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Dominion, Volume 4, Issue 1038, 30 January 1911, Page 8

UNKNOWN.

STATEMENT BY STOCK EXCHANGE • CHAIRMAN. "NO CAUSE FOR PANIC." (By Telegraph.—Special Correspondent.) Auckland, January 20. Interviewed regarding the report of Mr. Williams upon the Waihi mine, the chairman of tlio Auckland Stock Exchange, Mr. Prancis Hull, said:— ".My idea with regard to this matter is that the directors are to be congratulated upon having given publicity to such a straightforward account of the position of the Waihi mine. No matter how bad the news may be, the furnishing of the fullest information to shareholders will always have my support. I have always held shareholders are entitled to the fullest information upon' these matters. Of course,. there were signs yesterday by the jiumber of shares,, thrown 'upon the market.at low prices that this information had leaked out, but it is almost impossible in large concerns to prevent some idea of what is happening getting abroad. • "I notice by Mr". Williams's report that for eight months the mine has been under a cloud; also that there was i a serious set-back in the history of the mine during the progress of the crosscut from No.- 4 to No. G shaft at No. 9 level, where soft decomposed country rock was mot with, which "Mr. Williams refers to as undoubtedly a bad indication th-» world over. The question is: At what date nas that fact known to the directors? Was it about the time the Auckland Stock Exchange was taking a prominent part in making all possible inquiries'.as to what had caused the fall in ■the price -of these shares? It, is somewhat singular that the Exchange was not supported in any way at that time by the shareholders,' who preferred to be guided bv those ill authority. I refer to tk(>, timo, when a statement appeared in the press, something to the effect that it was a case of "save me from niv friends" as far as shareholders being benefited by the exchange taking action in the matter. It is some timo ago, but as far as I ■call remember statements .were then made to the effect that there was nothing in the mine at that time to warrant the fall in shares. Now wo hove liad tho full position placed before us, and I consider that there is no cause for panic, as even at tho reduced dividend indicated in the cablc from London there is still a fair return for money invested in Waihi shares at the present market quotation, and there is always the prospect that this may prove to be only a barren zone, and that values may como in again lower down. In this connection I am pleased to note that Mr .Williams specially states that, 'Taking into ■ consideration the amount of development at the 1000 ft. level, there is far less, calcite.' That, I think, is at least a hopeful sign for the lower love's.

"There:is. anpther point worthy of notice, and which I think may also bo considered a reassurinc sign. I am very pleased to see that the Hon. Seymour Thorne George, • who had his shares transferred to the London register about a year ago, has had exactly the same number transferred back again, and that he nover sold them can be easily proved

by any one examining the register, as exactly the same number of shares came back, and also tho same numbers on the register. Mr. George is a director of the company and had he sold his shares some months ago in London would 'no doubt have made some thousands of pounds by the transaction, and could have bought them bark again at the present low figures. That he held to the same shares right through is to mv mind not only him as a director, but also to the other shareholders. "There is one significant point I feel it onlv right to touch upon, namely, the fact that when the Exchange closed here for the vacation, TVaihi shares stoodvat '«C 5 165., and tho general feeling was that they would move upwards in the New Year. Instead of that, howovor, ,wo. wcro astonished -to learn during, the. holidays that these shares had suddenly dropp?d a« low a* «£4 12s. Gd. in Tondon and that without onv information beiiu? given locally as to the reason. It would onppnr from .thai: as if some, people in London had better knowledge of tho state'-of ;a flairs in the WniM mine * month ago,'than we had at this end."' PRESS COMMENT,

The. "Star" f lias the following editorial comment: . "While admitting: that ■ tho directors have .token tho right - course in giving

— we' ncnovrr" that .most people would be glad to .know when this information was first laid before those in control- of the mine. Mr. Williams's report is not. dated, but it testifies 'that during tho last eight months tho mine has been under a cloud.' Surely we musi not infer that tho directors knew eight months or more ago all about tho 'soft decomposed country rock' and tho 'long stretch of poor country' along one side nf tho Martha lode. Eight or nine months ago the shores were quoted up to ,£0 or more, and every effort was made by those interested in the mine to strengthen public confidence in it, and ta reassure any. wavcrers who seemed instinctively to scent danger in tho air. ,Wo make no insinuations, for, we have no evidence to go upon, but the directors know at least as well as anybody else that this is a most serious business for Auckland and for New Zealand,, and a fall of something like two and three-quarters million sterling in the value of this muchboomed property within twelve months is a matter of more than private interest and importance. T'nereforo wo hope that some satisfactory answer will bo forthcoming tr> the questions already asked by the chairman of our . Stock Exchange. When was this report drawn up and when was it submitted to the Waihi directors? PRICE. OF SHARES. (By Tclocraph.—Press Associations ' Dunedin, January 29. Waihis showed a distinct fall •on 'Change this morning. At the first call they sold from 87s. Cd. down to Sss. At the second call the best offer was Sis., holders asking for 84s. The report regarding the Waihi mice was published in London on Saturday, and the shares had a sharp fall. Private cable messages received by Wellington brokers yesterday gave the London quotations as buyers £i Is. 3d., sellers 2s. 6;1.