I

2

"REPORT.

Petitionees pray that, in order to the working of a large area of auriferous ground which has, they allege, been proved payable at Eimu and its vicinity, the Humphrey's Hydraulic Sluicing Company's water-race be acquired by the Government. As an alternative, petitioners pray that the Government subsidise and otherwise assist private enterprise in the work of bringing water for mining purposes on to the alluvial ground at Eimu. The Goldfields and Mines Committee, having taken evidence and given due consideration to the prayer expressed in the petition of A. Clifton and others, have now the honour to report that they recommend that the petition be referred to the Government for favourable consideration. Parliament Buildings, 4th September, 1903. James Colvin, Chairman.

MINUTES OF EVIDENCE.

Wednesday, sth August, 1903. H. L. Michel, Mayor of Hokitika, examined. (No. 1.) 1. The Chairman.'] The Committee will be pleased to hear what you have to say in reference to this petition ?—Briefly, the position is this : The Back Creek or Seddon Terrace Goldfield was discovered in 1888, 1 think. It has been worked, as far as the miserable supply of water available would allow, ever since that date, and the value of the field has undoubtedly been proven. It is, in fact, considered by all those who ought to know to be quite equal to the Kumara Goldfield, which I think I am right in saying was the biggest alluvial goldfield discovered in the colony during the last thirty years. Various local bodies and the people of Westland have continuously urged the Government to procure a supply of water to be taken on the goldfield from Lake Kanieri, and we have always thought that such a work was of colonial importance. I think this is the only big goldfield ever discovered in the colony that has not received some special assistance from the Government. I speak subject to correction, but I think lam justified in saying that. Since the beginning of the year the miners have only had some seventy-two hours of water to work with, and in spite of that drawback those who have claims have been able to exist, and perhaps a little more, which proves the great value of the field. The number of men employed is small compared with what would be employed if a supply of water were obtained. In fact, it is estimated that there would be a large increase in the population of that district if a supply of water were brought on the field. We have never been able to understand in Westland why the Mines Department or the Government have not viewed more favourably the necessity for bringing in water on the field, but latterly we have come to the conclusion that the Mines Department have not been satisfied that the Lake Kanieri water was high enough. I think from what I have heard during the past few weeks that the Mines Department and the Premier are of that opinion. We are now here to say that another proposal has been made—namely, that the water should be brought from the Arahura Eiver or Humphrey's Gully, and in this connection I might say we are now in touch with a company or syndicate which we believe would bring water on to the field if reasonable assistance was given by the Government. At first we were in hopes that the Government or Mines Department would purchase the rights of the English company referred to, and bring the water on to the field as many have advocated that the water should belong to the Government, by whom it should be supplied to the miners. Failing that, we urge that a subsidy should be placed on the estimates to aid the bringingin of an adequate supply of water to the field. If a company were unable to raise the necessary capital of £50,000 or £60,000, then it would be like the offer made in connection with the Eoss Flat —the work would not be undertaken. If, on the other hand, a substantial sum of money were placed on the estimates, we are justified in believing that the company already referred to would bring the water on to the field even if it cost all £60.000. It 'is a mining venture, but I believe the prospects are so good that the water would be taken through if a subsidy were forthcoming. So far as Lake Kanieri is concerned, which we always believed was available for the field, it is 422 ft. above sea-level; but the water now suggested as being more suitable is from Humphrey's Gully or the Arahura Eiver, which is 530 ft. above sea-level, or 108 ft. greater altitude. I strongly urge the Government to look upon this project as of colonial importance as well as worthy of local consideration ; and I again emphasize the fact that it is the only goldfield, as far as I know, in the Colony of New Zealand which has not received some consideration at the hands of the Government. I shall only be too glad to answer any questions which you, sir, or any members of the Committee may deem it necessary to ask me. 2. Mr. Herries.] What do you estimate is the cost of the extension of Humphrey's Gully Waterrace ?—From £50,000 to £60,000. I will quote what Mr. Spencer, of Eeefton, writes. He is the responsible engineer of the Humphrey's Gully Company: "The undertaking of conveying the water to that creek will in any event prove a costly one, and it is possible that it may prove beyond this company's means, or those of any other local company, and it seems to us that the Government would have to subsidise the undertaking to a much larger extent than £15,000 if it is to be taken up as a private venture." I may say that I suggested £15,000. 3. That is the cost of the extension from Humphrey's Gully ?—Yes. 4. How much would it cost from Lake Kanieri—would that be less expensive?— The owners of the Kanieri Lake rights, Grimmond and party, have already spent about £3,000 ; but failed,