THE MANAGEMENT OF MINING COMPANIES.

Otago Daily Times, Issue 8395, 19 January 1889, Page 3

THE MANAGEMENT OF MINING COMPANIES.

HOW THE MONEY GOES,

Under the title of " Leaves from my Log Book " the Eeefton Guardian has been publishing some particulars of a rather outspoken nature regarding mine management in the district, and boycotting is threatened. In its issue of the 12th iu?t. our contemporary says:— " There is too much leakage of the moneys spent in calls in office expenses. Shareholders at q, distance are placed at a great disadvantage, for they have a poor chance of exercising any control over the spending of their money, and even in the election of directors they seldom know how their vote is exercised." The writer then quotes as follows from a balance sheet of a company to show where the calls go to : —

THE LORD EDWARD COMPANY called up £750 of its capital up to June last. Its expenditure during the last six months showed that it had paid out for rent £8 10s; directors' fees, £C 10i; advertising, £3 8s Cd ; for wages, £15 ; aud amongst its liabilities were a further charge of £25 18= 4d for wages, and— mark this item—£loo for legal manager's salary. The dissection of the operations of the company from its creation discloses the following amazing state of things, which I classify for the sake of distinguishing them under two heads :—.- Mf.VE KxT-E.VDfTURK. Wanes ... ... ... £15S 13 0 Kent ~. ~, ... 9rt 210 Mining gooiis ~, ... 31! 2 £258 10 0 Office E.fPExnri'unß. Salnry ... ... ... £ 90 10 0 Do duo ... ... ... 100 0 0 Petty cash... ... ... 0 S 2 "Expenditure ... ... 27 5 9 Stationery... ... ... 7 4 0 Advertising ~. ... 21 0 0 Directors' fees ... „. 49 In 0 Audit ... ... ... 3 3 0 £313 4 11 *No particulars given of what this item is for, but apparently more putty cash.

Tliatjs to say it costs 3ls to spend 255. If this is not an instance of a " ha'pporth of bread to an intolerable deal of sack," then will I apologise and take back all I have said about the matter, but with figures like the above before me, I prefer to suffer the m.irtyrdom of boycottiog which certain of the recipients of the abovementioned fees have threatened me with, to using milk aud wdter as a writing fluid when I see such gross blundering of funds going on, which funds were intended by the shareholders and by the spirit of the act to be .devoted to work on the ground.