Having left Tarnagulla on the 1pm train for Dunolly, the Royal Commissioners did well to hear as much as they did (as evident in the following report) when they got to Dunolly. There would not have been much of the day left, after settling in, and going through the preliminaries. Even so, as the report indicates, several witnesses had to be asked to submit their testimony in writing and forwarded to the Commission. As will be seen, the witnesses in Dunolly addressed the same issues as those in Tarnagulla. However, the 'Express' account gives a wonderful description of how the Queen's Birthday (in particular) and other mines were established, operated, extended and profited. Some interesting points in the history of the Queen's Birthday mine are fascinating reading. I also valued the detailed description of how a 48 head stamper operated with copper plates and mercury. This description will follow in a later instalment. The first instalment follows. It is the longest, so settle in for a good read! The witnesses are Mt T. Barnett and Mr W.H. Hansford. Trevor Williams 13 October 2005 __________________________________________________________________________________________________________________ From the "Dunolly and Betbetshire Express", Friday March 21, 1890 THE GOLD-MINING COMMISSION IN DUNOLLY On Friday afternoon the Gold-Mining Commission sat in the Court House, under the presidency of the Hon. J. Bell, Minister of Defence, to take evidence on mining, and the best means to bring about an improvement and development of the industry. There was a large number of gentlemen connected with mining present, but the whole of the evidence could not be taken, and those who had been requested to attend, but who did not get an opportunity to give any evidence, were requested to furnish it in writing. The Chairman made exhaustive enquiries of the witnesses. Mr T. Barnett stated he had been connected with mining for 35 years in the district. He referred to the well-known Queen's Birthday reef, with the gold that had been obtained there, the features of the locality and other matters connected therewith, and the probability of good payable gold. He referred also to the operations of the North Birthday and the difficulties with the water. The Burnt Creek also he spoke of, and the auriferous nature of the land around Dunolly right on to Moliagul. The district was noted for its nuggets, and the famous "Welcome" nugget had been found at Moliagul in shallow ground, but little had been done in working these auriferous areas and the reefs, although one reef at Moliagul had given about 60oz to the ton. An immense area in the district had never been worked. The Government should subsidise for deep sinking. The prospecting parties had not had very good results. He did not think the present system of distributing the prospecting vote was desirable. Mining experts should be appointed and money should be granted in sufficient amount to thoroughly test a locality, but under strict supervision. He considered the mining boards should be abolished, as they were not doing useful work. A Central Board, with a different system of election, would be preferable, the Geological Surveyor and Secretary of Mines to be Government nominees. The timber for mines was 25 per cent more than some years ago, as it was being sent to other places. There was a waste of timber, but small timber should be allowed to be utilised for mining, under Government supervision. He would support a system of thinning. He would recommend land which was worked out being taken up in small areas for the cultivation of vines, &c. It was folly to leave ground if it could be utilised for the purposes of cultivation without injury to mining, and permission could be provided for the miner to go in. Some compensation should be given for improvements, which the Government should pay. Mr W.T. Hansford, J.P., Manager of the Queen's Birthday Company, Dunolly, gave the following evidence: - The discovery of the Queen's Birthday line of lode in 1867 was quite accidental - an old shaft sunk about 20 feet was utilised by Captain Baker to draw water from as a supply for a puddling machine. When the water ran out it was resolved to sink it a few feet deeper for a better supply - when quartz was struck, which showed excellent gold; this being followed developed into the splendid line of lode than known as the Goldsborough. The Goldsborough Company was formed and in a very short time distributed £20,950 sterling to the shareholders. The North Birthday Company formed to work a lease north also obtained some excellent returns. The Queen's Birthday Company was also formed to work a lease south adjoining, and after a very hard struggle gold was struck at the 300 feet level in a splendid lode which averaged then 5 feet wide with well defined walls, giving it the appearance of a main artery of quartz dividing the country. The yields were splendid, and in about three years 4 ½ tons of gold was obtained between the 300 and 600 feet levels. The amount of capital called up on each share was 22s 6d, and for which dividends were returned amounting to £34 13s 6d, or in a lump sum nearly a quarter of a million profits. Cross cutting. - The following will show the importance of cross cutting. The company purchased an adjoining lease with shaft sunk in it to about 300 feet for £232, a cross drive had been put in some 20 feet by the lease holders and then abandoned, which upon being extended a few feet by the Queen's Birthday the reef was struck which in a short time returned over £60,000 worth of gold. The gold in the Queen's Birthday Company continued down to the 600 feet level when suddenly the country was found to be greatly broken up, the lode continuing down but disturbed. No doubt but that excellent gold will continue to be found north and south, but in the opinion of mining experts it will be necessary to sink through the broken country to catch the 2nd formation before the lode underfoot can be expected to make again in its original form and richness. The bearings of the lode is 49 [?indistinct] degrees west of north-east of south. The average width of lode is about seven feet. The country is slate and sandstone, good standing ground. The water is mineralised and makes at the present depth of 850 feet 50 gallons a minute. Prospecting Vote. - My opinion in regard to the Prospecting Vote is that it might be much more an excellent aid to mining and the cause of new discoveries if instead of giving out a good many small sums to a great number of companies the amount voted was distributed amongst a few companies in the sundry districts, each on some celebrated line of lode or lead, that the probability of successful result would be greatly increased. The smaller amounts, say of from £150 to £300 would be useful if given to small parties of men to prospect entirely new ground where the expense of sinking would not be great as the discoveries would principally be surface discoveries that would lead to better things. Reserve Funds. - I have very strong views and feelings on this subject. I have not yet seen that it has been touched upon in the evidence given before the Commission, viz., that as the Legislature in the sundry Mining Acts have passed laws affecting almost every stage in mining, that if it is not considered as too much interfering with the liberty of the subject it would be a most beneficial thing for the colony if companies on payable gold were compelled by statute to pass to a reserve fund, say 10 per cent. of their profits; when the mine was considered worked out then in such case it could be divided amongst the share holders, and in other case when yields fell off and became non-paying, as they surely do at some period or other, then with such compulsory reserve, said funds would be available to sink or drive through broken country, and thus enable the company to get on to gold again. It would assuredly give solidity to mining and to a large extent save the great scramble after the Government Prospecting vote. I am impressed with this idea as I know too well the views of some directors when on payable stone that it is sure to last, and hence there is no provision made for the evil day, and the certain consequence follows, that many valuable properties are lost and the mining community suffers simply from the want of the necessary provision I advocate. Mining Boards - I do not think they have outlived their usefulness. As guardians of the auriferous areas they serve a good purpose, and act as a counterfoil to the earth hunger which animates so many. I believe their powers might be enlarged. I have never been able to know the reasons for the outcry . [damaged and unreadable]. One central board might be substituted . [damaged and unreadable] . with the same limited powers. I certainly do think that the Mining Department has ably discharged its functions amd with efficiency. Legislation on Mining Laws. - I am of opinion that the lamentable declension of mining is partly due to the uncertain title by which mining leases are held. Capitalists, if a good mine is opened up, are in dread of the jumper. I know we were threatened several times in the Queen's Birthday. Many an anxious hour it has cost me. Jumpers generally being men who have nothing to lose, but would lead any company into costly litigation and bring ruin in its train. In fact the Goldsborough was actually jumped and in litigation for, I think, nearly two years, and seriously injured the company. I would therefore advise better security of tenure with the view of protecting investors. Mining is also seriously affected by the severity of the Mining enactments which surround the industry on every side, making the capitalist afraid to risk investment in it. Mining is also handicapped by means of the tariff, which presses heavily on it, and for a revival I sincerely believe these matters require earnest looking into, and I, with the rest of the mining men, feel glad that the Royal Commission have it in hand. Metallurgical works and laboratory I am strongly in favour of and think it necessary that the State should offer some large bonus for the establishment of works where refractory ores could be treated on a large scale on commercial principles, an establishment capable of dealing with ores of all characters similar to the works in Germany. Worked out shallow diggings. - I think that worked out shallow and abandoned diggings should be thrown open for selection. It would tend to settle the mining population. I would suggest in areas not exceeding 4 acres, to be held under lease at a moderate rental, one acre to be cultivated or planted each year, and power of re-entry for mining on being paid fair compensation for surface damage. _______________________________________________________ Instalment two will follow tomorrow. tjw