1866
“I would advise persons desirous of quartz reef gold mining to commence with sufficient capital. Companies require around say £5000, so as to enable them to operate at once, with four engines on different reefs, whereby the results would be reduced to greater uniformity. I believe that success may be commanded in this as in most other fields of industry, if necessary caution be observed.”
“Before gold can be got nowadays, extensive works have to be undertaken. A large amount of capital must be expended before any return can be expected. Thus work on the gold fields is assuming a totally different aspect, and it will in future have to be undertaken by a totally different class of miner to those who first flocked to the diggings.”
The ’60s were indeed the decade of radical change for the goldfields. By 1866 the heady excitement of just years ago – the Kiandra, Lambing Flat and the Lachlan fields – was way gone. In its place, a simple formula was emerging. There was plenty of gold there – only you had to first spend a quid to make a quid.
Where though was the necessary money to come from? In the middle of an age of massive industrial expansion, there were no lack of glittering speculative investments on offer to potential investors. Similarly there were no lack of spectacular failures to leave people wary of the risks involved with such investments.
Significantly at this time also, investors could lose much more than their shares.
These were not limited liability companies and so shareholders could be personally liable for the company’s debts.
Alongside this initial problem, company investments in Australian goldmining had been largely unsuccessful up to that time.
The main failure had been the Colonial Gold Mining Company which was floated in London in July 1852 on issuing 100,000 £2 shares to invest in mining ventures in both NSW and Victoria.
A subsidiary of this company – The Great Nugget Vein Company – operated unsuccessfully on the Meroo field and at Tambaroora for several years and the Colonial Gold Mining Company folded in 1857.
Since these initial failures however, a major change had occurred in company structures which held out better prospects for attracting new investors.
This was the limited liability legislation which meant that if a company was established on this basis (rather than being a joint stock venture), then the worst that could happen to shareholders was that they lost their shares.
Here though there could still be a very large sting in the tail, as in a bid to get companies floated, investors only had to pay for part of their shares.
Then if the company was profitable, they need forward no more money and simply wait for the dividends to roll in.
If however it fell into financial trouble it would make a call on shareholders to forward the balance owing on their shares.
This was a massive temptation for people to invest beyond their means, and one that in the absence of tight financial controls left the field open for swindlers to flourish alongside legitimate business ventures.
18th January 1866
As if to highlight the importance of capital investment in the future development of the State’s mining industry, a major article on how to facilitate such investment was published in the Sydney Morning Herald in January 1866.
18th January 1866
Much that is requisite to the success of quartz mining. As Mr. Farmer has overcome one difficulty towards the development of our mining interest, I beg to suggest too a way in which, 1 think, another very important one may be surmounted – that is the obtainment of capital. I would premise that in order to induce men to go into the labour, danger, and expense which largely attends the exploration necessary to the discovery of a mine they must have the prospect before them of a liberal reward.
This I would give them, and would place their labour and discovery, against the capital required to bring the same to be profitable. But at the same time, I think that, beyond payment for expenses out of pocket, they should await the profitable development of their enterprise, before their shares and the company be absolutely made over to them.
My plan is as follows, viz – That the nominal capital of any company undertaking to work a mineral discovery should be double the amount necessary for its working. That the shares representing the capital should be of two clases – one half ot them preferential, and the other non preferential.
The latter to be considered as paid up, and to represent the purchase of the discoverer’s right, but to be held in trust for the discoverers until the profits of the company should pay a dividend of ten per cent on the preferential shares, to which extent the preferential shares, or in other words, the shares held by the public, or others subscribing their capital, should have a first claim on profits in perpetuity.
That the owners of the non-preferential shares should be entitled to nominate two out of the directors, and the preferential shareholders three. That a clause should be inserted in tho deed of settlement, empowering the dissolution of the company when half the capital subscribed could be shewn to be lost
That the first payment of the company should be the reasonable actual expenses of the discovery, the amount of which should be stated in the prospectus of the company, absolutely incurred in exploration.
That the liability of the company should be limited to the capital paid up, by taking advantage of the Act now in force.
In my humble opinion it is well, therefore, the process should bo commenced upon principles which shall protect the unwary from being lured into undertakings which doubtless are offered in every form and shape.
Our gold-bearing, silver and lead mines – our kaolin, copper and tin- and, last though not least, our iron and coal, as well as many other products now bunod in the bow tit. ol the earth, must bo brought to tbo light, must yield then treasures to the capital and industry which will, di ubtler«, shoitly bo brought to bear upon thom in a far gniiki denice than has hitherto been the case.
Before closing this letter, I would mention one of the chief stumbling blocks ahead lies in the laws which pertain to quartz mining. California was two years in advance of us in her gold discoveries, but she is a hundred years ahead of us in her mining cnterpiise 1 am «oil informed that £500,000 has been expended u) on the “ Gould and Curry Mino” ui Alta, California, and I «te b tho nowBpapors from that place, that that nune alióle if» i etui nmg £230,000 per annum, but their loase is for all timo, and beyond soma registration charge to Government, tho oaly charge is in tbo simpo ot an export duty of two tmd a half per coil on iho BÚver and gold oxtraoted, – a paj ment which applies (o the oxport of all gold and silver, bo it produced b) the investment of capital or the hand labour of man.
To mduco capitalists to most thoir money as they do ia other counfnoe, where the mines, accoroiag to moat authentie accounts, au much less rich m promue than ours, we must effet hborrl inducements, or olso submit to our riches being diBcloscu b> other generations, who shall havo learnt, through tho experience of our timos, that capital is as essential to otu cc Minion wolfaro as labour,
and that to promote the pio-pcnh of tho working man it ia absolutely essential lo incuuiage tho diffusion of tha capitalist’s wealth If this principle had been recognised during tho past few years, how different would havo been the present pasittoa of tho colony ‘ I am, Su, win obedient servant, I THOMAS S. MORT. I Greonoakes, January 131b, 1866.
21st March 1866
In concert with this call, the monthly goldmining report led off in March with a scathing rebuttal of how NSW’s focus on pandering to the needs of the ‘poor miner’ had driven capitalists off the field.
The article argued miners should be trying to work with capitalist interests through joint ventures as had already happened in Victoria.
21st March 1866
Gold mining in New South Wales is no longer what it was a few years ago. Years of mismanagement have done their work, and the continued cry of the “poor man“ has at last driven the capitalist so completely away that the goldfields are left entirely to the poor man, who in his poverty can hardly make his salt from them, and yet in his greed will let no combination of industry or labour enter into competition with him.
And hence they languish and die out, gold-field after gold-field, when by the adoption of a system they might still be yielding as prolifically as any in their sister colony Victoria.
This month, however wo have two now features in our golden record – the discovery of n now allu- vial diggings, and tho opening of a now quartz reef.
The alluvial ground is on theo highest part of the Abercrombie range, and about three miles from tho old workings nt Tuena.
Several claims hovo boon taken up, tho sinking is but shallow, and the gold is coarso and snotty.
Tho roof that has been opened is ono discovered about a month ago, on the 13ox Ridge, Turon Rivor. Tho stono promises so well that claims on tho line of reef hnvo been token up for several milcsTñ length, and theso aro shepherded until tho result of tho crushing of a ton sent lo bo crushed con bo ascertained.
Tho Wentworth Minea, Lachlan, «oom to bo working on steadily, though matters aro somewhat dull nt proíont, and are likely to bo so until the now ongino and pumping gear aro erected and set to work.
Thoso works aro oxpccteil o bo completed within the next fortnight, when fresh im- petus will be given to the claim holdors. Two tons of quart/, raised from a now roof nt Tambaroora gave n return of 32 ox. gold.
This was n first trial of the reef, and the result of course caused n rush. A ton and a half of stono from n reef on Apple Treo Flat not bofore tried was crushed at Avisford, tina gave a return of 31 oz. A hundred tons of quarte from the Billibong, gavo, when crushed, n return of only one-half ounce to tho ton.
The amount of mining doing at Forbes may bo guessed at from tho fact that thoro aro six miuors at work upon tim Pinnacle Reef, two claims »early workeel out on Grossoit’s lead, and thirteen claims taken on the North Coleelonion, of which it is expected that about four will bu payable. There has been a great devcrcoso of populatn-u on tho Glanmire. Tho erection of tho crushing machinery has not yet been completed.
Tho encino Is of sixteen horse-power, and the machinery will work”with ton stamper».
OTHER MINKS. The deed of settlement of the Western Korosono Oil Company has been signed by 15,625 shoroholdors out of 20,000 share», and on the 21st ultimo three directors iroro elcctcd.
Tho business of tho componj- will now bo pro- ceeded with without dclaj-,
Tho Hartley Kerosene* Oil and Paraffine Company com- menced making oil on an extensivo scale on Tuesday, 13th instant. Professor Watt, Mr. Nicolle, C.E., and Mr. S. Samuel were present, and tho result of the first working wns niivst satisfactory. Specimens ef cannol coal from land at Mount Kembla havo been received in Sv-dnoy *o boanalv-scd,
At the icely Copper Mines a now and apparently exten- sive lodo has been discovered. It has been named “Nicholas’s Lode.” A shaft, between four and Ilvo fathoms, has I-ecu sunk upon it, and a lodo of black ore, two foot wide, laid bare. Tho oro ovcnigos from IS to 20 per cent., and is to Ive had in great abundance, as on ncoi ly nil, tho other lodes in this valuable mino.
A now short hap been commenced on “William’s Lodo,” to the north of Martin’s shaft. Tho lode is about four feet vrido. The shaft is down about six feet upon tho lode, and from this six feet some ten tons of ricn oro havo boen raised.
In Martin’s shaft they havo eommonccd driving nt the ton fnthttm level on a lode about throe foot wide, consisting of grey ore coated black. This oro was assayed by Mr. Ciistoe, of Cadia, mid yielde-d about S2 per »ont, of coppor.
The total amount of oro on tbo surface, in Icely audAlgor’s lands, conjointlj-, moy bo roughly estimated at 130 to 150 tons. Captain John Gundrj- has been cmploj-od by the shareholders to superintend tho practical working of tho mines.
Tho Cadiangullong Coppor Miniug Companj» held their annual meeting this month. Tho report, which held out plcftsing prospects based upon roosonnblo grounds of tho ultimate success of this company, was unanimously nekiptcd,
15th February 1866
The gold field report was very succinct in its assessment of the problems facing the fields. The grounds were worked out as far as the ‘poor miner’ was concerned yet local courts established in the wake of the legislation mirroring the Eureka Stockade reforms in Victoria acted to discourage reform and allow for new investment.
Similarly the government regulations relating to the allocation of mining leases discouraged either miner cooperatives or company investments in larger blocks of working ground.
15th February 1866
Our gold mines continue to show a falling off in the yield of the precious metal. Whether the drought, which had prevented alluvial digging, has had any share in bringing this about woe are not prepared to say, since the scarcity of water has enabled many of the river beds that were otherwise unworkable to be laid bare, and give up their golden treasures.
The late ruins, copious and general will soon settle this point.
There is no doubt, however, that many of our gold fields are completely worked out – that is, in so for as the profitable employment of individual mining labour is concerned.
That they would still pay handsomely, if worked upon through cooperative investment and aided by Government, there can be little doubt.
The Goldfields Regulations, however, sit in the way, and act as a virtual prohibition to the investment capital or the counteroption of combined labour.
Wo have ulreudj in nur dolly column» pointed out that by nn in proved system tho extensive gold fiolds of Bur rangocg u lgbt pivo remunerative omplojment to thou- sands, did not Ino Regulations stan I in the way
Thero is now s frightful amount of destitution on that golu ficld, nnd jet nothing is dono-every tiling remains in statu quo ODd iho field is about to bo handed over to the tender mercies of o selfish local court Tho sumo thing may bo said of tho Roekv River, whero several 11 empts have been ninde to obtain enlarged areas of oldworkid out land
Every such attempt, however, has been opf OEed by the fiienda of the “poor min,’ mid op- posed sucoessfullj So oxtensivonn area of land has thus been shut out from profitable occupation and working, whilst the numbera aro so largo of men requiring employ- ment, that would bo obtained wero these lands leasod to persons possessing the neceasaiy capital to work them, that at last attention has been called even hore to tho necessity for amending tho gold-fiolds regulations m thiB and in i any other respects Troni tho Gulf diggings, also, we have the same distressing accounts of the iniseroblo state of the mining population Digging has beon at o stand still for some months past owing to tho ob9onco of water
Now that tho ram has fallen hopes aro entertained of better times m this direction At Aialuen thero has beena now rush somo short dis- tance frem (bo creek above Burke s public houso, nt
Now town Gold has been struck m tho prospecting snaft of a totallj riiflircnt character from that found on thu lead in the riat It is coarse and nuggetty, reeembhug in colour and appearance that obtained at Major « Creek Somo two or three hundred men have taken up claims alojg tho sup- posed lead, und several shafts aro being energetically sunk TorbcB is completely done as a gold field Thoro is only one cIbuu now working on Grosseit’s lead, and that is nearly worked out Ihe able-bodied men are all leaving m quest ofworkinthe bush Ihe ram has filled the dam ot the Billibong crushing machine, but it is doubtful whether it will work more than the stone now at grosä, that has beon sohng waiting tobe crushed, asthero is only one claim now working on tho reef
The Pmn.iclo reofi aro completely shut up Tho new engine that is being put up by the proprietor of tho Wentworth gold-mines iill bo at work in a very short time T he machinery is v ery pow erful, and connected with it is pumping gear of great capacity.
The principal object for which it will bo worked will bo to keop dry several of the claims on the lower ground that oro now flooded and un w orkabie It was found impossible for anyone claim to employ a pump, as, to keep themselves dry, thoy would havo to pump lor the others also, nnd no equitable arrange- ment could be come to with the othor claim-holdors On seeing this tho proprietor stepped in, and on tho nieu owning theso claims agreeing to pay nu additional monthly sum, tho engine was brought up and erected.
When it gots to work somo of what havo boen tho most auriferous claims on tbo field will bo once moro workable. Sineo iho late rains the miners nt Glanmire havo boon driven by Otu wetness of the ground out of tho creek and. n tolho higher land, wluncnovv ground has been opened. 11io_ miu’hiuiiy for crushing ihe cement by tho company owning ihn property is in couiso of erection.”
Work mi tho Napoleon Reef has beon broughtto a stand- still. These icéis havo been wotked in seotions, by different companies, but bj’ srnio fatality niisuiidcrstand iue.8 have misen in theso companies, and have rcBultedin the stoppage of the works.
A coi respondent gives us an account of tho Nundlo (Peel River and Hanging Rock) gold- fields. Tho numbor of ounces of gold sent down bj- escort from this field during )£65 wob 7775. Tho number of minors’ rights taken out this year was (18GG) was G37. Nearly all tho gold sent down by escort was alluvial, as tho crushing machinos bud i>n arrangement with tho bank at Tamworth under which nil iho amalgamated gold was tullen there. Thero aro eight mushing machines, only two of which uro worked by steam, so lhat, through all this season of drought, the others, being deprived of niolivo power, havo been idlo.
With calls like this sounding out, the time for government action was at hand. It came in the same year with a complete reworking of the goldfields legislation and its associated regulations.
11th August 1866
This major re-ordering of the status quo on the fields however did not come without opposition and the voices of the rural press were heard expressing the concerns of their readers.
Chief amongst these were the removal of the local court system, doing away with the Gold Commissioners in addition to repealing the regulations limiting Chinese to cordoned off sections of the fields.
11th August 1866
This Bill abolishes the existing law, and, as described by Mr WILSON, the Secretary for Lands, when introducing it, pro- vides for the. suppression of existing local courts ;
for dispensing with all the local Commissioners, (excepting three), and removes all difference in the mode of treating Chinese and European diggers.
It also by encouraging the issue of lenses of Ionget areas, endeavours to change entirely the mode of working our Gold Fields, as every obs tac’e is offered to the operation of individual miners, and every encouragment afforded to the capitalist and thc miner acting in conjunction..
These are the main features of the new measure, and we regret that we cannot approve of these as n whole ot separately.
We will briefly state our objections as to the suppression of local courts and the dispens- ing with Commissioners.
We contend now, as we .have contended before, that by supplanting these sources of authority, and placing their powers in the hands of the unpaid J.P.’s, tho Government an doinjr away with intelligent and responsible dispen- séis of law, anti instituting ignorant and irre.-ponsible, dispenser.«.
Whatdo the ordinary run of J I’.’a know about mining matter.«? Is there n single miner on the Commission of the Peace?
But, even supposing there is such a J.P.-how are his services to be obtained ? Can he be called away from his busi- ness, and required to attend on the ground-the only place where a dispute can he settled-to ex- amine ii and hear evidence?
We imagine not. Then, as to placing Chinese on the same lo. ting ns European.«, wc are fully convinced that, under the tnuch greater temptations that will exist for disputes under the new regulations, which create larger interests, that collisions will become very frequent and severe, if the two races are not di- vided on- the Goldrfields.
This point, we con- ceive, was strongly put by Mr GAUKETT in ilie debate on the second reading of the Bill, and was. not answered.’
As to the issue of leases ol large areas of auriferous lands, though the intention may he to open the door for a judicious combina- tion of labor and capital in the development of our vast ‘mineral resources, and though it may possibly hnye that effect to some extent, we can- not exclude” from our vision the probability that this opening . will bo used by mere speculators, who having obtained possession of comparatively large tracts of auriferous lands in favorable locali- ties, will use their rights as possessors to extort exorbitant fee’s from the hardworking individual miner for permission to work thereon. We don’t think this a very.il« sirable state nf things to bring about. Oil the iv li de, we hope this Bill may be rejected,’ unless it be considerably modified I in Cimuiittce. .?.’i
17th August 1866
The Government however was somewhat more upbeat in relation to the benefits of its legislative changes and the Parliamentary record provides an excellent account of the rationale underlying the changes.
Basically it was about providing a fresh start for gold mining in NSW through encouraging capital investment.
17th August 1866
The comparison between the gold-mining industry of Victoria and that of this colony is, certainly, very striking.
In the one case the industry is vigorous, progressive, and profitable. In the other, it appears struck with paralysis. Indi- vidual miners have failed to alter this disad- vantageous comparison ; local agitators and local coulls have been equally powerless ; rewards to prospectors have done no good ; commissioners have not brought the desired prosperity; companies have not been prosperous, and popular Ministers have not been successful.
After tuen an experience it is hoping a great deal to hope that Mr. Wilson’s bill will produce a magical change, and the more so as he says that it only proposes a very little change on the existing law.
That change, however, is an important one, and is in the right direction.
It is designed to pro- mote the investment of capital in mining. The regulations are more liberal than before to those who will spend money on machinery.
Short of selling auriferous land outright, which perhaps is the ultimate solution of all attempts at legislating for the management of gold-fields, the terms aro in most respects as liberal as are likely to be obtained.
It is not unreasonable, therefore, to look for .an investment of capital that will prove remunerative, seeing that every one familiar with the question admits that there is scope for such an investment.
It is quite true, as Mr. Donnelly states, that private and individual enterprise has done much in times past for gold mining, and there is doubt- less still much scope for it, nor will the proposed bill destroy its chances.
But it is equally true that this style of mining is wasteful, that it is at present practically at a standstill, that it holds out small prospect for the future, and that associated, enterprise, as well as labour associ- ated with capital, is essential for future advance- ment.
This conviction is now pretty nearly as general on the gold-fields as elsewhere. The bill is not designed, in antagonism to the present class of diggers, but to give expression to the public opinion now ruling amongst the most intelligent of them.’
Gold-mining industry is passing through a transition stage. The laws have been adapted, to its past condition, and arc somewhat of an impediment to its progress.
The change of law is to meet a change in fact as well as a change in opinion, and is simply a legislative adjustment to meet new conditions of things. It was stated by one member in the House that the effect of the bill would be simply to invite a wild speculation out of which some shrewd or lucky persons xvould make fortunes.
There is undoubtedly a danger of this. Com- mercial progress is too often marked by violent oscillations. A period of dulness is succeeded by a period of wild speculation, and a period of 1 speculation by a reaction of languor. It is highly desirable that capital should be employed in the extraction of gold; it is not desirable that there should be a fever of speculation. It is certainly possible enough that a few successful investments will generate a specu- lative mania. This is undoubtedly according to experience.
It is difficult to impose any adequate Legislative check on such a process. Hie only real security against it is prudence on tho part of investors. And prudence is a virluo greatly at a discount when people arc dueled with the hope of achieving a sudden fortune. Even cau- tious and thrifty people who have labo- riously made moderate savings by good man- agement of their own affairs get inspired with rabhncss when they arc once thoroughly inocu- lated with the fever of mining adventure. Imagination pai*ts glowing results, and the hope of getting rich without the painful labour of making small payings js irresistible,
So long as there are plenty of people who Can be prevailed upon to part with their money by a little tickling of their imaginative faculties, there will always bo plenty of persons ingenious enough to perform that profitable operation on them. The getting up of companies, and the di cssiRg up of prospectuses, and the cooking of accounts have now-a-daya become quite an art, and great proficiency has been attained therein.
The joint-stock system has dono -great good to commerce, and has provided very convenient investments for small savings as they accrue. But it has also often provided a sink for small savings, and helped to corrupt the commercial morality of the agc.
Every financial panic bursts up a number of rotten undertakings, which had manoged to conceal their hollowness under a show of dividends. The sufferers have no remedy. They often sink out of sight, utterly mined, and even where that is not the case they are averse to any movement in the direction of inquiry or exposure which must begin with a confession of their own confiding folly. No form of speculation has proved moro fascinating or delusive than investments in gold mines.
One of the great manias that have marked the history of English commerce, origi- nated’ in a sudden passion for extract- ing the gold from the minc3 of America. There have been similar speculations in Cali- fornia, and in Victoria there have been one or two accesses of the yellow fever. In all these cases there havo been some splendid successes, and some egregious failures. There has been enough to show that there is ample scope for judiciously applied capital, and abundant proof that, indiscriminate speculation is sure to result in heavy losses.
The profits of gold mining, though often large, aro not assured enough to dispense with a knowledge of the business, with a patient Btudy of its peculiarities, and with preliminary caution in sinking unredeemable capital. If these requisites aro neglected-if every quartz reef is supposed to be as rich as a selected specimen-and if operations are com- menced without any preliminary experiment, there is sure to be disappointment. It is proper to notice that it-is not only capital that is wanted to turn our auriferous ores to account. Wc want skill and science also.
There is a great deal to bo learnt as to the way in which the crude material ought to bo treated, and this ignorance is really at the bottom of the want of progress. No satisfactory method of dealing with the mundic ores has as yet been hit upon. We know that the gold is in the ore, but we do not know how to get it out. Various methods have been suggested, but none have been satisfactorily demonstrated on a working scale. Seeing that this is the case, and that agrcat and profitable industry awaits the application of chemical and mechanical science, it may seem stiangc that so little study is being bestowed on the subject.
Here and there a solitary inves- tigator is making experiments in his laboratory, but the larger portion of persons interested in the discoveiy of the secret are waiting, Micawbcr liko, for something to turn up. But as a rule effects do not happen without causes, and dis- coveries are not made without adequate study. If this colony is not always to be in the rear-if it is to take the lead to which its sons aspire-it must not be content always to borrow its ideas, or to wait even for the dex-elopment of its own resources till some light from abioad is cast upon its path
1st August 1866
For those with an eye to the detail, the actual regulations brought in under the new legislation make for compelling reading.
They are especially intesting for the insight they provide into the operation of how ground was allocated to miners under the older block system versus the newer frontage approach that gave them a section of the actual line of the gold reef or gold lead.
It’s all a bit complex, but if you’d like to find out more, the detail is certainly there to be had.
1st August 1866
The following regulations for the Gold Fields ‘ having received the sanction of the Executive Council, wore published in a supplement to yesterdays Government Gazette
All regulations hitherto in force foi the management of the Gold Fields of New South Mates arc hereby lepcalcd, and tho following are substituted in lieu thereof –
2 \ bercv cr tho term “ Commissioner “ is u«cd in tkeso regu- lations, it shall bo understood tornean the Commissioner entrusted with the general supeilntendcncc of ono of the gold districts of tho colony, vir -Tin Northern, Southern, or M estera district, and the temi “llrgistrnr” shall mean the Clerk or tho nearest Court or Petty Sessions, unlcsa where some othu person shall bo duly appointed in that regard
3 Ihc term “ claim” Bh»U be taken to apply to any nuthoilscd holding whatever, except leases
4 Bj ‘ registiy” shall be meint tho entering into a book, to bo kept for Hie purpose, by tho Registrar, of such particulars rcsptcting any cluim, as may bo required undci tho regulations
5 1 ho Itigistnir shiill receive for the duties to be performed by him under theso lcgulations such fees as aro determined in the schedule hereunto annexed (No 1 ) ‘
6 Claims and shares in claims and leases may bo transferred to any authorised person, hy registry In the olllcc of tho Registrar, on payment of the proper foo, as per schodulo annexed (No 1 )
7 Any miner whose claim may bo unworkable from any causo whatsoever or who himself may bo unible to work from any reasonable cause, bhall be entitled to legisttr his claim as held in resciTC, receiving a certificate of euch registiy, » copy of which must bo kept posted on tho ground, the working of Buch claim to be recommenced when pr iclicablc
8 All claims, excepting as hereinafter provided, must be con- tinuous!) worked afler the expiration of fortj eight hours from the time of occupation, and any claim or share ta a claim re- maining unworked and unregistered for three clear days shall be hsblc to foi felture
9 Wheu the depth of sinking, for which the nearest shaft bot- tomed shi
11 be üikeii os a test, shall not bo less than fifty reel, any two adjoining claims can amalgamate by registration and posting on the non working claim a notioo or rogUtry, having thereon the names of the holders and numbers of their minera’ rights Any number of claims, whero difficulties of w orking uro occasioned by water or otherwise, may, in Uko manner, amal- gamate
10 All claims, tntcss where othcrwlao provided, must ho marked at each corner by- a substantial peg, at least two feet ubov c the ground, and no person shall remove, injure, or conceal any inch boundary mark
11 Any Justice or the Pcaco may make such order, not incon- sistent with the existing Gold Fields Act or Kegulations, as ho mnj consider necessary for regulating the modo of washing at »ny atrcam or waterhole, go na to prevent any injurj of a public nature
12 Any authorised person can be the proprietor of any number of claims or shares in c1 Urns, by keeping employed thereon labourers holding miners’ rights, under any form of agreement ?whatever, bj which tho right of ownership Is reserved to tho proprietor, such labourers belüg sufficient in number in each taic to represent the extent or claim or portion of claim so occu- pied
13 Every holder of a cluim or lease in a liver or creek shall fonn and maintain a sufficient flood mee through or paat such claim, and shall be mtitled to maintain the natural level of the waOr at tho head of his claim Provided that no prior right bo injured thereby
14 Each person holding a miner’s right will be permitted to occupy and enclose, for ihe purpose of rraidcnco, land not to ex coi d U10 squire jurds, or 22 yards by ob, where auch measure- ment may bt practicable
16 ISo cluim »ill he allowed in any position where, by ita in- terference with the supply ot water requisito for the public, by undirmining or digbius, up of road», or bj obstructing public thcroughfarts or othirwi6c, the general interests will be injured, »nd no person shall sink or drive within eight feet of any rooo, of whutcv er ile sei iptioii
15 Ino miner shall dig upon or undermine any land cncloacd hy al v authorised oecup mt or which ia occupied by any building, or »iib machinery In conntction w nil nuning operations, or used as a gurden or us u Government camp or police motion, or for anj public pui] ose, unless spcciaUy authorised by the Csminie «ioner
17 Any miner, having a shaft or hole unprolcc’ed within tho iiatiuice of six feet fiom uny road, footpath, or croaking place, in ordinary uae, shall erect uround auch shaft or hole a substantial two railed fence 18 Mhenever any tent, dwelling-place, stable, or other erec- tion, shall have been so placed aa to cause pubho inconvenience, any Court of Petty Sessions iiihj ordir the removal of the same
19 At the office of each llegistrar shall be kept books for tho entry or all lcgistrirs required by these regulations, as oIbo for the entry of the particulars of all applications therein specified 50 Auj claim or share In a claim, not worked or occupied in »ecutlinnet uni, these regulations, or with anj ordir made by a Justice of the 1 e ice, shall be liable to fin felt me Alluvi ii Claims 51 Inch person holding u miners right shall bo entitled to 1C00 squaic lett or iilluvlul ground, and such claims shall bo nioikeü oil in u lectoiikulur form, the sides of which shall be In proi onion to the number of claim holders, that is to Bay – 1 or one miner, 40 feet by 40 leet t»omiicrs, 41) “ 80 feet three mincis, 00 “»«oreel rom miners, HO ,. 80 Ret and when from uny oaubc it shall hu impracticable lo take the claims ni the foim abuumentioned, a departure from that form ma) be iillovied, so ns lo give to each miner bia prcscr bed area, Íirovltlcd that in no instnucu shall a claim along ii lead exceed in engll t»ice its breadth ho ordinary claim »ill be allowed in extent grt nter than for a party of four Uiver Claims 22 Thirtv feet frontage for each miner will be allowed in beds of riveis or creeks limning ncioss tho whole bed No party of mint re can take up moro than six of such claims, which must be contiguous Quart/. Claims S3 The cluim olio» ed to each miner on tho line of any quart/ vein or reef shull he thirty feet in the direction of the vein or Teef, and t»o hundred j irds in width, and the toul number or claims to be alio» ed for any one party of miners actuilly em- ployed shall not exceed six Provided that until such pirtj shall have commenced cr slung, only one-half or their number need be emploj i d , but the w hole party mubl bo i eprcscnted within foitj eight hours niter the marking or the claim No lesser cxttnt than two claims shall bo allowed, and the boundaries of each claim shall be marked at each end of the lino of reef or v ein, and at euch corner, by substantial pegs, kept at all lime* at least two feet above the ground I xtended Claims 24 On ground previously w orked and abandoned, claims may be token up of the dimensions below specified, by any party of not less than four minera, v i/ – In alluv ial ground, 120 feet by 120 root In the course or a riv er or creek, 400 \ ntcr Privileges 25 A water privilege shall be taken to mean tho right to con- vey, bj means or n race, a specified quantity of water io any localitj, oi the right to a specified quantity of water in its natural channel Such w atcr sholl be measured by a plank sluice he id, hi ticg a sectional area of twelve inches by one, with n f ill of one m t»enty-four Ground sluice heads shall hove twice tbut sec- tional area lite water privllego will bo considered distinct from the ground claim, and may be held in connection with fresh claims All water privileges, not used and upheld fur a period of fourteen duyB, w hen practicable, in tho case of alluvial working, and of one w eck in the case of riv er working, shall be held t» bs forfeited 20 Any miner desirous of cutting n race foi tho conv eyanoo of water shall lodge a notice, in writing, to that effect, with the llegistrar, specifying the number and description of sluice heads required, and full particulars of the same , and shall post similar nonces at tho points of commencement and termination ot the propoBCd lace, and ntthc Registrar’s office Any objection to the registration of such race, filed with tho llegistrar within soi cn dujs, bhall bo heard and determined by a Juaneo of the Peace and two asscesors Should no objection have been so lodged and upheld, the llegistrar shall issue a certifícalo of registry Priority of w atcr rights regulated 27 The holder oía water privilege in the bed or a stream shall bo intitlcd to a prior right to water, to an extent not to exceed three box sluice heads, ov or the bolder of a priv ilcgo whereby the water shull be diverted from the natural channel The priority of right to w atcr under any water permit Bhall be determined by the dutc of registration , but where it can ho shown thut the helder of a prior right cannot obtain by reason of wasto of water or othcrwiic, at least onc-h ilf or tho quantitv of water to be sur- rendered Tor his supply, his priority of right shall not take effect. Measurement of W atei 36 Tho quantity of vv atcr to w hieb anj person may be entitled under a water permit shall bo measured as nearly as ptacticablo to tip, IPPt ft°m whence tiie wiUir la Ural dnçrtçd, mid in so measuring, an allow ance shall bo mane for leakage The nltow Bjico to be mudo on any particular fall or water for such leakage, shall bo determined by testing the leakage from tho race en the full to be selected as most suitable for the purpose Any Justice shall be empowered to make any necessary older for tho testing of a race for the abore purpoao, and every holder of a water Eriv llego shall place and keep a permanent gauge at the head of is luce 29 Holders of watei pi lv lieges shall be bound to boc that other holders who may possoes rights prior to their own are duly iup plied before they »j propnate any portion of tho water allowed bv their permits, and where any person shah appropriate aud use water allotted to any other person, ho shall be deemed to h iv o committed a “ trespass,” aud be liable to be ussesaea in damuges thcicfor 80 Any dam or obstruction in the course of any nvcr or croek shall be hal le, should it in any way inteifero vith the working of the suiiic, to be removed upon the order of any Justice of tho Peocc 31 Authorised persona may form or occupy reacrToira and wells for gold » ashmif purposca and domestic use on unoccupied ground by n sn-toring the Banic, in like manner aa prescribed in respect to water privileges, and the prion tv or ribht shall be re- gulated in the same mai ner Business Allotments 32 Hie extent of lund lo be occupied undci oaoh business license shall be one fourth of an acre, and the form of measure- ment twenty-two yards frontage to anj street or rosdw ty, by fifty five v ard« in depth W hen the land may be situated in a poeltUn detached from any tenta or buildings, and from tho line of any otrcct or roadway, the nrca shall be one acre No persoa shall be permitted to toko up more than I» o allotments, nor to «llcnato or sublet any portion thereof S3 If at the expiration of scv cn working dava from tho dato of registry of a business allotment, tho caine shall not have been im- proved to a value not less than ¿If per acre for town lands, ¿2 for suburban, and £1 for other binds, it ahull become Hablo to forfeiture, and «Tallable to be taken up by any authoriacd person 34 “Whenever any buslncsa or miner’s residence allotment may be supposed to contain deposits of gold, any miner may cater such allotment to search therefor upon payment lo the hold« of the allotment, of such amount, by way of compons itlon for injury to the holding, as maj bo determined bj a Justice and assessors Water Races 35 In all cases where application ia made to tho Government, to authonsotho passage of water for gold mining purposes, or tile pnasugo or anv water or liquid dischargo from gold mining operations, through freehold land, tho pari) making such appli- cation shall pay into the hands of the Commissioner for the Dis- trict the nmounl of compensation to be paid to the possessor of such lundi, before the authority applied for will be fjrantod 30 The amount of compensation so to bo paid shall be fixed end determined in monter following -The party intending to apply ror such uuthority ae aforesaid, Bhall cause notice, in writ- ing under his hand, to bo eon ed upon tho posacssor or the land, setting forth with reasonable certainty the dueclion of tho pro aoecd race, cutting, or other means of effecting tho passage of water-tho quantity of land proposed to bo taken or used-tho timo for which Bamo will bo required-and the amount of com- pensation which such applicant Ib willing to pay in respect of the matters aforesaid, and shall rcqniro the posseesor of such land, if dissatisfied with the amount offered, to appoint, within sovon das /rum the Bervico thereuf, hy writing under his hand, an arbitrator on his behalf to assist in determining tho amount which «hall bo paid as such compensation, and within the same period to forward the Bold appointment to the Commissioner for tho District, und the pnrtv (jiving such notice shall, within the same pellod, bv wiitin^, under Ins hand, appoint on arbitrator on his bibalf, and forward such app diitment to tne commissioner, and every such ap| ointment «hull be dicmedtobo a submission toarbltiatiin on tho part of the person signing the same, and the award or the arbitrators so api ointcd k1, di bo final 17 After nnv such appointment shall huv o been made, neither jvirtv »hall have pn»er lo rev olio tho «arno without the consent of ihe other, r or shall thn death ot cltlit r party operato aa a rei oca- . lion, anil if either parly eh ill neglect wilina tho said period of I «ivinilijt after the tertici of the tuid notice, to appoint an arbitrator, the other rmrtv, having himself appointed an arbitra tor, may appoint such nibltrator to act on behalf of both parties, and such urbi rator may proecrd to hear and determine the mullers soreferred, and his award bhalt be final 38 When each port} shall have appontcd an »rbllrvtor, and either of tuth arbitrators shall, hi fore tho determination of the matters so re fcrrrd to them, die, or refuse, or become incapable tonet, the partj bv whom such arbitrator was appointed mir, by vi riling under his hand, appoint another person in his «ti nil, i rd if Ire fail roto do for the spaco of seven dajs after notice from thcothei parts requiring biui so to do, the surviving arbi- tra ter mo) proceed ht parie 39 When caih of the purtle« shall appoint an arbitrator, such arbitrators »hall, before entering upon the consldcraUon of tho matters referred to them, by writing under their hand appoint nn umpire, and in cruse tho said arbitrators shall fail to make thoir award, in wilting, within fourteen days alter «io day on which tbo last of tLcm waa appointed, the matters referred to them si all bo determined by such timplie, whose award sbill be llnal and conclusivo 40 The costs of and attending tho said arbitration and award shall be in the discretion of tho Eaid arbitrator, aibitrators, or umpire as the case may be li If n tingle arbitrator, or nn umpiro, shall die, or refuse, or become mcapablo to act, before ho shall havo made Ins uwnril, oi shall fall to make such awanl within ten dava after his appoint- ment then the matters so refirrcd to him shall bo again referred to arbitration, as if no former reference had been made 42 The nwnrd shall in all cases be in writing, and bo delivered to the Commissioner within foin teen dava trout the timo of making the same, and may be made a rule of Court on the appli- cation of cither party 43 Application for permission to carry through Crown lanis, on any gold field, w atcr for «old mining purposes, to be used upon alienated lands, mav be modo by any holder of a miners’ right to tho Commissioner in like manner, as prescribed in respect to the conveyance of wutci for use upon Crotin lands, aud tho Minister fur Lands mav sanction a compliance with any such application, whereupon tho Commissioner shall issue the necos »arj “ permit,” which shall have In all respects the like etfect as if granted In connection with the working of Crown lands, and anj holding thereunder Bhall be deemed to be a “claim” within tbo n oauing of the Act Leased Tracts 41 lenses of auriferous tracts will be granted of from 1 to 50 acres of alluvial ground and {quartz reef», and from 200 to 11,00 varils of a river bed for the period not cxoeedlng fifteen j cure, at nu annual rent of £2 per acre, or JL2 per 100 virus Alluvial and quart/ reef tracts shall bo measured In a rectangular form which in the case of the former shall in no Instance exceed in length twice i s breadth, and in the coso of the latter the w Idth shall be as prescribed In the schedule hereto annexed (No 3 ) l.i rersoiiB holding miners’ rights, deshous of obtaining any such leases, shall distinctly mark at each corner the ground so intended to be leased bj them, hy posts, painted white, and not less than four feet in height, and affix thereto noUco of applica- tion , euch application to bo forwnrded as soon as pracUcablo to the commissioner, setting forth tho area of ground taken up, the maclnnerv to be used, and describing tho proposed method of working, the extent ana nature of preparatory work to bo per- formed, the number of men to bo employed within a stated period, and if a company, the constitution of the company, the number of shores, and the names of tho shareholders 40 Tho rent for each year must bo paid in advanco, on or before the 1st January, and the application for the lease must be accompanied by the Bum of £5, when the extent of ground does not exceed 10 acres, and £5 for every additional 10 acres or por- tion of 10 acre», or£l for every 100 yards of a river bed, together with the fee for survey, as per schedule annexed (No J), tho former as a deposit, to bo forfeited by the applicant Bhould the lease not te taken out within one month after Hie granting of the same shall have been notified to him 1 4Ï. The commissioner sholl forward to the Oovcmment cvorj snch application with his report thereon, and shall be empowered to Itsuc tho lease by the authority of the Minister for Lands If, at the expiration of fourteen days after notice has been dulv posted, no objection bo preferred to tho commissioner respe ctlng the lease of such land, ho will be empowered to grant leave for the immediate occupation of it, at the risk of tho applicant, and sill Jcct to the decision of tho Government 48 The Gov eminent will entertain applications for leases tinder these regulations, subject to the following conditions – 1 That the ground applied for is not required fer any public purpose, or is not in the actual occupation of any authorised person 2 That labour «hall bo employed upon tho leased ground according to the following scale -lour mon for ono acre, and two men for every additional aero, in a river bed, eight men for 200 yards, and three men for each additional 100 yards Provided alvrays that who*o steam or water powei is cmplojed, each horse-power of the machinery shall be computed as equal to four men, and when other works of on expensive nature, such as damn, reservoirs, or races have been constructed, a diminution in tbo number ol men required to be employed will be allowed at the rate of two men for ever) £100 to expended, to he determined, in case of dispute, bv a Justice and assessors 49 1 he infraction of any condition of a lease will inv olvo th« forfeiture thereof Frontage Sj stem ‘i0 The Commissioner shnll be empow ered to declaro any field, or division of n field, es regards alluvial workings, to be under tha operation of the “ Frontago System “ ii Bj frontage claim shidl be meant a claim having a width of one mile until gold shall have been struck therein, but on any field, or division of n field, the Commissioner may declare a re- duction of such width C2 A block claim shnll mean an ordinär) claim, marked off in accerdancc with the regulations 53 Any unoccupied localitv wherein any miner or miners slnll desire to sink In search of a lead shall bo deemed to bo “ new ground “ j4 On new ground, within a frontudo district or division, all cluiniB must he nit.rked un tho frontage system, in tho first in- stance 51 V hen the sinking in such ground Bli ill bo found not to le eh n depth of sWtj feet, of which the bottoming of one or mmc shafts on the supposed Uno of lead shall bo a sufilclent test, nil markings on the supposed line of lend shal> bo null, nnd the ground shall then be open for taking up claims in tho block form, provided that each miner shall have the right to include any shaft which hud actually been commenced bj him In his block claim, taking such shaft for the centre 5G The mode of marking a claim on an undeclared lead shall be by the erection of n post not less than three feet in height at either end of the claim 57 VV hen any person shall strike payable gold at a depth not less than slxtv feet, tho frontage system shall be deemed to be in opcraUon and the lead declared And all claims previously hold on such lead shall be cancelled, and tho holders thereof shall ba entitled lo occupj claims according to their priority of occupation on the lead, excepting where uny claim-holder maj have sunk n shaft at least twenty feet in depth, in which case ho shall be entitled to the claim in which his shuft is titoatcd 58 A base line shall be laid down from cither boundary of the firo’rect claim, along tho supposed course of such lead, on which ine the length of the claims shall be marked, and such claims shnll be taken up according to priority of occupation on tho lead CrosB lines sholl also bo laid down, as ncarlj as possible at right angles with the base line, at each boundary 59 If the actual course ef the lead be found to differ materially from lho courso of tho base line, and if the majority of cUim holders allectcd thereby shall desire it, a “cw baso line may bo laid down, and claims on the new line may bo taken np according to their order on the former Une, GO lho occupation of a fresh claim on a declared lead shall bo tal cn bv marking the san c in like manner as on an undeclared lead, but in continuation of the base line, and so soon as the cross line shall hav e been laid, the claim shall bo marked by similar posts at cither end of such cross lines When the claim shall bs reduced in width, the further posts must be withdrawn and placed at each corner of the block claim selected C1 When on any declared lead the sinking shall hav o been found to hav e diminished in depth, so as not to reach slxtv feet, the frontage svstcm shall cease, and all claims thereafter shall thereupon be tnken in the block according to priority of occupa lion on the frontage G2 All cluhus taken up in adv anco of any lino of declared lead, and which would, bv extension of tho line, come within the wings of such lend, must be markid in continuance of the Une, and will beheld to be claims on such declared lead 03 Anj person desiring to take up a prospecting claim on a declared lead may do so at a distance not leis than half a mile in advance of the list paying shaft, bj registering the same, and ho may mark out and hold on Buch prospecting claim an additional claim foi each man employed therein, so long nB tbo cntlro extent of chum sholl not exceed eight claims, or 100 fuel On any undeclared supposed lend double claims mi) in like manner he marked out and registered, so long as tho entire extent shall not exceed twelve claims, or 240 feet All prospecting claims must bo effec- tively and continuoui-lj worked Any number of claims taken up for the purpose of prospecting mnj be amalgamated, hut tho additional claims by way of reward, will only be allowed (on the discovery thcicin of payable gold) to tho registered prss pccling claim Is o prospecting claim on nny declared or undeclared IçrçI shall he (nfcçn. up within half a mile of anv other prosptcting claim C1 Hie length of frontage claims shall be as follows – 1 or two men 40 feet ,, four men 80 feet Noone claim can be takenup for other numbers thanasabov« stated Co Iho width flnolly lo bo allowed for a frontago claim, after the g«ld shall have been struck, shall bo cightj feet, unless when the dipth of sinking shall be found lo exceed 200 feet, after which an additional width of twentj feet shall bo allowed for ovcry 100 feet in depth And tho depth of sinking for anj lead, or portion of a lead, shall be determined without reference to the depth of anj pirllcular shaft CO In the case of a convergence of leads, tho prefeicnce at and onwards from the junction w 111 bo giv cn to the claim-holders on the lead first declared 67. V bcnevci machlncrv may bo cmploved, or other sufilclent reason may exist, any number of claims may ho atualgamitcd VVheic steam machinery is employed, each horsepower of the mucbinerv shall he computed us equal to four men 08 Thewotklng of all claims Bhull bo eflcctiv ely commenced and carrie» forward continuouslj after the cxpirutlon of throe eleir dajs from lho time of taking possession of the same But in the case of a duly declared lead, the registered claims shallnot be required to be so worked, except the twenty Uto claims, whether amalgamated or not, on either line of lead next onwards from the prospect claim, and afterwards m advance of the last payable shaft 69 On the other claims upon a declared lead, the position of which does not require thcin to bo so worked ciery shareholder, or his icprcscntative to the full number required hy tho dimen- sions of the olaim, must be present from J lill 11 o clock s m daily 70 The holder of anj claim bottoming on the lend sholl be allow ed fourteen days to prove the breadth of lila claim Th« claim shall then bo reduced to the prescribed width and marked oil InthccaBcof the shaft and the drive of the holders being without the block claim chosen, thoy can retain such draft and drive for the working of the claim, and such shaft or drive cannot bo token possession of except by consent of tho ordinal holders 71 The clolin-holders shall causo a icd flag to be holstclon the last claim on the lead immediately that gold may have been struck therein, to indicate the couise of the gutter rho holders of such claim must givo ovory information as to the courue of the guttir, and the holders of a shuft must allow it to be en- tered in Uko manner by any person having the w ritten authority of a Justice 72 When any declared lead shall be abandoned for foin teen clear d»ys the declaration of Irnl shall be deemed to be re scinded, The declaration of a lead on which the number of shafts nctuallj at work during the twenty one preceding davs sholl not exceed ten, sholl alho lo deemed to be i escindid but tbo holders of any claims then w orkiug on such kid shall he entitled to retain their frontage 73 The holding of frontnf,c claims will, with reference to any question not herein provided for, come within the terms of tho ordinary general regulations
“Every financial panic bursts up a number of rotten undertakings, which had managed to conceal their hollowness under a show of dividends. The sufferers have no remedy. They often sink out of sight, utterly mined, and even where that is not the case they are averse to any movement in the direction of inquiry or exposure which must begin with a confession of their own confiding folly.”
Sadly for the long term future of gold mining this washing of the hands in relation to government intervention to protect the interest of investors set the stage for a speculative boom to be triggered in the event of a reef gold discovery occurring of sufficient richness to generate a public frenzy.
2nd August 1864
It was not as though this issue was unknown at that time. As an article on limited liability noted in 1864 …
“in France companies are subject to a strict preliminary examination before they are capitalised. In England any seven persons can set up a new association without such an ordeal. They have simply to register certain particulars, which may easily be so described as altogether to mislead the public with regard to the real financial position of their enterprise.”
2nd August 1864
When ihe Legislature, ten years ago, authorised the establishment of partnership» in which the responsibility of each partner or shareholder should be restricted to tho amount of his shares, it was supposed that we had reached a new and happy era m the history of commerce
Limited liability was to inaugurate a mercantile millennium It was a penacea that was to cure all the epidemic diseases to which the financial world was most liable
Every one who disputed or doubted the expediency of the new doctrine, or wanted to have it fenced round with precau- tions and limita ions, waa an old-fashioned, prejudiced opponent of reform, a protectionist m disguise, and an intolerant defender of mvetorato error
We have had a decade of experience since that time, and the peans sung on the triumph of limited liability have now fliven place t« some thin g very hke a wail of defeat, Ihe egislation on the subject has not been followed by all the delightful and happy consequences which wore prophesied ten years ego Ihe complete liberation of commerce from her old fetters has not introduced a reign of financial feli- city
The panics, crises, and failures are quite as frequent as they were under tho old system
There was a grand crash of abortive railway schemes in 1847 and 1S48, but m the aggregate the troubles of the new limited companies aro quite as great
They fail so fast that the Court of Chancery, which acts as executioner, cannot kill them quickly enough to satisfy the pubho vengeance Iho “ Chombors “ of tho Master of the Bolls and tho Vice Chancellors are almost cbiked up with this kind of business, their courts are besieged with petitioners, who clamorously demand the dissolution of the ill fated partnerships, and distribution of their property
So strong is the reaction that it has become undiscriminaling, and we aro by no means sure that a considerable amount of injustice will not bo committed merely through contagious terror For the “ limited ‘ companies rre not all unsound, and their peouhar statutory privilege is not the s«Ie causo of all the disasters which h ive overtaken the financial world Probably it will be found, on examination, that the failures are due, not to limited liability, but to the abuso of it
Tho principle m itself is sound enough-it implies no more than that persons may trade on the understanding of their not being individually liable as heretofore for partner ship debts, euch man to “ his last acre and last shilling That was the old law, and the Act of 1856 simply declared that associations of more than seven partners need not be bound by it unless they liked But then they wero to give tho whole world notice that they oid not subject thom selves to tho ancient rulo of unlimited individual rosponsi bility for ¿ii ts
The wold “limited,’ which is always annexed to their name, is a clear warning If, after Buch a warning creditors chooso to give credit why should thoy bo pruhilited from doing so F With respect to them the Act was simply permissive, it did not compel them to deal with the new companies unless they pleased
But, m truth, the hardships of tho recent legislation have fallen, not upon the creditors, but on the unw ary shareholders AVe speak of their In bility BB limited but oftentimes the “ limit ‘ is so wido that it might almost as well be abrogated Tho more recent undertakings aro regulated by the ‘ Companies Act 1862’ lu the asi-ociadons formed under it, “ each nie mLer undertakes to contribute to the assets of the company in the event of the samo bung wound up during the tiuio^ that he IB a member, or within one year afterwards, for pav n ent|< f the debts and liabilities of the company con- tracted before the time at which ho coñacs to be a member, and of the costs, charges and expenses of winding up tho cenpany ai d for the adjustment of the rights of the con tributones amongst thcnibelveB, such amount as may bo re- quited, not excicding a specified amount
‘ It is true that his responsibility is ícstricted, but ho cannot be quit of it for twelve months after he has ceased to be a shareholder , and withm that period there is always a risk that ho may be called upon to contribute towirds the pay ment of an tinordibts contracted by the company
For such debts the actual shareholder« are primarily liable, and past mem- bers aro not to be called upon unless “ it appoars to the Court that tho existing members are unablo to ia isfy the contributions required to ke mode by them in pursuance of this Act.”
Con M quer t’y, if a phare has pnn-f d through the hands of a | di ztn boldeis in the course of twelve months, every ono of tlie.pe persons moy ponpibly bo required to uiako contribu lie.n-subject always to thin Important limitation, that none “ pball bt lequin d irom any member exceeding tho amount, if any, unpaid on iba flinn n in renpw.t ot which he is liable as a piepent or pat tutniber “ But, oven as thui eil fii.ed, the danger is often terrible
The warning is trite, but it niuct be ra’cd again and again till tho lippon is mote perfectly uuderptiwd by tho inoxporienood j ern r.s wbo are nioHt likely to suffer, that tho »it of giving a cempany an appearance of fictitious htrength and ruspoct Hbilily liHB been earned to consummate perfection in midern times. Therearo wonderful an iota who devoto thom nlvtp exclupivcly to the purpuit, just as thero are prac- titioners who can give to old ago and decrepitude tho ippeamnce of juvenile vigour. The establishment of com i unie s isa profespion in itself. What chanco has the out pidir-the widow with a small dower, or the country parson picking a profitable investment for his modest savings ppainst the cunning, long-headed’. City “ gentlemen who «re ready-most ready-to receive money in oxchango for pbarrp? If the cupidity of gain did not blind inexpenenced investment seekers to tbu most obvious warnings, they would perceive that they havo not a ghost of a chanco in tho uni qual contest with their practised opponents.
The enme in more le gal, but not a whit moro equal, than that plnyed by skittle-sharpers against the rustics who show tbe ir money in London public-houses. No legislation con abfoluttly prevent gulls from being duped ; stdl, all that is pcesiblo e ught to bo done fur their protection ; and in tho m tere«l s of legitimate commerce it is desirable that tho law of limited liability should be, not abrogated, but accom- panied by additional provisions against abuse.
In France, we believe, companies aro subject to a strict preliminary examination by proper officers of tho Governinennt bofora they are cptablithed. In England any seven persons can pet up a new association without such an ordeal. They bave simply to register certain particulars, which may easily be so described as altogether to mislead the public with regain to the real financial position of their enterprise. Until the law in this respect is rendored more stringent until associations are compelled to produce adoquate cre- dentials beioro obtaining authorisation and registration the evil of “ winding-up” will coBtinuo to be general and chronic.
Several years later as the ticking time bomb of a speculative gold investment boom started to loom closer, questions were again being asked as to just what could be learnt from the French experience. In the process this article also wrote the manual on how people could set up a fraudulent company and swindle investors. It was timely advice that many would soon take heed of.
"16th
This law, which was passed on the 17th July, 1856, differs very widely from our own
There are many points in which we may learn from our French neighbours, so as to avoid much of the mischief and misery re ‘ suiting from an abuse of these societies. The action of companies when fairly conducted, and for an object of public utility, is of great value, and it is a pity that the abuse of public confidence should disincline men to moderate ventures to _ cany out objects not practicable by individual enterprise.
When, however, a com- pany is foi mod the honesty of its pro- ceedings depends very much upon the charac acter of the manager and the confidence in himself which he has been enabled to excite.
The provisional directors are little more than guarantees of a colourable scheme which has some degree of foundation. We fear that men of good reputation and real integrity have often sufiered by an unguarded complicity with these uiideitakings, and whatever increases the stringency of the law would be in reality a pro- tection not only to the honest-minded men who are thus betiajed, but also to those too con- fiding persons who, knowing nothing of the affair, trust their money and are ruined.
The French law does not allow limited societies to divide their capital into shares of less than 100 francs when the capital does not exceed 200,000 francs (a franc being tenpence), or less than 500 when the capital exceeds this sum.
No company can be definitely con- stituted unless the whole capital of the com- pany is subscribed, and the shareholders have actually paid in the fourth part of the shares subscribed for.
This fact is to be proved by forms of law which prevent collusion. The subscribers are responsible, notwithstanding any contract to the contrary, to the whole amount of their shares.
Two-fifths of the capital must be subscribed before the shares can be negotiated. Whenever persons offer advantages to a company, such as the pro- perty of a mine, and stipulate for certain shares as advantages, they cannot in virtue of these shares vote in the meetings.
A general meeting must examine and verify the value of what they offer. Until this is done, the agree- ment for purchase is null and void.
The resolutions of the shareholders are taken by a majority; and this must consist of one-tourth of the shareholders, representing one-fourth of the capital subsetibed in cash. A council of vigilance, or surveillance, composed of five shareholder at least, must be estab- lished in every company.
Each council must be nominated by a general meeting of the shareholders immediately after the con- stitution of the society, and before its actual operation. They must be re-elected .every live years at least, and the first council for one j ear only. |
Companies constituted in any manner! con traiy to these articles are null and void. When a company is constituted, the managers and counsel are severally and jointly responsible. They are bound to keep books, to make them- selves acquainted with the state of the pro- perty, and to ascertain whether the divisions of the profits recommended by the managers are justified by the state of affairs.
The issue of shares contrary to the first and second articles of the law, which specify the amount of capital, the value of shares, and the amount to be paid on each of these shares before the commencement of operations, will render the person guilty liable to imprison- ment from eight days to six months, and to a fine of from 5000 to 10,000 francs, or to one only of these penalties. .
The same penalty attaches to the managers of a com- pany. An attempt to negotiate shares which shall not be in accordance with the first and second articles of the law just stated, or of which the payment of two-fifths shall not be effected according to article 3, is punish- able with a fine of from 500 to 10,000 francs.
The same penalty attaches to all who particípale in the negotiation or on the pub- lication of the values of the said shares that is, brokers and newspapers.
The penalties of the penal code are also imposed upon those who, by false lists of subscriptions or payments which do n ot exist, or who pro vohe subscriptions or payments in bad faith, and publish the names of persons attached con- trary to the truth as being, er about to be, attached to the company by any title what soever.
The same penalties are applicable to managers, who, in the absence of balance sheets or by means of false balances, occasion the distribution of dividends among shareholders which have not been really acquired by the company.
If any share- holders desire to carry on an action against the council of surveillance they may appoint their agent at a general meeting, or any individual member may call upon the Tribunal of Commerce to do so. If the council of sur- veillance be not created within six months after the organisation of a company every shareholder has a right to declare the com- pany dissolved, although the Tribunals of Commerce have power to grant a longer delay. I
t will be seen by a careful consideration of these several provisions how stringent the French law is, and how calculated, in many cases, to prevent those gross frauds which have been the opprobrium as well as the sorrow of English society. The plan which formerly existed was to form a company-to issue shares, and to sell them next day, and so on taking the chance of the success of the under- taking, and of all the delusions and falsehoods by which success might be anticipated.
The plan was to give to certain persons who proposed a scheme certain advantages. Thus pro- prietors of mines obtained an enormous sum of money as their share of the speculation.
To other gentlemen whose influence might float the concern, another quantity of shares was given as a bonus ; the rooney of other share- holders being the means of testing the scheme. The plan was to make glowing estimates of value and false calculations ©f profit, and by all kinds of schemes to pillage the outsiders. _
All these schemes are met by the most serious responsibilities in the French law, and enor- mous sums of money have been recently paid by those who were responsible for the proceedings of companies to indemnify those who were cheated, It is true that nothing can prevent dishonourable adventure, or the lons of those Who trust. In spite of these prohibitions and restrictions there will always be found some avenue by which the fraudulent can make a profit. Thin, however, is no reason why the Miingency of the law should not recognise as ofiences acts which are clearly fraudulent, and put a stop to the speculation of those who “lig” the market by fictitious sales to catch the un wai y.
At the time the new legislatiion went through, the monthly gold news was as sanguine as ever about events.
It did note however that "it is anticipated that the new Gold-fields Bill will have a very beneficial effect upon the mining interest throughout the country. It provides for the lease of auriferous lands in tracts of 60 acres, for a period not exceeding fifteen years, at a rent of £2 per acre. This will enable gold mining to be carried on by co-operative companies on an extensive scale, and no doubt the system will shortly double our annual yield of gold."
"23rd
There is very little news of an important character to record under this head. We have heard of very few lucky “finds,” and of but one or two discoveries of fresh auriferous country.
Quartz crushing operations appear to be carried on at the Western Gold Fields with much the same amount of success as usual, the yield of gold from these quarters having, during the past month, been a trifle above the average of the preceding month.
At the Wentworth mines the crushing mill has been idle for some time past. A quantity of material for crushing has been raised, and is waiting for the machine to resume operations.
A very rich lead was struck at these mines by a party of miners a short time ago, but it soon ran out, and had to be abandoned. The miners generally are doing well.
At Forbes there has latterly been a good deal of litigation with respect to miners’ rights, and this has provoked no small amount of ill-feeling and dissension. Mining operations are, however, being carried on with, vigour and with good results.
Eighteen shafts have been within the past ten days bottomed on payable gold, on “ Thompson’s Lead.” The population at the diggings is increasing daily, a great many persons being attracted there by the richness of the field.
About a week ago there was a very heavy fall of snow at Kiandra, the water ditches of the miners being filled up with the drift, and the works of the ground sluiceis were, therefore, stopped for the time.
A splendid nugget, weighing 45 ounces, was found in Thompson’a Lead, at Forbes, on the 20th instant. The recent rains have enabled miners at the Rocky River to commence sluicing, and their labours have been very remunerative.
In some eases however, the rush of water was too great, and quantities of wash dirt were swept away. A new, and, as it is said, pay- able goldfield has been just opened at a place called Oban, about thirty-five miles to the south-east of Armidale.
About seventy ounces of gold have already been received from this place. It is granular and scaly-, and in size resembles peas and beans. The place is represented as richly auriferous. A new quartz reef has been opened at Campbell’s River about a milo from the Swallow’s nest diggings. It has been followed down about 105 feet, and parti- cles of gold are easily discernible throughout a. dis- tance of about 35 feet.
One hundredweight of quartz taken from the reef at various depths and crushed, )ieldcd 4 oz. 4 dwts. IG grs. ot gold. Claims have ali eady been taken up north and south ol’ the origi- nally discovered reef, and in many cases the prospec- tors have struck gold.
At a place called Homewood, on Jerrawa Creek, near Dalton, two men have prospected lately with. some sueccsB. They found the gold, and by surfacing only have been able to make 2 dwts. per day. The gold is of good quality, shotty, and about the size of peas.
It is anticipated that the new Gold-fields Bill will have a very beneficial effect upon the mining interest throughout the country. It provides for the lease of auriferous lands in tracts of 60 acres, for a period not exceeding fifteen years, at a rent of £2 per acre. This will enable gold mining to be carried on by co-epera tive companies on an extensive seale, and no doubt the syBtem will shortly double our annual yield of gold. m
Then suddenly – an optimistic note at last. The news from the goldfields was very good no less.
First up reef gold mining at Tambaroora was starting to record some memorable returns but most exciting of all was the discovery of a new rich quartz vein adjacent the Weddin Mountains north of Young.
Would this however be yet another duffer to add to the large list of finds that never lived up to their early promise?
"23rd
The news from the goldfields is very good this month
At Tambaroora a large nugget weighing 87 oz was found. The quartz crushings at that place are yielding first rate returns.
In one case 400 oz of the precious metal were obtained from eight tons of quartz.
A very rich quartz reef has been discovered by a party of prcipectors ra he Weddin Mountains 1 his reef H situated Hbout fhrt) bxc inilea from the townsbipof Young between Lioiudab and Bogobogolon/ Stations
A regular rush te this newl) discovered reef set in at once, and it is stated thtt most of the persons w ho have v ent ¿red there aro- doing very well Gold is distinguishable b) i ho naked eye wherever the reef appears 1 orix claims have boen marked out, and sevou parues are already hard at work
1 he intelligence from the I nchlan is, on tho whole favourable, altht ugh tbo diggers there aro not all as »uc eis-fiil as could be wished
The di coverv of an apparently nth field nt “Ihompion slead ‘ attracted a ver) large num- ber of miners there and »he results of the working» b/ no means justified their expectations
Some large nuggets bave been found, and altogether tho yield of told is con- siderable although a great manv diggers have become dis heartened from their want of success Ihe rush to the field bus atmest trebled (ho population, and a township, almost as large oui orbes, has sprung up on lhompson s lead
The new b from Lucknow is very good, one party thora getting fortv ounces of gold to (he (on of wash dirt No inlelbpcnce of any lmnortanco ha» come (o hand respecting the Northern goldfields but the yield of gold from thence appeals to bo undimimshed
Perhaps not. As the year came to a close the news from the Weddins on the field then being called Emu Creek continued strong with miners flocking to the site and construction of the township that would become Grenfell well underway.
"18th
Young is almost deserted by miners, the sinking being forty-five to seventy feet, and the prospecta 1 to 6 tlvvts. to tho bucket ; wash-dirt two to ¿ve feet thick.
About ninety golden holes have been punk already, extending fully two miles; also rush taken place on a large flat which extends for miles ; wrator very scarce and distant three milca.
A small load was washed on Friday and produced 1 oz. 0 dvrtd. A hole waa bottemed and washed on Satur- day producing 9 dwts. from one bucket dirt, and threefeet washing Bt’ilT.
Gold alrcody got for 300 feet. A wide street has been formed, and atores und hotels Ore being erected. This is likely to be tho larges: rush that has taken place in this district.
The Com- missioner’s absence is much felt, and police protection tnuch required. The reefs arc looking well. Mr. Lyons’s store was robbed here on Saturday night, and G oz. gold token. Weather very warm. Business brisk. Great demand for goods for new JtUBh, Large numbers of Chinese arriving.
21 December 1866
THE GOLD FIELDS.
roREMOST among the “remarkable events” of the past month, wo may place tho discovery of a rich gsld-flelti at tho Weddin Mountains The glad tidings as to the extont and richness of the nunfurous area met oponed up at Emu Creek havo been confirmed, and there has boen “ a rush” to that locality
T hero aro now over S000 diggers upon tho ground, and most of them are making money This luckv and has infused spint into tho diggers, w ho for some time past have been working hard for baro life, and rarely making more than their expenses Tho nows that reached them, froai Emu Creek spread quito a frenzy among thom, and soon the tido of population set towards the favoured spot
Numerous shafts were opened with mora or less profit, and in a week or two there was a large population on tho ground
A township hoä been niorkod out there, stores havo been sent up by enterprising speculators, and a news- paper baa been established under tho name of the Emu Oreel Adiertitci
The people ou the diggings are very quiet and orderly, and, apart from disputes respecting boundaries of claims, tuero are few quarrels among them. Still the excitement is considerable, and the population is largely augmented overy dav T
ho idlers about Sydney have betaken themselves to the diggings m lar^o numbers, and consequently tho distress ann ng tho working classes is no longer so apparent ao it was a fow weeks back Already the discovery of this feold field has given a now impulso to business
There in little news from tho other gold fields of the colony, though tho vield if the precious metal bas not diminished of late At the Northern gold fields tho diggora r re doing woll Up« ards of 200 aro at w ork on Thompson’s 1 lut, ana bohío additional shafts aro being sunk at Cameron s Swamp
On the Rocky River there is little doing, tha miners being mainlv engaged in vva«hmg out their stuff Gold is being got in payable quaEtitie3 on thi Mitchell and Nymboida Rivers No news worth mentioning has boon received from the Western gold n«lds The escort returns for tho v ear show a filling off in tha yield of gold In 18G5 tho quonlitv received wa« 230,934 0/ , m ti-e present year only 194 937 oz Uwe as yet como to band, YOUNG. Saturday Eti-mino. ‘ Tub Emu Creek rush lonttnues much the samo as »hen )ou received jour last communication On the Main Gull) about 1100 men are on payable gold, and on
One milo Gully, that rcccntl» opened, about 100 liavc struck golden holes, but here the gold is verj patchy, ond the jiold will be very uncertain In the Main Gull), stuff is expected to run an ounce to the load, when witcr is obtained, at present there is “none, except onlj as much na is contained in a reser- voir of the runlioldcr,
Mr Woods he is selling the -water at sixpence per easl , and sells ubout ISO per diem-miking a prctlj little income out of it Some springs, for domestic use, lmv ebcen opened about a mile away Whnt stuff has been washed has been taken to the Brundah Creek, at a tost of twelve shillings per load I can na yet give an undecided opinion as to the held “Vou will be glad to hear that the harvest is most abundant olonD the road Ihe rcaptng of the early crop of when has eomnienced, and everywhere there is a fine yield, particularl) the whole of the country I came through It will run fully twentj bushels to the acre
About dunning there is a little rust but it only oirects the straw, and has not re iched the grim ‘Hie lute whcit is slightlj touched with rust and there are tears about it lhere i& great difhcultj in obtaining labour for cutting the vvheit It was reported in “V a^s that reapers were asking forty ilidliii[,8 on acre on the tumut Between Goulburn ind ass labour is not obtainable Nobody has heard anything of the uncmplojod who obtained freo rail- way tickets As everjbodj that passed the road was liound to the new rush, it is thought thej haye all gone there