It appears, then, from the "Selections," that a Mr. Lavelle on the 20th of August, 1873, applied for the right to carry on mining operations in Kolar. Two years previously he had examined portions of the Kolar district (without any grant it would seem, from no mention of one being made), and found three auriferous strata, in one of which he sunk a shaft to the depth of eighteen feet, and found gold increase in quality and size as he went downwards. In the event of a mining right being granted he proposed to begin work again in November. After some correspondence came a letter from the chief commissioner, dated September 16th, 1874, submitting conditions (which must be regarded as final) as the basis of an agreement (to be afterwards legally drawn up) to be entered into between the Government and Mr. Lavelle. It is unnecessary to recapitulate all the conditions; suffice it to say that the right to mine in Kolar was to extend over twenty years, and that a royalty of ten per cent. on all metals and metallic ores, and of twenty per cent. on all precious stones, was to be paid. On September 20th, 1874, Mr. Lavelle accepted the terms, but what he did or did not do as regards mining does not appear in the "Selections," and I find it merely stated therein that on March 28th, 1876, leave was given him to transfer his rights to other parties. It, however, appears from a statement made by Mr. Lavelle in 1885 to the special correspondent of the "Madras Mail,"[28] that a small syndicate was formed, and some work carried on in the native style, though little success seems to have been met with, and the work was abandoned. About a year afterwards it was again recommenced by Mr. Lavelle, who in the meanwhile had been prospecting in other parts of Southern India, and he succeeded in once more attracting attention to the Kolar field, and subsequently various companies were formed, but so disappointing were the results obtained that all were practically closed in 1882, except the Mysore mine, which was working to a small extent. In February, 1883, the Nundydroog mine was ordered to be closed, and almost every other mine was in a state of collapse. Caretakers were put in and only a little work done. Early in 1884, when only twelve or thirteen thousand pounds of their capital were left, the Mysore shareholders were convened. Some were for closing at once and dividing the remaining capital, but, acting on the advise of Messrs. John Taylor and Sons, of 6, Queen Street Place, London, it was, fortunately for the province of Mysore, determined to spend it on the mine. The shares were then as low as tenpence. The company began to get gold about the end of 1884, and the prospect improved so much that the Nundydroog mine in May, 1885, was enabled to raise money on debentures, and so to again carry on work. If the shareholders of the Mysore company had not persevered, it is almost absolutely certain that the whole of the Kolar gold field would have been permanently abandoned. This is just one of those cases which cheer the sinking hopes of shareholders, and attract vast sums of money to gold mines; and no wonder, when we find the chairman of the Mysore company apologizing lately because he could not declare a dividend of more than fifty per cent.; that up to the end of 1892 the gold sold by the company realized £1,149,430 2s. 1d., and that the total sum paid in dividends amounted to £602,156 10s. 6d.
Opinion Digest
Gold, Sport, And Coffee Planting In Mysore — Part 124
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