Mr H. J. Saunders, giving instructions from your Board to discharge the
whole of the men employed by the Company, excepting those five under
engagement, which has been done, although I consider it a very unwise
action in stopping the work at the dams just as the wet season is likely
to set in, and you have no means of conserving the water which you so
sadly require.

Mr Saunders also states that Messrs Cale and Woodward had informed you
that there was a basin under the boiler shed or stage, containing 12 lbs
or more of amalgam.  Now, the idea of a person leaving such a valuable
thing as amalgam in such a place, open to everyone, is really something
most ridiculous in the extreme.  The so-called amalgam was a mass of iron
rust, with some silver mixed, which had been lying there six weeks, and
had been treated in the ordinary way four times by the battery manager
(Roberts), from the first crushing, previous to Mr G.T. Simpson leaving
this place.  This stuff I have again treated under my system, which
yielded 16 dwts. of gold, and I now forward to you the same by this mail.
It would have been sent you with the other, but it was not completed then.
 I utterly fail to understand the whole of the talk about amalgam, for at
one time it is reported there is 25 lbs weight, and now there is over 12
lbs remaining up here.  Would you kindly explain the same.  It really
appears to me that there are persons that cannot tell the difference
between dirty iron and amalgam.

When I took charge of your property I was fully determined to endeavour to
bring it out a success if possible, which can be done if you will allow
me, but with all my advice and suggestions laid before you from time to
time as to the work that should be carried out, I have never received an
official comment; but it appears to be perfectly ignored, therefore you
had better look at the latter part of my report a month since and act upon
the same.

I always keep copies of my reports and correspondence if they should be
required.

Your favour of the 12th inst. only came to hand on the 20th, therefore I
had no time to answer it.  The instructions from the Board to reduce the
number of men, have been carried out.  Regarding the so-called amalgam, I
have endeavoured to explain the same in my letter to the board by this
mail.  Your favour of the 18th inst. only just to hand, and the contents
duly noted.  The pannings off from the skimmings of first crushing and the
other will be forwarded you down by next week's York and Yilgarn Carrying
Coy.'s coach, so that there will be nothing remaining here, but the
blanketings, tailings, and silver, and if that is required I will
endeavour to get teams to convey the same down to you.  Whatever has been
sent, and what is remaining, I have the battery manager (Roberts) to
prove, which I should think was sufficient; if not I must see further into
it.

Your instructions with regard to allowing Mr J. T. Bates to have two
dishes of tailings and silver, will be carried out when he applies for them.