A STUMBLING BLOCK TO MINING INVESTMENTS.

Auckland Star, Volume XXVI, Issue 133, 5 June 1895, Page 5

A STUMBLING BLOCK TO MINING INVESTMENTS.

LA^GE CAPITAL-: LOC3KE D UP.

(fbOm oub special cobrespondent. )'

y*y*-~-~~- London, April 27. At fche present juncture, when English capitalists'' are diverting . their, attention from' South African and Western Australian mining investments, and are so favourable towards New Zealand mining ventures, the colony is particularly fortunate in the presence in London of the Hon. J. "6. Colonial Treasurer. Auriferous areas which in former .years yielded large dividends, but of late have been neglected through lack of the necessary capital to provoke machinery or to develop the lower levels,' are now receiving attention among* investors in London. Contemporaneously with the/ advent of Mr. Ward there is quite a revival in . the demand lor shares in New Zealand mines, particularly in th6*Thames and Coromandel districts. Very for.tunatej too, tor the colony is tho hearty a'ud energetic cooperation between the AgenbrGoueral, Sir Westby Perceval, and leading representatives of New Zealand mining interests, who are taking advantage of the favourable turn of affairs in order to secure the confidence of investors, and. to divert capital to the colony y for the 'effective development of your mineral resources. i Among those who are thus exerting themselves wi.fcli eucli marked success is Mr J. H. Withoford (of Auckland), who has already won the confidence of many leading men in the city whose names are aa towers. of strength in the mining world. Among many, other ways in which he has benefited New Zealand, he has been endeavouring, with every prospect of success, to remove certain obstacles in tho shape of technical legal forms, which have tho effect of restricting investment by London capitalists and of hindering the transfer of mining properties and the expenditure in their development of money raised here. Thus, in the case of the transfer of Scotty's, a London, lawyer pointed out that under the Mining Act the transfer had to be registered within 30 days in order to render it valid, whereas it takes 40 days for a mail from 'London to reach New Zealand. In order io endeavour to overcome this difficulty, Mr Withaford waited on the Agent-General, Sir Westby Perceval, and pointed out that under the Mining Act the wardens possess discretionary power to ad just any merely tachnicaldiifficulty, the Warden's Courts being courts of equity, ,in which matters of equal importance to the one under notice are frequently disposed of. But in the case of Scotby'a the lawyers in London advised the directors nob to expend any money until the transfer had beau duly registered, inasmuch as that in the evont. of the mine being'lost through non-compliance with the regulations, the directors would be liable to be called upon to refund to, the shareholders any money spent on the property prior to itß legal transfer. Thus the directors were absolutely precluded from expending in the development of the mine any part of the subscribed capital lying to the credit of the- 'Company in London, until they were absolutely assured of the validity of the title, Mr Withoford informed Sir Weßbby Perceval thab there were largo sums of money deposited in London banks which might be at once sent out to New Zealand and afford employment to many miners now oub of employment, and he asked the Agent-General, if his .department could aid in solving the difficulty by cabling to the Minister of Mines at Wellington urging him to facilitate the completion of transfers in order,, ,Ao-i render.-? tho subscribed capital available for nsein starting work on the mine. Sir Westby Perceval expressed sympathy with tho request, and mosb courteously'oUerod to do anything in his power to remove any hindrances such as those described. It was therefore arranged that the transfers should be lodged in tho Agtfht-Genoral's office as a guarantee and security for the- completion of the business, and thab a cable message should be despatched to the Minister of Minos in New Zealand asking that necessary stepa should bo taken to assure the property on that side. A reply was received by: cable from tbe Premier, Mr Seddon, stating that there was no record of any other transfer or heir against the property, bub the Government declined to undertake any responsibility in tho matter, which, it may bo remarked, they were not asked to do. So far the question remains in statu quo, and the money is still lying idle in the London banks until the Jaggernaub of dopartraenb rod tapo and sealing wax has lumbered its way from one side of the globe to the other. Besides the injury done to the colony itself by the hinderances of the use of capital in working tho mines, an actual injustice in done to fiho shareholders, who recoive no interest on money deposited in the banks under those conditions. >Mr Witheford rightly points oub that the removal of the existing technical difficulties in the way of transfers of mining property between the colony and London, would stimulate investments in many other directions. At present the attention of investors is turned to Now Zealand, and many important enterprises have already been launched or are on the lapis. On the principle that wherever a man's treasure is there will his heart be also, the sympathy of English mining investors would be extended to many other matters affecting the colony's welfare. Mr Witheford says that, although tho Kapanga has" nob yeb yielded any interest on the capital invested by the English shareholders, their interest in it has rather increased than abated, and thoir confidence in its ultimate success is un-' diminished. In lnct, that:interest, led to the purchase of Biagrove's Freehold, and. tho acquirement of the old Union Beach, now the Hauraki, as well as to the invobbmenb in Scotty's, the North Kapanga, the Royal Oak, to the constitution of a work-, ing capital of £25,000 for, the former,'and an additional capital of £25,000 for the development of Blagroye's, so that, in tha course of a few years, the Auckland people : may rejoice: at-the spectacle of a line of smoke stacks extending from the Kapanga mine down to tho Beach. '„ After '""a interview with the AgentGeneral, Mr Witheford waited upon, the Hon. J. G. VVard shortly after bis arrival, i and pointed out the necessity of removing any hindrances to tho investment of English capital in New Zealand mines at this juncture, when the colony's resources srarid bo high in the opinion of leading London capitalists. Bub, he pointed out, the interest of mining investors is continually shifting to different localities, now to South Africa, next to South America or Western Australia. At present, however, New Zealand, and particularly Auckland, mining investments are uppermost) in the minda of capitalist?, and therefore the necessity for taking full advantage of this favourable turn of affairs, and floating in the full tide of prosperity. v It is a case, in tact, to use a homely phrase, of "striking while tho iron is hob." Recenb experiences have shown Mr Witheford that, large capital can ba raised in London in a single day for any bona fide enterprise. He 'pointed out that the quartz reefs of Coromandel and the Thames can be' more cheaply worked than the minos in South Africa, Colorado, India, or Western Australia, aa they were situated near the sea coast, with easy and economical means of transit, and had an abundance of water supply for motive power for machinery. Tho climatic conditions were abo more favourable for the labour involved in mining. The delay, caused by technical legal points, in the transfer of capital from London, by keeping skilled miners out of work, caused thiam to go to other colonieß or countries where they

are in rcqaesb, and when they were agaia needed for New Zealand mines bhey had to: ■ be broughb back at greab cost. ■ Mr Ward said he thoroughly endorsed. the views expressed^ by Mr Witbeford, and he was prepared to do everything possible to facilitate the introduction and investmenb of capital for the developmenb of NewZealand mines. Hebhoughbib wasamabter s for regrebbhab owing to any technical difficulty in the. mining laws the flow of capital Bhould be impeded, and skilled labour diverted from New Zealand to other count tries. '. ;' ,' ■ \ . ' ,4',