TRAGEDY OF FAILURE

Hokitika Guardian, 19 July 1930, Page 3

TRAGEDY OF FAILURE

RUINED MINING CENTRES.

CHILL AG OE AND MUNGANA. Chillagoe and Mungana, the townships which were most concerned in the leases scandal, are mining centres in the hinterland of Cairns, in North Queensland. They have taken an important place in Queensland politics for more than a decade, during which a live Opposition frequently from the public platform, and in tlie Legislative Assembly, charged the Labour Administrations, led by Mr Theodore and Mr MjeCormaok, with gross mismanagement of State mining enterprises.

Both townships are again arousing public interest by the sensational findings affecting Mr Theodore, Mr McCormack, Mr P. L. Goddard, the former manager of the State smelters at Chillagoe, and Mr Frederick Reid by Mr Justice Campbell, who was appointed by the present CountryNational Party Ministry to inquire into the sale of the Mungana mining leases to the State for £40,000. •' i ' •>

During the last Queensland election • campaign, -which resulted-in'an overwhelming 'victory for the Opposition, | the leader of" the 'Country'-National Party* (Mr Modfe) made’ one of the main planks of hi? 1 platform his promise of a Royal Commission of "Inquiry into transactions at 'Chillagoe and Mungana, and Iris'promise was cer" 'tainly' a factor in the decisive defeat of Labour after* 14 yenri of'office. Matters preceding tlie sale cif the leases to the State had been the- subject of many, charges by opponents of the Theodore and .'McCormack Ministries, and it was as a result of these allegations that Mr Moore, during his election campaign, declared at Ipswich on May Bth, 1929, “ It is absolutely essential to the honour of the State that this matter should be cleared up.” Afer the crushing Labour defeat, the Moore- Ministry, to relieve tlie serious unemployment' in’ the district, rccoirilhen'ded work at the smelter?, When Mr Moore visifed tlie locality last year the; townships ’ were falling into ruin, and tlie, tragedy of failure ivas apparent. ! Scarcely a shop, was occupied, houses were Falling to pieces, and herds, of.gogts browsed, in, what wa.s once busy stree.ts. . .Mr- Moore frequently asserted that. he. had never looked upon a. scene of. gr.etytcr desolation and degradation than that at the once prosperous- - mining- centres.

Tlie Mungana mining leases, the Lady Jane and the G.irofla, ■ were those which :.snp.plied-Seven-eighths of the ore to the Chillagoe smelters a few miles distant. .The.- smelters- were...opened by the Chillagoe Copper Mining Company, Limited, in the ’Bo’s. The company built the railway from Cairns to the hinterland, after ha'ivng bought the two mines from prospectors. It had a-chequered' career owing* to the inability to obtain sufficient ore, and to its obsolete process. Debentures were issued, and tlie railway, the smelters, and the mines fell into the hands of the debenture-holder's, who worked them again with' disastrous ; results. Ultimately the mines, the railway, and the smelters were closed,' aqd they remained unoccupied for many years. Later, tlie whole property was offered fo the Government unsuccessfully for about £500,000. The mines were held by prospectors and a small syndicate. After a fire at the Girofla, the works fell in ; and they appeared to he wrecked. The syndicate bought out the other shareholders cheaply. About 1917, the Labour Ministry, led by Mr Ryan, • began negotiations for the purchase of the mines. The syndicate, howevei/ failed to pay tlie rent and the mines were forfeitable ,as abandoned mines, and they became vacant Crown Ip'nds, inasmuch as any applicant could peg leases and apply for the ground... Mr Reid, then pegged tile lands,, and applied for the leases, hut before that the Th.godofe Ministry had signed a contract for the purchase of the railways ' and the smelters for £701,000. The- warden recommended on Mr Reid’s application, ■ that,, the leases should he granted, and, the papers were sent to Brisbane. Mr A. Jones was Minister of Mines. A liitch occurred, however, and Mr Reid went to Brisbane. A new syndicate was formed and registered, and it was that syndicate which sold the Mungana leases to tlie State for £40.000.