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1939. NEW ZEALAND.

STATE COAL-MINES (REPORT ON THE WORKING OF) FOR THE YEAR ENDED 31st MARCH, 1939.

Prepared in accordance with the requirements of Section 184 of the Goal-mines Act, 1925.

The Superintendent, State Coal-mines, Greymouth, to the Under-Secretary, Minos Department, Wellington. 12th May, 1939. Sir, — I have the honour to submit my annual report on the working of the State coal-mines for the year ended 31st March, 1939. Liverpool Colliery. Coal-winning. —The gross total output for the year was 136,533 tons 1 cwt., a decrease of 1,273 tons 10 cwt. when compared with the figures of the previous year. After making allowances for stocks on hand, coal purchased, surplus stock taken on charge, and deducting mine consumption and waste there remained for disposal 133,849 tons 14 cwt. 2 qr., which is accounted for as follows

The gross total output from the colliery since its inception amounts to 3,141,783 tons 7 cwt. During the year the colliery worked on 202 days, an increase of 1 day 5 hours when compared with the previous year. The possible working-days, excluding Saturdays and union holidays, were 245. The difference between the days worked and the possible working-days is accounted for as follows : Lack of trade, 9 ; stoppage on account of fire in mine, 10 ; stoppage on account of building burned down, 1 ; shortage of railway wagons, 2 ; slips on railway-line, 8 ; stoppage re bathhouse, 1 ; stoppage re trucker, 5 ; stoppage re boys, 2 ; deaths of employees, 3 ; death of co-operative party employee, i ; failure of examining deputies to report, 1 ; a total of 43 days. Employees. —In connection with coal-winning the average number of persons employed in and about the mine was 314, made up as follows—Underground: Coal-hewers, 92 ; deputies, shiftmen, and truckers, 140 ; youths, 2. On the surface : 62 men and 18 youths.

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Screened. | Unscreened. Small. Total. Tons cwt. qr. Tons cwt. qr. Tons cwt. qr. Tons cwt. qr. Shipped .. •• 2,280 2 1 12,198 12 2 39,881 2 0 54,359 16 3 Railed Canterbury .. 29,906 16 3 8,391 0 0 25,480 9 1 63,778 6 0 Local sales .. .. 4,754 14 3 2,121 5 2 4,126 0 0 11,002 0 1 Mine sales .. .. ■ • 49 0 0 .. 49 0 0 Sales to workmen and free .. 1,954 2 0 .. 1,954 2 0 issues Stock in bin and yard .. 21 0 0 748 0 0 1,809 14 2 2,578 14 2 Stock on wharf .. .. . • 127 15 0 .. 127 15 0 36,962 13 3 25,589 15 0 71,297 5 3 133,849 14 2 Used on works .. .. .. 4,700 0 0 .. 4,700 0 0 Waste .. .. 1,026 7 0 .. 1,026 7 0 Totals .. .. 36,962 13 3 31,316 2 0 71,297 5 3 139,576 1 2

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Expenditure.—The total expenditure in connection with coal-winning for wages, stores, mine timber, and compensation, together with subsidies on railway tickets and cost of fuel used on works, amounted to £106,117 2s. 3d., as compared with £108,208 2s. 2d., for the previous year. Coal-hewers' Average Daily Earnings.—'The coal-hewers' average daily earnings (gross) were £2 os. Id. per day, and after deducting stores (explosives) their net return was £1 16s. lid., an increase of Bd. per day when compared with the figures for last year. Daily Output. —The average daily mine output was 675 tons 18 cwt. and the coal-hewers' average daily output was 8 tons, as compared with 687 tons 15 cwt. and 7 tons 17 cwt. respectively for the previous year. Deficiencies.—The total amount paid under the minimum-wage clause was £43 16s. Bd. Accidents.—ln addition to numerous accidents of a minor nature, three fatal and two serious accidents occurred in the Liverpool Colliery:— Fatal Accidents — On sth May, 1938, a miner was struck on the head by a jig prop, the injuries proving fatal on the following day. On 20th May a miner employed in the Liverpool Colliery strained himself by slipping on a flat-sheet. He died on 21st July as a direct result of acute nephritis contracted following an operation for a direct inguinal hernia. On 20th September a trucker was struck by a fall of coal, his spine being fractured. His injuries proved fatal on 19th December, 1938. Serious Accidents— On the 16th November, 1938, a collier was struck by a fall of coal, fracturing his arm and ribs. On 24th March, 1939, a miner, received a depressed fracture of the skull and serious scalp wounds as a result of a fall of coal in the Liverpool Colliery. The total payments under the Workers' Compensation Act amounted to £5,087 2s. 9d. On the output produced, this works out to a cost of 8-94 d. per ton. Outbreak of Fire. —Fire broke out in the No. 1 Morgan east section on 15th August, 1938. The area was sealed off with concrete stoppings. Mine-workings : Developments.—Anderson Dip Section : No. 2 dip was driven a distance of approximately 10 chains on a gradient of lin 2. Two levels were broken away in an easterly and a westerly direction. The coal is of good quality, 10 ft. to 12ft. in thickness. Roof conditions are adverse in the main dip, but improve in the levels. An increase in the quantity of water in the dip has been experienced, and it will shortly be necessary to provide extra power for pumping purposes. Kimbell East Level, No. 8 Bank : This level, which has been standing for a period of three years, has been cleaned up and retimbered, and driven for a distance of 3 chains in coal 5 ft. in thickness. A false roof 10 in. thick has been taken down and stowed. A companion level will shortly be started for prospecting purposes. Kimbell West Dip : Levels to the east have been driven approximately 7 chains in good coal. Steeply inclined headings to the rise are being driven. Cross-cut No. 3 Morgan West: A pair of headings have been driven a distance of 7 chains in good quality of coal, the gradient being 1 in 2. For ventilation purposes a holing was made to the No. 3 section, Morgan west. Another pair of headings are to be driven 5 chains outbye of the crosscut headings to form a panel. The coal in this area, as proved by a borehole, is 20 ft. in thickness. Owing to the steep gradients this area has not previously been worked. During the year the greater portion of the output was won from pillar-extraction in the Morgan and Kimbell seams. No. 2 Bank, Morgan Bast is being reroaded for further pillar-extraction and to provide places for those lost by fire in the No. 1 bank, Morgan east. Stoppings. —A barrier, the entire width of the Morgan workings, has been completed with wooden stoppings as a precaution against fire outbreaks. Adjacent to the fire area, No. 1 bank, Morgan east, concrete stoppings have been erected to efficiently seal off the fire area. In addition, thirty-five wooden stoppings and seven concrete stoppings have been erected to form a panel. A second line of retreat consists of twenty-eight wooden stoppings. Repairs.—All necessary repairs to timber, roadways, &c., have been carried out, and the mine is generally in good order. Future Developments.—lt is proposed to extend the dip workings in the Morgan and Kimbell seams. The necessary plant, &c., for this work has been placed on order. Stone-dusting.—Work under this heading has been continued. The total number of samples taken from the Liverpool Colliery was 573. In addition, seventy-five samples from co-operative mines were analysed. Plant and Machinery.—The whole of the plant, machinery, and buildings has been maintained in good order. New ropes have been put on the hoist and main haulage roads. Air-pipes. —A line of 6 in.-compressed-air pipes has been laid to the Kimbell Junction, and a 4 in. line to the Morgan Junction in preparation for driving the dip workings. Viaduct. —The subsidence mentioned in my last annual report still continues, and it has been found necessary to constantly reline the viaduct throughout the year. It has not yet been considered necessary to suspend the viaduct from ropes, but this project is still being kept in view.

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James Colliery. Coal-winning.—The gross total output for the year was 42,649 tons 3 cwt., an increase of 40 tons 16 cwt. when compared with the figures of last year. After making allowances for stocks on hand at the beginning of the year and deducting mine consumption and waste there remained for disposal 46,622 tons 19 cwt. 1 qr., which is accounted for as follows : —

The gross total output from this colliery since its inception amounts to 574,827 tons 17 cwt. Days worked.—During the year the colliery worked on 208 days, a decrease of 32 days when compared with, the previous year. The possible working-days, excluding Saturdays and union holidays, were 245. The difference between the days worked and the possible working-days is accounted for as follows : Lack of trade, 18; stoppage re bathhouse, 2 ; death of employee, 1 ; stoppage re truckers, 6 ; stoppage re deficiencies, 2 ; repairs to Christchurch Depot turntable, 5 ; stoppage re bus, 1 ; stoppage re tokens, 2 : a total of 37 days. Employees. —In connection with coal-winning, the average number of persons employed in and about the mine was 97, made up as follows-- Underground : Coal-hewers, 30 ; deputies, shiftmen, and truckers, 44 ; youths, 3. On the surface : 17 men and 3 youths. Expenditure.—The total expenditure in connection with coal-winning for wages, stores, mine timber, and compensation, together with subsidies on bus fares, cost of electric power, and coal used on works, amounted to £32,703 7s. od., as compared with £31,132 7s. sd. for the previous year. Coal-hewers' Average Daily Earnings.—The coal-hewers' average daily earnings (gross) were £1 17s. 6d., and after deducting stores (explosives) their net return was £1 10s. Bd., an increase of 2s. 9d. per day compared with the previous year. Daily Output. —The average daily mine output was 205 tons 1 cwt., and the coal-hewers' average daily output was 7 tons, as compared with 177 tons 10 cwt. and 6 tons 10 cwt. respectively for the previous year. Deficiencies.- —The total amount paid under the minimum-wage clause during the year was £58 6s. lid. Accidents. —During the year there were a number of minor accidents, but none of a serious nature. The total payments under the Workers' Compensation Act amounted to £1,038 6s. 9d. On the output produced, this works out at a cost of 5-84 d. per ton. Stone-dusting.—Work under this heading has been carried out. The number of samples taken from the mine and analysed was 131. Plant and Machinery. —Maintenance of the plant and machinery has been somewhat more costly than usual. As the Strongman Colliery reaches the fully productive stage a change-over from the old James Mine rope-road and haulage plant to that of the new mine will take place, when a reduction of maintenance-costs can be looked for. Underground Working.—Coal-winning operations during the year were carried on in both pillar and solid working. In the sections lying to the west of the main rope-road pillar-extraction has been completed and both sections closed down. In the west section, Cannel Creek, pillar-extraction has been carried on throughout the year. To the east of the rope-road, Cannel Creek, the development work was discontinued pending the completion of the rope-road to the Strongman Colliery. In the new dip section development work has been continued. The direction of the main development headings has been changed from north to north-easterly. The levels being driven in a northerly direction have encountered a fault and have been stopped. Three levels driven to the south have also been stopped on a fault-line. Distance between faults approximately 10 chains. Pillar Sections.—Coal is being won from pillar-extraction in two sections lying to the west of the James Mine rope-road. The work of extraction will be completed during the coming year.

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I Soreened. Small. Slack. Total. Tons cwt. qr. Tons owt. qr. Tons cwt. qr. Tons owt. qr. Tons ewt. qr. Shipped .. .. 9,377 3 1 2,657 16 3 .. 7,416 8 2 19,451 8 2 Railed Canterbury .. 12,782 10 2 830 15 1 999 5 3 147 18 3 14,760 10 2 Local sales .. .. 66 15 2 418 19 3 .. 170 3 1 655 18 1 Mine sales Sold to workmen and .. 749 12 0 .. .. 749 12 0 free issues Stock in bin and yard 108 0 0 82 0 0 .. 321 0 0 511 0 0 Stock on wharf .. 47 1 0 .. .. 45 7 0 92 8 0 Stock on dump .. .. .. .. 10,402 2 0 10,402 2 0 22,381 10 1 4,739 3 3 999. 5 3 18,502 19 2 46,622 19 1 Used on works .. .. 176 0 0 .. .. 176 0 0 Waste .. .. .. 1,039 3 0 .. .. 1,039 3 0 Totals .. .. 22,381 10 1 5,954 6 3 999 5 3 18,502 19 2 47,838 2 1

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Stuongman Colliery. Coal-winning. —This colliery commenced production on the 31st January, 1939, and the gross total output from that date to 31st March, 1939, was 1,497 tons 10 cwt. After deducting mine consumption and waste there remained for disposal 1,467 tons 15 cwt. which is accounted for as follows :—

From its inception the colliery worked on 39 days. The possible working-days, excluding Saturdays and union holidays, were 4-4. The difference between the days worked and the possible working-days is accounted for as follows : Rope not run on account James Mine not working, 3; stoppage re tokens, 2 : a total of 5 days. Employees.—The average number of employees in connection witli coal-winning was —Underground, 24; on the surface, 3 men and 1 boy. Development Work.—The average number of employees on development work throughout the year was 67 men and 4 boys. All stone tunnels in connection with the Strongman Colliery have been completed, the lengths of which are as follows :— Chains. No. 1 tunnel over top of James Mine haulage road to Cannel Greek .. 29 No. 2 tunnel from Cannel Creek to Nine-mile Creek .. .. 35 No. 3 tunnel on rope-road Nine-mile Creek .. .. .. .. 2-8 No. 4 tunnel from Nine-mile Creek to Coal-face .. .. .. 29 No. 5 return airway .. .. .. .. .. 15 Upcast Shaft. .. .. .. .. .. .. .. 0-5 Total driving in stone .. .. .. .. .. 111-3 Rope-road.—The spoil from the various tunnels was utilized for surface fillings on the rope-road, The work of grading the rope-road in the James Mine has been completed to a point where it will connect with the tunnel driven over the old rope-road. The road for the full tubs has been laid with 90 lb. to the yard tramway rails, and the road for the empty trucks has been laid with 30 lb. rails on the steep gradients, and with 90 lb. rails where the gradients are slight. The date for the completion of the change-over of the haulage system from the one now used through the James Mine to the permanent system depends upon the completion of pillar-extraction in the west sections of the James Colliery. The approximate date of change will be December, 1939. From the coal-face, Strongman Colliery, to cross-cut, James Colliery, a rope-road 113 chains long has been completed, 98 chains of which form part of the permanent road for the conveying of the coal from the new mine to the bin at Rapahoe. Coal-seam. —The top seam, 23 ft. thick, was struck on 31st January, 1939, a section of which, taken from the borehole close to the fault, is as follows: — On floor— Ft. in. Coal .. .. .. .. .. .. .. ..20 Stone .. .. .. .. .. .. .. ..08 Coal .. .. .. .. .. .. .. ..16 Stone .. .. .. .. .. .. .. ..10 Stone and coal .. .. .. .. .. .. ..20 Coal .. .. .. .. .. .. .. 15 6 On roof: Shale .. . .. .. .. .. ..06 23 2

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Screened. Unscreened. Small. Total. Tons cwt. qr. Tons cwt. qr. Tons cwt. qr. Tons cwt. qr. Shipped .. .. .. 500 16 2 .. 500 16 2 Railed Canterbury .. 17 4 2 336 4-3 .. 353 9 1 Local sales .. .. .. 81 5 1 .. 81 5 1 Mine sales .. .. .. 300 .. 300 Sales to workmen and free .. 174 14 3 .. 174 14 3 Issues Stock in bin and yard .. .. 214 3 0 .. 214 3 0 Stock on wharf .. .. .. 140 6 1 .. 140 6 1 17 4 2 1,450 10 2 .. 1,467 15 0 Used on works .. .. .. 16 0 0 .. 16 0 0 Waste .. .. .. .. 13 15 0 .. 13 15 0 Totals .. .. 17 4 2 1,480 5 2 .. 1,497 10 0

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The coal is of good quality, and finds a ready market as a. household, steam, and gas eoal. A typical analysis is as follows : — Proximate Analysis (on air-dried basis) — Moisture .. ~ .. .. .. 7-2 Volatile matter .. .. .. .. 39-9 Fixed carbon .. .. .. .. 50-6 Ash .. .. .. .. ..2-3 100-0 Sulphur .. .. .. .. .. 0-25 Calorific value .. .. .. ' .. 12,910 B.Th.U. per pound. Coke .. .. .. .. .. Non-swollen lustrous No. 3. Screening-plant.—The screening and storage plant ordered from Nortons-Tividale, England, arrived, and the erection was immediately commenced. A short description of the plant is as follows : — Tippler.—The tippler is 6 ft. 6 in. in diameter, two-speed type designed to prevent spilling of coal, and fully automatic in action. The coal will be discharged on to an inclined reciprocating balanced screen 5 ft. wide and SB ft. long screening to 1J in. and —1-| in. to -ff in. The coal over 1J in. passes over the screen and is delivered to a 3 ft. wide flat rubber conveying and picking belt. The material through the f in. mesh is delivered by a fixed chute on to a balanced horizontal high-speed screen which screens out all eoal below £in. The —Jin. +Jin. coal passes over this screen, and is delivered on to a 2 ft. 6 in. loading-band, and all below fin. mesh to a hopper for loading into wagons. By means of doors in the screens, and fixed chutes, it will be possible to make the following mixtures and sizes: +l£in., —1J in. to Jin., —fin. to Jin. ; also run-of-mine coal. Flat rubber conveyors are to be used for picking-belts. Each has a hingod lowering jib for loading the coal into railway wagons without breakage. The steel storage bin is designed to hold the following sizes and quantities : —J in., 400 tons ; — J in., to Jin., 400 tons'; — ljin. to fin., 400 tons. A scraper conveyor olevates the — ljin. coal to the top of the storage bin, where it is screened to the various sizes. Spiral chutes minimize the breakage of the coal that is delivered to the bin for storage purposes. Bathhouse.—The reinforced concrete bathhouse, 60 ft. by 40 ft. with 14 ft. walls, has been erected adjacent to the mine-mouth. The bathhouse is designed to accommodate 100 men. The drying arrangements are designed on the latest air conditioning and heating method. The boiler now operating consists of fifty-five Babcoclc Wilcox boiler tubes, heated by a No. 4 Iron Fireman automatic stoker with thermostatic control, supplying hot water to a heater unit. The thermostat so controls the heater that there is no waste of fuel. The hot water is fed to a heating unit consisting of two Trane hot-water heating coils each 36 in. by 24 in. by 7J in. (two rows) capable of raising 3,500 cubic feet of air per minute from 60° to 150°. A thrust pump, direct coupled to a |-horse-power electric motor, capable of delivering 15 gallons of water per minute against a 5 ft. head, is attached to the return pipe of the heater unit, and is automatically controlled by a thermostat in the drying-room. The thermostat has a range of adjustment from 40° to 280° F., and can be set to control the air within a limit of from 5° to 10° F. A 17| in. Sirocco fan driven by an electric motor is attached to the air-heating unit, and forces the air, through suitable duct work, on to the damp clothes. The duct work is so arranged that cold air can be drawn in from the outside atmosphere or a damper can close off the outside air, and the fan then recirculates the air in the drying-chamber and bathhouse. The hot air from the drying-room is exhausted from the drying-room under the doors leading to the central part of the bathhouse. Ventilation. —A reinforced-concrete shaft 34 ft. in depth having been completed, preparations are being made for the transfer of the Sirocco fan from the James Mine. Goal-cutting.—A Korfmann coal-cutting machine has been purchased, and is now being used. Owing to the presence of granite pebbles in the coal difficulty has been experienced in cutting the coal-faces. The cutter picks, on striking a pebble, wear rapidly, and it is necessary to change the picks frequently, thus slowing up the cutting-rate and throwing excessive strain on the cutter chain. Despite these drawbacks, the machine is giving good service. Accidents. —No serious accidents occurred at the Strongman Colliery throughout the year. C. J. Strongman, Superintendent.

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NEW ZEALAND STATE COAL-MINES. Colliery Sales Accounts for the Year ended 31st March, 1939.

Colliery Working Accounts for the Year ended 31st March, 1939.

Colliery Profit and Loss Accounts for the Year ended 31st March, 1939.

McDonald Colliery Profit and Loss Account for the Year ended 31st March, 1939.

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Dr. Liverpool, j James. Or. Liverpool. James. £ s. d. £ s. d. £ s. d. £ s. d. Railway haulage .. .. 10,351 18 11 2,927 3 2 Sales of coal f.o.r., c.i.f., and Wharfage .. .. .. 2,241 11 5 803 4 9 f.o.b. .. .. .. 165,423 1 10 49,579 4 3 Special rate .. .. 640 9 0 230 18 6 Marine freight .. .. 35,187 10 10 11,266 10 1 48,421 10 2 15,227 16 6 Working Account: Coal sales net f.o.r. .. .. .. 117,001 11 8 34,351 7 9 £165,423 1 10 £49,579 4 3 £165,423 1 10 £49,579 4 3

Dr. Liverpool. James. Or. Liverpool. James. £ s. d. £ s. d. £ s. d. £ s. d. Stocks on hand, 1st April, 1938 3,200 6 2 833 18 0 Sales Account: Sales of coal 117,001 11 8 34,351 7 9 Coal-winning— f.o.r. Wages .. .. .. 85,973 2 7 26,813 1 6 Sales of power .. .. 66 5 0 Stores and materials .. 8,363 11 0 1,191 11 4 Stocks on hand at 31st March, Rail and bus fares .. .. 585 0 7 318 12 11 1939, at mine, wharf, and • Coal purchased .. .. 71 2 3 144 15 10 afloat, as per Stock Account 1,799 11 9 751 19 10 Electric power .. .. ■. 326 13 8 Surplus in bin stocks .. 804 3 4 98,193 2 7 29,628 13 3 Gross profit: To Profit and Loss Account .. .. •• 21,478 9 2 5,474 14 4 £119,671 11 9 £35,103 7 7 £119,671 11 9 £35,103 7 7

Dr. Liverpool. James. Gr. Liverpool. James. £ s. d. £ s. d. £ s. d. £ s. d. Salaries .. 2,575 17 0 831 18 5 Gross profit at mine . . .. 21,478 9 2 5,474 14 4 Rents .. . • • ■ ■ • 64 1 1 Bents .. .. .. 419 2 5 Interest .. .. •• 2,674 18 10 300 19 6 Net loss: Transferred to General Travelling-expenses .. •• 127 11 7 31 17 11 Profit and Loss Account .. .. 699 17 4 Printing and stationery .. 120 8 8 30 2 2 Repairs and maintenance .. 4,336 1 7 1,983 6 6 Telegrams and postages .. 341 15 6 82 18 10 Insurance .. .. . • 4,694 5 6 1,462 10 9 Coal-miners' Relief Fund .. 284 7 9 76 3 8 General expenses .. • • 706 19 1 169 0 1 Audit fees .. .. •. 103 7 7 25 16 10 Superannuation Fund subsidy 48 4 9 12 1 2 Depreciation • ■ • • 4,423 0 10 995 2 2 Rescue-station levy .. .. 412 5 4 108 12 7 20,849 4 0 6,174 11 8 Net profit : Transferred to General Profit and Loss Account .. .. •• 1,048 7 7 £21,897 11 7 £6,174 11 8 £21,897 11 7 £6,174 11 8

Dr. £ s. d. Or, £ s. d. Interest .. .. .. .. •• 1,879 6 6 Rents .. .. .. .. .. 200 5 0 Depreciation .. .. .. .. 1,230 15 3 Royalties .. .. .. .. .. 5,091 16 8 Access road .. .. .. .. •• 748 3 11 Travelling-expenses .. .. .. • • 8 6 0 Net profit: Transferred to General Profit and Loss Account .. •* .. .. •• 1,425 10 0 £5,292 1 8 £5,292 1 8

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NEW ZEALAND STATE COAL-MINES— continued. Depot Trading Accounts for the Year ended 31st March, 1939.

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Dr. J Wellington, j Christchurcii. Cr. \ Wellington. | Christchubch. I I | 1 ! i £ s. d. £ s. d. £ s. d. £ s. d. Stocks on hand, 1st April, 1938 3,367 0 4 10,525 1 7 Sales of coal .. .. 127,652 19 5 72,622 8 5 Purcliases of coal .. .. 117,066 12 6 44,791 9 3 Sales of coke, wood, &c. .. 6,110 19 5 2,881 6 9 Purchases of wood, coke, &e. .. 4,954 2 7 2,426 15 9 Stocks on liand at 31st March, Wharfage and freights .. 2,105 5 2 3 1 7 1939 — Haulage to depot .. .. 793 2 3 19,754 2 4 Coal .. .. .. 3,054 17 7 9,432 0 1 Wages: Discharging .. 180 13 5 435 9 8 Wood, coke, &c. .. .. 229 19 2 1,067 12 2 Gross profit: To Profit and Loss Account .. .. 8,581 19 4 8,067 7 3 £137,048 15 7 £86,003 7 5 £137,048 15 7 £86,003 7 5 = I Depot Profit and Loss Accounts foe the Year ended 31st March, 1939. Dr. Wellington. Chrlstchtjrch. Wanganui. Cr. Wellington. Chbistohuboh. Wanganui. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Wages: Yard .. .. .. 1,171 2 4 1,638 15 0 .. Trading Accounts: Gross profit 8,581 19 4 8,067 7 3 Salaries .. .. .. .. 1,611 17 2 1,390 0 6 .. Rents .. .. .. .. .. .. 29 0 0 Rents .. .. .. .. 388 16 0 123 12 0 .. Net loss: To General Profit and Loss Interest .. .. .. ■■ .273 4 7 115 11 2 .. Account .. .. .. .. .. .. 15 12 1 Travelling-expenses .. .. . ■ 12815 79119 Repairs and maintenance .. .. 371 13 0 408 12 4 22 12 9 Postages and telegrams .. .. 118 0 7 116 1 11 Printing and stationery .. .. 106 2 5 87 6 6 Insurance .. .. .. ■ ■ 36 1 0 40 16 9 2 9 6 Cartage .. .. .. .. 2,562 3 11 2,385 17 4 Sacks .. .. .. .. 158 14 4 139 3 5 General expenses .. .. .. 696 8 8 326 15 4 Audit fees .. .. .. .. 85 7 9 43 1 9 Superannuation Fund subsidy .. 12 12 1 13 13 2 Reserve for bad debts .. .. 94 16 2 27 1 4 Rates .. .. .. .. 13 12 9 Depreciation .. .. .. 336 13 7 206 3 11 19 9 10 .Vet profit: To General Profit and Loss Account .. .. .. .. 416117 92531 £8,581 19 4 £8,067 7 3 £44 12 1 £8,581 19 4 £8,067 7 3 £44 12 1

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NEW ZEALAND STATE COAL MINES —continued. General Promt and Loss Account for the Year ended 31st March, 1939. Dr. £ s. d. £ s. d. Or. £ g. d. £ s. d. Net loss— Net profit — James Colliery .. .. 699 17 4 * Liverpool Colliery .. .. 1,048 7 7 Wanganui Depot .. .. 15 12 1 Mao Donald Colliery .. .. 1,425 10 0 715 9 5 Wellington Depot .. 416 11 7 Runanga Water-supply soheme .. .. 1,000 0 0 CHristchurch Depot .. .. 925 3 1 Balance: Net profit for year oarried down .. 13,313 1 11 3,815 12 3 Net recoveries— Seddonville Colliery .. .. 88 6 1 Royalties .. . . 4,587 3 9 Stores sales . .. 224 14 (j 4,900 4 4 Net revenue from hire of plant, buildings, &c. .. 128 12 6 Interest on investments .. .. .. 6,184 2 3 £15,028 11 4 £15,028 11 4 £ s. d. £ s. d. Sinking Fund Account for redemption of loan Net profit for year .. .. .. .. 13,313 1 11 capital .. .. .. .. .. 11,766 13 8 Balance : Net surplus for year .. .. 1,546 8 3 £13,313 1 11 £13,313 1 11

8

C.—2a

NEW ZEALAND STATE COAL MINES— continued. Balance-sheet as at 31st March, 1939. Liabilities. Assets. Loan capital— £ s. d. £ s. d. Collieries. £s. d. £ s. a. Securities at 3 per cent. .. .. .. .. .. 95,000 0 0 Development and property accounts .. .. .. 187,241 17 2 Securities at 3J per cent. .. .. .. .. .. 416 13 4 Machinery, plant, ropes, and rolling-stock .. .. .. 49,411 7 11 Securities at 4 per cent. .. .. .. .. .. 59,301 13 4 Electric plant (James Colliery) .. .. .. .. 2,291 15 5 154,718 6 8 Buildings at mines .. .. .. .. .. 14,186 15 6 Accrued interest on loan capital .. .. .. .. .. 1,047 13 5 Cottages at mines .. .. .. .. .. 3,620 9 7 Departmental. Sundry. Plantations at mines .. .. .. .. .. 678 11 6 Sundry creditors— £ s. d. £ s. d. Coal stocks (bins, wharf, and afloat) .. .. .. 3,732 8 6 Liverpool Colliery .. .. 3,460 19 8 13,822 8 10 17,283 8 6 Stores on hand .. .. .. .. .. .. 58,862 13 8 James Colliery .. .. .. 621 10 8 2,113 7 2 2,734 17 10 Wellington Depot .. .. 347 5 2 571 0 6 918 5 8 320,025 19 3 Christchurch Depot .. .. 5,353 4 1 246 16 9 5,600 0 10 Less provisionally written off .. .. .. .. 158 1 3 Wanganui Depot.. .. .. .. 6 10 0 6 10 0 319,867 18 0 Strongman Colliery .. .. 131 2 4 1,216 15 11 1,347 18 3 Prospecting on State Coal Reserve .. .. .. .. .. 426 14 3 Plant, equipment, &c., on hire .. .. .. .. .. 706 13 4 9,914 1 11 17,976 19 2 27,891 1 1 DepotsDeposits on contracts .. .. .. .. .. .. 1,110 0 0 Property Accounts .. .. .. .. .. 10,267 15 6 Sinking Fund .. .. .. .. .. .. .. 11,767 3 8 Stocks and stores on hand.. .. .. .. .. 15,472 5 1 Reserves— General Reserve .. .. .. .. .. .. 220, 107 5 5 25,740 0 7 Bad Debts Reserve .. .. .. .. .. 1,240 3 9 Less provisionally written off .. .. .. .. 1,491 9 1 Accident Insurance Reserve .. .. .. .. 8,066 6 4 24,248 11 6 229,413 15 6 Sinking Fund investments .. .. .. .. .. .. 11,767 3 8 General Profit and Loss Account: Net surplus for year .. .. .. .. 1,546 8 3 Housing advances to workmen .. .. .. .. 11,540 7 8 Interest accrued due .. .. .. .. .. 138 19 7 11,679 7 3 Departmental. Sundry. Sundry debtors— £ s. d. £ s. d. Liverpool Colliery .. .. 77 7 8 4,794 17 8 4,872 5 4 James Colliery .. .. .. 24 10 0 12 1 11 36 11 11 Mac Donald Colliery .. .. .. 1,123 14 1 1,123 14 1 Wellington Depot .. .. 1,572 18 8 35,627 9 6 37,200 8 2 Christchurch Depot .. .. 169 14 1 6,187 13 1 6,357 7 2 Strongman Colliery .. .. 11 6 10 468 5 9 479 12 7 1,855 17 3 48,214 2 0 50,069 19 3 Less provisionally written off .. .. .. 7 5 7 50,062 13 8 Cash in Receiver-General's Deposit Account .. .. .. .. .. 1,110 0 0 Cash in Public Account .. .. .. .. .. .. .. 7,625 6 11 £427,494 8 7 £427,494 8 7 State Coal-mines Office, Wellington, C. 1. C. H. Benney, Accountant. P. C. Webb, Minister of Mines. I hereby certify that the attached Working and Profit and Loss Accounts of Depots and Collieries, General Profit and Loss Account, and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— J. H. Fowler, Controller and Auditor-General.

2—C. 2A.

9

C.-2A.

NEW ZEALAND STATE COAL-MINES— continued. Statement of Colliery Property Accounts as at 31st March, 1939.

10

Liverpool. James. MacDonald. Strongman. ITotals. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Development and Propertv Account —- Balance at 1st April, 1938 .. .. .. 36,223 3 0 1,545 17 6 46,603 18 9 59,283 3 6 Additions during year .. .. .. .. j 1,910 0 0 .. .. 44,249 0 1 38,133 3 0 103,532 3 7 Ordinary depreciation .. .. .. 1,342 10 5 .. 1,230 15 3 36,790 12 7 Less provisionally written off ...... 36,790 12 7 1,545 17 6 — — 45,373 3 6 103,532 3 7 187,241 17 2 Electrical Plant Account — Balance at 1st April, 1938 .. .. .. .. 2,626 15 2 Depreciation .. .. .. .. . ■ ! 334 19 9 .. .. .. 2,291 15 5 — .. — — .. 2,291 15 5 Machinery, Plant, Hopes, and Rolling-stock — Balance at 1st April, 1938 .. .. 22,910 7 4 2,790 11 7 .. 15,377 10 11 Additions during year .. .. .. 2,350 5 2 271 17 9 .. 8,966 16 0 j 25,260 12 6 3,062 9 4 .. 24,344 6 11 Sales .. .. .. .. .. | 38 7 9 25,222 4 9 Transfer to other accounts .. .. .. .. 176 13 10 .. 66 2 9 25,222 4 9 2,885 15 6 24,278 4 2 Depreciation .. .. .. .. 2,479 9 11 550 12 9 22,742 14 10 2,335 2 9 Less provisionally written off ...... 31 0 0 22,711 14 10 2,335 2 9 .. 24,278 4 2 49,325 1 9 Buildings at mine — Balance at 1st April, 1938 .. .. 5,151 7 1 726 12 5 .. 3,694 14 11 Additions during year .. .. .. •• 129 17 2 .. .. 4,962 2 1 ; 5,281 4 3 726 12 5 8,656 17 0 Less depreciation .. .. .. .. 367 13 6 110 4 8 .. J 4,913 10 9 616 7 9 Less provisionally written off ; 3 15 0 ; 4,909 15 9 616 7 9 .. 8,656 17 0 14,183 0 6 Carried forward ■■ .. -■ .. j £64,412 3 2 £6,789 3 5 £45,373 3 6 i £136,467 4 9 £253,041 14 10

NEW ZEALAND STATE COAL-MINES— continued. Statement of Colliery Property Accounts as at 31st March, 1939— continued.

3—C. 2A.

C.—2A.

Statement of Depot Property Accounts as at 31st March, 1939.

11

Liverpool. James. ! MacDonald. Strongman. Totals. i £ s. d. £ g. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Brought forward .. .. .. 64,412 3 2 6,789 3 5 45,373 3 6 136,467 4 9 253,041 14 10 Cottages at mine — Balance at 1st April, 1938 .. .. .. 3,062 0 3 Additions during year .. .. .. .. 770 0 8 3,832 0 11 Less depreciation .. .. .. .. 211 11 4 3,620 9 7 .. .. .. 3,620 9 7 Plantation at mine — Balance at 1st April, 1938 .. .. .. 167 10 5 .. 716 15 3 Less recoveries .. .. .. .. 142 16 3 .. 62 17 11 — — 24 14 2 .. 653 17 4 .. 678 11 6 Goal (stock on hand at mine, wharf, and afloat) .. .. 2,603 15 1 .. 751 19 10 .. .. .. 376 13 7 3,732 8 6 Stores (stock on hand) .. .. .. .. 58,862 13 8 Less provisionally written off ...... 68 0 1 58,794 13 7 .. .. — .. 58,794 13 7 £129,455 15 7 £7,541 3 3 £46,027 0 10 £136,843 18 4 £319,867 18 0

. Wellington. j Christchurch. : Wangantti. Totals. ! I ; Depot Property Account — £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s d Balance at 1st April, 1938 .. .. .. .. .. .. 6,292 13 0 2,908 9 6 104 5 11 Additions during year .. .. .. .. .. .. 1,475 6 10 83 18 6 .. 7,767 19 10 2,992 8 0 Sales .. .. .. .. .. .. .. .. 15 0 0 39 10 0 7,752 19 10 2,952 18 0 Less depreciation .. .. .. .. .. .. .. 336 13 7 206 3 11 19 9 10 7,416 6 3 2,746 14 1 84 16 1 Less provisionally written oil .. .. .. .. .. .. .. 7,416 6 3 2,746 14 1 84 16 1 10,247 16 5 Stocks and stores on hand .. .. .. .. .. .. 3,677 5 7 11,794 19 6 Less provisionally written ofi .. .. .. .. .. 245 16 10 1,225 13 2 3,431 8 9 10,569 6 4 .. 14,000 15 1 £10,847 15 0 £13,316 0 5 £84 16 1 £24,248 11 6

O—2A

NEW ZEALAND STATE COAL-MlNES—continued. Statement of Receipts and Payments for the Year ended 31st March, 1939. Receipts. Payments. £ s. d. £ s (1 Jainea Colliery— £ s. d. £ s. d. Cash in Public Account at Ist Wages .. .. .. 26,700 13 6 April, 1938 .. .. .. 11,956 5 2 Special rate .. .. .. 208 16 0 Proceeds sale of coal, &c. .. 273,087 4 5 Coal purchased .. .. 27 2 3 Recoveries, refunds, &o. .. 1,981 16 2 Subsidized bus fares .. .. 316 11 1 Royalties .. .. .. 10,005 18 10 Electric power .. .. 312 4 4 285,074 19 5 27,625 7 2 Interest .. .. .. .. .. 31 11 10 Liverpool Colliery— Capital raised .. .. .. .. 95,000 0 0 Cottages .. .. .. 760 5 6 Dishonoured cheques recredited .. .. 29 6 10 Wages .. .. .. 85,602 0 10 Repayment of housing loans .. .. .. 1,639 9 8 Special rate .. .. .. 578 8 6 Railway tickets .. .. 1,763 16 6 Coal purchased .. .. 75 10 6 Buildings .. .. .. 42 19 10 88,823 1 8 Development of new mine, Ninemile area .. .. .. .. 37,437 2 5 Housing loans .. .. .. .. 5,309 3 5 Plant and stores . . . . .. 76,003 19 4 Mac Donald Colliery Account .. .. 863 4 7 Wellington Depot Account .. .. 20,151 17 0 Christchurch Depot Account .. .. 28,462 14 1 Wanganui Depot Account .. .. 45 2 3 Coal purchased on account of depots (Suspense Account) .. .. 1,006 10 7 Cargo adjustments (co-operative coal) .. .. .. .. 2 14 6 Superannuation Fund subsidy .. 99 7 2 Management and office salaries . . 6,447 011 Interest .. .. .. 2,964 8 2 Travelling-expenses .. . . 166 14 9 Printing and stationery . . 198 16 3 Repairs and maintenance .. 3,532 12 0 Wharfage .. . . . . 2,750 5 8 Railway haulage .. .. 13,124 19 2 Marine freights .. .. 45,104 13 3 Postages and telegrams .. 409 11 7 Insurance .. .. 54 19 11 Rents ' .. .. 88 12 4 Compensation .. .. . . 8,314 17 10 Coal-miners' Relief Fund ... 338 8 11 General expenses .. .. 4,046 0 6 Sinking Eurid instalment .. 11,766 13 8 Audit fees .. .. . . 215 0 0 Cheques dishonoured .. .. 29 610 Rescue-station levy .. .. 520 17 11 Boring and prospecting .. .. 202 22 100,375 9 0 Cash in Public Account at 31st March, 1939 .. 7,625 6 1] £393,731 12 11 £393/731 12 11

12

C— 2A.

NEW ZEALAND STATE COAL-MINES—continued. Table showing the Position of the State Coal-mines Account from Inception to 31st March, 1939.

13

:—: - - - " ' ■ ->"> ■ ?, • ■ "■ >. ■t'-v /• t. Tntal rnnltjil Total Amount of Assets as per Liabilities as per Name ol WorKs. ; n ,,; Depreciation Balance-sheet, 31st Net Profits- Net LosseB. Balance-sheet, ijxpenanure. written off,. March, 1031). 31st March, 1939. £ s. d. £ s. d. £ s. d. £. s. d. £.. s. d. £.. s. d. Point Elizabeth Colliery .. 98,210 9 0 "Less and loss by lire .. 2,291 6 11 95,919 2 1 95,919 2 1 .. 147,583 4 11 • .. Liverpool Colliery .. .. 335,479 12 4 Less sales, transfers, and loss 9,279 9 9 , by firo 326,200 2 7 258,142 15 8 08,057 (ill 54,700 1 0 .. 17,283 8 6 Seddonville Colliery .. 38,243 2 5 Less sales .. .. 548 17 0 ■ 37,694 5 5 37,694 5 5 .. .. 36,893 4 4 ■ , - , t Briquette-works property .. 16,135 2 6 Less sales of plant .. 2,066 5 0 14,068 17 6 14,068 17 6 .. 22,660 18 10 Prospecting on State Coal 11,601 6 3 Reserve Less transfers .. .. 10,785 8 0 815 18 3 389 4 0 426 14 3 ... Plant, buildings, &c., on hire .. 7,319 11 6 Less sales, transfers, &o. .. 3,553 3 9 ■' i- ■ 3,766 7 9 3,059 14 5 706 13 4 408 6 1 Charming Creek prospecting .. 5,956 18 6 5,956 18 6 .. .. 5,545 1 11 . ... James Colliery .. .. 74,038 12 0 Less salfes; transfers, &c. .. 2,765 14 3 71,272 17 9 64,483 14 4 6,789 3 5 .. 13,120 11 8 2,734 17 10 Development of new mine, 136,843 18 4 .. 136,467 4 9 .. .. 1,347 18 3 Nine-mile Area -— MaeDonald' Colli'ery.. .." 93,600 4 11 Less rWo+erfes .. .. 756'' 8 1 92,843 16 10. 16,816 16 0* 46,027 0 10 .. 30,719 5 4 Wellington Depot Property .. 21,535 19 6 Less sales and transfers .. 887 0 2 20,648 19 4 13,232 13 1 7,416 .6 3 .. 273 9 0 918 5 8 Christchurch Depot property 14,785 9 10 Less sales and loss on horses 384 3 7 14,401 6 3 11,654 12 2 2,746 14 1 18,006 6 4 .. 5,600 0 10 Wanganui Depot property .. 3,735 13 0 Less sales and loss on horses 308 18 11 3,426 14 1 3,341 18 0 84 16 1 .. 2,244 0 0 6 10 0 Dunedin Depot property .. 2,023 3 7 Less sale of plant .. 641 10 0 1,381 13 7 1,381 13 7 .. .. 4,248 3 5 Hulks property .. . . 4,033 15 5 Less sales .. .. .. 1,948 17 0 2,084 18 5 2,084 18 5 .. 1,786 12 11 Office furniture .. .. 189 13 9 Less sales .. .. 17 5 0 172 8 9 172 8 9 .. .. 172 8 9 Grand total .. 863,732 12 10 Less losses, sales, 36,234 7 5 transfers, &<>. £827,498 5 5 £558,399 11 11 C208/72T 19 11 Carried forward .. .. .. 268,721 19 11 222,484 11 3 115,877 3 3 27,891 1 1 * Includes interest (£30,285 19s. 10(1.) capitalized from date of purchase to date lease was granted—now written off.

C.—2a

NEW ZEALAND STATE COAL-MINES —continued. Table showing the Position of the State Coal-mines Account from Inception to 31st March, 1939— continued.

Approximate Colt of Paper.—Preparation, not given ; printing 545 (copieß), £22 10s.

Authority: E. V. Paul, Government Printer, Wellington. —1939.

Price 6d.]

14

Tntjii runifol Total Amount of Assets as per Liabilities as per Name of Works. Depreciation Balance-sheet, Net Profits. Net Losses. Balance-sheet expenditure. written off. 31st March, 1939. 31st March. 1939. • ' £ a. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Brought forward 268,721 19 11 222,484 11 3 115,877 3 3 27,891 1 1 Royalties (from 1st April, 1928, .. .. .. 49,877 6 4 only) Interest on investments .. .. •• .■ 85,747 5 10* Discounts .. . • ■ ■ • • ■ • • • 13 2 9 Cash lost (highway robbery) .. .. .. • • • • 89 0 1 Transfer to Accident Insurance .. .. .. .. 2,960 0 0 Reserve Refund: Mines Department, .. . • •• 5,000 0 0 1932-33 (administrative expenses inurred in previous years) Runanga water-supply scheme •• •• ■■ •• 1,000 0 0 Stores sales • • • • • • • • • • 224 14 6 Total, profit and loss .. •• •• •• •• 124,926 3 4 Balance: Profits over losses .. .. •• •• 233,420 17 4 £358,347 0 8 £358,347 0 8 Stocks on hand less provisionally .. •• 76,527 17 2 written off Interest on investments accrued Sinking Fund investments .. •• •• 11,767 3 8 Sundry debtors .. .. •• •• 50,062 13 8 Cash in Public Aocount ■. .. • • 7,625 6 11 Cash in Receiver-General's .. •• 1,110 0 0 Deposit Account Housing advances to workmen, •• •• 11,679 7 3 and accrued interest Loan Account .. •• •• •• •• •• •• 154,718 6 8 Bad Debts Reserve .. .. • • • • •• • • • • 1,240 3 9 Accrued interest payable .. .. •• •• •• 1,047 13 5 Sinking Fund .. .. •• •• 11,767 3 8 .. 11,767 3 8 General Reserve .. .. •• •• •• 220,107 5 5 .. 220,107 5 5 General Profit and Loss Account •• •• •• 1,546 8 3 .. 1,546 8 3 Deposits on contracts .. • • ■ • • • • • • • 1,110 0 0 Accident Insurance Reserve .. .. •• •• •• •• 8,066 6 4 £427,494 8 7 £233,420 17 4 .. £427,494 8 7 * Includes interest on sinking fund investments.