THE OTOGO DAILY TIMES SATURDAY, AUGUST 19, 1899.

Otago Daily Times, Issue 11506, 19 August 1899, Page 4

THE OTOGO DAILY TIMES SATURDAY, AUGUST 19, 1899.

The suggestion which Mr Fergus made at the annual meeting of the Hartley and lliley Bench Dredging Company that the time has arrived for the formation of a Mining Institute in Otago is one that should not be permitted to drop. Vast interests are now centred in the mining industry in this provincial district. The welfare of practically the entire community is bound up, in the success of the industry. The desirability of securing that in matters affecting the interests of the hundred odd dredging companies which have been established mainly by Otago capital the views of the whole, or the majority of them, may be expressed through one channel must bo apparent. A represen-

tation from a combination of a. largo number of companies would necessarily carry more weight than the representations of single companies. Thero are various ways in which the establishment of an institute would, from that aspect

of the question, bo of benefit to the mining companies. Notably would this be the case in regard to the mining laws. The development of the dredging industry lias introduced new conditions in mining for which the law has made either inadequate provision or no provision at all. Moreover, there are inconsistencies in tho law, and there are points of doubtful meaning in it. Its provisions in some respect are differently interpreted by different tribunals. A warden in Otago, for example, has held that the pegging of a claim prior to application is not necessary ; a warden in Auckland, with this ruling before him, has decided that the intention of tho law is that the land must be marked out before application is made for it. This is an illustration of the perplexing points which crop up in tho working of the Act, however much it may be an improvement upon the confusing mining laws that were previously in operation. It would he within the province of a mining institute to direct the notice of the Government to points, a; they occur, upon which the terms of tho Act and the regulations are doubtful. AY hat is the business of every one of the mining companies at the present time in such an event is attended to by none. There are provisions in the law, too, which, if they were strictly enforced, would seriously hamper the industry. Such questions as those relating to riparian rights and the provision for the forfeiture of mining areas for technical breaches of the conditions of occupation might be considered, by an institute. Upon subjects of this kind a representation to the powers that be from an association such as Mr Fergus proposes—a non-political body, as it would be—would come with a good deal of force and with more appropriateness than from the Chamber of Commerce, which has, we observe, through its Mining Committee, taken up the question of the necessity, of urging various amendments of the law. Mr Fergus suggests further that the Mining Institute shall protect shareholders from being "fleeced," by undertaking to impart to them reliable information respecting all legitimate mining ventures. This would be a desirable step in the interests of timid shareholders who arc innocent of all knowledge of the methods that are adopted to "rig" the market. In addition to this, it is proposed that the institute shall protect the* public against the promoters of worthless companies. This function will be found a more delicate one, and possibly more difficult of performance, but if the public can be protected from unscrupulous company-mongers by the establishment of a Mining Institute a strong additional reason is afforded why there should be no delay in taking the preliminary steps towards its formation. At the present time there is no effectual means of guarding confiding people against the intrusion of worthless concerns, and a plan' which would offer some protection to them would be welcome. We are, however, hardly prepared to go the length of agreeing to the suggestion implied in a question of which.Mr J. A. Millar, M.H.R., has given notice in the House, that a prospecting branch should be added to the Mines department, so that any proposed gold mining company that so desires may have a report from the department printed on its prospectus certifying that its claim has been prospected by the department's authorised agent, and that the report attached is a true statement of the results of his investigation. The prospects that may be obtained are by no means a reliable guide to the value of a dredging clairii. The certificate of the Mines department's agent might be exceedingly misleading. In that event, and if shareholders who invested on the faith of the certificate incurred loss, would the State accept the responsibility? No one is likely to suggest that it should, but if it was not prepared to do so it would admit the possible fallibility of its own officers, and it is not desirable that the State should bo placed in a false position through the failure of a company started on a Government certificate.

In the House of Commons on the 3rd July a financial resolution was passed,

at the instance of the Chancellor of the

Exchequer, upon which to found a Bill for the transference to the Imperial

Government of the administration of

the Royal Niger Company. The terms upon which the transfer takes place are

that in return for the surrender of its charter the company receives £805,000 from the Imperial Treasury, and the British Government takes over the vast provinces which the company has won

in West Africa. The consideration money represents either debts contracted by the company for public objects, with the authority of the Government, or advances made from trading profits in aid of administrative expenses, or the value of lands or mineral rights which it is thought desirable by tho Government to take over, or of buildings, steamers, war materials, and other properties which the new Imperial administration will require and the company, as traders, will no longer need. The terms are not regarded as satisfactory by the company, for they include no real compensation for the revocation of

ho charter, and no compensation for he risks the company incurred, and

these were not inconsiderable. It was, however, recognised to be necessary that the Government should acquire the

territories which the company, has administered, and the question as to the terms was not how much the company ought fairly to receive, but how much

tho Government would consent to recommend Parliament to give. The administration of the company's territories

has outgrown the resources of a private body of traders. There are, moreover,

important political reasons why the Government should exercise exclusive control. These Sir Michael Hicks-Beach

pointed but to the House of Commons. Chief among the reasons is the friction

that has occurred in "West Africa between France and Great Britain. This state of things was terminated by the

treaty which the French Government recently ratified, but "il had become clear," the Chancellor of the Exchequer said, " that the company was not capable of discharging with complete satisfaction our international obliga-

tions," and he added that if the Niger Company had been allowed a free hand

in its dealings with tho French there might have been a conflict, resulting in a terrible war. This statement does not harmonise exactly with the boast of tho company that at no timo during 13 years of government had the Secretary of State—the controlling power under the charter—found it necessary to differ

from its policy or to object to its procedure. However, the Imperial Government deemed it to be necessary to organ-

ise a AVest African frontier force, and the existence within the territory of an Imperial as well as a civil authority led to difficulties, which forced on the Government the step or counselling the revocation of the charter. When the transfer is completed, then, the Royal Niger Company will have ceased to exist as an administrative body, and in its stead a direct system of Imperial administration will have been established. It was in 1886 that the company obtained its charter. It had at that time already been established for seven years, representing at its inception the union of many separate trading interests, which up to that date had competed at their own cost for native favour. After it had been in existence for two years the scope of. its operations was extended, its intention being to endeavour " to bring into direct relations with the company the empires of Gaudu and Sokoto, which stretch through nearly 15 degrees of longitude and five degrees of latitude." In the accomplishment of this object it was brought into active competition with two French companies, supported by tlie favour of the French Government. After a determined struggle the French companion allowed themselves to-' be bought out, ;Jasi in. time, to enable the British Plenipotentiary at the Berlin Conference of ISSi to state that " the whole trade of the Niger basin is at the present moment exclusively in British hands." Then followed the race for, Lake Tchad, and repeated trials of strength with France and Germaiiy, culminating in a successful campaign against the Emir of Nupe, in which, in 1897, Sir George Goldie vindicated the authority of the company throughout Nigeria. By the efforts of the company a vast territory in West Africa has thus been subdued for Great Britain, which, but for its efforts, would in, all probability have now been under the- flag of some other nation. ;. ,