KOMATA REEFS.

New Zealand Herald, Volume XLVI, Issue 14000, 4 March 1909, Page 3

KOMATA REEFS.

s-- Sir,—l would like to supplement ' with '"a;-'-few remarks the letter recently appearing in the Herald by " W.H.Y." The very unsatisfactory market quotation for Komata Reefs shares of which " W.H.Y." so justly complains is clue to the equally unsatisfactory manner news from the mine is disseminated. Take the last three reports to illustrate. In the official report for the four weeks ending December 26, 1908, the mananger states, North drive, No. 1 reef, No. 5 level unpayable." This 'was published in. the Herald on February 13, 1909. Later, news from the mine, i.e., a cable to London published in the Herald on January 23,' states, No. 1 reef, No. 5 level north, averages 4ft and the value is £4 55." Thenext and latest news from the mino is a cable to London, February 19, 1909, reporting No. 1 reef, No. 5 level north, reef averages 2ft and the value- £3. Incidentally I would like to know why the • manager stated in his oncl of December, 1908, report that the No. 1 reef, No. 5 level north, was unpayable. The last two cables would appear to be eminently satisfactory. Many think the Komata Reefs is a small concern and that the shares are Is shares, whereas the shares are 5s fully paid up,, and the company is quite a big affair, fully equipped with a most up-to-date plant, equal to treating 100 tons of ore per 24 hours, with the keenest gold-saving devices yet devisedSome of the large mining companies' at Waihi are paying royalties to the Komata Reefs Company to use their patent Brown' circulating tank. What is required at Komata is a much more vigorous development of tho mine, so that sufficient ore may be obtained to keep tho battery running the full time and capacity, which is 2400 tons of ore every four weeks. The Komata Reefs has been a regular bullion producer for tho past 10 years and stands fifth on the .list as regards gold returns, having produced to date £320,000. Out of this large sum shareholders have received but very little. A. mine of tho sort is regarded by the management as a sort of annuity, , and the shareholders, the real owners, get no considera-. tion at all, the London management, the-;; cables, and the working expenses at Komata absorbing the major portion. It seems «■ great evil that so much money, which should rightly come to the scrip Jiolders, should be paid away for cables and London office expenses. There is a remedy, which could be made swift and effectual. The Auckland province is now populous and wealthy, so why not with a strong pull altogether clear the London market of all or nearly all 'tho,; • shares of the five companies now ruled froiri, that centre and have the head offices trans- f_. f erred to Auckland city? There is fine officeaccommodation now in Auckland, and it would add much to the business activity and prosperity of the city. „*[ ' ; „._■;• :** A Country- Shareholder, >*,

Hamilton.. f