Niagara’s Gold Too Costly to Salvage

Grey River Argus, 6 October 1948, Page 6

Niagara’s Gold Too Costly to Salvage

P.A. WELLINGTON, October 5. An attempt to salvage the remainder of the “Niagara” gold, which was proposed recently by an Australian syndicate headed by Mr .J. E. Johnstone—who salvaged most of it during the war—has been abandoned, said Mr. Johnstone.

The attemnt was abandoned mainly because the capital of £Aus.2o,ooo belonging to the syndicate had been reduced by the recent revaluation of the £N.Z.‘, to £N.Z.15,000, said Mr. Johnstone .

The failure of the Bank of England to accept an agreement about royalties on profits on a 60/40 instead of a 50-50 basis has confirmed theiamiost definite decision of the syndicate to liquidate. “GONE HAYWIRE”

The fact that the cost of charter, salvage and pay rates had. “like most other things, gone haywire to-day,” said Mr. Johnstone, had discouraged the venture. Questioned about taxation and Government aid, Mr. Johnstone said: “We’ve heard all about that too.” Taxation had to be met, but it was the least of worries, he said. Although it was reported that it would be the main factor in holding up the venture, this was quite incorrect. The Minister of Defence (Hon. F. Jones), and the First Naval Member (Commodore Simpson) had offered to place a trawler at the disposal of the syndicate, he said. Speaking of reconsidering the venture, Mr. Johnstone said that at a meeting of the syndicate recently the chairman said: “High costs are'making the idea impracticable. If the price of gold goes up and the costs come down we may reconsider the venture; but only under those conditions.” Mr. Johnstone said that when he asked the chairman if that was how matters finally stood, he said: “I hardly think so. I cannot see gold bullion being abandoned; the lure is there. The gold is there for the asking.’ and someone will get it.” Speaking for himself, Mr. Johnstone said that the cost of salvage was so prohibitive these days that a stranded ship was better left stranded.