ONEKAKA IRON

Auckland Star, Volume LXXII, Issue 205, 30 August 1941, Page 10

ONEKAKA IRON

CLAIM FOR FORFEITURE CASE FOR THE COMPANIES (P.A.) WELLINGTON, Friday. The action in which the Crown is proceeding for the forfeiture of ing privileges at Onekaka agan . the OnekaKa Tron and 1 pany. the Golden Bay Propncur>. and Pacific Steel, completed 1 - second week of hearing in the Warden's Court to-day-before Mr. I. E. Maunsell, S.M.

Mr. P. B. Cooke. K.C.. continuing has address on behalf of the Onekaka company, said the company had spent over £2. r >o.ooo in developing the works. There was a chance of further capital being obtained. The company had the mining privileges fully manned November, 193-i, until June. 193.>. and produced enough pig-iron to last until 1937. There was no question of want of bona fides. The company had never had a chance and it was the Governments fault. It would have been a savage ruling for the Government to say in 1938 that these valuable mining privileges must go, and must go to the Crown. Mr C IT Weston. K.C.. on behalf of the Golden Bay Proprietary, based his case mainlv on the agreement made in 1931 between the receivers for the debenture-holders and the Crown, by which the Crown, in respect of its second mortgage and its unsecured debt for coal supplied, was admitted to rank pari passu with first mortgagees. I'nder that agreement it was proposed to realise the company's assets as soon as possible. Pending sale, the receivers were given authority to carry on the business or lease the premises or close them down for the time being. In the last event it automatically followed that as long as operations ceased they were absolved from obligation to mine ore and employ labour, two obligations on which the Crown's action to forfeit was based .

Mr. Weston had not concluded his address when the hearing was adjourned until September 9.