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Chapter lll.—The Cost of Distribution op Coal— continued. page 16. Estimate of the present cost of retailing coal in Wellington, with estimate of changes in such costs since 1914 and the causes of these changes .. .. .. .. 44 17. The rate of profit obtained in dealing in coal under present conditions in Wellington is reasonable . . . . .. . . .. .. . . .. 45 18. Chief factors of the distribution of coal in Christchurch ; cost of carriage of coal to Christchurch 45 19. Cash prices of house coal at Christchurch, 1914-18, showing a range of increase from 22 per cent, to 68 per cent. Explanation of these increases. Estimates of cost of retailing household coal in Christchurch. Distribution of the increase in the cost of retail coal .. 46 20. Notes on freight, bagging and sacks, cartage, loss in weight .. .. .. 48 21. Changes in the price of lignite coals .. . . .. .. .. .... 49 22. Prices of Australian coal at Christchurch, wholesale and retail .. .. .. 49 23. Increase in the cost of conducting a retail business. Broad range of retail prices in Christchurch .. .. .. .. .. .. .. .. .. 50 24. The rate of profit in present conditions is not unduly high .. .. .. .. 50 25. Price of State coal at Lyttelton and Christchurch .. .. .. .. .. 50 26. Chief factors of the distribution of coal at Dunedin ; carriage of coal to Dunedin .. .. 51 27. Retail prices of house coal at Dunedin, 1914-18 ; changes in these prices ; the amount of increase due to each particular cost .. .. .. .. .. 51 28. Estimates of the cost of handling the coal .. .. .. . . . . 52 29. Rate of profit .. .. .. .. .. .. .. .. .. 52 30. Chief factors of the distribution of coal at Invercargill; carriage of coal to Invercargill .. 53 31. The retail price of coal in October, 1918 ; changes in this price over the period with apportionments of the increase in each particular cost .. ... .. .. .. 53 32. Estimate of the present cost of delivery . . .. .. .. .. .. 54 33. The rate of profit cannot be regarded as excessive .. . . .. .. .. 55 34. Comparison of the total increase in the cash retail prices of standard household coals during the period 1913-18 at the several centres, with division into its separate parts .. 55 Chapter IV.—Prices and Profits in the Coal Industry and Trade. 1. The difference between the cost and the sale price ; the average not selling-price per ton of coal at particular mines, 1913-18. The average selling-price increased in every case. The selling-price for those mines for which data is available over the whole period increased, when due allowance has been made for relative outputs, by 36 per cent, as compared with an increase in total cost of production of 37 per cent. Comparison of selling-prices of bituminous, semi-bituminous, and brown coals, and of increases in them .. 56 2. Mine profit per ton also expressed as a percentage of the total cost per ton. For the mines giving returns over the whole period, the average margins between cost and price are 9d. and iOd. a ton for 1913 and 1918 respectively, or 5-6 and 4-5 per cent, of the cost of' production. A comparison of the similar margins for all mines giving data, whether over the whole period or not, shows a reduction of 9d. to sd. per ton, the latter being 2-2 per cent, of the average cost .. .. .. .. .. .. .. 57 3. Average costs, soiling-prices, and profits per ton for the industry as a whole, 1913-18, showing clearly that the mining companies have not increased their gains over the industry during the war relatively to their costs .. .. .. .. .. .. .. 58 4. Difficulties of assessing the exact amount of the true rate of profit. Insufficient provision made for certain expenses inseparable from the industry. Definition of gross profits .. 58 5. The measurement of the rate of profit. Rates of dividend declared by the chief coal-mining companies of New Zealand, 1913-18. Average weighted dividend 4'B per cent. .. 59 6. The gains of the companies, 1913-18 ; the ratio of the excess of profits over losses to capital. The average rate of profit, calculated and weighted according to the capital of each company, is just over 5 per cent., out of which the industry has to make provision for return to the shareholders by way of interest and a large part of the insurance against the risks associated with the industry, as well as profit, and a considerable part of the depreciation and sinking-fund charges .. .. .. .. .. .. .. 60 7. It is impossible to obtain an exact measure of the actual net gain of the shareholders .. 61 8. There have been large losses of capital in the coal-mining industry in New Zealand in the past 61 9. Profits made in the transport of coal. Railway profit cannot be measured with any approximation to accuracy. In certain cases the profit on the carriage of coal by sea ranges from Is. to Is. 3d. over the period 1914-17, out of which depreciation, sinking fund, and periodical overhaul charges have to be provided. The increase in freight-rates may be regarded as moderate in the light of the increase of cost to the shipowner, the enormous increase in the world demand for tonnage, the great shortage of shipping, and the great revenue that could have been obtained by using the ships beyond the New Zealand trade. Shipping-rates in Now Zealand trade appear to have been considerably lower than in other parts of the world .. .. .. .. . . .. .. .. .. 61 10. The general conclusion as to profits in the wholesale and retail distributing trade is that, except in the case cf those dealers who are engaged in the retail trade on a large scale conjointly with the wholesale business, the difference between the cost of coal to the dealers and the price received by them affords no more than a mere living to those engaged in it .. .. .. .. .. .. . .' .. .. 62