NEGLIGENCE OF MINING COMPANY DIRECTORS.

THE GUIDING STAB COMPANY'S LBASK, MOKIHINUI. The Dunedin shareholders of the Guiding Star Company, from which great things were expected about a couple of years since, will not be pleased to learn that ther« is a prospect of the company's lease being cancelled. From the Westport papers we learn that application was made to the warden on the Bth inst., by Charles Lempferfc, for the cancellation of the lease. The applicant stated that he made his application on the ground that no work had been done for two years, and no rent paid for over 12 months. Further, that he had arranged a party to work the lease at once on cancellation being obtained. In cross-examination and re-examina-tion, he further said that if he got the lease his object was to apply for more ground and form a powerful company, and that the Guiding Star mine was the key of the whole country. The legal manager of the company (Zoffany C. Home) said, that the directors had not met since the notioe of cancellation was served on the company, but, that he had brought the notice before one or two of them individually. The directors as a body had not instructed him to oppose the application, but one of them did, and that another had said the best thing to be done would be to allow the lease to be cancelled and wind the thing up. Mr Haselden, the solicitor who appeared for the legal manager, then said that as a shareholder in the company, as sure as he stood there, he would bring the directors to account for their conduct. He could only see a pecuniary advantage to them. He would get to the bottom of it and find out what interest they had in the new compauy. He was not going to be fooled by being retained and then have his mouth closed by being told he was acting- against the advice of Mr So-and-So and Mr So-and-So. After further examination of the legal manager, tbe Warden said he would lay the whole of the facts before the Government with his reoommendatitoß, Ha Btated that he thought he

would have to recommend cancellation, as they had cancelled for less. We are informed by a Dunedin shareholder that it is asserted on reliable authority that there is sufficient payable quartz in sight in the Maori Creek portion of the Guiding Star ground to keep a 10-head battery going for six years, and that the reef is lift thick. This is on the northern side of the range, and before it could be worked a low-level tunnel would require to be driven from the position where quartz was formerly taken out. Negotiations with other I companies took place in 1885 with the view j of having this tunnel put through, and the Minister of Mines (Mr Larnach) promised a subsidy of £500 towards the work ; but difficulties seem to have cropped up, and matters have been left in abeyance, with the result above Btated. To show the supinenesa of shareholders themselves, it is worth^mentioning that the following circular, Bent out by a Dunedin shareholder last month, elicited* only three replies, although a large number of shares are held in Dunedin :— Dear Sir, — It 1b now over two years since the Guiding Star Company ceased working the mine, and from present Appearances it is likely to be as long again, or longer, before anything is done. It is certainly time that some action were taken either to resume operations or to wind up the company. As a shareholder in the Guiding Star I wish to suggest the following action:— •• 'J hat an extraordinary general meeting be called to consider what iB to be done to further the company's interests." In order to facilitate matters, be good enough to send me your proxy ; or, should you prefer to be relieved of any prospective liability, I shall be willing to take a transfer of your shares (scrip* attached) subject to ail calls being paid up to date, and guarantee to take you off the register. Please advise meat once. THE HARBOUR CONE GOLD MINE. Some six weeks since we published a report of the proceedings taken by a number of gentlemen interested in the development of the gold mine at the Harbour Cone. It will be recollected that Professor Ulrich and other experts gave very favourable opinions as to the prospects of the mine ; and taking this into consideration, Messrs Basan and Shelmerdine (the prospectors ,who have devoted both time and money towards the development of the work) determined to procure the approval of gentlemen taking an interest in gold mining. For this purpose on Thursday they invited a numerous company to meet them at the mine, and amongst those present were Messrs Oddie (president School of Mines, Ballarat), Street, Allen, Sinclair, Clarke, Browning, Murray, Professor Ulrich, Captain Watson, and others. A full inspection of the mine was made, and favourable expressions given as to its prospects. The visitors were entertained at lunch by the prospectors, and some very laudatory remarks were passed as to the future of the mine. We understand that Messrs Shelmerdine and Basan intend sending some tons of the stone to Ballarat by the next outgoing steamer for the purpose of having it thoroughly tested. MISCELLANEOUS. A correspondent, signing himself "Miner of 40 years' experience," and writing from the Shotover, gives a rather gloomy account of mining prospects in that neighbourhood. He asserts that the field is completely worked out, and that genuine mining is consequently very dull, while a large number of bogus claims are being taken up daily for the purpose of gulling the public. We trust our correspondent is looking too much on the black side of the picture. A Hokitika telegram reports that the Mont dOr washed up 2500z gold, valued at £1000. A dividend of Is has been declared. The mine continues looking well. v The gold escort arrived in Dunedin by the 7.15 p.m train on Saturday, the 19th inst., in charge of Sergeant-major Bevin and bank officers Boyd and Haworth, and brought down eight boxes and one bag of gold value £26,000. ' The Western Star reports that Mr G. Douglass, a well-known Longwood digger, who left Riverton about three months ago, intending to try his fortune at the Teetulpa diggings, South Australia, returned on Monday. On reaching Adelaide, men were returning from the field in hundreds, all bearing the same tale— that while there was room for a few hundreds of men, who were getting a little gold, there was no ground for the 6000 or 7000 men who had been tempted to visit the field from all parts of the colonies on account of the glowing reports published regarding the auriferous nature of the district. He consequently decided not to visit these diggings. Several small rushes broke out about this time within a radius of 17 miles of Adelaide, all on private property, and most of these he visited, but they turned out failures. Even where gold was found, it was in extremely small quantities, and a dozen holes might be ( sunk without the " colour * being obtained. Water was very scarce, and the charge made for working on the private property was 2s 6d per man per week, but very few realised that sum. Every vessel that left Adelaide took away hundreds of returning diggers, all disgusted at the poverty of the Teetulpa and other South Australian fields. The Board of Inquiry appointed by the Victorian Government regarding the mistake made in the diamond drill boring operations at Hepburn estate has concluded its investigation. The fault lay in mistaking pulverised sandstone for drift, and a sample of some material below it for genuine washdirt. The board has relieved Mr H. Harrison, who was foreman of the drill and is now in the employment of the Tasmanian Government, of even the slightest suspicion of dishonesty or impropriety in the matter, and he leaves without any stain on his character or reputation. Nothing has transpired which, in the board's opinion, is calculated to shake public confidence in the utility of the diamond drill. INTERCOLONIAL. Of the £80,000 voted for prospecting iv Victoria. £37,000 still remains unexpended. The rest has gone in diamond drills and prospecting. News from Teetulpa (S.A.), dated February 25, states that " there have been grand washings from a claim nearly opposite the post office. One load from which 14oz were fossicked gave in washing another half-ounce piece and about Boz of small gold." In addition to this a 13oz nugget, was found on the 24th in Brady's gully. At Goslin's gully a nugget weighing 4Joz was found, while M'Bride and party took 3§oz of gold from 12 buckets of stuff. The week's run at the Broken Hill works is reported (says the Silver Age of February 26) to have been equal to four days 14 hours with four furnaces. Ore treated, 831 tons, yielding 95 ton 3 bullion, containing 25,7470z silver. Bullion despatched, 86J tons, of the average value of £80 per ton. The Great Eastern mine, at Gympie, continues to give phenomenal yield". Two washings up for three weeks' crushing at the end of February yielded 27190z of gold. The Charters Towers dividends and calls during January were almost equal — dividends, £11,690; calls, £14,683 16i Bd. The dividends, however, should really have been more than this, as the Day Dawn and Wyftdham, atfw aa

English company, pays its dividends at Home. Tho amount paid for December was £2000. The crushings for January were:— For 7367t0ns 16cwt stone, 13,1960z sdwt 21gr gold ; the returns for two companies — the Alabama andNos. 1 and 2 Queen — being refused. The Charters Towers correspondent of the Queeuslander, writing on the 13th February, says:— The principal event of the week has been the returns from the Papuan Block, which from 196 tons gare the grand return of 9050z smelted gold, or an average of 4oz 12dwt per ton, the gold being of exceptional value — £3 lls per ounce — the dividend declared being £1200. The Hughenden Ensign of 3rd February says that the returns from the Croydon reefs are surpassing all expectations. Forty -two tons just crushed from the Posthole claim on the Sovereign line of reef yielded 13oz lldwt to the ton. Two thousand five hundred people are on the field, and there is only one ton of flour. It is impossible to get up supplies in the present state of the roads, and famine is imminent. The Harp of Erin crushing of 90 tons yielded at the rate of 6£oz per ton. There are now only four European alluvial miners at the Palmer, Northern Territory. There are, however, 87 men engaged in quartz mining, 'whose average earnings last year was £106. There are 600 Chinese on the field. FOREIGN. In an article pointing out the inadvisability of over-capitaliiring in floating mining companies, an American contemporary says : — The owners of some of the most valuable mines in the country have shown a commendable modesty in this respect. The Calumet and Hecla Company, which has disbursed nearly 28,000,000d0l of net earnings to its shareholders, has a capital of but 2,500,000d01, divided into 100,000 shares,. of the par value of 25d0l each, but now selling at the rate of 229d0l per share. The Richmond Consolidated Silver Mining Company of Nevada, incorporated with 54,000 shares, of the par value of 25d0l each, making a capital stock of 1,350,000d01, has to date disbursed in dividends nearly 4,500,000<101. The capital stock of the Idaho Gold Mining Company at Grass Valley, California, consists of 3100 shares, of the par value of lOOdol each. This mine has netted the owners over 4,000,000d01. The Sierra Buttes, Plymouth Consolidated and numerous other California gold mines might be cited as additional examples of large merit, coupled with comparatively small amounts of capital stock. The Bonanza companies on the Comstock lode, who, when their mines were making a large production, greatly increased the number and value of their shares, have, with their late shrinkage of production, found it expedient to restore their capital stock to its original status, which will probably not again be disturbed, even though the mines themselves become as prosperous as they were when the above change was made. Ah the business of mining has come to largely conform to the more rigid rules that govern in commercial transactions, so should those having its conduct in charge be careful to avoid everything having the semblance of extravagance or speculation. Hence the propriety of mining companies reasonably restricting the number and nominal value of the shares constituting their capital stock, The working miners in a Scotch mine restricted the output by refusing to work more than five days a week, whereupon they were taken before a magistrate for breach of contract, and damages were assessed against them at the rate of 5s a day and the expenses of the court. This decision, the first of its kind in Scotland, is said to affect 6000 men. Colonial mines are by no means receiving the undivided attention of the British capitalist. A Californian paper complains bitterly of the American capitalist allowing all the good things to be monopolized by foreigners. A correspondent of another paper writes: — What is the matter with California mining capitalists ? It has almost passed into a proverb here that it is no use to get an American to look at a mine. The Bnglibh are the owner? now of many of the best miues of this State, and are steadily buying. An English company recently purchased the Alaska mine at Pike City : another company is now laying plans to open the Gibsonville channel, and so it goes. Look at the names of the incorporates of the Phoenix ; not a name that is not German. Why is this? With millions of dollars of idle capital, why do the business men of America stand back and allow foreigners to reap the most golden harvest that will be gathered from our mines ? I confers I don't understand it. I know of men who have roamed this State all over in search of mines, yet have never made a purchase, but some Englishman comes after and gathers them in. These facts are no credit to our moneyed men.