The Press. FRIDAY, FEBRUARY 3, 1911. THE WAIHI GOLD MINE.

Press, Volume LXVII, Issue 13958, 3 February 1911, Page 6

The Press. FRIDAY, FEBRUARY 3, 1911. THE WAIHI GOLD MINE.

Writing: on the startlingly' unpleasant turn which the affairs of the Waihi Goldmining Company have lately taken, we suggested on Monday last that the shareholders should enquire why it was that certain information which had been withheld from them appeared to have leaked out, and to have been used to advantage by others, and also that they should endeavour to secure tho engagement of a competent engineer to make an independent report on the present position of the mine, and the best policy as to its further working, particularly with a view to economies being effected. Wo are glad to sco that a meeting of shareholders in Wellington has practically adopted these views, and embodied them in a series of very business-like resolutions, which were reported in our issue of yesterday. The prompt and decisive action of the Wellington shareholders is in gratifying contrast with the shilly-shallying, purposeless talk which has been taking place among members of the Auckland Stock Exchange, who seem more disposed to put a favourable complexion on what has passed then to t&ke- any ' effective action for tho future. That the occasion is one calling for prompt C.jttd decisive measures is surely shown

I\V tho fact that tb: fell in Lhe during the hi?t twelve months repre- i .sents a decline in tin 1 capital value of ovor three millions storlins. Some fortunate individuals have evidently !>cen able to oscapt , their propcrtionatu share i nf this loss, hut following the usual j example in such eases it will probably . bo found that thoso left to boar the , burden nro least capable of support- j invr it. Not a few of the shareholders j in the Auckland nrovinoe , are ; widows and other pen-ons of small j moans, who have Iktii induced to t:i\o f up shares, in the belief that then- j vestment would p:ive them a secured in- ; come for life. It is only fair to say ! that the coiisi.sfr-nl'y high return.} from j tho mine, the amount of ore reported j tv he blocked out and in sight, and j the reassuring statements made by the j ■Hor.r-i at their annual meetings van such as to encourage this belief. We ; now know that there was at any rate an j inner circle who knew of causes tor j eonrern not apparent to the outside world, and the shareholders are right in demanding to be informed why it was that this information was not available to them as well as to the select party of speculators who took advantage of it. It will be seen that in passing tho resolution for a report by an independent mining engineer, the Wellington shareholders intend that >t shall be very searching and exhaustive in its character, especially in regard fcv> the possibility of the mine being worked on more economical lines. At present there arc three reduction mills, widely separated, and the expense of conveying tho ore to the mills must add very considerably to the cost of production. There is also an impression prevailing that during its era of remarkable prosperity the Waihi Company was not as careful as it might have been in devising the most economical methods of working the property, and that more or less ornamental and highly-paid officials were allowed to multiply at an unnecessary rate. These are matters which should l>o looked into, and the Wellington shareholders are obviously justified in their demand, not only for an independent report, but for the mine being placed under the supervision of a firstclass mining engineer. Shareholders who think that reform is needed cannot do better, in our opinion, than cooperate with those in Wellington. It will be remembered that in connection j with another Auckland gold mine, the I Talisman, a Wellington committee, by securing representation on the London ; Board, was able to bring about considerable reform in the management, ■with consequent benefit to the sharcj holders as a whole. It is to be hoped that a similar result will follow in the present instance. In the meantime the Auckland brokers, by not taking up a more vigorous and independent attitude, have pursued a very short-sighted policy. We have on more than one occasion felt it our duty to give expression to tho distrust felt in the South Island regarding: Auckland financial methods, especially in dealing wich j stocks and shares. Most people thought until recently that amid the eddies and quicksands which beset tho investor in dealing with Auckland ventures, the Waihi Company stood as firm as a rock. After tho rude shock which has now been administered, we imagine that Southern , investors will be still more chary in the future when they are asfied for capital for the northern centre. There is a stronger filing than ever that the plodding Southron is hardly fitted to cgpe with the nimble intellects of the ardent and mercurial spirits which animate Auckland finance.