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of revenue is the gold duty. Only two local bodies in this district are receiving gold duty, so it is quite obvious he referred lo one nr both of them no doubt, both of them. 81. Tin "hairman.] The gold duty is lived by law, and I suppose the same law that fixed that amount could increase it, or decrease il, or take ii away altogether? 82. As was done, I believe, in the South Island.' Yes. Mr. MeVeagh: It was done, no doubt, in ihe Smith Island, but it was done at the request of the local bodies there. The movement was bitterly opposed by the representatives of the local bodies m this district. It was owing to the bitter and detei mined light put up by no less a person than ihe late Sir Alfred ('adman on behalf of the local bodies in the gold-mining districts in the North Island that the application of the Act of I S9O was limited, and since 1890 .her, has been no return .-, the attack. A new system of rating was devised for the South Island. The Chairman : Which was satisfactory to the mining districts in the South Island. Mr. MeVeagh: Yes: and the condition of mining in the South Island is altogether different. 4'h, companies engaged in mining in the North Island have to spend bug, sums of money to <>-et . d. 83. Mr. MeVeagh.] You have certain reasons to advocate wh\ the revenue of the local bodies should not be assailed by this Commission. I warn you to state .hem ~, the Commissioners? I would sa\ that .he gold duty was devised to provid, a means of finance to meet the peculiar conditions al.aching to the rapid growth of mining townships, so that the ordinary requirements provided by a municipality or other corporal ion might be promptly afforded to the population, for the reason that the value and stability of a mining township is usually of a very fluctuating nature. 84. Mining townships have their vicissitudes?- Yes. This duty has been current now for upwards of forty years in the .North Island, and has the sanction of that time, and has come to 1,.- looked upon as a certain revenue for the local body concerned. The Waihi Borough was formed with the knowledge and on .1,,- assurance that there would be a large revenu, from gold duty. 85. The Chairman.] What assurance?—The assurance of the existing law and custom. 86. Mr. Mitchelson.] Not a specific assurance from anybody? —No. 1 do not suggest anj body could get such an assurance. 87. You had to put up a fight for it/—The fight was opposition to the application to constitute the borough. It was seen at once by every person and body receiving the revenue what the result of the formation of the borough would Ik-. The residents of Waihi pursued the course laid down by law —they formulated their memorial and presented it to the Governor praying that the borough be constituted. There was some opposition, and ultimately the borough was constituted, by which means the county lost largely. 88. Mr. MeVeagh.] That is the assurance, a 1 all events, you formed the borough on?— Yes; on lhat assurance large commitments were and have been made from time to time. 89. Then, I think you have other reasons: you have your revenue actually hypothecated? Yes: the gold duty has been pledged as security for the waterworks loan during the currency of the loan. 90. The Chairman .-] It is pledged as a security, but that is only one security, the other being the rate which .he Government no doubt thought sufficient to produce the whole of the interest required? If lhat is so. they would hardly have insisted upon the hypothecation of the gold duty. 91. Why did they ask for a rate of ?— I think I have ahead)- said this rate was pledged to comply will, ihe legal machinery of the loan. 92. That machinery being for the safety of the Government?—No doubt, it is an additional safeguard: but I would point mi, that special legislation was passed to enable the gold duty to be pledged for this purpose.. We had no. a ghost of a show of getting the loan on the security of a rate. That ; s well known. Mr. MeVeagh: \ little while ago the market value of one mine actually fell £1.000,000 in a few days, and that affords a very striking illustration of the vicissitudes of a, mining population. !)•'!. Mr. MeVeagh.] You have some further reasons why your revenue should not Ik- interfered with?—] would point to ihe small value of ihe rating-power that is, to the smallness of the rateable value of the property in .he district. We have to consider the population. 94. But if tin- borough cl ses to give hug,- concessions to its population before they are in a position to pay for them.' Why should it not if the community has revenue from other sources.' 1 ask, why should it extracl from its ratepayers more than is necessary for the purpose? I put it as a mailer of logic and justice, and I ask why should the Borough Council do so when it has sufficient revenue accruing from other sources' 95. The Chairman .] That is scarcely the point. That revenue might cease?— Then they would have to increase their rale. .1//-. MeVeagh: In answer lo that. I would point out that if that revenue did cease there would 1,,- a corresponding Sight of the population from that place. There would be less to provide for. The Chairman: Suppose Parliament in its wisdom decided to treat the North Island as it did the South Island, and abolish the gold duty. Then you would have to find another source of revenue. .1//-. MeVeagh : That is a supposition to 1m- fought out on the floor of the House. Mr. Mitchelson: The same thing may happen '~ Waihi as has happened to Thames and other mining districts, where the value of gold obtained from the quartz has fallen off. Mr. MeVeagh: Thames is in the fortunate position of having other industries to rely on. First, it has the agricultural industry at its back. Second, there are large iron-foundries in the place, and the fishing industry of which we heard the other day. The Thames has not lieen dependent on the mining industry for the last twenty years. No doubt, during the last three years there has been a large output of gold from the Waiotahi Mine.

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