MINING SHARES.

Auckland Star, Volume LXVI, Issue 129, 3 June 1935, Page 5

MINING SHARES.

COMPANY PROMOTIONS SOME "WILD-CAT" SCHEMES. "BIRTH STATISTICS OF FOOLS" Some classes of gold mining shares, and statistics relating to the "birthrate of fools" were mentioned by Mr. J. Morrison, assistant-Registrar of Companies at Ghristchurch, in an address to members of the Institute of Public Administration in .Christchurch. Dealing with legislative protection for shareholders and the public, Mr. Morrison said that no -matter what was included in the Act one could not protect fools against themselves. There were always persons who wanted something for nothing and were anxious to get rich quickly. One could not legislate for a minority and it was questionable '.vhether those persons could demand protection. There was a saying that a new crop of fools was born every day. Taking into account the number of "wild eat" schemes, said Mr. Morrison, he was prepared to subscribe to that statement. There were a great number of goklmining companies which would not reach a profit-making basis, and there was money in them only for the promoters. Persons who took up shares were giing in only for a gamble and they should treat their venture as similar to one on the totalisator. Reefs and Sandhills. "Men have even approached me to take up shares in these ventures," said Mr. Morrison. "They have produced photographs of prospectors winning gold by primitive means and have argued that a company with up-to-date machinery could do wonderfully well on the same field. I have replied that the years are strewn with such companies in liquidation, and that as I don't know; a golrV

bearing reef from a sandhill, the photograph may have been taken in some out-of-the-way part of Sumner. "It is surprising how this sort of talk goes down with the public. A bottle of gold is shown and is stated to have come from such and such a place —and then shares can be sold. Many persons do not hold the shares until the company is on a profitable basis, but sell them to the next 'mug.' There are a few companies in which there is not much for anyone except the promoters. A salesman who professes to be your friend and wants to load you with shares has many other friends, and it does not do to tell too many people about a good thing or they may all buy; and all cannot be sellers at the same time. It is the same with the totalisator, for too many people bacing the one horse destroy the dividend. Many promoters sell at the proper time and do very well. It is still a question whether the people who are persuaded to buy can be protected against themselves.