COMPARATIVE DREDGING RETURNS.

Lake County Press, Issue 981, 26 September 1901, Page 7

COMPARATIVE DREDGING RETURNS.

A little consideration of figures relating to dredging, and compiled fiom published returns of public companies, will convince the most sceptical that the industry is a real live one, and destined to play an important role in the development of the country. 'She man who puts his money into some worthless outsider at. perhaps, a premium, can console himself that there tire still many good claims in the country, and that he may have better fortune next time, when the dazzling allurements of a market rising on public credulity will not influence his choice of investment. In spite of all the set-backs experienced during the past year, there is a substantial yi ciease in the amount of gold raised. If investors can only decide to stick to stocks which have some claim to be considered payable, the credit of the industry will rise again, and next year will witness a still greater increase. The following comparative statement will show the results obtained for the first nine months of 1900 and 1901 respectively. For September of this year 7,0000z, which should be well within the mark, has been estimated, and included ;

Nine months ended September 30, 1900, 47,3340z 18(1 wt ; approximate value, £189,000.

Nine mouths ending September 30, 19(A, 56,281 oz ISdwt ; approximate value, £224,000.

During 1900 an average of 47 drudges per week were working, the highest number in one week being 55 (in September), and the lowest 37 (in January). The average weekly return was 28oz per (hedge, but this high average can hardly be taken as a, guide, on account of many big yields obtained by the Hartley and Riley and Electric companies. For the above period during 1901 a weekly average of 83 dredges was reached, with 18oz 16dwt to their credit, or 9oz less than the previous year. Tit’s represents an addition of 36 machines, or over 40 per cent., but an increase of only 16 per cent, in gold won. In explanation of the latter figures it should be pointed out that there have been no sensational returns this year so far, and the average weekly dredge return of 18oz is probably much nearer the mark than that of 1900. Then, in the aggregate result, it must not be forgotten that the phenomenally and continuously high state of the rivers this winter has seriously militated against goldgetting. Weather prophets predict, however, that the summer level will be exceptionally low this season, so that companies mav after all retrieve themselves.

Turning to the subject of dividends —the infallible criterion of mining success—we can safely estimate and include £B.OOO as Hie amount likely to be distributed this month. Thus, we find that during the past nine months shareholders have received £46.741 return on their investments. Twenty-nine dredges, with a total nominal capital of £228,476, yielded this profit, and if calculated for the twelve months on the above basis, the interest thereon would be 25j per cent. This is satisfactory on stock at par or a little above, but evidences the necessity for caution in paying high premiums for shares— 20 per cent, on the investment being a reasonable expectation from any dredging company. At this junctuie it should be mentioned that it is obviously unfair to apply the profits of these payable claims to the total capital invested in all the “wild and woolly felines" floated during the boom. The foregoing figures will serve to show, however, that a steady replacement of capital is in progress, and that when the names of many notorious wild-eats have been forgotten sound concerns will be- making amends for their unsavory reputation.