Trading Ban on Mining Concerns

Manawatu Times, Volume 64, Issue 171, 22 July 1939, Page 10

Trading Ban on Mining Concerns

LONDON EXCHANGE LONDON, July 14. Trading in shares of eight Western Australian mining companies, worth nearly £9,000,000 in 1935, is now prohibited. Yesterday a ban on dealings in the shares was imposed by the London Stock Exchange. Mr. Claude de Bernales, tho Englishman who has been spectacularly associ- ■ ated with Western Australian mining ! sinco his youth, is chairman or managing director of each of tho companies. Tho current market value of the shares is £380,912. “Without Precedent.” Tho Financial Times and the Financial Nows call for a thorough inquiry into the history and position of the companies. Tho Financial News says that tho inquiry must be immediate and ruthless. It says that the ban docs not affect only the 44 hapless shareholders. ’ ’ The good- namo of London finance is involved, and the decision must disturb the Western Australian Government. Tho Financial Times describes the ban as being without precedent in Stock Exchange history. The eight companies are:— Commonwealth Mining and Finance, donated by the Now Zealand Farmers’ Co-operative Distributing Company.— Received. Tho secretary of tho Wellington Council wrote asking clubs and district, committees to hold a function and set aside a percentage of the profits for tho Wellington Council. The chairman explained that the council had no particular source of revenue, and he thought that it was a necessary and worthy object, which should be supported. Mr. Hudson suggested that an art union be considered, and he moved that this be a recommendation to tho council. « Mr. Rowland moved an amendment that the above step in regard to art unions be only taken failing other methods being successful. Tho amendment, on being put, was carried on the voices.

Auglo-Australian Gold Development, Beryl Gold Corporation, Great Bouldet Mining and Finance, Meekatharra Gold Mining, Murchison Gold Development, North Ivalgurli United Gold Development, and Southern Cross Gold Development. Chairman Interviewed. Mr. de Bernales consented to a request for an interview by a special representative of the Sydney Daily Telegraph. 4 ‘l am not concerned so much for myself as for tho shareholders in my companies,” he asid. 4 ‘Wo may bo jjoor directors, we may have omitted to do certain things, but wo have offered to allow any investigation into our companies that the Stock Excuange committee might require. If anything were proved against us,' wfl would tako it like Englisnmen. 4 4 But no reasons have been given to us why investors in our goldmines should be deprived of a market for their shares. All of our mines have been carefully considered, and are thought to have reasonable possibilities. Rejection of Appeal. “Trouble aroso when Commonwealth Mining and Finance Company, the holding company of tho group, applied for permission to deal in its snares. Tho shares were recently induced from a nominal value of 5s to 2s 6d. The Stock Exchange sub-committeo rejected the request, but allowed appeal to the full committee. “Tho directors of tho company submitted a long memorandum to tho committee, setting out tho history of the various subsidiaries. They also answered all the points that had boon raised by the sub-committee. “Not only was tho appeal rejected without any reason being given, but it was announced that dealings would not be allowed in the shares of tho seven subsidiaries.” Commonwealth Mining and Finance shares wer sold in 1935 at 17s 9d. The last quotation was 9d. Shares in the other companies were last dealt in at Od or less. Mr. de Bernales, now 63, started his sensational career with £7O, which he borrowed from a friend. He claims this is the only money he has ever borrowed.