MINING NEWS.

Evening Star, Issue 11674, 5 February 1902, Page 6

MINING NEWS.

The Paterson's Freehold report 230z for 130 hours' work.

Fifty-one Otago and Southland dredges reported returns for the week ended February 1, the total return being 1,2740z lodwt 14gr. Seventeen West Coast dredges reported for the week ended February 1, the total return being 4720z 4dwt. Our attention has been called to the following extracts from the Mining Act Amendment Act, 1901, which those interested should carefully note :-r-From and after the thirtieth day of June, one thousand nine hundred and two, the master or other person in charge of every dredge employed in any deep or swift-flowing stream shall be the holder of a dredgemaster's certificate, issued by the Board of Examiners. The Board may issue certificates of service as dredge-master, without examination, to any person of good repute who, prior to the thirtieth day of June, one thousand nine hundred and two, applies for the same in the prescribed manner, and produces a certificate from his former employer of his having been actually employed as a dredge-master or person in charge of a dredge for a period of six months immediately preceding the date of liis application. During eighteen working days the Waitekauri Gold Mining Company treated 1,549 tons of ore for bullion valued at £3,406. The report of the Inchdale Company for the twelve months ended January 31 states that the dredge was completed in August of last year, and commenced working on the 14 th of that month. The returns have been fair from the start, and have shown a steady increase in value. So far as the directors can judge, they believe the present returns will be maintained, as apparently the gold is evenly distributed over the claim. It was found necessary to r;iise money on mortgage to meet the liabilities of the company, and £I,OOO was borrowed for one year at a time when money was difficult to obtain upon the security of dredging claims and plant, and a high rate of interest had to be paid. It is possible that the loan could not have been raised at all but for the liberality of Mr Pearson, the vendor of the property, who gave up 300 of his paid-up shares as a bonus to the lender of the money. If the present return of gold is maintained this loan will be paid off in a few months and the company be free of debt

SHARE MARKET

OTAQO EXCHANGE. The following sales were effected this morning:-—Fourteen-mile Beach, 17/6 r Inchdale, 14/9. DPNEDIN EXCHANGE. Sales were made at the following prices on the above Exchange yesterday afternoon • —Electric Extended, 6/, 6/, 6/; Endeavor, 14/9 ; Monte Christo, 30/; No Town Cree'v, 22/; Pactolus, 34/3, 34/3, 7.4/3 ; Roy.il Maori, 18/9, 18/6. This morning's sales were as follow :—Endeavor, 15/6 ; First Chance, 9/6, 9/6; Gold King, 4/3, 4/6, 4/9. 4/9; Golden Eiver, 7/9 ; No Town Creek, 22/6. Quotations: Al—Sel 31/. Ahaura River—Buy 1/6. Aiding*—Sel 20/. Alexandra Lead—Buy 4/, sel 5/6. Bendigo—Sel 13/6. Boundary Creek—Buy 2/10£, wl 3/ty Central Electric—Buy 3/, sel 7/. Davis Bend—Buy 2/, sel 1/3 dis. Dunstan Lead—Sel 7/. Electric Extended—Buy 5/3, sel 6/. Electric—Buy 39/, sel 40/. Endeavor—Buy 15/3, sel 16/. Enterprise—Buv 24/6, sel 30/. First Chance—Buy 9/3, sel 9/9. Fourteen-mile Beach—Buy 17/, sel 18/. Gentle Annie; —Buv 15/. Gold King—Buy 4/6, eel 5/. Gold Queen— Buy 3/, sel 3/6. Golden Link—Buy 2/6, sel 5/. Golden Mile—Sel 3/. Golden River—Buy 7/7J,, sel 7/10£. Great Central—Buy 6/9, sel 8/. Greenstone Junction—Buy 24/9, sel 26/. Inchdale—Buy 14/, sel 16/. Junction Electric—Buy 23/6, sel 24/. Kelly and Casey Beach—Buy 8/, sel 9/. Kohinoor—Buy 10/. Lafranchi's Freehold —Buy 5/. Leaning Rock —Sel 15/6. Magnetic—Buy 5/, sel 9/. Manuherikia—-Sel 39/. Meg and Armie—Buy 23/, sel 24/6. Molyneux Kohinoor—Sel 2/ dis. Monte Christo—Buy 29/, sel 31/. Nelson Creek—Buy 50/6, sel 55/6. North Beach—Buy 11/, sel 2C'/. No Town Creek—Buy 22/3, sel 22/9. Olrig—Buy 12/, sel 12/6. Orwell Creek—Buy 2/, sel 5/. Pactolus—Buy 33/3, sel 34/9. Perseverance —Buy 60/, sel 66/. Reeves's Proprietary—Buy 15/, sel 16/. Rise and Shine—Sel 15/. River Molyneux—Buy 4/6, sel 6/. Roxburgh Jubilee '"aid) —Sel 17/. Royal Maori—Buy 18/, sel 18/6. Teviot—Buy 6/6, eel 7/6. Upper Clutha—Buy 1/6, sel 4/9. Upper Magnetic!— Buy 3/6, sel 5/. Vincent Extended—Sel 9/.

STOCK EXCHANGE NOTES.

The jiver to-day was 9ft 6m above mini mum, and the weather fine. This shows no further fall since yesterady, but may still be regarded as an augury of more favorable conditions.

The market this morning exhibited more tons than on either of the previous days, and sabs were recorded in vinous stocks, with a stronger demand in orhers. The following are the principal quotes:—Ahaura River, buy 1/6'; sellers are holding back till the. extant of damage to the dredge i* ascertained. Davis Bend, buy 2/ dis.. sel 1/3 dis. Holders are beginning to agitate for son.© plan of campaign. Electric Extended, buy 5/5, sel 6/; cannot, beat the drift—a case in point in which the dredge should not have started. Endeavor, sale 15/6, buy 15/3, sel 16/; looks like a good, steady producer. First Chance, sales 9/6. buy '9/3, sel 9/9; don't know what thev have done to harden again; more brokers' capriciousness. Gold King, sales 4/3, 4/6. and 4/9 (quite a little flutter), buy 4/6, sel 5/; of no particular importance one way or the other. Gold Queen, buy 3/, sel 3/6. Golden River, sale 7/9, buy 7/74, se l 7 J firs*. Great Central, buy 6/9, sel 8/; one of the gilt-edged specs. Junction Electric, buy 23/6, sel 24/; steady. Meg and Annie, buy 23/, sel 24/6; firm. Nelson Creek, buv 50/6, sel 55/6; margin too wide. No To«ro Creek, sale 22/6, buy 22/3, sel 22/9 ; should see a rise soon. Pactolus, buy 33/3, sel 34/9; should Larden again. Reeves's Proprietary, buy 15/, sel 16/; have declared ? / dividend. Upper Magnetic, buy 3/6, sel 5/; will harden on first return if favorable. Investment Stocks. —National Insurance, sel 21/ ; Standard, buy 17/ ; Westport Coal, buv 80/: Perpetual Trustees, sale 14/3, sei 15/; N.Z. Drug, buy 51/; Donaghy's Rooe, Iwiy £lO 15s, sel £ll 2s 6d; National Mortgage, buy 32/6, sel 38/. At the present juncture, when the ques tion of company-financing looms so large in the shareholding mind, it mighht be well for shareholders in certain ventures (it is well to qualify them) to carefully consider some

of the principal features of raising money to pull dredges over the rapids of inso • vency,' 'lt does not always follow canae an individual has put money intn an apparently hopeless speculation that it is the wisest thing in the world to allow an outsider to run it for him. There are always men ready to take a certain risk in advancing money to embarrassed companies, provided they can make their own terms, which, needless to say, are always of a very generous description as benefiting .themselves. Even in this community we have principals and agents who have come to \n recognised through the constant recurrence of their names in dredging affairs as the bankers for hard-up companies. The latter have to raise the necessary cash to carry on and put them on the payable basis; the industry having suffered in prestige and the amount of money required being greater than the supply, they cannot get it from reputable financial institutions, and so the directors are forced to tap private channels, or at all events negotiate with private individuals. This is exactly where the pin pricks, and it really does seem a short-sighted policy for shareholders not <o apply the moral to themselves. Here is a typical case for example. A company of handy capital, a decent claim, and an efficient dredge finds itself short of working expenses, possibly even in debt for a fear hundreds. Obviously the position is not extreme, and it is a case of either borrowing or issuing debentures. In many instances shareholders have preferred to obtain a loan at from 10 per cent, to 20 per cent., with full security given over the dredge and claim and a perquisite in the shape of a plump procuration fee of perhaps 12i per cent. This means that the company is paying over 30 per cent, for the obligement, and up to £I,OOO or £1,500 we have no hesitation in saying that the se curity is quite good enough and the risk not excessive considering the terms. Now, if the thing is such a "cinch" for Mr Mortgagee, why should it not be an equa. 7 thing for shareholders themselves? In other words, why do shareholders not looj more kindly upon their security and advance the money on their own account? It would at least save the procuration fee, which in itself is a beautiful bonus for anv struggling company to negotiate. The dredge-master of the Alexandra Lead dredge, writing under date February 3, states that the crew were employed last week getting things ready to shift down the river. He got down a short distance on Saturday, and on the 3rd 200 yds further. The dredge is now about 200 yds from the bridge, which is at the bottom end of the claim. The machine is hard to hold in the current, and they have to be careful. It will take, another day to get down to the bottom end, and if there is not much to do after the trial a start at dredging will be made on Friday or Saturday. The river is keeping high, and he may not be able to bottom, but he is hopeful. Mr Payne was expected up to pass the work and take a trial run out of the buckets yesterday. The New ■ Greenstone Company has been largely over-subscribed, which means that the 3,000 contributing shares will go to an early allotment—in fact, 2,500 have already been allocated. A meeting will be held on Friday to allot the balance and discuss the best measures to be adopted for the completion and delivery of the machinery, which .at present lies m Frazer and Son's Foundry at Auckland. There would seem to be. small doubt about the success of this company once they get to work. _. The Happy Valley statement up to .JJjst December, 1901, discloses the fact that the finances would welcome some assistance. In the first place there are nearly ioUU arrears of calls, which, if paid up and applied to the liquefying of the company s debts, would Teduce those encumbrances to about £1,350. Since 'January 1 the dredge has won 81oz of gold, and is now -retting steady returns, which may be expected to improve. It would seein to be now a neck-and-neck race between the bills maturing monthly and the profits on operations If the latter continue long enough, and produce a. surplus of about lOoz per week the company may calculate upon eettin" free of debt within nme months. The prospect as at present constituted is encouraging. , The Coal Creek Flat Company started work recently, but next to nothing has yet been heard from them. We are not decided yet as to whether this company desire to preserve a strict censorship over the doings of their craft up on the Coal Creek selection, but no doubt shareholders and the public generally would be glad to know if the buckets are continuing to revolve, and what the prospects are generally. According to the yearly statement the dredge will want to get gold without loss of time. £II,BBB 19s sd, including £3,000 of debenture money, has been spent on the machine to date, and it ought to be copper-bottomed at the price. The.company owe besides £228 3s 6d, and hold £54 17s 7d in the bank, which is not a fortune The claim is well thought of and should turn out well, but a little publicity would do no harm. ~ «__. Shareholders in the Kawarau Bridge Company will still have a chance to conserve [heir interests by transferring their application* for shares in the late attempted Construction to the syndicate which was formed to purchase the dredge and claim £ Son. thTvisible head of which is Mr JEL Shrimpton. To nil those yhowanta nm for their money this opportunity seems a very favorable one.

HARRIS BEACH DREDGING COMPANY.

A general meeting of shareholders injhe above company was held in the registered office! Lawrence, on Monday evening to consider the following resolution:- That the company be wound up voluntarily Fourteen shareholders, representing 3,250 d£U present, Mr D L. Christ* (chairman of directors) presiding. The Chairman, in moving the resolution, said he did so with much regret, but owing to the attitude taken up by the Dunedin ehareholders he considered it the best course to take. The local shareholders had still every confidence in the property, and believed that with a good dredge (which could have been procured at a very low figure) the claim would have proved remunerative. However, he considered that there would be no satisfaction in carrying on under the threats of the Dunedin shareholders to compel liquidation by applying to the Court. The motion was carried. Mr Alex M'Lean was appointed liquidator, at a fee of twenty-five guineas. In reply to a question as to whether the vendors would claim in full, the Chairman said they had agreed to claim only to the extent of the capital called up. It was resolved that tho directors receive a remuneration for their services for the present year a sum proportionate to that voted for their past year's services.—'Tuapeka Times/