NEW ZEALAND MINES.

New Zealand Herald, Volume XXXVI, Issue 11201, 23 October 1899, Page 6

NEW ZEALAND MINES.

• LATEST LONDON NEWS. [from our OWN correspondent.] iLosdos, September 15. NEW ZEALAND MINES TRUST. ANNUAL MEETING. £100,000 DEBENTURES FOR EXTENSIONS. There was a good attendance of shareholders at the ordinary general meeting of the New Zealand Mines Trust, held at the Cannonstreet Hotel on Tuesday last, at noon. Mr. Thomas Russoll presided. In their report the directors stated that the statement of accounts for the year ending March 31, 1899, showed a balance to the credit of profit and loss of £40,803 16s, but for the reasons stated in tho report they did not at present recommend any division of profits. " The agency business of the trust lias increased, and is increasing," the directors proceeded. "The money earned by this department being specially applicable to management expenses, has enabled the trust to maintain at its several agencies a reliable and efficient staff, to the great advantage of the trust and its clients. During the year good progress has been made in tho development of properties in which tho trust is interested." Next, the report stated that tho New Zealand Mines Trust were large shareholders in .the Waitekauri mine in New Zealand, which was being developed with satisfactory results. At tho Lady Charlotte mine, in West Australia, tho mill had been completed, and the mine was now paying, instead of requiring a large expenditure on capital account. Further capital expenditure upon the Ruby silver mine, in New South Wales, was not required at present; tho purchase of tho property had been completed, and the ore opened up during tho last two years was being sloped for sale. Tho works of tlio Ohinemuri Syndicate, at Owharoa, in New Zealand, required further outlay before the value of the properly could be ascertained. During the year the trust had acquired three new properties in Now South Wales, and one in Victoria, all of considerable promise. Tlieso undertakings had absorbed a large amount of money, which had been obtained by using the profits shown in tho accounts, and by loans from tho directors and their friends. Further amounts would be required during the current year. To provide funds for repayment of these temporary loans, and to meet obligations ill connection with tho new properties, and also to provide funds for any new property which it might be desirable to acquire, it was intended to raise the sum of £100,000 by an issue of debentures, to bear interest at the rate of five per cent, per annum, tho debentures to he convertible into ordinary shares at the option of the holder. The success of this issue,to the extent of the requirements of the trust, had been guaranteed without cost to the trust, but the debentures would bo offered to the shareholders in the first instance. The directors looked forward with considerable confidence to the operations lof the trust during lie current year. In tho balance-sheet the principal items on the credit side were:—By investments at cost price, shares and debentures in various companies, freehold properties, interests in mines in course of development, £312,685 (she contingent liability for calls on the investments to joint stock companies was £0297); sundry loans and advances, £15,015 19s; sundry dehors, £2485 19s; cyanide, furniture, and miscellaneous stores in New Zealand and Australia, £12,561 9s; amount paid in respect of patent rights of Cassel Gold Company, £1012 8s; cash balances in London, Australia, and Now Zealand, £4090 9s: total, £347,852 4s. The profit- and loss account for tho year on tho same side showed: Balanco from last account, £29,572 19s; balanco of realised profits on sale of investments, etc., and dividends received, £14,716 6s; miscellaneous receipts, £3223 19s; making a total of £47,513 ss.

General expenses in West Australia, New Smith Wales, and Now Zealand totalled £7264, less £3742 receipts for company management. The New Zealand item was £1186. The proceedings having been formally opened, the Chairman moved the adoption tion of the report and accounts. In doing so ho said:—During the last two years we have met with a few lossos, which will have to lie written off, and some shrinkage in values: but, as you will tee by the accounts, we have made considerable profits. Tlio shrinkage in the values of shares is the most important, and arises in some instances from the property not having proved so good as it promised, lint mainly from the length of time and large amounts of money required to complete the mining works of undoubtedly good mines in which we are largo shareholders. In this category I include the Wailekuuri mine, in which we bold shares of the present market value of over £100,000, but which have cost us more. This will all come back later on. Then wo are large shareholders in the Crown and Wondstook mines, both good properties adjoining, and which, in the interest of tho shareholders of both properties, should be united and worked under one management. The Woodstock has suffered from slack management, and the company will have to be reconstructed; but as the mine is a good one I do not anticipate ultimate loss on our Woodstock holding. In such holdings we have a considerable lock-up of money not easily realised when required for other investments as they offer. These results have been disappointing, but not serious. If we had restricted our operations 12 months ago wo should have been able to continue paying small dividends, but wo should have reduced the trust to small dimensions, narrowed its operations down to a point approaching stagnation, and deprived it of that progressive and speculative element which induces people to hold shares of this description. To stand still in a trust like this would be disastrous; moreover, it was not necessary. We thought if belter to tako the holder, and I believe the safer, course, and to expand, extend, and push ahead, to increase the area of the company's operations and opportunities for soouring successful results. Many considerations which I need not detail, and which could not be discussed with advantage, influenced the directors in the course they have taken. They confidently appeal to shareholders, not merely to acquiesce in, but cordially accept tho conclusions they have arrived at as the best that could be adopted. Mining is slow work, and where profits are dependent upon mining results the process is a much slower one than a mere market business. I have little doubt that if in the management of this company from the outset we had made share dealing a more prominent feature we should have realised more money than we have done; but from the beginning our objcct mainly has been to get results from mining operations, to win the treasure from the earth rather than to make it by market speculations, and though our progress has been more slow, and sometimes has failod, on the whole it is much more interesting, legitimate, and pleasant work than mere slmrebroking. The Chairman went on io refer to the operations in Australia, and to the proposed issue of debentures. He concluded as follows:—In the shares of this trust, investors have an opportunity of obtaining, at a very moderate rate, a share which will give them an interest in a great variety of bona-fide mining enterprises, none of them at present of that sensational character which attaches to a few of the mining shares in West Australia, but all of which are selected with care by men who know their business, and take pains to avoid the pitfalls which attend the purchase of ordinary mining shares. This spreading of the risk of loss over many such investments must be advantageous to the shareholder in the trust: the risk of loss is lessened and the probability of success is increased. This share gives him an interest in an undertaking cheaply and honestly managed by directors who hold nearly threefourths of the shares, who, as I told you onco before, will lose 9d out of every shilling the trust may lose; so that if large shareholding by the Board is any guarantee of safety, you have it here. Further, as far as I am concerned, I have never diminished my interest by the sale of shares, but have constantly increased it by the purchase of more shares. Here, then, you have a. good run for your money. My earnest advice to shareholders is to hold their shares, not to diminish their interest to the trust, to hold on with the hope, which I have very strongly, that our next annual meeting will disclose a fair amount of success. (Applause.) Mr. H. J. Bristow seconded the motion, The motion was put and carried unanimously. On the proposition of the chairman, seconded by Mr. Bristow, the retiring directors (Sir James Fergusson, Bart., M.P., and Mr. C. E. Russell) were re-elected. Mr. C. T. Moore having been reappointed auditor of the company, a vote of thanks was given to the chairman and directors, and the proceedings were brought to a close. NEW COMPANIES. One of the latest company registrations announced is that of the Mananu Gold Mining Company, which has been registered by Mr. W. W. Box, of 28, Great James-street, Bedford Bow, W.C. . There is a capital of £100.000 in £1 shares. The object is to adopt- and carry into effect an agreement expressed to be made between the Hauraki Peninsula Exploration Company (in liquidation) and the liquidator thereof of the one part, and this company of the other part, for. the hcquip'wn of certain mine#, mining [rights, etc.

Also among this week's company registration notices appears that of the Tfiniru Creek Gold Mining Company, which has: been iregistered by Messrs.'.: Greemp and Co., of 1 Eo, George-street, U ™X £""' lvl S ranital of the company is *? 5 > Uo "'. iX shares of 10s each. The objects are to acquire certain mines, mining rights, etc., in the Hauraki district .of New Zealand upon the terms of an agreement made between a company with a Jmilar title m hqmdation, and the liquidator . thereof, andll • A. J. Lavington as trustee for and on behalf of this company. MISCELLANEOUS.

It is the opinion of the Financial News that " the annual statement of the Cluster for Mines for New Zealand furnishes gratifying proofs of the steady progress and expansion of the mining industry, more particularly in regard to the Auckland goldfields • The important position which the Auckland goldfields hold as compared with tlio other quartz workings of the colony is clearly shown by the fact that of a total of gold yield of £723,15+, the Auckland fields contributed £575,642. Nelson and the West Coast, £109,019: and Otago, £08,493. New Zealand's gold returns, taken from the New Zealand Hebaj.d, and acknowledged, are given in the Manchester Guardian, as also are the Herald's remarks on the mines statement. ' , ■ Mr. H. Hornibrook's prospecting operations in the Italian province of Erythrea, Abyssinia, aro being watched here with interest in mining circles. City papers aro noting that the dredging operations to bo earned on in South Australia will bo similar to those which have met with "so. much success" in Now Zealand. _ Owing to the summer holidays, nothing has been done of late in respect to the proposed comprehensive amalgamation of Thames properties, of which I wrote some time ago. City men are now returning, and arrangementsare being made to resume negotiations. I hear that Mr. Banbury, of Auckland, is endeavouring to secure the inclusion of the Kuranui-Shotover into the scheme. He has communicated with the New Zealand owners of the property on the subject. _ Mr. Banbury came Home principally on business connected with the Hauraki Main Lodes, and ho informs me that he has arranged certain terms by which the purchasers agree to hand back the mine and plant, instead of expending the balance of the working capital, ; as was the arrangement when ho originally sold it. For some time negotiations have been in progress for the amalgamation of the Hauraki Main Lodes and tho Hauralu South, but the difficulty has been to agree on a basis of valuation, and. negotiations have now ceased with that company. But Mr. Banbury tells me that he has been to Scotland to see other financiers. and at present is negotiating with what ho believes to bo a very sound corporation. He hopes to complete arrangements by which work on the mine can be started almost immediately. I am informed by the secretary of the Hauraki South Gold Mining Company that the circular to shareholders, promised at the recent meeting, will, in all probability, be issued early next week. It is announced to-day that the directors of tho Progress Mines of New Zealand have declared a dividend of Is per share. Mr. Lavington informs me in reference to the reconstruction of the Tararu Creek Gold Mining Company that it is based 011 an assessment of Is 6d per share. One shilling of this is payable on application and allotment, and the remaining 6d in six months from first allotment. With the capital raised by this scheme the liabilities will be extinguished, and so soon as developments justify it, a further 10-stamps will be added to the 30-stamp mill now at work.

QUOTATIONS. Quotations to-day for Now Zealand mining shares run : -Consolidated Goldfields of New Zealand, 1J to 2j (these figures are the result of a riso of i which took placo vesterday); Hauraki, 2s 6d to 3s; Hauraki Associated. 3d to 9d; Kapanga, lr id to Is 3d; Kauri Freehold, J to I; Komata Reefs, la to Is 6cl; London and New Zealand Exploration, J to J; New Zealand Consolidated, Is to 2s; New Zealand Joint Stock and General Corporation, i dis. to par; Do., Founders', U to 2; New Zealand Talisman, i to J ■ Progress Mine of New Zealand, li to 18; Royal Oak, Is 4£d to Is 7Jd; Taitapu Gold Estates; 6s 6d to 7s 6d; Union Wo'ihi, Jto A; United New Zealand Exploration, 4 to iifi V' 11 7 5-16 to 7 7-16; Wailii Silvorton, 9-16 to 11-16; Waihi Grand Junction, 3 to 5' r1 aite ''. 2to 2£-; Waitekauri Extended, 4s 6d to ss; Waitekauri United, 9-16 to 7-16• V, oodstock, 3-16 to 5-16. 1