COLD IRON CONSERVATION v. EXPORTATION

Evening Post, Volume LXXXIV, Issue 28, 1 August 1912, Page 3

COLD IRON CONSERVATION v. EXPORTATION

LIMITED 'SUPPLY IN SIGHT. | THE PUBLIC AND THE CONCESSIONS. • (By "Menior.") " , 11. ' Mr. Witheford, representing tho Ethelburga Syndicate (whese connection ■with tho little Canterbury syndicater.iu&t not be forgotten), lias hinted that iiw coiapauy would be an exporter iv | a fairly large way. .In would need to be. if ifr actually invested £650,000, because a plant of that magnitude wculd, I or should, turn out very much nicro iron than this c<«r.ky could uze. If Euch a plant was worked at its full economical capacity, how long would! it take to "chew np" Parapjira? Dr. Bell hat? not ventured beyond 23,000,000 tons for the Cadman block, though ho hints that more ore may be tound. Is it<* goood policy fur tiie taxpayers of New Zealand to as&Lfcb a company, to the extent of .332,500 a year, to rapidly deplete the iron measures? How much would be l»ft in twenty years? How much in iorty ? After the Iron and Stoel Industry Bill of last year had been circulated, a, meeting of members of Parliament was addressed by an enUnusiast who submitted statements and figures to support 'an argument that an iron industry on a modeVt seale — a furnace capable of foeating 120 tons a day — couUl be established for £60.000 to £70,000, and worked at a profit wifcliout a bonus. The Post has a copy of the document, in ■which it is held t-hat the effect of a bonus — especially a largo one — would b© to promote over-capitalisation', forcing tho taxpayers to help to pay dividends on watered stock, and generally to greatly benefit the exploiters of concessions. !AN ESTIMATE OF ORE RESOURCES. Replying to a question by Mr. J. P. Luke last August, the Government stated that the amount of iron deposits (other than ironsand) known to exist in tho Dominion was 64,200,000 tons. Localities — Parapara, Nelson (Crown land) ; liead of the Waitangi River, 16 miles 'west of Bay of Islands (Crown land); -Kerr Point, near North Cape, portion "of the Yates's Estate (private land). J The Post's condensation of the Ministerial reply stated ;—" There are two leases existing of the Parapa«i iron deposits on Crown land. Tho lessees of one area- (the Cadmaii ground) have, for several years, kept men employed making roods and a tramway, and have also built a wharf <o comply with the conditions- of thm" leaee, and it is now understood that they are endeavouring to arrange for the necessary capital to commence operations to actively develop the iron deposits. It is also reported that the lessees of the other area have floa-ted a company in England to develop their particular area. Iv the event of these companies showing a lack of sufficient ♦nterprise in giving effect to the terns of their leases, it might be found nec:s*ary for the Crown to resume possession of the areas, in which case the Government will consider the advisableness of yi entering on the manufacture of iron as a ...State enterpriee. . . . The imports *for 1910 of- the chief classes of iron and steel amounted -to 539,203 (?) tons." AN ADVOCATE OF CAUTION. In. April last year the Trades and Labour Conference, at Christchurch, adopted a resolution expressing the hope that the ironmasters of the Dominion would co-operate with organised Labour towards the nationalisation of iron ores. A ' well-known ironmaster of Christchurch, Mr. G: T. 'Booth, was interviewed on this. question, and his opinions deserve reprinting. The Post's Chrutchurch correspondent telegraphed on 22nd April : — " Mr. Booth remarked that there seemed to be little hope at present (or for some time to come} of the iron ore deposits of the Domiu-on being worked to commercial advantage, either by the Government or by private enterprise. The only way in which it would be possible to realise on this asset -would be the sale of the ore. That, of course, would mean the depleting of one of the natural resources of the Dominion ■which, in time to come, when the popu-' lation had increased very much beyond its present limit, would be very valuable, la view of that fact, it might be desirable that the Government should take some steps to prevent the depletion ol the stores of ore, with a view to the material being worked up for local consumption in the future, when the commercial condition of the Dominion warranted it. So far as the immediate working of the deposits was concerned, the position was that a very large plant wonld be necessary if smelting was to bo done so that the pig-iron would coiiipete with imported stuff. A plant which would work economically enough to do that would produce as much iron in a month as would be used in New Zealand in a year. The tune would come when New Zealand would be a big manulacturing place, and its iron ore depo-lts would be of value to it. At present there was no shortage of iron ore throughout the world. An export of ore from New Zealand would bring in a low profit, but it would be exhausting a national resource which, in course of time, would become valuable.*' Mr. Booth's sweeping statement about the unprofitableness of any kind of iron venture can be disputed, but his words about exportation — either ore or smelted iron — afc the cost of New Zealand's future have to be considered by tne people's representatives. One can plant trees in denuded areas, but iron is it different order. WHAT ABOUT ONAKAK.A? A telegram fiom Hastings on 7th Ap r il stated : — "A movement is well forward to establish iron-smelting -works and develop the iron field known as- 'thft I Cnakaka Block, alongside the famous I Parapara, at Golden Bay, Nelson. The Onakaka deposits were reported . upon by Professor Marshall, whose analysis tii.«ck>sed iron of first-class quality, capsbje of yielding pig of the highest grade. The block comi^nses 900 acres, and it ia stated in \>s practically a mass of iron, ice-fading faces of solid iron, 200 feet tb'tk. "Ninety acres have been cleared of bush, and* on this portion Professor Marshall srtunates that 22,500,000 tons i of iron is iv sight. . . . The Onakaka Block is in no way associated with Parapara, which has been tho subject of «peculatioi» for the la«« thirty years. Ifc is intended to areot blast iuruaces for j anwlting to pig-iron, and to leare to i others the manufachire of steel. . . . The capital of tbo company vrill be 15200.000. Although iho prospectus is jiot jet out, a larg« number of shares la iJrc^dy subscribed in Ha.wfc.es Bay, and only another 2a,000 £1 shares need to bo snbstribed to secure re^jstraticfl." Has it oon»o to pass that the Parapara and Onskalra Cornoanit'3 have arrired at :wi rajdeiEiandiKg for mutual bandit! If jtofc, it will not be practicable for the Si ate to subsidise eilk»r without grantinir ajaiilar aid to the othoi. MOBE QUESTIONS, V/Jiere could be ih« foreign market* of; the Etholburga Syndicate? It seema tiuU, New Zealand -.vill need to look f urtb»r afiedd than Australia, '■vhichbas h*r f»«»T3 iron measures and a, fueling in iavc««r of Anstralin's iion industry for Alis. iraliib^-not Now, Zealand* 6 l.on in^u&trj

for Australia. Boyond Australia L-> China, with immense resources of coal ami iron, and very cheap labour. Will New Zealand, be able to competes la iron with mi awakening China— a China which has already exported iron to fchfc United Stat os—in the. markets of the 'world? Lacfc year's Bill plainly referred to a certain set of persons, 'ihe le«ees"— -a term nominally ■ general but, practically, particular. A commentator 1 on the honus question remarked last year: — "Before this proposal is sanctioned the ' country should know everything in connection with this request ;, by whom th? overtures were made; under what conditions those seeking this bonus are proposing to work; what people constitute the company ; the capital of the company; *nd all correspondence bearing on fhe subject." The Post gave yesterday some namets connected with the Parapwa Company. The capital proposed to be invested is £650,000, if the taxpnycrs" will contribute J&32,0G0 a year. How much of that statement of capital i* to bo set against th* leases which tho Canterbury syndicate took over from the Public Trustee? Some other questions wDI be asked by this recorder if the Ethelburga Syndicate's schemo comes seriously before Parliament.