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1898, screened coal, 12,984 tons; unscreened 30,710; nuts and small, 17,257. To the 31st July of the present year—that is for seven months—screened coal, 5,445 tons; unscreened, 13,159; nuts and small, 8,990 tons. That gives a grand total of 220,000 tons in round numbers. I would like to call the Committee's attention to the proportion of screened coal put out. Out of the 220,000 tons of coal mined we obtained 44,224 tons of screened coal, practically one-fifth. Out of that 220,000 tons of coal mined we produced 115,000 tons of unscreened coal, and over 60,000 tons of screenings, or nuts and small. These proportions of the various classes have a very important bearing on the price of the coal, for this reason, that the cost of the coal is very considerably increased by reason of the very small proportion of screened or profitable coal that comes out of the mine in our case. We have only one-fifth of the total output upon which to make a profit, and I may say that the bulk of the remainder is sold at a loss practically. We look to our profit to be made out of the household coal; hence it is that the public may imagine that the price of Westport coal for household purposes is unusually high. The reason it is high is because of the very small proportion of good coal you are able to get out of any mine. lam not able to say what the Westport Coal Company are getting, for the simple reason that their seams are more regular than ours, and they have a much larger body of coal to work, and their country is well settled and undisturbed, whereas ours is broken up g,nd the coal soft. In most places the bulk of our coal is soft and crumbles in working it, and therefore we are only able to get a small proportion of screened coal. I daresay the proportion of screened coal would be much less than that of the Westport Company's coal. While that is so, the quality of the soft coal is first-class. It burns a little quicker, but it burns cleanly, and gets up and maintains the steam. I have no doubt a large proportion of this soft coal could be brought into the market and sold, although not at a profit at first, but eventually, if proper provision were made for its shipment. 5. Instead of being shipped at the staiths, if it were shipped at the crane wharf ?—Yes. You are aware of this, but the Committee may not be aware that the Harbour Board at Westport have immense staiths, and it is necessary for the Union Company's steamers to go alongside these staiths and take the coal in from the shoots. I will leave the Committee to consider what state the soft coal must be in when it gets to the bottom of the hold. Even the best coal is destroyed, as it has to fall on an average 30 ft. It ranges from 20 ft. to over 40 ft. in some cases. I think the coal drops over 40 ft.; and in order to keep the ship upright during the loading it is necessary to erect a strong wire-netting half-way across the hold, tautened, and the coal is shot down the shoots, striking the netting in its descent, with the result that a large amount of it is reduced to dust, and by the time it reaches Lyttelton we have lost from 30 to 40 per cent, of it. This is a terrible drawback. These are all elements that enter into the value of coal. 6. You might explain whether the breaking up of the coal affects its value for steam purposes —Yes, very injuriously. 7. All classes of coal ?—Yes. It requires special bars to preserve the coal. The Westport coal will not hold together; if you disturb it it will drop through the bars. It is not like the Grey coal—although Westport coal is highly bituminous it will drop away—whereas the Grey coal will all cake together; so that the smaller the coal the more waste there is unless you have special bars. 8. The Westport Harbour Board realises the force of what you are saying, and is now building crane wharves ?—Yes. I have no doubt that when that system is adopted a great proportion of the soft coal might be exported, because if a truck-load is put down bodily into a ship it insures the good condition of the coal, and you might be able to get rid of it, as it is of good quality. In the meantime, it is ruinous to any company that has not large means. I think that is all I have to say with regard to the price of coal. 9. Mr. Pirani.] The prices are quoted at Lyttelton ; what quantities are they for?— Wholesale quantities. 10. Very large quantities ? —The coal trade is reduced to very small dimensions so far as the dealers are concerned. They will not take large stocks. 11. What would you say is the minimum ?—We cannot sell less than one truck. The dealers take from one truck upwards. 12. Is there any possibility of the company conserving the coal by bagging it at Westport before shipping it ?—No, it would increase the cost materially. 13. Why would it be more expensive for the company to bag it than for the retailers?— The retailers have to screen the coal after they receive it. Every time this coal is touched it means breakage. One of the most important features in shipping is the despatch of the ships; if a ship stays over one night it is a dead loss. The thing that a shipping company relies on is quick despatch, otherwise freights must go up. An alteration in the present Harbour Board appliances for shipment is very much needed, and I think the bag question could be got rid of if the staiths were razed and hydraulic cranes provided in place of the present system. I think they could get the steamers away just as readily. By this system the truck is put down into the ship, and the coal is preserved. The only difference would be the trimming, and that is reduced to a minimum. 14. I suppose if the coal could be landed at the place where it is retailed in the condition you get it out of the mine it would be all useful for household purposes ? —Undoubtedly. 15. The injury to the coal is really in transit ?—Yes. The Westport Coal Company have recently, and are still experimenting in this way; they are shipping all unscreened coal to Lyttelton, and have gone to the trouble and expense of erecting a screen on the hulk, and when the steamers arrive the hulk is placed alongside the wharf, and all the screenings drop into the hulk, while the screened coal goes direct into the truck, and the result is that the dealers in Canterbury are getting Westport coal in a much better condition than they did before; but the Westport Company have been compelled to raise the price by Is. 6d. per ton. We have not got