GREY RIVER COAL COMPANY.

Grey River Argus, Volume VIII, Issue 539, 1 July 1869, Page 2

GREY RIVER COAL COMPANY.

A public meeting, called by the Mayor, was held on Tuesday evening, in Gilmer's Hall, for the purpose of considering the desirability of forming a company, with a local directory, for working the Grey River Coal Mine and constructing a railway to the Arnold. Owing to the very inclement state of the weather, the attendance was not as good as it otherwise would have been. E. Masters, Esq., Mayor, took the chair, and said the business for which they had met was well-known to all present — it was to consider whether it was desirable to form a new company, with a local directory, to work the mine on this side of the river, dud to construct a railway to the Arnold. It must be evident that the interest of such a company would be better secured by a local directory than by being governed from Christchurch, aud there were gentlemen present who would lay before the meeting all information as to the matters of detail. A c>mpauy had been preparing to work that mine, but for reasons known to themselves they had not complied with the conditions Oi their lease. His opinion was that the conditions weve too stringent, and could not be carried oat in the space of time allotted, and the company did not feel justified in embarking a large amount of capital in the undertaking. They now asked the co-operation of the people of this district to form a new company to work the mine, and it certainly was a matter of much importance to the prosperity of both town and district that the mine should be properly worked. He called on Mr Wylde to make explanations. Mr Wyldb regretted the absence of Mr Martin Kennedy, who was to have laid the matter before the meeting, but he would proceed to state the facts. They had been invited that night to consider a matter of vital importance to the district. He need scarcely dwell upon the importance of having the mine on this side of the liver worked, and a railway formed to the Arnold ; they were all aware of the importance of the work, and that upon its being carried out depended much of the prosperity of the place. A company was formed in Christchurch some years ago which undertook to make a tramway or railway up to the coal mine, not for the purpose of opening up the country, but simply to bring down coal from the mine. That company, unfortunately, or, rather, he should say fortunately, did not carry out their plan in itsentirety. They had done a considerable amount of work, but circumstances rendered it impossible for them to carry out the work as it should be. That company was formed before there was any population settled here ; the country was governed from Cliristchurch, and the only people who could have taken up the lease were on the other side of the ranges. It was then supposed there would be no difficulty in raising LIOO, OOO for the work, and estimates were prepared. But Ik w very different did matters look now. Not only did coal exist here in immense quantities, but there was now a large population to consume it, and to make the railway a profitable undertaking. The prospects of the company were improved a hundred times since it was first formed. A few days since a deputation came over from Christchurch, consisting of Mr W. Wilson, late Mayor of that town, and Mr Ollivier, Provincial Auditor, in order to ascertain how matters stood, and to m»ke arrangements. They came to test public feeling in the district, and ascertain whether the people here would take an interest in the scheme. They met privately a number of gentlemen and explained the state of matters to them. These gentlemen were unanimous in approving of the plan proposed, and the deputation would have called the present meeting to bring the matter prominently before the public, had they not been compelled to return to Christchurch. It was thought best to call the meeting in their absence, so that the people might have an opportunity of joining in the movement if they thought proper. The scheme now proposed was that a' new company be formed, with a local directory, the shares to be reduced to L 5 each, 5s per share to be paid on application, 15s on allotment, and no further calls to be made with less than one months' notice. In the last company the directory was in Christchurch, which was absurd. The deputation from the old company vow proposed to form a new company, whose headquarters would be in Greymouth, and would be under local control ; but they were not willing or anxious to give \ip all their interest in the concern. They saw clearly how much money was to be made out of it, and they were ready to put a large amount of capital into the concern, if taken up in Greymouth in a manner to ensure success. Since they visited the

Grey they were satisfied that a first-rate directory would be found here, and, the old directory was quite prepared to advance the matter by putting a large amount of capital into it. But he thought it was scarcely desirable that all the capital should come from other places ; the people here would be sorry to lose the chance of joining such a profitable concern. The new company would obtain from the Government of Westland a fresh lease, on far easier and more advantageous terms than those contained in the old lease. They would obtain 5000 acres of coal reserve on far easier terms than the old company held it, and the Government was bound by their resolutions to guarantee 8 per cent, interest on the capital of the railway to be made. In such a safe undertaking capitalists would be only too glad to invest. It was also proposed to reduce the price of the shares from LSO to L 5 each, so that they might be easier disposed of when necessary, and so that every man in the district could have at least one share in the concern. The only difficulty in the way of forming the new company was ■the existence of the old one, which held the lease. They might throw obstacles in the way, and they might demand that their rights and privileges should be purchased from them. In addition to the lease of the reserve, they held freehold land, which the railway would have to traverse. But they were willing to give up everything on receiving in the new company shares to the amount expended by them on works already done. They wanted no preference shares, or one penny of interest on the money which they have lain out of for years. They might be aware that he had an intimate acquaintance with the property proposed to be lease!, and his opinion was that a finer property di<l nob exist anywhere in New Zealand. It consisted of the finest; flat Imd to be found on the West Coast, c n'ered with magnificent timber, which alone was a source of wealth ; contained immense quantities of splendid fire-clay, almost unlimited in extent, and of as fine a quality as could be found in the world ; the finest building stone ever seen here lay over and under the coal seams ; but, above "11, it contained most magnificent seams of coal. He had traced in it three seams of coal overlying each other, and all of fine quality. The coal which had been brought down from the mine was no criterion of what it realty was, for it was destro/ed by being shot into boats, trampled over by men, pitched on to the wharf, and again shot into vessels. If put into waggons and conveyed to town it would be a very different article, exceeding in quality anything that could be produced in the colonies. The coal in the reserve was unlimited in extent, so far as generations were concerned ; he had traced it all over the reserve. He had made up estimates showing that the coal could be delivered in town at 10s. per ton, leaving a large profit to the company, and when they did so they would secure an enormous market all over the colonies, arid drive the Newcastle coal out of the field. When the estimates were first made of the railway, it was supposed to cost an enormous sum ; but now it was found that there would be no difficulty inconstructingavery cheap line from Grey-mouth to the Arnold, the total cost of which, including rolling stock, would not exceed L 25 ,000. It was proposed that the capital of the new company should be L 50,000, but it was not supposed that amount would have to be paid up. L 25,000 would be sufficient to open the mine, and form the railway from here to +he mine, and an additional LSOOO or L3OOO would cany it through to the Arnold. There was no difficulty in carrying the line to the Arnold, which would have the effect of forming a centre for the up-country diggings, and opening up the rich agricultural laiul which exists in that direction. He held in his hand a proposal signed by Messrs Lahman, Coates, Kennedy, Guinness, Revell, Strike and Blackmoie, Maclean, Middleton, Parkinson, Williams, Gihner, O'Donnell and Evans, Wickes, Sheedy," Glenn, Rae, and Lapham, all of whom had agreed to take up shares. But it was to be borne in mind that they would only be asked to take up their shares contingent upon obtaining a satisfactory lease from the Government, and the new company being constituted under a new deed of association. It was now for the people to say whether ihey would support a scheme which would benefit the whole district. It was not only the wealthy men he hoped to see in the company, bnt that every working man would have at least his one share, so that all would have an interest in an undertaking which would send this place ahead, and make it more prosperous than any other town in New Zealand. (Applause.) Mr F. Guinness asked whether the capitalists of Christchurch were prepared to advance the money for the railway, provided the guarantee of the County Council was obtained 1 Mr Wylde said the deputation from the old directors stated when here, that if sufficient shares were taken up here to ensure a good local directory being formed, and to secure the public interest in the matter, and that was reported to them in Christchurch, there were capitalists there, interested in the old company, prepared to put down their L 20,000 or L 30,000 to carry out the work, either as shares or as a loan until sufficient shares were taken up. It was astonishing the large amount of capital lying idle waiting for investment in Cliristchurch ; 8 per cent, was the most that could be obtained ; and many of the gentlemen there were surprised when he told them that they could invest their money in railways here, Avith a Government guarantee of 8 per cent. Mr H. H. Lahman said the directors of the old company came there to offer them a fair compromise, if they had not sufficient capital to carry out the scheme for the new company ■ alone. They, in fact, said, "if you obtain the new lease from the County Conncil, we will find the necessary capital," and in his opinion that was a great thing for Greymouth, for a capital of some L 30,000 or L 40 ,000 would be required. The old company had expended L4OOO in opening up the mine, for which they proposed to take shares in the new company. As soon as they found that LIOOO worth of shares were taken up in Greymouth, all the necessary capital would be found on the other side of the ranges. He thought they could do nothing better than embrace that offer; if they did it would make Greymouth the first place on the West Coast. Those who took up shares in the new company must expect to receive at least the 8 per cent, guaranteed by the Government for the railway ; bnt the traffic on the line, once it was opened to the Arnold, would of itself pay a handsome dividend. He would like to see every inhabitant of the district

become a shareholder in this promising undertaking. There wa3 hardly any doubt that the undertaking would be a very profitable one, and if the residents did not invest in it, all the [profit would be taken away to Christchurch ; but if they did come forward and take shares it would be for the benefit of all. The actual capital wanted was nothing like LSO 000 • but it must be obvious that the compan^ would have to undertake other works besides making a railway. They would have to find the ways and means of getting nd of the coal by delivering it at the lowest possible price, sending it to other ports, making the river more navigable for large vessels, and employine steam colliers. All that could be done if the L 50,000 were raised. He would mention that he had been given to understand by the County Chairman that there was not the least doubt a fresh lease could be obtained by the new company, under more favorable conditions than the last one. Mr Parkinson, after a few remarks, moved—" That it is desirable a new company be formed on the basis proposed and laid before the meeting by Mr Wylde with a local directory, for the purpose of working the Grey Coal Mine, and constructing a railway to the Arnold." Mr Lahman seconded the motion, intimating that already 360 shares had been taken up in Greymouth. Mr Dalb supported the motion. He had come to the meeting as a working man, the scheme with disfavor but the explanations made had removed his objections, and as a humble individual he would do all he could to advance the scheme. He regretted the absence from that meeting of a large number of the artizans of Greymouth, and the miners in the neighborhood, for he believed they would readily see it to be for their good to take an interest in the undertaking At present the working men were receiving only four per cent, for their money in the banks, and it would be only looking after No. 1 to invest it where they could obtain eight per cent. The motion was carried unanimously In answer to a question, Mr Wylde stated that lists were lying for signature at the office of Kennedy Bros., and at the Grey River Argus office, but he hoped those present would not wait until next day, but come forward and put their names down for as many shares as they felt inclined to take. For himself, he had every faith in the company, and he would at once sign for twenty shares: A number of gentlemen came forward and signed the share list. A vote of thanks to the Chairman terminated the proceedings.