Cromwell Argus, AND NORTHERN GOLD-FIELDS GAZETTE. Cromwell: Tuesday, February 3, 1874.

Cromwell Argus, Volume V, Issue 221, 3 February 1874, Page 4

Cromwell Argus, AND NORTHERN GOLD-FIELDS GAZETTE. Cromwell: Tuesday, February 3, 1874.

The affairs of the Garrick Range Water Supply Company have now reached a stage which we venture to say no other company’s affairs have yet reached in New Zealand ; and it will be instructive in the highest degree to carefully consider them, with a view, in the first place, to see if no remedy can be devised for the unfortunate position in which that company is placed, (for its success is in a manner bound up with the, success of a most important portion of this district, —the Bannockburn district) ; and, in the second place, to set them forth as a warning to other comA review of the ‘affairs of the

company from its first start will enable us to understand its position now, •.? ’ i The bringing-in of the Coal Creek water i is a scheme which occupied the attention of the public in the whole district, but more especially in the Bannockburn portion of it, as fur back as seven or ei"ht . years ago, the chief exponent of its advantages being M> J. R. Kemp, a well-known resident in the Bannockburn. The alluvial diggings on the Garrick Range wore even then known to he rich, but it was universally felt that - they would never be properly, do volo[>ed unless a larger and more permanent supply of. water weie brought in to command its golden terraces and gullies than could be obtained from within the valley of the Bannockburn, itself. The Garrick Range, unfortunate in the sense we are now speaking of, has towards the Bannockburn a northern frontage, exposed; to tile warm..northerly winds, and the full influence of the sun from early spring to late autumn; and thus its gullies come to be mere dry creeks when those of other ranges are enjoying the benefit of the gradually melting snows. Mining work had therefore to be partially suspended for about three or four months in the summer season, in addition to the month or two’s idleness necessarily imposed on miners amongst the ranges by the severity of the winter season. Although abounding in mineral wealth to an extent not surpassed, if even equalled,

by any other district in Or,a go, the Bannockburn got to be recognised as a poor gold-field, because water, the great goldproducing power, was not to be bad for love or money. The Coal Creek scheme was discussed, but the great, expenditure, variously estimated at. from £BOOO to £15,000, apparently frightened the people. It was a work of difficulty, only three years ago,-to organise a company on the gold-fields with a real capital of from eight to fifteen thousand pounds. The quartz reefs,, however, were discovered; the Heart of Oak yields of two, three, and four ounces to the ton convinced everyone of the absolute necessity of a larger and more permanent supply being obtained, if any. good were to be done to the district. The people in the Bannockburn and through, out the whole district were unanimous on that subject. The Coal Creek scheme then, was regularly and openly discussed * it was felt to be a public scheme, and one which it only required a few public spirited men tpjitake the.direction ofrto make o rie , of the greatest successes which had ever been accomplished in Otago. Nor were the men wanting long ; tne occasion al wavs produces the men. A hurried yet careful survey of. the line of race was made, and it was ascertained that the probable cost of completing the scheme would be somewhere about £12,000. Public opinion , was enthusiastically in favour, of the scheme,. and everything augured well for

its success. in an evil hour, however, to support them in their undertaking when they required no support, and to influence the public in taking shares in the concern when the public were only waiting for the chance, the original loaders in the scheme took to themselves a number of men, in all twenty, and called themselves projectors of the Garrick Range Water Supply Company. These projectors expended the sum of four pounds eleven shillings and sixpence each, in again, but more carefully, surveying the line of race, and in taking other preliminary steps to demonstrate a foregone conclusion ; and then, with the most consummate disregard of all decency ever witnessed in this district, or likely to be witnessed we hope, they proceeded to allot themselves 3000 fully paid-up shares, or the insignificant sum of .£l5O a-piece! This was done, we believe, in spite of the honourable opposition of a few of the projectors, who really did look upon and treat the scheme as one for the public benefit. The public, of course, were disgusted at the greedy selfishness displayed by the socalled pi ejectors, and indignantly refused to subscribe to their iniquitous scheme. • This 3000 paid-up share proposal was then rescinded, and 1000 was proposed, and carried ; but still shareholders declined to enrol themselves. The evil which had been done began to press upon the now unfortunate projectors, and finally, in A pril 1872, it was determined to relinquish all the paid-up shares,—not without a strong opposition on the part of those who had only entered the company with the hope of making something handsome out of the British public. The proposal was carried, however, and it immediately became the signal for the withdrawal of all the shamprojectors. The scheme was an excellent one so long as it could be seen through a pair of projector’s spectacles worth £l5O, , or even £SO, but with the naked eye the look of it could not be endured.-,.. The.few . of the original-directors-who did remain ••

were those who entered the company at first with disinterested motives. Their names are wel] enough known, and need not be repeated here. • , Over, .two thousand shaves, —a sixth of the number originally proposed, and perhaps one-fourth of the number really required without Government assistance, — were by this time taken iip, and with the hope of disposing of more shares by the way, the work was actually commenced. The mischief was done,-however. Every act of the company was now looked mpon with suspicion instead of being hailed with acclamation by the miners in the very district which Would bfe most benefited by the bringing-in of the water, and the passive opposition with which the company met in the immediate neighbourhood of its operations reacted in the most prejudicial manner throughout the Province. No further shares would be taken up, and in despair of local assistance, the directora.determined to apply for a Government loan of £4OOO. Our patience would be exhausted in relating the difficulties which they encountered, and the various sums they had to expend in surveys and reports before this was granted to them : but granted it was, after .months of perseverance and experience of that proverbial hope deferred which maketh even directors sick. After urgent and oft-repeated appeals to the Government from Mr Macandkew and Mr Fyke and others, it was granted, and telegrams from Wellington assured the directors that the money would be available on the certificate of the J'istrict Engineer that a corresponding amount had been expended by'the company. TheJcertificates were obtained, and pending the payment of the money by the Government, liabilities were incurred by the directors, to the extent of £I4OO at the least, so that no delay should take place in the progress of the work itself.- It was then discovered by the Government, or rather by their solicitor,- : that the directors had not been legally authorised to .borrow this monev, for which they hud been solemnly negotiating for more than two years. Expensive surveys had been made for the satis faction of the Government, the matter had been urged by influential persons, and the thing was agreed to ; but one clause in a law passed utter the company had sprung into existence nullified the whole and hence the delay which, has now arisen. This i&the reason why an extraordinary meeting of the shareholders was called for hist Wednesday, and we feel sure the importance of it was not properly understood, or the requisite number of- shareholders would have been present, either personally or bv proxy. ;>'•••

The question now arises,—How is it possible to extricate the company from the unfortunate position into which it has fallen? :jEleven miles of the race are already finished at a cost of something like, in round numbers, £3OOO, and six miles’yet remain to be cut at a further cost of, say, £4OOO ; say even £SOOO, for the six a'd’ ditional miles are admitted to be of a more difficult nature than the ones already finished.

Our advice to the directors and shareholders will be summed up in as few words as possible, for our space is getting limited for the present. It is to put aside the idea of assistance from the Government altogether, and to go once more into the market with the share list. The directors can now do so with clean hands,—indeed the present ones always could do that, in asking the public to take shares ; and let no further work be done on the race till the full number of shares which are deemed necessary for the completion of the work be taken up. We would advise that the immediate district be most actively canvassed before asking people at a distance to take any, as the success which would now, we believe, attend their efforts in the immediate locality, would be the test whereby people at a distance would judge of the prospects of the company. The St. Bathans shareholders alone, it is well known, are so satisfied with the scheme that they are willing to increase their shares by six or seven hundred, and they aie all well acquainted with the bringino 1 - in of races. There is very little doubt that the effort would be attended with success. J he works now in progress would e stopped, but it is plain enough that they will soon be stopped at any rate for want of funds. During the time that the second share list would be open for application, the proper steps could be taken to delete the names of those present shareholders who are. in arrears to the company. J hey have been unworthy shareholders, and the sum of the various amounts paid -y them would in some measure recoup t ie expense of the costly surveys which were undertaken to satisfy the Government of the 6orft Mature of-the scheme-'

Two months would determine the whble question, whether the public had any faith in the ultimate success or not. At the end of that time, should the hope of increasing the shares to the number judged to be required, appear hopeless, then most unhesitatingly we should say, let the company be wound up, the race sold to pay the liabilities, and the further proceeds divided amongst the present shareholders. The race of course will not bring the same money which it has cost, but it will cover all liabilities, and leave as well a very decent surplus. The people of the district might afterwards have reason to regret their want of spirit, but the present directors and shareholders would have cause to be thankful that they were rid of the trouble.