MINING VENTURES

Hokitika Guardian, 1 June 1935, Page 5

MINING VENTURES

“WILD-OAT” COY. PROMOTION

(Per Press Association, Copyright)

CHRISTCHURCH, May 31

The extent of “wild-cat” company promoting in Christchurch was commented on by Mr J. Morrison, Assistant Commissioner'of Stamp Duties, in an address given last evening to the institute of Public Administration. Mr Morrison said that there were many gold-mining propositions being put before the public to-day, a great number of which would never show any profit except to the promoters.

“It used to be a saving in Christ - cbVircb,” nc said, “that there is a new crop of fools born in Hereford street every five minutes, and from my experience of the number of wildcat schemes which have been floated on Hereford street I am inclined to subscribe to t,hat belief. A man who puts money into one of these propostions should recognise it as a gamble, and if he loses his money ho should take it in tnc same way as if he had made an investment on the totalisator.”

Mr Morrison gave instances from his own experience of the methods of share salesmen for gold-mining companies, who, he said, had shown him photographs of alleged goldbearing land which, for all he knew, might'* have been ta,ken at Sumner. Bottles of gold were shown to people, well “salted,”, and it was stated that the contents had come from Cromwell. Of course some people bought the shares with the intention of selling at a profit to any person whom tjiey could persuade to buy, and if they knew ti.o market well they, could probably make money out of such transactions. But it was to be remembered that everyone could not be a seller. It usually happened that a few persons collaborated to sell at the right time.