MINE CLOSING

Hokitika Guardian, 3 October 1932, Page 5

MINE CLOSING

AT HIKUKANGI NO HELP FROM STATE. (Per Press Association — Copyright.) WHANGAREI, October 1. As the result of the Unemployment Board’s decision not to assist with the purchasing of any pumping plant, the Waro Go-op. coal mine at Hikurangi is being abandoned. A start was made with withdraw the pump s this morning.

There is grave fear that the flooding of the Vv aro mine will soon render the Hikurangi Coal Company’s mine unworkable, as the flood waters will be beyond the company’s capacity to keep down. Over twelve hundred people are entirely dependent upon the mining industry j the collapse of which would 1 mean a big loss to a large district.

No financial .assistance is to be given by the Unemployment- Board toward providing additional pumps for icorttroßing 't’h 6 inflow of water, according to a statement made by Mr ,J. Jessep, deputy-chairman of the board.

In an ©rldeavoUr to keep the mine working, the owners of the Waro ana Hikurangi mines and the directors of the W'aro Co-operative Collieries, who have been working the Waro mine under a lease, approached the Unemployment Board with a request that it should provide approximately £12,000 so tmu- ©Atria maciiinexy cou.a be obtained w control the inriow into the Waro mine, tne money to be repaid oy royalties.

iVir Jessep said that investigation seemed to show that the large sum mentioned would be insufficient to ueai effectively with the water in both the mines, and 'a very much larger amount wou.d be required, it would now be for the owners .of the field to dea. with the matter.

“The position is impossible,” said 'Mr It. Nesbitt, chairman of the Hikurangi Town Board. “The Unemployment Board’s decision will absolutely ruin Hikurangi.”

It was stated yesterday by Wilsons (N.Z.) Portland Cement 7 owners of the Waro mine at Hikurangi, that they were not going to resume mining operations, while the directors of the Hikurapgi Coal Company, Ltd., expressed doubt as to whether they would be able to carry on, as the stoppage of the Waro mine would result in flooding the Hikurangi- mine.

Th e eliaiirm’a.n of the IHikurangi Town Board telegraphed’ to. the member for the district (Captain H. M, Rushworth) requesting him to ask in Parliament, why the Unemployment Board has refused assistance, The instructions issued by Wilsons to draw the pumps'and machinery has cast a gloo.n over Hikurangi, as although the outlook has not been favourable for .som© weeks, the people had not abandoned hope that the Government would come to th© miners’ assistance. Th e township has a population of 1000, and the life of thfe township is bound up in the two mines, Hikurangi and Waro. AUCKLAND, 'October 1.

Price-cutting among coal companies was deplored by Mr J. Catchpole, chairman of directors of Pukemiro ’Collieries, Ltd., at the ,annual meeting o-’ snare holders, yesterUay.

In order to minimise the cost of marketing tne company s product, a jomt selling arrangement hud ueen entered mto with xvenown Loifienes. it was noped that this would tend to reduce tlie .handling cost, tnor b especially in the larger centres.

In moriiig the adoption of the halauce. sneet, which showed a loss on Hie year’s trading, of >£6,6ou, Mr (Hendry Luke, Chairman of Directors, regretted there was not a better position to put ibefore shareholders. In the past year, the coal business had been conducted along absolutely senseless fines and shareholders of ad Waikato nones must ’be dissatisfied.

Fixed prices had been agreed upon lor round coal, but the price of slack which represented 45 per cent, of the output, had beem forced down from IDs a ton free on rail, to 6s 6d, winch represented a Ices to the whole of Waiicato companies of £25,000.

iOne remedy was amalgamation of capital, which would mean a big saving in expenses to the five Waikato companies. The alternative was a combined marketing association, by which shareholders would get money which was at present being distributed among other individuals.

As to amalgamation, until personal ambitions wer© put aside, the proposal would not get far.