ARAPUNI SENSATION

Sun (Auckland), Volume II, Issue 497, 29 October 1928, Page 1

ARAPUNI SENSATION

Hon. J. A. Young Now Reveals Why Statement was Issued

THREAT TO GOVERNMENT

EXPRESSING his faith in the Public Works engineers who r had made researches and plans concerning the dam at Arapuni, the Hon. J. A. Young made a sensational announcement to-day concerning the alarming report emanating from Mr. R. W. Holmes, formerly chief engineer of the Public Works Department, which was published on Saturday. (Special to THE SUN)

HAMILTON, To-day. In connection with the sensational statement published on Saturday from Ur. B- W. Holmes, formerly chief engineer to the Pubic Works Department, equally surprising revelations o( the circumstances under which Mr. Holmes offered the report for publication has been made public by the Hon. J. A. Young to-day. This serves to show how an attempt was made to create widespread alarm.akirm. Mr. Young had received a letter from Mr. J. D. Holmes, a son of Mr. Holmes, demanding that the Government should redress a grievance from which Mr. Holmes felt that he and his associates in a certain gravel business venture at Otorohanga, were suffering. He threatened that if this were not done he would publish his father’s report relating to Arapuni. In an interview, Mr. Yonug reviewed his whole association with the Arapuni venture. In the early stages ol the negotiations he drew attention to the possibility of earthquakes, anH urged that whatever else was done, the engineers should not lose sight of that possibility, and should do everything to assure the safety of the residents of the lower Waikato baisin. Mr. Young raised the issue in Parliament on several occasions, and the outcome vai that instead of the ordinary dam being built, a special type of dam,

known as the gravity type, was constructed. This type . assumed the maximum strength of safety and needles sto say, it cost many thousands more tha nthe ordinary type. Regarding the sensational statement published by Mr. Holmes, “This,” said Mr. Young, "is tremendously discounted by reason of the fact that behind it all there is a suggestion of mercenary motives, which, as far as I understand the position, have relation *o a grievance which Mr. Holmes, junr., has been nursing for some time in connection with alleged misfortunes In a gravel company in which apparently he had a substantial interest, i desire to offer no further comment than to hand to the Press the letter which I received from Mr. Holmes.” “Before specifications for the work were finally approved,” said Mr. Young, “most complete and thorough research was carried out by the engineering staffs over period of several years in order to assure the Public that everything possible was being done for stability and safety of the work.

“I feel,” he said, “the Public j W orks authorities have taken every step possible to build a structure that would stand all the possible strains that the most nervous person in the community could anticipate. For my part l have the utmost confidence in the work which was being carried out. Mr. . Young sent to Mr. Holmes the following telegram:—“ln reply your letter received, as the matters appears to be one entirely between yourself and the Prime Minister, I have no comment to offer.” Mr. Young added to his interview: “I had not intended to take any part in this matter, but in view of the great amount of local alarm caeulater to be created by publication of the Holmes statement, I felt constrained to hand the correspondence to you for publication, so that the public may see and judge for itself whether it was public or personal interest which actuated those responsible for the publication.” The letter is as follows:- « Wellington, October 20, 1928. Hon. J. A. Young, Parliarr/'.t. Buildings, Wellington. Dear Sir, —In 1922 we became interested in a business at Otorohanga that was supplying gravel to local bodies. During January, 1925, the Kailway Department 'demanded that our company build a new loop in the station yard, in order to cope with the traffic. We would not agree to this and took the matter to Mr. Coates during February, 1925. He arbitrated on the matter, and in March and April our railway siding was constructed and extra plant ordered. In May, 1925, the commercial agent of the Railway Department addressed the Chamber of Commerce at Otorohanga, stating then that the present rates were sound and correct. Two weeks later, the department, with Mr. Coates’s sanction, announced an enormous increase of about 130 per cent., as affecting a. large part of our market.

“The alteration in freight smashed our company, and seriously affected companies from North Auckland to Dunedin. “We have been requesting that relief be given ever since. We placed the position before Mr. Coates during March, 1927, and he promised to give relief. So far that promise had not been honoured. Shortly after a drastic increase was made in the rail freight on road materials and a drastic reduction made in the freight charges on dairy produce up to about 170 miles, and then from about 160 miles no charge being made. These distances coincide with the distances from Hamilton to Wellington, so the rumour that these drastic alterations were made in order to enable dairy companies there to send their produce to the Melbourne market appears to be correct. “The outcome of my requests lias been that insidious persecution by Mr. Coates, Mr. Furkert, and others lias been carried out (see my letter to Mr. Downie Stewart). We have lately requested that immediate relief, and compensation, be given to recompense us for the damage and evil done to us.

“We gave Mr. Coates until the 20th inst. to give us assurances that our requests would be carried out. Failing this, then we would be reluctantly compelled to act on the advice of a prominent member of the Reform Party and use every weapon we have good, bad and indifferent —against Mr. Coates, in order that we may be allowed to earn our living in this country and obtain fair and just treatment tor the shareholders in our campany.” “We have always supported the Reform Party, and have no wish to do anything to damage that Party, particularly before the coming election, but the facts about Arapuni will have to come out sooner or later. Enclosed is a statement about Arapuni by R. W. Holmes We are reluctantly compelled to state that unless we receive a telegram or other notification by 10 am on Wednesday, the 24th of October, 1928, from the Government that our requests will be acceded to, then this statement will be made public, and also all correspondence in regard to the matter. Yours faithfully, J- D - Holmes, D. 5.0.”