AUCKLAND STOCK EXCHANGE.

Auckland Star, Volume XXXVIII, Issue 254, 24 October 1907, Page 5

AUCKLAND STOCK EXCHANGE.

DOES IT CONDEMN MINING PROPERTIES?: '•'•'

THE CHAIRMAN INTERVIEWED.

The member for Ohinemuri, Mr. Hugh Poland, has during the present session referred more than once-to the Auckland Stock Exchange. In. his latest question to the Minister for Mines, Mr. Poland is credited with referring to the methods of the Exchange regarding the Tairua Triumph Gold Mining Company. He also asks the Minister, "Does he think the Exchange is the proper authority to condemn- mining properties? If not, will he take steps,to have all mining properties offered to the public for investment reported upon by an officer of the Department?" A representative of the Auckland "Star" waited upon the chairman of the Auckland Stock Exchange to-day, and asked if he had noticed the Jgmarks pt the member for Ohinemuri, and if so, whether he wished to make any statement in reply?

Mr. G. A. Euttle said: "The difficulty I am in is that the message gives so little upon which to go, but it seems clear that Mr. Poland referred to the method of the Exchange regarding Tairua Triumph Company. It is very vague, you see, because it does not tell us what the message is to which Mr. Poland refers. He seems, however, to assume that in respect to this particular company, the Exchange is in someway to blame for what has recently occurred on the market. What is really known is that the 6d. paid shares in this company showed on the market a somewhat substantial advance as compared with the prices ruling at the time ior the 3d. paid up shares. In fact, they were 1/6 higher than the others. Mr. Poland seems to have assumed that this is the outcome of brokers dealing with those shares. Now, the position is, that brokers have to carry out the instructions of their clients, and Mr. Poland would therefore have just as much right to assume that the rise was the outcome of brokers' operations on behalf of their clients, that in fact a client gave instructions to a broker to dispose of a number of shares which he did not possess in anticipation of those shares coming down again, when they might be bought back at lower figures. Of course, the Exchangs cannot control anything of that kind. There will be clients as there may be brokers, who do that kind of business, which, I may add, is a practice on all Exchanges, and is not limited to mining, as witness selling bears in the wheat market."

"Then there is the other point, Mt. Buttle, as to whether the Exchange is the proper authority to condemn mining properties? Do you claim that right for the Exchange?"

"Certainly hot. During the time I have been chairman of the Exchange, 1 have never known it to condemn a mining property. What the Exchange does take exception to is the terms sometimes asked by promoters and vendors of mining properties. We sometimes think that the amount asked from the subscribing public is too much, and our efforts have been directed to secure the interest of those who find the money. Our special aim is to see that as much as possible of the capital subscribed is expended in developing the property, and does not go into the pockets of promoters and vendors. To mc it seems rather singular that Mr. Poland, who represents a mining constituency, should champion the cause of men whose aim seems to have been to exploit the public rather than the property."