THE PREMIER AND ADJACENT CLAIMS.

Otago Witness, Issue 1858, 1 July 1887, Page 12

THE PREMIER AND ADJACENT CLAIMS.

The following letter appears in Monday's Daily Times:—

Sib, — In your issue of last Monday "A Premier Shareholder" airs some of those notions, common amongst mining investors, which go a long way towards explaining the failure of mining companies in whose properties really valuable lodes have been worked. Fortunately this letter comes- too late to influence the meeting of the Premier Company, so that it cannot be said that it was inspired or written for an occult purpose. On the other hand, as my letter may help to allay the fears of "A Premier Shareholder" and those who think as he does, I may be excused for trespassing on your valuable space at some length.

"VA" V A Premier Shareholder" evidently is not aware that he exposes the full extent of his ignorance, but probably thinks that he hits the nail on the head when he says : " Surely it does not require that other claims should be joined on to the Premier in order that it should be worked in a proper manner." Now, unfortunately for "A Premier Shareholder," it so happens that such is absolutely .required, if the shareholders in the Premier wish to obtain dividends, for ifc is now a very patent and wellknown fact that the directors through want of funds and enterprise have so managed the mine that the raising of the quartz costs nearly as much as it is worth, and that with every foot advanced the cost increases. It has further been ascertained that in a very short distance the present rich shoot of stone in the Premier will dip beyond the boundary of the claim into the Orient, and it is also quite clear that the portion of the shoot belonging to the Premier will not pay for entering a new low level adit to work it, because there is not enough of it. Had this low level been put in when recommended by the manager — now, I think, three years ago— the Premier would have been paying dividends ever since, and probably be independent of other claims ; but shareholders like your correspondent, who knew better, overruled what plans and calculations so plainly showed. As "A Premier Shareholder" seems to have a supreme contempt for such aids to mining, it is futile to say more about this subject. It is to be hoped, however, that he will fully understand his position as a Premier shareholder from the above plain statements about the mine.

In the Premier case we haye an illustration of how bo many companies at Macetown, which crushed quartz at one ounce per ton and upwards, went smash. That the Premier Company has not yet followed suit in the general ruin is owing partly to the mine manager's actions and good sense and partly to Mr W. T. Farrell's attention paid to the mine during, his visits and that gentleman's knowledge of mining affairs. Df all the olden mines started in this district only four survive. Of these the Phoenix mine at SJrippers is a private concern, and therefore does not count in the present discussion. The others are the Premier and Tipperary, at Macetown, and the Invincible, at the Head of Lake Wakatipu, all of which must be pronounced successful ventures. The Invincible mine is managed by a local directory, the Premier and Tipperary are looked after by directors who pay periodical visits to the works, and make themselves acquainted with the actual state and progress of work in the mines, thus directing affairs in keeping with the mine manager's conception and the actual requirements of the mine. All mines which had to dispense with these facilities went topsy-turvy long ago, and the district suffers for the laches of men who engaged in undertakings of which they knew nothing and did not care to post themselves up ia. In most cases systems— or rather no systems at all— of work were followed by •which a few tons were raised and crushed for the object of raising value of scrip, the recommendations of the mine managers were overruled, mining plans were voted in instances which nobody could understand, or perhaps were never thought of, and so company* after company drifted to its inevitable doom. Had the Macetown mines been properly worked, the field would now be in a prosperous condition, /or the gold is there ; but so long as men of the •" Premier Shareholder " stamp rule companies, no Improvement can be hoped for. — I am, &c, Yotje Wakatipu Corbespondent. Arrowtown, June 17.