It will be seen that mines representing a gross capital of about four and a quarter million pounds were brought out, and of this, more than one half was put into the hands of the selling promoters, thus averaging £70,000 as purchasemoney for each property; and, so far as can be ascertained, the original concessions would either cost them a nominal sum, or, making a liberal computation, not more than a mean of £3,000 each. Many of the companies. have been wound up, others have got to the end of the small capitals left them for real explorations; but in no case has any dividend from actual mining been paid, the whole of the money having been spent in machinery, directors' fees, and those of the staff. Taking the present market prices as an index, the whole of the properties would not fetch one-tenth part of what was paid for them about two years ago.

It would appear from investigation that the hands of the Indian Government officials are not altogether clean; and the papers issued in reply to a recent question by a Member of Parliament, asking whether free grants of land made in the Colar or Mysore district to certain of these high-souled public servants were palmed off as mines, and for which they demanded and obtained from four companies £245,000, do not clear up their transactions in a very satisfactory manner.

So early as 1873 and 1874 some prospecting was done, and local companies started in the Madras Presidency to search for gold in both districts, but the results never appear to have brought profits to the searchers. Engineers were employed to survey the ground, and when they decided against the Fields, more pliable experts seem to have been found who could hold out better hopes. By much manipulation, aided by powerful Stock-Exchange influence in London, a few companies were brought out here at the end of 1879. These, successfully launched, led to others being formed in the following year, and by the end of 1880, trading on the opinions of a noted Government surveyor,-who seems to have found gold in every clump of Wynaad soil, and "true fissure veins" in the greatest abundance, and whose report was printed and extensively circulated, a few pioneer companies were formed with the intention of giving birth to offshoots, as well as to do some show of mining. This surveyor continued to be mentor to a few of the properties while the floating mania proceeded; but long ago saw it wise to desert his "old love."

Early in 1881 the business of floating was commenced

E

in good earnest, and, assisted by favourable and glowing accounts of the new Eldorado, companies succeeded in selling, at fabulous prices, part of their "reefs" and "fissure veins" to other companies, formed for their convenience. Market quotations ran high; I shares were selling for £3 to £4; and all the coffee plantations which did not pay when laid out for the production of this aromatic bean, were promply converted into gold mines. The mining papers were elated, and did their best to further the "industry," and much money, unfortunately, changed hands during the process of placing on the English market. Dubious telegrams of uncertain import: "Just about to commence crushing," "Will crush in a month," "Have received all machinery," "Reef opening out well," "Wealthily auriferous," "Have had to erect huts to keep natives from stealing it," made shareholders in a merry mood, and enticed them into subscribing to the next new issues. The crowning touch was given by the noted "four ounces to the ton telegram which, at the time of its despatch, confirmed all the well-considered prophecies of believers in the mines. This was wired at a time when the company in receipt of it was about to ask for additional capital, and the reason of its despatch has never been clearly understood, although many have since fearlessly asserted that they can now fathom its meaning. It was even attempted at that time to discriminate between those that would pay, and others that had little chance to succeed; but since those days all have sunk to the same level, which is as near zero as they can possibly get. Some have even got lower than this-their capital all gone to the winds, and in debt besides.

Very few extracts from prospectuses will serve to illustrate the bases on which what were considered to be the most promising were launched. First, we mention an offshoot from a parent company :-"With the object of "securing unanimity, as well as uniformity, of management, "both companies will be conducted under the same board "and staff." Considering that for one "valuable gold reef" £130,000 was obtained, leaving only about a third of that sum in hand to provide mining appliances and working expenses, the value of this unanimity will be appreciated, as one board cannot refuse another composed of the same directors anything they choose to ask of each other. "Ac“companying this prospectus will be found a copy of a "special report on the position and riches of the reef, and "the prospect of successfully working it." Assays of samples of quartz are mentioned, showing from nearly two

ounces down to a few pennyweights of gold per ton, and remarking that, "as the reef is opened out and worked, it may, from general experience, safely be assumed that the quartz will improve." It was assumed that, to work the mine properly, 100 stamps would be employed, and an estimate was given that £50,000 would defray their cost, and that afterwards, on certain favourable conditions, "an " annual profit of about £68,000, equivalent to over 35 per "cent. on the capital of the company, would be earned." It omits, however, to mention that, if these stamps had been purchased, after paying for them, on their own estimate, only £10,000 of their capital would have been left in hand for working operations, seeing that, of the original capital of £190,000, £130,000 had been paid by way of purchase-money. So much for the unanimity of the directors! What about the prospects of shareholders? All the risks of their dividends on a capital of £190,000 are to be staked on a cash balance of £10,000, which would not last long in keeping a London office going, never speak of conducting mining explorations.

A prospectus of another mine, which somehow did not command monetary support to the extent it desired, states in one of the reports contained in it: "I set more value "on the ancient miners and Koorumbers having worked "the reefs so very extensively near the surface, and as deep "as they could go with their rude appliances. This to me is the best guarantee that the reefs must contain gold in "paying quantities." But much as we may scoff at the experience of the earlier ages, these ancient miners and Koorumbers, too (if they are two sets of individuals), seem to have had the best of it, and took away all they could lay hold of, to the distinct disadvantage of their modern successors. Again, the same prospectus tries to "feather its own nest" by speaking of the pseudo-successes of others" During the last fortnight, rumours have been "received of the first crushing of the reefs in the first"formed companies in this district, which has caused the "shares of the various companies, already at high premiums, to advance a further 20 per cent. to 200 per cent." They disdain to go into details, but think it quite sufficient to say "The directors of this company, in holding forth expectations of dividends to the shareholders without "going into intricate calculations and figures" (these are immaterial, evidently, when begging for capital!) "will only "submit that their prospects are as good as those of any "India gold-mining company that has yet been offered to "the public," which is saying very little. They guaranteed

10 per cent., too, for eighteen months; but before that period had elapsed were relieved from this obligation by the inconvenience of liquidating.

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The highest capital asked for any of these undertakings was £400,000 for six mining claims or estates, and £275,000 of this was to be paid to the vendors. The following sentences in their prospectus," Reef No. I "has evidently been a favourite reef of the ancient gold miners, as the quantity of stone raised and now ready for a crushing-machine is enormous ;" and "Mr. P. has "personally assured the directors that in his opinion the Wynaad contains no richer reefs than those he has seen on those properties,"-read curiously when contrasted with the report of the surveyor sent out by the company early in 1883, who failed to find out anything worth mining for, a similar report being given at the same time to various other properties in that district. A WYNAAD REDUCTION AND SMELTING CORPORATION, LIMITED, capital £250,000, was also endeavoured to be floated in 1882, but it does not appear to have gone to allotment, which is so far satisfactory, as there has been little to smelt, and nothing to be reduced save the unlucky holders of shares in the gold mines of our Indian Empire.

When the time came for returns of crushing, the ounces per ton had dwindled into fractions of pennyweights, but hopes were buoyed up by information that the bulk of the produce was not "free gold." The gold, however, was then to be found in the pyrites; but, although promises of sample lots to be sent over to England for treatment were numerous, no fulfilments of these promises have been made. It is singular that, during all these years, no trial shipments of ore or pyrites have found their way to our shores to be experimented upon, but only samples, which were treated in the laboratory, and have proved of little value as a test for working on ommercial scale.

In the light of all that has nappened, it is not reassuring to look over the lists of directors, and find that many of the names are those of gentlemen occupying responsible positions in society; and for their own sakes, although they cannot be altogether absolved from the haphazard way in which they have allowed companies to be promoted, we trust that they have been as much misled as their names have misled the public into supporting the schemes which have been set on foot. A profusion of Indian majorsgeneral grace the boards, which, in the circumstances, was, perhaps, to be expected. So far the companies seem to have been instrumental only in spending their respective

capitals by organising pleasure trips of inspection to India for the benefit of their travelling directors, in taking enormous fees for their services, keeping together large London establishments, and scattering their funds in other directions. Only at the last moment, while yet enough remained in the coffers to defray the expenses of the visits, have some of them sent out experienced men to examine the properties and inquire into the delay in getting returns, and they have now communicated the intelligence that there are no returns to get. This might have been known three years ago with equal correctness had unbiassed men been despatched to the " fields," but it is, perhaps, safer to get the capital together first, obtain the purchase-monies, and then get an independent, if unsatisfactory, report at the shareholders' expense, than for directors to assure themselves of the problematical state of affairs beforehand, in which case, of course, no shareholders' fund could have been brought into existence. Instead of sales of part of their properties to new companies, as prophesied in prospectuses, an opposite course is now being adopted of amalgamating the old ones, so that those with some capital left and those which have gone through theirs, may dwell in unity during the remainder of their careers.