ALLEGED MINING SWINDLE.

Press, Volume LIII, Issue 9522, 15 September 1896, Page 5

ALLEGED MINING SWINDLE.

SOME PECULIAR DISCLOSURES. BOOMING A "DUFFER." Press Association—By Telegraph—Copyrurht. Melbourne, September I_. A miuing swindle, which has caused some sensation, has just come to light. The Buchan Silver Lead Proprietary Company was started with glowing accounts of untold wealth. The Compa-ny owns property at Buchan, in East Gippsland, where the outcroppings of a silver lead ore were discovered similar to the formations observed at Broken Hill. When the ground was opened up, Mr Little, au expart from the Mining Department, visited the place and described it as exhibiting great veius of silver lead ore. Colonel Cecil Morgan, who .was formerly manager of the British Broken Hill Company, became Managing Direator, and, as he was living at Buchan, undertook to develop the property. From time to time he gave glowing descriptions of the valuable discoveries made in the mine, and as late as July 31st reported that GOOO tons of ore were available. A month later Morgan disapp.arad, and it came to the knowledge of the Directors that he had left for England, having previously disuosed of the whole of his shares at

from 5s to 7s each. He handed in his resignation to a co-Director. When pressed for an explanation Slee, the underground manager, said the mine was an ahsolute duffer, and Morgan knew it. Slee found that the shoots of ore discovered in various parts of the property had, in all case.., been interrupted by a limestone formation, which not only spoiled the continuity, but rendered them, except in inconsiderable patches, altogether unpayable. He mentioned this to Morgan, and told him that he regarded the mine as a swindle, and would not stay in it. Morgan upon this produced a revolver and threatened that if Slee did not mako the reports as directed and keep his information secret he would shoot him. He was further induced to secrecy by having come under the influence of Morgan's Avife, who added her persuasions to Morgan's threats. When asked whether he ought not, in spite of these things, to have disclosed the state of affairs, Slee said he believed that some of the Directors were in the " know," and they were better pleased that he should hold : his tongue. The collapse of the mine y. til be a heavy loss to the shareholders.