During the worst years of the Depression the large number of companies
producing coarse aggregate or blue metal for concrete, were cutting prices to
dangerous levels to obtain the limited resources of work.
A Mr Harold Robinson negotiated with these companies to form a consortium
public company to be known as Blue Metal Industries or “B. M. I”. Three companies
remained outside the consortium, they were: Emu & Prospect; Farley &
Lewis and Styles Blue Metal. They had however limited resources and were happy
to remain ‘under the umbrella’ of B.M.I.
All known natural deposits of blue metal in the economic range of the Sydney
Market were :-
· The Nepean river
gravel
· The South Coast
down to Kiama
· Prospect Hill
near Parramatta
all of which were controlled by B.M.I.
Certified Concrete, a subsidiary of Melocco Bros and Ready Mixed Concrete,
were the largest customers of B.M. I. until the early fifties when Pioneer Concrete
became a significant consumer. Also in the early fifties the O‘Niel family from
Perth opened up an old deposit of Basalt at St. Marys, however, initially the
material produced was soft and generally unsatisfactory. The company Australian
Blue Metal did improve its product as the quarry face progressed.
After serving an apprenticeship as a fitter and turner, John the son of
Peter Melocco joined the company in 1947. As a school boy John had worked at
Melocco Bros during school holidays in various capacities and had acquired a
knowledge and enthusiasm for the company and its people. He studied the magazines
and literature that periodically came from America and could see great possibilities
in ready mixed concrete and blue metal and sand production.
In spite of assurances that no deposits remained unclaimed by B.M.I., John undertook
a systematic research of possible aggregate deposits within the Sydney area.
The South Coast had possibilities but transport would have to
be done by ship which involved huge capital outlay. Large deposits of gravel
occurred underground at Castlereagh near Penrith, but clay impurities were
difficult if not impossible to remove A very large deposit at Castlereagh
on the river itself known as Shaw’s Island was investigated with remarkable
results.
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Shaw's
Island 1957
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Shaw’s
Island, approximately 80 acres, adjoined the west bank of the river for approximately
¾ of a mile. Two freehold properties fronted onto the island, the largest
was occupied by a small timber house occupied by Mr Perkins. John and his
Father Peter, called on Mr Perkins who told the following story. “The property
was now owned jointly by Mr Stewart and Mr Ferguson, both of whom were Directors
of B.M.I. Also a long standing dispute with the state government for the ownership
of shaw's s Island was unresolved and subject to litigation”. Although the
position appeared impossible Peter asked Mr Perkins to pass on our interest
in the property to the owners.
This is when one of the strangest coincidences occurred. The following week
at a general meeting of B.M.I. a very bitter disagreement took place between
both Mr Stewart and Mr Ferguson and the rest of the Board members of B.M.I.
including Mr Robinson. Stewart and Ferguson resigned on the spot and severed
all connection with B .M. I., which left Shaw’ s Island free for the taking.
Mr Douglas Stewart
was Chairman of Sydney Steel and was well known to Peter Melocco. Agreement
was reached and the property sold for $30,000 to Melocco Bros. $4,000 deposit
and the balance on settlement with the dispute with the State Government.
This was in 1951, settlement did not occur until 1958. Shortly after the adjoining
property was purchased by the newly formed Yarramundi Properties Pty Ltd for
$9,000 which gave a complete frontage to Shaw’s Island.
The State government
was keen to help Meloccos establish a sand and gravel crushing plant in competition
with what they knew was a virtual monopoly, however they would not concede
ownership of Shaw’ s Island by our company The original survey was drawn up
by a French surveyor around 1830, whose description of the boundaries of the
property were very vague. Any litigation could have cost more than the properties
were worth.
Finally John suggested
a compromise, that if Meloccos granted a large area of the “Perkins”
property up to Yarramundi Road as a Public Reserve and Meloccos be granted
a permissive occupancy to extract gravel and sand fromShaw’s Island,
we would concede rights of ownership over Shaw’s Island.This was agreed
in 1958.
The Commomwealth
Bank granted a loan of $100,000 to build a crushing and screening plant, build
a bridge over the river and acquire a further property on the east bank leading
to Smith Road and the highway to Sydney. A contract was let to Humphrey’s
and Glasgow to build a plant designed by Mr Max Lawrence of Darling Point.
Sub-contracts were let to excavate the raw material and to transport the finished
product to Sydney.
When the construction of the plant was 50% completed, legal action was taken
by Farley & Lewis against the government, who disputed their right or
power to grant “Permissive Occupancies” throughout the state. Parliament immediately
forced legislation through the house to rectify the position and we were able
to proceed with construction of the crushing plant which was completed in
May 1959.
Although
Meloccos operated the crushing plant for only ten months a gross operating profit
was made to pay off the whole of the cost of the loan. An average of one thousand
five hundred tons ware produced on a six hour day. Yarramundi Properties Pty
Ltd was valued at 1,OOO,OOO pounds by B.M.I. during take-over calculations
in 1961.
B.M.I. operated
the plant for a very short time and the plant was finally dismantled. Most
of Shaw’s Island remains in a similar state to when John first found it. Only
the bridge remains to this day.
