49

C.-4

which promises to be payable for working. The present prospects of this mine look extremely well, and it must be highly satisfactory to find that the gold in the lodes shows no diminution on going down. This is the deepest working in the districts where good gold-bearing stone has been found, and no doubt will be the means of giving an impetus to other companies to prospect other mines at deeper levels. During last year 1,722 tons of quartz has been crushed, which yielded 2,3030z. of gold, representing a value of £9,136 7s. 6d., out of which £3,225 has been paid in dividends. Taking the last nine years this company has been carrying on mining operations, 17,6150z. of gold has been taken from the mine, representing a value of £78,308, of which £18,525 has been paid in dividends, while the paid-up capital has been £13,169. The Eeefton district is one with a great future before it. Quartz-mining can only be said to be in its infancy, but capital is required to develop the mines. In former years the mines were not so systematically worked, and many of those who resided in other parts of the colony who invested their money in mining, got little or no returns. Shares were purchased far above their commercial value. Mining booms were got up, and it was only those persons residing on the spot and intimately acquainted with the workings who could reasonably be expected to pocket the profits. These booms are a great drawback to the mining industry, and should act as a warning to those interested in the mines in the locality where such booms take place to sell out their interests. It is almost certain that after every boom there comes a period of depression, when shares can be purchased for less than they were before it took place. Capital is not so easily procured for mining investments as it was a few years ago, and it behoves those that are interested in the mining industry to see that the mines are worked on commercial lines, and that no new ventures are offered to those who have capital to invest, unless there is good reason to believe that such properties will return fair interest on the capital invested. Mining is looking better in this district than it has for some years past, and it would be well if mining companies were to create reserve funds out of the profits, instead of paying the whole away in dividends. When some of the mining companies come to be analysed they do not produce a favourable impression on the outside public, nor show a healthy aspect. Take, for example, the Inglewood Company, who declared £1,200 in dividends the previous year, while this year calls were made to the amount of £200; and the Scotia Company paid £3,000 in dividends, while during last year calls were made to the extent of £1,100 for prospecting the ground. This shows that the ground was not properly prospected to justify dividends being paid. It really means that the payment of dividends tends to raise the price of shares beyond their commercial value, and is the means of many a mining company being brought into liquidation without their mines having been prospected, and properties are thrown away which otherwise might become ultimately profitable investments. If all the companies in the Eeefton district bo taken into consideration that have been working lodes and getting quartz crushed during the four years ending the 31st March last, mining will bear a favourable comparison with any other industry. The following statements will show the list of the companies that have had quartz crushed during that period : —

7—C 4.

Name of Company. Calls made. Dividends paid. Stone crushed. Yield. Value. Welcome Hopeful Extended... Specimen Hill Big River Progress ... Lone Star Nil Desperandum ... Eeform ... Fiery Cross Just in Time Pandora ... Inkerman Hercules... Sir Francis Drake... Walhalla Happy Valley Venus Extended ... South Keep It Dark Wealth of Nations Keep it Dark Globe ... Ingle-wood Extended Scotia s s. a. 1,725 0 0 103 2 6 3,503 0 0 7,450 0 0 900 0 0 3,100 0 0 3,641 13 4 1,650 0 0 2,812 10 0 1,283 6 8 1,000 Q 0 4,500 0 0 1,709 0 0 3,750 0 0 350 0 0 1,300 0 0 2,900 0 0 2,900 0 0 4,875 10 0 6,750 7,200 9,825 5,600 4,000 300 2,100 2,400 Tons. 3,326 195 298 1,210 19,190 220 1,219 668 7,735 4,868 370 6,541 294 2,515 238 127 4,737 1,767 2,182 27,427 24,501 4,220 593 2,848 1,450 85 674 52 66 17 609 22 6 Oz. 7,131 397 199 995 8,745 75 522 423 8,781 4,770 372 5,211 269 525 354 29 2,927 1,546 1,436 11,930 15,561 2,287 1,272 1,177 964 35 141 67 12 34 630 15 124 £ s. d 28,207 10 6 1,289 16 0 769 12 0 3,893 6 8 34,945 12 8 291 12 0 2,026 19 6 1,642 8 6 34,754 4 1 18,848 6 1 1,458 10 0 20,366 7 0 1,061 3 3 1,929 10 0 1,396 5 3 110 19 1 11,369 13 10 6,089 0 0 5,457 0 1 46,933 0 0 61,466 0 0 8,797 0 6 5,016 16 6 4,571 0 0 3,788 8 9 167 0 0 541 11 0 262 11 2 46 13 9 119 10 0 2,533 4 9 57 15 3 484 0 0 1,800 0 0 2,900 0 0 2,300 0 0 23,500 28,300 1,500 3,000 Energy ... Golden Treasure ... Merrijigs... Gallant ... Golden Lead Gold-mining Company... National Sir Charles Eussell Cumberland Eoyal Al 3,100 0 0 900 0 0 1,950 0 0 400 0 0 800 0 0 500 0 0 600 0 0 900 0 0 900 1,200 65,594 2 6 96', 575 120,270 78,956 310,692 7