SPECULATION AT THE THAMES.

Star (Christchurch), Issue 435, 6 October 1869, Page 3

SPECULATION AT THE THAMES.

The following letter, which is^dated Auckland, Sept. 17, is published in the Otago Daily Times, of Sept. 30 : — After having spent several days in Auckland and in the Thames district, I venture to pen a few lines, believing that doing so may be of benefit to those living south, who may be desirous of sharing in the riches of tiiat now famous district. I will commence by saying that the Thames is a large and extensive field for quartz mining requiring considerable skill and capital for its proper development. I have, after investigation, found that in the majority of the companies established, very little haß been done, most of tbem standing in the position of the one I am about to describe. I will, for form's sake, call it the Brighton and London Quartz Mining Company, with a capital of £20,000, legal manager, &c, &c. Upon enquiry, I learned that the sum of £15,000 is paid up, leaving the balance of £5000 to be collected by calls from time to time. I naturally thought that this was a bona fide and well managed concern as it had £15,000 in the bank to work "the mine, or* any expenditure represented hy valuable and suitable machinery, or labour in opening the ground, but, to my astonishment, I found there was no machinery paid for, or even ordered, very little done to the groundj and only about £1000 in the bank. I naturally asked where the balance of the c-ipital, viz. £ 14.000, was, and in reply, was informed that £ 1 2,000 had been paid to the gentlemen who had originally pegged out the ground, who, by-the by, generally take their consolation money in scrip, to be sold "to the outside public, at the best possible price. The other £2000 had been, spent in preliminary expenses, wages, &c, &c, thus leaving the purchasers of scrip to work the mine, purchase machinery, and pay dividends on £20,000, the original capital) out of the nearly untouched ground and the £6000 remaining, inclusive of. the unpaid-up capital. The above is a fair description of many of the companies at the Thames, got up for the aggrandisement of a few men who have no intention of remaining in the company, but simply acting as promoters, pocketing large eums, at a very trifling risk to themselves, leaving a too confiding public to pay the piper. Scrip shares are being correctly va'ued by many in Auckland, and the holders find their ecrip almost unsaleable in the majority of companies. One wag at the Thames gave notice by placard that scrip could be stored there. I was also credibly informed that one large holder of scrip stuffed a pillow with them to tleep upon. I have every reason to believe that every effort will be made to sell a quantity of scrip down South ; but to intending buyers I would say, " Don't buy," for I hold that gold can be purchased too dearly. Scrip in good claims will fetch more than their values in Auckland. There must be a revolution in the present system, and when the time arrives, I have no doubt that the Thames will be a good field for investment— a valuable and dividend paying goldfleld ; but that will be by the winding up of many of the present companies, and the formation of fresh ones, companies that will spend their capital in the purchase of machinery and the employment of skilled miners, instead of drawing on the future by paying away nearly all tlie money required for such purposes into the hands of promoters. Such new companies will find it to their interest to include several of the claims now being worked by present companies. Most of the people now at the Thames are living upon scrip, and promoters' interests, and unless the public bleed very freely, it will not be long before a panic takes place, when many good claims may suffer. I have no hesitation in saying, after 15 years' experience on goldfields, that the present system Is rotten, and that until a new era is inaugurated the public should not invest tbeir money in mining enterprise at the Thames, as now it is only the few residing on the spot who benefit, in most cases, at the expense of credulous shareholders. I may remark that working miners are only receiving £2 per week— a bad sign. If the companies were properly working their claims with efficient men, wages would not be less tban £3 per week. When the Thames is in full work, there will be a considerable demand for skilled labour, and wages will advance to £3 per week for experienced men.