Sunday 22 January 2023

Steel Horizons to Waihi - Paeroa Waihi railway Part I Decisions for a railway

photo courtesy Chris Ball


INTRODUCTION

First researched and written 2008 by Anne Stewart Ball, this in 2023 is a reviewed and updated version also by Anne Stewart Ball. For easier reading, have divided the article into two parts to put onto part of the past NZ history blog. The reference sources online have also been checked and updated. 

1. Steel Horizons to Waihi - Paeroa Waihi railway Part I Decisions for a railway

2. Steel Horizons to Waihi - Paeroa Waihi railway Part II Construction of railway 

As with any railway surveyed and constructed in the Auckland Province during the era 1870 – 1908, the time span began with initial calls for a railway to be built. Then, before construction actually began, were other factors involved that decided if in fact a railway route would go through an area and if so, the route.


Behind the scenes there were the surveys, decisions for which route and the endless gauge and gradient debate. Then there were the politics of who would construct and how with lastly the biggest questions of all - finance and economics. Where was the finance to come from to pay for construction? Would the route pay for itself once opened?


The idea of a Paeroa – Waihi Railway was commented on in 1889. 11 By the end of 1895, more than 22 years since first lobbied for, the Thames – Hamilton Railway, at long last, finally reached Paeroa. 2 2 


It was about this time when the Railway was opened at Paeroa, lobbying began in earnest. Groups such as the Northern Railway League, Auckland Chamber of Commerce, the Mining Syndicates and Companies, urged a railway route through the heavy gold producing areas to Waihi.


One Mining syndicate even went as far as having a “flying survey” made of a proposed route and an offer to Government to construct without financial aid, a 2 ft gauge tramway (Light railway based on the same as those becoming popular overseas.) 3 The Waihi Gold Mining Company, before construction had been completed by Government, contributed a loan, by way of debentures, of $75,000 to see the Railway finished to Waihi. 44

Government themselves had a preference for railways to be constructed and controlled by State Ownership, and with the reforms in Public Works implemented, applied the co-operative contracts principle and system in construction.55


By 1900 the Government were also considering construction of light 2ft gauge railways similar to the North- East Dundas line in Tasmania. It was felt these would be more cost effective, would open up scenery to tourists, provide facilities for the settlers, and further assist in developing resources.6 6 The Paeroa – Waihi Railway construction however, remained to the 3ft 6 in gauge.



THE FACTORS BEHIND THE SCENES


The major political, financial and economic factors involved in the eventual construction and completion of the Paeroa Waihi Railway were:

·   One of the most important Government reforms - the institution of the cooperative contract system on public works. Introduced by Richard John Seddon – Premier and Public Works Minister. 77 This had a huge impact on railway contracts and construction during the 1890s and early 1900s. The Paeroa Waihi Railway was one of the Railway Routes constructed using this principle and system.


·     During 1889, the first field test in the world of the Cassel Company’s MacArthur - Forrest cyanide process was made at the Crown battery, Karangahake.88 This technological method for gold extraction was said to be able to extract higher yields of gold from the quartz. This led to increased production at both Waihi and Karangahake through the experiment and development of this new technological and scientific process. It also led to refinements in the machinery and equipment utilized in addition to the traditional stampers and batteries. The Government bought the New Zealand rights to the cyanide process, and users had paid off the Government investment by 1905. 99


·   The 1890’s saw a shift in Mine ownership. It was during this period that London consortiums, syndicates and companies became interested in the purchase of New Zealand mines.1010 Particularly those of the Ohinemuri Goldfields. With these came large amounts of capital and plans for development. Amongst development plans was the call for a railway in order that machinery and supplies would reach the field at a cheaper rate. (in preference to carriage by bullock wagons or horse trams).1111


WHY A PAEROA WAIHI RAILWAY


The Ohinemuri Goldfields were declared open in 1875, the Ohinemuri block having been purchased for the Crown by James Mackay. 1212 The first miners staking their claims on this goldfield, hoping to make their fortunes, were soon disillusioned. Just as was found on the Thames Goldfield opened in 1867, it was hard rock mining that was required. 1313 This meant stamper batteries and access to large amounts of capital to develop the goldmines. This saw the development of large goldmines at Karangahake, Waihi and Waitekauri.


The development of the first cyanide process to extract higher yields of gold from the quartz bought with it the need for more plant, machinery, materials and processes to break up the hard rock and extract the gold.

  •  Waterpower to drive the stamper batteries.
  •  Timber to fuel the roasting kilns that softened the hard rock for gold   extraction in the process, sleepers for Tramways and timber supply for buildings.
  •  Rails for Tramways that the Mining Companies were constructing.
  •  Portland Cement to help make the water races, dams and other structures. In 1906 it was reported that Waihi Goldmining Company had used 3000 tons during the three years prior. 1414

There were few roads into the area and many routes were the bush tracks used firstly by Maori travellers and later the miners, bushmen and European settlers. These routes were developed to access the source of supply and little more than a narrow track necessitated often, the carting of quartz, timber and water by hand. The first roads in ran originally through the Rahu Valley, bypassing the Karangahake Gorge. A narrow road through the Gorge was opened in the early 1890s. 1515

Until the opening of the railway at Paeroa in 1895, steamers shipped much of the materials and equipment, needed by the mines, from elsewhere to Paeroa. The coal from Huntly arrived by a somewhat circuitous route and mixed transport of rail and steamer to Paeroa.

From Paeroa through to Waihi coaches, horses and carts bought people, coal, tramway rails, cement, mining machinery and equipment via the roads. Often this was a feat in itself to bring in the large equipment to the developing large mining batteries at Karangahake, Owharoa, Waikino, Waitekauri and Waihi.


Tramways were constructed to the mines to convey quartz, timber and water. 1616 These did not however alleviate the carting and transport costs of materials and people in to the area from elsewhere. Nor were road conditions very good either. (no tar seal or bitumen of 2008 - 2022). In Winter months it was said the roads became impassable through boggy and wet conditions and work at the mines “ground “to a standstill. 1717


A railway in from elsewhere, was seen as the answer, to overcome the problems and costs of transport. The lobbying for one began. It was known by the Mining Experts, Government and the Mining Syndicates and Companies that the mines of the Ohinemuri Goldfield would be working for a number of decades. Railways, were then, the current transport technology. There were various opinions and thoughts, current in that era, over who should be responsible for construction and ownership 18 18



THE RAILWAY ROUTE DECISION

Construction of this railway did not have the technology available that we have today in 2008. There were no computers, GPS or Google Earth to find the “best” route. Railway Maps were drawn by hand, showing gradient, curve and guage.

a. Mining Syndicate Route

From the talks begun in 1895, a proposal from the New Zealand Exploration Company to construct a steam tramway (light railway), came to fruition at the beginning of 1897. They had gone as far as engaging Mr. Ashley Hunter C.E. (of Stewart & Hunter) to complete a “flying survey”, the Company meeting the costs of this.1919


The proposed 2 ft gauge route of total about 20 miles starting from a junction at Paeroa was intended to follow the main road line as far as Mackaytown. Then on to the newly surveyed township of Paratu and crossing over the Ohinemuri River to Karangahake after passing the New Zealand Crown Mine battery. From here the line would run through a tunnel (to be made through the hill) On emerging from the tunnel on the eastern side it was proposed that the line would again cross the river and follow the southern bank up to site of the new battery now in course of construction at Waikino for a Waihi Company. Line then proposed to cross river once more and following the northern bank to the junction of present main road through Waitote, and then across country to Waihi township. It was proposed that a branch line just above Owharoa should run up the Waitekauri Valley to the township of Waitekauri. 20 20

The cost of the light railway was estimated to be £50,000 with the New Zealand Exploration Company prepared to meet the costs of construction. 2121



b. Government Survey and Decision

Shortly after the proposal of the New Zealand Exploration Company was announced, Government issued instructions for a line to be surveyed between Paeroa and Waihi. The survey was to include both options of a 2ft gauge and the usual (for NZ then) 3ft 6in railway guage. Gradient, curve and strictest economy were also the order of the day for this railway. 2222 (Factors that were major considerations in the construction of New Zealand Railways of those early days). 23

23



The Public Works Department instructed Mr. J.J. Hay, to carry out the Survey of the Paeroa - Waihi Railway. 23 23 The survey was also to take account of future line extension through to Tauranga (an East Coast route.) Government estimated the cost initially of the Paeroa – Waihi Railway to be £40,000. 2424


By the end of September 1897, it was action, with the reported that the Survey had commenced.25 25 Survey continued through into 1898 and showed that there would be little difficulty in construction of a 3ft. 6 in guage railway and little engineering difficulty except the Karangahake Gorge where a tunnel was considered the best method to deal with the sharp spur. 2626

In 1898 it was announced that a detailed survey of the Paeroa – Waihi Railway had been made. 2727 There was no branch line to Waitekauri, Priorities in the rest of New Zealand for Government saw the Paeroa – Waihi railway construction on hold until 1900.

After completion the 12 miles of track ran from Paeroa junction to Mackaytown crossing the Ohinemuri river via a bridge at Karangahake. Then through the hill via a tunnel across another railway bridge and running along the South side of the Ohinemuri River through Awaroa to Waikino where Waihi Gold Mining Company had built the Victoria Battery. From here the track crossed to the Northern side of the Ohinemuri River and cross country to Waihi.

The Map below, dated 1979, shows the completed route Paeroa Waihi Railway, including part of the East Coast line to Tauranga and part of the Thames- Waikato Railway through Paeroa. 2828


THE PEOPLE INVOLVED THE “PLAYERS”

Railways reaching completion are an outcome of the people involved. The following were involved with the Paeroa – Waihi Railway by way of position or occupation.

Some were very supportive in seeing a railway finally through to Waihi.

a. Government


The era of the Paeroa – Waihi Railway construction was during what was known as the Liberal Government. Led by the energetic and forthright Richard John Seddon, this era of Government was a period when what could be said to be social legislation was introduced.29 29    This legislation – the Industrial, Conciliation & Arbitration Act, Accident Compensation Act, Old Age Pensions Act, Railway Superannuation Fund Act and co-operative contract system on Public Works was to change how things were done in New Zealand 3030   It was an era when roads, railways and tramway construction, steel bridges and the new coming technology of “hydro – electricity“ continued to be called for throughout New Zealand. This era had a belief that construction and ownership of public infrastructures should be Government responsibility and not a private company 3131

b. MP'S 

Hon Richard John Seddon Premier of New Zealand for 13 years, it is said his most important reform was the institution of the cooperative contract system on public works. As Minister of Public Works 1891 – March 1896, he inaugurated a system of constructing public works on the co-operative principle, giving the work direct to the workmen and dispensing altogether with the middlemen. (The previous system of contracts and sub-contracts)32 32

The cooperative contract system was applied to the Paeroa Waihi Railway construction and promoted as a working example. 33 33 Seddon as premier, was present at both the turning of the first sod and six years later at the opening of the Paeroa – Waihi Railway (a few months before he died in 1906) 3434 , 3535  

Hon. William Hall-Jones Minister for Public Works 1896 -1908. Also known for the introduction of the Old Age Pensions Act,36 36 Hall- Jones was Minister for Public Works throughout the survey, construction and completion of the Paeroa Waihi Railway. He was also a keen supporter of Seddon’s reform of the cooperative contract system on Public Works 3737  

Hon Sir Joseph George Ward Minister of Railways 1900 1906. It was Ward that turned the first sod of the Paeroa – Waihi Railway, as newly appointed Minister of Railways.3838   Ward’s term as Minister of Railways saw a reduction in passenger fares. It was also Ward that introduced the Railway Superannuation Fund Act. Deemed to be the rate- of pay at which the railway staff member is employed but not including allowances or payment for overtime, and contributions to be deducted on that basis.39 39

 Hon Alfred Jerome Cadman Minister of Railways 1895 1899, until he resigned as Minister of Railways due to ill health.4040 Cadman was Minister of Railways during the Government Survey of the proposed Paeroa Waihi Railway Route. A sawmiller he was elected to the Coromandel Seat in 1881, Cadman was also Minister of Mines 1893 He consolidated the Mining Act in 1898 and was responsible for buying and making available a patented gold extraction process that it was hoped would boost the industry by increasing smaller claims profitability. During Cadman’s term as Minister of Railways work on replacement locomotives and neglected maintenance work was carried out.4141  It has been shown in extensive research undertaken that, including his term on the Auckland Provincial Council, Cadman was long, a passionate supporter of Auckland Provincial Railway routes. (this article author’s research notes)

                   

                                                                        THE SEDDON MINISTRY, 1903.

NEW ZEALAND MAIL, ISSUE 1629, 20 MAY 1903, PAGE 36 (SUPPLEMENT)Courtesy papers past National Library NZ


c. Public Works Department


This department was responsible for the Survey and Construction of railways to completion when the railway was then handed over to the Railways Department for running and maintenance. 4242

The following chart has been compiled by author of this article to show the reporting and management relationships Paeroa – Waihi Railway Survey & Construction                        


Mr. William Henry Hales Engineer, Roading Contractor,

Engineer-in-Chief. Public Works Office, Wellington. Hales oversaw the tendering of contracts for the Ohinemuri Railway Bridges and the supplies to construct the Railway. Born in 1830 in New Brunswick Hales, joined the Public Works Department, on its establishment in 1871, In 1892 Hales became Engineer-in-Chief, and several months later, was appointed Marine Engineer for the Colony.43 43

Mr. Shaw - Engineer in Charge of Karangahake Railway Tunnel Excavations.

Unfortunately during construction of this tunnel one of Mr. Shaw’s son’s was badly injured in a blasting accident and another lost his life in a tunnel wall collapse.4444

Mr. J.J. Hay Public Works Department Surveyor of Railway Route Paeroa Waihi.

Resident Engineer on the section Pahiatua –Woodville Railway.45 45


d. Councils and Boroughs

  

Ohinemuri County Council

Mr. Hugh Poland was member including Chairman for a term of the Ohinemuri County Council 1898 – 1908. This was during the survey and construction of the Paeroa Waihi Railway. In 1905 Poland was elected to parliament where he continued as MP for the Ohinemuri Electorate until 1925. During his term in parliament, Poland sought to gain legislation to protect the miners a pension to stand them in stead when overcome by phthisis. Poland also was also successful in achieving the first section of the Waihi-Tauranga railway line to be initiated. 4646

 Waihi Borough

In 1902 Waihi was gazetted a borough. The first mayor was Mr. W.H. Phillips who held this position 1902 -1904. Mr. Thomas Gilmour, mayor 1904-1908. Both were to see the opening of the Paeroa – Waihi Railway.

Gilmour took office as Mayor just after retirement from the position of manager, Waihi Gold Mining Company. He was the first president of the Waihi School of Mines, established in 1897. 4747 Gilmour’s mayoral term also saw the Waihi Hospital established, an important amenity for a newly formed town based on mining activity.

Mr Duncan William McArthur Surveyor, Engineer

Born at Oban, Scotland in 1848, McArthur saw experience with South Island railways, including with Brogden & Sons. McArthur was appointed engineer to the Ohinemuri County in 1895. Appointed Borough Engineer to Waihi in August,1903. 4848 Remaining in this position until 1912, he saw the construction of the Paeroa – Waihi Railway and its opening in 1905.


e. The Mining Companies 

Waihi Gold Mining Company

The successful Waihi Gold Mining Company was the outcome of a £3000 purchase of the Martha Mine and Battery in 1890 by Thomas Henry Russell (son of Thomas Russell C.M.G., an enterprising and speculative businessman of many dealings in the Auckland Province.) 4949 With shareholders and a Board of Directors based in London ( as many of the mining syndicates then were), the company put its capital and income into the development of the Martha Mine and Victoria Battery, Hora Hora power station and the water races, dams, tramways and batteries that accompanied the mining activities. The Company was supportive of a railway to Waihi, to have cheaper transport and more suitable conveyance of people, supplies and machinery. It was the Waihi Gold Mining Company that by way of debentures under Government legislation, loaned £75000 to have the railway completed. 5050


While the Board of Waihi Goldmining Company attended to the business of making money and raising capital, at the “mining face “of Waihi were many, expert in their field. Those experienced in organising the running of a mine operation. Others experienced in and key to the development of allied resources of batteries, tramways, water races and electricity to extract the gold from the ground.

Mr. Hubert Percy Barry Superintendent Waihi Gold Mining Company

Arriving from South Africa, Mr. Barry, called for by Thomas Henry Russell, held the role of Superintendent from 1890 until 1913. Drawing together the many workings of the mine Barry was to initiate and innovate many of the developments. 5151 Barry was also Vice President of the Waihi School of Mines.

 

Mr. Henry (Harry) Roche Engineer, Surveyor

Born at Cork, Ireland, in 1856, Roche became Engineer to the Waihi Gold Mining Company in 1896, a position held for eighteen years until 1914. He carried out all classes of engineering works, including the design and construction of the Horahora hydro-electric power station. 5252 Roche worked for Stewart & Hunter as Resident Engineer on railway survey, location and construction of the Rotorua Railway 1881 –1886 and saw the Tarawera Eruption first hand giving later an eyewitness account from the Puna Atua Hoe Survey Camp. Roche was also in the first rescue parties to Te Wairoa. 5353

The New Zealand Exploration Company

The New Zealand Exploration Company had its origins in the Anglo Continental Gold Syndicate, also a London based Company. 5454 The New Zealand Exploration Company had mining interests in three areas – Auckland, West Coast and Otago.


Those of the Auckland area were termed the Auckland Goldfields and included mining interests in Te Aroha, Thames, Karangahake, Owharoa, Waitekauri, Waihi and Tairua.


Mr. R.B. Hunt – General Manager NZ Exploration Company of the area designated the Auckland Goldfields. Hunt arrived in New Zealand in April 1896. 5555

 Acknowledgements

National Library of New Zealand, 

Alexander Turnbull Library Archives NZ

Auckland War Memorial Museum & Auckland Institute (the library) 

MOTAT (Museum of Transport & Technology – Walsh Memorial Library ) NZ Institute Surveyors

NZETC

Paeroa & Districts Museum Waihi Museum

Waihi Public Library

 

Reference Sources

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2 Vennell C.W. & More D, Land of the Three Rivers- Centennial History of Piako County, Wilson & Horton, Auckland N.Z., 1976 opening of railway at Paeroa.

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