"HIDDEN TREASURE."

Auckland Star, Volume XLI, Issue 270, 14 November 1910, Page 6

"HIDDEN TREASURE."

ENCOURAGEMENT TO PROSPECTOItS. Stock exchange discussion. After the firet call of the Stock Exchange to-day, Mr. Moore-Jones (one of the members) raised the question as to whether it was proposed to take any action in respect to an article that appeared in lost Saturday's " Sta-r," headed "■ Hidden Treasure," in which a charge was levelled against th e Exchange that by its regulations it discouraged prospecting. The speaker quoted from the article in question, laying special empha, sis upon the following paragraph: "Then ■when the syndicate that takes up his ground floats a company the prospector usually finds that the Stock Exchano-e will not list the shares unless the money is to go, not into his pockets, but into the development of the property; and as a rule the vendors are precluded from getting a little cash return out of their shares by a provision that ties-them up for a period of six months or more." Mr Moore-Jones said he was inclined to'think that the attitude adopted by the Exchange in connection with prospectors and the flotation of new companies was absolutely wrong. A broker's business wa-s to do what lie was told by his clients in connection with tie purchase or sale of shares. He considered they should offer greater encouragement to prospectors, and then they might have more finds, which ■would in'the end mean more business for the Exchange. He was inclined to think with the writer of the article that the Exchange by its stringent regulations had something to do with the discouraging of prospecting and he would like to move the appointment of a sub-committee to go into the matter and report to the Exchange as to whether or not such was the case. The Chairman (Mr. G. A. Buttle) said had Mr. Moore-Jones had more experience he would not have been in such a hurry to bring the matter forward, especially if he had known of the cases where prospectors brought properties on the market with the sole object ,, of floating a company and getting quit of the shares as speedily as possible. He could assure Mr. Moore-Jones that he had frequently been commended by local mercantile men for the attitude the Exchange had. adopted in order to discourage such a course of action on the part of some prospectors, and whilst he had control of the Exchange he would continue to carry out the regulations that had been in force during the last few years, to which ex- , ception was now being taken. (Applause.) Mr. Moore-Jones said for all that, he would like a sub-committee set up to' see if it was not possible the Exchange had made a .mista.ke in this matter. He looked upon the article as an expression of public opinion upon this question, and he did not think the course the Exchange was following at the present time was the best in the interest of all parties. The chairman recommended Mr. MooreJones to think the matter over, and if, after due consideration, he still thought that a sub-committee should be set up, then he could bring the question forward again, and submit the names of a subcommittee. At the close of the noon call Mr. Moore-Jones again referred to the matter. He said that he reeognieed the 6eriousness at the position, and for that reason considered that if there was the slightest justification for the sub-leader in the "Star," no time should foe lost. For that reason, he thought that a subcommittee should be set up as soon as .possible, and he proposed to bring , the matter forward again this -week. TJhe chairmaji said if notice was given, the matter could be discussed on Thursday. Mr. Colbeck said that -whilst he thoroughly agreed wrfch /the remarks that had fallen, from the chairman at the discussion after the morning call, still, as this had appeared in a sub-leader in a paper like the Auckland "Star," one would naturally think that to a certain extent it represented the feeling of the public generally upon the question. In Older to save time, it might ■be as- well to refer the question right away to the Committee of the Exchange. He thought that the whole Exchange would support the chairman in the' remarks he had made, but when one of the leading papers attacked the system adopted by the Exchange, they should .promptly take notice of it. The chairman said when v the matter was mentioned after the morning call, he was under the impression that Mr MooreJones was referring to a letter that had appeared in the "Star." He,now found that it was a sub-leader, and it surprised Oiira that the committee was not approached to ascertain the reason for the decisions arrived at before the sub-leader was published. The position was that the Exchange was ready to give every encouragement to the genuine prospector, but had no time for the man who pxrt. four pegs in the' ground and then wanted to sell his shares to the public. Mr. Moore-Jones said it was held outside generally that the policy adopted by the Exchange in respect to new companies tended to discourage prospecting. He had been informed that a remark had ■been made by the chairman of the Exchange that as there was only about £50,000 available for speculation in mining in Auckland, they did not want any more companies on the list. Chairman , (laughing): "When am 1 supposed to have made such a statement?" Mr. Moore-Jones said he had heard it ascribed to the chairman, and thought it right to mention it. He quite agreed that they did net want merely four-peg propositions, but the trouble was that no man could sajt what was merely a four-peg proposition until the ground Jiad been tested, and if a prospector could justify his claim to have found something then he was entitled to some reward. Tbe eli.iirnuri said the Exchange had this mutter threshed out tlnie and again. A i-aso Kime before his mind at that moment, in which the Exhange refused to quote a company because the promoter ■was to get £1000 besides 6hare consideration. The result was -tjhat the £1000 went into the development of the property instead of into the promoter's pocket. Yet the Exchange was condemned for the action it had taken, even by some of the shareholders it was endeaveurtng to protect. Every man who was trying to do his duty must be prepared to be misunderstood. Aβ to the statement attributed to him by Mr, Moore-Jones, ihe h:id no recollection of having made it, Mr. Moore-Tones: "It was not attri- ),;.■,:■'< liy mc, sir; your denial is quite :..!;.. cni answer." !t -v:i* Rnnlly decided that the quesbion f': ii ' 1 ''"• further discussed -to-morrow, v ! I'M Mr. MooreiJones moves for the u])pointiuent of a sub-committee.