MANAGEMENT OF MINING COMPANIES.

Thames Star, Volume VII, Issue 1953, 8 April 1875, Page 2

MANAGEMENT OF MINING COMPANIES.

To the expensive management of the . mining companies in Victoria the unprofitable results of many of them are attributable. The Ballarat correspondent of the Argus gives some information on this point which is not without application to mining in New Zealaad. He writes :— " The late mining depression, one would have thought, would have induced investors to make a desperate effort to reduce . the expenses of managing some of the limited mining companies, but I presume, on the principle of what is everybody's business is attended to bj none, jhe same reckless expense is allowed'to go on in many of our mines, and what should be returned as a profit to the unfortunate shareholders is swallowed up in the expenses of management, the wonder being that people are still found willing to contribute calls to these impoverishing speculations. . The last half year'i returnMk afford some strange contrasts bearing oiHsV the expenses of mines, of which I shall ~ select three as examples. During the half-year ending the 31st December last, the Temperance Company, Little Bendigo, crushed 4500 tons of stone, which yielded 1988ozs. 4dwts. of gold, or an averiige^df about Bdwts. Bgrs. per ton,aid they had out of this £5150 in diyidends. The Duchess Company, only on a small scale, had crushed for the same time 2017 tons * stone, whjch yielded 610oz 7dwt of gold, an average of about 6dwt 1 gr, and they had £315 in dividends. Now mark the con rast. The Hero Extended Company crushed 3083 tons of stone, which yielded 15640z lOdwt, averaging about lOdwt sgr, but paid no dividends at all; and yet they are. next claim to the Temperance, have the same lo&e, and very nearly .the same country, and while-their neighbour has paid over £5000 tin div-dends, they show a balance-sheet with a debit of over £3000 against the company./showing that they hare done little towards reducing their debt." The Ductieia Company appears to be one that may be prudently. , toll owed as an example by many more in Ballarat East. . The. management, is -so: satisfied that they will eventually strike some fine lodes at deep levels^ they have : determined to put their shaft down 1000 ft, .not as otter companies, do,.by rushing [into .reckless expenditure,, putting, ,uj> i enormous machinery, &c, but by." steady 'hard word, and strict, but not.severe ■ economy, and they hope to. sink tit 11 that depth without making a single; call on the shareholders. They are sinking in... one. place while thej tr« raising gold in . another, <.- tna

though tney ;pnt their main shaft down last quarter about 60fc; out of the gold they got out of 9|dwt. stone, they actually had a surplus of £315 for dividends. They expect to put the main shaft down antfAjer 100 ft. during the current quarter. No^l if miners would act in this frugal and persevering manner, and place themselves under a good and economic manager, they would find hoth good wages and an occasional dividend plum on many Ballarat lodes. The Duchess, I may say also, is let on tribute."