THE GREEN HARP SWINDLE

Dunstan Times, Issue 536, 26 July 1872, Page 3

THE GREEN HARP SWINDLE

The Auckland'correspondent of the Daily Time* says:—“ Perhaps the “Great Green Harp Swindle” has shared the public mind equally with the small-pox. In fact it has fairly stunned the naming part of the community. The Green Harp is the beach claim in which gold was first discovered, six •or seven months ago and round which not only numbers of other claims have clustered but in consequence of which a large and solid towpship has been built. Its first experimental crushing 10' tons yielded 110 ounces. The shareholders were working men, who stuck to their shares, and accumulated a few hundred weight of rich specimens, which were freely exhibited on the ground. Besides this, there were 200 tons of general stuff only waiting the erection of a machine to be crushed. Gold was often seen in the stuff, and, judging by the first 10 tons, a splendid - result was anticipated. There are 5000 shares in the Company, and they were selling at one time at 141. each. Afterwards they fell to 11., and were steady at that for some months. The New Zealand Company (English), put up a very fine battery adjoining the claim, and after many delays the crushing commenced. Rumors of various kinds then got afloat—the chief being that the richest of the stone had been robbed and privately crushed from time to time, 'the correspondent of the Grot- s wrote in the ordinary coarse, andjstated the result of the first crushing to be 475 ounces amalgam. Shares fell, and ho was freely abused as having interested motives, for no one believed it possible the result could be so small. The Chairman of Directors, Mr. T. Howe, then wrote the Cross that the statement was true when their reporter was there,;but that 13060z5. hadsince been added making 17780z5. in all, from the first 50 tons stone. Confidence was restored, especially as the Directors were not selling out. So long as they continued holders the mine must be right. Imagine, therefore, the consternation when it was suddenly discovered that these men had been quietly selling out through third parties, and had not a share left among them. Of course this could only be known when the transfers came to be registered, as the only name known to the buyer was that of the third party, to whom the original holders afterwards transferred them en bloc. Worse still, however, when the original directors, having rendered themselves ineligible, were replaced by others, it was found that there were only 519 ounces of amalgam on hand from the whole of the specimens and 120 tons of quartz. The net result is HOounces of gold, worth say 300f., less cost of crushing, which must be nearly 1007. The balance is all that is left to meet debts of about 800/., and instead of a dividend a call is inevitable. Shares are down to 10s. but sales have been made at ss. As the original directors and shareholders carefully advised all their friends to buy, the losers are largely among working men and other* holding only a few' shares each, who can ill afford to lose. Builders and townspeople at Coromandel are also indirectly but heavily interested. .The wide spread nature of the excitementpnay be easily understood and the eager crowds anxious to know the latest reliable news amidst the dark reports circulated, have formed a prominent feature in Auckland life for the last few days Of course all confidence is temporarily destroyed, and all declare they will have nothing further to do with mining, while town property at Coromandel is not regarded with favor. It does not require a prophet to predict that this will soon pass away. There can be no doubt there was, good gold in the Green Harp and adjacent claims, and that lots more will be got. But this will involve outlay and time, instead of the sudden haul which was anticipated. Such, howevt r is the effect on the public mind, that the magnificent yield of the Bismark of 989 ounces from not quite a ton of specimens is regarded as a failure, and the shares have dropped from 4/. 15s. to 21. 10s., although they have over two hundred tons of general stuff in addition, waiting only the completion of the battery now being put up. It is a great shake, but good claims with sound prospects, of which luckily there are a good many, will soon get over 11, As to Messieurs the Green Harp directors, they are charged with conspiracy, and a subsription has been quickly filled to raise 150/. to prosecute them.