THE IRONSAND INDUSTRY.

Hawera & Normanby Star, Volume XLII, Issue 7393, 20 February 1902, Page 2

THE IRONSAND INDUSTRY.

MB CADMAN AND THE HABBOUB BOABD. At the meeting of the Harbour Board on Tuesday, Messrs Cadman and Berry waited on the Board with a view to placing the questions of tenure, royalties, and other matters on a satisfactory basis. Mr Samuel, the Board's solicitor, was present at the interview. Mr Cadman, atter being introduced to the members by the Chairman, Mr J. B. Connett, said that in laying his proposals before the Board he recognised that the members had the right and, as practical business men, it was their duty to safeguard the interests of the ratepayers, but if the Board acted on the principle of extracting the utmost pound of flesh, then the present proposals would be wrecked. At the same lime, he did not pose as a philanthropist who wished merely to benefit the district. The matter was a business one on the part of those who put a large amount of money into the concern, and naturally required to see some return for their capital. The question was : Should Taranaki receive the benefit of this industry or not ? And the reply to a certain extent depended on. the concessions made by the Board. Beviewing the present position, Mr Cadman pointed out that the existing foreshore lease had only sixteen years to run, and was encumbered with a lot of clauses as to renewal that were quite unworkable. Then the royalty under the lease was sixpence per ton on the sand used and a similar amount on the iron manufactured. There were other provisions also, including those relating to the capital expenditure, which were not workable. It was proposed to float a company having a capital of £250,000, and it would readily be seen that for so large a concern five aores was too small an area, and that the works would necessitate the provision of a much extended Bpace. Moreover, it might be necessary (he did not say it would be so) to import a large amount of skilled labour, and the company might in that event have to house these men near tb.6 works, and thus they would require apace for a township. As to the sixteen years' lease, it would be madness to erect expensive plant on land held for suoh a short tenure, and therefore it was only reasonable to ask for a term commensurate with the capital to be expended. As to the royalty : The present reservation was excessive, and his idea was that it should be altered to ninepence per ton on the manufactured article. He pointed out that if royalty were payable on the sand there would be a lot of trouble in gauging the quantity put through, and possibly squabbles would result ; but | this would not be the oaße if the royalty were confined to the manufactured article, the quantity of whioh would always show on the books. In the Old Country 3d or 4d a tin was charged, and there holes were cut and property destroyed, while here property would be improved. Another point was that if royalty were payable on the sand there would naturally be a tendenoy to leave the poorer quality, whereas if no royalty were payable on the sand it would be taken as it oame. Mr Cadraan next referred to and asked the Board to remember, the difficulty that had to be faced with referenoe to the erroneous ideas whioh existed at Home as to the labour laws of the oolony. Wherever be had been able to do so, he had explained the true state of affairs on this point, and had disabused people of their ideas as to higher wages and shorter hours. There was no doubt, however, that they would have to make a ; considerable reduction in the price of iron, so as to capture the trade of the oolony and j compete successfully with those who now held the trade. The new Federal proposals were another source of trouble, aa the bounty on the manufactured article to be given to Australian manufacturers was founded on the principle adopted in Canada. He had been asked why our Government could not do the same. He thought that the assistance and offers made by our Government had been very reasonable, and he was not prepared to ask for more. If reasonable arrangements were made in New Plymouth he was confident of being able to fix the matter up. In dealing with the question, so far sb the proposals were concerned, he might have to ask for some slight modifications, and should such a contingency arise he trusted that on receipt of a cable the matter would reoeive prompt attention. It reßted

'Continued on fourth page.)

7 Continued from page 2.) with tbe Board as to whether New Plymouth should be tbe head quarters of the industry or not Personally, he was quite satisfied that it should be, as it had all the facilities necessary for the purpose. It was therefore a question whether the Board was prepared to deal with him as representing the company. He did_ not wish for an answer right away, but if at the next meeting the Board gave a favourable reply he was prepared to go on with the proposal to establish the industry here. There was, however, one matter more which he had to bring before the Board, and that was the question of adequate shipping accommodation. This was a very important point in the scheme, as at present both the harbour and wharf barely sufficed for existing needs. He felt great reluctance in asking any company to start here unless something was done towards meeting tbe requirements of the industry. There were three courses open in relation to harbor improvements. The firßt was for the Board to do what was necessary; failing that, the Government might be asked, while the last resource was to - get outsiders to take the matter up. He did not think the Government ought to undertake the work, even if asked, so that, if the Board would not do j what was necpssary, the question arose as to what facilities the Board would give to outsiders to undertake the work. He considered that everyone must admit that the distriot of New Plymouth would benefit very greatly by the establishment of such an industry here, and though, as a rule, be was not of a sanguine temperament, he was confident in the success of the project in hand. He wanted to be in a position to Bay on the other side " Here are your title and conditions," and therefore he was anxious that these might be such as to be acceptable to those who were embarking their capital in the venture. After discussion, Mr Samuel suggested that the best course would be for him to arrange with Mr Roy the terms of the new lease, so as to settle the first step that day, and thereby avoid delay. This course was adopted, and the Board adjourned for luncheon. On resuming, Mr Samuel again waited on the Board, and submitted suggestions for the Petroleum Syndicate surrendering rights to ironsand, etc., in the lease held by it, to the new company, and the Board decided to agree to tbe issue of the new lease as desired by Mr Berry. Mr King asked Mr Cadman what his ideas were m regard to the harbour. Mr Gadman said that before he said anything he would like it understood that he was not responsible for anything that might have appeared in print or been said by a third party. In regard to the harbour, he could not say exactly what should be done, but he had met people who were prepared to enter into the matter, but they would first require positive information regarding probable revenue, and outlay that would be required according to probable trade. To carry out improvements already suggested by the Board would not cost so muoh as if the ironsand industry were suddenly planked down here. The Chairman said the question was bristling with difficulties. It was for the ratepayers to decide whether they would accept the company's proposals. Mr Maxwell said he had no doubt the ratepayers would gladly accept, if they were to be relieved of the rate, and were assured that a maximum consideration were received. Mr Cadman said the first question was: Was the Board in a position to carry out the harbour improvements itself ? Mr Maxwell and Mr McLean: Not the slightest hope. Mr Cadman said he would like the Board to place before the ratepayers the Company's definite proposals, and let them decide. The principal items would be in regard to charges, abolition of rate, fixing of maximum port charges, taking over harbour loan, and improvement of tbe harbour. There might be difficulty in some quarters through an idea getting abroad that the Company was acquiring a monopoly, but this of course was a mistake. One thing was certain, the Board would have to expend a large sum at first if it kept control of the harbour. If ironworks were to be established the harbour must be improved, and if the Board could uot do this (and it was really the body that should finißh the work), it should look out for someone who could. Mr Maxwell said the Board should receive specific information as to what Mr Cadman wanted, and if these were accepted, it could promote the necessary legislation. Mr Cadman promised to forward the information, and then withdrew.. Formal resolutions were then passed accepting the surrender of leases held by Messrs George and Alexander, and accepting the surrender, and agreeing to the issue of a new lease to Mr D. Berry for his ironsand lease between the Tapuae and Waiwakaiho rivers.— Taranaki News. | j