MINING PROMTION

Poverty Bay Herald, Volume LXI, Issue 18580, 14 December 1934, Page 13

MINING PROMTION

fpi nkwARRAhTED NECESSITY FOR CAUTION “Them has been nothing so far to warrant a mining boom in NW Zealand and it may be said with perfect safety that exactly the reverse is the case,” stated Mr. G. 'C. Creagh, chairman of the Auckland Stock Exchange, at the annual meeting of the exchange, “I feel sure that any unbiassed perspp gping through a list of the mining eomphnics Boated during the past year or two mil be fully convinced of the necessity ,'ipr exercising the greatest pahtiqh' be|ore speculating iti goldmining shares.”

Soffie years ago it had b&pn suggested that no goldmining promotion shoulp % permitted unless every .piece pf grpund in connection with "Whiph -it Was proposed to form a company was dfM approved by the niSJicetqr pf mines for the district, or h committee of experts'appoiute.d by the Government, Mt (Sfepgh cph'|inued. Such a schpme TVqkld 'tpM- m many cases to. save the, Vfs%' ®°ing exploited By jmscrupulpus company promoters. Wnpß ipypsiprs saw in a mining prospectus ||at prompters , were to receive large lipekßf : qf phM' u P shares, they should Cpusjder the proposition very carp; fully pud ascertain the value pf what pe promoters wero giving tor the shares.

Similar warnings had been ,|#res in other parts of the world, he said. The chairman of the Hobart Stock Exchange had recently drawn attention to the-fact that as a consequence of the unprecedented rise in the price of gold many new flotations were appearing on the .market. Although spine were no doubt very good, others had little or no justification for taking the public’s money. “Speaking for the Auckland exchange, I may add that we have absolutely set our faces against the countenancing of ‘wild-cat’ goldmining schemes and the resultant exploitation of the public,” Mr. Uroagli concluded.