IRONSAND LEASES

Taranaki Daily News, Volume LII, Issue 295, 22 January 1910, Page 2

IRONSAND LEASES

COMPANY REQUIRES FURTHER ' CONCESSIONS. "MAKING A CATSPAW OF THE BOARD." The Harbor Hoard meeting yesterday received a deputation, consisting of Messrs J. W. Poynton, Public Trustee, I and D. Berry., in reference to the leases of the New Plymouth Board's foreshore held by the executors of the late Sir Alfred Cadman for the purpose of establishing smelting works or treating the deposits of ironsand. The following correspondence on the maKer was piaced before the Board: Mr." J. AY. Poynton.. Public Trustee: I regret to have" to again ask you for an extension of time for expending £2OOO on the leasehold as provided in terms thereof. 1 shall be in "New PI v. mouth on the 20th inst. in order that) I may have a personal interview with you or any member.; of the Board that may desire it. I understand that your Board meets on the 21st inst. I think I' shall be able to satisfy you that a further •extension is jtes'irable. Trusting this application will be favorably considered. From the Parana ra Iron Ore Company, Ltd., to Mr. J. W. Poynton, Public Trustee:—As you__are no doubt aware the extension of the time for spending £2OOO on the above leaseholds at New Plymouth expires this month, and I am instructed by my board to approach you with a view to enlisting your services to enable my company to obtain a further extension of time in this matter. The directors wish me to express their regret that they have again -o ask fo r an extension; they recognise the considerations extended in this and in other matters connected with the Cadman leases. The directors have, however, been put to a great deal of expense in money and time in their endeavor to complete the proposition before exploiting foreign markets for capital. The long delays have been necessitated by negotiating for agreements and options over othe r adjoining properties containing coal, water for electrical power, etc. It was recognised that the completion of all details was essential before any attempt w.is made to enter into negotiations, for flotation or sale abroad. The scheme is now approaching completion and within the next few weeks the dirostors will despatch two representatives abroad armed with the best of credentials and backed by a proposition of great magui-, tude and importance, embracing, as it' now does, iron ore and ironsand leases, coal areas, freehold sites for erection of necessary buildings, water-power for electric smelting, etc. The prospects of a successful issue to their efforts are excellent. The directors have every confidence in the ability of their represrntatives to obtain a hearing from even the most conseravtive financial house, and with this assured the very completeness of the scheme will ensure success. The value to New Zealand of the establishment of iron smelting works on a large scale will b e very considerable indeed, and any assistance and consideration extended now will be amply repaid in the future.

Mr. Poynton, addressing the Board, said th~at tile present time.seemed to be opportune for placing an iron venture on the English market, for the supplies of iron ore were becoming exhausted, and the pric e of iron was consequently rising. The recent development of the electrical process of smelting, too. hftcl a very direct bearing on the possibilities of this scheme, for it was possible to obtain 0000-h.p. from water at Parana ra. The prospects of the venture appeared mere hopeful now than ever. He asked an extension of the lease until the end of MarclT, 1911. and assured the Board that this would be th e last extension asked tor. He pointed out that the company's other options expired on that date.

. Mr. McCluggage asked if there were any guarantee that the company would go on at the date mentioned.

Mr. Poynton said there could be no actual guarantee, but the promoters were putting £40,000 into the venture, anl proposed getting experts from Home to report on_ the field if the capitalist required. The scheme now was very complete owing to excellent water right's having been secured.

Mr. King pointed out that the last deputation to the Board had given an aSilfancc ilia? th e company was sending its representatives Home in a couole id' weeks. '

Mr. King asked what the company proposed-doing at New Plymouth. All they had heard so far concerned operations at Parapara. Mr. Poynton said that the proposal was to erect works here for the making °Ljtl s] ' for wlu'eft the ironsand was sniuaDle. whilst the Parapara ore w.\s most suitable for pig iron. If the e'er trie smelting process had to b? installed here, it would be necessary to arrange for water-power rights, and he understood that the "WaiMra river could he harnespsd for 4000-h.p. Mr. Berry remarked that the company nad arranged for coal and limestone 'rights necessary for opera (ions at New Plymouth. There were seven coal sr-m* on the company's 3000 acres at Para-para._J-T{> also pointed out that the pro. moters were not "loafing on the boarl '' but had paid £llOO or" £I2OO for tlu> lease of the foreshore here, and its ironsand.

Mr. Connctt said that was all very well, but the fact that the foreshore wa's _lenscd prevented others from moving in the matter of utilising the ironsand. Mr. Poynton thought no on? eUe was Jkely to require the foreshore. The chairman, however, assured him that within a fortnight of the Board granting the previous extension of lease there was an application from another person for rights which had to be removed. Mr. "iToekrill asked what part of the bench the company had rights over. The chairman: Practically the whole of it. Mr. McCluggage said it seemed io him that the lioe.rd was being used as a en I spa w. and the real centiV of attentio?r"w"if "Parana ra. Mi- TVynlon'thanked the Board and withdrew. _The Hoard decided to def:T consideration ;iu(il (he February meeting.