MINING VENTURES.

Auckland Star, Volume LXIII, Issue 217, 13 September 1932, Page 5

MINING VENTURES.

CHECKING PROSPECTUS DATA APPOINTMENT OF ENGINEER SUGGESTED. SAFEGUARDING THE PUBLIC. (By Telegraph.— Press Association.) DUNEDIN, Monday. Advantage was taken of the visit of the Under-Secretary of Mines. Mr. A. H. Kimball, to Duncdin to place before him the views of those interested in the mining industry regarding the danger of the public los'ing confidence as a result of unwise company flotation. An informal conference this morning was attended by Mr. Kimball, representatives of the Chamber of Commerce, and several men connected with the mining industry. Mr. J. R. Fairbairn. who presided, stated that it wae felt by the Chamber of Commerce that if steps were, not taken to safeguard mining interests as a whole there would be a repetition ot the experience of 30 years ago, when the public lost all confidence in mining investments. A sub-committeo of the chamber which had been set up to report on the matter had recommended that a board should be set up consisting of business men, mining engineers and members of the Stock Exchange, which would give its recognition to any reputable mining proposition. Mr. Kimball said the question was bristling with difficulties and he-doubted very much if the Government would take on itself the responsibility of checking the data in the many prospectuses that were now being issued throughout New Zealand. He thought that the Chamber of Commerce and Stock Exchange could largely safeguard the welfare of their clients if they would appoint a reliable, qualified mining engineer, paying him a reasonable fee for the purpose of examining all data in connection with prospectuses that were now being issued. The engineer would have made available to him all information in the possession of the M'm«s Department, and the Stock Exchange could refrain from putting a mining company on its list until the company started work. Mining rights were taken up in which no testing whatever had been done, and some prospectuses were being issued, one condition being that the promoters should receive 30, 40 or 50 per cent of the shares as paid up. Such a state of affairs was ridiculous, and would do the industry a great deal of harm.

Mr. Kimball added that fully 90 per cent of the companies floated were not being properly tested and the Department felt very concerned about' it.