BAY OF ISLANDS COAL COMPANY.

Daily Southern Cross, Volume XXVIII, Issue 4609, 1 June 1872, Page 3

BAY OF ISLANDS COAL COMPANY.

The fourth annual meeting of the shareholders of the Bay of Islands Coal Company was held yesterday afternoon, in the office of the Company, at 3 o'clock. There were present— Messrs. J. 0. Firth (in the chair), J. McLeod (IVT.H.U.), J. A. Giiailau (secretary), C. J. Stone, T. JRusseli, R. Keesing, G. P. Pierce, T. Peacock, W. H. Kissling, A. Dornwell, A. Boardman, W. Aitken, §. Wells, J. Greenway, — Harrison, and Dr. Campbell. After the advertisement calling the meeting had been read, the minutes of the former meeting were read and confirmed. —The Chairman explained that the only thing arising out of the minutes which had been read was the half-yearly report, which was agreed upon at last meeting. At the end of the first six months nothing had transpired in the working of the mine which deserved special notice. That was the reason why the directors did nob issue the halfyearly report. All that had taken place of special interest had occurred during the last six mouths. —Mr. T. Russell then read the mine manager's report, which stated th&t during the last Bix months there had been a smaller production of coal owing to a very large influx of water in the No. 3 level in the mine. The coal during the last six months had been taken from all the upper parts of the mine ; the principal portion coming from the No. 3 level. The driving had been extended a distance of 1,524 ft? from the shaft, or a distance of 1,968 ft. from the outer entrance. He estimated that there remained at the present time some 10,000 or 12,000 tons of coal above the water i level, and it was from tbis portion of the mire the coal was now being taken. He recited the quantity of plant that was now buried by the water which had flooded the mine, and suggested that a new 12-inch lift should be put down. That, along with the 6-inch, lift which was already in position, would bo sufficient, not only to enable them to recover the plaut, but also to keep that portion of the mine sufficiently dry to enable them to sink and win the coal. The engine of 12horse power, whioh was now employed working the boring- rods, would be sufficient to work the now lift. He urged that the 12inch lift be provided without delay, as the longer the plant remained under water it would become more difficult to redeem, and also rapidly deteriorate. He thought that not less 80 tons per day ought to be extracted j from the mine. There had been one bore put dows, and tho particulars of it reported to the directors, formerly. The second bore was down 115 ft., and he expected that a depth of 180 ft. would reach the coal. The second bore was more favourable than the first one. Mr. Ru9sell then read the following report and balance-sheet for the year ending the 30bh April, 1872 :— " During the past year the quantity of coal shipped from the mine has been 23,442 tons, and of slack 6,176 tons, making a total quantity of 29,618 tons, as against 24,539 tons of coal and slack shipped during the year 1871 ; and the quantity delivered during the year just closed would have been much increased but that the works in the lower levels have been stopped during the last three mouths by a large increase in the water in those levels. Notwithstanding this iucrease in the quantity of coal delivered, your directors regret to say that it has not effected any improvement in the company's financial position ; nor do your directors hope for any payable result to the shareholders until the mine is connected by a line of rails with the deep-water loading ground. Since the last annual meeting your directors have had contiuued negotiations with the Government relative to the construction of the railway and tho extension of the company's area ; these negotiations have resulted in an agreement under which the Government engage to construct a railway from the mine to deep water, and to grant the company an extended area of the coalfield for a lengthened term ; the company, on their part, undertaking an increased production of coal each year, and payment of a fixed rate of interest upon the capital to be expended in the railway. Your directors feel bound to state that the Government, throughout these negotiations, have dealt with the -whole question in a fair and liberal manner. It was the intention of your directors, at this meeting, to have proposed a plan for the future working of the company's property, involving an immediate contribution of more capital ; but in January last a sudden influx to the lower works of a large body of water to somo extent altered the views of the directors, and they have deemed it advisable to defer proposing any plan to the shareholders. Borings are now being made on various parts of the company's property to ascertain the extent and position oE the coalfield ; when the result of those borings is known your directors will be prepared to meet the shareholders with proposals for the future. The mine manager's report conveys full information r«lative to the present state of the mine and the company's property. Two .directors retire by rotation, Messrs. Firth and Wilson, but, being eligible, they offer themselves for re-election. Two auditors are also to be appointed, and it will be for the shareholders at this meeting to fill all these vacancies.— J. O. Firth, Chairman. -Auckland, May 31, 1872." "Pbofit anj> Loss Accoukt.— -Dr. : To wages for winning and carrying coal to barges, £10,253 17s. lid.; for barging coal, and repairs to barges and steamer, £1,714 2s. 9d. ; general charges and expenses, intending repairs to plant, &c, £645 7s. 6d.; mine, for iron, timher, candles, oil, tools, &c, £528 110, Sd.; forage for horaes, £441 25.; freight on goods to mines, £187 163. 3d,; boring operations, £389 14a.; salaries, £6BB 10s.;-inter-est and discount, £1,058 17s. Id. ; loss on re-sale of locomotive, And depreciation in value of barge* and boxes, &c, £952 10s. ; hulk, £675 11s. 4d. ; coal yard, £189 12s 5 bad debts, £20 155. lOd. ; balance, £3,191 17s. 7d. : total, £20,938 ss. lid.— Cr. : Balance of profit and loss old account, 30th April, 1871, £2,481 Is. sd. ; sales of 23,442 tons coal and 6, 176 tons slack, from Ist May, 1871, to 30th April, 1872, £18,455 18s. ; transfer scrip and fees, £l 6s. 6d. : £20,938 ss. lid. ; by balance, £3,191 17 a. 7d. — E. and O. E., Auckland, 30th April, 1872. For the Directors, J. C. Firth, Chairman. — Audited and found correct ; A. Boakdman, Geohge P. Pierce, auditors. May 27, 1872." The Chairman moved the adoption' of tho report. In doing so ho said there had been a larger amount of coal delivered during the paat year than during any other year of the company's operations. Had it not been for the unfortunate occurrence with, the water, the quantity would have been very much larger, and probably there would, have, been' a dividend for the shareholders. ' Those tfcourrences were always annoying, even to rich companies, and when they happened' to * poor company like themselves they were almost enough to swamp iti He hoped that tho workings which were going on at present would result in giving increased confidence in the property, . and that the results would' in a short time' bo such as would justify tht directors in calling up sufficient capital to f ally develop the property, and supply the local market with coal. — Mr. O. J. Stone seconded the adoption of the report. — Mr. Peacock, before the motion was put to tho meeting, wanted the Chairman to say whether {the directors had confidence in the ability of their mine manager to conduct the boring, operations.. That work' ww* always a, difficult one, and required considerable soiontifio attainments to perform it properly. He saw that already a sum of £389 had been speut at that work, and the expense was still going on, —The Chairman replied that the directors had perfect confidence in their manager, in the conducting of the operations. He himself had had more experience in' that kind of- work than many colonists, and he was perfectly satisfied with the way their manager was conducting the work. The, mine had' been inspeoied by Captain Hutton, the geologist, at tho request of the Government; and no had given directions where the bore; should .be put down and how. ' This had been,; complied with, and the boring wasp in faot, being carried on according*, to r Captain Button's direotion.>-Mr,Peacockaskedwhythe directors had not got a sufficient number of vessels or tenders to take , aw*y the slack, *ad

coal from the mine sufficiently fast to meet the demand for them. — Mr. Kussoli replied that the company laboured under great difficulties in that respect. What was wanted was a class of vessels of sufficiently light draught of water to go up and load under the crane. Several gentlemen in Aucklaud had built vessels for thai; purpose, but they had all too great a draught of water. That was one answer, and another was that vessels would not engage in that trade when other trades were brisk. The directors could only afford to pay s certain price for the carriage of the coal, and when better paying trade turned up the vessels always loft them. — Mr. Keesing asked how long the railway would be in construction. — The Chairman replied that if it was to be judged by the time required to construct other railways a considerable time would elapse.— Mr. Dorawell thought the Government wanted tying down to a certain time. — The Chairman explained that that rested with the directors. As the company would have to pay interest upon the railway, they were careful not to incur j expense until the result of the borings justified them in doing so. — Mr. McLeod said, although he was elected last year one of the directors, he had taken no active part in the , management, and allowed the other directors to do as they thought best. He had not intended to say anything at the present meeting, had it not been for what fell from the chairman. He had done something to get the Assembly to agree to the railway bill passed, and he was in a position to say that the railway would be commenced as | soon as the directors should say they were ready. The Government would carry it out |as rapidly as any work in the North. Ho was well acquainted with the whole of the northern district, and ho was surprised to learn to learn that boring was required to ascertain the extent of the coalfield. Prom I east to west it extended full 30 miles as the crow flies, aud from north to south it extended from the Kawakawa to Whangarei. He had carefully examined the country, and found the indications of coal all the way. He had here and thero found the petroleum flowing away on the surface of the swamps. He had the most satisfactory reasons for oelieving that the coal extended over an area of not less than between 50,000 and 80,000 acres. With such a field before thorn they should not have delayed in making needless borings. The railway, if it ran up there, would open out a vast area of excellent coal. The poople outside said there was some object in all these delays. He was far from believing; that the directors were acting otherwise than to the best of their ability for the benefit of the company ; but ho condemned the method of boring they were adopting. The system of boring by rods was suitable for 50 years ago, but in the oil wells district of Pennsylvania a depth of 1,200 ft. could have been reached (by methods which he described) in less time than the company had already spent in boring. In January last the boring was begun, and a depth of some 200 ft. had been reached, a result altogether unsatisfactory. He had great reason for complaint for all these delays, as he had his all at stake in the success of the mine. — The Chairman replied to Mr. McLeod, and said the directors had Beveral objects in view. They wanted to get a good coal, a cheap coal, and dividends to the shareholders. They had litile experience in these matters when they came to the colsny, but they wore acquiring experience, and would use it for the benefit of the shareholders. Mr. McLeod might be right in supposing that the coalfield extended as far as he had stated, but it was better to go upon facts rather than upon the suppositions of geologists however eminent. It was not desirable to expend a largo sum of money in a work of this kind in such a country as New Zealand, which had beea so much disturbed by volcanic action, until they had data togo upon. Boring would give that. The direc- ! tors had taken their preseub steps to ascertain the value of their property before incurring a very large expense, or dragging the Government into the expense of making a railway which might be saved. The plans of boring suggested by Mr. McLeod were not desirable. The Abyssinian plan was I only suitable for a depth of 30ft. or so, and j the boring by impact was not suitable for New Zealand. He (the chairman) had a little experience in that , line, and his experience went against its adoption. — j The motion for the adoption of the report was put and carried. — Dr. Campbell moved, "That Messrs. J. C. Firth aud W. C. Wilson be re-elected directors." — Mr. U. Keesing seconded the motion, which was j agreed to. — On the motion of Mr. C. J. j Stone, Messrs. A. Boardman and G. P. Pierce were re-elected auditors for the ensuing year.