . . 56 0 Leaving .. .. . . 011 for bagging, weighing, office expenses, &.e. The increase, in the cost oj conducting a 'retail business, excluding the increase in the prime cost of the coal, amounts to at least 4s. 6d. — an increase of about 40 per cent, over the period since the beginning of 1914. This increase in cost may be analysed thus--s. d. Cartage to yard, rise of .. .. .. .. ..13 per ton. Increase in wages to yardmen and drivers, and in the price of forage.. 2 0 „ increase in other expenses, salaries, rates and taxes, insurance, maintenance, advertising, depreciation, &c. . . . ; I. 3 ~ Total .. .. .. .. .. ..4 6,, Comparing the years ending the 31st March, 1914, and the 3Jst March, 1918, the State depot finds its wages-cost increased from 2s. 9'oßd. to 4s. 1 -9 ld. per ton over all coals, wholesale and retail, and its cartage-costs increased from 4s. l-3d. to Gs. 2'lid. per ton. The total cost of handling and distributing these coals increased by 28-5 per cent, between these years. The cost of handling the retail business is higher, cartage accounting for over 75., or nearly half the total cost (14s. 2-32 d.) on the average of the year ending the 31st March, 1918. The charge for sacks is very much lower than in the case of private firms, being only 347 d. per ton. For that year State coal cost, landed into trucks or oarts at Wellington wharf, £1 ss. 1(>97d., made up of J'.o.b. price, G-reymouth, 15s. 3-97 d. ; freight, 9s. 7d. ; harbour dues, Is. The total cost from mine to consumer worked out at £2 os. l-29d. per ton, the coal then selling at £1 17s. per ton in ton lots. ((/.) Profits. Considering the rises in the prices of materials and in wages in relation to the decreases in the average turnover and in the amount of work per day done by the workmen, we consider the increased charge (4s. 6d.) which retailers generally have passed on to the consumer is reasonable. In this connection it is interesting to compare the changes in the margin available to dealers who take supplies of coal direct from the wholesalers' yards to the consumers. Up to December, 1916, this margin i.e., the difference between the ex depot or ex yard price to the dealer and the cash retail price was -Is. per ton; from December, 1916, to July, 1917, it was 'Is. 6d. ; from July, 1917, it has been ss. 6d. This is an increase of 37| per cent., which is approximately the same as the percentage increase in the retailer's business-costs, excluding the price of his coal. (c.) Improvements suggested. Some four , or five suggestions were made in evidence at Wellington. These are considered in framing the recommendations made in Chapter VIII, section 3. (iv.) Distribution at Cheistchukch. (</..) General. Christeliurch draws its supplies of coal oversea and by rail via Lyttelton from the West Coast (the Westport, Westport - Stockton, Blackball, and State mines being the principal sources), and from Newcastle ; and by rail from Kaitangata, Nightcaps, Homobush, and other lignite-mines of the South Island of minor importance. All these coals are used for house purposes, but the Australian and West Coast coals are also used extensively in industry. The household consumption is distributed more equally over a more varied selection than in the other centres, but the bituminous coals of the West Coast are much preferred, and may be regarded as constituting the standard. Cost of carriage per ton on coal brought to Christchurch is as high as 18s. 9d., or 46 per cent, of the retail price of the particular coal in question, and by sea and rail £1 25., or nearly 40 per