IN RE THE BLACK BALL COOPERATIVE COLLIERY COMPANY'S PROSPECTUS.

Press, Volume XLVII, Issue 7527, 17 April 1890, Page 3

IN RE THE BLACK BALL COOPERATIVE COLLIERY COMPANY'S PROSPECTUS.

TO THE SDITOR OF THE PRESS.

Sir,— your permission, I will endeavor to remove the misgivings caused in the mind of your correspondent who signs himself "Investor" in your issue of to-day's date. I think this will best be done by dealing with his questions and assertions seriatim. Ist. He asks, how is it that, "when quoting Mr Brown's statement from the report of the Westland Coalfields Committee," the Provisional Directors give freight Greymouth to Lyttelton at 5s per ton, whereas in said report the freight is stated at Ss-6d per ton ? The Provisional Directors do not give the freight at 53 per ton " when quoting Mr Brown a statement" before said Committee. They quote freight 5s per ton from the ports mentioned, from far more reliable sources, I will show further on.

My Directors can form quite as good an estimate of the value of Mr Brown's "opinion" as "Investor," and consequently quote "facts" stated by that gentleman, in re ships waiting at Newcastle for supplies, etc.

In computing the freight, my Directors had (and now have) in their possession the actual results of a steamer under charter to a coal proprietor during the years 1837-8. '

That is to say, they knew the rate of charter, the number of voyages actually run, and the carrying capacity of the steamer; this, when worked out, gives the rate per ton at 3s BJd. Farther, they have entered into negotiations with shipping agents in Christchurch and elsewhere, with the result that they are assured that suitable bottoms can be chartered at rates .wmch show the ccst of freight per ton to be from 4s to 4s 3d; but in this, as in all their other calculations, they have over-esti-mated expenses rather than under-esti-mated them. . " '■-. :?)<;

I am not going to either defend or contradict the statement that" the Westport Coal Company and Grey Valley Coal Com* pany assert in said report 5 that they are each able to export double what they are now doing if they could find a market," bat I will state a few facts with regard to the latter Company anon. : This brings mc to >'Investor's ?t tnifd remark about a seeming serious omission, of, the provision ofrolling etpck, and for his information I may state that this matter has not by any means been overlooked by my Directors.

The question of trucks has been discussed with the General Manager of the New Zealand Midland Railway Company, and my Company will not require to provide any capital for rolling stock other than ia dealt with in the prospectus. " Investor's " fourth assertion, which he begins by stating that he is informed by practical men of long experience that the provision made for trucking, winding, loading, road and plant maintenance, overseer, blacksmiths, carpenters, ventilation, office cost and management, and miscellaneous, is wholly inadequate, I can only meet by saying that my Directors are "informed by practical men of long experience" that our estimated expenditure is ample and, if anything, rather above the mark ; and further, that they have every confidence in the&bilicy and experience of Mr A. B. Lindop, M.E., who supplied the estimate published.

From,the fact of "Investor" quoting the Grey Valley and Westporb Companies' " published balance-sheets," lam led to think that his informants of long experience must have been guided by the enormous cost of the items he mentions in these mines. . .

Is "Investor" aware that in the Brunner mine most costly machinery and plant have to be maintained, together -with puna ping machinery (which latter has to be worked night and day whether the pit is idle or not), none of which will be required in the Black Ball mine? Mr Lindop estimates that the field contains: 27,000,000 tons of coal, and to quote from 1 the prospectus :— .. > "That'n>ooo.ooo tons could be worked level free, that is above water level, no shafts or pumping be required, and consequently the coal can be won at a minimum of expense." He also states that this is an enormous advantage in the economical working of the mine, and more than compensates for the extra railage of the coal as compared with other mines. In the Black Ball Coalfield no pumping is required. The mine is self-drained, and; there is plenty of water-power which may be utilised for working fan for air and hauling coal; and when the pit is idle the expenses at the mine are practically nil, which is a great advantage in case of a strike or slackness of trade. In March 1889, Mr Lindop, after spending nearly a month in prospecting and taking levels, 1 estimated that some 7,000,000 tons of coal could be extracted from the level, which is now being driven, by workings to the rise." .■'■'■' I""".- ,

•'lnvestor ,, talks of the "faults' , found ins country like the West Coast. Does he for a moment mean to compare the country where the Black Ball field is situated with the country around Brunnerton? If so, this is too ridiculous. The latter is in a gorge, where one would naturally expect to find "faults/ , especially in the levels from which the coal is being -won, whereas the other is situated on higher levels, and in a part of the country where the measures are as true as can be found any where, as has been proved by actual survey. I can only reiterate that all these conditions have received most careful consideration.

sth. With, regard to an outlet, I would point oat that the demand for coal is increasing daily. For instance, within the next twelve months the requirements of the Shipping Companies will be doubled. From Gas Companies and others in Australia we are assured of an annual ontlet for 80,000 tone, and if the Black Ball Company has no greater difficulty to overcome than finding a market for their coal, the task vrill be light indeed. As for the projected companies at Greymouth, they have not commenced operations yet, as far as putting coal on the market is concerned, and ought not to be quoted. In conclusion, I may say my Directors court the strictest enquiry into ail statements contained in the prospectus, and I shall be happy to give any investor or the public generally the fullest information at my disposal.--Yours, &c, Edwabd F. Dombraxk, Interim Secretary. Christchurch, 16th April, 1890.