GILDED PROSPECTUSES.

New Zealand Herald, Volume XLVIII, Issue 14746, 31 July 1911, Page 5

GILDED PROSPECTUSES.

A CENSOR BUREAU SUGGESTED

INFLUENCE OF THE GAMBLER.

Mr. Leslie W. A. Macarthtjk, F.G.S., who has had a lengthy experience in mining matters,' and intends to reside in Auckland for'- a year or two, gave some interesting views on the raining industry, to a Herald representative.: Reference was also made to English and other oversea capitalists interesting, themselves in the development of mining properties in : New Zealand.'- \ '", '■' Mr.. Macarthur visited New j Zealand some 18 years ago to report upon several prospectuses that had been placed before Eng- r lish investors. He spent about a year here and obtained a fair insight into many of the mineral districts. It was not his intention, he 'said, during his present visit to examine and report upon mining ventures here, as far. as the .initiation; of public companies was concerned. He was, however, more than willing to examine arid report upon country f syndicates desiring to. legitimately develop .property, and was also willing to assist in obtaining oversea capital for approved gold or other mineral resources. ' ' ~'"., , : "But most distinctly," Mr. Macarthur. said, '"I will not report upon any mine in which tho shares are placed upon the public market. My ..experience, is that the share-: market has more than tended to kill the' goose . that desired to lay ,',the golden : egg, in Australia, and possibly— I cannot yet speak with certainty—-in New Zealand." ;''■•;; \ ; ?" : , *" N * '■'"' ■ -admitted that without the medium of the Stock ; Exchange neither the investor, the prospector nor the übiquitous promoter could'deal with mining properties. "My personal experience," he proceeded, "has a considerable element of the negative as far as public companies are concerned. For instance, a favourable report can be - made not only of mineral resources but of prospective indications. I have found that the 'bulls' and 'bears' of the" Exchange make cruel publio sport with genuine investors practically making a gamble in tho riso and fall of shares, whilst not caring a 'How-do-you-do' as to the legitimate development of the property they 'operate' upon." Mr. Macarthur was ready with a remedy for this state of things. "Recently," he said, - "I drafted a Bill for t the Victorian Legislature with a view to instituting ; a; mining censor bureau, the objects of which would.be not only to protect the investing public, but also directly tend, to restore tEo confidence of 'oversea capitalists supporting the development of the ' mineral resources of • the country." The. modus; operandi of" such' a bureau, he .explained,, was simple in ■ tho': extreme. A prospector or lessee would report, to the > Government the details of his mining property, indicating that he desired to place the same upon, the sharemarkeb for company or syndicatefinancial:*; - support. , Upon sufficiently substantial proof being submitted that prima, facie the property was bona fide, a-Govern-ment inspector would endorse the representations made, and then the prospectus, would bo "earmarked" by the Government as giving genuine information as to tho property. ,". . ," _ v > "Such prospectuses,'.' he continued, - "sent; oversea to England to . raise capital and ! lodged with the Agent-General 4 or High Commissioner would i deservedly obtain credence despite the fact that the ■ Govern-' ment did not either recommend investment or otherwise, but simply earmarked the prospectus as prima facie genuine."' •' His experience was that certainly seven out of 10 prospectuses, sent oversea for capital were overdrawn, some "gilded" beyond recognition of the property, and some grossly, if not intentionally,_ deceptive. ,Ho was of opinion that a mining bureau for New Zealand would be a -distinct advantage to the .mineral' development„hore. It. would be merely -an auxiliary, adjunct to the High Commissioner's 'London office, where quasi-certified or, "earmarked" prospectuses would be. available for the perusal of investors desiring to invest in overseas mining and mineral industries. . , ,", ' Referring to his past experience in New Zealand, - Mr. Macarthur expressed himself as being favourably impressed. _ '.with - the mineral resources of-the-Dominion.. "You have," he said, "many minerals of commercial value—apart from gold, silver, and copperwhich are more or less kcglected. I would strongly suggest that your Government be urged to supply small samples of crude ores to the public institutions in each. mining centre, such as radio-active - ores, wolfram, scheelite, cinnabar, platinum; arid again phosphates—as * occurring in . apparently rock systems.. The prospector cannot be expected to recognise t such valuable- ores without at least some visular' or other knowledge of such ores in their crude nature." -. Mr. Macarthur is the author of a manual on the "A BC of Mineralogy." In this little work the ', author, clearly . indicates in language intelligible to every prospector the way to test and prove ore of any kind whilst out in the bush without the elaboration of assay. This is, of course, qualitative and not quantitative.