NEW ZEALAND MINES.

New Zealand Herald, Volume XXXVII, Issue 11535, 21 November 1900, Page 6

NEW ZEALAND MINES.

[FBOM OUB OWN COBBBSPONBENT.] London, October 20. ' THE WAITEKAURI. Mb. Thomas Russell had reason to congratulate the shareholders of the Waitekauri Gold Mining Company at their annual meeting last Tuesday, for he had to speak of a profit made of upward of £10,000 more than in the previous year, while £31,000 had been paid away in dividends. Much of this satisfactory progress was due to the change from dry to wet crushing. But it was also partly due to a better knowledge of the mode of treatment, and some of it was undoubtedly due to richer ore having been obtained ,in the mine. Even on this satisfactory position Mr. Russell expected an improvement in the current year; he, however, commented upon the "injudicious character" of the Government gold duty, which he described as "an arbitrary impost and really a tax upon capital;'" it was a tax "especially hard upon mines that do not proluce high results," and was "as , undoubtedly a check upon mining enterprise in New Zealand." The report was adopted, and Mr. Bristow, of the New Zealand Insurance Company, was re-elected a director.

Prior to the meeting of the Waitekauri Gold Mining Company this week, the Mining Journal commented in the following strain upon the directors' report:—"Unhappily there are very few New Zealand mines whioh have succeeded in realising the high hopes predicted of them in their early days, and what with the losses which investors in New Zealand mining have suffered. and the difficulties put in the way of the industry by an unenlightened Government, it is no wonder that capitalists have 10-ig looked askance at any new mining 'enterprise connected with this colony. If, as our correspondent remarked last week, we could only have a few more Waihis and Waite kauris, we might look forward with confidence to a timo of activity and prosperity in the new century, but as there is little or no likelihood of any such blessing attending the colony, we are afraid that the future of the goldtield will not be dissimilar to that of the immediate past. From the annual report of the Waitekauri Gold Mining Company, we gather that the company has had a very successful year, while, at the same time, the prospects appear to be exceedingly hopeful. ... As regards the prospects, wc are told," continues the same writer, " that the Golden Cross leof in the fourth level has boon proved to carry the richest and most satisfactory ore yet found in that lode. The opening of the fifth level is now in hand, and the result should soor: bo known. The discovery of the Southern Cross lode is already proved over a considerable area to carry high-grade ore, while stress is laid upon the satisfactory output from the mill by the wet crushing process, both in respect of the quantity and value of the ore treated and the extensive exploration works now in hand in the moit important parts of the property. The "shareholders have evidently no need to look to the future with any apprehension." Referring to the remarks made by Mi. Thomas Russell at the meeting of the Waitekauri Gold Mining Cdlkpany, on Tuesday, the Financial News says ho " voiced th« opinion held by the shareholders in the few New Zealand mining undertakings wbi-;n manage to produce gold in any considerable quantities, in describing the Government gold export duty— by the way, is on y levied on the output of the North Island — as iniquitous. This utterly arbitrary tax upon capital is in addition to the annual ront payable to the Government for the occuu'. tion of ground, and is also in addition to the income tax. It is, as Mr. Russell pointed out, especially hard upon mines which do not produce high results, and is undoubtedly a tax upon the mining enterprise of Ihe colony, which is so greatly in need of StaM assistance."

THE HAURAKI ASSOCIATED. At noon last Monday a special meeting of shareholders of the Hauraki (New Zealand) Associated Gold Mining Company, was hell for the purpose of considering the advisab eness of reconstructing the company after a voluntary winding-up. Mr. E. T. Read presided, and in addressing the shareholders said the object of the meeting was an extremely simple one. It was to decide whether the company should be reconstructed or wound up. There was not the slightest doubt that if the company wero wound up, and the assets realised, t.iare would not be sufficient to distribute anything among the shareholders. The scheme, to be submitted to them had l)cen drawn up with a view to meeting the wishes of those shareholders who desired to join in the reconstruction, and those who had i>een in favour of the scheme of winding up.'. For every 20 shares in the old, they were to receive under the scheme one share in the new company. Of course, the value of those shares would depend on the measure of success of the new company. They knew that the property was a gold-bearing one, for they had taken between £9000 and £10,000 out of the upper workings alone. Ail mining was a lottery, especially in New Zealand, and the reason why they recommended the scheme was that dissonting shareholders would have a run for their money at other people's expense. It was their only chance of getting their money back. Ho moved the resolution authorising tho voluntary winding up, and the formation of a new company, with a .capital of £60,000 in tEO.OOO shares of 2s 6d each.

Mr. Butcher, a member of the Shareholders' Committee of Investigation, seconded by Mr. do Lissa, another member, opposed the resolution, the latter saying that not one per cent, of the New Zealand shareholders would go into the new company. If the scheme were agreed to, he hoped the present shareholders would get one share in every 10. The Chairman said lie would try to get. that, or, at least, one for every 15. The scheme of reconstruction was ultimately adopted. » " Reconstruction or dissolution? This," remarks an Anglo-colonial journal, " was the question which the shareholders of the Hauraki (New Zealand) Associated Gold Mines had to decide on Monday, and after weighing the pros and cons they decided on the former. The scheme adopted provides for the formation of a new company with a capital of £60,000. divided into 480.000 shares of 2s 6d each, and gives the shareholders the right to apply for the same number of shares in the new company as they hold in the present company. The shares are to be credited with 2s paid. * It was forcibly pointed out to the shareholders that in the event of the company being wound up there would in all probability bo nothing to divide among tho slrareholders, whereas by the present scheme every shareholder will receive fully paid-up shares in the reconstructed company more, than equivalent to his shore of the assets of the company, and it rests entirely with the shareholders whether they come into tee new company or not." QUOTATIONS. There have not been many movements either way this week in the New Zealand section of the London mining market. In the early part of the week Waihi shares, <n profit-taking, were a turn lower at a quotation of 10 15-16; yesterday they declined another fraction, and were quoted at 10£. Wail)- Grand* Junction shares have been slightly lower at 2 3-16; while Komata. "Reefs are a trifle harder to-day, tho latest quotation being Is 9d to 2n 3d. Current prices for othei New Zealand shares to-day are: — Consolidated Goldfields of New Zealand, 1 9-16 to 1 11-16; Glonrock, 6d to Is; Hauraki, Is 9d , to 2s 3d; Kapanga, 6d to Is; Kauri Freeholds, 3s 6d to 4s 6.1; London and New Zealand Exploration, 7-16 to 9-16; New Zealand Copper, 1 to 1£; Royal Oak, l|d to 7id; Taitapu Gold Estates, 3a 6d to 4s id: Union Waihi, 1 to 1&; Waihi, 10 13-16 «.o 10 15-16; Waihi Grand Junction, 2 1-16 to 2 3-16; Waitekauri, 2 1-16 to 2 3-16; Waite kauri Extended, Is 3d to Is 9d; Woodstock, 5s to 6s. GENERAL. "An Old Shareholder" in tho Waihi Gold Mining Company writes to the financial press asking the opinion of other shareholders in the company "as to whether it would not be advisable to ask the directors seriously to consider the question of splitting the shares, and issuing, say, 10 or 11 £1 shares for '.he £1 shares now held, and which stand at the market value of £11. . At their present market value they are much more difficult to deal in than if their present value was in the region of 20s. This suggestion seems to me to be in harmony with present-day opinions. I may say I am a considerable holder, and not a seller, and my only dosiro is to add to and establish tho present excellent position of this very successful company, which I believe to be governed by its directors with every regard for truth and keeping the shareholders advised on all developments as they occur." This letter is followed by another, written by one who signs himself Another Shareholder," who also writes in favour of splitting the shares. He says: "I myself wrote some time ago to the directors on the subject, and they then promised to keep the matter before them. It is not only that, as your correspondent urges, the shares become difficult to deal in at £11, but it must be remembered that much higher prices are looked foi by those who are best acquainted with the company's affairs. The now mill alone will practically double the output and profits. Consequently, the diffioulty is likely to lie come an increasing one as time goer on.

There is the probability, too, of fresh capital being required to develop the newly-discover-ed lodes, and to add to the plant, and if the shares were divided this would seem a good opportunity to provide the amount required." Among dividend announcements this week, the Progress Mines declare a dividend of is per share, . and the Consolidated Goldfields a second dividend of 2s per share. Referring to the latter, the City Man of a London paper says: "In sending out warrants for a second dividend of 2s per share the directors of the Consolidated Goldfields of New Zealand have availed themselves of the opportunity to inform the shareholders of the progress > made in the development of the company properties since the annual general meeting in April last. From the circular issued I gather that the work done on the Wealth of Nations and Golden Fleece groups is of a ve-y encourtging character, and that crushing will bo begun on both of them before the end of the current year. With the exception of the Progress Mines of New Zealand, however, which has just declared a fifth dividend of Is per share, the subsidiary companies do not appear to be shaping well. The exploration work being carried "on at the Welcome has failed to open up additional ore of payable character, and the Humphrav3 Hydraulic Sluicing Company is cot expected to begin operations until February next.