BLUE SPUR CONSOLIDATED GOLD MINING COMPANY.

Otago Witness, Issue 1971, 14 November 1889, Page 11

BLUE SPUR CONSOLIDATED GOLD MINING COMPANY.

At the request of Mr David M'lntosh, we republish the following letber which appears in the Mining World and Engineering Record of September 21 :— Sm, — Aa'my name appears in your issue of the Bth June last in reference to the above company, please to allow me, tb make an explanation as to the part I have taken in this company and what I know of its workings. I was elected by ballot I by the local shareholders for 12 months, which election was duly confirmed by the London board, as I was informed by letter from the secretary. I served my time, but refused to stand for re-election, my reason for doing so being that I considered the mode of working was not the proper one to make the ground pay, and I told several of the local shareholders that I would not have any more to do with it. I out of office on the 30th April, 1889, and my successor was appointed. But yet the London officials, six weeks or more after I had been oiit of office in solemn conclave passed a resolution removing jine from an office (v*cfe resolution No. 2 which appears in your paper) I had ceased to hold by effluxiou of time some six weeks previously, and to my knowledge many more absurd things than this have been done in the London office. Sir W. Buller, the chairman of the company, stated to the meeting that he could not get monthly returns or reports from the local directors. Now, sir, allow me to inform you that reports and returns were forwarded regularly, every month during tha time I was in office, and that I have letters iv my possession sent from the London office acknowledging each month's return, and notwithstanding what Sir W. Buller says, I can assure every shareholder that these reports were sent by the San Francisco mail. Had that gentleman had a spark of gentlemauly feeling he could have told the shareholders in London the reason why the annual report and returns did not come to hand in time for the annual meeting. *He must have known that the steamer on which the returns were left Auckland at the proper date, but, when five days out, a fire was discovered on board, and the captain had to put back to Auckland, which caused a delay of about a fortnight in the delivery of the mail. I think that a paid servant, getting £500 a year, failed in doing hi 3 duty to the' shareholders by .keeping them in the dark aa to,the cause of .the delay, .and trying to throw the blame on those in the colony, who he well knows were not present to defend themselves. As to my experience in mining, I have been connected with the working of the Blue ! Spur Mines for the last quarter of a century, and have someknowledge of mining by hydraulic sluicing, underground work, ; quartz-crashing machines, and lifting by the " jet process." The latter is the process now. used by the Consolidated Company. I can fearlessly state to every shareholder in this company that unless the managing expenses are reduced by at least twothirds, dividends will be very few and far between, but with proper management and economy dividends can be obtained. I have had charge of more men working on the Blue Spur than are now working in the Consolidated Company's ground, and paid largo dividends at less than one-third of the present cost of management. But I .had no chairman to pay £500 a year for doing nothing, nor had I a brother-in-law to pitchfork into a billet as manager at a large salary^ for doing what ?— it, would.be hard for ,the shareholders, to discover. . The. .chief trouble in starting work by this company wag the want of working capital to properly open, the ground when water wasiplentiful, and runningta,.waste. In August,, fast year, I. suggested; through Sir Robert Stoat, a pcheme by wiioh ft

proper start,. couM.be made. That, was by cutting up a proper channel, which was understoodbbathey a the original shareholders . to be absolutely neces3ary, and -the main reason for the Biae Spur Companies approving of, the amalgamation. Now, sir, although I was receiving by every mail letters from the London office, not. a word was mentioned about my scheme; but in March last I saw, a printed copy of my suggestions in the hands of Sir Walter BullerV brother-in-law (Mr Howard Jackson), the newly appointed manager, who is supposed to be an expert : in mining matters. Ido not know what his qualifications are, but I understand he is a surveyor- by profession ; and although I have often spoken to that gentleman during the time I held office as a director, he never suggested an idea as to, my scheme, or any other scheme, for working, the company's ground, ;What is the reason ? Why, sir, the work has been going on in the old groove ever since Mr Jackson's appointment; but what can be expected ? . , I am a practical miner, having no claim to put K.C.M.G. or Bart, after, my name.; but, in conclusion, I can assure the. London shareholders that there is no necessity for the enormous expenses of management, and the employment of inexperienced managers and other officials as in thi3 company, and until . the expenses are reduced to a minimum the shareholders need not expect dividends. In fact, they will be like the proverbial ship that is always to arrive at Christmas, but never does.-— I am, &c, . David M'lntosh. Late local director of the Blue Spur and Gabriel's Gully Consolidated Gold Company, Limited. Witness to signature— James Mandle, J.P., A justice of the peace for the colony •of New Zealand. . Lawrence, Otago, N.Z , Bth August, 1889.