The Evening Star. THURSDAY, MAY 4, 1876.

Evening Star, Issue 4114, 4 May 1876, Page 2

The Evening Star. THURSDAY, MAY 4, 1876.

The directors of the Greymouth Coal Company at Greymouth have found an advocate in the ‘Grey Purer Argos’ for their-what shall we call it, for “mismanagement” seems to offeml-for their changeableness of purpose. We cannot say we very much admire the tone of the apology, it i s intended to lie a sharp comment upon some very reasonable observations made at a meeting of the Dunedin shareholder ; but in reality is an insult to them. Wo have not the original prospectus nor the Amort before us, nor is it necessary to refer to them, for the article in question supplies all facts necessary. It admits that certain representations were made to the inhabitants of Dunedin, that without their help the coalfield could not

have been developed, that that help Avas very f' eely given, that the managing directors Adopted one plan and failed, and then spent both time and money in another that may succeed; but that the promises, on the faith of which money was obtained, have not been realised. And what return do these Grevmouth directors, through the ‘Argus,’ make tor the very necessary and substantial suppoit given by Dunedin ? They express no regret at the delay, but turn round and say. ' I A evy true, avc could have done nothing Avithout you, but your in- ' estmout was not for development of i G Industry but for speculating in shares. Now, this is an utterly senseless attack. Speculation in shares is never reprehensible, excepting in bubble companies for swindling purposes. Every man when he invests a sum of money hones to get something in return for it, and' avo, do"not suppose there is anything so exceptionally

attractive about C reymouth coal as to render it exceptional. We have no doubt those immaculate Grcymouth directors who, avc arc told, have never received a penny for their trouble, Avould very gladly sell their shares if they coiild realise their value, with, of course, a little premium in the shape of interest. But really, shareholders of Dunedin, you must be ungrateful not to tender a handsome gratuity to those able men who have contrived to spend so much of your iiioney m sinking one shaft tnat has been abandoned and another that has come upon indications

of the whereabouts of coal! It is an age of testimonials, and truly they deserve one, until the motto engraved cndnringly, “ Cast not you r pearls before swine, lest they trample them under their feet, and turn again ami rend you.” Kave they not iilustiated tnat truth AA'hiie speeding your money? You complain that tup. faith you have placed in the representations made have not been fulfilled, and yon, as business men, naturally seek an explanation Avhy. You are presented Avith reasons that are not satisfactory, and very naturally desire to know how the matter really stands. The wo.ks being under the management of strangers, Avho may or may not be competent, you propose to send some one oi r er to

ascertain, the facts, so that you may have confidence or withdraw confidence from those who have hitherto managed or mismanaged the affairs of the Company. All this to the minds of men of common sense wouldbc perfectly straightforward and in the usual course of business. They think differently in Groymouth apparently, and without waiting to prove to the Dunedin agent that all has been done that could have been done, and that their change of purpose, and consequent waste of money and time, was justified by sound mining and engineering considerations, they turn round upon their shareholders anil say, “You are not perfect in Dunedin—you do not brew successfully, and you did not enter upon this undertaking in a right spirit. You had profit in your mind’s eye rather than helping Greymouth to develop its coalfield,” We regard this matter in a somewhat serious light, because these repeated failures tend to shake confidence in undertakings on the successful development of which our Colonial prosperity must largely depend. Whatever view the Greymouth directory may choose to take, we say unhesitatingly that the Company was supported by the majority of the shareholders in Dunedin with the desire to benefit the Colony, It was represented that the coal is of quality superior to that of Newcastle, that the seams could be worked at little cost, ami therefore f v.t a product would be added to the e-port power of the Colony that would enable us to enter into profitable comniwcial relations with countries now trading bvlittle with us; and that by thus extending commerce and mining industry, employment would be provided directly ana indirec ,ly for a large number of immigrants, It was, in fact, a portion of Works and Immigration Sckme. fW nately success has, to say the least, been delayed, and a directory, sanguine enough to assume the management of the affair must not grumble if suspicions as to their ability are aroused by the failure of their professed expectations. So many of these swans have turned out lame ducks, that it is high time to ascertain the causes of failure. Our insurance companies have the assistance of coroners when a few hundreds me lost by fire under suspicious circumstances : it is high time that an officer with smiuar powers should be appointed to report upon the causes of failure in public companies. Incompetency in directories is not considered a crime, but there are moans of punishing those who induce investments on representations not justified by tacts, whether intentionally or unintentionally. Were some such officer appointed to report on “the reason why” of every failure, many Shotovers would be worked successfully or would never lie floated, and directors of public companies would take care to secure able engineers where engineering skill is necessary, instead of perilling other people s money for the sake of serving a friend or friends. The failure of these companies is a public calamity.