The Hastings Standard Published Daily FRIDAY, JULY 9, 1897. THE MINING LAWS.

Hastings Standard, Issue 368, 9 July 1897, Page 2

The Hastings Standard Published Daily

FRIDAY, JULY 9, 1897. THE MINING LAWS.

For the cause that lacks assistance, For the wrongs that need resistance, For the future in the distance, And the good that we can do.

It was to be expected that the Colonial Premiers would be approached with respect to the mining laws of the colonies. The Westralian boom, following upon the collapse in South Africa, has caused a considerable inflow of British capital into Australasia for the development of our mining areas, and as we know an appreciable sum has found its way into New Zealand. I'ondon has thus acquired a strong interest in the mining laws of the colonies, and recently, it must be confessed, our legislators have shown a disposition to hack and alter, these laws to placate certain local interests. Thus in Western Australia the labor conditions were made very stringent, with the result that the Heme capitalists took alarm and threatened to withdraw altogether from the colony. There was a commotion created with respect to our own mining laws by the drastic amending bill introduced into the Jibuse last year. These tamperings with the mining laws were wholly in the interests of local busybodies, and were really unnecessary. The alarmed Londoners to conserve their interests formed ' the Australasian Chamber of Mines, and it was a deputation of members from this institution that waited upon the Premiers on the 5 th instant. AVe cannot say what is the position in the other colonies ; but in New Zealand the Mining Act is effective only through the will of the Minister of Mines—that is to say, the Act is put in operation by certain regulations, and these again are at the option of the Minister. Thus one man practically commands the position, and it is a power that should be given to no single individual, for unless he be most conscientious and absolutely impartial he can make or mar the success of mining in any locality. He can help his friends and thwart his foes. The demands made by the London deputation are not unreasonable ; they ask for better tenure in mining lease and a relaxation of the labor conditions. Mining at best is a highly speculative game, sometimes involving much money for no benefits, while in other cases a moderate expenditure results in fruitful returns. Then again out of the numerous claims on a gold field not more than ten to fifteen per cent turn out bullion, the rest proving mere wild cats. W r e have but to look at the northern goldfields and compare the expenditure with the returns to realise how hazardous a venture is gold-mining. It becomes evident then that those who risk their money in mining should be subjected to the least possible restrictions, more especially on the two points raked by the London deputation. The tenure ought to be such as to ensure to those who venture their money not being disturbed for a reasonable time, and forfeiture should not be so easy as it now is. The labor conditions, however, are the most important matters in mining. We do not believe in reducing wages, and this is not what the London deputation desires ; even if it did the Miners' Union may be relied upon to look after the interests of its members. The labor conditions with respect to the number of men that must be employed to the acreage of the claim are the disturbing elements, and these must be relaxed. We believe that if the labor conditions were strictly enforced on our goldfields many of the mining companies would have to go into li^ui-

elation,.because they could not possibly comply with the law, and furthermore there are not sufficient minera in the colony to admit of the law being carried out. The scarcity of labor will in the near future, when the Englishowned companies get their mines into working Order, be keenly felt, and this will tend to keep up the Images of the men. While there is much to be said in favor of the capitalists and the necessity for meeting their demands to a reasonable extent, there is at the same time something due to the colonies by the capitalists and company-promoters. This point was admirably stated by Mr Kingston, the Premier of South Australia, who expressed the opinion that the working-capital of the companies floated in England to work the mines ought to bear a larger proportion to the share capital than at present. Over capitalisation of colonial mining ventures has been a very strong factor in the non-success of many ventures. There are several Anglo - New Zealand companies connected with the Auckland goldfieldsthat have more " water " in their share capital than gold in their claims. The proportion of working capital is scandalously inadequate. From £20,000 to £40,000 is provided while the nominal share capital ranges from £IOO,OOO to £150,000, and even £200,000; profits if any are divisible amongst one hundred thousand and more shares, and this is altogether unreasonable. The excess of capital forms the plunder of the army of promoters, who do not look to the mine for their profits but to the gullible English public, whom they rob through the Stock Exchanges. The greediness of the promoters and underwriters needs to be modified, and it may be necessary to this end to provide by .legislation that no foreign company shall be allowed a footing unless the the working capital is 50 per cent or thereabouts of the nominal capital. The large share capital is inevitable. John Bull is a queer fellow. It would be easier to float a company in London with a* capital of £IOO,OOO than one with a capital of £20,000, simply because the former admits by its bulk the creation of a market for the shares, while the latter would not, and a company whose shares are not on the market is not for Mr John Bull. Toe underwriters require to be touched up on another point also, for some of them have not hesitated to repudiate their contracts. It has happened that companies whose working capital has been underwritten but not offered to the public for subscription have received a moiety only of the amount. The reason for this is to be attributed to the slump. The contracts with the underwriters were entered into before the collapse, and the public scared by the slump hav3 not been " on the feed " for some time. This has compelled the underwriters to find the money out of their own pockets, an operation that is most distasteful to them. They have remitted money in driblets in pretended compliance of their contracts and in the hope that the slump would cease and so enable them to procure the money from the public. But when this has been found impossible the underwriters have deliberately repudiated their obligations, and to force compliance means to the Colonial shareholders expensive litigation aud waste of time. These matters want to be taken into consideration in any amendment of the mining laws; at any rate every care must be taken to lessen the horde of mining swindlers.