Remarkable Threat Of N.G.

Goldfields Ltd.

History of Co. Which Is Demanding Concessions

IT is evident, from a report of New Guinea Goldfields Ltd. annual meeting (published elsewhere) that the Co.’s chairman (Mr. J. P. Blaikie Webster) believes that the N.G. Administration is about to reduce the gold royalty; and presumably, to impose, in place of the royalty, a tax on income.

It would be a very unfortunate thing if the Administration were hypnotised by the howling of Mr. Blaikie Webster into doing anything so damaging to the Ter ritory; but, with politicians, all things are possible.

Before the N.G. Administration takes serious notice of Mr, Blaikie Webster, and his attempt to fasten upon the Ad ministration the blame for his Co.’s dis mal situation, it should examine the his tory of N.G.G.’s connection with Morobe, and the character and reputation of Mr.

Blaikie Webster.

It will be found that for years the humorists of Wau have been telling funny stories about the wasteful mudd ling of certain N.G.G. engineers: that it was the greedy land-grabbing of this con cern which got it into such a mess that it had to write down its huge capital of £4,472,000 by 75 per cent; and that Mr.

Blaikie Webster has on other occasions

made public statements blaming Govern ments and corporations for the difficulties of his mining organisations.

Mr. Blaikie Webster is demanding all sorts of things from the Government. He wants a reduction in gold royalty and import duties; a new r road, from the coast to the gbldfield; a relaxation in native labour regulations; and various other things. The suggestion is that, if the Government will not comply, N.G.G. will adopt a kind of “go slow” policy in New Guinea.

If the Administration has got this matter into correct focus, it will deal with this Mining Trust offshoot in the manner it deserves. It will remind N.G.G. that it ipduced large numbers of pioneer miners to part with their leases in re turn for N.G.G. £1 shares and then wrote down the £1 shares to 5/-. It will direct pointed attention to the fact that, although N.G.G. has been operating on this rich goldfield for at least seven years it has paid its shareholders only two dividends of 4 per cent. It will consider the further fact that N.G.G. has been squatting for years on some of the most promising country around Wau, and doing nothing with it.

As a matter of right and justice, the

Administration should consider whether the time has come to withdraw the pro tection it so generously gave to N.G.G., under which the latter was allowed to lump together all its expenditure, of whatever nature, as a set-off to its obliga tion to spend a certain amount each year upon each of its leases. Instead of being bluffed by the howling of Mr. Blaikie Webster, the Administration should make N.G.G. either develop its big tract of valuable country, or get out, and so give others a chance to win the gold.

In view of the history of N.G.G., there is only impudence in the threat of Mr.

Blaikie Webster, as reported in the Sydney Morning Herald : “Whilst still hopeful that these matters may be satis factorily adjusted, prudence demands that we should be in a position, if neces sary, to restrict production until the advent of more normal conditions.”

R.W.R.