MINING.

Otago Witness, Issue 3808, 8 March 1927, Page 34

MINING.

The following telegraphed report has just been received from the mine manager of the Blacks Goldmining Company:— "Have withdrawn all 3-inch casing out of No. 8 bore; commencing to draw 5-inch.” THE WEE£S NEWS. The following telegraphed report has just come to hand from the mine manager of the St. Bathans Gold Mining Company:— “Return from last 12ft shaft sinking Boz 4dwt, or 14dwts per cubic yard. After heavy storm February 27, face of cliff started to crumble, and some debris dislodged in proximity to shaft. Consider advisable to carry out some surface work to further protect shaft entrance. Expect resume work underground next week.” TARANAKI OIL FIELDS. NEW PLYMOUTH, March 1. The Taranaki Oilfields Company reports that the Waiapu No. 2 well has been drilled to 450 ft in grey shale. The drilling ■was suspended for repairs, but it is expected to resume work to-day. At the Taranaki No. 3 well the erection of the rig is making good progress, though transport has been temporarily delayed by rain. IMPORTANT MINING SUIT. CROWN v. BILLY CREEK DEVELOPMENT COMPANY. „Mr George Cruickshanks, a warden of the Otago mining district, has given judgment as follows in_ an important suit for forfeiture of a mining privilege, to wit, a water race, heard in the court at Queenstown on February 3. Mr W. A. Harlow (Clyde) was counsel for the Crown, and Mr Robert Gilkison, junior (Queenstown) appeared for the defendant company. "This is a plaint for the forfeiture of a race of 35 heads from the Billy Creek, a tribut ry of the Arrow River. The evidence showed that the Public Works Department was constructing a large irrigation scheme-in the Arrowtown district costing £119,000, and to make the scheme complete the water from Billy Creek would be very acceptable. Mr W. 11. Paterson, of Oamaru, acquired this race in 1914, and the rate was used in connection with a sluicing claim, which he worked for two years. Difficulties of working arose, and it was decided that electric pumps were needed. These were ordered tn 1916 and came to hand in 1919, rud have never been e.ected. Work was stopped owing to the war, the difficulty of getting men and financial strigeney. A bank overdraft of £6OOO had eventually to be paid by Paterson. There has been no water in the race ,Cr 10 years. The intake is sft above the level of thd .riyer, the fluming in many places is perishing and the channel is in a bad way -,>wing to non-use and want of attention. Except as hereafter mentioned there can be no defence to this action, as the race has not been used for years. "By section .190 of the new Mining Act, no mining privilege can be forfeited for any non-user more than six months old.

"It follows, therefore, that although this race has not been used for 10 years, the court cannot take any cognisance of any neglect prior to April 20 last, as the plaint was issued on October 20. Paterson, the holder, transferred the race to the defendant company on July 20, 1926. By section 191, it is a complete defence to a forfeiture suit, if the defendant pleads that the non-use all happened before he bought the mining privilege and has not continued since his purchase and also that he bought the property bona fide for value and had no notice or knowledge of the existence of such non-use, and also that before purchasing he took all reasonable precautions to ascertain whether any liability to forfeiture existed. The position then is that the water race was unused and unprotected from April 20 until July 29, 1926, and has further remained unused since then until October 20, when this suit was commenced. Just about this time the company lodged an application for protection, but that has been adjourned pending the tearing and decision of this suit. “The defendants’ counsel, .Mr Gilkison, strongly contends that this purchase by the company is a complete defence. It must be noticed that the section requires a number of things to make the defence effectine: —(1) The non-use arose before, the purchase: (2) and has not continued since; (3) the purchase was bona fide for value; (4) no notice of knowledge of non-use; (5) and also that the buyer took all reasonable precautions io ascertain whether any liability to forfeiture existed. The formation of the company makes the position more complicated and raises some legal questions. “The title to the water race was in W. H. Paterson’s name. The assignment from

him to the company shows that he sold certain interests to Messrs Ireland, Orbell, Jones, and Main for £2250, so that it was agreed and carried out that the new company should allot 10,000 paid-up shares to Paterson and 10’,000 similar shares to Messrs Ireland and the three others. The question is how far Paterson.’s knowlede can be imputed to the company. I have read through a number of cases, but cannot find any one quite in point. In the case of Jaeger Woollen Company v. Walker 77 L.T. 180, it was held by the Court of Appeal that the knowledge of the managing director was the knowledge of the company. Mr Paterson owns half the shares, but he is neither managing director nor chairman. “A company of course may be a bona fide purchaser for value, where the directors of the company are dealing with the vendors at arm’s length in making the bargain of sale. The directors may take reasonable precautions to ascertain whether any liability to forfeiture exists and may be hoodwinked by the vendors. But where the syndicate owning a mining privilege converts itself into a limited company with no other shareholders surely the knowledge of the syndicate is the knowledge of the company. “Messrs Ireland and Orbell did not buy any shares in the company. They purchased first of all from -Paterson one half of the property. The company was then formed and the shares allotted among all the owners pro rata. ‘‘Applying the rules of the section to the case now before the court, it seems cletir that the non-us arose before the purchase, that .is between April 20 and July 29 last, and •it has also continued since up to October 20. it is doubtful if a company formed in this way can be called a bone fide purchaser for value, seeing that the company paid nothing but simply allotted paid-up shares in return for the property. It is also difficult to argue that the company had no knowledge that the race was not in use, seeing that the syndicate was very, well aware of it. Its object in forming the company was to develop it and make the water run again. In my opinion the directors of the company took no precautions to ascertain whether any liability to forfeiture existed. They knew it was so liable and they should have started york or had the race protected before the company was formed The race has really been abandoned by operation of law, but this does not prevent a decree of forfeiture. “The forfeiture is proved. Tire only other question is whether for public or other reasons, it is just and equitable to inflict a fine instead of forfeiture. The right is for a large quantity of water. The Crown gave it to the defendant’s predecessors who for 10 years have done nothing with it. The Crown now wants it back again for a public purpose. T cannot see that a fine would meet the case. There must be a decree of forfeiture.”

’ SURVEYING PETROLEUM LANDS. Mr John Wanner, of Bonn University, Germany, recently communicated with Coal, Oil (N.Z.), Limited, by cable, recommending that a complete geo-physical survey of the company’s petroliferous areas should be made by the “Elbof” methods, which were highly commended by Sir Frank Heath, secretary to the Department of Scientific and Industrial Research, during hie recent visit to Australasia. The directors have accordingly opened negotiations with Messrs Piepmeyer and Co. (Ltd.), who control the “Elbof” methods of electric prospecting, for a thorough geophysical survey of the Waipatiki oilfield. It is. claimed by Dr Rudolf Krahmann, of Berlin, in a recently published bulletin on “tho practical application of geo-physi-cal methods of mineral survey, with special reference to the electric and magnetic methods,” that petroleum reservoirs can now be located and their areas approximately delimited at a depth of 6000 ft. Regarding the company’s coal lands at Westport, reports from the manager advise that an extension of the seam has been traced into adjacent Crown lands, the lease of which has been applied for.

DUNEDIN STOCK EXCHANGE. Friday afternoon. Business has. been steady on the Stock Exchange during .the past week. Business was reported to-day in Bank of New South Wales at £49 ss. Bank of New Zealands have been in demand at 60s, and a sale at that price has been reported. When the quotations closed yesterday buyers offered 59s 9d, but there were no sellers at less than 60s 6d. Commercials are stronger with a buyer at 30s 4d, but sellers ask 31s 3d. National Bank of New Zealands have changed hands at £7 Is, which price is still offered, sellers asking only threepence more. National Bank of Australasias are in keener demand, and up to £lB 14s has been offered for the principal issue. The contributing shares are wanted at £9 7s 6d. The inquiry for E, S. and A. Banks, too, has advanced Is. Buyers of New Zealand Breweries offer 50s, and the Debentures are in demand at 24s 3d. No inquiry is made for National Insurances, which are on offer at 74s 9d. Buyers’ offer for New Zealands is 365, with no seller at less than 365. 9d. South British can be obtained at 56s 3d, but there is no immediate reply to an offer of 57s for Standards. Huddart, Parkef ordinary shares are still wanted' at 47s 6d, and the preference issue is brighter, buyers quoting at 21s 3d. Demand for Westport Coals has slackened, and buyers will not give more than 34s 6d. Sellers’ quotations leaves a margin of 35s 6d. . . _ Buyers will give £93 10s for New Zealand Loan and Mercantile ordinary shares, the margin between the quotes being 3l>The ordinary issue of Wright, Stephensons is stronger, with buyers at 21s 9d, but no sellers at less than 255. The preference issue is on offer at 17s without inquiry. There was no demand for paid up Refrigerating until to-day, when an offer of 13s 3d was made. The contributing issue has been sought at 6s. Auckland Amusement Parks weakened during the week, and to-day sellers of the ordinary issue at 15s 6d were unsupported. No inquiry was made for the preference issue, which was offered at 20s.

Dominion Rubbers were wanted during the week at 465. but the offer has not been repeated during the last two days. Sellers want 495.

Buyers’ quotation of 66s for N.Z. Drugs (£2 paid) leaves a margin of 2s. Mosgiel Woollens are wanted at £6 2s 6d, with a seller at £6 10s.

- Paper Mills are inquired for at 18s, but sellers ask 19s. The quotations for Kawaraus have improved 40 3s 3d (buyer), and 3s 7d (seller). Nokoma,is are still wanted at 12s. Electrolytic Zincs are ex dividend with buyers 'of both -issues at 355. A considerable amount of business has been done in St. Bathans during the week, and the shares have weakened considerably On Wednesday the price dropped to 12s 6d discount. To-day’s business was done at 10s discount. The closing quotations were ll s discount (buyer) and 9s discount (seller). Molyneux Electrics have advanced in value and 19s is now offered. Sellers, however. ask 21s. Government Stock generally is firm, the 4| per cent bonds (1930) being wanted at £97 ss. Saturday noon. There was spirited bidding for Nokomais on the Stock Exchange this morning, a sale finally being effected at 15s 9d premium. The closing quotations ■were 15s 8d premium (buyer) and 16s 3d premium (seller). Otago Daily Times rights found a buyer at 355. Inquiry was made for N.Z. Drugs at 66s 6d, sellers asking 67s 9d. The preference issue of Electrolytic Zincs had a buyer at 35s 4d, but no seller at less than 36s 6d. March I.—Sales: Milburn Lime and Cement (new issue), 3s 6d (two sales). Sales reported: 5 per cent. Inscribed Bonds, 1927, £99; N.Z. Breweries, 51s. March 2.—Sales: Goldsborough Mort, 50s 6d, 50s 3d; Milburn Lime and Cement (new issue), 3s 6d prem. (two sales); St. Bathans (A issue), 12s 6d, 12s (two sales); St. Bathans (B issue), 12s (two sales), lls 6d (two sales). March 3. —Sales: P. and O. Deferred Stock, £255; Milburn Lime (new issue), 3s 6d prem. (two); St. Bathans (B issue), 10s discount. Sales reported: Bank of New Zealand. 60s. March 4.—Sales: St. Bathans (A issue) 10s dis.; Big Beach, Is 6d dis. Sales reported: Bank of New Zealand 60s; National Bank £7 Is; Bank of New South Wales £49 ss. March s.—Sales: Otago Daily Times (rights), 355; Nokomai Sluicing (cont.), 15s 9d premium. Sale reported: Bruce Woollen, 16s. The following are Saturday morning’s buying and selling quotations, which are subject to the - ’sual . rokerage:— BANKING. Bank of New South Wales—Buy £49 5s sei £49 17s 6d. Bank of New Zealand—Buy 59s 9d, sei 60s 6d. Comercial ’lank—Buy 30s 3d. sei 31s 3d. National Bank—Buy £7 0s 6d, sei £7 2s 6d. National Bank of Australasia—Buy £lB 16s. National Bank of Aust, (cont.) —Buy £9 7s 6d. E.S. and A. Bank—Buy £8 7s 6d. Western Australian Bank—Buy 595.

BREWERIES. Crown Brewery—Buy 13s. N.Z. Breweries (Ltd.) Debs.—Buy 24s 3d, sei 24s 6d. Staples—Buy 36s 3d. INSURANCE. National Insurance Co.—Sei 755. N.Z. Insurance Co. —Buy 365, sei 36s 9d. South British Insurance Co.—Sei 56s 6d. Standard Insurance Co.—Buy 575. SHIPPING. Burns Philp—Buy 40s. Howard Smith —Buy "0s 6d. sei 31s 6d. Huddart, Parker (ord.) —Buy 47s 9d, sei 495. Huddart, Parker (pref.)—Buy 21s 3d. P. and Deferred Stock—Sei £260. U.S.S. Co. (nref.) —Buy 20s 2d. COAL. Westport Coal Co.—Buy 34s 9d, sei 35s 6d. LOAN AND AGENCY. Goldsbrough, Mort— Sei 51s 6d. N.Z. Loan and Mercantile (ord.) —Buy £93 19s, sei £95. Perpetual Trustees—Buy 60s. Wright, Stephenson (pref.)—Sei 17s. MEAT PRESERVING. Canterbury Meat —Buy £7 15s. N.Z. Refrigerating (nd.) —Buy 13s 6d, sei 14s. N.Z. Refrigerating (cont.) —Scl 6s 3d. MISCELLANEOUS. Auckland Amusement Park (ord.) —Sei 15s. Auckland amusement Park (pref.)—Sei Brown, Ewing (pref.)—Buy 20s 9d. Bruce Woollen Co.—Buy 15s, sei 17s. Crystal Ice—Sei 20s. D.I.C. (pref.)—Buy 20s 9d. Dominion Investments —Buy 20s 6d. Dominion Rubber—Sei 495. Donaghy’s Rope and Twine—Buy 335. Eclipse Petrol—Sei 12s. Kauri Timber (ord.) —Sei 28s. Milburn Lime and Cement—Buy 265, sei 27s 9d.

Milburn Lime and Cement (new’ issue) — Buy 3s sd, sei 3s Bd. Mosgiel Woollen Co.—Buy £6 3s. National Electric —Sei 17s. N.Z. Drug Co. —Buy 66s 6d. scl 67s 9d. N.Z. Express (ord.) —Sei 235. N.Z. Hardware (ord.) —Buy 4s Bd, sei ss. N.Z. Milk Products Debentures —Buy 20s 6d. N.Z. Paper Mills (ord.) —Sei 19s. Otago Daily Times (rights)—Buy 34s 9d, sei 35s 3d. Smith and Smith (pref.)—Buy 16s, sei 18s 3d. Wilsons (N.Z.) Cement—Sei 36s 9d. MINING. : Kawarau G.M. Co.—Buy 3s 3d. scl 3s 7d. Nokomai Sluicing—Buy 15s 8d prem., sei 16s 3d prem. Wiahi —Buy 18s, sei 18s 3d. Waihi Grand Junction—Sei Is lid. Electrolytic Zinc (pref.)—Buy 35s 4d, sei 36s 6d. Mount Lyell—Buy 28s 6d, sei 29s 3d. Kawarau High Levels—Sei 2s 6d prem., St. Bathans (A issue) —Buy 12s dis., sei 8s 6d dis. St. Bathans (B issue) —Buy lls dis., sei 8s 6d dis. Molyneux Electric—Buy 19s 3d, sei 20s 6d. Upper Nevis—Buy 3s prem., sei 5s prem. Big Beach—Buy 2s dis., sei Is dis. WAR BONDS. 4J per cent. Bonds, 1930—Buy £97 ss. 4J per cent. Bonds, 1938—Sei £96 12s 6d. 4 per cent. Bonds, 1939—Sei £96 12s 6d. 5J per cent. Soldiers’ Bonds, 1933 —Buy £lOl.

4} per cent. Inscribed, 1938—Scl £96 12s 6d. 4| per cent. Inscribed, 1939—8uy £96 7s 6d, sei £96 12s 6d. 5i per cent. Soldiers’ Inscribed, 1933— Buy £lOl. 5 per cent. Postal Bonds, 1927'—Buy £9B 10s. 5 per cent. Postal Inscribed, 1927—8uy £9B 10s. 5 per cent.'Postal Inscribed, 1929—8uy £9B. 5J per cent. Inscribed Bonds, 1927-41— Sei £9B. NORTHEDN EXCHANGES. following business was done on Changes during the week: — . Tuesday. Auckland.—Sales : Inscribed stock (1927) 5 per cent., £9B 17s 6d; Auckland City debentures (1940), 5$ per cent., £96 10s; New Zealand Breweries debentures, 24s 3d; Bank of New South Wales, £49 2s od; South British Insurance, 56s- Electrolytic Zinc, 36s 6d ; Thames Theatre, 16s; Wilsons Cement, 365; Kawarau, 3s 6d • L «r k y,- Shot ’ 3s ’ 2s 9d i (cont.), 2s 7d, 2s 6d Wellington.—Sale: Bank of New Zealand, 60s. Sales reported: Bank of Austra asia. £l4 9s; Gear Meat, 35s 9d ■ Electrolytic Zinc (pref.). 37s 3d. Christchurch.—Sales reported: New Zea,a ve JJ n l ent . P er cent. Bonds (1938), £96 10s; Christchurch Gas, 24s 8d; Roval Bank (£1 paid), 45s 3d. Sales: Bank “of Australasia, £l4 10s (two parcels); Bank of New Zealand, 60s 2d; Howard Smith, 31s Toi>aceo ya s3? aUk 458 > British

Auckland.—Sales: War Loan (1938)“' 4 1 per cent. £96 10s ; (1927). 5 per cent., *£9B 17s 6d; Bank of New South Wales £49 7s 6d; Taupiri Coal, 22s 2d; Auckland Gas, 235; Northern Steam. 13s 3d; Luckv Shot (cont.), 2s sd. J Wellington.—Sales reported: Bank of New South Wales, £49 5s (cum. rights); Bank of New Zealand, 60s; W ollin°'t-oii Gas (ord.), 26s 6d. ° Christchurch.—Sales reported : E. S. and A. Bank £8 10s; Royal Bank (£1 paid), 4os 6d; New Zealand and River Plate, 25s 6d; Christchurch Gas, 24s 8d Staples Brewery 36s 9d; New Zealand B reive ries, 50s 9cT (two parcels). Sales: Bank of New South Wales, £49 2s 6d, £49 3s 6d (two parcels) ; New Zealand Breweries 50s 9d; Royal Bank (£4 paid), £9 Is, £9 2s £9 Is 6d; Union Bank, £l5 ss.

Thursday,

Auckland.—Sales: Soldiers’ Bonds, £lOl, Inscribed Stock (1938), 4£ per cent., £96 10s; English, Scottish, and Australian Bank, £8 10s; Bank of New South Wales, £49 10s; Bank of New Zealand (new issue, paid). 275; Union Bank of Australia, £l5 ss; ♦’aupiri Coal, 22s 2d; Auckland Gas, 235; Northern Steamship (cont.), 6s 6d; Kauri Timber, 26s 6d; Milne and Choyco Debenture Stock, 255; Wilsons Cement, 365, 36s 3d; Alburnia, 3s; Lucky Shot (cont.), 2a 3d; New Waiotahi (cont.).“is; Occidental Una, United, 9d; Waihi, 18s. Wellington.—Sale: Bank of New South Wales, £49 10s. Christchurch.—Sales reported: E.S. and A. Bank, £8 10s 6d; National Bank of Australasia (£5 pd), £9 12s 6d: Western Australian Bank, 59s 6d; New Zealand and River Plate, 25s 6d; Union Steam (pref.), 20s 4id; Electrolytic Zinc (pref., cum div.), 37s Id; Holden’s Motors (cum. div.), 51s 6d. Sales: E.S. and A. Bank. £8 10s 6d; Commercial Bank of Sydney, £25 2s 6d; Union Bank, £l5 5s ;Goldsbrough, Mort, 50s 6d; New Zealand Refrigerating (cont.), 6s Id; Huddart, Parker (cum. div.), 48s. Friday.

Auckland.—Sales: Soldiers’ Inscribed (1933) 5g per cent., £101; Bank of Austraasia, £l4 10s; Bank of New South Wales, £49 10s; New Zealand and River Plate, 26s 3d; Auckland Gas, 22s lid; Sanford (Ltd.), 225; Lucky Shot (cont.), 2s 4d, 2s 3d; Occidental Una United (cont.), 8d; Ohinemuri, 5s 6d; Waihi, 18s. Wellington.—Sales reported : National Mortgage, 70s; New Zealand Refrigerating (10s paid), 6s 2d. Christchurch.—Sales reported; Bank of Australasia, £l4 10s; Commercial Bank of Australia, 31s; Bank of New Zealand, 60s; Dalgctv and Co., £l5 12s 6d (three parcels) ; Staples Brewery, 36s 9d; Kauri Timber, 26s 9d. Sales; Bank of Australasia, £l4 10s : National Bank of New Zealand, £7 Is (three parcels); Manning’s Brewery, 18s (two parcels).

* _ Saturday. Auckland. Sales: New Zealand and River Plate, 26s 6d (two). Christchurch. —Sales: Bank of Australasia, £l4 10s 6d ; Royal Bank (£1 paid). 46s 6d. Sale reported: New Zealand Drugs, 67s