connects us with nowhere.  The Warden arranged to start in company with
the contractor, Mr A.B. Wright, on the 23rd inst., to pass the line.  The
line between Hall's Creek and Derby has worked only a day and a half this
week, owing to breakages and the delay entailed by the consequent repairs.
 First, the wire broke outside the office at Hall's Creek, but was quickly
repaired.  The following day it broke some distance down the line, and it
became necessary to send a man down to repair it.  Besides this, there has
been a man some distance down engaged for a considerable time in effecting
repairs, and his services are to be paid by the residents here.  Did you
ever before hear of the residents of a locality, instead of the
Government, being obliged to pay a man to keep a Government telegraph line
in repair?  There are many who considered this place is simply being
ruined owing to the frequent interruptions of telegraphic communication.
There is only one way out of the difficulty and that must be followed
sooner or later, namely, to erect a stronger wire than the present one,
which is wholly unsuitable.  The expenses incurred in repairs will soon
amount to at least half of what a stronger wire would cost.

The Warden has granted two months longer exemption to the Golden Crown
claim.  This is approved of by the miners here.  It appears that the
shareholders entered into an agreement with a syndicate some time ago, for
the erection of a small five-head battery on their claim, and after a
certain time, a ten-head battery.  Certain terms were agreed to, amongst
them being that if the reef crushed as well as it promised, half of the
last-named battery was to be transferred to the shareholders, in return
for half of the claim.  Failing this, the small battery was to be
forfeited, and the large one removed.  In the meantime, the shareholders
were to work the claim at their own expense.  The shareholders, who are
mostly working men, have carried out their part of the agreement, and are
desirous for the other parties to carry out theirs.  Had the telegraph
line been working they would have soon been advised by the latter.

It is expected that the erection of the battery on the Amalgamated claim
will be completed next week, and crushing start immediately afterwards.

The Ruby Queen claim at Ruby Creek is battened down.  The only claim
working out there now is the West and Left reefing claim, from which, it
is reported, good gold is being obtained.

Fine gold-bearing stone is being got at the Lady Margaret claim at the
Brockman.

The only claim working at Hall's Creek is the Jubilee, under the old
management.  Splendid stone has been got from this claim.  It is a pity
that the difficulty of carting and crushing at reasonable prices cannot be
surmounted.  Only the stone in which the gold appears to be plentiful is
crushed, the remainder being stacked on the claim.  Owing to this,
thousands of ounces of gold must be contained in those great heaps of
quartz which lie on this field.  It cost £4 per ton to crush, and this and
the high rate of wages — £4 per week — render it difficult to make "both
ends of a mine meet."
Derby, July 26.

He reports that there are about a hundred men there now, and that some of
them are doing very well, while nearly all are making wages.  He expects
that most of the diggers will shift to the Shaw Falls, when the news of
the discovery of the big nugget reaches Nyullagine.  The Warden arrived
from Nyullagine on Thursday, and also Mr. Haaben, manager of the late
Broken Reef claim, Pilbarra, who has been at Nyullagine on the look out
for a reef.  He is now thinking of shifting his machinery to Nyullagine to
work on the conglomerate.  Water is scarce, and wells are badly wanted on
the field.  The latest news from Pilbarra reached here last evening by a
man bringing in some gold.  He reports that about thirty men are there,
and that all had done well up to the time of his departure.  Passing
Mallina, he saw the Alfred Argles Company's men steadily at work.

There are about a dozen men at Nickol, [sic] all getting gold.

Very little news has been received from the Ashburton.  It is expected
that nearly all the men will shift to Shaw's Falls, on receipt of the news
of the discovery of the big nugget.

the reefing line, and nothing at all in alluvial digging.  The Ruby Queen
mine is being worked slowly by a few hands under a temporary manager, but
the battery is still hung up until further orders.  The scarcity of water
has had something to do with this.  Some provisions of a slight nature was
made for the conservation of water for battery purposes, but too late to
be at any service during last season.  Mr Row has opened up the claim in a
thorough business-like manner, and has now a very fair opportunity of
carrying on operations with great facility, ... Bradley's Tunnel Company
have purchased the St Lawrence battery of 10-head, and are erecting this
on their own ground. ...  It is rumoured on the field that Mr Walsh has
floated a Mount Dockerel property on the Victorian market, and that the
"advance agent" of the Company will shortly arrive to view the holding and
make arrangements to start working the claims. ... Steady work is being
done at the Lady Margaret claim at the Brockman.  On the whole the news is
very defective and disappointing from a mining point of view.

THE "LITTLE HERO" NUGGET.

A nnmber [sic] of persons visited the Union Bank, yesterday, in order to
inspect the nugget brought down by the Franklin from the Nor'-West.  The
"Little Hero" — which is the name bestowed upon it — has been weighed at
the Bank, and turned the scale at 333 ozs. 8 dwts.

day, bringing a cake of gold weighing 42 ozs. 10 dwts., the result of a
crushing of 16 tons from the stone taken from the bottom of the shaft and
not picked.  Fuel is very scarce at the mine.

The latest news from Pilbarra is, that about 40 men are getting about half
an ounce per day each.

Mr Jacobsen's gold is being exhibited at the Union Bank.

Fraser's South (pro), sellers 2s 6d, buyers 1s 9d; Hope's Hill (con),
sellers 1s; Waterhall (pro.), sellers 2s, (con.) sellers 6d; Yilgarn,
sellers 2s.  Tin — Bunbury (pro.) sellers 5s; Spring Gully (pro.) sellers
9d, (con.) sellers 6d.  Investment Stocks — Perth Gas, sellers 27s.

THE SPRING GULLY T.M. COMPANY.

The following report, dated Spring Gully, August 8th, has been handed to
us by Mr W. E. Clifton, legal manager of the above company: — Yours of the
20th July came duly to hand, in which you state tin bags and tools were
forwarded: none have arrived here to date.  Re Barrow wheels: I have
managed to get on with what I have got, and don't think will require any
more.  The assay returns you state, are certainly very low.  However, I
may inform you the tin in the lower face I recently knocked off, is of
very inferior quality and sheelite being very plentiful with it, which is
not possible to separate from it, by ordinary streaming.  The tin in the
face at present working is more free from it, and will give a better assay.

The bags obtaining the inferior will be duly marked.  I am not by any
means getting on as satisfactorily as I would wish.  I have been stopped
washing the last few days, through the box man and others leaving; they
having taken a tribute on their own account.  I, therefore, had to confine
myself to stripping.

A large quantity of wash is now uncovered and ready for sluicing.  I will
have the necessary quantity of hands on Monday.  Washing will then be
continued forthwith.  Since starting Mulligan's face, I had only one days
washing, which turned out six buckets of dirty tin.  This is undoubtedly
far better ground than the face I last wrought.  However, I may inform you
the best ground on the mine, so far as I know of it up to the present, has
undoubtedly been wrought out.  I do not say, but there may be better tin
on the mine than any yet found, for I notice very little prospecting has
been done.  It appears to me every manager that has been here, devoted his
attention entirely to rooting out a bit of tin in the gully where they got
the best prospects.  I must say I cannot see my way clear to give the
Company satisfactory results, and I consider it is only wasting public
money and employing the class of men that are here as miners.  In my
opinion the most profitable way for those concerned would be to let their
ground on tribute.

I am sorry I am under the necessity of giving you the usual month's notice
from the above date, and tendering you my resignation as manager for the
simple reason above stated, and it is not my desire by any means to stop
on a mine from which satisfactory results are not forthcoming.

I will dry the ore on hand and weigh it is as soon as possible.  The
ground I have already stripped should turn out two tons of tin.  However,
I will write you weekly the results.
(Signed) W. J. SHEPPARD,
Mine Manager.

THE RUBY G.M. COMPANY, KIMBERLEY

ACTION IN THE VICTORIAN LAW COURTS.

[ BY TELEGRAPH.]

(FROM OUR CORRESPONDENT.)

MELBOURNE, August 14.
Mr Justice Hodges, of Melbourne, and Mr John Stanley, of Kimberley,
Western Australia, shareholder in the Ruby Queen Mining Company, have
brought an action against three of the directors, Major Fitzgerald Moore,
George Bullen, and Russell, as well as the English and Scottish Bank, and
Mr W. G. Mennell, liquidator of the company.  The Bank holds a judgment
against the company, which is being wound up under an order obtained by
the bank.  Mr Stanley is the vendor of the mine, and and [sic] received
11,000 shares as payment for it.  He brings a series of charges against
the defendants.  The directors, it is alleged, obtained an overdraft from
the bank, and use the company's money in connection with other mines and
acted in collusion with the Bank by allowing judgment to be recovered and
liquidation to take place.  The plaintiffs have asked for an injunction to
restrain the liquidator from selling the company's plant.  An adjournment
was granted for two months to enable the answering of affidavits from
Kimberley.