CORRESPONDENCE

Grey River Argus, 15 February 1934, Page 8

CORRESPONDENCE

REVIVAL IN GOLD MINING. (To the Editor.) Sir,—The development of the gold mining industry is a very important item for the Dominion—especially at present. Whether it is a blessing or a curse will depend much on whether the public are in a position to distinguish between the genuine and the false. It is of the greatest- importance that investors should be protected to the extent of being in a position to judge of the genuineness of a scheme by the facts (if any) being kept distinctly separate from opinions aud mis-statements, etc. In au article on “Reefton 50 years Ago,” a remedy is suggested of how this could easily be done, and I will ask you to publish this in your paper so that it can be publicly discussed and perhaps a better one be found. The following extract from the article will show the suggested remedy:— “There is a stage between the ‘Wild Cat’ and genuine mining that has done more damage to the industry, and these are unprospected, ill-advised schemes, in which a glowing prospectus, is made up of a company, and the public are induced to take up shares in it. “Some of these are from honest ignorance, but in the majority of these prospectus there is a great deal of deliberate fraud, and if a lie is defined as the intent to deceive they are deliberate lies, and skilful lies. “The public have no means uf separating the true from the false. 1 am satisfied lhat this state of affairs could be greatly improved, if not entirely eliminated. “Before leaving the subject of Reefton and gold mining, I should like to suggest a means of preventing the evils 1 have seen so much of there, and other places, in connection with go hl mining. “My plan would require a short Act of Parliament, and is this:—“That in all prospectuses and reports, connected with mining schemes, matters of fact,, and matters of opinion shall be kept distinctly in separate columns. That any person making a report or statement in this fact column shall be personally responsible for the correctness of that report or statement, either by penalty or liability for damages if incorrect. “This column should contain all and full particulars of the speculation. Tn the opinion column, of course, they are free to express their opinion whatever it may be. “If this were done investors could judge Irom the fact column the true state of Hie proposition, and the value or otherwise of the favour-able opinion expressed in the opinion column. “If the above were made the law it would greatly help genuine mining speculations, kill the Wild Cats and still better prevent the many plausible schemes Hie public are induced to pul their money into, whelher they are either stupid or dishonesl.”—l ani. etc., 1.1 P. WASHBOURN. Port Nelson.