MARKET “RIGGING."

New Zealand Times, Volume XXXIII, Issue 7867, 1 August 1911, Page 1

MARKET “RIGGING ."

MINING EXPERTS VIEWS CRUEL SPORT BY "BULLS - ’ AND "BEARS." 'SPECIAL TO THE "TIMES." AUCKLAND. July 31. Mr Leslie W. A. Macarthur. F.G.S., who has hail a lengthy experience in mining matters, and who visits New Zealand to report to English ami other oversea capitalists interesting themselves in the development of mining properties in New Zealand, in the course of. an interview on company promotion said ■. —"My experience is that the share market has more than tended to kid the goose that desired to lay the golden egg in Australia, and jiossibly—though'l cannot yet speak with certainty—in New Zealand.” Ho 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 he made not only of mineral resources but of prospective indications. T have found that the bulls and boars of the Exchange make ernei public sport with, genuine investors, practically, making a gamble in the rise and fall of shares, whilst not caving a how-do-you-do as to the legitimate development of tho property they operate upon.” Mr Macarthur was ready, with a remedy for this state of things. “Recently,” he said, "T drafted n Bill for 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 direetlv tend to restore the confidence of oversea capitalists supporting the development of the mineral .resources of tho 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 hie mining property, indicating that he desired to nlaxjo the same upon the Bharemarket for company or syndicate financial support upon sufficiently substantial proof being submitted’ that priraa facie the property was hona fide. A Government inspector would endorse tho tions made, and then the prospectus would he "earmarked” by the. Government ns- giving genuine , information as to tho property. His experience was that certainly 'seven out of ten prospectuses sent''oversea for capital, were overdrawn, some "gilded" beyond recognition of the -property, and some grossly, if not intentionally deceptive. ■ ■