THAMES DEEP LEVELS.

New Zealand Herald, Volume XLVI, Issue 14235, 4 December 1909, Page 8

THAMES DEEP LEVELS.

CLAIM BY MAY QUEEN CO.

A DIFFERENCE OF OPINION.

A new phaso has arisen in connection ■with the Thames deep levels, owing to tho presentation of a claim to the Thames Deep Levels Committee by the May Queen Gold Mining Company for £4180. The following statement on the subject was made to a Herald representative yesterday by Mr. C. Hudson, chairman of the committee : —"Tho account presented by the May Queen Company was in respect of money expended by them in unwatering tho Thames Hauraki shaft and deepening the same 163 ft. ' This amount (£4180) is exclusive of the sum contributed by the Government (£6000) and the local bodies towards the cost of the work. The expenditure was undertaken by them under an arrangement made by the former Minister for Mines (the Hon. Jas. McGowan) with the Thames Drainage Board. Under this arrangement part of the conditions under which the May Queen Company undertook the unwatering and deepening, and obtained Government assistance, was that in the event of other mining companies being desirous of using the Thames Hauraki shaft they should be called upon to reimburse the May Queen Company a portion of their outlay, such portion to be allocated by an application to the Warden. The May Queen Company now claim that the various companies interested in this deep level scheme must apply for an easement, and come before the Warden for the proportion of cost due by them to the May Queen Company to be settled.

"The present position of tho deep level scheme is," continued Mr. Hudson, "that the May Queen, Saxon, Victoria, and Waiotahi Companies have signed the deed drawn up by the Mines Department, and the .attorney of the Kuranui-Caledonian Company (Mr. Dcvore) has intimated that he has the cabled instructions of his London directors to sign, and is only waiting for more information on this claim of the May Queen Company before affixing his signature. It is important to mention that this deed ignores all mention of compensation to the May Queen Company, and gives the Deep Levels Board (which is to consist of a representative of each of the subscribing companies and two representatives to be appointed by the Government) the right to enter the Thames Hauraki shaft, and commence the work. This deed was signed by the May Queen Company without reservation, but they now claim that their rights under the arrangement made by Mr. McGowan must be taken into account, and that they will not pay their contribution to the scheme until the matter is settled.'

"The position was discussed at a meeting of the Deep Levels Committee," said Mr. Hudson, "when the amount of the claim was for the first time before them. A motion, offering the May Queen Company £1000 in full settlement of any claims they may have, was carried (the May Queen representative dissenting, and stating it was useless to make the offer). There the matter stands." ! : THE COMPANY'S ATTITUDE. Asked for an official statement of the reasons for the May Queen Company's attitude, the Hon. E. Mitchelson, chairman of directors, stated*that before the agreement for the sinking of the Queen of Beauty shaft was entered into, the May Queen Company, having failed to obtain any assistance from any of the other companies, applied to the Government, which f ranted a subsidy, and in order that the lay Queen Company might we protected stipulated that in the event, at any time, of any company or companies desiring to work from the Queen of Beauty shaft, the question of reimbursing the May Queen Company should be dealt with by the garden, and that whatever his decision might be as to the equitable proportion to be paid by each company or companies to the May Queen Company, it should be final. The agreement entered into between the Minister and the Deep Levels Committee contained a clause which the company's solicitors, Messrs. Dovore and Martin, considered took away from the May Queen Company the rights conferred on it by the letter from the Minister for Mines, dated July 7, 1907, and it was not until such advice had been received from the solicitors that he (Mr. Mitchelson) became aware of the position. He immediately telagrapheu to the Minister for Mines, and was informed subsequently that the Crown solicitor at Auckland had been instructed to preserve the rights of the May Queen Companv. and to prepare a clause accordingly. "At the meeting of the Deep Levels Committee yesterday, proceeded Mr. Mitchelson, "the companies other than the May Queen Company would not agree to submit the question of adjustment to tho Warden, and a resolution was carried, I alone dissenting, offering £1000 in complete settlement. This, of course, the May Queen Company could not, and will not, accept, but are prepared to accept any amount that may be allocated by the Warden. At the meeting, however, on behalf of the company, 1 made a counter offer for the May Queen Company to contribute one-third of the £4178 expended, leaving two-thirds to be made up by the other five companies, viz., the Saxon, Moanataiari (just registered), the Victoria, the Waiotahi, and KuranuiCaledonian. Thus the Mav Queen's proportion would be £1394. and that of each of the other companies £557. very small, comparatively speaking." The May Queen shareholders, added Mr. Mitchelson, were not philanthropists, and could not be expected to bear the whole cost without being reimbursed by other companies, which were going to participate in the benefits of the sinking of the shaft. They only wanted to be treated fairly.