DROP IN WAIHIS.

Dominion, Volume 3, Issue 806, 2 May 1910, Page 8

DROP IN WAIHIS.

BELATED NEWS: HAS SOMEONE BEEN SELLINC? STOCK EXCHANGE COMMENTS. (By Telesraph.—Press Association.) Auckland, April 30. The steady decline in tlio price of shares in tho'Waihi Gold Mining Company has caused considerable uneasiness in the minds of shareholders. When it is remembered that in about three months these shares have fallen from £10 2s. to £8 35., it will be manifest that there was somo reason for the uneasiness displayed by holders of what were always looked upon more as an investment than a speculation in mining shares.

At the noon call of the Exchange to-day, Mr. P. Hull remarked that the Stock Exchange was supposed to exist to "somo extent, for the purpose of protecting ; the interest of shareholders. The-members had already taken exception to news from mines reaching the market . after the shares had fallen in price, and in some cases companies lw/l been struck off the list. He believed that there should be no difference made 'in that respect between a; big company and a small one. (Applause.) They had read that morning a reason given why _ the ■ shares . in the Waihi Gold Mining Company had fallen. Even now he wa-s not aware whether it was from an official source; still, that was the first news they had received during the ,timo that the shares had fallen from £10 to £S 3s. Now, to his mind,'-it seemed that some of the people ' who sold those. shares knew something about the news that had just been made public property, and probably those who sold could better afford to lose than the poor widows and others who were still holding shares because the news was not made public earlier. He considered that it was the duty of the Exchange to draw attention to this matter. (Hear, hear!) He..considered that this was a most serious matter, if the facts published were true, for he must admit thai he was as much in the dark about the matter as the bulk of the general public. People went to those who should know if anything was wrong in the mine,' and they were told that there was no reason for the decline in tha price of shares; and still the fall continued, until to-day £8 3s. had been touched, and that morning they were given some news but did not yet know whether it was official or ' not. Of course, it was hard to say whether any authority connected with- the Waihi Company had sold .their shares. He could, not say whether they had or not, and would not like it to be thought he insinuated that such a thing had been done. Still, he did wish to make it clear that if any- such person in authority had taken advantage of news that was not made public to dispose of his shares, and the Exchange could prove that such a thing had been done, they would not be doing their duty to the public unless they snowed them up. (Hear, heart). The chairman' (Mr. G. A. Buttle) remarked: "Without Bome motion there is no l busmess before us and we must proceed with the call."

Mr. F. TVhittaker said that had it been a tYv'opon ny-hal fpo rmy company's stock this had occurred in, thero would have been a howl from all, over the room. He had been informed by his clients that they had been up to the office within the last fortnight, and were given to understand that everything was all right in the mine. It had also been currently reported that the drop was the.result of market rigging by the brokers. Hie Exchange must notice this matter, as.it affected people throughout the Dominion right up from the Bluff.

The chairman said, he did not like tho drop in Waihi shares any more than the previous speakers, bnt before taking any action they required to go very carefully. He would like to know 01, any shareholder, that had been to tho' office and- received misleading information. Could anyone tell him of a shareholder who, in answer to rccent inquiries, had been told that nothing was wrong ? The gradual drop in shares had been going on for a long thne. Tho crosscuts iihrough'the reef, w&ich it was now reported had proved the values were not so good as in No. 9 level, could not have been made in a day. "While the work was proceeding assays must have been taken at intervals, and now, as it were, three months after that date, came the news that the croscnts showed poor values in tho reef. If it were true, this information must have been known to somebody at least two months ago, but of course he could not state that those who knew had taken advantage of that- knowledge to part with their shares. ' It was all very well to give prompt news when it was good news, but they wanted it equally promptly if the news was bad.

Mr. Hull' said he wished it to bo clearly understood that he made no charge against anyone, but he thought the thing should be inquired into, and they should find out who had been selling shares..

The discussion closed without anything definite being decided, the chairman remarking that it was hardly wise to bring such an important matter forward without notice and on a short day.