The Gold Dredging Industry

Southland Times, Issue 15058, 30 September 1901, Page 2

The Gold Dredging Industry

— - - -«► - QUESTION OF RIPARIAN RIGHTS. IMPORTANT CONFERENCE WITH THE MINISTER. (By Telegraph.) "FROM OUB SPECIAL REPORTER.) Wellington, Sept. 29. A deputation in regard to the difficulties that have arisen in connection with the gold dredging industry on the Charlton and Waimumu streams was introduced to tho Minister for Mines on Saturday by Mr McNab, M.H.R., and made out a strong caso for immediate State intervention. Mr Green, who was tho first speaker, explained the position in regard to Charlton Creek. He said that recently the companies operating there had writs served upon them claiming f 100 damages for interference with the riparian rights of settlers. If the cases were taken into the Supreme Court the dredge owners would have really no defence in regard to the pollution of the stream, but they had inx-ested a considerable sum of mouey in the dredging industry there, and the position was such as should induce tlie Government to take some action. Six companies had been formed in connection with Charlton Creek, and three of them were working, while one would bu ready to start in about a month. Tlie Charlton Crook Co itself had a capital of £6000 and the value of the gold already won was £7440. There had been paid, in wages, £2124; for coal, £812, and for re- ' pairs, etc., £750. The Central Charlton Co's capital was £7000; the gold won was worth £1030; wages paid, £861; coal, £347, and cost of repairs, £717. In the Lady Charlton claim the capital (paid up) was £10,250 ; tho gold won (in six months), £700; wages account, £500; coal account £200, and repairs, £200. The capital of the other companies, which had not yet started, was— Charlton Valley £6000 ; Royal Charlton, £7000 ; aud Mac Charlton, £7000, giving aggregate totals as follows:— capital £42,2_0 ; gold won £8170; wages paid, £3485 ; coal purchased £1359 ; repairs executed, £1667, and dividends paid, £2120 It would be seen from these figures that the district was deriving considerable benefit from the operations of these companies and it would be a serious calamity to Gore and Mataura if they had to close down as the claims for compensation were so excessive. The only alternative the owners had waa to come to the Government to get them to pass legislation that would get over the present difficulty. He went on to explain that the Central Charlton Co. had received a letter from a firm of solicitors on behalf of farmers, stipulating the cutting of a channel to carry off flood water, at an estimated cost of £300 and provision for a fresh supply of water to each settler, at a total estimated cost of £1100 ; equal, in all, to a claim of £1400. It would thus be seen that the settlers had modified their claims since the Rivers Commission visited the district, for their claims had amounted to about £6000. The extent of these claims had no doubt frightened the Government, but with modified claims of £1400 no doubt tho Government would see it. way to take some action. The Government had declared the Waikaka River a sludge channel and had granted the settlers there compensation. In the present case the creek no doubt was being discoloured by the dredging, but the farmers were in reality suffering no loss, especially as there was any amount of clean water for stock running through their lands. As a matter of fact some years ago a river board had been formed with a view to getting rid of this water which they aow

claimed had become of inestimable value I < because of the gold dredging industry. The 1 | dredge owners were not in any way sntago- * uistic to the farmers, but they could not | effect a settlement with them without legislation, and that was why they came to the Government. They were, however, quite prepared to pay a fair share of the expense of settling the matter on equitable grounds, They only wanted justice such as had been granted in other cases, MrE. Rowlerexplainedthoposition in regard to the Waimumu field. He said ho would not like to see the farmers suffei ing any damages as the result bf the industry, in consequence of which, he admitted, they would be deprived of clean water for their stock, while also there might be some danger of the silting up of the stream, the ultimate result of i which , they could not accurately estimate. When, however, ho quoted the figures in connection with the industry he thought the Minister would see the necessity for a proclamation of the stream under the J -ct. The farmers hero had l*ased their claims in the same manner as the farmers in the Waikaka district. In the latter case the claims amounted to £70,000, but ultimately they were reduced by the Commission to between £4000 and £.">0)0. These sums had been paid to the Waikaka farmers and accepted without demur. As he had stated, the Waimumu farmers had based their claims in a similar way. For instance, one man claimed £6500, yet in an action in tlie Supreme Court the other day it was shown that these figures represented the total value of his^farm of 300 acres, therefore a claim of these dimensions waa ont of the question altogether. If claims such as these were made it would block a settlement of the difficulty and justice would not be done to the field. It was hardly fair to> say that the dredge owners themselves must mako an agreement with the farmers because it would be an impossibility to get 12 farmers to make up their minds to an equitable private agreement. Tho only remedy would be a pro- I clamation of tho stream, as provided by the Mining Act. He submitted the following figures to prove that this distiict was of equal, if not greater, importance than the Waikaka district : — Company Oapi. Oold Wages Coal Re- Dive tal won pairs Waimumu triOO 9:553 2984 1430 2-82 I*>2s Waimumu r'.ot'l 'OOU 6900 180. 8-2 697 17. "H1 Waimumu R-t'd 6500 4231 2UOO 1100 .iO i) Wai murau Queen 7000 _718 1316 Hi7i 47_ 35" Spec Gully 6000 684 360 200 15u nil In addition to these there were the Victoria o. (capital £/00U) just commenced; the Imperial (£5000); the Royal (£5500), working one month ; McLean's Freehold (£7500) ; the Golden (£3000) not commenced yet, and the Treasure (£6000) a private company which must have won about £800 worth of gold in about four month.*'. These companies represented a capital of £67,000 ; gold won, £21,800 ; wages paid, £8604 ; coal, £4884 ; repairs, £4407 ; aud dividends, £4025. It was well-known that the aim of the Government was to promote commerce and to assist labour, and these figures proved that ii the companies named were prevented from carrying on their labours it would mean a serious calamity to th___dustry and commerce of the district. The rising town of Mataura was specially affected by these operations, as was also the town of Gore. At present the Waimumu was threatened in several ways. 'A case against the Waimumu Queen Co. was heard the other day and tho decision reserved. Then the Treasure Co. had been threatened with an action and had closed down because there was no use their contesting tho matter at the same time. Several companies were holding back moneys that might otherwise very well be paid out to the shareholders, because tbey were not in a position to pay dividends while these difficulties existed. The farmers and the business people themselves recognised that something ehould be done and only the previous night a representative meeting had been held at Mataura to discuss the position. Mr Bowler read a telegram stating that there were 150 people present at this meeting and that they unanimously resolved that the Government should be asked to take steps in the matter. He also read the following telegram from the Mayor ■ — " Large meeting l-ist night. Resolution carried unanimously requesting Ministry to send - a Commission to enquire into the whole question at once, both as to the companies and a proposed new flood channel." Mr A. A. McGibbon, with the aid of a map, then explained to the Minister the position of the various properties and of the proposed flood channel, lio also explained that though oue settler had sent in a claim for £2500 he had said he really did not want anything, but simply wanted an assurance that the stream should not be allowed to silt up. In another case a man who had bought a farm for £300 and put a few improvements on it claimed £600. This was because the settlers thought there was no use putting in claims unless they put them in pretty lugl). When one claimed th- ot h_r __i_ '-. " 1 may ac well have compensation __ anyone else." He added that the town of Mataura would be very glad to contribute towards the cost of cutting a channel as indicated. He also explained that the dredge owners did not wish in any way to act in antagonism to the farmers. Mr McNab said he would like to point out that although tbe Government had offered to contribute one-third of the cost of a sludge channel, provided that the parties interested contributed the remaining twothirds, there was no machinery provided by law for carrying such a proposal into effect. Up to the time that McKenzie took action against the Waimumu Queen Co the dredging was going on right enough, and if it had not been for this new man coining in upon new land there would probably have been no trouble ; but the agreement arrived at was such that a new settler whose property was affected could raise the whole question, as ho was not a party to the agreement. Taking tho Charlton for an illustration, Mr McNab pointed out that a sale of laud might tako place : some section abutting on the stream would be sold and the man who bought it could at once commence a_ action although an agreement existed between the previous owner and the dredge owners. The position now was that unless the t'ovornment did something nothing could be done. The mere fact of cutting a channel and diverting water from its natural course was an injury to riparian rights, and unless there was some legislation passed under which such a channel was provided for not even the Government could cut it. He would suggest agaiu as he had suggested before, that the Government should consider the question of introducing legislation, not so much for the put pose of declaring the stream a sludge channel, as for providing machinery by which a special sludge channel could be constructed. The evidence went to show that if tbe stream were declared a sludge channel and compensation paid, a large number of farmers would suffer continuous damage, but if the proposed channel were constructed it would avoid tho necessity for declaring the stream a sludge channel and would preserve the farmers from recurring damage. The Minister of Mine 9 said these facts should have been placed before the Rivers Commissioners when they were in the district. Mr Bowler said that the dredge owners had not to face any obstruction then. Mr McOowan admittted that that was so, and he had not anticipated that there would be any obstruction. What the deputation asked him to do was in direct contradiction to the recommendation of the Royal Commission which the Government appointed to report on this very question. The recommendation of the Commissioners was agreed to by the people of the district, as was shown by a communication which he had received from the Borough Council of Mataura. The Government were willing to carry out the recommendation, and it would Slace him in a very awkward position to ecide against the recommendation alter hearing only ore side of the case. He was quit- prepared to admit that all that had been said was perhaps correct, but before departing from the recommendation of the Royal Commission he would havo to enquire further. Mr McNab said that what was to be taken into consideration was not so much the departure from the recommendation as the necessity for legislation providing for the carrying out of any scheme. Mr McGowan said that was the position which should have been -et forth while the Commission was in the district. It appeared to him that the question oould have been settled by agreement if the dredge owners had approached it earlier, but they had allowed the matter to drift aud drift on till they got into trouble and then they came to tho Government for relief. He would bring the matter before the Cabinet as he was not prepared to act on his own responsibility where a departure from- the recommendation of the Commission was involved. Mr McNab hoped that when the Minister was laying the matter before the Cabinet he would put stress upon this point : that even had the recommendation of the Commission been acted upon in itentirety the miners would still have been subject to an injunction for breach of riparian rights. The Minister should also bring under the uoti.e of hia colleagues the

uestion whether it would not be advisable o introduce legislation providing tihat -hatever scheme was carried out com- ! lanics which came into the field afterwards ; nd derived benefit should be loaded with a iroportionate share of the costIn the course of a general discussion which ollowed the Minister asked if the dredging companies would be willing to pay ls per mnce on the gold won after making proasion for the cost of working until the exjenditure incurred by the Government in :arrying out the scheme was made good 1 \ Members of the deputations interested in I :he companies, while pointing out that they i xmld not bind the shareholders expressed j the opinion that such a payment would be s. fair contribution from each dredge, and that the companies would be quite willing to pay it. It should be provided, however, | that the payment should be levied not only upon companies now in existence but also on others which might start operations hereafter. Air MeOowan reminded the deputation that they asked for roads and bridges, just as people in the north did, and that the south got its roads without having to nay gold duties to tholocal bodies as they had, to do in the north. He would, as he had said i before, state the position to his colleagues and let them decide what ought to be done. Mr Bennett, M.H.R., who was also present, explained the fact that the deputation was desirous of being fair to both sides. He had no doubt the Minister would formulate a schemr that would get over the difficulty. Mr McGowan : Oh, yes ! But I cannot taKO them out of th© difficulty immediately. Having thanked the Minister the deputation retired