MINING SWINDLES.

Evening Star, Issue 3791, 19 April 1875, Page 3

MINING SWINDLES.

To the Editor.

Sir,—lt is really lamentable to review the past history of mining speculations, and to observe the result, as far as Otago is concerned at least. Not only have hundreds of thousands of pounds been uselessly—l may say foolishlywasted; but this waste has not even taught capitalists and speculators to use an amount of caution which in other undertakings they would not have failed to apply. There can be no doubt that the readiness with which money was subscribed some years ago to any mining spec placed upon the market, has lead to the floating many bubble companies capitalists having thus unknowingly robbed themselves, As a miner, I can tell them that whilst their assistance is most undoubtedly required in the future development of the goldfields, it is not at all necessary that the whole capital requisite for that purpose should be furnished by them. The miners themselves have hit long ago upon a plan which, although deficient in organisation, and therefore inapplicable to large undertakings, has been successfully applied m the opening of many rich mines. I allude to the system of “ backers” or “sleeping shareholders. The Mining Company’s Act, is especially adapted for the inoculation of th's plan, in so far as it provides for the reservation by a company of one-third of the total number of its shares.

This reserve may very judiciously be applied by a company in the payment for labor required. Suppose that everyone doing work for a company—be he workman or agent—be paid at the rate of, say 50 per cent, in paid-up scrip at the it is issued, and the remainder of his claim be paid in cash. This system to continue until gold is struck in such quantities to enable the company to make cash payments ou t of the proceeds. This plan, if adopted, would not only economise capital, but it would also furnish the best possible practical evidence °*. tne 'honafidea of the undertaking. There is still abundant labor on all the goldfields to work it; wherever it is not found to be palatable there is something wrong, and it would be much better for all hands concerned to have nothing to do with it. 6

Another safeguard for investors is that they stipulate as a condition of their support, that every workman, from the manager down, subscribe for shares in a certain per centage to his earnings. Neither nay time nor your space allows me to go into details on this subject; trusting, howthat I have said enough to make myself understood, and to prevent to some extent, at least, a waste of money, which has resulted only in injury to our goldfields.—l am, &c,, John A. Milleb, Manager Sons of Fortune Gold Mining Company, Arrow River, Arrow River, April 10.