NEW ZEALAND MINERAL COMPANIES.

Otago Witness, Issue 2302, 14 April 1898, Page 18

NEW ZEALAND MINERAL COMPANIES.

(Fjjom Our Own Corbesposdent.) Lokdon, February. 18., On Monday .last the annual general meeting . tf the New -Zealand -Minerals Company took , place at the Cannon street Hotel. Lord Castletown occupied the chair. The Chairman, in moving the adoption of the . report, confessed that he spoke to the shareholders thst day under the itflaerce some- . what of a feeling of disappointment. The position of their. company was by no means ' Singular, its experience' being practically the Eanoe as that of other companies which had stirbed about the same time. He did not deny • that there were properties ia New Zealand which produced large profits when properly ■ equipped with modern machinery and appliances, but these were not to be found easily without - the employment c* a large smonnt of working capital,.and a considerable expenditure of. time and patiecce. Had the company bean able to carry out the business originally anticipated, the - cost of- their New Zealand organisations would • have been proportionately " large. However, i* ]%hs two properties .acquired by the company had 'been selected' under 'the advice of " a "full and -local' representation. 1 : Independent companies ~'had-beeu formed '-to work those two properties',' .?atfd the "shared in these' two cempaniest-ocepre- ' Vented the assets in- the" balance sheet. - They *■ -Were entered at' only a smaltptopqrtion of their •nominal value.- Before~tbe condition of the ■ markets -had- become- co- seriously altered' " -options were secured upon a large number of properties upon favourable terms ; many of these, he believed,- would have bsen valuable L acquisitions it' the company could- have deal!; with them, but this involved a large amount of working capital, which it was felt would have been hopeless to seek from the 'public. So ifc "was deemed better to forfeit the deposits paid ' rather than to burden the company's resources with a large, ad djtiomd liability. The directorshad every 'confidence in the two properties which had .been taken up and which were being developed by their working capital. On the O P.Q.- property, which was not a ,greafc distance from Dunedin, the reef v could be traced for seven-eighths of a 'mile, and had been proved underground for one-sixbh .of that distance to the depth of 300ffc. It was, *uriferou"s ground, the quartz returned giving ! an asffay value of- lcz per ton. - Handled ' advantageously, such a ■ large amount of "'material' us they possessed in 'that property ■ wculd invblve having a large amount spent. If with the small plant which they bad they could show that the mine could be profitably worked, he felt eeitain that a larger plant would bei'obtained without difficulty. This waa tbe policy the directors advocated, and they hoped to" develop tbe property step by- step' and ultimately to p!»c9 on it a. mill worthy of ifes resources. 'A "valuable I " water race had been - acquired which would- provide sufficient water for all purposes except 'motive power, and they '- bad "also acquired "a small* claim in the centre of the property, and both oi these acquisitions would Ea^araily eahance-ihe value of" the' com-? pany's- pofseasionsi-. Tbo other property held, by the 'company jk»s the Fottunn, (Hsuraki), situated : ne&r, the.. Thames _in the H&urak^ district r,f the .North Island. _Ic. was favourably fiibu&ted M3d joined the__part of the ThatnejH?.uraki gcldftelds," on" "which was the site, recognised by the New Zealand Government for the sinking of the deep' shaft to test the deep levels of the" field. That property was intersected by eight distinct reefs, which would, he ' believed, prove' of great value when further developed. An independent company formed to wosk the property was making satisfactory progress with ifca development, and some, assy samples taken- about the .time the propevt" was offered to them ran as high as 2i,i > to the ton. Naturally the work of developrj-i '.- consumed a large amount of time and rno..^, before aDy return- coold be earned. Next, v • chairman referred to the - question of devotr *, ; Home attention to British. Columbia, where, j k said, going properties could now. be seci'. •*. upon terms that were both reasonable in:. . suitable to such a company as theirs. He d - .' not mean that they should leave New Zeaiav.l 'altogether; but now, in these times of dlff. culty in getting outeige assistance for miiri % ventures, except in those which were absoluti/y proved and profit-earning, bethought tho shareholders would support the directors in the step they had taken in having already embarked in a property in British' Columbia which they were sure would give a quick return. They bid taken an interest in the Whitewater mines of - British Columbia, -the subscription list of which closed that evening, and ??hile he was sorry at being unable to tell -them exactly wbat profb they would' >,reap cub. of " that "deal, he, might tell them that even should the "eoinp'any Dot be subscribed, they would own an ' interaaif earning' a sufficient gum" to provide a rery fair dividend indeed; even upon the"p»id-up bapital of fcheir own cGmpany.-^A'pplauee ) - It' , was only on mosfc earnest consideration that they had decided to embark the funds- of the company .in, any other country than New Zca r land, bat he felt ( sure that the step would be Seemed a wise one. They intended to establish m agency ia British Columbia) based on the

] ptrceutdgs of tbe profits. To provide working 1 j capital for machinery and development work on I their two New Zealand properties, and to carry I oub any good business which might arise — ! whether from British Columbia or elsewhere — | it would be necessary to have funds avai'abla for that purpose, *nd this could only be met by gradually catling up the uncalled capital upon the shares issued. He assured the shareholders, however,, that the board would in' the future,^ as in the pisfe, exerche the utmost ■ watchfulness,- and ha hoped ifc would be his pleasant .duty at the next sifcUng to congratulate the shareholders upon an improved- position. i - The mctioh for the adoption 'of the report was seconded by Mr Richard Popki.«s, managing 1 diivcfcor. h - During the discussion which ensued Mr " Ferguson expressed- the' opinion' that the ex- •• penses of administration were excessive, as al?o i Was, the amount of "the calls which were in arrears — asmely, £5516. Ha inquired, if the board were toking any bteps to enforce the payment of these overdue calls. Mr Hanbury followed in much ihe same strain, . maintaining that the expenses were unduly ' heavy. _, " ' Mr A. J. Marks also expressed this view, and went a step further by tnovirg as an amendment that the consideration of the report'ehouid be adjourned uatil a committee cf_ investigation had been appointed acd had reported upon the account's. ■ Mr Crawford seconded the amendment. It having been explained .that part of the expenses complained ot were unavoidably incurred before the incorporation of the company in taking up certain options, Mr Wethered, one of the director*, pointed oub that at the' time the company wai formed a large amount of attention was directed to New .Zealand, and numerous exploration companies were being promoted. Ifc was thought advisable that this company should place itself in a strong position, and therefore the servicea^pf some very j eminent' gentlemen in the colony had been I feenred ; but circumstances had been against i/Ese company, aud owing to the depressed condition of the markets the directors hud notbeen able to float subsidiary companies as they fully expected to do.' i The Chairman thought th&t the expenses An Lpndon were by no means excessive, considerj ing, that they extended -over a period of one I year and eight months. " Ha admitted that; the ( expenses in-New Zealand were enormous. But I tha.fc' was -the directors' nSiafortune, nob their [ fauffc.' " They, had originally engaged the fe^slr men, they .could procure in "New Zealand, and . suclt'meQj, of course, .hcd to be well paid. They held their ecgagemenirwithTthe-'company under contracfc,- and so theic services coald.not be dispensed with. If the company had done the business thai; was expected the expenses .would not have eeemed so much, because (here would' havß been a return on Iho other side. As to the calls in arrear, the facb was thab many people j who had embarked in many of the mining enterprises had found it by no means easy to pay up their calls in ihe altered condition of things. Ths directors had, therefore, deemed jfc advisable to allow a3 much latitude as possible, and ' had avoided exerting" undue pressure for payment;. But they recognised thab the time had now come when the pai'tn?nt of the calls which were due must, be enforced. The amendment moved by Mr Marks was then put to the meeting and negatived on a show of hands. The original motion for tho' adoption of the report being pub was declared carried, and the meeting closed in the customary manner.