THE MINING LAWS.

Otago Daily Times, Issue 13653, 24 July 1906, Page 3

THE MINING LAWS.

■ IMPORTANT MEETING AT ST. BATHANS. AID TO PROSPECTING. (SraciAi. to tub Otago Daily Times.) ST. BATHANS, July 23. A special meeting of the St. Bathans Association was held here to-night to discuss the prospecting vole, to protest against the prolonged locking up of tho Kilda.ro claim, and to consider other mattere pertinent to tho mining industry and interests of tho district, Mr William I'yJo presided. The Chairman said he had to thank them for tho honour they did him in appointing him to tho chair. Having regard to the very large interests at stake, how widespread the interest in it the representative churaotcr of this gathering plainly showed, Matters of great moment to the mining community of St. Bathans and to tlioso not directly interested in mining would be brought forward. The administration of Iho Milling Act. moro particularly with regard to tho working and holding of mining privileges without carrying on operations, would be discussed, and, no doubt a number of resolutions on the subject would ho. submitted. Dion again the urgent ?ioed that had for long existed for a s.yslomatio prospecting for gold should bo pressed upon the attention of the Mines Department and the Government, These were questions of positively vital interest to every mining community in tho oolony. and through tlus mining communities lo the oniony as a whole. Inverting to the general question of the moment as to the manner in which mining privileges should he held and operated, lie must say that it seemed to him that the act in many respects required revision. That necessity had Irecn the moro fully impressed upon him ol late by Iho fact that eminent counsel lieforo the courts had described tho conditions of the mining laws as chaotic, mid at least ono notable recent decision had furnished grounds for the supposition that tho term " chaos" must bo .fairly descriptive of the condition of affairs.' He owed it to himself to point out. that his position in regard to the question was impersonal. H« was not personally interested directly one way or another, but as a. citizen of St. Bat bans he desired to see St. Bathans prosper, and ho did not desire lo nee its progress longer retarded by defects and anomalies that might easily he removed. He was strongly of opinion thai, some reasonable revision of the mining laws to meet crying anomalies and put an end to the notorious lordship with which they were oil familiar should l;e undertaken with the least possible de|ay. But he thought it was tho contention of this meeting, and he would leave it io <ith<!f speakers to give (ads ami particulars in support of that contention. i Mr John Eagle moved—"That this meeting views with alarm the judgment given recently by the Appeal Court in the mining case Bank of New Zealand v. Scandinavian Water Knee Company, ns being misul isfac. tory-to (ho mining community, and iiofc in ai-eord with tho mining laws of Now Zealand." Speaking lo the motion, Mr Eaglo said it wouid he well within the memory of (host! present that proceedings were taken in the Warden's Court on two different occasions by the Scandinavian Water Race Company lo have tho licensed holding held by Mr John Ewing in tho St. Bathans basin cancelled, pi {manly on tho plea of no work being done for u.number of years on the claim. The hearing of tho cases came before two wardens of great experience and long practice on mining law—Wardens M'Ennis and Cruickshanks. Both wardens traversed tho licensed holding, and gavo a long and patient hearing in their respective courts to the cases. Warden M'Ennis, after daj« of consideration, gave judgment of forfeiture granting tho claim to the Scandinavian Company; An appeal was lodged against the warden's decision by Mr Ewrng. i'lie appeal was heard in the District Mining Court, Judge Ward presiding, a judge of unbounded experience on mining laws. Jtulgo Ward upheld the judgment given in Iho lower court, and dismissed the appeal. Again an appeal was entered against the judgment of tho District Court, and tho rase was taken lo tho Appeal Court. Tho judgments of tho lower courts were not reversed. Tho Appeal Court claimed discretionary power—a power in no instance given to the Appeal Court,—and inflicted a fmo in iieu of forfeiture. Again, action was token in the Warden's Court by the Scandinavian Company for cancellation _of Hie same licenced holding. On this occasion Mr Ewing also applied for cancellation. Both applications were on the samo plea-non-payment of rent for 12 months. Tho hearing of both applications came before the warden, Mr Cruiekshank. After hearing evidence, from both applicant!;, judgment was entered up of forfeiture and the cancellation of Iho claim declared. The Scandinavian Company being tho first applicant, the claim was granted to the company. An appeal wa<) lodged by Mr Ewing against Warden Cruickshank's decision. The appeal was heard by Mr Justice Williams—a. judge respected for his learning and knowledge of mining laws. Oustico Williams uphold tho judgment, of Iho lower court, and di> mirscd the appeal. Agaui appeal was miule from Ju-nico Williams's decision to the. Appeal Court—a court, by its own confession, not well versed in mining laws. By the Court o! Appeal judgment has been given recently on the case—a judgment, in the opinion of this meeting, that stands in direct opposition to the mining laws of New '/calami. Ho had a strong conviction that Parliament, should bo approached by the mining community and asked that tho mining laws should be simplified so that barristers, judges, and laymen of ordinary intelligence could interpret the true meaning and intention of tho laws, According to the New Zealand Times, a barrister occupying a prominent position at tho bar in I lie! Middle Island recently remarked that

" they were like a trackless and entangled jungle, through which one bad to groix; his way as best lie might in the hope eventually of discovering somo open space in which average intelligence might perhaus find room to exert, itself." And a littlo while later one of their Honors interrupted a well-known barrister with tho remark: "Slop a moment, please. Repeat yolir statement. You must, remember I am only a layman so far as mining laws are concerned." "So am I," said tho barrister. Another judge, when reminded that he had given a. ruling with regard to a. mining question which seemed to he contrary to his present views, said, after looking at the case and amid great, laughter: "This was an otf-band "idgmont. and the presumption is that it in wroiijr."

Mr Patrick Fahcy seconded tho motion which was carried unanimously.

Mr Patrick O'Rocan moved-" That this meeting is of opinion that tho thanks of the rammnnitT uro duo to the directors

and manager of the Scandinavian Wafer Race Company for tho plucky way in which they have fought, the case against the bank, us much in the interests of the

districl os of themselves, and trusts that tho company will take the case to tho Privy Council; and the. residents of St. Bathans hereby undertake to support tho company in cverj possible way against the

Dank of Now Zealand in the further proseculion of this case, and to contribute to the costs if necessary." In moving this reso-

lution he honestly thought it was time some action was takon by the people of the district in this matter, He contended that the locking up of this claim was an absolute death-blow, not only to tho township, hut to the district, generally, and what was onco a flourishing mining township had gradually dwindled away until it would be a thing of the past unless united and concerted action was taken. While this claim

was worked there were two banks in St. Bathans, which had sinco been closed, and many other residences were vacant or had been removed, and business was in a stagnant stole all round. Now all this was in his opinion due to the action of the Bank of New Zealand, which, while not able to work this claim, kepi, it, in such a state that tho Scandinavian Company could not work its profitably, and was thus the means of a large number of the skilled mining population having to leave the district, and eeek employment elsewhere. And, wor«e than ill. some of these wore not paid for the las', work ihey did in protecting the bank's property, and hundreds of pounds wore now due io workmen who went out and worked in all soils of weather to assist the bank in developing its various properties. Now. was this fair treatment at tho hands of an institution which was at a critical period in its career saved from annihilation by the people of New Zealand, of whom the workers formed an important part. Ho (or one was quite prepared to put his

hand in his pocket, and assist the Scandinavian Company in this case, and also to assist the workers lo get their wages, which, at least, the bank should hold js a. debt of honour.

Mr Eaglo seconded tho motion, which was carried unanimously.

Mr If. F.xcoll eaid that he bad been informed that in the warden's office a notico of application for protection was lodged by (lie hank which ho felt sure no ono at. that meeting could approve of. He therefore moved—"That this meeting pledges itself to urge upon every person having an interest in the district to strongly object lo any application for protection of tho Kildare Hill claim, and, unless Iho claim is immediately worked, to join in proceedings for the cancellation," The press had taught them, and they all well know, the hard fight the Scandinavian Company had had to try and get the unworked claim without success. It was their duty io now publicly express their feeling that, it should be. worked. The Bank of New Zealand was the owner. The claim could he worked, and iho bank would not be in any better position at any time than it was now to work it. The hank should not bo granted any protection, as it would further help tho down grade of St. Bathans, iu which the non-working of this claim had been such a serious matter. Mr W. T. Wilson seconded tho motion. The Chairman said that any application for further protection now was a monstrous thing. Ho did not suppose the Scandinavian Company would accept assistance, but ho, with others, was perfectly willing to assist.

The motion was unanimously agreed to. Mr Edward Morgan moved—" That a heartv invitation, through Mr M'Pherson, M.H.R., bo extended to all the Otago members in the House of Representatives, asking them to visit St. Bathans and see for themselves the state of the Kildare Hill claim, and that they bo consulted as to what legislation is necessary to have a rehearing in the two cases—Bank of Ne,w Zealand and tho Scandinavian Water Race Company (registered), and that they also be asked to havo section 213 of 'The Mining Act, 1905,' amended so that all those workmen who have helped to develop the bank's various properties will havo priority over the mortgage, and to also mako such a state of affairs impossible in future."

The motion was seconded by Mr Patrick Garty, and unanimously agreed to. Several informal speeches were made at this stage. Mr Thomas Morgan urgently contended that tho Bank of Now Zealand should pay back wages due to certain men in tho district. Mr Patrick Garty heartily condemned the course things had taken. Mr Patrick Sexton expressed his belief I hat the manager of the Bank of New Zealand at Dunodin was such a very good fellow that he could be trusted to do jus-

ice to the district once the matter was 'nlly explained to him.

Mr William Guffio, of Nascby. expressed his hearty sympathy with tho object of the meeting and his hearty admiration of tho way in which the meeting was conducted. Nascby people were unanimous supporters of the people of St. Bathans in this matter. But the Nascby people were still of opinion that Iho" law of Mr Justice Williams and Judge Ward was right and tho law of the Court of Anneal wrong. However that might be, it was advisable that the law should bo made so clear that the

Appeal Court could understand it. The Chairman thanked Mr Guffio for (he kindly thought that had prompted him to speak on a matter affecting interests outside his own district.

Mr Neil Nicqlson said that, on behalf of tho Scandinavian Company, he had to thank those present for their attendance and cordiality. Ho agreed with all that the speakers had said, and a good deal more. As to what ho thought he desired to ho absolutely outspoken. The Scandinavian Company had determined to tight this thing to the bitter end. There would be no .surrender on the company's side. If ho had to stop till he left St. Bathans without a shirt on his back he would see that this claim was worked. He did not care whether the Scandinavian Company or the Bank of Now Zealand worked it a 6 long as it was worked for the benefit of (he placo and ceased to be a nuisance to tho Scandinavian Company. The nonworking of the claim blocked'up the whole of the upper end of the St. Bathans basin. It had flooded a portion of the Scandinavian Company's claim and brought in large portions of it. The Chairman made :i spirited protest against a reading of the law which he considered to be antagonistic to all the traditions and spirit of a mining community. Tho next matter of importance was the question of prospecting. Mr William M'Conuochic thanked the meeting, as a director of tho Scandinavian Company, lmt tho company did not want. a shilling of assistance from anyone. Ho was not a gold minor, but lie was always eager to encourage tho industry. Ho had not made, much in it. People talked of gambling, out every business enterprise was a sort of gamble. Miners must have some concessions to justify their largo expenditure. The Scandinavian Company, like other companies, must have ground to put its water upon. He had been asked to say a word about

THE PROSPECTING VOTE. Miners generally bad been badly treated by tho Government, who had not spent a shilling on tho true development of the auriferous areas of this district, although it was well known that large quantities of «old were lying ready for development. Last year the Government gave them £200: this year not a farthing. The mining industry in that district had been absolutely neglected by the Government. Just claims for Government aid in this direction had on various occasions been brought under the notice of the Mipes Department, but so far nothing had been done to satisfy the milling population or alleviate the increasing depression which had been for years slowlv but surely bringing about tho depopulation of formerly flourishing towns. For example, many places in Otago where a great number of men wcro employed as sold miners were now almost, deserted. Any Government which neglected persistent .endeavours to increase tho output of gold in tho country over which it had control perpetrated on injustice which it might rind difficult to explain. Speaking to a press representative, Dr J. M. Bell, the eminent geological scientist, lately selected by the Government of (bis colony, said: " We, of course, aim at assisting prospecting as much as possible. I do not say that we arc-successful in finding every vein and deposit of economic value, bnt I do say that when our work is completed wo shall have specified areas in which prospecting can bo conducted to advantage. It is notnecessary :o be r. scientist to engage in prospecting, and though, generally speaking. I am strongly opposed to haphazard prospecting, I havo a great regard for prospecting conducted on reasonable ideas which are likely to give deposits of value." Now, he did not know much about geology, yet had even- respect for this young scientist, and would not be at all surprised if at (lie end of 20 years ho might happily overtake the work he had so elaborately outlined for orcseut and future operations. He noted that, it was Dr Bell's intention to include "(he physiographic, petrographie. and palffiontologic features of the colony.' 1 But. however much he and others might regard a minute and elaborate survey of this colony geologically, they lived for tho present, and required present wants satisfied, independent of results accruing to posterity. What they really warned was that, now they should have ways and means provided for the development of their mineral resources by parctical miners, who only awaited the opportunity. It was well-known, and an .undisputed fact, .that

there were in this colon)' the very best men to prospect for gold—descendants of the hardy pioneers. What wore the men in the. early days of gold-digging?- Not theorists, but men of practical knowledge. Such men existed to-day, but had l>een compelled to seek other means of livelihood, and these skilled minors had had to break up their homos in the minig centres and go elsewhere. Had a grant been made for the prospecting of the auriferous inland districts of this colony, those districts would not now be in such a stagnant, dc|wpulated state. Certainly he admitted that frequent promises had been made, but they were still unfulfilled. In justice to the miners and to the colony this should not bo so. Was not a steadilyincreasing output of gold one of the necessaries of this colony's progress? Instead of thai the skilled miners were gravitating to the large towns on the coast. But did not the industrial prosperity of these large cities depend a great deal upon the development of the mineral resources and products of iho inland regions? Ho said Yes, for, taking the gold production alone, if it decreased (lie colony could not be said to be in a progressive state; nor was its Government, to his mind, doing its duty. The depression existing in any gold mining district not only affected seriously the welfare of the individual miner, but the colony as a whole, for the. development of gold had not been persistently pursued, the Government not giving regular and satisfactory support to the mining community. Of course, it was well known that prospecting alluvial areas especially could be materially aided bv the conservation of water. The largo supplies of water available in most mining districts. _if utilised effectively, would certainly bring about improved results and tend to ameliorate the condition of these districts both for farming and mining, and it was therefore in the interests of the whole community and the mining districts of the colony that he moved that the following resolution he forwarded to Ihc Minister of Minos:—"That this meeting, representing St. Bathans and district, views with great and increasing dissatisfaction the apparent apathy of the Government for the past few joars in the mailer of assistance to gold miners; that, in fact, the Government has practically done nothing, and instead of the gold mining industry being in a healthy progressive state in this colony the reverse is the case, as is obvious by the depression in mining centres, and that this meeting would respectfully submit that a substantial vote be placed on the •Estimates on a similar scale to grants made for mining and prospecting in New Soutli Wales, and that this bo brought into effect without unnecessary delay in order to satisfy the wants of the miners of our own colony, and that a substantial petition be prepared for signature and presentation to flic Mines Department of the colony to give effect to this resolution." Mr Edward Morgan seconded the motion. , .

Mr Neil Nicolson said lie thought it was extremely necessary that something should be done to revive the mining industry, The present (ielda were steadily becoming much lower, much harder to work, and walcr hud all to bo concentrated on one claim. Where they had plenty of fall or get-a.way for the stuff the water _ was divided among more individual minora I linn at present. Ho felt quite certain that plenty of gold still existed and would bo got _in New Zealand, and more especially in Otago, if prospecting could only he properly carried out in a systematic manner. The returns of gold exported from New Zealand lietween 1857 and 1901 amounted to £65,000.000. Of this Otago contributed £25,000,000, Wcstland £20,000,000, Auckland £13,000,000, and Nelson £7,000,000. Last year Otago produced £663,000 out of a total of two millions produced in tho colony, and a very small proportion of Otago's production was from quartz reefs; it was nearly all obtained from alluvial mining. Plainly we of Otago wore more concerned in alluvial mining, though there was room for development, of quartz and scheelito mining. They had to find, if they could, -where.this alluvial gold was coming from, and they knew there could only be two sources—from reefs or from soft formation. Now there was a mighty ancient body of drift which ho had observed in many places stretching from Clyde to the sea, at ShagPoint, and although there had been large quantities, of- gold taken out of this drift, or from alluvial workings near it or surrounding it in different places—for instance, Clyde, Mitakamii, Cambrians. St. Bathans, Nasoby, and Macrewheinia.—there bad been no gold worth while found above this drift formation in tho different nlaees worked. He was firmly of opinion that nearly all this alluvial gold had been shed from this drift through denudation in past ages. But this drift had never been properly prospected, and to prospect it properly State aid must bo applied. A petition from the St. Bathans branch of the Miners' Association was presented to Parliament last year asking for aid to prospect tlio drift, and while this petition was before the. Mines Committee the committee was- busy overhauling the Mining Act. The member for the district at that timo (Mr Hcrdman) sent, down a copy of the act as proposed by the committee lo be amended. 'A subcommittee of the St. Bathans branch of the association considered the proposed amendments. Several of them the- subcommittee disagreed with, and asked that, they should lie altered; but all to no purpose. The act was passed with tho amendments suggested by tho Mines Committee without alteration, One of the sections which tho sub-committee desired to amend (32) was, as submitted bv the Mines Committee, as follows:—"That the Colonial Treasurer may from time to time, on the recommendation of the Minister, pay to any person engaged in prospecting or pioneer mining a subsidy not exceeding five shillings for every pound subscribed by such person in prospecting or pioneer mining during (he proceeding 12 months." The St. Bathans sub-committee suggested an amendment in this clause to alter "not exceeding five shillings in the pound" to a provision that tho Treasurer should pay « subsidy of 10 shillings in _ the pound, and to insert, instead of "during tho proceeding 12 months." " payment to bo made simultaneously with the commencement of operations, where the warden or a local institution has control." Those suggested amendments were not accepted anil the section improved. As passed, it was useless, because, first of all, tho Colonial Treasurer

"may" give a subsidy of five shillings in the pound, but ho also " may " give nothing, and ho may only give threepence in the pound. The prospector would havo to go out and endure 12 months' hardship with the chance that the Colonial Treasurer might give him nothing. That section of tho act should therefore ho immediately amended. Under tho amendment proposed by the St. Bathans. Association, tho prospector would 1)0 about 25 shillings a week, or 60 men about £75 a week, or a little over £3000 a year for about 800 ounces of gold. He (the speaker) contended that it was impossible for these men to prospect for that, time in this country without making some now and important discoveries. The money spent would be a splendid investment for tho State, and would givo our skilled miners some beart to stick to the industry and not. leave it for other occupations, as n-.any of them were at present doing. The extra- revenue received from tho new discoveries would also bo a great.

assistance to the local bodies. The mining revenue was dying away in such a manner that if some new discoveries were not made

the land would have to hear an extra rate. t« make up for the loss of mining revenue. 11l 1904 there was only £2500 spent in prospecting in New Zealand, and during the same, period £30.000 was spent in New South Wales, And yet New Zealand produced more gold than New South Wales did. The prospecting should be done adjacent to water supplies, or places where water was capable of beiiifr conserved, so

that, when gold was discovered the wafi>r could bo immediately made available _ fo work tiro discoveries. At the present time the Government was applying for a water right at Cambrians which was intended to irrigate the country between there ami Clyde. But Ibis prouosMi line of rJCD was much 100 low to he of any real value cither for minin- or irrigation, liming and irrigation should go lowlier, and the only way in which that could bo done would be to construct a reservoir up on tho Dimelan Creek, taking the water at a high enough altitude from that reservoir to bo above'the line of the quart'/, drift formation, so that it could still bo available for minitiß and also.be high enough to irrigate all the lands between St. Bathans and Clyde. He thought that, the Government should lie again approached in this

matter. A monster netilion should lie presented to the Minister, and ail the Olago members should be asked to assist, localise * what would be of benefit to the country ( districts must be of benefit to the cities. * As an instance of what had been done by \ prospecting parties, they had the famous a ,W;iihi mine in iiie North Island, which in \ 1904 produced £673.000 worth of gold, and t paid dividends to the amount of £297.000. " making ' the total dividends £1,552.000. ( There were quartz deposits about Hough Ridge and Blaekslone Hill which wore well ( worthy of attention, with a view to.future t development. \ Tiie motion was unanimously agreed 10. i . Tlio meeting was a largo and represents- * five one. and. so far as could to seen, i absolutely unanimous. The speakers were heartily and frequently applauded through- { out. ' . SUPPORT OF THE MOUNT IDA \ ASSOCIATION. . t The following letter was read from Mr N. S. Keed, secretary of tho Mount Ida ( Miners' Association:—" I am directed l>v . the Mount Ida Minors' Association to \ acknowledge receipt of your communication i os to the effect of the late decisions of the " Court of Appeal on ihn mining law of the ( country. This association is quite in sympathy with the St. Bathans; Association' in { this matler, and at a meeting held this owning a strongly-worded resolution was v carried unanimously. I enclose you a copy . of the resolution.. Copies have" been sent. ' to the Minister of Mines and the, member i for tho district. The resolution was as fol- ' lows: 'That this association views with | alarm the present stato of the mining law. which, according to tho later decisions of ( Court, of Appeal, apparently permits . auriferous ground to be held 'umrorked < for years without risk of forfeiture, the ( effect of which will be to encourage sbepherding, and this association respectfully ' urges upon the Government tho necessity ■ of amending the Mining Act so that the provisions dealing with forfeiture and abandonment may be made effective, and that persons holding gold-lxiaring ground shall be compelled to work the same, otherwise it shall become forfeited and bo cancelled, and that copies of this resolution be forwarded to tho Minister of Mines and to the member for the district,'"