NEW ZEALAND MINES.

New Zealand Herald, Volume XXXV, Issue 10838, 23 August 1898, Page 3

NEW ZEALAND MINES.

LATEST LONDON NEWS.

[FROM OTO'OTO-CORRESPONDENT.] London, July 15. CRITICISM OF LEGISLATION. Gold mining in New Zealand is dealt with by the City Leader, the text being furnished by the. withdrawal of the New Zealand Exploration Company from operations in the colony. " It cannot be denied," says a correspondent in the Bullionisl, which that paper values, " that the market for New Zealand gold minins shares is almost nominal. Probably the reason is chiefly the abnormal delay which lias taken place in developing some of the properties, and to the fact that in the rush to attract British capital to the colony, mines, with simply prospects, were rushed on the Home market. The continued depression in a market such as this, which has not the general support of mining investors, has, at least, one good effect, namely, the freezing out of unsatisfactory concerns, and leaving tin market clear with those which, by steady development, have maintained their position, both as regards possibilities of payable re- ( turns and their financial stability." A curious fact is then remarked that, while the market appears to all intents and purposes to be dead, the gold returns show an increase. The Now Zealand Government is blamed for not having done all in its powor for mining, and attention is drawn to the Waihi, Waitekauri, Woodstock, Crown, Talisman, Komata Reefs, and Grand Junction as standing examples of the capabilities of the colony. In the Coromandel district, the Hauraki and Royal Oak are named, and "others in course of development, whose shares standing at pence were shillings a few months ago. This district is particularly attractive for a quick gamble, on I account of the constant changes which i»ke place from time to time." Cable advices from Mr. W. A. Low, ona of tho directors of the Taitapu Gold Estates, who is at present on the property, stato that Mr. Fulton, the mining expert, recently engaged by him, is preparing an exhaustive report on tho Golden Ridge mine, which will be sent by the Brindisi mail, due to arrive here about the middle of August. He also states that crushing operations will shortly be resumed. " Tho one section of the mining area," says the Financial Times, " which has been a s f ntiimal and persistent disappointment is that associated with New Zealand. It is not '..bat there is any loss of faith in the mineral rosourcjs of that colony, but the mining laws distinctly discourago the attention of capitalists. Changes in legislation are constantly being effected, and not only is the result confusing, but the burdens imposed are very onerous—more so than those of tho Transvaal. A yearly tax of Is per cent, is imposed on trading companies, and is applied to mining companies, because their articlos give them power to trade, although their operations are actually confined to mining. A 5 per cant, duty is imposed on all mining machinery imported. Am animal ground rent of 5s per aero is charged for the first year, and 10s per aero aftertvar Is, and 11b labour requirements nro more cx.ieting than thoto of West Australia, one man having to bo employed for every three acres for the first two years, and afterwards one man for every two acres. Then there is not only an export duty of 2s per ounce on gold, but also a yearly income tax of 5 per cent, on all profits, whether distributed in dividends or not. Tliero is also a tax on cyanide, the Government having acquired the rights of tho Cassel Company. Some of these exactions have been imposed since the diversion of capital to Now Zealand followed the collapse of the Kaffir boom, and those financiers who thus transferred their attention find they have jumped out of tho frying-pan into the fire. Every colony boing dependent for prosperity on tho influx of capital, the New Zealandors inusLsooncr or later awake to their astounding folly? as they sco llio money attracted by the encouragement given to raining elsewhere—especially in West Australia. But meanwhile iliero can he little hope of tho interest of the British public in New Zealand mines being rearoused."

Mr. E. Kersey Cooper writes with reference to tho article in tho Financial Times on " The Position in Mines." Ho says:"l was reminded how deplorable it is to soo the thortsightcdness displayed by the New Zealand Go vornment in connection with its mining laws; but, unfortunately, this grievance ia not the only one in connection with mining generally that is working against so important an industry. Some few years ago, whilst in New Zealand, I led a crusado against the export gold duty, a monstrous tax on the industry. Mr. R. Seddon, now Premier of New Zealand, was then tho Minister for Mine*, and was with mo in my contentions, but it was the local governing bodies, who receive the gV'dfields' revenue, that killed my petition, which was largely signed by miners, as well as by merchants and mining mon in Auckland. A like agitation was instituted in tho South Island of New Zealand, without the opposition of the local governing bodies, and tho rrly for that island was abolished. Too much politics is present in tho mining industry of New Zealand, aud no wiser step can be taken by tho English companies than to send out orders forbidding any manager or person connected with an English company to .hold r.ry position in the local governing bodies, or to use any influence with tho employees politically. Tho mine manager, whon ho talks to his men, should talk in the interests of the shareholders, and not a lot of stuff about whom to vote for. If tho mine manager and t'noso in control are told that all their time, 'lttonlion, and support are expected to to directed in tho shareholders' interests, and on 'no account can a servant of the company hold a public office whilst in the employ of the company, a groat evil will be lessened. Export gold duty, high rents, etc. (all goldfield revomie) would soon molt away. Tho yearly tax of Is per cent, imposed on (reding companion," continues Mr. Cooper, "is actually invited by (ho directors of companies, owing to the absurd clauses contained in the ordinary articles of association. Tho five per cent, duty imposed on mining machinery imported is a small matter, seeing thero are so many people in Now Zealand capable of manufacturing mining machinery. This is a grievance generally discovered by that curse to all goldfields, ' tho travelling mining expert,' who just stops long enough in a country to leave it without knowing anything of it, or what is produced in it. ' The lax on cyanide' means simply this. The C'assel Gold Extracting Company acquired tho MoArlhur-Forrest patent rights for Now Zealand, and demanded an exorbitant oharge lo those desiring to use oyanido in tho extraction of gold. The New Zealand Government caino lo the aid of the mining industry, and purchased of the Cassel Company tho rights it had acquired, and chargo merely a nominal royalty for the use of the process. 'The labour requirements' really are not more than those of Western Australia. Protection for non-working is always available by applying to tho warden. During my experience of 18 years' mining, under many wardens in New Zealand, I havo never onco known reasonable protection re-' fused. The law is kept as it reads to avoid tho country being locked up by speculators, without doing'any work on their holdings. Now tho New Zealand grievances are treated with," says Mr. Cooper, in conclusion, "I will point to others that militate against the mining industry generally. Costly management, or, rather, mismanagement, is a far more serious matter than anything I have yet mentioned. Think of tho quantity of directors each mine is called upon to support, most of whom know little or nothing about the mining business, and attend as few _of the companies' meetings as possible, whilst tho item 'directors' fees' is with all companies a serious matter. The sooner a determined stand is taken by the great body of shareholders in mining companies to havo their interests carefully and economically managed, and to bo advised regularly of what is going on at mines so soon as the news is received, tho quicker the oloud of depression hanging over mining will disappear."

NEW COMPANIES. It is announced that the Welcome Gold Mining Company has been registered by 0. Rawlins and Co., 66, Gresham Howe, with a capital of £110,000 in £1 shares. The object is to adopt and carry into effect an agreement oxpressed to be inado between a company with a similar title (incorporated in New Zealand), for the acquisition by purchase or otherwise of the business undertaking, assets, and liabilities of Iho said old company. The first directors are the directors of the Consolidated Gold Mines of New Zealand Company, qualification £100.

With a capital of £150,000 in £1 shares, Humphrey's Hydraulic Sluicing Company has been registered by Clarke and Co., 66, Gresham House.

The Hinemoa Mines-.(Limited) has been registered by Ashurat and Co., W, Throgmorton Avenue, with a capital of £150,000 in £1 shares. THE MARKET.

Again throughout this week the' New Zealand section of the mining market here has been dull and neglected. . Recorded; movements day bv day—which were very few-for the moat na'rt showed further fall in these stocks. For instance, on Wednesday last, while Hauraki shares rallied somewhat, falls were registered in Wnihis, Consolidated Goldfields, Waitekauris, and ' Kapangas, among others. And yesterday reflected the same state of things as the previous day, when New Zealanders were very flat. Waitekauris experienced a fall of 5-16, thus lowering its quotation to IJ. Kauri shares dropped to i, Taitapu to i, Woodstock-to i, and .Waitekauri continued weak. Kom'ata Reefs, which ! slightly .hardened, were the only exception in the right: direction yesterday. ' To-day's quotations ruu thus:— Is 6d to 2s

odjßlagrove, 6d-to Bd; Consolidated Goldfields of New Zealand, to 1|; Hauraki, 4s 9d to 5s 3d; Hauraki Associated, 6d to Is; Kapanga, Is 6d to 2s; Kathleen, lid to 45a;' Kathleen Crown, lid to 4id; Kauri) 1 to 5; Komata Reefs, 3s &d to 4s; London and New Zealand Exploration, 3-16 to 5-16; New Hauraki, 6d to 9d; New Zealand Crown, J to 15-16; New Zealand Joint Stock and General Corporation, i discount to par; do, Founders, 2* to 34; New Zealand Talisman, Ito J; New Zealand Consolidated, i to i; Preeoe's Point, 3d to 6d; Royal Oak, Is 3d to Is 9d; Taitapu Gold Estates, 3-16 to 5-16; Thames Hauraki, i to i; Union Waihi, i to i discount; United New Zealand Exuloration, i to J; Waihi, *i to 4j; Waihi Grand Junction, 13-16 to 15-16; Waihi-Silverton, i to i; Waitekauri, li to li; Waitekauri United, 9-16 to 7-16 discount; Waitekauri Extended, Is 6d to 2s; Waitekauri Cross, ito J Woodstock, ito s :