SCANDINAVIAN WATER RACE COMPANY(REGISTERED).

Otago Witness, Issue 2416, 28 June 1900, Page 20

SCANDINAVIAN WATER RACE COMPANY(REGISTERED).

The annual general meeting of shareholders hi the Scandinavian Water Race Company was held at St. Bathans on Wednesday night. There j was a large attendance of shareholders, and for the first time for many years the Dunedin share- j holders were represented by two of their number. The company has been in existence for over 30 years, and formerly paid good dividends. ■ For some years past no dividends have been paid, but since September last a new policy ■ has been inaugurated, and with the most satisJactory results. The shareholders, and espe- I cially the Dunedin shareholders, have displayed an active interest in the 1 company, and it is < highly satisfactory to know that from this time forward its affairs will be on an entirely different basis. The company, besides possessing its extensive water race, has also tbree or four claims comprising highly payable ground. The policy up to within a short period ago has been to sell its water, and to use any spare water on its own claims. The spare water has been mighty little, and as it was not getting paid for the great bulk of water it was selling, the profits were not, to say the least, calculated to provide dividends. The company therefore have now stopped the sale of water, and are U3ing it upon its own claim, with the result that within period of some 8 months it washed up for BOOoz of gold ; while about ,£IOO worth still remains in the boxes. In addition to that, the company purchased for £1600 the claim and water rights of tne St. Bathans Company, and spent about £1200 in putting the newly-purchased race into good order. This purchase is considered to bo eminently satisfactory to the Scandinavian Company, as it gives it rights to an additional 18 heads of water. This item alone is considered to be worth the purchase money ; but one paddock in the claim was worked for four months with the result that a yield of gold to the value of £700 was obtained — nearly one-half the purchase money. The rest of the gold in the wash-up — 620 ounces — came out of the company's Surface Hill claim: Another feature regarding the property which will be hailed with satisfaction by the shareholders is that the Scandinavian lace, the new race, bought from, the St. Bathans Company, and the whole of "the plant, is in excellent order. The manager (Mr Neil Nicholson) has been devoting his energies ever since he was appointed to achieve this result. The races have been widened m many places, and strengthened, and 'everything is ready for a flying start aa soon as the winter is over. The yield last year averaged about 3£dwt per cubic yard, and the ground to be worked upon next year is considered even better. Tho area to be worked upon is all stripped and ready for elevating; while if there is any spare water it will be utilised to work some shallow ground on the Town claim. As the company has now in all the rights to 43 heads of water from the Manuherikia River, very probably there will be sufficient to spare for this portion of the property. In Mr Nicholson the company possesses a skilful and hard-working manager. He has without doubt considerably improved the property, and the success which has attended the sluicing operations, begun in earnest in September last, augurs well ior the nest wash-up. The affairs of the company •were discussed at great length at the meeting of shareholders, and it was admitted that they were now on a better basis than they have been for many a long day, and if the policy of developing their ow2i claims with their own v^ater be consistently pursued, as no doubt it will be, shareholders may look for steady and profitable dividends. After the balance sheet which was submitted had bee,i adopted, the following were elected directors for the ensuing six months : — - Messrs Ewing, Pitcheis, Hunt, Garty, M'Coanochie, and Thomas Hyndman. The latter gentleman will represent the Dunedin shareholders the directorate. AN OLDOTAGOI-TE ON THE WEST COAST. TO THE EDITOR. Sir,- — Having been asked by some of my friends to give my opinioa ol the West Coast as a dredging field, T beg tc state that I am certain it will turn our the laigest field for die'dging in New Zealand. The following is a summary of my observations : — A large belt of country carries gold from Ro?3, via Kanieri, Kuniara, Maori Gully, Nelson Creek, Napoleon Hill, Noble's, Snowy River, etc., which is known as the " main lead." This couutry is cut by several main rivers — namely* the Hokitika and Kanierij Ahahura,

Teremakau, Arnold, Ahaura, Little Grey, and Srowy River. The four last-mentioned are " tributaries of the Grey River. These rivers all have their courses beyond this belt 01 auriferous country. The rivers (or what the West Coast people term creeks) that rise in this belt of country are Waimea, Kapitsa, Greenstone, New River, Deep Creek, No Town, Red Jack's, Nelson Creek, Callaghan's, Orwell Creek, Brandy Jack's, Duffer's, Half-ounce, Noble's, Waip^lna, etc. j The washdirt of the main rivers (Snowy ■ River excepted) is lougher than the rivers that > j riso in this auriferous belt, and, except the j ! Grey and Snowy, Rivers, is also rougher than | ,' most parts of Otago. I consider the country j arouad Hokitika, Ross, and Kumara to be , the loughest. Id this ground nothing but ' I first class, strong, and powerful dredges will work to any advantage. ' . I The Kapitea, New River, Maori Gully (or , Stillwater Creek), and creeks such a3 the others > on this gold belt (Nelson Creek, Snowy River, ■ etc.) are all fine washdirt, which a modern diedge can work to the best advantage. i Of the main rivers I consider that the Giey will be the easiest to dredge, and that the Grey I Valley will be the largest future dredging field in New Zealand. 1 There is also a class of auriferous country on the coast known as sea, beach wash. This i washdirt in many instances is not finer than , tho dirt of many claims in Otago, but it is mi!- ! possible to save- this gold with an ordinary diedge's spread of tables. _This class of w^sti requires greatei spread of 'tables, and more water than is used in Otago, so as to treat the wash to successfully save the gold. , Any ground situated within the gold belt area, and dredgable, is good for investment, and in maay instances will pay better than in Otago. But it is necessary for investors to send practical men to inspect ground, otherwise it is 1 possible to get into many wild cats. 1 I simply advise the investing public not to place their money into the heads of creeks or , tributaries of rivers that have been worked, because the Europeans have worked the bars, and tho Chinese have afterwards wing-dammed these creeks; therefore, whatever gold was in them has now passed to the banks, or to China. It is also useless to try to dredge small creeks , that have had tailings sluiced into them, which have raised the water level and tailings over shallow flats covered with timber. Standing timber being below water-level, these flats are uu dredgable. It is also necessary for auriferous flats that have timber upon them to_' have the timber felled in the spring and burned by a bush fire about Christmas. The timber i upon these last-mentioned flats could be made ' into firewood — therefore boilers with fl.ro boxes . specially constructed to burn wood would be j more economical than carting coal a few > miles. Having been asked to visit Brands Jack's ! claim on account of certain rumours circulated in Dunedin to this property's disadvantage, being at Totara. Flat last week I did so on the first opportunity. T found the claim situated in a flat on Brandy Jack's Creek. Mirers had worked by hand under difficulties about three chains into this flat, leaving a face about 45ft j deep. I saw prospects taken from all parts ol 'this face, and I must say the same are highly ■ payable for dredging. This flat is virgin 1 ground 01 considerable extent, and several t shafts had recently been sunk upon it to deterI mine whether the flat was alluvial wash or high • reef. These shafts prove that the greater porj tion of this flit is identical with the washdirt shown in the open face. No bottom or leef j was struck in any shaft, and the wash from j these shafts prospected equal to the wash of ' the same depth of the face. Having spent considerable time on this property, I am satisfied it is a highly payable mine for dredging. — I am, etc., BENJAMIN NAYLOR (late of Otagc).