THE MINING ACT.

Otago Witness, Issue 2426, 12 September 1900, Page 19

THE MINING ACT.

PROTECTION OF DREDGING CLAIMS,

PROPOSED AMENDMENTS IN THE LAW.

A meeting of gentlemen interested in Iho dredging indu-stry was held in the Board Room, Agricultural Buildings, on Wednesday, the sth, to consider the question of endeavouring to obtain certain amendments in 01 modification of the provisions of the Mining Act, as far as they relate to special dredging claims. Mr John MacGregor was voted to the chair, and there were about 150 gentlemen present. The Chairman said this was a meeting called at the instance of the Gold Dredging Improvement Association, and he was very much pleased to see such a large and so representative a gathering. It showed that the necessities of the case had appealed to the comanunily. There could be no doubt, be thought, that the case had become a very urgent one. " Something must be clone without delay to prevent a very serious state of matters arising, and they might have some difference of opinion as to what should be done. For his own part, he had indicated publicly what his view of the matter was, and it was perhaps unnecessary for him to repeat ivhat he had already said. The fundamental cause of the difficulty, he was convinced, was this: that the law dealing with special claims for dredging v,-as not at all adapted to meet the necessities of the ca^e. They had an act which dealt with the old-fashioned claims of

an acre up to live acres exactly on the same footing as, dredging claims of 100 acres. The consequence wss that they had provisions compelling them to carry out work upon a claim within a certain fixed time, which was absolutely impossible. They knew that the state of the engineering shops and foundries in Dunedin — in fact, all over the colony- — was such that it was absolutely impossible to comply with the requirements of tho law. At present the law required that a dredge should be put upon a claim vithin a certain number of months and started to work otherwise the owner of the claim ran the risk of losing it. They knew that the state of matters was now such that it was absolutely impossible to comply with the requirements of that law. They also knew that the provisions for protection were entirely inadequate to meet the case, because it was necessary in respect to every claim for which protection was wanted to make a special application, and it was very difficult to get more than two or three months' protection. The warden had no power to give protection for more than six months, and the Minister could not give protection for more than 12 months. He had been told that the Minister -,vas not willing to grant protection for more than three months. He (the chairman) hoped that that was not so. It it was, it was their business to open his es'es to the. real state cf the case. The provisions for protection were quite insufficient. At present a company could not go to the warden and get more than three or four months' protection. Those who were directors of companies were, indeed, afraid to ask the warden for protection, lest he refused it and someone went straight away and jumped the claim. He knew every director preterit had had himself face to face with that difficulty. They knew nl»o that protection for three or four months, or even six months, was not sufficient to meet the case, as in the case pf a large number of claims it was impossible to sset dredges for tivo or three year.«. Tho consequence of this was very serious. Be w?s quite &ure that they were all alive to the necessity of some tiling being done. For his own part, he was quite convinced that nothing short of a dight change in tho mining law would meet the present case. He thought o change should bs made to this effect: that the Governor have power by Order-in-Council to suspend the operations of the labour clauses that require dredges to be placed upon claims" within a certain time, or that the Governor by Order-in-Council grant a provision hiving the same f-ffect a-5 the protective clauses; but, instead of applying to iudividuarcJaims. to ayuly over the whole district. T'jat, ho was sure, was what it would bo found necessary to do, and nothing short of something of that ?ort would serve their purpose. He would move the following resolutions ihat had been prepared: —

1. That in the opinion of this meeting, representative oi the dredging industiy in Otago and on the West Coast, the present position of the l£".v relating to special dredging claims ia such as to seriously retard the development of gold dredging as a stable industry on sound principles. That th-3 combined effect of the conditions limiting the period within which dredges have to bo built, the inadequacy of the provisions ior the granting of piotection, and the pbandoimicnt and forfeiture clauses is to jeopaidi&e titles, ond cause uncertainty and iaseeurity of tenure.

2. That the number of dredging ventures in Ol.ago and on she West Coast for which capital has boon already subscribed is so great that it is pbsolutoly impossible to comply with th-> requirements of the law as to the time wifchm which work has to be commenced on the chvnis; that the ISTew Zeilpnd foundries and CiigiaeerL.g.ftliops are qiiits incapable of coping with the work vithin the time allowed; that the existence of these restrictions and the necessity for attempting to comply with them have lnd the effect of compelling 'companies to send a/ large number of orders for machinery to Victoria, New South Wales, America, and England, and some are oven making preparation fo send orders to Germany; that the haste with which the work has to be cairied out is detrimental to the industiy, os it is impossible to introduce much-, needed improvements in gold-saving and other appliances; that there is a great risk of a considerable amount of money being wasted in the building of new dredges in cases where second-hand diedges could be utilised if the companies could safely await the result of actual trial ; and that tho necessity placed upon companies of calling up, their capital within a few months of flotation in every case, and the finding of such a laige amount to pay calls wher only a few dredges are yielding returns, is telling so severely upon all classes of the people that the development of one of the most p/oniising industries of the country is seriously imperilled.

3. That a large number of other claims have be°.n taken up, and Lir^c sums paid for survey feos and otherwise, apd that uulp'.s some such amendment of the law as above indicated is mßcls the holders of such claims will either have to attempt to float companies to take them up of run the lif-k of abandonment and forfeiture, and thus the evils of the existing state of matteis will be fmHier intensified.

4. That tho enisling prcviaio-is for protection of individual claims for a lew months are qxa+e ungiutcd to such a <=tat-2 of things as exists in Ola°o and on ths West Coast, and m order to meet so exceptional a case it is necesp&vy to amend the act, so as to allow of protection being g! anted by Ordei-in-Council over a whole district or any specified area. 5. Tint copies of this --evolution bs forwarded to the- various miiiisi? centres, and that meetings Le arranged to bring -ores-sure to bear upca tlio Govermiie'it aivl Parliament «o as to secure the ncces^aiy legislation being passed this session as a matter of urgency, and that the members for the city and suburbs be requested to arranoo for r, large deputation of members to wait upon the Premier and Minister of Mmes for t]is pmposc of urging the necessity for immediate pction.

Mr J. White : T bog to .second tho resolution — iust formally.

Mr T. K. Harty said it seemed io him that the resolution was of a too general character, and it would be better to specify what they wnntpd— what extension .should be granted. His os^n impve—iou was ihat there should be at le f iot two ynai", granted in regard to claims already Boiled. He thought there should be something specific.

Mr Lawpon said he* would .support Mr Harly in that. He thought the resolutions were rather general. They required something to meet snecial cases of companies already floated. If they approached the Government to aHe'- the mininp; laws permanently they would not meet with the same success

Mr Rap-., ay snid that neither Mr Law^on's nor Me Harly'rf suaaeslions would meet i^e ca^e. No relief could be granted by the Government till (he act was amended. If the meeting advocilod any action at all, il should adopt tho resolution rend, pnd then appoint a committee to acl. The first slop was to adopt tho resolution, as embodying the opinions of that very large and representative ineeti"2'.

The Ch-urrppn *aid that the suggestions made by Air U.irlv .and Mr Liw-on could be met by the addition of three or four words to the clause*, fo the effect that an extension.

should be made for a period of at lt?ast two yeirs-

Mr Lawson said they must be careful to steer clear of anything that would indicate that the Government were being asked to encourage "shepherding." They must be approached on behalf of the companies already floated.— (Hear, hear.)

Mr J. Neil said it was a selfish tiling to restrict the proposal to claims alieady floated. Other claims deserved to be protected as much as those of companies already floated. He thought they should adhere to the original resolution. It would meet the case.

Mr Finch said there was ? good deal in Mr Lawson's remarks. When they approached the Government they required to be definite. The shortest way would be to ask the Government to suspend totally the working clauses of the act for the space of two years, and there was no doubt ifc would work well for this reason : Those who were at present endeavourin-g to work would not relax their efforts, because it was essential to their interests that, having started, they should go on towards completion, and get gold as soon as possible. In the case of those who had not started to get their dredges, it would be utterly impossible for them to get dredges within the next two years in New Zealand. In the cape of those claims which were not floated, they would have their period of protection extended for two years- He did not think too years was too long, because it would take a long time before the company could possibly Be floated. It seemed to him they should ask the Government, to suspend the forfeiture, labour, and abandonment clauses for two years. Mr Lee said that Mr Lawson did not wish to include companies not floated. Supposing a company were floated two months after the proposed amendment were made? Mr Lawson said he- was a broker, and as keen to make commissions as much as anyone. If they included companies not already floated they would have a mild boom started again, and claims rurfhed on to the market in an undesirable fashion.

The Chairman said that one of the essential principles of the resolution was the 'proposal to make an alteration in our present law to i this effect : that instead of protection being gianted to each claim applied for, protection bo granted over certain areas. It might be over the Otago goldfieldd, or a certain river, or a'certain district, but not over particular specified claims. The Govcrnor-in-Council should be empowered to proclaim o°rtnin aiea.s exempt from risk of forfeiture, lie hoped no distinction would be Taised between registered and non-registered companies. There were a large number of claims waiting to be floated. Supposing some of the companies on the West Const struck good gold, there would be another boom on the West Coast, if not here. Those who held claims would then put them on the market. They would say that if they did not put them on the market they would lose them. No resolution on the Stock Exchange would j stop them. — (Hear, hear ) ! Mr Harty suggested that Mr J. A. Millar | should address the meeting. Mr Millar, who was received with applause, said that he came to the meeting more as a listener, and to hear the opinions of those ! present, who were more deeply interested in dredging than he was, although, like many more, he had dabbled in it — perhaps more than he should have done.— (Laughter.) The question raised was a serious one, because it practically involved a complete alteration of one of the chief existing mining principles of the Government. That principle had always ! been that no one should take uo ground without going on with tho working of that ground.' Now, according to the resolutions that had been read, they were going to ask the Govern- ! Mont to put its regulations on one side altogether, and allow a man to hold ground without doing anything to it. He thought they were justified in asking for some modification'of the regulations, but he was doabtful as to whether it should be so wide. If he uni derstood the trouble rightly, it was occasioned by people going into more companies than they ought to, and v.'hat good would it do if they were going to protect these claims to enable further flotations, and consequently fresh calls? He could understand those present taking up the position in saying that every company that was making every effort to work tho ground, and found it impossible to comply with the regulations, should have protection, and he agreed that the regulations should be amended as far as these companies ! were concerned. In this they would be upheld by every man in the House. But if they asked that every man who pegged out ground should be allowed protection for two years, ho was satisfied it would never get through Parliament. He could say that, as far as he was concerned, he would do everything in his power to foster the dredging industry, which had become the greatest industry in the South Island. Anything that could be done in reason, he thought they could rely on the Government to give effect to ; but if they were going to ask for wholesale protection for Any claims that might be pegged out in the . future f'cy would not get it, Supposing-for a minute that -it was granted, what would hinder a 'cute syndicate buying up all the available options, and eventually floating companies to work them? Tho Government was not going to support anything of that kind. There was one objection that lie s-aw in the proposal of tho chairman in making protection apply to a district. Let each claim stand on its own merits, and go to the warden and .show why in-otection was necessary, and get protection on that ground alone. He would bo glad to hear the views of other gentlemen present on the resolutions, and if it was apparent to him that they were going to benefit the mining industry he would be quite ready to support them. In conclusion, Mr Millar advised the meeting not to ask for too much. He said they all know that the House had been silting for eleven weeks, and. that as soon as the Estimates were over members clamoured for the Public Works Statement. As soon as that was disposed of tho session was practically over, and the less they asked for tho better chance they had of getting something done. Ho suggested that they should ask the law to be amended to enable tho Government to give protection to bona fide companies, and to allow the rest to stand in abeyance until next session.— (Applause.) It was suggested that Mr Lawson should move an amendment on tho lines lie had indicated, if the meeting approved of that courfo.

Mr Lawion thought it was a ca&e of taking vhai they could gel, and he fancied MiMillar had simply re-echoed what lie had said. Mr Millar had told them what they were likely to get if they approached the Govcvmpont. If they got that, it would give immediate relief to the community with legard to the claims floated.

Mi- Vv r ells : Why not ask the Government to extend the povei-o of warden = right through to deal with each individual case of a company, registered or not'' — (Cries of "No.") Why not lot them deal with every individual claim on its merits? Why hhould it bo referred io the (Jovernor-iu-Couucil al all? I

think the wardens should have power to deal with each claim on its merit?. I believe they had it at one time. The Chairman : They have it now. Mr Wells : To examine into every case and to give extended protection v. here it is necessary? The Chairman : The wardens have power now, hut only for six months. Mr Wells: Extend it. Mr Millar raid the Government were in no way trying to hamper this 'industry. As showing that they were not, he might mention that there were six companies who took \vp clajras on the Molyneux and. it was found absolutely impossible for them to get six .dredges to work at once. They accordingly joined together and made an application to the Government to give protection until one dredge was got to work, and the Government agreed to these companies amalgamating and granted protection so as to allow them to prospect their claims. Mr Brent said if such a thing had been acknowledged by law and the general principle had been established, instead of the six companies referred to being favoured, the dredging- industry would have been in a far better position tha-n it was in af the present clay. Mr J. J. Ramsay paid the cause of the present trouble was that people could not hold on to claims unless they were floated, and if they did not include claims that were granted and not floated, they would have a rush on the West Coast, if 'the We it Coast dredges happened to be all right, because people who held what they considered to be good things on the West Coast would rush them on the market. Mr Payne thought something should be done on the lines suggested by Mr Millar. The motions carried by the meeting should not make any definite suggestions, but should appoint a committee with power to go into the matter and decide what really should be clonp in the interests of dredging. They should then call another meeting, and put the resolutions of the committee before that meeting. All they should do at present was to ; affirm the desirability pi some immediate al- j teration in the Mining ' Act. | Mr Lee quoted the case where one company holding several claims wanted to get a dredge to test one, and whilst doing so to have the rest protected ; and another ca^e t where several companies wished to_ amalga- j mate to purchase a dredge to test their claims. i and added that there was a. difference of opinion amonsgal wardens as to whether this could be done. , Mr White thought that in the first instance they should pass the resolution read by the chairman. It set out clearly what the nature of affairs was to-day. If they tried to limit it or particularise its application they would bo making a mistake. There was no more reason why the companies already floated, many of which had not put a dredge on the ground, and never would, should be protected and other companies not yet floated holding ground better than many of 'those that were floated should not be protected. As pointed out. it was impossible to get dredges in New Zealand. Companies had sent orders to Victoria and New South Wales, and many others wore preparing to get their work done in America, and in Groat Britain, and even in Germany. Hundreds of thousands of pounds would go out of the country in this way, and that money would go out of the pockets of the tradesmen and workmen of this com- j munity. That was a very serious matter for all of us. If the matter were put before j the Government properly, doubtless a remedy j would be effected. Perhaps it would be well ! to send some one to Wellington who was well i versed in dredging matters to see the Ministers, j and also'to lobby, because there was no doubt j that would have to be done to get it through. The warden should Dave extended powers. Warden Burgess would not extend at all. j He refused an application for an extension from him (the speaker) at the last sitting of the Warden's Court in. Roxburgh, although he admitted that the application was thoroughly bona fide, and referred him to the Minister. The latter properly granted an extension of time, but the speaker pointed out to him that the directors should not be put into that position. They had very important duties to discharge. The extension of time should come from the warden, who had the evidence before him. If the resolution, which had been carefully framed by some one evidently fully conversant with dredging affairs, were passed, he had no doubt ho would" agree at once to introduce j a short amending act. If Messrs Millar, Arnold, and Barclay took the matter I in hand it would be good as done. — (Laugh- J ter.) They were not asking for a favour, but for an absolute right.- — (Hear, hear.) An in I duslry'such as that which had grown, to be j an enormous one \j as something they had a ■ right to be proud of, and if what they asked j nas properly placed before the Minister of i Mines there was no doubt it would be at- ! tended to. Mr Lee suggested an addition to the resolution in the. direction that the committee of } the association should be empowered to make any amendment they thought necessar5 r . j Mr Sligo thought the proper course was to t make the resolution general. They stated i generally what they conceived to be desirable, ! and asked the Legislature to put the thing into shape on the Statute Books of the conn- i try. There were some who advocated at the

1 meeting a course in favour of shepherding', but they would not get the Legislature to pass anything which, was likely to assist j " shepherding." -„ I The Chairman :'T* don't """think any ona* wants it. ' * ~ ! Mr Sligo said there had been some argumenfi , \ very much in that direction. It might bet desirable to appoint a committee to draft v clause which the Government might be requested to embody in the law, but he thoughfi the general resolution would cover all v tho i ground that the meeting need deal with. , They could then wait and see what the Government proposed to do. The Chairman then intimated that he wouldI put the resolutions separately, and the first j v.as duly parsed without alteration. In the , second the words " when a few dredges ard ! yielding- returns " were deleted. 'The third resolution was slightly altered and agreed to a^ follows:— "That a large number of other claims have" been taken up I and large sums paid for survey fees, prospect- | ing, and otherwise, and that unless somd"sueli amendment "of the law as above indicated is made the holders of such claims will either have to attempt to float companies to take them- up or run the risk of abandonment and forfeiture, and thus the evils of the existing state of matters will be further intensified." The fourth clause was agreed to as follows: — " That the existing provisions for the protection of individual claims for a few months , are quite unsuited to such a state of things | as exists in Otago and on ihe West Coast; and, in order to meet so exceptional a case, * it is necessary to omencl the act so as to give power to the warden to extend the protection period. " The fifth resolution was passed as read, and a clause was added as- follows: — "That it be i referred to a committee to formulate the proposed amendments and take steps to bring them before ths Government in the best possible form, the committee to consist of the executive of the association." I There were several cries, " Who, are they? " and Mr Wheeler read one Ihe following list : — Messrs J.- MacGregor, J. -Moloney, T. Brown, T. K. Harty, J. C. Thomson, W. T. Talboys, D. Reid, E. A. Cogan, C. V. Lei j on, D. J. - Bcws, W. Milne, and J. White. The meeting- terminated with a vote of thanks to the chair. viEETING AT THE STOCK EXCHANGE. ~ THE RESOLUTIONS ENDORSED. A meeting of these interested in the protection of mining claim, was held at the Dunedin Stock Exchange on the same afternoon. There were about £0 gentlemen pre- | sent, and Mr A. Herdman (the chairman of the i Exchange) presided. Mr Herdman said the Dunedin Stock Exchange had called the meeting with a view of doing something for the protection'of mining claims. The matter had been fully discussed at a meeting called by the Gold Dredging Improvement Association, which had jusfc been held, and he dared say that all present had attended, and had heard the re&olutions passed. The Dunedin Stock Exchange took ihe initiative in this -matter, '■-and it appeared to have touched up the association, which had fixed its meeting for an hour and a-quarter before the present one,' so that it had completely taken the wind out of their sail?. At the same time if the object in. view had been accomplished at the association's meeting, the Stock Exchange, and everyone connected with it, would be very well pleased. He then read the "resolutions passed at the 'association's meeting, and said they were all very anxious to bring the matter before the Government by calling a public meeting ; but, as he had said, the association had got in before them. He wished it understood that they did not look with rivalry upon the association, being well satisfied if the object they had in view was attained. He moved the adoption of the resolutions passed at the meeting called by the association." Mr J. J. Ramsay seconded their adoption, and said there "was one remark the chairman had made unintentionally, and that was that the association had taken steps to call the meeting after the Stock Exchange had moved in the matter. .The meeting- called by the association was really the outcome of a letterpublished by the chairman of the association in the Otago Daily Times. He did not think the association jumped the Stock Exchange's claim, nor that the Stock Exchange jumped the association's claim. The Chairman said he had no idea that any action had been taken by the association, and was very pleased to hear what Mr Ramsay had said. There was no feeling in. the matter at all. • _ . Mr Lawson thought they, should simply endorse the action, of the association's meeting. / Mr North asked if he understood that these resolutions were the unanimous opinion ol the Exchange. The Chairman: We are not the Exchang« now. It is a public meeting. Mr North : I suppose you know that there? > were opponents to some of those resolutions. j Mr Lawson : I was one of the opponents, | but what we must do now is to support the | resolutions up to the hilt. ! Mi- Trythall : I think we should emphasise

them, and give support to what has been clone at the association's meeting. The Chairman agreed with this view, and the adoption of the resolution was carried unanimously. Air Brent said lie wanted to make a proposition before the meeting closed. What they had done already was of a legal aspect to. get ,the law amended. They all knew thit everyone, interested in , dradging had been suffering from the payment of calls, and cut of. that there arose another aspect they had to. regard, and that was the aspect of the 'directors. He did not think the action they 'had taken would relieve the-markct or.c little j •bit, and he would move that it he a recommendation to directors not to call up their capital before it was really required. There were cases where the dredges would not be j ready for a couple of months yet, and ptill nil the capital, to the extent of 20s, had been I . called up. Of cour.se, the directors hod to j safeguard - themselves agpinst loss, and it j would be -right .to sue, if necessary, foi the j first of the calls, but he thought it was a , grave mistake to call up capital and lock it *up before it was required. The. directors put it out at 2 or 3 per cent, interest, but he was sure that it would be more to the interest of the shareholders if they were not called ! upon before it was necessary . Mr C. S. Reeves did not think it was for that meeting to pass such a reso'utio.i. He took it that the object was to strengthen the resolutions passed at the association's meeting for the purpose of representing to the Government the absolute necessity for en extended protection of dredging claims. With regard to the question of calling up capital, ihe thought it had better be left over in the meantime. Let directors "of companies meet and consider the matter. There was thi's fact, that the engineering works in- Dunedin. were simply stringing on several companies. They were doing something for 'one dredge and something- ■ for another, and, - where a few dredges could get to work to test the claims, they were continuing to keep various other ■pofltipanie* quiet by , doing -a? little of their work. Whilst lie aareed with what Mr Brent ■had. said, he thought it was a question that should be loft, to the ditectors. Mr _ North mentioned that Mr Reeves had practically said what he was going to ,«ay The Chairman thought the matter referred to by Mr Brent was outside the object of the meeting. - j Mr Brent raid he was quite willing to withdraw his motion, but he thought it wcmld be • a sreat object gained if they could keep the | calls in abeyance for o time. ! Mr Ramsay thought a great deal of the cliffi- j culty would be got over if Government assented to the resolutions they had affirmed. Directors had to call uvj the capital in order io_fret the drcdaes ready, to comply with the existing Irw. Ho moved a vote of tharks to the chairman, which was carried, and the meeting terminated. THE SUGGESTED AMENDMENT OF THE MINING- ACT. , Mr J. A. Millar, M.H.R., was waited on at the i a'lway station on Thursday morning, ori-jr to his departure for Wellington, by a deputation from the executive of the Gold Dredging Improvement .Association, for the pun.f =c ' of handing to him the resolutions paseed at, Wednesday afternoon*! meetintr. Among those' present were — Messrs J. White, J. C. Thomson. R. Lee, E. A. Coga.i, T. E. Harlv, W. T. Talboys, J. MacGregor, and R. T. Wheeler, jvn. Mr White, in handing Mr Millar a letter j containing the resolutions and a report of j the meeting, fcaid that as Mr Millar had been present and heard the opinions of the meeting he would know what iva= wanted. They would be obliged if he would do his best in the interests of the dredging industry. MiMillar knew as well as they did that it was difficult — in fact, impossible — to nomply with the law as -t now stood. Tfc iwis with the clause which made it compulsory to have the dredge on in six months that they were rno&l , coiicemed. They understood that Mr Millar's , idea was jLq suspend the operation of this | clause iov 12 months by the introduction

of a one-clause act, and that the Government should in the meantime look into the whole question and introduce a measure next session. If this were done it would prevent lvuca possible litigation, and also the constant calls which ths directors had no option but to make at present.

Mr Millar said that immediately on his return to Wellington he would call a meeting of oil the goldfields members, as well as the (Jr.riclchurch representatives and bis own two Dunedin colleagues, when lie would lay the whole jjosition before them. There could bs no doubt xh.it the present legislation was not suited to the phenomenal development which had taken place in the dredging industry. The provisions of the law might have been right- enough when they were framed, but they were impopsibfe under the recent phenomenal developments in the industry all over the South Island. His idea was that a one-clause act should be introduced suspending the occupation and labour conditions for 12 months. If that were done the Government would be enabled to find out what was required to put the industry on a proper footing. It would not, in his opinion, be v.ise to attempt anything in the nature of a comprehensive act this session. After the meeting of membeis a deputation to Ministers would be arranged, and he would adviss Mr Wheeler as to the result, probabljr on Monday or Tuesday. Mr J. MacGregor also handed Mr Millar a letter which he had drawn up dealing with the question. | Mr White thanked Mr Millar for the interest he had taken in this matter. The following copyof a letter delivered to Mr J. A. Millar, M.H.K., at the railway =ia- , tion yesterday by the Executive Committee of ' the Gold Dredging Improvement A^ccciation , is published for general information :^ — ■ j Dunedin, September 5, 1900. | J. A. Millar, .E&q,, M.H.R.,.Dunediu. ! Dear Sir, — As chairman of the meeting held this afternoon, which you were good enough to ottend — pioJjably the largest gathering ' company directo.s and other "business inen'uvpi < seem m Dur.ediu — I h:md you herewith a copy ' of ths resolutions adopted. " j With regard to the question as to the best way , of meeting the necessities of the case, I am j directed by the Executive Committee to state ' that, in theii opinion, the diffiovhy arises , mainly fiom tho mistake made m our mining ' legislation m applying io leases of special j clrfims: piovi^ior.s t-s to abandonment which in j their origin applied only to claims the title to i which is based upon more possession and regis- j tration, and which are in their very natuie m- , applicable to leases of special claims granted | by deed for a long teim of (42) year 6 .. You will j find on referring to section 151 of the act that in the case of a special claim just as in the case of any ordinary claim of, say, one acre, abrn- : cloijment is deemed to have taken place if the claim has been unoccupied for one month.

Now, Fuch a provision is quite intelligible, and perhaps necessary, m the case of claims the title to which rests upon possession, but it is quite inappiopriato in the case of special claim? granted by deed, for the ■working of which expensive machinery is required. It is £ul-unitted tint leases of special claims should be a& nearly as possible assimilated to leases of other Crown lands upon which large outlay of capital is contemplated, and that forfeiture by tleciee of the "Waiden's Court should be the remedy for breach of the conditions of the lease. The committee is, therefoie, of opinion that, the simplest way to' meet the present difficulty ■would be to pass a short act declaring that the picvisions as to abandonment shall not apply to special clsims. Tn case of the Government not being prepared to deal with the subject m this thoroagh way, it is suggested that they might go the length of an enactment givmf. the Governor-in-Coimcil power to suspend the opeiation of the abandonment clauses in ar.y particular district for a certain period. The committee is coii\-inced that this would be a much better coiuss than that discussed at the meeting; — naively, to give tho waidens pover to grant protection for, a oy, two yeais. — and that it is ivore likely to commend itself to the Govern32ic.it ii the subject iccencs that attention -which its importance demands.

It io hoped that you and your fellow inembeis will &uccoecl iv impressing upon Ihe Go.vem-"

meni and the Parliament the necessity of something being done this session, and the result will bs awaited with anxiety by the people of Otago ar.d the West Coast in particular, and by many in other paits of the colony. — I am, etc., J. MacG-hegob.