THE MAROTOTO MINES.

Otago Witness, Issue 1905, 25 May 1888, Page 12

THE MAROTOTO MINES.

(Pbb Peess Association.)

Sydney, May 19. The directors of the Broken Hill Marototo mine at Auckland intend to return the whole of the money subscribed here for shares. They are determined to prosecute the strictest enquiry for the purpose of ascertaining who are responsible for the attempted fraud which has been exposed by the recent assay of stone from the mine. It will be remembered that we published a tele gram last week from Auckland stating that a test of some stuff from the Marototo Broken Hills mine failed to yield a grain of bullion, although former tests were said to have yielded from lOOoz to 800oz per ton. Mr Precious, of Sydney, who floated the company, was recently in Auckland, and was interviewed by a Herald representative, to whom he gave particulars of the transactions of the first syndicate, which promoted the Marototo Company, and then " burst up." He then proceeded to give the following information regarding the Broken Hills claim : — "About this time Mr G. 8. Jakins, who had been doing business with Mr Tait for corn and produce, came to Sydney to establish himself in business. Mr Tait brought him to me, and represented to me that he was well acquainted with the Marototo and Thames districts, ami asked me to form another syndicate to secure vacant mining property. I agreed, and got eight more to join me, and told Mr Jakins that he should have a tenth share free, and that we should all stand in equal together. Mr Jakins came over to New Zealand, aad, as the result of his reports and negotiations, we bought the Musket, the Martini-Henry, and and others, amongst them being the Marototo Broken Hills, then known as the Junction. We arranged to buy this for £1000, and 4000 paid up shares to the owner. As Mr Jakins was then in New Zealand, and we had not got any assays, I proposed that we should float a company of 85,000 shares — 40,000 paid up to go to the promoters, and 45,000 to be contributing shares, provided that Jakins' report verified our expectations, and if not that we should refund the money. We told them that after they heard Mr Jakins' statement they could retire from the company if they thought fit. Mr Jakins came over with the assays made by Mr Pond, and also brought stone with him which we had assayed in Sydney, and he laid his report before the shareholders. They were all satisfied, and retained their interests. Of course, in floating the company we, the promoters, had to take up a number of the contributing shares — in fact we took up about 15,000 of them, so that all we really get is the paid up shares." As rumours were current in Sydney detrimental to the speculation, Mr Precious came to Auckland, and visiting the mine, or rather the ground, took steps to have a proper test made, with the result now known. Before the test, however, j he appeared to believe that the adverse rumours were due to jealousy on the part of the syndicate owning the Marototo Mine at being forestalled. Mr Precious, when asked what steps he would take on his return to Sydney, said : — " If the assays do not come nearly up to those on which the company was floated I shall wash my hands of it, for even if it assays 2Cooz or 300oz to the ton it would not come up to those on which the company was floatedr— namely, lOOOoz or 800oz, so that the money will be returned to the shareholders." You say you have still faith that the mine is valuable ? " Yes, and if it had been put on the market with an assay of 200oz to the ton, or without any assay at all, it would have floated with equal success, but now that it has been floated on these large assay returns, if the others do not come nearly up to them I do not think we would be keeping faith with the shareholders. You will see that besides £5250 in the bank, there is 8s to call on 40,000 shares, so that we should have ample funds to open up the mine."