THE PROFITS OF COAL-MINING.

Otago Daily Times, Issue 7002, 25 July 1884, Page 3

THE PROFITS OF COAL-MINING.

TO THE EDITOB,

Sir,—Having, along with sc«me friends, been solicited to take shares in a proposed coal company, I thought it prudent before doing so to make soma inquiries into the position and prospects of several of the existing coal companies, a3 hitherto I have been unfortunate in similar speculations.

The re3ult of my inquiries has rather surprised me, and may prove of interest and profit to many of yoar readers who have an inclination to invest in that direction.

The Kaitangata Coal Company has been prominently put before the public as a sample of what can be done in coal-mining. It started operations nine years ago with a capital of £25,000, and borrowed on mortgage £15,000. Four and a-quarter miles of railway cost £26,000, and the balance haa been spent on plant and works. It has paid dividends for the past three and a-half years, giving actual interest of 4£ per cent, if taken from the commencement.

This Company has had little or no opposition from Duuedin southwards, but if subjected to strong competition the probability is that it will again become a non-paying concern, Shag Point Coal Company has been in operation for about 10 ye.irs, and had a monopoly of the coal trade between Danedin and -umaru, yet it never paid a dividend, and has now been closed for months, with every appearance of its capital of £25,000 being almost entirely lost.

Westport has a nominal capital of £400,000, and, between capital paid up and borrowed, will nave about half that amount employed. It has been in operation between four and five yeara, and yields the best steam coal of any mine south of the line, yet it has not paid any dividend, and its shares are selling at from 40 to 50 per cent, discount at the present moment. Springfield, which commands Christchurch and a largo district in North Canterbury, has been in a good position to do well, yet it has not prospered. - The following schedule shows briefly the position of the principal companies so far as I have been able to ascertain, and is correct to the best of my knowledge :—

Kiilangata Coal Company.—Capital, £25,000; nine years woiking; first dividend in IS3I. Equal to 44 per cent. Irom the commencement till now. Walton Park Coal Company,—Capital, £-20,000 ; 12 years working; 9 per cent, average since 1576. Shares selling at a discount.

Fernh'ul Coal Comrany.—Capital, £25,000; four years working; divider.d nil. Shires not quoted. Shag Point Cosl Company.-Capital,&Js.oCo; 10 yeats working; dividend nil. Closed. Springfield Coal Company. -CapiSal, £100 OCO • Bis years working; dividend nil. Shares not ousted in the market.

Coalpit Heath Company.—Capital, £12,000; line years working; dividend nil. Sbare3 not quoted in the market.

Westport Coal Company.-Capital, £400,000; four and five yearj working; dividend nil. 503 shares quoted at 27s 6d; 403 shares quoted at iOd. ■ Koranui Coal Company.—Capital, £50,C00; five years working; dividend nil. In liquidation. West Wanganui Company — Capital, £50,000" six yeara working; dividend nil. B,y of island* Company.—Capital, £10 000 : 16 years working; one dividend, I believe. Closed. Nightcaps Coal Company.—Capital, £20,000; four yeara working. Thte is a private Company, and lam not sure as to its particulars. I have it on gocd authority, however, thai it haa never paid a dividend. —I am, &c,

Unfortunate Speculator,

July 24,