WAIRIO COAL LEASES.

Western Star, 16 April 1920, Page 3

WAIRIO COAL LEASES.

ON EDUCATION ENDOWMENT.

A meeting of the Southland High Schools Board of Governors was held during this week to consider applications for leases on their endowment land at Wairio. Presen t-»-M-essrs B. A. Anderson (Chairman), Hon. A. F, Hawke, J. O. Thomson, J. Orosby.Sjgnith, and P. de la Perelle. There were six applications to be considered. The Chairman said they had imet that day to hear the expert opinion of Mr Gillanders, whom the Board had engaged to inspect and report. Previously the Board had granted leases to small men taking up fifty acres. The system 1 was not a good one for the board, because it eventually meant that these men, after opening up, sold out to 1 others, and thus the leases found their way into the hands of larger companies. It bad been proved that it was not a good thing for the Board to lease to small men because it meant- wastage of coal. They had not in the past, and would not in the future, be able to; find the money required to mill© the coal on a proper scale. The only way to take out coal profitably was to take it out ini large quantities with proper, machinery. They had a number ‘of applications to consider, and it was for the Board to say whether they would continue the policy which had been adopted some years ago of refusing to grant applications for small areas. They had ascertained -the last time they had inspected the locality that there were applications then pending from men who had already made arrangements that if they were successful they would turn them over to a company. Hence, the Board had refused to grant them. In one case where a lease of fifty acres had been granted, the lessees immediately sold out. It would be better for the Board to deal with one or two- of the companies who could afford to spend a good deal o'f money in opening up coal and working it in a proper manner than to adopt a system which meant waste and consequent loss. Mr Hawke: We must avoid monopoly. The Chairman: All increases in the price of coal have to be sanctioned by the Board of Trade. Mr Crosby-Smith; In the meantime; but will that continue ? The Chairman; I think so. In reply to Mr Perelle, the Chairman said the Board could not regulate the price. Mr Gillanders said even _ if they could, it wouldi be almost impossible, as circumstances varied so quickly now-a-days. The Chairman said there was no company giving a fixed quotation for a fixed quantity of coal. Mr Thomson said it was imperative that they should prevent waste on the one hand, and monopoly on the other. Furthermore, they should do all in their power to* prevent speculation in their leases. They wanted bona fide mining, and where that was not carried on, leases should be cancelled. The Chairman said they were dealing with the property as trustees for school purposes. They had to see that the coal was mined under sncli conditions as would give the best results. He asked Mr Gillanders for an expression of opinion. Mr Gillanders said it was better for the working of coal in section 37 if one company had it. As regards monopoly, there were, so many mimes round about the district, probab y twelve or thirteen, that such a thing was not. likely to happen. He had found in this and other districts where there were numbers of email mines that the competition for miners had been so keen that they were really killing one another. Mr Crosby-Smith ; If there were fewer leases would it he more economical to work the coal? Mr Gillanders: Yes; but the ultimate result of the mining had to be taken. *Mr ’ Smith: What space hits to be left between two mines.'' . Mr Gillanders; One company leases a chain, and if two companies, two di. ’it was (juite absm-tl to leave a two-chain barrier m small <= districts like this. The coal was nU near the surface. There was not much deep coal. There was m> evidence olf deeper coal on the Board s property. Of course, the thing had never been really tested. He was referring to the locality commanded by the Wairio railway. He was of opinion that these mines had not a very long life. The Ohai railway would cut off the Linton and Wairaki district. If the Wairio railway had not sufficient coal to pay running expenses it would have to he stopped. The Chairman said what would eventually happen would be that this railway would be lifted as soon as the coal had run out. Mr Gillanders said the. time was ripe for the coal to be worked. Mr Thomson suggested that Mr Gillanders express an opinion on each of the applications before the Board. This having been done, it" was decided as follows: Mr H. E...Tonkins applied for a prospecting license over ■ 198 acres leased from the Board—To supply plan showing exactly what was required. John Duncan applied .for a coal lease.—Referred to Messrs Smith and Co., asking them whether they had any objection to the granting of the application. Messrs Reid and Spowart applied for a prospecting lease. —A prospecting license was recommended. —Messrs .Smith aud Co.’s views to he obtained on the ground that is left, William Stevenson aplied for a coal lease over western part of section 9, block 27, Wairaki district; area. 200 acres.—J. 0. Clapp, holder of year to; year grazing license, offered no objection.—Board prepared! to grant lease subject to its usual conditions provided a plan is submitted showing exact urea of section 9, its proximity to the Ohai railway, and payment of ]/- per ton royalty. The application of Gavin Brighton regarding his grazing lease of part of section 37, Wairio, was referred to Mr Hawke for report, fit.