KAITANGATA

Evening Post, Volume CXIII, Issue 48, 26 February 1927, Page 8

KAITANGATA

MINES STILL CLOSED

DISASTER THREATENS TOWN

(By Telegraph.) (Special to "The Evening Post.") DUNEDIN, This Day. Unless the Kaitaiigata mines reopen in a reasonable time, for the relief works cannot last indefinitely and the revenues are not to be compared with the mine wages, Kaitaiigata is a doomed township. Little money is coming in, and the Mayor declared yesterday that they could not hold on for more than two months longer. Lying on a hillside by the Clutha .uiver, Kaitangata is a town of 52 years' standing, and its capital value to-day is £112,000. If the mine does not reopen, between 1700 and 1800 people will be oompelled to leave the town, and the value of the.borough will depreciate to about £15,000. That, admits the Mayor, is a high estimate. The town comprises 360 dwellings, and has several fine churches and a splendid post office. The ruining of the town' 1 by the cessation of mining will affect not only the many families who have staked their all in the town, but the Government and the Otago Electric Power Board, which has expended a big amount, besides which the Dominion, which will have to absorb the hundreds of people who will;be looking for new homes. A gloom—almost a black cloudhangs over the - town and its people. Already six families have left the district, and the breadwinners are scattered all over the South Island. At first the union was' informed that the wages were thy. first claim on the assets, but their hopes of gaining the money owing, by the institution of liquidation proceedings, were dashed on receiving intimation that the priority applied only over the assets comprised in the floating charge, and-not over the assets in any specific mortgage, as for instance, of the land.

Two days ago cabled advice was received from London that instructions had been cabled to Mr. Eobert Lee, who had been appointed receiver for the company, to secure an early payment of wages. However, no back wages have been paid in the interim, and no advice has reached Kaitan-i gata as to when the money will be paid. Eeports from London, stated that the company was hopeful of success in the negotiations for the'sale of part of its property. This is understood to refer to the Orepuki oilfields, which ■ reports state that the company has been endeavouring to sell for some years. Before it would be advisable to resume the working, of the mine between £l±,ooo and £13,000, ..to pay back wages and to carry on till the mine could pay its way, would have to be raised. Serious difficulties will have to be faced before the working can be resumed. Thirty-four families, comprising 170 people, are being helped at the present time. Roughly, £6000 is owing to the men in wages. ..' *