NEW ZEALAND MINES IN LONDON.

Otago Witness, Issue 2251, 22 April 1897, Page 18

NEW ZEALAND MINES IN LONDON.

(Feom Oub Own Cobbhspondhnt.) London, March 5,

The directors of the New Zealand Exploration Company have decided to recommend the payment of a dividend of 2s 6d per share on the ordinary shares, and £6 9s 6d on the vendors' shares. This will leave a sum of £306, which is to be carried forward to the next account.

It has been pointed out to me that in some oases a good deal of de'ay has occurred in con" nection with the flotation of New Zealand mines through the fact of the London lawyers consulted in the matter possessing insufficient knowledge of the New Zealand laws affecting such matters, and of the proceedings which have to be taken in connection with the transactions. It is very desirable that those who are sending Home mining properties, or^wko bring them Home, when they have to call in legal assistance they should make quite sure that they are going to the right men.

So far from there being any revival in the mining market this week the general tane is, I am afraid, more gloomy than ever. It i« not so much the Cretan crisis now that keeps things dull, although that is not without its influence, direct or indirect, upon the market. The most prejudicial influence is exercised by the state of affairs in South Africa Mr Cecil Rhodes's evidence before the Parliamentary Commiltee has not tended to put a brighter face upon things, and President Kruger's latest move toward virtual autocracy has had a greatly disquieting effect. It is of no use for New Zeal&uders to say all this has nothing to do with New Zealand, and ought not to affect the prices of New Zealand mines. The fact remains, as I have pointed out on former occasions that any "slump" in the Soubh African market has always a reactive effecb upon New Zealand mining shares. And ib is so at the present time. One mining authority remarked to me yesfcer-

day, " The condition of the mining market may ba summed up in oue single word, dead. There is nothing aoiug. What little business appaara to D 9 transacted is merely en paper, and recorded with certain objects in the way of influencing shares. It is with very few exceptions, if any, merely nominal, and so sreall the changes of quotations that appear from day to day in the papers. I suppose there is no objection to people quoting shares at arbitrary prices if it amuses them to do so. Ih is quite possible that they would not sell their shares at lowf-r prices than those they name. But what I want you to understand is thit there are no actual sales being made at these quotations. There is nothing doing."

In conversation yesterday with Mr Faithfull Begg, M.F., he Btrongly confirmed all that I bad previously heard as to rhe dullness, of the market and the disinclination of British capitalists to touch any mines that had nob been satisfactorily proved. " People in London," said Mr Faithfull Begg, "havo become utterly disgusted at the way properties have been poured in upon them. One London flnane'er who has had a good deal to do with the promotion of mining companies told me only yesterday that a man had just called upon him with literally a bagful of mining properties. Out of this bag he brought out no fewer than 18 mining proparti-s which be wanted to sell. Of course they were all virtually undeveloped properties, and the price asked wan high tven if they had been proved to be all that they professed to be. I need hardly say that no sale came off "

*• Impre'B upon your New Zea^ud readers as strongly «.« you possibly can," continued Mr Faithfull Begg, •• that undeveloped properties or properties for which a large price is asked will not be even looked at nowadays in London. Nor will they, in my opinion, for some time to come. No doubt there will be an improvement in things by-and-bye, but in my judgment the lead will come from West AuntraHa or British Columbia and not from South Africa or Now Zealand, although thesn will doubtless partake of tho resulting benefits."

Yesterday I had a long chat with Mr David Ziman about New Zealand mining in all its phsnes, but the net result was that he strongly confirmed the opinion expressed by otli* r experts with whom I talked, that just for the present the market was hopelessly dull and inactive.

Notwithstanding the general stagnation of the mining market;, however, Messrs Stokes and Wither have succeeded in forming the ne v company which I mentioned lately that they had in band — namely, the London and Auckland Exp 1 oration Company. It has bow been duly registered and the prospectus is out to-day. It is to operate in New Zealand Australia and Tasmania, but especially in New Zealand, where it will carry on mining exploration and development. The capital is £250.600 — namely, 250,000 ordinary shares and 600 founders' shares, all Gf £1 each. The proSts will bo applied first to pay a cumulative dividend of 8 per cent, on shares other than founders', while, if any surplus, 75 per cent, will b9 distributed in a further dividend on the Bon-founders' shares, and the remaining 25 per cent. amoDg the founders. An exceptionally Btrong board of directors has been secured, all the directors being members of very irfluential Stock Exchange firms. Thsy were Messrs Edward Chzenove, Ernest G. Mocatta, Charles de Pass, and Edward Wngg. The local board in New Zealand will comprise Messrs Lawrence D. Nathan, John B'Owd, and H. E Partridge The directors believe that Nevf Zealand offers an excellent field for the operations proposed, and that tho present lime is favourable for the formation cf an exploration company, as, in their opinion, tbe recent reaction in mining values makes it probable that interests can now be acquired at reasonable terms.

On Thursday next the ordinary general meeting of the New Zealand Exploration Company will be held at the Cannon street Hotel, when the report of the directors — Com to I. de Camonc'o, Marquis D'Hautpoul, Sir Westby Perceval, Messra- Jacques Kulp, R. G. Levy, J. H. Luk*ch, and Ecueßfc May — will bo presented. The report and accounts are for the •period ending December 31, 1896. Tho aggregate profit resulting from the company's operations during this period amounts «o £52,726 9s 6d, including a sum of £95 249 18s premium realised on the sale o? sharcc v the company, and appearing in the balance sheet; *s reserve fund. The profit and loss account shows a credit balance of £27,4-76 11s 81, of which the directors bave decided to cc*; apart a sum of £16,500 as provision against depreciation, as per clause 109 of the articles of association. Of the remaining balance of £10,976 11s 6d, the directors recommend the distribution of 2* 6d per ordinary share, and of- £6 9s 6d per founder's share. The distribution amounts to £10,670 6a 3d, being £9375 to ordinary shares, and £1295 6« 3d to founders' shares, leaving £306 5s 3d to be carried forward to the credit of the ordinary shareholders. It may be remembered that the company in its present form was incorporated on January 10, 1396, when it took over the business and t>ssets of the previous New Zealand syndicate. The balancs sVeat therefore shows the result of tho company's operations for very litUe less than 12 months, and the distribution on the ordinary shares represents 12£ per cent, of the paid-up capital.