HOCHSTETTER WATER RACE,

Greymouth Evening Star, 11 October 1934, Page 10

HOCHSTETTER WATER RACE,

CLAIM FOR ABANDONMENT The Warden's Court at Greygaouth was occupied all day yesterday with the Lake Hochstetler water-race proceedings, which were commenced on Tuesday. John Becker (Mr. W. P. McCarthy) applied for a certificate of abandonment of the water-race, and the issue to himself of a water-race license for 80 heads of water for a term of 42 years, in Blocks 5,9, and 10, Ahaura Survey District. The application was objected to by the Golden West Sluicing Co,, Ltd. (Mr. A. H. Paterson), and Sarah Ellen Campbell and Bridget Monica Bayne (Mr. T. F. Brosnan). Abandonment was applied for on the ground that the Hochstettei* waterrace had not been used since 1922. Evidence of a lengthy nature was heard, and, when the case was adjourned sine die, late yesterday afternoon, it was indicated that another full day’s sitting would be necessary. The date for this has not yet been fixed.

The objection by Sarah Ellen Campbell and Bridget Monica Bayne was that, as mortgagees, they were not supplied with a copy of the advertisement; that the water-race applied for had not been marked out in accordance with the provisions of the Act; that the water-races in respect of which the certificate of abandonment was applied for .had not been abandoned; that the alleged acts, defaults, or events relied on to establish abandonment (which abandonment was denied) if any, were caused by reason only of the act or default of the Golden West Sluicing Coy Ltd., to which the mortgagees were neither party nor privy and which they could not have provided against or prevented; that the application was not bona fide; that the applicant, along with others, was the holder of an option over the mining privileges of the Golden West Sluicing Coy., and that the application was made for the purpose of depriving the objectors of their rights as mortgagees; that since default had been made under the mortgage, the objectors have made every endeavour to sell the mining privileges and/or to obtain the necessary capital to work the privileges; that prior to the filing of the application, negotiations were completed for the sale of privileges, and that the filing of this objection was not to be deemed a waiver of any matter and/or. thing required to be doife or complied with by the applicant in respect of the application or of the rights of the objectors to object thereto. The Golden West Sluicing Coy's grounds of objection were that the land had not been properly marked and pegged; that they had not served copies of the advertisement as required by the Act; that the application was not bonafide; that the licenses Nos. 5047 and 6334 had not been abandoned by operation of law; and that the applicant was not the holder of any mining privilege in respect of which the water could be used.

lieginaid Thomas 1-errott, miner, stated that he came to the West Coast with William Joseph Joyce, from the North Island, and went to Ahaura in January last. Tho lipchstetter claim was not then being worked, and the water race was dry. Part of the tunnels had* fallen in, and the race as a whole was in a neglected condition, looking as if it had been out of- order for many years. Witness gave evidence

regarding the pegging of the race by Joyce, and said that Joyce and himself were employed to do that work by Becker. The latter had never advanced money, to witness in connection with the option over the .Hochstettei* race. The £9O drawn from the bank was witness’s own money. On April 27, 193.3, witness placed £l7l in the bank. Becker had no interest in the option secured by Joyce over the Hochstettei* property. This closed the case for the applicant. RESPONDENT’S CASE. Mr Paterson .called John Wilson, managing-director of the Golden West Sluicing Co., who stated that the property was transferred to him five years ago by Mr Miles. Witness had put the pipe-line in order, and had cleared the tunnels. He had water flowing from German Gully, but not much came through the tunnels, owing to further breaks. In 1933, he interested Mesdames Campbell and Bayne in the property, and they advanced £3OO to pay off a liability on the pipeline. When the Golden West Sluicing Co, was formed, witness got £5OO. Mesdames Campbell and Bayne got 800 shares of the 5000 in the company. In all, they advanced him approximately £2250. Trouble arose, and all the shares in the company, except two, were now in his name. Witness signed a mortgage, “to his sorrow,” he said. Men were working on the race, while the money lasted. It was all spent, at the rate of £lOO per month, on putting the race in order. There were no wages owing at present. When he had difficulty with the mortgagees, witness gave an option to Becker for £12,500 cash and £12,500 in shares, butBecker did not exercise the option. The next option was given to Joyce. The latter and his. partner worked for a few days, and got some gold. They were supposed to give half the gold to witness, but did not do so. Joyce told witness that Mclnroe and Fitzgerald were in the option, and Becker told witness that he (Becker) was in the option at the finish. Witness had a conversation with Becker, Mclnroe. Joyce and Pfahlert, and the last-nam-ed suggested that witness let Joyce apply, and they would let him get his “cut” out of it. Witness would not agr.ee to this course, as the people who put the money in would have got nothing out of it. When the present action was commenced, witness went to Mr Spencer, of Reefton, but he said he would- have nothing to do with it until all complications were removed. The conversation, when Pfahlert made his suggestion in the presence- of the others, took place five weeks ago. The option was still in Joyce’s hands. Witness signed a document prepared by Joyce instructing him (Joyce) to act tor witness. 'Witness asked Mr Brosnan to have the mortgage set aside, but was refused. Witness had trusted Joyce, and Joyce had, to use a slangexpression. “double-crossed” him.

To Mr Brosnan: In 1932 witness, though he had not been successful in floating a company got Coll to work on the race. While Coll was there, Lee threatened to exercise his bill-of-sqle, but this was cleared by securing £3OO from Mrs Campbell and Mrs Bayne, and clearing the bill of sale. Witness did not remember telling Mesdames Bayne and Campbell that if he bad six men on at £3 10/- a week each, he would be producing gold in foui months. One hundreds pounds a month was paid in to his account bv the mortgagees (Mesdames Bayne anil

Campbell) to pay up their shares, and with the object of clearing the waterrace. They agreed that the £lOO a month would start the men on clearing the race; that was how they came to pay in that particular sum. The claim was not producing gold, nor was the race in working order in May, 1933, and at. that time the ladies became dissatisfied - with the progress being made. They therefore, arranged for Ainsley to report on the property, but witness did not agree to his comingon the property. They desired that Ainsley should take over the management of the claim, but witness would not agree Ro Ainsley taking it over. They wished to carry on, but with Ainsley and not .witness as manager. As a result of negotiations failing, no more money was forthcoming; At time he had the dam constructed at German Gully. Work had been done in live tunnels and the pipe-line had been put in order, and placed over the face. All the £lOO a month had been spent on the improvements to the. claim and race, which witness detailed. In November, 1933, witness gave a mortgage to the two ladies, as security on what they had put in. but he maintained it was “rung on” to him. Witness told them that they would get their money back if they gave him time to sell the claim. Witness gave an option to Joyce, who paid £lOO to pay off what witness owed on the claim and race improvements. The hearing was adjourned at 4.45 p.m., sine die, and Wilson will continue his evidence when the proceedings are resumed.