KAWARAU CLAIMS.

Waikato Times, Volume 108, Issue 18164, 31 October 1930, Page 10

KAWARAU CLAIMS.

MERGING OF INTERESTS. STATEMENT OF THE POSITION. PROFESSOR HORNELL CALLED IN. Professor ixornell and his associate, Mr P. W. Werner, and Mr Vickerman, with Mr Robinson, the solicitor for the proposed Kawarau Amalgamation Trustees, arrived in Cromwell last week- At the request of local claimholders, Mr Robinson explained the position as follows: An agreement had been arrived at with certain claimholdeTs and the parent company to promote an amalgamation of all interests. Broadly, the terms were that each claimholder who came in was to sell to a new company, to be called Amalgamated Kawarau Gold Mining Company, Ltd., the price for each claim being shares in the new company of a nominal value of £IOOO paid up to £B7O, this being the amount of the calls made by the parent company on claimholders. Provision was being made for claimholders who were in arrear to be given a chance to come in, and even for companies already liquidated to be revived so as to participate. At the same time (lie parent company was to sell ajl its assets to the new company, receiving in exchange fully paid shares to the extent of £125 in the new company for every £IOOO of shares issued to claimholders. The parent company’s assets included a sum of £IO,OOO that was lodged with the Public Trustee. Of this a sum of £6OOO might, be freed at the discretion of the Minister of Public Works lo pay the debts of the parent company and the expenses of

carrying out the amalgamation. The balance of £4OOO was to be held for three months to answer any possible claim within that time and then at the Minister’s discretion to be handed to the new company. The Government had been asked to pass a Bill that would assist the amalgamation to be satisfactorily carried out. This Bill had been passed, and whilst it did not effect the amalgamation it enabled the matter to be proceeded with. No claimholder was bound to come in. The thanks of all concerned were due to the Government for making it a Government measure, and to the Under-secretaries of Mines and Public Works and the Crown Law Office and the law draftsmen who had all worked overtime to get the matter in order so that the measure could. be passed into law before the session closed. Mr W. A. Bodkin, M.P., had given every assistance- It was important that nobody should again be carried away.

Effect of Amalgamation. The amalgamation would merely put claimholders in the position of owning a share in the whole asset, and with enough money assuming the £4OOO was available, to obtain a report as to whether the water could be so handled as to enable the river bed to be mined. One of Mr Robinson's reasons for coming south was to endeavour to arrange an outstanding claim so as to free the £4OOO. If that report proved favourable, then it would be necessary to raise a large amount of further capital so that the shares of the original owners would be comparatively- small- There was thus no ground whatever for booming .any shares. All that could be said was that, if a favourable report was obtained, there was a chance of shareholders receiving their money back, if the report proved unfavourable, then the whole tiling would be decently buried. While the passage of the Bill was being awaited, Professor Hornell had come to New- Zealand, and it had been decided to seek his advice

and obtain a report on the position from him. Professor Hornell had agreed to make his investigation upon the payment of his expenses with a view to reporting at a later date, when the amalgamation was through. Mr Andrews himself advanced the expenses.

It was essential, stated Mr Robinson, to make it absolutely clear that Professor Hornell had nothing whatever to do with the question of gold. His duty was confined to the hydraulic questions of ways and means of so dealing with the water as to enable the river bottom to be mined. Professor Hornell said that Mr Robinson had stated his position with absolute correctness. He was notva gold digger. He would undertake, with the help of Mr Vickerman, who was familiar with the ground, to investigate fully and carefully as to the possibility of dealing satisfactorily with the water. What his report would be he, -of course, could not indicate. He could, and did, however, say that he would not have come down at all if he had thought the position hopeless. ,

All Dispute Dead and Burled. The chairman' (Mr James Ritchie) said that but for the efforts of the claimholders who had interested themselves in the amalgamation the whole issue would have failed. Now they all had a chance. So far as the gold was concerned they did not want Professor Hornell to advise them'on. that. They all knew it was there. They recognised that Professpr Horne H’s report as to the water was authoritative, and it would be unreservedly accepted. If it proved unfavourable the matter would be finished. But for the action taken by the Wellington companies everything was lost, and thanks were due 16 them and also to. Mr Andrews. * \. Votes of thanks to Messrs Andrews and Robinson were carried by acclamation. Answering a suggestion that he had faith ip the Kawarau scheme, Mr 11.

G., Robinson, of Masterxon, said that there- were three Important human attributes—Faith, Hope and Charity. At the moment nobody was entitled to have Faith. They’were justified, however, in having a measure of hope, and he trusted they all had charity. Once the parent company directors had agreed to the terms of the amalgamation they had come along unreservedly, and had since loyally and fully cooperated. All the back disputes were dead and buried.—Otago Daily Times.