1.—6

12

Mr. Dicks'n.

per cent mora economical for steam purposes. It is a much better gas coal than Newcastle, but not quite so good as Greymouth. 214. Mr. Allwright] My experience does not carry out that ?—I think the best criterion of the value of our coal for gas purposes, is the important fact that the Melbourne Gas Company are not merely willing to contract for our coal, but to alter* their plant to suit it. 215. Could you get a greater price than Newcastle in a foreign market?—We could get lis 6d as compared with 10s for Newcastle for steam purposes, because of the greater economy in space, laborhandling, and quantity used of our coal. 216. Mr. Macandrew] A large portion of our foreign market would be the ships going to India and San Francisco, as it would be more convenient for them to go to Westport than to Newcastle. 217. If the foreign demand were as great as you could deal with, you would not trouble the home market ?—Our object is to sell the coal at Westport, if we can. We do not wish to undertake the work of carriers unless it is necessary. I may say that several steamers have been ordered for tho home trade. 218. You have referred to a coppsr ore company. What did you say in regard to them ?—I have been in communication with some capitalists in Adelaide who own copper mines, and they would be willing to erect smelting works at Westport and smelt the ore there, as we could give them small coal at a low price for the purpose. 219. Have you any idea of the extent to which this would be carried on ?- -No. 220. Did I understand you to say that the want of rolling-stock diminishes your output now by 100 tons a day less than you otherwise could put out?—Yes; from that and want of sufficient accommodation in the staithes, but I may say that the Government engineers recognise fully the necessity of increasing the staitlr accommodation, and I believe that the Public Works Statement will contain a recommendation to the effect that the accommodation should be increased. 221. Suppose you took over the works yourselves in consideration of getting a rebate on the royalty, who would have the control of the harbour* ?—I do not think we could do anything unless we bad control of the harbour. If the Government were to give us a rebate of the royalty, the Company might be prepared to raise the money, or if a Trust should be formed to do the work and control the harbour, and that Trust issued debentures, our Company would be quite willing to purchase the debentures to the extent of £50,000. I may say that our articles of association would prevent us spending money on the harbour unless we had the control of it. If any outlay the Company made on the harbour could be guaranteed to be returned to us, together with reasonable interest, we would be quite prepared to undertake the work, but it would be much more satisfactory to both the Government and the Companies if the former* could see their way to find the money and do the work. If we obtained possession of the railway under reasonable restrictions as to the price we should charge to the public, it would place us in a different position, and we could carry the coal at a minimum price. 222. Have yo r had any conference with the Koramu Company with regard to joint action in the event of the Government declining to do anything?—No. If the Government will not do anything in the matter, we shall simply have to stop our hands—that is to say, we shall have to confine our operations to their present limit. If the Government do nothing it will prevent a large trade being opened up, which it would certainly be if the harbour were improved. 213. Have you any idea as to the amount of money that would be required to be spent in order to get the necessary depth of water on the bar ?—I cannot say, from professional experience, but the two telegrams, one from Mr. Macgregor, C. E , Dunedin, the other from Mr. Proudfoot which I now hand in may throw some light on the subject. (Telegrams read, with statement attached. See Appendix.) 224. What is the extent of the lease of Cabie and Druminond ?—3,Out) acres. 225. In your* memorandum to Mr. Macandrew, you state that in the course of conversation with Mr. Blackett, that gentleman stated that a fraction of one penny per ton would cover the interest on the money expended?—Yes; he stated that the whole work could be done for a fraction of a penny per ton on the whole of the coal in the Company's lease. 226. AY'ieii did Mr. Blackett make that statement? — Last August. He informed me that he had recommended the Government to put a much larger sum than £2,000 on the estimates for the purpose of developing this work, and he called my attention to the fact that a penny, or less than a penny per ton would cover the whole cost 227. The Chairman] One penny per ton on 100,000,000 tons would give about £400,000 would it not ?—Yes. 228. Mr. Macandrew]. It has been staled that an outlay of £50,000 would suffice to give an increased depth of water to the extent of 2 feet on the Buller Bar. Can you supply the Committee with any professional opinion worthlraving to that effect? —-That statement was the result of a conversation which I had with Mr. Macgregor on the subject. He said that in his opinion the carrying out of the inside wall would give an increased depth. I may say that if the two companies guarantee an outlay of 300,000 tons per annum it ■means the payment of interest on £150,000. 229. How could a guarantee be made that the Companies could put out the proper quantity of coal required, or that they could pay the royalty ?—The best way would be to make a fixed rent proportionate to the amount of the guarantee. If we could get a depth of 18 feet certain on the bar we could give a substantial guarantee for the payment of the interest. 230. You have stated that in the event of the harbour being deepened your Company would construct additional works which would enable you to put out half a million tons a year?—Yes, and those works -would cost us £70,000 or £80,000. 231. Mr. AllwrlghtA What is the consumption of coal in New Zealand ?—About 500,000 tons jjcv annum, but it is increasing at the rate of from 25 to 50 per cent per annum. 232. Mr. Macandrew] What are the collieries with which you have come into contact?—The Bay of Islands, the Kaitangata, Shag Point, and the Canterbury collieries. 233. How much coal does the Union Steam Shipping Company take from you ? —About 1,600 tons per month. I may mention that Mr. Mills, the Managing Director of the Union S.S. Company, told me

21st June, 1882.