Niagara Gold Abandoned But Driver On New Quest

Northern Advocate, 28 October 1948, Page 9

Niagara Gold Abandoned But Driver On New Quest

ATTEMPTS to salvage Niagara gold have been abandoned because it is not a financial proposition, said Diver J. Johnstone, who is visiting Whangarei on holiday. On the invitation of the president of the New Zealand Society (Sir James Elliot), Mr Johnstone will show three films—Wanganella, Marine Life, and Niagara—in the interests of the St John Ambulance to assist the Whangarei brigade in the purchase of a new ambulance.

The final blow to the Niagara salvage was the 25 per cent loading on Australian capital, as Messrs J. and W. Johnstone were backed by £20,000 in Australia, which would be reduced to £15,000 as soon as it was transferred, and the gold would be paid for in Sydney at Australian rates. The best terms the company could obtain from the Bank of England was 50-50 when it was considered 00-40 would be a fairer proposition, as the divers would provide the ship, equipment and personnel. Salvage rates for the crew would be an unknown factor that could quite easily cripple the organisation before any gold was realised. Current rates on other salvage jobs were: Wanganella £14,000, Reynella £41,000 in danger money. There was no way of estimating the amount that would be required to cover danger money on the Niagara job. COULD BE DONE Mr Johnstone is quite confident that, with modern equipment, the salvage part of the operation would not present much difficulty, although the ship is lying in 438 ft of water. Of the £151,000 left in the Niagara Mr Johnstone is confident that he can raise two-thirds, valued at £IOO,OOO. The Bank of England would require £50,000, leaving £50,000 for the company which had already put up £20,000 in equipment to get back perhaps £20,000 when all expenses were paid. “It would be financial suicide to go ahead with the job,” said Mr Johnstone. “It’s sailing much too close to the wind.” CULMINATES TODAY Mr Johnstone’s second big salvage job in New Zealand, the Wanganella, was completed last Tuesday and the ship is expected to take the water today. There is still a considerable amount of interior work remaining to be done before the engine trials can be carried out, and the ship can return to Australia.

In Whangarei on holiday before his return to Australia, Mr Johnstone intends to make available his films, with the commentary by himself, for the benefit of the St John Ambulance. These three films tell the story of the two largest salvage operations in the history of New Zealand, and give a graphic illustration of underwater life.

One souvenir of the Niagara operations would gladden the heart of any fisherman. It is a six-foot hapuka. Mr Johnstone is looking' forward "o meeting the Mends he made during his stay in Whangarei. “If the people of the Far North want to see my pictures, I shall take them there,’’ he said.

Arrangements were made today for Mr Johnstone to address the Whangarei Girls’ High School next week. He is directing to the task of providing an ambulance for the Whangarei district all the energies that have made his name as a diver and salvage expert spoken of wherever seafaring men meet.