NEW ZEALAND MINES.

New Zealand Herald, Volume XXXIV, Issue 10425, 24 April 1897, Page 3

NEW ZEALAND MINES.

LATEST LONDON NEWS.

[FROM OOP. OWN CORRESPONDENT.] London, March 20. HAURAKI DEVELOPMENT SYNDI" CATE. Mr. Henry Reynolds, who has been appointed general manager of the Hauraki Development Syndicate, left on Wednesday last by the s.s. Britannic for New fork, whence he will proceed by rail to San Francisco, joining there the mail steamer for Auckland. I believe that the Syndicate already lias on hand as many properties as it I is disposed to deal with just yet, and if more i are wauled I fancy that Mr. Reynolds has his eye upon them. So it will be of no use to "rush" Mr. Reynolds on his arrival with a torrent of miscellaneous offers. Just before he started I had a long talk with Mr. Reynolds on the present position and prospects of New Zealand mining. He was as emphatic as ever in impressing upon me that the London market is not only very flat at present, but is pervaded by as strong a disinclination as ever to take up speculative mining investments, or even to cousider any mining properties that do not come with very substantial recommendations. " There is also a disposition, said Mr. Reynolds, " to tako up a new stand in regard to mining properties. Some of the London syndicates are disposed to insist on future contracts with vendors containing a clause to the effect that if, after spending certain sumout of the working capital within a prescribed time, no satisfactory results are obtained, the company shall be at liberty to refuse to spend any more capital on that mine, but to divert it to other directions. There is any amount of money available just now," continued Mr. Reynolds, " for investment ill New Zealand properties, and it will be invested if only the New Zealanders will do their part in the matter, and will show that things are all right. But if they want to sell their properties, they must be prepared'to give their proofs. Vendors henceforth will have to give their proofs that the property itself does contain a good auriferous reef, and that it has some definite practical prospect of turning out to be dividend-pay-ing, And it will always be difficult now to get any part of the purchase money paid in cash, unless the 'property is shown to be a very good one indeed—something quite above the ordinary average."

WAITEKAURI CONSOLIDATED. A case connected with New Zealand mining matters came before the law courts on the sth instant, when an application on behalf of Mr. W. H. Barber was made before Mr. Justice Kekewicl), to the effect that the register of the Waitekauri Consolidated Gold Company should be rectified by the inserting therein of the name of the applicant as the holder of 8000 fully paid shares in tho company, and claiming damage and costs consequent on the refusal of the company to insert the name. Mr. Macnaghten, who appeared on behalf of the company, asked for an adjournment, on the ground that the affidavits wero only filed on the previous day. and on the further ground that the defendants had a substantial answer to the case. They contended that tho transferor under whom the plaintiff claimed hail no right to the shares in question, the transfer being, as they alleged, for no consideration. Moreover, the company claimed the right under their articles of association to be satisfied before registering a member of the company, and they averred that in this case they were not satisfied. Mr. Owen Thompson, who appeared on behalf of Mr. Barber, stated that his client took his transfer and held the certificates. He contended that this constituted a good title against the company. As it appeared that both parties wero practically ready for the case to be tried, the learned Judge ordered that it should go into the witness list, and this was done accordingly.

COMPANY MEETINGS. NEW ZEALAND EXPLORATION. The annual general meeting of the New Zealand Exploiation Company was held on the I Ith instant, at the Cannon-street Hotel, Sir Westby 15. Perceval in the chair. The Chairman, before moving the adoption of the report, dwelt on the great loss the directors of the company had sustained in the sudden death of their chairman, Baron James de Hindi, who was chiefly instrumental in the formation of tho company, and to whose business acumen and knowledge of New Zealand much of its success was attributable.

Sir Westby Perceval proceeded to state that the Jlaiquis d'Hautpoul had been appointed a director in tin: place of the late Baron de Hiisjh, anil lie expressed the opinion that the new director's connection with several powerful associations iu Paris would secure valuable co-operation for this company. Although it was an English company, a large proportion of the shares were held in France, and this alliance with their French friends was an additional source of strength. The shareholders were to be congratulated on the result of the first year's work. With a paid-up capital of £75,000 they had, during the first year, made an aggregate profit of £52,726. This included £25,24!) premium on sale of shares, which the directors had placed to reserve, That left a balance available, after paying all expenses, and providing for all ascertained losses, of £27,476, which, of course, would enable them to pay a much higher dividend than the 12J per cent, proponed. The directors thought, however, that tho shareholders would approve their decision to place £16,500 to reserve, which, with the sum already mentioned, made a total of £41,749. It was thought prudent to. declare a dividend, which some might deem too low, and to strengthen tho position of the company by building up a substantial reserve. Hie Chairman proceeded to say that their business manager in New Zealand, Mr. R. R. Hunt, had proved a most zealous and competent officer, and the company's staff altogether was thoroughly capable. Great benefit had resulted from the establishment of their Paris office. During the year the company had acquired and disposed of the New Zealand Crown mines and the Aroha mine, both well-known properties in New Zealand. The former had in the past year realised gold to the value of £'29,683, and the output would be largely increased at a less cost by the adoption of the wet crushing process instead of the dry. Tho Aroha property was being developed' with very encouraging results, Certain rights for an area of about 100,000 acres of freehold and leasehold land in the Coromandel Peninsula had been acquired from the Kauri Timber Company, and valuable discoveries had been made iu many portions of it. Arrangements bad been made to form a subsidiary company to prospect further and develop this area, and there was every reason to believe that the veutuio would prove of great value. After dwelling at some length on the remarkable development of mining operations in New Zealand during the past year, and he large influx of English capital, both on a scale hitherto unknown in the colony, and pointing out that the new activity was not confined to Auckland, but extended also to Westland and Otago, Sir Westby concluded his speech with the following observations i—" The gold mining industry of the colony lias never looked so promising as it now does. Time is, however, a necessity, especially in the case of mines controlled on this side of the world and i situated on the other, A year in tho life of a I mine is very short, and when plant lias to be erected and machinery imported the first year's operations do not often show much results. 1 am induced to make these remarks in order to show to you that the directors have great confidence in the future of mining in New Zealand, which is, so far, the field we have selected for our operations. There will be a certain number of failures, no doubt; but, on the other hand, there will undoubtedly be a sufficient number of successes, to prove that New Zealand must, from this time forth, be regarded as one of the permanent and payable gold-producing countries of the world. The. Marquis d'Hautpoul seconded the adoption of the report, which was agreed to. In reply to a question by Mr. Hallam, as to the amount of the company's holdings in the Aroha and New Zealand Crown Mines, Sir Westby Perceval said he did not think it was advisable to go into details, but he assured the shareholders that every possible cire had been taken in respect of the investment, and there was not the slightest cause for alarm. The company had made a very handsome profit tin both these purchases. Mr. Hallam explained that his reason for asking the question was the great fall which had taken place in the value of the shares. But Sir Westby pointed out that al^ shares had unfortunately fallen in value during the last few weeks, but he predicted that they would soon (?) up again. , The retiring directors, Messrs, J. H. Lukach and J. Kulp, were unanimously reelected, and the resolution was carried that Sir Westby Perceval, Compte de Camendo, Marquis d'Hautpoul, and Messrs. Ernest May, Raphael Levy, J. H. Lukach. and J. Kuip constitute the present board of directors of the company. A dividend was declared at the rat* of 2s 6<l on the ordinary shares, and £6 9s 6d per founders' share. The auditors were reelected, and a vote of thanks to the chairman and directors was carried unanimously, •n the motion of Mr. Isaac, seconded by Mr. Cummings, Sir Westby Perceval, in acknowledging the compliment, said that a great deil of the luccen which bad attended the

operations of the company was due to th« efforts of the staff, both in London and ir New Zealand, and he paid a special tribute of praise to the energy and ability of Mr. Hunt in New Zealand. The meeting then terminated.

ANGLO-CONTINENTAL GOLD SYNDICATE. The second annual meeting of the AngloContinental Gold Syndicate took place on Wednesday last at Winchester House, Mr, W. F Turner in the chair.

The report of the directors states that the capital has been increased by the issue of 91,000 shares at a premium of £1 per share, making the total issued capital £191,000. These premiums, less expenses, have been carried to the share premium account. The profit and loss account showed a credit balance of £33,110. The directors considered the result satisfactory, especially as some of the most important transactions carried out could not be included in the accounts for the year 1896. Full provision had been made for depreciation. A dividend of 13 per cent, on the ordinary shares and a further dividend of £2 12$ lid per share on 1000 founders' shares were proposed, and £1433 would be carried forward.

The chairman, in moving the adoption of the report, pointed out that it covered a period of thirteen months. He reviewed the fluctuation in the market during that period, which, generally speaking, had been extremely unfavourable to the realisation of cash profits, lu these circumstances he thought a dividend of 13 per cent, was satisfactory. He pointed out that owing to the late dace of issue the new capital nad had little opportunity of contributing to the earnings of the year. At the end of the year they found themselves with a cash balance of £111,340; debtors £46,750, from which had to be deducted creditors' £11,870. leaving £34,880, making in all £146,220 available for the purposes of the syndicate. No credit had been taken for profit received on shares, while all investments had been written down to the lowest market prices. _ This might seem a drastic method, but it was a safe one. One of the principal events of their financial year, the chairman went on to say, was the formation by them of the United New Zealand Exploration Company. It had a subscribed cauital of £130,0110 and had received £20,000 in share premiums. That company was the outcome of a visit which he (the Chairman) had paid to New Zealand in the early part of last year, when he had had the good fortune to secure the services of Mr. Henry A. Gordon who was tor many years chief inspecting engineer to the New Zealand Government, and also of Mr. James Park, director of the Government School of Mines at the Thames, those gedtlemen being the highest authorites of mining in New Zealand. Thus, in them and in their staff, the United New Zealand Exploration Compauy possessed an organisation second to none. It had done much and was still doing important business. The directors of the Anglo Continental Gold Syndicate had seats on the Board of that company, aud this syndicate was entitled to participate substantially in all the company's business. The syndicate thus had _ a permanent interest in the best class of New Zealand mining business, from which satisfactory results were anticipated. Among the properties in which they were interested were the Moauataiari, May Queen (Hauraki), and the Cambria, all in the Thames district. Many other properties were being prospected or developed under options, a group of which, together with the mining rights over extensive freeholds, would be acquired by a development company, which the United New Zealand Exploration, Limited, had arranged to form jointly with the New Zealand Exploration Company, Limited. The remainder of the chairman's speech had reference to business in Western Australia and elsewhere. The report was adopted, and Mr. C. Wichmann was re-elected director, the chairman remarking that that gentleman was the largest shareholder in the Syndicate, and that lie had never sold one of his shares. The meeting then terminated in the customary manner.

NEW COMPANIES. The registration of the following new companies, whose sphere of operations is to be in New Zealand, is announced: With a capital of £150,000 in £1 shares, the Karaka. limited, has been registered. With a capital of £'250,600 in £1 shares, 250,000 of which are ordinary shares, and 600 founder*' shares, the London and Auckland Exploration Company, Limited, lias been registered. The Good Luck Gold Mines of Mew Zealand Company, Limited, has been registered with a capital of £75,000 in 5s shares. Another new company is "on the stocks," and its prospectus has just reached me. It is to be called the British Columbia, New Zealand, and General Mining and Finance Corporation, Limited. It will have a capital of £150,000 in £1 shares, of which 100,000 will be issued at first. The directors are Sir A, Armstrong, Captain D. Bayley, General P. 1). Henderson, the Hon. I*. B. Petre, Mid Mr, D. F. Carmichael. The advisory board in New Zealand will consist of Professor Arnold Tubbs, Mr. D. Donald, and Mr. J. M. Smith, all of Auckland. The new company is to acquire, inter alia, a property of one hundred acres iu the fiauraki district, locally known as "Campbell's Freehold," which is surrounded by the Little Jessie, Comet, Golden Point, and Mata Reefs Companies, and has been reported on by several experts, one stating that the stone from the mine yielded from 2oz to 7oz ot gold, and loz to 2oz of silver per ton. Of the total normal capital, £65,000 will be available for working capital. The purchase money for the gold properties to he acquired has been fixed by the vendor at £30,000, part in cash, and the balance of £55,000 in cash or shares, at the option of the directors, There are to be no founders' shares, preferred or deferred shares, so that the entire profits will be divided among the holders of the ordinary shares.

MISCELLANEOUS. The Hon. J. B. Whyte's principal mission to England this time is, I believe, to bring about the flotation of the N.S. W. Gold Company, Limited, of which he is one of the directors. The company has been formed to deal with gold mining properties, chiefly in New South Wales, and especially with certain properties selected on behalf of the United Colonial Exploration by Mr. Whyte as the local director of that company, after careful persoual exploration of this and other properties iu New South Wales and elsewhere. The prospectus has just been privately issued iu an attractive form, but no information is as yet available as to the prospects of flotation. A special paragraph is devoted this week by the Sketch to New Zealand ininiug. It deals principally with the speech of Sir Westby Perceval at tho recent meeting of the New Zealand Exploration Company, and it draws attention to the remarkable development of the mining industry of New Zealand during the past year, noting especially the facts that 97,000 acres were passed through the Thames Warden's Court alone for mining purposes, this area representing 1000 special claims and 200 licensed holdings. "The London and New Zealand Finance Company," remarks the Weekly Sun, "is just now making a great spread at Auckland, under the guidance of Mr. Spencer Ellam, known to many promoters in the city of London, Mr. Cecil Hartridge, we understand, is returning to London, and soon as he has impressed his friends with his very favourable views of the colony, we may see the commencement of a boom in New Zealand shares," According to "Tay Pay's" paper," the opinion is general that New Zealand shares will develop considerable iuterest ere long. New Zealand has undoubtedly a bright future, and investors will do well to bear this fact well in mind." I learn from Messrs. Stokes and Wither that the London aud Auckland Exploration Company, which they have placed, will go to allotment on Monday next. It will not be advertised in any way, as the whole of the money has been privately found. Mr. Frecheville, who is reputed to be an expert of great ability and eminence, has been engaged at a very high salary by the London and Auckland Exploration Compauy as mine manager, and has just left for New Zealand. Mr. Frecheville, I hear, enjoys the reputation not only of special ability, but also of singular caution and freedom from over-sanguineness, his usual tendency being to take cognisance rather of difficulties than of more favourable prospects. It is felt therefore, that should his opinion of the company's New Zealand properties be satisfactory,_ such a verdict will possess more than the ordinary value, and will be regarded as virtually assuring the success of the undertaking. Many of the city sharebrokers interested in New Zealand mines are complaining to me with some degree of acerbity that they cannot get any reports from most of the New Zealand mines of anything definite being done in the way of obtaining actual returns, such as would promise an early dividend. Various vague rumours have been afloat during the last week or two as to an alleged intention on the part of the African Austral Syndicate to close up all their" operations in New Zealand and abandon that field. I have been making enquiries on the subject, but find it very difficult to obtain any definite information of a trustworthy character. Possibly more may already be known on your aide of the water. . In conversation to-day with Mr. H. Seavers he informed me that the New Zealaud Broken Hills Company wa« going on very satisfactorily, and with excellent prospects of success. I believe I have mentioned already that it was taken up privately with a capital of £300,000, and a working capital of £•20,000, and that it has a further reserve of £20,000 for additional working capital, the directori being Messrs. Albert Hess, H.

Sea vers, H. Landau, Albert Studd, and J. W. Chesham. This company was practically floated by the African-Austral Company and the New Zealand Goldfields Company.

LATEST QUOTATIONS. The following are the latest current prices for New Zealand mining shares Achilles, Is 9d to 2s 3d; Anglo Continental Gold Syndicate, 2i to 2|; do. Founders, 35 to 40; Aroha, Jto f; Blagrove, Is 9d to 2s 3d; Consolidated Goldfields of New Zealand, 2J to 25; East Hauraki, 9d to Is 3d; Glenrock, la 6d to Is 9d; Gloucester, Is to 2s; Hauraki, lis 9d to 12s 3d; Hauraki Associated, Is to Is 6d; Kapanga, 8s 3d to 8s 9d; Kathleen Crown, Is 9<i to 2s 3d; Kathleen, 2s 6d to 3s; Kauri Freehold, li to 1|; Komata Reefs, lis 6d to 12s 6d; Komata Queen, 2s 6d to 3s; London and' New Zealand Exploration, jto 11: Maoriland, 9d to Is 3d; Moanataiari, l&to If; New Zealand Consolidated, jto J ; New Zealand Crown Mines, 1 to U; New Zealand Joint Stock and General Corporation, If to ljj pm.; do., Founders', 10 to 12; New Zealand Minerals, i to j; do., Founders', 6 to 10; New Hauraki, Is 6d to 2s; Preece's Point, Is 9d to 2s 3d; Royal Oak, Is 3d to Is 6d ; Taitapu Gold Estates, 111-16 to 113-16; Tokatea, Is 3d t<> Is 9i; Triumph Hauraki, 9d to Is 3d ; Thames Hauraki, J to J; Union Waihi, ItoApm.; United New Zealand Exploration, 14 to lj|; Waihi, 6to 61; Waihi Silvertons, | to l\ Waitokauri, 3 to 31; Waitekauri Extended, 5s to 6s; Waitekauri Cross, i to §; Waitekauri United, i to J pm.: Woodstock, 1J to 2s; Hauraki South, 7-16 to 9-16; Ireue, 3s to 3s 6d; Success,ls to Is 6d; New Zealand Talisman, 11-16 to 13-16.