THE IRONSAND INDUSTRY.

Taranaki Daily News, Volume XXIV, Issue 54, 19 February 1902, Page 2

THE IRONSAND INDUSTRY.

ME QADMAN AMD THE HARBOUR . BOARD. 11 A SATISFACTORY INTERVIEW. • ■ u At the meeting of the Harbour Board v ou Tuesday, Messra Oadmaa and Berry j waited on the Board with a view to) t placing the questions of tenure, royal-1 * ties, and other matters on a satisfactory 11 basis. Mr Samuel, the Board's solici- \ f tor, was present at the interview. 1 ( Mr Ctadmai), after being introduced jto the members by the Chairman, Mr 1: J. B. Oonnett, said that the matters at i issue between himself, as representing t the proposed Ironsand Company and { the district of New Plymouth, were of 1 suoh vital importance that he was par- t liuularly anxious any remarks he might ' aiaka might be accurately placed be- < fore the public. In laying his proposals before the Board, he recognised 1 that the members had the right and, 1 as practical business men, it was their duty to safeguard the interests of the ratepayers, but if the Board acted on i the principle of extracting the utmost pouad of flesh, then the present proposals would be wreaked. At the same time, he did not pose as a philanthropist who wished merely to benefit the district. The matter was a business one on the part of those who put a large amount of money into the concern and naturally required to see sauie 1 return for their capital. The question was: Should Taranaki reoeive tbe ( benefit of this industry or not? And the reply to a certiin extent depended , on the concessions made by the Board. , Reviewing the present position, Mr Oadman pointed out that the existing | foreshore lease had only sixteen years to i nn, and was encumbered with a lot I of clauses as to renewal that were quite , unworkable. Then the royalty under ( the laaso was sixpence per too on the t sand used and a similar amount on the ( iron manufactured. There were other I provisions also, including those relating to the capital expenditure, which were , not workable. It was proposed to . float a company having a capital of .£250,000, and it would readily be seen I- tbat for so large a concern five aer«s waa too small an area, and that the

works would necessitate the provision I of a much extended space. Moreover, i it might be necessary (be did not say 1 it would be so) to import a large amount of the skilled labour, and the company might in that event have to 1 house these men near the'works, and thus they would require space for a township. As to the sixteen years lease, it would be madness to erect expensive plant on land held for such a short tenure, and therefore it was only reasonable to &«k for a term commensurate with the capital to be expended, As to the royalty: The present reservation w<w excrssive, and his idea, was that it should be altered to nisepence per ton on the manufactured article. He pointed out that if 'royalty were payable on the sand there would be a lot of trouble in guaging the quantity put through, and possibly squab bias would result.; but this would not ba the case if the royalty were cocfir.ed to the manufactured article, ♦he quantity of which would always shew on the books. In the Old Country 3d or 4d a ton was charged, and there holes were cut and property destroyed, while here property would be improved. Another point was that if royalty were payable on the sand there would naturally he a tendenoy to leave the poorer quality, whereas if no royalty were payable on the sand it would be taken as it came, Mr Cadmaa next referred to end asked the Board to remember, the difficulty that had to be faced with reference to the erroneous ideas which existed at Home as to the labour laws of this colony. Wherever he had been able to do so he had explained the true state of affairs on this point, and had disabused people of their idgas as to higher wages and shorter hours. There was no doubt, however, that they would have to. make a considerable reduction in the price of iron so as to capture the trade of the colony and compete successfully with those whp now held the trade. The new Federal proposals were another source of trouble, as the bounty on the manufactured article t>o be given to Australian manufacturers was founded on the principle adopted in Canada. (These have already been published in the Daily Ne\Y4.) He ha 4 been asked why our Government could ngt do the saiq?, Hq thought that the assistance and offers made by our Government bad been very reasonable, and he was not prepared to ask for more. If reasonable arrangements were made in New Plymouth he wan confident of being able to fix the matter up. In dealing with the question, so far as the proposals were concerned, he might have to ask for slight modifications!, and should such a oontingenoy arise he trusted that on receipt of a cable the matter would receive prompt attention. It rested with the Board as to whether New Plymouth should be the head quarters of the industry or not. Personally, he was quite satisfied that it should be, as it had all the facilities necessary for the purpose. It was therefore a question whether the Bqard wag prepared to deal with him as representing the company. He did not wish for at? answer right away, but if at tho next meeting the Board gave a favourable reply he was prepared to go on with the proposals to establish the industry here. There was, however, on a matter more which he had to bring before the Board, and that was the question of adequite shipping accommodation, This was a very important point in the scheme as at present both the harbour and wharf barely sufficed for existing needs, fle felt great reluctance in asking any company to start here unless something was done towards meeting the raquirejaenta of the industry, There were throe courses open in relation to harbour improvements. The first wis for the Board to do what was necessary ; failing that the Government might be asked, while the last resource was to get outsiders to take the matter up. He did not think the Government ought to undertake the work even if asked, so that if the Board would not do what was necessary the question arose as to what facilities the Board woqld give to outsiders to undertake the work. He considered that everyone must sdmh that the district of New Plymouth would benefit very greatly by the establishment of such an industry here and though, a# a rule, he was irt of a sanguine temperament be was confident in the success of the project in haud. He wanted to be in a position to say on the other sr'e " here tiro your title and conditions " and therefore hi was anxious that these might be such as to be accept&bl3 to those who were embarking their capital in the venture.

Mr. King inquired what length of tenure was asked for.

Mr. Cidma:> sttbmifc'ed a letter in [which it was advised that a new grant

ihould ba made as for a. mining leate ' vifch provision for renewal*. i * The Chairman: The letter does not ' ndicate the length of tera. J Mr. Samuel: The Board could give i right; for perpetual renewal on the 1 , laual terms relating to periodical ' valuation, etc. '. Mr. Cad man considered there ought to be a lease for 42 ye ire at the least ' with the right ef renewal as it would not be fair at the end of the 42 years 1 for the company to forfeit its very expensive plant. Mr. Samuel inquired if Mr. Oadman had consulted his New Zealand solicitor in the matter. He pointed out that the Board was bound to act within its powers and put the property up to tender, the renewal of the lease being subject to valuation of improvements. Tha Board had no special powers and could not grant a mining lease. Mr. Oadman inquired if the Board had the power to grant a renewal without revaluation. Mr. Samuel replied in the negative. Mr. Maxwell explained that the rent was fixed after deductiog valuation for improvements. Mr. Samuel: The lease could practically go on for ever subject to valuation every 21 years. Mr. Oadman: Without compensation for improvements at its termination ? Mr, Samuel: Y«s, but it was open for the lessees either one year before or within one year after a term grant d to have the improvements valued aud the re-letting, weighted with improvements. Mr. Oadman: The fear was that a plant of .£IOO,OOO might ba placad on the land and then )o«t. Mr. Maxwell: Mr. Samuel's statement does f way with that fea*\ Mr. Oadman: Theo if 42 years were secured it would, under the circumstances, appear to be satisfactory. Mr. King: There must be a valuation after the first 21 years. Mr. Maxwell: But no fresh tenant could come in without paying valuation for improvements. Mr Oadman: The people on the other side were uneasy. He reoognised that the Board could not do impossibilities, and therefor*, eo long m he felt the Board was reasonable, he had no doubt as to being able to satisfy those interested in the project. The Ohairman inquired what time was asked for from now for the ereotion of the plant.

Mr Oadman said he would like the Board to give him a reasonable time so as to have a margin to give-and-take on, as he was negotiating with several people. The project was not like a goldmining ooncern, and would not stand overloading; and if it was a question of paying A large snm to float the* company, he would have nothing to da with it. He had already declined two proposals, and if the third fell through he had two more to rely on, He did not think the delay which had t*ken place would prejudice the Board, and he considered that the Board knev him well eneugh to trust him to see the matter carried through. Mr Samuel said that what had already bo n asked for a>d practically agreed to by the Board was to extend the time for re-entry ti.l 25: h January, 1903.

Mr Berry pointed out that what Mr CMman asked for was the surrender of the present lease and grant of a fresh one,

Mr Oadman said he recognised the Board had no right to tie up its property, and that so long as he felt he could get extra time if required he was quite satisfied. With regard to the area, Mt Samuel said be understood that it was proposed Mr Qeorge should surrender some 45 acres., Mr Oadmtn rr>pHed thnt what ho I required was that the engineer should be allowed latitude to arrange with the present lestea for suoh additional land as might be required. Mr Samuel pointed out that in a legal lease tbe area must be definsd, so that some definite area cauld be named, the compmy to be at liberty to come to the Bsard for more if ssoessary. Mr Cadm*n; That is so; but it is a matter for the engineer to settle. Mr Brry produced a plan showing the land proposed to bj used by the company, and ha stated that Mr Gaorgi was willing to surrender the land in question, Mr Samuel suggested that the best] coarse would be for him to arrange with Mr Boy the terms of tbe new I leMB, so as to settle the first step that day, and thereby avoid delay. This course was adopted, and the Board adjourned for luncheon. On resuming, Mr Samuel again waited on, tUo Board and submitted j suggestions for tbe P«troleum Syndicate surrendering rights to ironsand, etc., in the lease held by it, to the new company. Mr Berry asked if he had not a right of renewal to the ironsand least* the currency of which was 21 yean, 10 of which were still to rv\n, Mr replied that there wis no right of renewal; but the Bo»rd might grant further lease of it were it so disposed. He then'sabmitted a further forma) resolution to be passed by the Board in connection with the surrender.

Mr Oadmin asked if Mr Berry could surrender his present lease and obtain a new leise for the balance of the present term and a further term of 21 years.

Samuel raid that could be done, but there would then be no farther right of renewal. Mr Boy painted out that what was wanted was a direct lease between the Board and the holder. At present there were nov«r<l intermediate interests which might lead to confusion. After some further discussion, the! Board decided to agree to the issue of the new lease as desired by Mr Berrv.i Mr King asked Mr Oadman what his ideas were in regard to the harbour, i

Mr Oarl man siid that before he s«id anything he would like it understood that he was not responsible far anything that might have appeared in print or bean said by a third pirty. In rfgird to the harbour, be could no!; aiy exactly what should hs done, but he had met people who were pre pared to enter into the matter, bat they would first requiro positive information residing probable revenue,j outlay that would hj? requirsd according io probable trade. To carry our, improvements already suggested by th« Board would not cost si much as if the ironsind industry were suddenly planked down here.

The Chairman said the question wax bristling with diffiauitins. li #na for the ratepayers to deci io whether they would accept the {company's proposals. Mr Maxwell said he had no doubt the ratepayers would gladly accept, if they were to be relieved of the rate, and wer<> assured that a maximum consideration were received. j Mr Cadraaa mid the first question

wee: Was the Board in a position to Barry out the harbour improvements itself. Mr Maxwell and Mr McLean: Not the slightest: hope. Mr Oadman said he would like the Board to place before the ratepayers the company's defiaite proposals, and let them decide. The principal items would be in regard to charges, abolition of rate, fixing of maximal pert charges, taking over harbour loan, and improvement ot.the harbour. Then might be difficulty in soma quartets through an idea getting abroad that the company was acquiring p, monopoly, but this of course wean mistake. On:" thing was oertaio, the Board weuM have to expend* lam sum at first if it kept control of trn harbour,. If ironworks were to bo establish*! the harbour must be im< proved, and if the Board could not do this (and it was really the • hody that should finish the work), it should leok out for someone who could. Mr Miutwell said the Board should reoeive aprcific information as to what Mr Oadmaa wanted, at)d if those w«f# aoospted, it could promote the nfwsary legislation. ; Mr Oadman promised to forward the information, and then withdrew. Formal resolutions were then pissed accepting the aurrender of leases, held by Messrs George and Alexander, and accepting the surrender, and agreeing to the issue of a new less* to Mr D. Bury foe hia irons rnd lease between the Tnpuae and Waiwakaiho rivers.