NELSON MINING COMPANY.

Nelson Examiner and New Zealand Chronicle, Volume XII, Issue 602, 17 September 1853, Page 5

NELSON MINING COMPANY.

A Special General Meeting of the shareholders of the above Company was held in the Court House on Wednesday evening last. The meeting was summoned to enable the Directors to report to the shareholders, on the present condition of the Company.

Dr. Renwick was called to the chair.

Dr. Monro, in the absence of a Secretary, read the following Report: —

Gentlemen — Your Directors have asked you to assemble to receive a report from them upon the present state of affairs of the Company, in order that you may exactly understand your position with regard to your mining adventure at Pakawau, and decide what further steps it is expedient to take. They ere not able to state to you that any very brilliant or decided results have attended upon the measures which under their direction have been adopted and carried out in Massacre Bay. These measures have been necessarily more or less of an exploratory character, and the results have been in some respects discrepant, and occasionally unsatisfactory. But they are nevertheless of opinion that the evidence they will be able to lay before you is of such a character as to sustain the confidence which had previously been felt with regard to the value of the Pakawau coal field, and to warrant the shareholders in proceeding with well considered, but at the same time decided steps, to prosecute their operations. It will be in the recollection of the shareholders that on the 2nd December last, Mr. Stoddarr, a gentleman who had had considerable practical experience in tbe conduct of coal works, was employed by the Company to survey aud report upon the coal field at Pakawau. That gentleman's first report was published in the Nehon Examiner of the 12th of February. It was evidently to be gathered from it that Mr. Stoddart had not had time, nor the necessary instruments, to effect a satisfactory exploration of the coal field, and his report was consequently in its general import of a vague and cautious character. In one respect it wae quite satisfactory : in bearing testimony to the excellence of the quality of the coal in the main seam at Pakaw.au. But with regard to other points, your Directors learnt from conversation with Mr. Stoddart that he had experienced some disappointment, and that, excellent as the quality of the coal was, he did not feel perfectly saiisfied tliat the seams there could be worked to a profit.

Your Directors, with a view of obtaining further information, on the 25th February entered into a contract with Mr. Grayling, who gave them to understand that he was conversant with coal mining operations. As the result of several interviews with that gentleman, they were led to believe that the least expensive mode of ascertaining the nature of the underground strata in any district was by means of boring. They were assured by Mr. Grayling that be had previously conducted boring operations, and that the process was one which he was perfectly competent to carry out, and from which he could promise the most conclusive results. A set of boring rods having been in a very handsome manner placed at the disposal of Mr. Grayling by Mrs. Strong, and other necessary tools being provided, that gentleman accordingly proceeded to Massacre Bay with a letter of instructions as to his conduct, of whioh the following is a copy :—

To W. J. Grayling, Esq.

Sir — The Directors of the Nelson Mining Company have had under consideration your letter of the 15th February, in which you enclose a proposition to survey and report upon the coal mine at Massacre Bay.

The Directors are disposed to accede to your proposition, and in furtherance of that object, they now beg to forward you the following instructions for your guidance.

They request that you will in the first place proceed to Motupipi, and examine the seam of coal which is at presentworked there, and at the same time, as coal is said to exist higher up the Takaka river, it will be advisable to examine the seams reported in that quarter, and satisfy yourself with regard to their quality and value in other respects.

The Directors find it impossible to prescribe to you [the time and labour which you are to bestow upon this object, but must leave it to your discretion to institute a more or lass careful examination of tbe district according to the indications which you shall perceive. Should you between Moutpipi and Pakawau learn tbe existence of any other deposits of coal, it will be advisable that you should visit them, so as to satisfy yourself of their probable value or otherwise.

With regard to Pakawau, the great object of the Company is to select in that locality a block of land, say 200 acres, such as shall contain the greatest amount of coal, and at the same time present the greatest facilities for working it. This you are to comiderthe principal object of

your operations in Massacre Bay, and in furtherance of this object, the Directors wish you to direct your particular attention to the following points :: — •

1. To examine the Pakawau valley, and the small valleys both north and south of it, with a view to discovering the existence of coal in them, and to make a superficial survey of so much of the district as may be deemed advisable. 2. By means of boring to ascertain the nature of the minerals lying beneath the surface, furnishing plaas and sections of the strata, both horizontal and vertical, exhibiting their relative position and thickness, and illustrated by corresponding specimens of the minerals. 3. To report upon the facilities for working the coal, and its probable expense at the pit's mouth per ton, together with a description and estimate of the machinery required. 4. To state the distance of the block, considered most eligible, from the place of shipment, describing and giving a plan of the intervening ground, and advising the Company with regard to tbe best description of carriage way for the transport of the coal, with an estimate of its probable expense.

The Directors further expect, that agreeably to your proposal, you will forward to them specimens and descriptions of any rock you may find in Massacre Bay, particularly directing your attention to metals, or such minerals as may be of any economic use. The Directors will furnish you with the use of a boat during the progress of your survey ; and in reply to your last paragraph, while they have no objection to agreeing to the stipulation contained in it for a limited time, they must reserve to themselves the power of determining the contract, should it appear likely to extend over a period much longer than that now contemplated. The Directors will be glad to receive by any opportunity which may offer of communicating with them a* report of your proceedings, and should no such opportunity offer before the expiration of one month, the Directors will require you to forward to them by the boat you have in your own charge a Report of your proceedings up to that time.

From this letter, it is clear that the principal object placed before him by the Company was the exploration of the Pakawau district, but that a certain latitude was allowed him of examining any other districts in Massacre Bay in which coal in any quantity might be ascertained to exist. Mr. Grayling however directed his almost undivided attention to the coal field at Motupipi, where he commenced his operations of boring, but discontinued them after having sunk at one place to a depth of about 25 feet. He then proceeded to explore the seams there by surface clearings and sinking shafts; and from the evidence obtained from these operations, combined with an exploration of the surrounding country, he arrived at the conclusion that there was a very extensive coal field at Motupipi, and that coal of very excellent quality would be found in a stratum lying at a greater depth than any of those which up to the present time have been worked. As regarded Pakawau, Mr. Grayling contributed hardly anything to the knowledge previously possessed by us of that district. He made one very short visit to that place, and did not either bore there, or conduct any other operations by which a knowledge of its mineral character could be arrived at.

While upon this part of the subject, your Directors may as well mention what has been done with regard to the Motupipi coal field. Notwithstanding the very encouraging manner in which Mr. Grayling spoke of that district, and the ingenious geological speculations by which he supported his views, your Directors were of opinion that the positive evidence adduced was not of such a character as to warrant them in recommending you to proceed to much outlay there. For without denying the possibility of coal of better quality being found at a greater depth, the fact before them was this, that all that bad been found up to that time was so sulphureous as to be ill-adapted for domestic purposes, and of inferior quality as fuel. An old established and wealthy company might with the greatest prudence engage in sinking shafts at Motupipi upon the chance, or it may be probability, of finding good coal at a greater depth, but such a proceeding, involving as it did the chance of expending the whole of the small capital of our Company upon a venture which after all might turn out a blank, your Directors felt to be inadvisable : and more particularly so as they were conducting further exploratory works at Pakawau, where, however imperfect their information might be in other respects, they were at all events assured by «vsry one that the quality of the coal was such as to place it on a level with y the best coals of England.

Being therefore applied to by Dr. Renwick and Mr. Grayling, who were anxious to work the coal at Motupipi, they agreed to waive any claim they might have to a lease of that district, upon the condition of being repaid in coal for their outlay there ; a condition which was accepted, as you will gee from the correspondence on the table. About the same time that Mr. Grayling

went to Massacre Bay, your Directors, with a view to proving further the coal seams at Pakawau, entered into a contract with Messrs. Stoddart and Clark to raise a quantity of coal there, for which they were to be paid at the rate of (Ji. 6d. per ton at the pit 'B month. Under this contract 34 tons of coal were raised, when Messrs. Stoddart and Clark discontinued operations, finding the coal very hard, and not being provided with proper implements. The coal thus raised your Directors afterwards sold at cost price to Mr. John Watts, who undertook to proceed to Maasacre Bay and bring it over to Nelson.

Mr. Stoddart having again returned to Nelson, your Directors, after a conversation with him, were induced to send him a third time, about the middle of April, to Pakawau, to carry out a still further exploration of the coal field there. That gentleman's report we now beg to submit to you, and we beg particularly to call the attention of Ihe shareholders to this fact, that it is now Mr. Stoddart's opinion that the coal at Pakawau may be worked at a profit. To the opinion thus deliberately given we attach considerable importance. Mr. Stoddart is a man who has had practical experience in coal mining, and may therefore be considered as capable of giving a sound opinion upon this subject. And we attach the more importance to it, as being formed after repeated examinations of the district, as succeeding to a less favourable estimate which had been formed in the first instance, and as coming from a man of cautious and patient character, to whose truthfulness and anxious desire to avoid misleading us we feel a pleasure in bearing testimony. To the Directors of the Nelson Mining Company.

Gentlemen — In carrying out the arrangements entered into with you, dated 15th April, 1853, having only one objectj in view, I can have but little to say by way of Report, and the task being light, I enter the more willingly into it.

On arriving at Pakawau, after three days spent in clearing the entrance to the. mine, laying down the tramway, and making a little cart for carrying out the rubbish from the mine, I commenced with the driving of the same (with the assistance of John Clark) in the bearing of the strata, which at this point is five degrees south of west, and in carrying forward this work in the direction above mentioned to the distance of 22 yards, I found the seam to alter several times, the coal having the predominance in one place, and the shale in another; but at this distance I found that a slip or dislocation existed, running at an angle of 45 on the line of bearing or inclination of the strata, which is generally the case in dislocations. This I crossed at right angles bearing nearly north-west. Here the seam, in mining phrase, is cast up on an angle about 70 degrees, a height of 6 feet, where the floor is again found at its usual inclination, about 22 degrees, and here I found the coal to predominate more than in any other part of the mine to the distance of four yards, at which point I left it, being in all 26 yards, from the entrance to the mine.

But here I would remark, before concluding this part of my report, that although this seam is very much mixed with shale, it burns pretty well, and would be suitable for steam, burning lime and bricks, and manufacturing salt v if any pans should ever be erected near the spot; and further, this seam being of a softer nature than the one I am about to describe, it could be wrought at a much less expense in the digging department, and also by less experienced miners than the following.

The time having expired which was allotted for the above mine, and no vessel having come to take us up, I thought the interval might be satisfactorily, if not profitably employed by falling back from whence we raised the 32 tons of coal at D, see sketch of former Report, (this seam may be named the main coal until another is",found to supersede it), and endeavour to ascertain the true state of that seam ; so having laid bare by our former operations 48 feet at one place, in the direction of the strata, I was enabled to obtain a more correct bearing of the seam, which is at this 20 degrees south-east and north-west, with an inclination of a quarter, or on an angle of 22 i ; this giving rise to a difference in my former calculations, and being anxious to ascertain its good quality as far eastward as possible, commenced a new series of operations in that direction. The first was a pit 10' yards op the line from the point marked D ; in this pit we found the coal at the depth of 64 feet from the surface, of excellent quality, in four divisions, separated by three bands of shale, the four divisions of coal amounting to 20 inches, and the shale to 10 inches, making in all 2 feet 6 in. The second operation was a trial on the face of the hill, about midway between C and D, here it was also found very good ; the third trial was up the hill, above C, where it preserves its former quality, but in stretching along the hill for a fourth trial, near to the gully which divides the two hills that our operations have been mostly confined to at this place, we found tbs second or soft seam rather improved ; but on. ascending the hill for a fifth trial shaft 40 feet, which is the distance between the two seams, consisting of shale and fine grained or argillaceous sandstone, we fouud the main coal deteriorated considerably. The sixth and last trial was in the hill above the mine marked A, and here, when I first reached the coal in the evening of tho day befora

we left, I wai full of hope to find it here very Rood, it appeared at first so pure, but next day, when we opened it fully up, it appeared to have passed almost away, and shale to occupy its place. By thus describing our operations to you, you will see its limit in the direction above mentioned, and that any farther survey would be attended with little or no more information, without going into regular operations in working the mines, and the probability is, that it may stretch far beyond this point, however there appears to be a sufficiency of coal to warrant the necessary outlay to bring it to market, provided sufficient labour can be obtained, and prompt measures gone into for operations. Although I cannot come to the conclusion that Pakawau can be ranked as a regular coal-field, yet I am of opinion that the coal there may be wrought to profit, and from its excellent quality, a remunerating price nay be obtained at any time, but more particularly the present, when prices are so high. This coal appears to be very suitable for gas, glass-works, blacksmiths, &c, and such a kind of coal is often found detached from the regular coal field than otherwise. Nevertheless, if operations are carried on in these seams, it will invite a population to the place, and a clearing of the bush, and cultivation of the ground will take place, which will develop the mineral , resources, either by accident or otherwise, which neither search nor survey would accomplish in its present state. And as regards the fitting up for working, and putting the coal on board, it could not be estimated at less than the same I stated in my former report, although the fitting would be on a less scale, owing to the alteration in the price of labour; a few houses for the accommodation of the workmen, and having to carry the railway to the farthest point, {see D on the sketch), instead of only across the mud-flat, will fully absorb the difference in the saving between the two scales, 'but to go into particulars would swell out this report to a greater length than Would be convenient at this time.

Having now hinted a little on the leading points for consideration of the coal field of Fakawau, with your permission I will conclude, by only saying that I had a peep at Motupipi on our way to this place, and that I am prepared to answer any questions, verbally or otherwise, that may be asked, so far as my knowledge will allow. . I am, &c. James Stoddart. I Nelson,*23rd June, 1853. We have mentioned already that we sold the coal raised by Messrs. Stoddart and Clark, and lying at the pit's mouth, to Mr. John Watts. In July last Mr. Watts proceeded to Pakawau, and about three weeks ago he returned to Nelsqn, bringing with him several tons of the coal, having left the remainder at the water's edge ready for shipment. Of the quality of the coal Mr. Watts speaks in the highest terms, after having submitted it to the test of actual experiment in his forge. Of the amount of coal there, its accessibility, and the facility of transporting it to the water's edge, the shareholders will be best able to infer what Mr. Watts' opinion is by our laying before them the proposition which we received from that gentleman :•— To the Directors of the Nelson Mining Company. Gentlemen — I beg to submit for your consideration the following outline of terms on which I will be willing to undertake the working of the coal field at Pakawau. 1. That a lease shall be granted to me of the said coal field, for the term of ten years. 2. That I will lay down a tramroad, and make all the necessary erections and machinery, and find all the implements required for carrying on the works. 3. That I agree to pay the rent required for the said coal field by Government. 4. That the Company will place in the bank of Messrs. Morrison and Sclanders two thousand pounds sterling, the sum to be at my disposal ; and I agree to pay at the rate of ten per cent, per annum for whatever portion of the said two thousand pounds I may draw. 5. That the Company take ail improvements, made by me, at a valuation, at the expiration of the lease. I am, gentlemen, Your obedient servant, John Watts. I Nelson, August 5, 1853. To that proposition it was impossible for the Directors to give their assent ; for to say nothing of the amount of advance required, totally disproportioned to the present means of the Company, it appeared to them in the actual state of their knowledge of the district as a productive coal field, to be imprudent to incur a large outlay upon works which had for their object to afford th» means of carrying a large quantity of cc*l away.

It appears to your Directors that the choice lies between two courses : on the one hand to suspend all productive operations until a report has been obtained from some professional coal viewer of high authority, upon whom full reliance could be placed ; or on the'other hand, to proceed more or less empirically, and trust by actual working and proof, and the gradual discovery and accumulation of facts, to acquire the necesBary knowledge of the character of the coal ■ earns, and the best mode of working them.

, With a large capital at their .command, and a choice of scientific ability, the former would be undoubtedly the more certain, regular, and in every respect satisfactory course. But, in the absence of these conditions, the latter is the course which your Directors recommend to the Company. For it must be borne in mind, that it it a course of proceeding attended with little or no risk. It may be made to pay its own expenses as it proceeds, and although it is undoubtedly rude, and in some sense wasteful of labour, your Directors nevertheless trust that it may prove an effectual means of ascertaining the existence of an extent of mineral wealth whicli would warrant their going to the public with entire confidence, and enable them to raise an amount of capital which would be sufficient to command both the application of the greatest mining skill that can be procured, and the construction of works by which the coal would be brought to market in the cheapest and most economical manner. - Acting upon these views, your Directors, subject of course to your approval, have made a proposal to Mr. Watts, which they will now proceed to lay before you :— Memorandum of Agreement with Mr. Watts.

The Nelson Mining Company to give Mr. Watts a lease of their district at Pakawau, for a period of twelve months; it being understood that Mr. Watts will proceed without delay to work the coal there, and to take all the .steps necessary to bring it into the Nelson market. The Company will advance a sum of money to Mr. Watts, to meet preliminary and unavoidable expenses ; but the Company will not undertake to advance money to construct any works involving much outlay of capital ; the tiew taken by the Directors being, that the coal should be brought down to the mouth of the Pakawau stream with the present road and means of transport. The money advanced to Mr. Watts to be secured upon the coal raised by him. He will >c required to pay 10 ptr cent, interest upon it, and, in addition, to pay the Company the royalty of 1- 15 th required by the Government, either in money or in coal. To the Directors of the Nelson Mining Company. Gentlemen — I accept your proposal of leasing your district in Pakawau for a period of twelve months. I will proceed without delay to Pakawau, for the purpose of commencing operation to bring the coals to market forthwith. The Bum of money required by me will not be less than £200, which two hundred pounds I agree to secure to the Company on tho coals raised by me during the twelve months, paying at the rate of ten per cent, in addition of l-15th required by Government. 1 am, gentlemen, .Your obedient servant, : John Watts. Nelson, August 15, 1853. The shareholders will not fail to perceive that this arrangment is attended with the following advantages. In the^ first place, the outlay required from the Company, and the risk incurred by it, are very small. In the second place, it offers a fair prospect of the Pakawau coal being introduced into the Nelson market almost immediately. In the third place, it will be the means of exploring the coal seams, and adding to our knowledge of the district. In the fourth place, the necessary works which Mr. Watts will construct, will add to the value of their property there. And from the experience they have had of Mr. Watts, they are induced to believe, that his part of the agreement will be carried out with judgment and energy. The Directors have already mentioned that they sold to Mr. Watts the 3 1 tons of conl which they had raised. To transport that coal to the place of shipment, Mr. Watts at his own expense cut a road through the wood, constructed a flat bottomed barge capable of carrying several tons of coal, and a rude dray, and was thus enabled to bring tbe whole quantity down to^the shipping place at a comparatively trifling expense— at an expense, in fact as he assures us, which would be covered by the sale of tbe coal at a price which it would readily fetch in the Nelson market. With this fact before them, the Directors see no reason to doubt that more coal of the same quality may be obtained, carried in the same manner to the place of shipment, and sold in Nelson at a rate which would ensure its becoming an article of universal demand. But to carry out this arrangement with Mr. Watts it will be necessary that your Directors should make a further call upon the shareholders, of £1 per share.

Your Directors have further to report that upon the Governor's last visit to Nelson, they saw his Excellency on the subject of the sum of £50, which had been promised in aid of the undertaking, and upon their shewing to his Excellency a statement of the amount which had been subscribed in this settlement, he immediately directed the sum of £ 50 to be paid accordingly. .

Your Directors also saw his Excellency on the subject of the terms upon which the Government would sell or lease'a block of

land in the Pakawau district, and obtained the following memorandum of terms, which they now beg to submit to the meeting :— To the Directors of the Nelson Mining Com* pany. Gentlemen— With reference to the subjects you brought under the notice of [his Excellency the Governor, in your interview with him on the sth instant, I am directed to state—

Ist. That the Government will>ot dispose of land by sale or lease in that portion of the Pakawau district which is of a mineral character, until a fair period of time has been allowed to the Nelson Mining Company to determine whether or not they will work the coal mines in that district ; such period of time'not to exceed six months from the sth July, 1853, unless the approval of the Government to the extension of the period of six months should be obtained.

2. If the Company determine to work the coal mines, then they shall receive a lease for twenty-one years of a block of land of such form and extent in that district as the Commissioner of Crown Lands may consider necessary to enable them to carry on their operations profitably, and without injuring public interests by monopolizing the coal district or otherwise. Such block not to exceed six hundred and forty acres (640) in extent, unless the special approval of the Government to euch extension is attained by the Commissioner. 3. If the Pakawau district should prove to contain a valuable coal field, and the Company previously to obtaining a lease of it should desire to purchase a portion of the district on which they may have effected improvements, or have made any explorations, the Commissioner of Crown Lands will value the charges incurred by the Company in such objects, and having estimated them at such cost as may appear to them fair, then the land shall be put up to sale at such upset price as may be determined by the Government, plus the sum estimated by the Commissioner of the Crown lands, as that which should be paid to the Company to reimburse them the expenses they have incurred on the coal field. If the Company do not become the purchasers they shall have refunded to them the sum assessed by the Commissioner. 4. If the Company take a lease of the land, the Government will uot offer such lands for sale during the continuance of such lease, except at the request)of the Company, but the Government does not bind itself to offer the land for sale, even if the Company requests it to do so. I have the honour to be, Sirs, Your most obedient servant, M. Richmond. Superintendent. Superintendent's Office, Nelson, July 6, 1853. The shareholders will perceive that the terms now given are much more favourable than those which they had originally expected ; that six months at least is allowed to the Company to select their block and determine whether they will purchase or lease it. That such block may be 640 acres in extent, and will be leased to them for 21 years, and that during the currency of this lease the Government will [not sell the land to any other party but the Nelson Mining Company. And that if the Company, previously to obtaining^ lease should decide upon purchasing the block, in the event of any other party becoming the purchaser, they are to be reimbursed for their outlay upon the district. ' Your Directors are of opinion that it is not necessary to take any steps at the present moment towards either purchasing or leasing a block there. They would prefer waiting aa long as the time allowed them by the Government will admit, so as to bring any knowledge of the district and its mine ral wealth which they may acquire in the meantime to the accomplishment of a task of so much importance to the success of the Company.

The accounts of the Company have been prepared by the Treasurer, and are now laid on the table. They shew a balance in his hands of £28. 16s. lid. One or two accounts of very trifling amount still re* main to be paid.

On the conclusion of the Report, Dr. Monro observed that he believed there were some persons who did not quite approve of the course taken by the Directors, but would go to the neighbouring colonies for capital to work the coal, and be content with the indirect advantages which this settlement would derive from these operations. He did not himself take that view, believing that there was abundance of capital in Nelson for working the coal, if confidence in it was once established. As it was desirable that the shareholders i should have the question discussed, he should be glad if Mr.Elliott. who differed with himself, would state to the shareholders his views upon the matter. Mr. Elliott said, as one of the Directors, he should not have made known his disapproval of the course recom-

mended to be pursued by the Directors nadfhe not been invited to do so by Dr. Monro, for, h«J felt bound to bow ito F the opinions of the other members of the ?u ' l *as {t seeme d to be .the wish ? shareholders to have his opinion, he could have no objection in stating it. Ine arrangement which the Report recommended should be made with Mr. Watts hecould not wholly approve of, as it seemed 4 johim that very little benefit could be derived from it either by the Company or the public. The capital to he placed in Mr. Watt's hands, he was afraid was far too small to enable any quantity of coal to be got out and brought to market, while he thought that a serious injury might be inflicted On their interests by closing the works for a whole year against foreign capital and enterprise, both of which he believed could now be readily procured from Australia. It was in vain, he considered, to seek to raise the capital in Nelson, necessary for carrying on the works at Pakawau with that spirit which could alone ensure the success of the undertaking ; for to do this, including the cost of a tram way to the beach, wharf, jetty, and barges, not less than £5,000 or £6,000 would be required, and it even might require a still larger sum. He did not deny that capital to that amount was obtainable in Nelson; all tha'the meant to say was, that he did not believe it was obtainable for that purpose. While the breeding of stock, and the cultivation of the soil, continued such profitable investments for capital and was capable of extension, he did not believe that speculative pursuits like coal mining, however encouraging might be the prospect it afforded, would induce people to forego the certain returns they were already getting for their money to take shares in a public company. In this opinion he thought he was borne out by the ill success which had attended their efforts to form the present Company, for although a large number of shares had been applied for on issuing the prospectus, upon a a very small number, only 212 in fact, had the single call of £1 been paid. What prospect was there then of raising the necessary capital in Nelson? and without this, the works could only be carried on in a wasteful, peddling, and unsatisfactory manner. As the people of the settlement did not come forward and support the Company, he would invite capital from the neigh bouring colonies to do so, and he had been informed, on what he considered good authority, that provided a really good sample of coal, such as he beleived the Pakawau coal to be, was sent up to Sydney, parties there were ready to send down a really competent viewer to report upon the field, and to advance, if needful, £20,000, either by way of loan to the Company, or in shares, so that all necessary works could be undertaken and carried on in an extensive manner, and by that means the coal, instead of being delivered in Nelson at £3 to £4 a ton as now proposed, might at the outside be sold, and afford a good profit, at £1, or at most £1 ss. a ton. The Directors, he must say, had a difficult part to act, and hampered as they had been for funds, it was impossible to make any satisfactory progress with the works.

The Rev. S. Ironside approved of much that had fallen from Mr. Elliott, but looking at the large sums of money now being invested in land in Nelson, he could not believe but that all the requisite capital for working the coal could be found here, if the requisite confidence in the undertaking was once established.

Mr. For saw no objection to the mine being worked by capital from Sydney or elsewhere.

Mr. Webb was averse to tying up the hands of the Company for twelve months, and would prefer seeing the Directors - prosecute the works themselves.

After some further discussion, it was proposed by Mr. Wells, seconded by Mr. Adams, and carried unanimously, — " That the Report of the Directors be adopted."

A vote of thanks was then given to the Chairman.

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