MINING CONTRACT QUESTION.

Otago Witness, Issue 2571, 24 June 1903, Page 25

MINING CONTRACT QUESTION.

At the U.M Court on Monday Mr E H. Carew, S M., delivered judgment in the case tof Hunter and Co. v. the Nokomsi Hydraulic Sluicing Company, argument m which was recently heard. Mr Payne appeared for the plaintiffs and Mr J. MacGregor for the defendants. His Worship said • " Tho dispute in this case is as to the proper interpretation of an agreement. THo defendant company required a d»m to be bmlt across the Nokomai Hiver, and entered into an agreement with the plaintiffs, the first paragraph of which reads: ' This ■contract includes the obtaining of all the necessary stone, sand, etc., and doing the Jabour of building and grouting tho pitching woik in tho Nokomai dam, continuing on from, where left off last season up to a height of about 20ft above river level, but the company may stop before this height is reached if six ihu.idred pounds is expended ' Provision follows, in that the company \\ ill provide cement and blasting mat*r.a'. and that 'payments will be mado at the rate of 75 per cent, on the work satisfactorily completed on the certificate of the engineer every month. The 25 per cent, deducted will be forfeited and become the pro.perty of the company should thf contractor not carry on the work in ii satisfactory manner until the comnany has expended £600 (including labour and material).' It is clear that the '£000 hero mentioned refers to the same £COO as in the fn-*l clause of the contract, and therefore the fir't clause mu3t be read as though the woi.ld ' labour and material' followed on alisr the word 'expended.' On February 17 the company travc notice to plaintiffs that the wo r k would be stopped on the 26th, as the £GOO mentioned in the agreement tvould be

expended by that time. It wa« known to both parties that the company would require, m addition to the cost of cement and blasting material, to expend a considerable Eum in filling in between the walls of the dam bank as the work advanced, and without which tho building of the walta could not go on, and the question is now as to how the £600 was to bo expended to give the defendant company a right to stop the work. There are no words in the agreement that expressly confine the expenditure of £600 to be upon the contract. The only limitation is that it is to be upon labour and material. I think, taking the surroundings into consideration, that the meaning is that the £600 was to extend to all expenditure for labour and ma-tenal upon the dam, and is not confined to the cost of plaintiffs' work, but extends to the whole of the company's outlay for labour and material, and includes the cost of constructing the race for sluicing material for filhng-in purposes. Judgment for defendants, with costs of court (6s), witnesses' expenses (455). and professional costs (£8 8s)." It is probable the plaintiffs will carry the case to the Supreme Court.

WAIMUMU CENTRAL DREDGING COMPANY.

The following circular has been issued (says the Mataura Ensign) to shareholders in the Waimumu Central Dredging Company — " Your directors have found it necessary to call tho shareholders together to go into the position of the company and decide on some course. The directors are faced with this position : The present liabilities of the company are about. £400. This is not a large sum, and the directors were prepaied personally to pay off the creditors and stand by until sufficient gold was in hand to repay "themselves ; but the obstacle to this is that the dredge -wa-nts sundry repairs running into, say, £200, and until these repairs are done it ie- not- safe to-wock the dredge any longer. These is- -a, ftwr amount of ground yet to work, and some ground ahead of us could be bought at- a -very reasonable figure. "We think the preeen-t claim -and the piece of new ground should average looz to 20oz, and this would prolong tb« hi* of the claim for another 12 months; but -to de this shareholders must find more money to clear off the present liabilities and cost of repairing the dredge. "We are disappointed ia the life, of the claim. "When we started we thought a long life was assured, but soon found, in consequence of meeting v hard pan in the wash, that the present dTedgo was not strong enough to force this hard pan, so the dredge has always had to content itself with working the wash on top of the hard pan. Under this pan is a deep wash carrying gold, but it is useless to uq. We hope many of the shareholders will attend the meeting, when tho question can be more fully discussed."

MIXING DISTRICTS LAND OCCUPATION

TO THE EDITOB.

Sic, — It seems to me and a great many moro that settleis in this djstnet under the Mining Districts Land Occupation Act are very badly treated, for several reasons. In tho first place, they took up J.iud under tho Warden, open land (2s pe,r aGre), and bush land (Is per acre), without valuation. At the expiry of 10 jears they had to c,<?me under the 1894 act, which gave tho Land Board the charge of the land, and also gave them powei to sell as low as 6d per acre. .A good many came under the act, thinking they would get then rents reduced before the exjgiry. of the 10 years. They -were, however, greatly disappointed, ac the Southland Land Board increased tho rent from, in same cases 2s to 6s for open land, and for bush land from Is to 3s Cd, an<3 left it still open to the miner, and wpfitly to. At the same time, land of fqiial quality, if not superior, is lot in perpetuity at 9d, on perpetual lea&« with right of purchase at 7d>, 15s per acre, capital value. Some years ago I got up a petition ' praying the Land Board to reconsider their valuations, but they said deliberately that the rents were cheap enough, and told some that they might bo thankful it was not lls they had put on. A copy of this petition was sent to the Hcu T. Y. Duncnn, ivho said the whole power lay with the Land Board. Now, all this time I v,ni a disinterested party The Minister was good enough to inquire of me my vieivß, ivhioh, put shortly, are as follows — ' Lengthen the lease of bush lands from 21 years to 99 years. Uca.'on A man could then at the end of his life leave his family bomething. Propel ly sun-eyed by longitud-6 and latitude, open to tho miner by paying surface valuP.tion, a rent in accordance ■with value— say, 20 per cent, less than lease vi perpetuity. By all means treat them tlfe same as other Crown tenants in bush fonde in the district. I may add there are thousands ' of acr«s alongside the railway from Eivcrton that would all be taken up if surveyed, Toaded, and let at their value — viz., 3d per acre for the worst and 9d for the rest— that is, from tlie crrnmencement of the Crown land near Riverton to within a mile of Orepuki. All who come urder the 1634 act have to pay survey fees, so much per acre — for 100 acrea, £15 , but this £15 wps credited as rent in advance. About 12 of us, through expiration of our 10 years, are just going under the Land BoarS now. I got notice that my application had been granted subject to survey fees (£ls) being paid within 30 days, which means that the fees paid would be credited as rent in advance. I wrote the Commissioner about it, and he tells me it seems to ha.vo been the custom to credit survey fees as rent in advance for some time, but it is contiary to the art, and adds — "This is a direct instruction from "Wellington." I feel sure if all occupiers of Crown Lands in this district had only to deal with Mr John Hay, Chief Commissioner, they would get justice j clone them, but then he is only one. The Test never had to make a living on a poldfield I by fannine or grazing, Vihere many a^ood borsn

or cow, as the case may be, meets its doom m a water-race. I have also heard that there will most likely be an account sent to those wlio have been credited for rent in advance for back rent. Now, though a son of leader in what I think right, I only -want fair play, and think I am in the right in trying to get the goldfieldß settled with many a happy family. The bush clearing also helps the miner, as tie can then see the best way to work. I may add that Wallace's present M.H.R. is a thorough friend of us fellows. I have been m Southland since 1859, and' have never seen your fair city, and never will at 3s 6d for wild bushj country. I have a hope that we ara on the way to get justice done us, but fee lthat we must keep the bail rolling. For the best bush, land 9d, and for second quahtv 6d is sufficient rent for a lease of 21 years. At 90 years I believe it would be worth Is for first an<i 9d for second.— l am, etc., W. B. Orepuki, June 14.