COAL MINING

Otago Daily Times, Issue 19066, 11 January 1924, Page 13

COAL MINING

any part of the province, and the quality of the article produced is of a higher grade than that to he found elsewhere in Otago. The coal mining industry has proved of immense value to a very wide district, as owing to the proximity of the mines householders have been able to secure supplies at a reasonable price, and manufacturing concerns have been greatly benefited by the availability of fuel for steaming purposes at a comparatively low figure. It is difficult to state when coal was first discovered in South Otago, but apparently the settlers had not been in the district very long before its existence came under notice. It may be mentioned that the best coal in the district is a high grade lignite not very much inferior to the bituminous coal found on the West Coast. The presence of coal in the Glutha district was known at least as early as 1862, for on February 22 of that year a letter, signed by Mr James George Lews find addressed to Major Richardson (Superintendent of the province) appeared in the Otago Daily Times.

On May 6, 1852, Mr Archibald Keith (engineer "on the steamer Samson) reported on an experiment with the coal. He stated that the quantity consumed was at the average rate of 6cwt per hour, as compared with from 4cwt to scwt of Newcastle or British coal. The average pressure was about the usual. Mr Keith stated that as a fuel for steam vessels employed in similar sendees to the Samson the coal seemed to be exceedingly well adapted. As far as is known the first coal mined at Kaitangata was taken out in 1871, the discovery of the extensive deposits there being made by the late Mr Win. Aitcbison on his own property. Before long steps were taken to put the coal on the market, the Kaitangata Railway and Coal Company being formed for the purpose. The first lease to the Kaitangata Railway and Coal Company was granted by Mr Aitchison on May 20, 1874, and the company was incorporated on April 29, 1875. The seal of the company was affixed to the original lease in the presence of Messrs T. T. Ritchie and Reginald M‘Donald (directors). The capital was then £25,000 in 2500 shares of £lO each, but on September 13, 1890, when the expansion of the business and the necessity for undertaking additional development work made the raising of additional funds imperative, the capital was increased to £50,000. Like many other commercial ventures the Kaitangata Coal Company had a hard struggle in its early days, its operations not being very successful. In fact, the company’s position was such that in 1885 Mr • Aitchison granted it further Concessions to enable it to carry on. In course of time the company overcame its difficulties and entered upon an era of prosperity. Its coal was in keen demand, and for many years its chief difficulty was to keep the output up to requirements. The success achieved by the Kaitangata company led to the exploitation of an additional area of ground in the locality, the Castle Hill Company, the capital for which was provided in London, being formed. This company’s mine was situated on the property adjoining that of the Kaitangata Company, but though a large expenditure was incurred in sinking a shaft, the geological formation was so peculiar that a really good seam of coal was never struck, and the career of the company could not be described as altogether successful, despite capable management by the late Mr Robert Lee. Eventually negotiations were entered Into with the object of bringing the two properties under the management of one company, with the result that the new ZeaZealand Coal and Oil Company was formed This company, which owned the Castle Hill mine, purchased the property of the Kaitangata Railway and Goal Company, and also acquired considerable deposits of shale at Orepuki. A good deal of money was expended on tho erection ot the necessary works to treat the shale deposits, but the returns wore extremely disappointing, and the company has not carried on operations there for many years. About October, 1898, the original Kaitangata Company went into voluntary liquidation, the liquidators being Messrs T. W. Kempthorne, John Mitchell, and the Hon. T. Fergus. Under the auspices of the New Zealand Coal and Oil Company the coal deposits at Kaitangata have been systematically developed, and the output from the mines amounts to a considerable quantity annually, a large number of men being employed during the busy season, which, of course, is experienced during tho winter months.

In 1900 a very interesting case in connection with the operations of the Kaitangata Railway and Coal Company before its absorption by the New Zealand Coal and Oil Company came before the Supreme Court in Dunedin. Mr Aitcbison, the owner of the property, took action against the company, asking for an inquiry and accounts in connection with alleged deficiencies of coal returned for royalty purposes, and paid for. The actual hearing of the case, which came before the late Mr Justice Williams, occupied 16 days. Messrs Sievwright and James appeared for Mr Aitcbisnn, in whose favour judgment was given. The case created widespread interest, both in the Dunedin and Kaitangata districts.

A VALUABLE INDUSTRY. EXTENSIVE DEPOSITS DEVELOPED.