"APPALLED."

Auckland Star, Volume LXVII, Issue 206, 1 September 1936, Page 5

"APPALLED."

•MINISTER OF MINES. GOLD-SEEKING COMPANIES. WHY INVESTORS ARE TIMID. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, tliis day. "Is it any wonder that New Zealand ; investors have become a little timid in I regard to gold mining?" asked the f Minister (if Mines, Mr. P. C. Webb, s in the Mines Statement tabled in the - House of Representatives to-day. Since - he had held his present portfolio, he - said, lie had been appalled by the infor- ? mation that had reached him concerning the tragic history of many gold mining f companies and lie felt that lie would j be gravely lacking in a sense of public - duty if he did not make some reference j to the question. j A perusal of earlier Mines Statements had shown Mr. Webb that many x of his predecessors in olHcc had gained ; impressions similar to his own, and he quoted remarks of the Hons. R. J. Seddon, A. J. Cadinan, J. McGowan and , C. E. Macmillan. "Now let us review a few facts indir eating the state of affairs to-day," cont tinned the Minister. "In the report of - my Department now being presented to I 1 Parliament there is listed statistical information concerning 203 gold mining companies. This information is derived from statements of affairs submitted by the officials of the companies and 1 verified by statutory declaration. Of ! these. 203 companies, 95, up to December 3 31 last, have never produced one ounce ; of gold, and up to the same date only 34 have ever paid a dividend —that is, . one company in every six. It is interesting to point out also that in 1930 58 . companies were listed, of which only , nine had ever paid a dividend, again a ratio of one in six. In view of this record, is it any wonder that New Zealand investors fiave become a little timid in regard to gold mining? Indeed, it should bo mentioned that the above figures do not tell the whole story, as 1 there are about thirty other companies in liquidation from which statements of affairs cannot be obtained. Another indication of the position is gained from the official l ecord of the Stock Exchanges of New Zealand. In that publication at present 02 mining companies are listed, but the shares of only 19 are quoted at a premium. ' Profitable Field.' "As a result of drawing attention to these figures I will probably be accused of driving capital away from gold mining. On the contrary, I desire to ' express my sincere conviction that gold mining, and particularly gold dredging, i is likely to prove a very profitable field - for investors in the next few years, - provided the propositions supported arc > among those which have been genuinely , and adequately prospected. ■ "One of the circumstances which it j is generally agreed has seriously I retarded gold mining in New Zealand t lias been the holding of mining privileges for speculative purposes without making | any real attempt to comply with the requirements of the Mining Act," lie ! added. "I have no sympathy whatever with such a practice and I want to make it abundantly clear that I will consent to the protection of mining privileges only under the most exceptional circumstances. The indefinite locking-up of our national resources will not be tolerated."