ORIGINAL CORRESPONDENCE.

Lake Wakatip Mail, Issue 904, 18 February 1875, Page 3

ORIGINAL CORRESPONDENCE.

•.•Our columnt being impartially open, ** do not hold eurtclitt tetponitbU for the opiiiiotu expreued by our e>rrreapondent». ARROW RIVER UNITED GOLD MINING COMPANY, LIMITED. TO THE EDITOR OP THE WAKATIP MAIL. Sir, —t was ghul to see another letter from 44 A Dunedin Shareholder" as it enables me to go more fully into the matter. The first portion of 44 Shareholder's" letter requires no comment. He believes the Arrow Company to be 44 a legitimate co-operative undertaking," and, as 1 have never in any way been associated with bubble companies, I fail to see any point in his remarks. The articles of association do not say the local directors were 44 to plau operations, design machinery, Ac.," it states they are to carry out the mining work of the Company.—See Article 9. The water rights of Bush Creek were purchased by Mr Pritchard (at the request of the other directors) and by hiui transferred to the Company. Had the Dunedin directors demurred about taking them, there were four gentlemen in Queenstown prepared to do so, as it is the only available water for the Arrow township. I cannot allow there was any mistake in purchasing these rights, and distinctly deny that it has led to the 4< insufficient working of the ground." I shall prove the Dunedin directors are alone responsible for the inefficiency of the machinery (which, with delays) is the only cause of the ' 4 insufficient werking of the ground." If it would have been better to have used a water wheel (I sup|K)se what is meant is an overshot wheel) why did they not order one 1 Another thing, if the present turbine was made to suit the water power of this creek, why are they sending up another ? 44 The plan first proposed to work the ground was to sink into the reef, and drive through it, so as to avoid the water from the shingly layers above" is correct The plan was my own (and I still think it the proper one) but I was overruled by the other directors. I'he plau adopted was to sink in the deep ground, and it has not since been altered The tirst shaft was found to be on the reef, aud of course another had to lie sunk where the deep ground was supposed to lie. Why it should •'« deemed necessary to consult the Daiiediu directors for altering the site of the shaft I cannot- imagine, when the working of che miue (according to the articles of association) was to be left to the Arrow directors. At a meeting of directors held in Dunedin, on the 13th October, 1873, at the office of Mr (J. F. Rrtid, I learn that " A report of ttie working manager and a letter from one of the Uj) country directors were read. It was resolved that both should be shown to Messrs Kincaid and M'Queen and Mr Wilson, Engineer, with a view of obtaining their opinion* as to the machinery wauted ; also, an estimate of the expense of furnishing the various articles enumerated." Ou the 13th November, 1873, the following telegram arrived at the Arrow :— 44 Engineer's re|>ort sent iu ; it strongly recommends a turbine wheel as much more efficient and also much cheaper Total cost of turbine, pumps, and all necessary gear, 1435 13s; can be ready to work iu six weeks; will we order 1" The answer to this was the following telegram on 17th November, 1873 ' l4 Resolution passed by directors—that you order machinery from Mes»rs Kincaid aud M'Queen, they to erect Mm* on Company's ground, finding all materials, labor, Ac., machinery to include turbine, all necessary pumping and hoisting gear, piping, <fcc., for the efficient working of claim. Contractors to give guarantee of efficiency, to erect within stipulated time, aud hand over same in thorough working order. Contractors had better order here at once necessary timber for foundation, which will be bedded in light gravel and sand." It will therefore !»e seen that 44 she plans, <fec.," of Mr I'liott, the working manager, were sent by 13th October, 1873, just one month prior to Messrs Kiucaid and M 'Queen's tender being received (13th November, 1873) which states the machinery can l>e ready to work in six weeks. The answer to that was sent four days after, as per telegram, 17th November, 1873. I cannot therefore see why the contractors were not bound to time, when they had the working manager's report one month to digest before their tender was sent in ; and the local directors' answer was sent four days after. The additional piping, <fcc., said to cost £IOO (it was only 70 feet) was wanted in consequence of not striking the deep ground in the first shaft, and the exact spot to sink could not possibly be ascertained by the local Directors without boring rods, which were not to hand. With regard to the Engineer having nothing to do, the time he was on the ground from 11th Feb., 1874, to middle of May speaks for itself. The first of the machinery was landed 16th Jan., 1574, the last (of the first order) 23rd April, 1874. If the contractors agreed to make the wheel equal to 30-horee power, why don't the directors take action against them instead of sending up another turbine wheel 1 The alterations in the last order f< r second m t of pum|>s was for a wheel instead of a crank, suggested by the Engineers themselves How this could cost £SO or £6O I cannot conceive. On the 23rd Feb., 1874, the local directors passed the following resolution, which was duly forwarded to Dunedin:— 44 In the opinion of the directors they have every reason to be dissatisfied with arrangements made by the directors in Dunedin for the supply of the necessary machinery—and particularly with reference to the forwarding of same, they having sent the Engineer to

e: ect it before a great portion of it had been sent away from the foundry—entailing a considerable amount of uunectary expanse. tiie Company having to pay tin E gineerfor time hat vus ;• .iu7-it wailed in wa.tihu the arrival of the remainder of t »e machinery; and that the arrangeMients otherwise made are most unsatisfactory,. inasmuch as the suggestions made by the local directors tuive rarely been carried ouff "in their entirety." This was termed a piece of impertinence by the Dunedin directors, and no answer vouchsafed it accordingly. With reference to the proposed outlay of £2OO, I find the following report sent in 44 From the enclosed letter it will be seen that the Corporation of Arrowtown wish to make some arrangements with the Company for a supply of water for the towlt Should such a scheme be entertained, the upper race, owned by the Company, might be brought in at a cost of about £l5O. This would give 20 feet more pressure upon the turhirte, but would require extra piping to connect it with the present race now in use. It would not take much |>ower from the turbine to supply the town with the small quantity of water they would use, and it is believed that the revenue derived therefrom would soon pay for the construction of the race. This scheme was proposed by one of the directors here some ten months ago, but the Dunedin Board did not think fit to accept the suggestion." T think 3000 shares, with 20 per cent, to loe paid in dividends l>efore the promoters get anything, not too much for ground known to be rich. In proof of which latter statement I beg to refer 44 A Efunediu Shareholder" to Mr Beetham, Warden, at Queenstown. I I would also advise 44 Dunedin Shareholder" to trv his 44 Horse" before condemning it. It yet remains to be proved if the promoters have not sold the ground too cheap. With regard to the stereotyped phrase 44 of raising a cry against someone outside," <fcc., the affair has been discussed sufficiently for the shareholders to express their opinion on the matter, and until they do so I must beg to decline having anything more to do with the Arrow Kiver United Gold Mining Company, Limited. —I am, <fcc., T. Francis Roskruge. Skippers, February 12, 1875.