§ "At the meeting held at Downing Street on Thursday, the 19th instant, we were requested to meet the representatives of the Miners' Federation with a view to discussing the figures contained in our Estimate of the surplus arising from the working of the industry for the year ending 31st March, 1920.
§ This meeting took place on Monday, the 23rd instant, when there were present:—
§ The Coal Controller; The Financial Secretary to the Coal Mines Department (Mr. D. W. Coates); Mr. Vernon Hartshorn, M.P., Mr. Frank Hodges, and their Secretary (representing the Miners' Federation); Mr. William Mackinnon and Mr. Alex. Morrison (representing the Independent Accountants).
§
The figures contained in our Estimate (Appendix No. 3 in Report) were fully explained and discussed.
With regard to the estimated costs of production we were able to submit figures, based on later information than was available when we reported, which indicated that our costs were rather under than overestimated. After examining the figures comprising cost, Mr. Hodges stated that they would accept them.
With regard to the estimated proceeds, it was contended by the minors' representatives that as the tonnage and prices for exports and bunkers for January were now available (although not available at the time our Estimate was prepared) those figures should be adopted as the basis for estimating the value of exports and bunkers for January, February and March.
If this basis be adopted it would have the effect of increasing the estimated surplus
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at the 31st March, 1920, from £6,084,000 to £14,200,780.
We stated that, while the actual figures for January are now available, we could not agree to their being adopted as the basis for February and March in view of the assurance given to us by the Controller that exports were likely to be considerably cut down between the date of our Report and the 31st March next. Preliminary figures from H.M. Customs for the first fortnight of February bear this out.
With regard to prices, while January figures (now ascertained) show an increase of about 5s. per ton over the average November and December, 1919, figures adopted by us for estimating for January to March, 1920, we do not consider that it would be right to adopt the January prices because, even if prices to the 31st March, 1920, are maintained at January level, the gain arising therefrom on the reduced quantity to be exported would, in our opinion, be counterbalanced by the probability of our costs having, as already indicated, been under-estimated.
We therefore consider that our Estimate (Appendix No. 3 to our Report) is still a fair and reasonable estimate of the results for the year ending the 31st March, 1920.
§ We are, Sir,
§ Yours faithfully,
§ (Signed) ALFRED TONGUE & Co."