GOLDMINING COMPANIES AND THEIR EMPLOYES.

Otago Witness, Issue 1989, 7 April 1892, Page 15

GOLDMINING COMPANIES AND THEIR EMPLOYES.

TO THE EDITOR.

gi n> — While we hear so much talk of dummying land at the present time, there is one kind of dummy I wish to call the attention of the public to, and more especially that of the working man — viz., the dummy goldmining company. These dummy companies have been very common these last three years. The way they are generally run is, after the first two or three calls, to pay nobody if they get no gold, and simply go into liquidation. As their assets are generally nil, they leave their unfortunate employes lamenting that they had trusted to the soi-disant good names of these dummy directors. Within a radius of 25 miles of myself there are no less than three goldmining and one dredging company which have shut down without paying their employes — owing in some cases from two to nine months' wages, which they are never likely to see. The length of time may easily be accounted for, as in goldmining there has crepfc in lately a system of labour giving long credit for its work. Now, this is the matter I am hoping that you, Sir, may find time and space to devote an article to, as this method of getting the workmer to work as long as they will and then closing down is becoming very prevalent, and it is a crying shamfi that there is no law to stop this practice. One company, to which I am a victim to the amount of nearly LBO, I know for a fact has been carried on by the method of "no gold, no pay " ; and the way by which, to use a common term, they have worked the oracle is such that they have no assets whatever, and I, with others, have been left, as far as they are concerned, .penniless. It is one of the most glaring cases of just being within the law of "trading under false pretences" that I have ever heard of.

It is scandalous that such things should be allowed to go on. All these kind of companies need do, when they can get no further credit 'in the way of labour, is to go into liquidation, and nobody San say "yea or nay"; nor can a creditor have the pleasure, as in the case of a private individual, of putting matters in such a light before a judge that would cause a criminal prosecution to follow. I only hope our judges will grasp the fact, shortly, that a director of a company is just as liable for over-trading as a tradesman is, and that some of these companymongers 'will meet with their deserts. No doubt, Sir, you may think that I am writing in a very bitter strain, but this is the second time consecutively I have lost my wages, and I naturally feel very sore over the matter, more especially as in my case, did you know the circumstances, there has been utter callousness and ingratitude shown in the matter, and this by men who hold themselves up as honourable men of business in our centres. — I am, &c<> Island Block, March 28, F. S.* Cj-aeke.