The Enner Glynn Coal Mining Company Ltd

On the 6 September the directors recommended that the Jenkins Hill Association be formed into a company with 5000 shares of £ 1 each (Is was to be paid on application, 2s on allotment, and calls not to exceed Is per month). It was also recommended that the present shareholders receive 1000 fully paid up shares. An amendment that this be only 500 snares was lost but was subsequently agreed to at a meeting a week later.

The company was to be registered when 2000 subscribing shares had been applied for. A. A. Scaife, W. Haddow, Gibbs, A. St. John and A. H. Bisley were to act as a committee in conjunction with existing directors to name a provisional directorate. Newman and F. A. Bamford were appointed brokers and Newman was to act as temporary secretary. To enable work to continue in the mine in the meantime the directors were guaranteed a further £50 to spend over the amount of funds at present available.

On 28 September the prospectus for the new company was advertised in the Colonist and Mail and gave the names of the 18 provisional directors. The Mail also published in full Taylor's report on the Enner Glynn property. In this Taylor considered that the coal should sell between 20s and 25s per ton (slack coal at 10s per ton) and as boreholes in the coal at the bottom of the shaft had yielded gas it was possible that gas and petroleum might also occur in commercial quantities. If this was the case then Nelson "would soon be converted into a southern Pittsburgh, with its engines driven, and its houses and streets illuminated, by a boundless store of natural gas".

These claims of Taylor's and reports of coal being found in The Brook and elsewhere in East Nelson (e.g. Hiwipango) resulted in Alexander McKay visiting Nelson in October 1895. That the association did not invite McKay is clear for Gibbs wrote on 20 October that "McKay came over suddenly on Saturday week and inspected the mine on Monday (14th). Report favourable but all against Taylor". McKay referred to this in his official report "It has been gravely asserted, in reports to the association and announced in lectures before the public, that the Brook Street Valley coal measures belong to the Carboniferous period, and are representative of the true English Coal Measures". He then went on to quote the fossil evidence as determined by Hochstetter and many others that the coal measures were indeed younger and that "should for ever place the matter at rest and byond controversy". Gibbs' position in this controversy is uncertain. As a provisional director (appointed on 13 September) he was closely involved with the prospectus and his rewrite of it was accepted, with modifications, by his fellow directors. Gibbs not only had a good understanding of geology but was in close contact with amateur geologists such as W. F. Worley (Worley taught with Gibbs at Central School and after his retirement in 1913 until his death in 1923 was Honorary Director of Nelson School of Mines). All this was of more than academic interest for what was at stake was whether the Brook coal was of high quality (i.e. bituminous). Although Taylor was wrong about the age he was later to be proved right about its quality, it was indeed bituminous. As regards the prospects of winning coal in the Brook Valley, McKay told the Colonist on 22 October that he was "more favourable impressed than he expected to be". In his official report he estimated that between 20,000 and 40,000 tons of coal were probably present but largely because of the steep dip and the apparently limited extent of the coal measures along the strike of the seam the amount that could be economically recovered would prove considerably less. He considered that the mine could be worked with a comparatively limited output for many years.

1895 was a time of financial depression in New Zealand and although a large number of subscribers responded to the prospectus only 1340 out of a minimum of 2000 shares were applied for. In addition a total of 500 fully paid £ 1 shares in the new company were to be allotted, on 31 December 1895, to the original 164 members of the association. At a meeting on 19 November it was decided that this provided sufficient capital to develop the mine and on 2 December 1895 The Enner Glynn Coal Mining Company Ltd was registered with a minimum of 1200 shares. In addition to acting as colliery proprietors, listed amongst its objectives was the construction and maintenance of any waterworks, gas works, ponds, reservoirs, water courses, railways, tramways, wharves, piers, docks and canals, etc., that may be required. Capital requirements were estimated at £ 660 to sink a shaft to 300ft, £ 50 to extend a drive from the shaft so as to be able to work the seam, and £ 100 for equipment such as trucks, etc. No doubt influencing potential shareholders was that work in the five weeks prior to the meeting had shown the seam to widen to 13ft. Also before the meeting was a testimonial from Griffin and Sons Ltd regarding the coal and a report of an important discovery by Worley. Some indication of what this report was is given in Gibbs' diary and the notebook of another amateur geologist, John P. Hornsby who sometimes accompanied Worley, Gibbs and O'Brien on field trips. Hornsby (18/11/95) records that whereas "Mr McKay only allowed 2 chains for the coal to run from the mine – Mr Worley has traced outcrops from (the) mine … to run continuously to (the) Gorge (distance of) 1 mile". The gorge is a deep gully east of the old Enner Glynn workings of Jenkins and the Nelson Coal Company.

On 13 December 1895 the new company held its first general meeting and to get the shareholders into a suitable frame of mind it was reported that £ 100 had been received from the sale of coal. William Haddow (whose occupation was given as commission agent having retired in 1891 from the firm of Neal and Haddow Ltd) was elected Chairman of Directors. Other directors were Scaife (accountant), Roughton (grocer), Gibbs (school teacher), T. Pettit (manufacturer), L. Kerr (jeweller) and H. Baigent (builder). The directors were authorised to advertise for a secretary and on 16 December, Bamford was appointed. Seven days later W. C. Bennett, formerly of the Champion Copper Mine in the Roding, was appointed mine manager and commenced duties on 2 January 1896.

The main task to be tackled was the sinking of a new shaft to replace the 329ft deep prospecting shaft. As the seam was known to pinch out to the southwest the site of the new shaft was on the terrace gravels closer to the Brook Stream and 60ft lower in altitude (Fig. 3, 4). After penetrating "slates" below the terrace gravels, inflows of water were encountered in the shaft (this inflow would have marked a major fault that forms the upstream boundary of the coal measures). A windlass was initially used until the shaft reached 40ft then the horse whim on the old shaft was shifted on site. The shaft was divided into two compartments each with internal dimensions 4ft x 3.5ft. One compartment was to be used for raising coal, etc., and the other could be used for ladders. Windows were left from which drives for coal extraction could be constructed. It was intended to sink the shaft to a comparable depth to that reached by the prospecting shaft page 14

Fig. 3 Looking southwest across The Brook towards the new shaft on the right and the old shaft, now minus the whim, in the centre. April 1896.
– F. G. Gibbs photo courtesy Nelson Provincial Museum.

Fig. 4 The new shaft at the Enner Glynn mine in April 1896. The horse in the harness operates a whim, a device for raising materials up the shaft.
—F. G. Gibbs photo courtesy Nelson Provincial Museum.

page 15but with only £ 130 available it was stopped at 183ft. Instead a drive was developed from the 160ft level. This proceeded by a devious route towards the old workings so as to avoid a possible collapse and to prevent the loss of fresh air up the old shaft. The underground work was largely carried out by Wise and Gribble who were also major shareholders.

J. N. W. Newport writes that the timber in the mine was "black birch" supplied by the Packer family from their property in the Maitai Valley. Sapplings were used as uprights and split slabs for the sills and caps. Work progressed through 1896 and in September the mine was visited by the Inspector of Mines, N. D. Cochrane. Cochrane, although pleased with the timbering, required a man with a knowledge of gas be employed and this was to cost the company an extra £ 7 per month. Some coal was being won and was carted by George Mellett (who along with his father, Henry, was a shareholder) into Nelson. Income from coal sales did not meet development costs and towards the end of the year problems arose through uncertainties as to where the drive was in relation to the old workings. By December 1896 Bennett was unable to find any more coal and an attempt to dewater the old shaft was made. This was probably in anticipation of a survey being carried out on both the new and old workings and perhaps driving back from the old works. However, because of constrictions in the prospecting shaft the bottom 60ft remained flooded and the pressure of black damp elsewhere was a problem. By the following month the situation in the mine had worsened with Gibbs writing in depair that "Bennett had plainly lost himself and everytime I saw him he had some new theory as to the position of the old shaft".

The shareholders became discontented and at a special meeting held on 14 January 1897 Gibbs and the company secretary (Bamford) were authorised to arrange a survey in an attempt to locate the seam. However at the end of the meeting an offer by Wise and Gribble to find the seam on a no coal no pay basis was promptly accepted by the directors. Gibbs wrote on 25 January that in the meantime Bennett had agreed "to rest his foot at home". Four days later Gibbs showed an ex mine manager by the name of Marshall (probably George Marshall who was involved in the Johnstons United Copper Mining Co.) over the mine. After discussions at the face with the miners, Marshall assured Gibbs that a survey would not be required. On the 21st a 5ft seam was encountered and Gibbs wrote that "everyone was very curious to know what point in the old shaft we are level with as the men feel sure Bennett is not nearly as deep down as he stated". Gibbs then checked Bennett's calculations with him and errors were found. Although Bennett was subsequently asked to resign it appears that the decision had already been made. Gibbs (7/2/97) writes of this meeting "went up really to see if he (Bennett) had realised he would have to resign and found that he did". It was later found that Bennett had driven for 50ft through a thin seam parallel to and only 7ft from the main seam which at this depth (230ft) was 4ft thick. However considering the lack of any surveys it is difficult not to have some sympathy with Bennett who for a short time later in the year again worked in the mine.

Having now found coal worth mining and satisfactorily negotiated a contract with the miners a shortage of capital hindered the company. At the page 16annual general meeting on 26 January 1897 the balance sheet showed capital assets of £ 137 14s and liabilities of £ 162 8s 9d (the value of plant was excluded). However the services of Wise and Gribble were recognised by the presentation of £ 5 in cash and 20 fully paid up shares between them. During February Gibbs and Scaife had discussions about getting Thomas Cawthron (a merchant and relatively minor shareholder) to join the board of directors and thereby, presumably, hoping he would significantly increase his investment in the mine. Equally unsuccessful was an attempt to raise capital by allotting a further 250 shares but less than half of these were taken up.

In March Gibbs devised a new scheme where some half dozen shareholders would put up money for equipping the shaft (c. £ 40) and provide sufficient finance to allow the mine to be worked on a three month trial. Costs were calculated at 8s per ton to supply coal to the bottom of the shaft and 5s per ton for cartage, etc. Royalty payments to O'Brien brought expenses to 14s per ton. Any balance went to meeting other working expenses. Surface developments included a new coal shed and the repair of the screen, hopper and headwords. Coal was sold on contract by Donald Stewart who advertised the coal under the heading of supporting local industry. Prices were 13s 6d per half ton delivered to town. With the mine again in production the directors decided some publicity was required and articles appeared in the Colonist (28/3/97) and Nelson Evening Mail (27/3/97). The directors went to some trouble to stress that there was little likelihood of the shareholders making great profits and that they were largely promoting the mine as a civic duty in support of local industry. Also the coal appears not to have a very good name with Nelsonians. This was due to coal near the surface being weathered, of lower quality and being wrongly interpreted as a brown coal. However analyses of coal from the lower levels showed it was of high quality and equal to a bitumimous coal. The company also advised that because the coal burnt so well householders were recommended to take care in disposing of the ashes because they remained hot for a long time. In the meantime Worley was also doing his bit for he showed that the coal ash contained potash and was therefore suitable as a fertilizer. Experiments by Stewart using coal ash and farmyard manure showed that the former produced superior potatoes. The directors considered that the burning of slack coal could prove remunerative. On a more sobering note the Mail informed its readers that if the mine did not pay it would close within four months.

On the 30 March the miners began their new contract and 18 tons was sold during the first week. Gibbs calculated that 12.5 tons was sufficient to pay working expenses and above that every ton would return a profit of 8s. In July the contract with Stewart regarding the sale of coal was renewed indefinitely. However the shortage of capital was still a problem and in August the shareholders were asked to raise £ 500 or sell the mine. Unfortunately soon after that, the seam had pinched out and Gibbs (who with 203 shares in the company was its major shareholder) wrote on 15 August "I only hope now we can get out of the concern without losing much more money". At the end of August the directors allotted further shares and adopted a suggestion by Gibbs to crosscut to the west.

As summer approached the demand for coal dropped but this was not the company's only problem, for on 15 January 1898 fire destroyed the coal shed and screen. This was a very dry summer and fires raged in the Maitai and elsewhere throughout the country. At the company's second annual general meeting, held on 28 January, it was proposed by Mellett (the shareholders lists suggest that this would have been George) and Scaife (the latter was drunk according to Gibbs) that the mine be sold. After a heated discussion this was rejected by a large majority. Subsequently the directors called for tenders for the coal but only one, from Neale and Haddow Ltd, of 13s per ton was received. Gibbs concluded that the "dealers had evidently formed a ring" and the directors decided to sell the coal themselves. The directors also debated the merits of engine power over horsepower but in the end decided to buy another horse to operate the whim.