OUR KUMAR A LETTER.

Greymouth Evening Star, Volume XXXI, 27 August 1901, Page 4

OUR KUMAR A LETTER.

(OUR OWN CORRESPONDENT.)

The"annual report and balance sheet of the Greenstone Three Mile is to hand. From the former I gleam that up to July 31st the gold won was 115 ozs 12dwts 21*rs, valued at £4,46 15s 7d. The balance sheet discloses a surplus of £'224 after outstanding liabilities have been paid. There is however, an item for extras amounting to £llO to be deducted from this leaving a net credit of £IOS on July 31st. Since then in eluding Saturday's return there was gold Won to the amount of 119 ozs approximately valued at say £lO7. Allowing £SO per week for expenses, four weeks would be £2OO. This leaves a balance of £267, to be added to above, so the company should have to its credit £375, or within £25 of sufficient to pay a dividend of 1/- There is another item of interest to shareholders and the public. The engineers allowed penalties totalling £165 for delays, etc., in completing the erection of machinery. This sum the directors refuse to pay as counsel advises them the decision of the engineers is final. But while this sum is in abeyance rt cannot be said with truth that the company is clear of debt. The annual meeting is fixed for September 2nd. Last weeks return of above company was 29 ozs for 96 hours was effected by breakage of the ladder hanging gear, necessitating a stoppage of nearly two days. The long delay in connection with the erection of machinery on the Greenstone Gold is the result of want of money like so miny others. The directors have issued a statement asking the shareholders to take up 400 £5 debentures bearing interest at the rate of 20 per cent per annum, and having a curreney of 12 months. The affairs of this company have been the fruitful cause of some very strong comments among local shareholders. The report accompanying the request for more funds states that the claim was bored under the supervision of Mr J. Gardner Wilson. That is the extent of the information vousafed shareholders as to the result of the boring

operations. Some figures in connection with this Company cannot fail to interest. The original capital contributing was £7,ooo'and 2,000 £1 shares fully paid up making a nominal capital of £9OOO. Out of this the vendors received £ls for some freehold. Allowing

5 per cent for brokers' commission and £SO for incidental the flotation expenses should not exceed £4OO. Deduct those two sums from £7OOO and £6,450 remains for the erection of a dredge and for office and directors' expenses. The report states that there will be a deficiency of £2OOO by the time the dredge gets a start, in all £8,500 to complete what has been termed a tin pot show. I append the following from the report : " The pontoons (£1,223) are launched ; the engine and boi'er (£845) ; elevator (£520; winch (£273) ; winch engine (£109); save all (£46); wire ropes (£100); nave been pai,d for and forwarded to the claim. On machinery contract (£2,707), the sum of £955 has been paid leaving a balance of £1,753. Ava : lable assets of the company amount to £1,276." This latter is made up of unpaid calls I presume' Deducting these payments from this it wUI be seen that £4,069 is on machinery, etc. To this add the available assets £1,276 and we get £5,345. Deduct this from the available capital after payment of flotation expenses and cost of freehold and we get the following result: £6450 £5,345—£1,105. So from this the company has spent in cost of boring, office and directors' expenses, rent of claim, etc, £1,105 with, say, £4OO flotation, and

we have £1,505. No need for comment • on these figures. They speak for themselves.

Dr. Jennings, chairman of the Greenstone Creek Company, has arrived from Christchurch on business in connection with the company's affairs. Greenstone Junction return for last week wa.s lodwts 3grs for 133 hours. This is the best return so far. The ground seems to be improving sieadily as the dredge works up the creek.