WAIHI MINE.

Dominion, Volume 5, Issue 1438, 13 May 1912, Page 6

WAIHI MINE.

NBW PROPOSALS DISCUSSED. POSSIBLE PURCHASES. (By Teleerapb— Special Correspondent.) Auckland, May 12. Speculation is rife in Auckland legarding tho now proposal of tho Waihi directors to take a referendum of Home shareholders a-s to the acquiring of another property. Mr. C. Hodes, a local director of tho company, when seen in company with Mr. Harry (mine superintendent) said that he could add nothing to tho information as cabled. Tho Hon. Seymour ThorneGeorge, when asked the same question, said: "All that is known at this end is in the cablegram." Mr. G. A. Butle (chairman of the Auckland Stock Exchange), when asked his opinion, said: "As an exchange we are not interested in the suggestion, excepting in .so' far as it may all'ect our respective clients who are shareholders in the Waihi mine. Speaking as a looker-on at the affairs of this company, I may say that tho first thing which strikes me in regard to tho suggestion cabled is that the proposals must have been before 'he board of directors for some time past, and I hold that any proposed change in tho policy of tho board, or any change in the prospects of tho mine, should bo given out inline-

diately for the benefit of all the shareholders in the company, so as to put all on an equal footing. 1 don't care how secretly these proposals may have been discussed, the information is known to some, while others have been in complete ignorance until' the scheme is notified in the press. As to the proposal to acquire some other property, 1 must confess that it does not seem necessary to do so while the Waihi Company is holding 750 acres, of which area it might bo taid that the surfaco is hardly touched yet. For a company backed up by a large cash reserve and holding such" an extensive area, to propose to acquire another property when .its own workings are only down a I- littlo over 1000 feet, seems to me absurd on the face of it. There is one other point to which I think it wise to refer. Although tho colonial shareholders only represent 29 per cent, of tho total number of shares on tho register of'the company, still I contend that they have a rignt to be consulted in some way or other upon such a radical proposition, the same as the'shareholders inlho Old Country. "If it is proposed' to purchase a property at Waihi, as somo think, the Waihi Grand Junction seems to be the most likely to have become.the desired 'saver.' Next to the Waihi Grand Junction, and touching the boundary of the Waihi mine at one part, is the Waihi Reefs Consolidated, an area of 300 acres, in which a lot of money has been expended under option for tho purpofip of sinking a shaft to try and intersect the continuation of the Waihi system of reefs. If the proposal of the directors of the Waihi Company in London is to' acquire that property, or others adjacent, then, of course, it will mean expending some of the reserve capital to develop.a mino further on the-same line of reef. This Temark would also apply to tho Walker's Gigantic, which adjoins the Consolidated, and comprises an area of 600 acres, said to be on tho same line of xerf. Mr. Walker, better known as "Lonjj Drive," is at tho present timo in London, and has been there for isoina time trying' to develop this property. On the eastern side of the Waihi mjne is another property worked by a local company under' the name of the Waihi Standard, in which a lot of development work has been done. To the north-east is the Waihi Extended property, on which ,a local company has been carrying out operations for over twenty years, and lias .Tiovr expended over .£4OOO in sinking a 6haft and putting in drives' at various levels. Personally, and speaking with some knowledge of the district, I am inclined to think thsit of all the properties mentioned the Waihi Reefs Consolidated is tho most likely to he tho one the Waihi Company have in mind—if they I have considered any of them. Even that is a remote chance, for it seems to me I unlikely in tho extreme they would invest their reserve on the same field at all. I may be wrong, but I fully expect to i hear'that the proposed new • investment I lies outside Waihi altogether."

One prominent gentleman seen, said: "If the proposal means investing in another property outside Xcw Zealand, I am confident that not five per cent, of local shareholders would vote in favour of it. A Jot of shareholders were alive to the fact that tliero was £i per share reserve, but if that is to he dissipated in working another property, then, of course, the reserve ceases to have value as a probable asset." The price of TVnihi shares eased on Saturday, but whether that was due. to tho possibility of a reduction in future dividends, or because shareholders do not like the reserve being; utilised for the purpose of acquiring and working another properly, it is impossible to say. Sales opened at £1 18s. (id., but the price dropped to .61 17s. 9d., at which figure transactions took place, ond- the market ■closed withbuycrs at £1 17s. Gd.