53

H.—44a

(vi.) Distribution at Invercargill. (a.) General. —The chief coals used for house and general purposes are Nightcaps, Wairio, and Kaitangata. Westport is also used and Newcastle in normal times. A number of low-class lignites are in considerable demand during times of shortage. The railage on coal to Invercargill changed as follows :— Table 03. 1914. 1918. s. d. s. d. From Kaitangata .. .. .. .. ..72 89 „ Wairio .. .. .. .. .. ..49 59 „ Nightcaps .. .. .. .. 411 6 0 Lignites .. .. .. .. .. ..311 49 Freight from Westport to Bluff .. .. .. ..8 0 12 0 Newcastle .. .. .. 11 6 18 6 The wharfage at Bluff is Is. 6d., and the railage, Bluff to Invercargill, 4s. on New Zealand bituminous and 2s. lid. on brown coal. Distribution is in the hands of about thirteen dealers, some of whom deal almost solely in coal. These dealers purchase from the mines and retail to consumers. There is very little wholesale trade. Those requiring coal in large quantities for industrial and other purposes buy direct from the mines. The coal is railed direct to Invercargill, and carted from the station to the coalyards. The methods of delivery are much the same as those in other centres. Prices are for cash, for payment the month following delivery, and credit. There is a difference of 4s. between the cash and credit prices ; 5 per cent, is taken off for payment within a month. About half the orders are for cash, the remaining trade being divided between monthly discount and credit. The Coal-merchants' Association comprises all those engaged in the coal trade in Invercargill and fixes the retail prices. No State coal is marketed in Invercargill. (b.) Prices. —The following table states the position in October, 1918, in regard to retailers' prime costs, prices, and gross profits :—

Table 64.—Statement showing Prime Costs and Gross Profits in a Retail Coal Business at Invercargill.

These margins are greater than quoted for Dunedin on page 52. Businesses in Dunedin are on a larger scale and depend to a less degree for their total profits on their coal trade. Table 65 analyses the cost as shown in the first column of Table 64 into mine-cost and transportcost.

Table 65.—Analysis of Cost at Invercargill Railway, October, 1918.

Transport charges account for about a quarter of the retail price of the standard house coal in this centre. The next table shows the changes in the price over the period under review.

Table 66. —Increases in Retail Cash Prices of House Coal, Invercargill.

The main part of the increase is due to the increased cost of mining. The next table shows the proportional parts of the increase due to each factor.

Kind of Coal. Cost Price, Betail Credit Price Invercargill Bail- j Betail Cash Price. Cross I'rolit. less 5 per Cent, way-station. discount. Gross I'rolit. Westport coal Kaitangata coal .. Wairio coal Sightcaps coal Mightcaps nuts .. Lignite .. Joke £ s. d. 2 3 2 I 17 3 I 9 9 I 3 0 0 1.4 6 0 14 0 1 10 0 £ s. d. 2 14 6 2 6 6 1 19 6 1 12 6 1 4 6 I 3 6 I 16 0 s. d. II 4 9 3 9 9 9 6 10 0 9 6 6 0 £ s. d. 2 15 7 2 8 0 2 1 4 I .14 8 I 7 1 1 0 1 1 16 7 s. d. 12 5 10 9 11 7 1 I 8 12 7 12 I 6 7

Kind of Coal. Cost of Coal. Sea Freight, .Railage, and Wharfs Sea Freight, .Railage, and Wharfage. Total. Westport Kaitangata Wairio .. Nightcaps Lignite £ s. d. s. d. ( 12 0 freight ~) s. d. 1 15 9* | 3 11 railage J-17 5 ( 1 6 wharfage J 18 0 8 91 14 0 6 9 I v, -, , 0 17 0 6 0 M onl y 0 9 3 4 9J £ 8. d. 2 3 2 1 17 3 1 9 9 1 3 0 0 14 0 * Including 2s. lOd. or 3s. West Coast railage.

Kaitangata Nightcaps Wairio 1 Kind of Coal. .. i August, 1014. October, 1918. £ s. d. £ s. d. 18 0 2 0 0 12 0 1 12 0 14 0 .1 19 0 Total. Increase, per Cent. £ s. d. 0 18 0 04 0 10 0 48 0 15 0 04