The Evening Star TUESDAY, MAY 13, 1873.

Evening Star, Issue 3191, 13 May 1873, Page 2

The Evening Star TUESDAY, MAY 13, 1873.

We have so frequently and strenuously pointed out the advantages derivable from the development of goldminiug, that we cannot hut feel gratified that an increased and increasing interest has been shown in it, on the part of capitalists in Dunedin. Two large companies have been floated lately, with every prospect of success. They are not schemes that have their probable advantages merely on paper. They are based upon ascertained data, and consequently the risk of failure is reduced to a minimum, so far as the material is concerned. This is as it ought to be. We do not want to see any Caledonian mines of ephemeral richness blazoned before the public, to enable men behind the scenes to take money out of their neighbors’ pockets. We do not want to see a speculative mania spring up, puffed into notoriety by some clever agent, who cares more about his commission than the interests of the shareholders. Since the days of the South Sea bubble there have been plenty of schemes of that sort; and just because of the danger of being swindled by similar means, we wish to see the enterprises embarked upon prosper, so as to give confidence in the richness of our goldfields. We have no objection to any number of mining companies, so long as they are based upon sound foundations ; but we have an objection to confidence being abused. There is plenty of capital waiting investment, which might have been profitably employed long ago, had not its possessors, warned by experience, hesitated to embark in goldmining. Complaints have been frequently made by. the inhabitants of the goldfields, that the people of Dunedin will not help them. We have never hesitated in times past to speak plainly on the matter, and think it just now absolutely necessary to repent it: the goldfields people have themselves to blajjie. If they have incurred the neglect of capitalists, it is because some of their number have proved unscrupulous. They have deceived those who came forward to help them, and allowed schemes to be floated that they must have known were never likely to succeed. This was, however, partly owing to the imperfect communication between Dunedin and the goldfields. Before this journal obtained such extensive circulation in the interior, the opportunity of public communication between the City and the country was confined to from one to half a dozen copies of Dunedin journals in a district. This is fast becoming remedied, and a more intimate relationship is already established that should tend to mutual advantage. We have, therefore, a few words to say which shareholders, managers, and men receiving wages, will d.o well to consider. There is an impression abroad, founded upon experience in Victoria, New South Wales, Auckland, and Otago, that through misnanagement in some cases, and dishonesty in others, claims that, from the prospects, gave every indication of paying well, have involved the shareholders in heavy losses : that in many instances they have passed into hands working on their own account, and have then yielded handsome returns. There is no doubt serious difficulty in selecting a manager who combines in himself all the requisite qualities of mechanical and chemical knowledge, probity, and the firmness and decision necessary to carrying out strict discipline. There is a laxity very frequently in dealing with wages men, that gives them an opportunity of secreting a large share of the gold, without the possibility of detection ; and although, thanks to the plenty with which we are surrounded, the temptations of poverty are not so pressing as at Home, there is a charm in the sight of a small nugget that is to some irresistible. Two things, therefore, we think essential : the Dunedin shareholders should have some one in whom they have confidence, to represent their interests, to relieve the manager of the clerical duties of the concern, and to S3e that the arrangements .considered necessary by the committee of management are strictly carried out; and to reduce the risk of robbery by servants, a similar system to that followed in co-operative claims in Victoria should be adopted. In all co-operative mining associations, a number of men are brought together by the prospect of gain, who have but little previous knowledge of each other. They are often of different countries and different religions, They may have seen each other on the diggings ; but beyond that they have no acquaintance, and are by no means certain they know each others’ names: most certainly they do not inquire into eacli others’ history, nor as to when and how they managed to reach the Colony. They have consequently a pretty general idea on the subject of each others’ honesty, and this leads to a practice based upon mutual protection. Having selected a manager, either from among themselves or by paying a competent man for his services, they agree to conform to his orders ; and each man before going into the claim to work, changes bis dress, puts on one that figs up means

of concealing gold in it, leaves hi clothes in an appointed dressing-room and having worked his “ shift, puts ol !iis mining gavb, and leaves it in thrown. There ought to be.no objectioi made to suoh a 'system ; but, we an told that if it were insisted on in Otago, men could not be got to work We should think men have more common sense than to object to an ar rangement for the security Of others, which they themselves would feel i< right to ask for their own. We know no reason why an honest man should object to it: it surely ceuld make no difference to him. In fact, should there be a black sheGp amongst the men employed, who otherwise would have helped himself, it would prevent any suspicion of dishonesty being fastened on the upright. The honest man would give his work and receive his wages—he would get what lie bargained for, and if a man wants more it is right there should be a check placed upon him. But the difference to the goldfields wpnld he immense. In proportion to the' security of good returns will be the amount of capital invested. Introduce doubt, and you drive monied men away. The interest of the goldfields is to give the greatest possible certainty to a pursuit that, from its nature is to a certain extent speculative ; and if due care has been taken in testing the ground, and there is an intelligent application of means, there is reason to think there is no conceivable limit to the benefit that will accrue to the Goldfields, the Province, and the Colony through wellconducted mining companies. The suggestions we offer are the results of considerable experience in the management oflai’ge manufacturing and mining establishments, and although no known means can prevent dishonesty, the chances should be reduced to a minimum.