Getting Gold: A Practical Treatise for Prospectors, Miners and Students

by J. C. F. Johnson

Then Directors have to be appointed, and these are seldom selected because of any special knowledge of mining they may possess, but as a rule simply because they are large shareholders or prominent men whose names look well in a prospectus. These gentlemen forthwith engage a Secretary, usually on the grounds that he is the person who has tendered lowest, to provide office accommodation and keep the accounts; and not from any particular knowledge he has of the true requirements of the position.

The way in which some Directors contrive to spend their shareholders' money is humorously commented on by a Westralian paper which describes a great machinery consignment lately landed in the neighbourhood of the Boulder Kalgoorlie.

"It would seem as if the purchaser had been let loose blindfold in a prehistoric material-founder's old iron yard, and having bought up the whole stock, had shipped it off. The feature of the entire antediluvian show is the liberal allowance of material devoted to destruction. Massive kibbles, such as were used in coal mines half a century ago, are arranged alongside a winding engine, built in the middle of the century, and evidently designed for hauling the kibbles from a depth of 1000 feet. Nothing less than horse-power will stir the trucks for underground use, and their design is distinctly of the antique type. The engine is built to correspond—of a kind that might have served to raise into position the pillars of Baalbec, and the mass of metal in it fairly raises a blush to the iron cheek of frailer modern constructions. The one grand use to which this monster could be put would be to employ it as a kedge for the Australian continent in the event of it dragging its present anchors and drifting down south, but as modern mining machinery the whole consignment is worth no more than its value as scrap-iron, which in its present position is a fraction or two less than nothing."

Next, a man to manage the mine has to be obtained, and some one is placed in charge, of whose capabilities the Directors have no direct knowledge. Being profoundly ignorant of practical mining they are incompetent to examine him as to his qualifications, or to check his mode of working, so as to ascertain whether he is acting rightly or not. All they have to rely on are some certificates often too carelessly given and too easily obtained. Finally, quite a large proportion of the allottees of shares have merely applied for them with the intention of selling out on the first opportunity at a premium, hence they have no special interest in the actual working of the mine.

Now let us look at the prospects of the Association thus formed. The legal Manager or Secretary, often a young and inexperienced man, knows little more than how to keep an ordinary set of books, and not always that. He is quite ignorant of the actual requirements of the mine, or what is a fair price to pay for labour, appliances, or material. He cannot check the expenditure of the Mining Manager, who may be a rogue or a fool or both, for we have had samples of all sorts to our sorrow. The Directors are in like case. Even where the information is honestly supplied, they cannot judge whether the work is being properly carried out or is costing a fair price, and the Mining Manager is left to his own devices, with no one to check him nor any with whom he can consult in specially difficult cases. Thus matters drift to the almost certain conclusion of voluntary or compulsory winding up; and so many a good property is ruined, and promising mines, which have never had a reasonable trial, are condemned as worthless. But let us ask, would any other business, even such as are less subject to unforeseen vicissitudes than mining, succeed under similar circumstances?

It is now very generally agreed that to the profitable development of mining new countries, at all events, must look mainly for prosperity, while other industries are growing. Therefore, we cannot too seriously consider how we may soonest make our mines successful.

What is the remedy for the unsatisfactory state of affairs we have experienced? The answer is a more practical system of working from the inception. Although it may evoke some difference of opinion I consider it both justifiable and desirable that the State should take some oversight of mining matters, at all events in the case of public Companies. It would be a salutary rule that the promoters of any mining undertaking should, before they are allowed to place it on the market, obtain and pay for the services of a competent Government Mining Inspector, who need not necessarily be a Government officer, but might, like licensed surveyors, be granted a certificate of competency either by a School of Mines or by some qualified Board of Examiners. The certificate of such Inspector that the property was as represented, should be given before the prospectus was issued. It is arguable whether even further oversight might not be properly be taken by the State and the report of a qualified officer be compulsory that the property was reasonably worth the value placed upon it in the prospectus.

Probably it will be contended that such restrictions would be an undue interference with private rights, and the old aphorism about a fool and his folly will be quoted. There are doubtless fools so infatuated that if they were brayed in a ten hundred-weight stamp-battery the "foolishness that had not departed from them" would give a highly payable percentage to the ton. Yet the State in other matters tries by numerous laws to protect such from their folly. A man may not sell a load of wood without the certificate from a licensed weighbridge or a loaf of bread without, if required, having to prove its weight; and we send those to gaol who practise on the credulity and cupidity of fools by means of the "confidence trick." Why not, therefore, where interests which may be said to be national are involved, endeavour to ensure fair dealing?

Then with regard to the men who are to manage the mines, seeing that a man may not become captain or mate of a river steamboat without some certificate on competency, nor drive her engines before he has passed an examination to prove his fitness, surely it is not too much to say that the mine manager or engineer, to whose care are often confided the lives of hundreds of men, and the expenditure of thousands of pounds, should be required to obtain a recognised diploma to prove his qualifications. The examinations might be made comparatively easy at first, but afterwards, when by the establishment of Schools and Mines the facilities have been afforded for men to thoroughly qualify, the standard should be raised; and after a date to be fixed no man should be permitted to assume the charge of a mine or become one of its officers without a proper certificate of competency from some recognised School of Mines or Technical College. The effect of such a regulation would in a few years produce most beneficial results.

In New Zealand, whose "progressive" legislature I do not generally commend, they have, in the matter of mine management, at all events, taken a step in the right direction. There a mine manager, before he obtains his certificate, must have served at least two years underground, and has to pass through a severe examination, lasting for days, in all subjects relating to mining and machinery connected with mining. In addition, he must prove his capacity by making an underground survey, and then plotting his work. The examination is a stiff one, as may be judged from the fact that between 1886 and 1891, only 27 candidates passed. Then the conditions were made easier, and from that date to 1895, 19 passed. Of the 46 students who gained first-class honours, 30 have left for South Africa or Australia, in both of which countries New Zealand certificated men are held in high estimation.