STOCK EXCHANGE ON A PRINCIPLE.

New Zealand Herald, Volume XLIV, Issue 13398, 29 January 1907, Page 6

STOCK EXCHANGE ON A PRINCIPLE.

CORRESPONDENCE WITH TAU-

PIRI COAL COMPANY.

DELAY IN POSTING INFORMATION.

Correspondence has passed between the committee of the Auckland Stock Exchange and the board of the Taupiri Coal Mines, Limited, in reference to the neglect of the latter to supply certain information concerning the mine to the secretary of the Stock Exchange immediately it was received from the mine manager. The information deals with the creep" in Ralph's mine, about which the company made an official announcement in the Herald on the 16th inst. The correspondence in question was opened by the. committee of the Stock Exchange on January 15, when a letter was addressed to the secretary (Mr. S. Scherff) of the Taupiri Company, asking for the date on which the office received the first communication relative to the "creep." In reply, the secretary of the Taupiri Company wrote: " I am directed to inform you that upon receiving information from the mine manager that evidences of a 'creep' had been discovered in the mine, a meeting of directors was convened, and immediately after the meeting an official notification was forwarded to the press." The secretary of the Stock Exchange committee wrote again on the 17th, upon receipt of the foregoing reply, asking for the date on which the mine manager was first aware that all was not right underground, and on what date and at what time, this information was received at the company's office. This letter was placed before a meeting of the board of directors on the 23rd inst,, on which date the secretary wrote to the Stock Exchange committee to the effect "that the directors have nothing further to add to their letter of the 16th inst."

The committee of the Stock Exchange are lighting for a principle, and claim that the best interests of the shareholders and the investing public would have been eonserved to a greater extent had the information, which the committee is of opinion was in the hands of the board of the Taupiri Company very early on the morning of the 14th inst, and possibly on the 12th inst., been immediately transmitted to tho secretary of the Stock Exchange. The committee holds that the. delay in giving such information as the Taupiri Board was in possession of is calculated to do great injury. Most gold mining-companies recognise the reasonableness of what the committee is asking with respect to the Taupiri Company, and the committee is strongly of opinion that what are commonly known as investment companies should accept the same principle, and whenever news which is likely either to appreciate or depreciate the value of tho stock is received in the company's office, it should be transmitted without delay to the secretary of the Exchange. The committee is so strongly of this opinion that in some instances the committee has declined to recommend for quotation some new companies until an agreement has been come to with the board on this point.