49

H.—44a

to-day there are five men in a hold, and they put out on an average 10 tons only " —that is, the amount per man per hour has fallen from 5 or 6 tons to 2 tons. Another witness gave the figures for the discharge of coal at another first-class port: eighteen years ago four men would discharge 20 to 25 tons per hour ; with five men now the average is 12 to 15 tons. Loss in weight may be put on the average at 2 per cent, for hard coal and 5 to 7 per cent, for lignites, in the latter case due mainly to evaporation. On coals screened in the yards there is additional loss, but the yard-screening has ceased since the shortage became acute last winter. There is also occasional pilfering on the railway, but it is not regarded as a serious element in cost. Complaint was made that the cost, of distributing Kaitangata coal in Christchurch in 1918 was unduly high, as the mine was selling only through an agent, and this agent was charging £2 ss. per ton bagged, ex truck, or 3s. more than the mine-cost plus railage. The practice of soiling through one agent was begun in May, 1918, and continued till October, and was amply justified by the shortage necessitating the appointment of a sole agent to divide up the few truck-loads available per week among the local dealers. The 3s. difference is accounted for mainly by the wages of two men employed by the agent to bag the coal and load the carts, and by the loss in weight en route from the mine, averaging about | cwt. a ton. It is worthy of note that coal of the best household quality from the Reefton or Inangahua Coalfield, which is one of the most extensive in the Dominion, can be landed in Christchurch under present conditions at a cost much the same as that of the Kaitangata coal. As mentioned elsewhere in this report, the development of these fields merits the attention of the State. (d.) Lignites- -Lignite coals of varying quality are available in Christchurch with ex truck prices ranging from £1 Bs. 3d. (Mataura) to £2 4s. (Kaitangata). The railage forms a large proportion of the total landed cost of these coals, in most cases ranging from one-half to two-thirds. The dealers have to allow more for loss of weight and cartage expenses on these coals ; and their prices have advanced at a much higher rate than those of other coals, for the further reason that consumers' demand in regard to them has been less clastic : householders have been willing to pay the greatly increased prices rather than suffer the only alternative of no supply at all. Dealers get a gross profit of about £1 a ton on such coals (out of which to reimburse them for all costs of storing and delivery), but this trade has not been so extensive as to provide them with an undue net rate of profit on their whole turnover, as the coals have found a ready market in their own district. In order to eke out the short supplies of the better coals the Munitions and Supplies Department has latterly compelled all dealers to include a certain amount of lignite as an essential part of every household order. If this had not been done the prices of all the better coals would have been raised still higher than they have been. (c.) Australian Coal.- The wholesale price of Newcastle coal ex ship at Lyttelton in September, 1918, was £1 16s. 6d. per ton, an advance of 13s. per ton, or 55J per cent., on the price in August, 1914. The price is made up as follows : — Tabl,o 56. Ms 1914 _ s. d. s. d. Coal f.o.b. at Newcastle per ton .., . . .. 15 0 110 Freight to Lyttelton .. .. .. .. . . 16 6* 10 G Insurance .. .. .. .. .. ..021 Primage .. .. .. .. .. ..02 Weighing 0 2 1 g Exchange . . .. . . . . .. 0 0} \ Loss in weight (2 per cent.) . . .. . . . . 03| | Overhead charges . . . . . . . . .. 03 J 32 7 22 2 This leaves 3s. lid. a ton out of which to provide rent, travelling-expenses, &c, as well as profit. These expenses have increased greatly per ton, owing to the diminished turnover. The importations of the wholesale firms have been reduced since 1914 by two-thirds. This reduction has been due not to the lack of coal in Australia, but to the shortage of shipping. The Government demand for railway purposes takes precedence of all other requirements. This means that the proportion of the total supply of Australian coal now available for ordinary trade purposes is much less than in 1914— e.g., one firm imports only one-third of the amount received in 1914, and the railways take one-half of the importation instead of one-tenth as in 1914. The gross profit per ton on the trade in railway coal was 6d. before the war and up to 1917, when it became 9d. ; after the Ist September, 1918, it has been 2s. 6d,, the price paid by the Government being £1 14s. Out of the 2s. 6d. the charges for shortage in weight, insurance, exchange, &c, are defrayed. The retail net cash price of Australian coal is £2 18s. as against £1 19s. in 1914, an increase of nearly 49 per , cent. The chief increases in retailers' costs appear to have been — s. d. Coal ex ship .. .. .. .. .. ..130 Railage . . . . . . . . . . . . ..10 Discharging . . . . . . . . ■ . ...03 Duty (primage) . . . . . . . . ■. ..02 Sacks .. 0 6 Cartage .. . . . . ' . . . . .. ..29 Loss in weight . . . . . . . . . . ..03 Office expenses . . .. . . .. . . ..16 Other charges .. . . . . .. .. ..17 * 17s. 6d. if by Melbourne Steamship Company,

7—H. 44a.