The Invincible Quartz Mining Company, Limited,

Otago Witness, Issue 1958, 30 May 1889, Page 11

The Invincible Quartz Mining Company, Limited,

Ebitob Witness, — Sir : I saw with astonishment in the Witness a letter from Mr A. Mor« I risby, dated the7tb',March 1889, re the Invincible mine, in which' he aiade the following state* ments, siz. : — (1) That the directors frittered the money away, instead of following his advice to wind up the company and to distribute the £1500 amongst the shareholders. (2) That the Invincible Oompany owed £1800 to the bank about three years ago, and that through his skilful management he found the lost lode, atiil won within six months sufficient gold not only to pay off the overdraft, but also, to pdt £1500 to the reserve fund. " . (3) That the director* wanted to put the property into the London market, and that he, as * shareholder owning 1000 shares, threatened; the' 'directors, if they persisted, to expose the whole thing as a swindle, and hence their spite* ful comments, as though he had wronged them. Please allow me space in your paper to state the plain facts, which can be verified by the books of the company, so that the public may judge what truth there is in Mr' Morrisby's assertions. In doing so I will not enter into what to my belief were the reasons why Mr Morrisby was so anxious to have the company wound up, snd to have the money divided, buft shall merely confine myself to answering his three statement*. I may here f-rate that the board of directors from first to last (whether rightly or wrongly) put implicit confidence in Mr Morrisby's management/ even .against the views of ".those 'shareholders who were I 'm com* miunication with' the men working tinder Mr Mbrrlsby. "'. -■•*.. ...• _> ;: .'. The answer to the first statement is tfiat tha ; iuine hM^aid gince Mr Morrisby left £1312 lOt in. dividends, and besides' having gpent £894 $k

§d on the miue, &c, the company have now still £102 7s H cash on hand, but out of this they got in the 190 from the tributors for stores, &c. To the second statement the answer is that the company owed at the time (the 17fch April 1886), wtu-n Mr Morrisby took charge of the miue, £13-8 11-> Jl<i (and this amount was re* duced h$ .^ call wtiieh brought £175), and not £1800, as Ali- AJorrisby stated. Instead of Mr Morrisby taking all the credit of getting the gold, he should have stated, in fairness to Mr James Edward Davis, the then mine manager, that he merely followed Mr Davis' drive for the reef. Thero is no complaint to make against Mr Davia for not striking the reef, as the directors fceld on the 2nd March 1886 a meeting, at the mine, and stopped Mr David from further prospecting; and although he requested them to allow him another fortnight's prospecting, they made him there and then haul up the stone from the reef underfoot of the then workings. The directors had to adopt this course, even at a sacrifice to the cotopany, as they were owing then £1800, and were pressed by the bank to reduce their overdraft. Mr Davis reduced the liability of £1800 to £1328 lls lid from the 2nd March 1886 to the 17th April IBB6,although he was under heavy expense in working the iniue in the way he had to do. Mr Morrisby asked the directors on the Ist of April 1886 to be allowed to inspect the mine, and if necessary to suggest alterations in the workings ; and to this the directors agreed. Mr Morribby spoke in his report about the splendid prospects of the mine if skilful management were employed. I sent to Mr Davis a copy of Mr Moresby's report, and aaked him for his views, so that the directors could consider both • at the same time. Mr Davis, however, on the 17th April 1886, sent in his resignation, as he felt confident that he would be discharged after the directors had read Mr Morrisby's report, which he said was quite at variance with that Mr Morruby read to him at the mine, as his intended report. In resigning Mr Davis stated that it looked as if Mr Morrisby wa3 fishing for his billet. Mr Morrisby was appointed mine manager on the 17th April 1886, and this explains why Mr Davis could not carry out his prospeciiug for the reef in the machine levt.l. In regard to the third statement, which every reader mubt Acknowledge is as scandalous as anything can be, unless it is based on undeniable facts, I will stab- 1 the plain facts, even if I must trespass further on your space. The suggestion to float the mine in the London market came from Mr Morrisby himself, who wrote on the 15th January 1887 asking the directors to put the mine in the London market through a friend of hia, a Mr Hugh Mosman, who was then in London, and whose address could be got through Mr Mosman's London brokers, Messrs M'llwraith and Co. The reason Mr Morrisby gave for his advice was so that sufficient funds would be available to work the mine properly. The directors at once adopted Mr Morrisby's advice, and the necessary papers, with Mr Morrisby's report, were sent to Mr Hugh Mosman, care of Bank of New Zealand, London. Mr Morrisby in his report stated that " he can safely recommend the Invincible mine to any company or capitalists as a legitimate and valuable property." On the 2ud February 1887 Mr Morrisby sent me a private letter for Mr Hugh Mosnaan, London, and advised me to get Mr Mosman's London address from the National Bank at Brisbane, to wnich bank I wrote at once, but getting no reply I then wrote, on Mr Morris by 's suggestion, to Mr Mosman's brother-in-law, Sir Thomas M'll wraith, Brisbane, from whom I got on the 29th March 1887 a wire that Mr Mosman was on his way out again. And this is the reason why our endeavours to float through Mr Mosman our mine in the London market came to a standstill, and the papers are all still lying at the Bank of New Zealand, London. Mr W. H. Dickson, of Dunedin, offered in Juno 1887 to flout our mine in the London market, aad Mr Morrisby then, and even to his final report to the shareholders for their meeting of the 14lh June 1887, reported favourably on the mine. Mr Morrisby left Queeustown for Dunediu about the 25th June 1887 to attend during the winter months, when the battery wa3 stopped, the classes at the University, for perfecting himself in the smelting of ore, and left a man in charge of the mine.- This man and others were prospecting, and he even as late as the 27th July was reporting favourably on the mine, although at that time rumours against the mine were, being circulated in Dunedin. Mr Morrisby returned about a week after that from Dunedin, and without going to the mine changed his opinion about it, and handed in his resignation, as he purposed to go out of the colony, advising, so as to suit his own ends, the directors tv have the company wound up. Anyone reading the company's correspondence with London or with Mr Dickson must admit that the direotors in nowise described the prospects of the mine in a better light than they actually were. Trusting in justice to our company that you will find bpace for this letter in your paper, — I am, &c, F. W. F. Gsisovr, Legal Manager, Queenstown, May 20.