THE DROP IN WAIHIS.

Dominion, Volume 3, Issue 807, 3 May 1910, Page 4

THE DROP IN WAIHIS.

The remarkable fall in prices of Waihi gold-mining shares during the past few days has puzzled and perturbed a great many people outside that section of tho public which traffics in mining shares. Shares in the Waihi mine—the Dominion's greatest mining venture—have for years been placed outside tho list of speculative stock. The returns from the mine have been large and steady, with an upward tendency, the ore roserves great, and the price of the shares high. With a steady output, highly-priced shares, and merely trifling fluctuations in value, there has been very little gambling in recent times in these shares. They have been regarded as a sound investment, returning a substantial dividend even at the high premium at which they have changed hands. It has come as something of a shock, therefore, to most people to note the sudden and unexplained drop in prioe. AVheri •thc i matter was I mentioned a few days ago, what was regarded as an authoritative statement was made to the effect that nothing had happened in the mine to warrant the drop. Now the public are told that the reef at the lowest level of the mine (No. 10), so far as it has been ; explored, has not shown values as high as at the level above. We cannot pretend, to say 'whether, even jf this is correct, it affords justification for the fall in the price of shares. We believe values have fluctuated' in a -somewhat similar manner in other parts of the mine without any serious drop taking place. The points, howover; that arc of interest, and that are a matter of general concern, are: Is this information correct? If so, how long has it been kept from the public, and who, if anyone, associated with the company, have profited by their knowledge at the expense of the shareholders generally? It is possible that those who control the company's affairs may have thought it desirable to keep back the result of the earlier assays at No. 9 level until further development work had been carried out; but while this, under, certain circumstances, may have been a reasonable and a wise step in the interests of shareholders generally, it assumes quite a different complexion if any of those possessing this inside information made use of it to unload their own shares at top of the market values, while leaving themain bodv of shareholders in ignorance of the position until the drop in prices forced disclosure. So far as we can gather, thero is no evidence that anything improper has been done. The sales whicn have taken place may have been due to other reasons than that suggested above—a desire to participate in the rubber boom, for instance, may have caused a larger number of sales than usual, ,and timid holders, seeing the slight fall in Waihis, may have accentuated the drop by hastening to quit their interests. We do not know that this is so, but for the very reason that there is this element of doubt, it seems_ to us only proper that the Waihi Company should issue some official intimation on the subject. The action" yesterday ol ths various Stock Exchanges in asking that this should be done will meet with general approval. Other aspects of tlie matter can be dealt with later, should circumstances call for further action.