GOLD-DREDGING CLAIM

Dominion, Volume 28, Issue 232, 28 June 1935, Page 7

GOLD-DREDGING CLAIM

English Company’s Titles Involved FORFEITURE REFUSED Dominion Special Service. Dunedin, June 27 A milling action of some considerable interest, involving the titles of a company formed with English capital for the purpose of dredging'a section of the Molyneux River, came before the warden. Mr. 11. J. Dixon, S.M., at Clyde in March last. Decrees of forfeiture were sought by J. S. Burrows iu respect to two of three claims- held by the' Molyneux Gold Dredging Company, Limited, on the Molyneux River, extending from Alexandra to some distance above Clyde. The Molyneux Gold Dredging Company. Limited, was registered in England with a capital of £250,000. Ir the form of £84.000 fully-paid shares it paid for three claims on the river extending over about 19 miles, and also for certain other properties. In addition it. paid £12.000 to the Otago Cen- 4 tral Electric Power Board, witli a view to securing electrical energy to work the dredge. The company is further understood to have entered into contracts for I lie construct ion of a dredge at a cost of £40.000, and it Is estimated that it will cost an additional £30.000 to erect tlie dredge on the river The total area of the claims is about 900 acres, and the area in dispute amounted to about 520 acres. The claims were pegged upward of two years ago, and in order to protect them special legislation was passed by the Parliament of New Zealand in November of last year. The warden gave his-decision this week. After reviewing the evidence and the law points raised, he held that there had been a forfeiture, but in view of lhe special circumstances relied on by defendant company he exercised bis discretion by inflicting a fine in lieu of forfeiting the licenses. The total tines and costs in respect of the two licenses amounted to £3B/9/-.