PHOENIX GOLD MINING COMPANY, LIMITED.

Evening Post, Volume XXI, Issue 43, 22 February 1881, Page 3

PHOENIX GOLD MINING COMPANY, LIMITED.

TO THB SDITOB OF THB EVENING POBT. Sib — In your sub-leader in Saturday's issue, you pommeitV upon the prospectus issued by this company^ and state that great dissatisfaction is felt owpg to the promoters retaining in their own hands 50 per cent, of the shares in the capital of the company. Further, yon state that the reserved shares pecure W the directors a power whioh, if Improperly ospd, would open the door to all forts of Ugpico»rietie3 Xam sure that the Pcees of {fisT city have n.Q desire to

throw cold water on any legitimate undertaking that may tend to open up and develop the quartz reefs said to exist in the Terawhiti district. I therefore trnst you will excuse me if I try to point out the error you have unwittingly fallen into. The promoters, as a matter of fact, only ho!d 2500 paid-up shares, which is equal to 25 per cent, of the capital of the company. 5000 are offered to the publio, which is equal to 50 per cent, of the capital of the company ; and the balance — viz., 2500 — is retained in the hands of the manager for the benefit of the company. Who are the company ? — The holders of the 7500 shares. Therefore the promoters only hold 2500 out of 7500. Again, it is quite a usual thing for companies to retain some shares, which ara usually used for the purpose of erecting machinery, or opening up and developing new works within the company's mine. I would also point out to intending applicants for shares that immediately the share-list is closed a meeting of tho shareholders (including those who have applied for shares) will be called, for the purpose of electing directors and making rules. The shareholders can then restrict the voting power of the promoters, and the manager is never allowed to vote with the company's shares. I think the main points to be considered by intending applicants are these — First, have the promoters placed too high a value upon the mines (there are two of them), and the works done thereon. The works done upon the Phoenix No. 1 lease would be worth to any company. The lease adjoining the Albion ground is a valuable block, as it adjoins a claim which is at present nominally valued at £7600 ; and from current reports gold haa been found in several other places on the Albion ground. Secondly, are the prospects sufficient to warrant the erection of machinery P All who have previously worked the ground assert that the stone will go from 4 to 10 dwts. to the ton. If such be the case, I have no hesitation in saying that, with suitable machinery and systematic work, the concern would pay more than expenses; besides, the machinery would be available to crush for other companies. While upon this snbject, I may be permitted to point out that in quartz reefs there is no certainty of success, and the proper course for the Wellington publio to pursue is to take a moderate quantity of shares. If the company be floated it will help to estabish once and for all whether there is payable quartz existing at Terawhiti or not. At all events the money expanded will be spent in the district, and therefore will not be altogether thrown away. I am, &c,