MINING NEWS.

Dominion, Volume 2, Issue 342, 31 October 1908, Page 7

MINING NEWS.

-AUCKLAND'

FURTHER PBES|^mcisMK ?r:W -

.j," fay telegraph—imiess, association'!. .;]• Cliristchurch, October 30: ,L Regarding the Auckland, s¥are'mai>kety~the Cliristcliurch " Press," . this' ift6rning»lsay,s<— We accept, of course, unreservedly' the." statement of the chairman of' tSsf'!iuckiaM l .'s{Bci' Exchange that the exchange, l "aS'-an'oxbhange','"' is not responsible for the circulation-'-of the rumours alternately depressing and inflating the prices of mining stock, to<' which:-wb'- referred' in our leading columns - «n are: also quite ready to believe'that-the reputable brokers, do not lond^,,themselves .-to suchpractices. Nevertheless „tlia|,. thqse are constantly ■ resorted to in the'northern city "is a matter of common kuowle'dgeY self admits this, and describes'-with perfect, accuracy the process adapted.- -He merely denies that members of thd^Stfick^Exchange to blame. "The -trouble", is;"" Ji<j ,:,l stiid.'-to , ~ii' " Herald " interviewer, " tliat."as soon •' as-tho market weakens reports are, Sprea- by irresponsible persons outside the- exchaiige-'altogether, and these are reiterated untilweak, holders are alarmed. The latter then press, their shares on. to a market already overfull of. shares,--with-the result that a sharp. ally, anyone with a little'.-spanrcash will,;takS. 'advantage of these sudden ''dfops'Tind 'secure the cheap shares.. An appeal to tils authorities or managers of any. of the companies - thus affected almost invariably leads ,to the. discov-' ery.that these reports are,.perfectly unfounded,'" but by that .time, of ■ course! the damage -is done. What usually happens.-tlien,. of.rcour.se,is that tho shares rise once , more, ajnd .the, persons responsible for deprMSingrthem'-seli'but,'-and perhaps repeat the process o'n'"so'me." otherstock." Our object in 'writing"on tho subject' was not to attack the Auckland : Stock'. Ex-, change, or any of its-members, but merely to warn southern investors not. to'- allow-them-selves. to be despoiled by-the. Aucldand tians, whether they are members 'of, the Auckland Stock Exchange or _-jiot, 7 .who ; start i.the' rumours. The effect-is the-same-as regards the unfortunate southern"! sliareKolders -'who place too much confidence in'what .conies from , (lie northern city. It is also true tliiit' tlie' Auckland sliarebrolcers benefit by the fictitious 'excitement which takes place, since the-more-! sales they effect the moreVcommission," they earn. Whether they benefit from" these' proceedings in tho long, run is perhaps open 'toques-I tion. The. tactics referred"jto/. have-'certainly;:, given Auckland a bad name; There'is an ill-! creasing disinclination in : . other parts of- the-. Dominion to invest in Auckland stock,'''especially tho more speculative kinds. 'There is also the strongest aversion among' soutlierii investors to an Auckland board of directors - for atiy colir cern in which they are interested.' Part Of this disinclination is, no doubt, due,' as'mentioned in a provious - article, to the. painful "and uri : : satisfactory memories handed do.wnfroriv Auckland's financial "past," but/so long "as"-'the market-rigging devices to which'we referralare continued, -so loiie will the" soutKe'rii investors' distrust of Auckland financial "methods:"' continue to be justified. Mr.-Buttle and the committee of the Auckland Stock Exchange would do good publio service, to'j:heir own 1 citf especially, if they could devise somo : method for checking the practices We ! halve referred.