A Mining Swindle.

Cromwell Argus, Volume III, Issue 132, 21 May 1872, Page 7

A Mining Swindle.

In a previous issue we referred to the fact that the Felix mine had turned out a duffer, and that suspicions were entertained that the trial crushings, on the faith of which the present holders were induced to advance capital to develop the mine, had been salted. The shareholders and directors, who were themselves taken in, are so convinced of the matter that they are now raising subscriptions amongst themselves for the purpose of instituting criminal proceedings against those who are suspected of having perpetrated the swindle. The company is now being wound up, and liquidated voluntarily. The whole affair appears to be a gross swindle, although it was certainly cleverly executed, for among those who suffer most heavily by the transaction are Messrs John Ktanuing (manager of the Central Italy) and J. W. Walker (manager of the All Nations, and late of the Long Drive), both of whom are men of very large mining experience. So confident were these and other gentlemen < f the genuineness of the mine and the crushings, that they never parted with their interests, although the original shareholders cleared out as soon as possible, and at the time of the crash only one <>f them Ik Id the small interest of 50 scrip. The result of the late crushing at Russell's battery was so wretchedly poor that suspicions were at once aroused, for out of 40 tons put through the mill, only 5 dwts. of gold were obtained. The directors reported as follows to the meeting of shareholders, at which it was decided to wind up the company : "In 1871, three crushings were made, viz. :—July 1, 5i tons, producing 8 ozs. 5 dwts. 12 grs. ; realising, at 555, £22 12s 4d. July 20, 9 tons, producing 10 ozs. 10 dwts. 12 grs.; realising, at 535, £27 17s lOd. September 2", 20 tons, producing 20 ozs. 8 dwts. 12 grs. ; realising, at 5Gs, £57 3s 81 ; —making tons, giving an average of 1 oz. 2 dwts. 10 grs. to the ton. Relying on these crushings, which were so regular in their results, and which were such as to induce those in charge of the batteries at which they were made to invest largely in the mine, your directors proceeded to have the mine properly opened up. On the works being completed, the late crushing was made, and the directors cm come to no other conclusion than that there his been foul play, and that it is useless to carry on further mining operations."—Th nns Adoertiicr.