MESSRS COOK AND OKAY'S FLOTATIONS.

Greymouth Evening Star, Volume XXXI, 30 August 1901, Page 4

MESSRS COOK AND OKAY'S FLOTATIONS.

Some Extraordinary Evidence.

(Special to Stab,

Dcnedin, August 29. In giving evidoace before the Mines Committee in connection with the petition for the sotting up of a Royal Commission to enquire into the flotation and ■pa.it management of certain mining companies, Mr H. E. Easton said: —" I would like to refer to No Town No. 2 Company. I find that it was floated by Messrs Cook and Gray, that Mr Cook acted as vendor and as broker, the registered office of the company being at Messrs Cook and Gray's office, Duncdin. The secretary of the company, Mr Hoisted, was an employee of Mr Cook's, and Mr Cook was, until recently, a director of the company. Mr Cook had the profits as vendor, salary as secretary, commission as broker, and fees as director. The prospectus of this company contains a long report signed by Mr Howard Jackson, C.E. On Mr Jackson's name appearing on this prospectus there was a great rush for shares, and they were quoted at several shillings premium. He has repudiated having signed such a report in the Press of the colony. Now, directly the public read Mr Jackson's repudiation, and knew of the deception that had been practised on them, the shares fell to a considerable discount, and have since been unsaleable. At the time when Mr Cook and his employees were owing money on their shares, hundreds of pounds sterling, small shareholders were being sued for their arrears." In connection with the Lee's Ferry Company Mr Easton said : "At the last meeting of this company, Mr Cook's nominee and employee, Mr Howes, stated that if a resolution to liquidate was carried the liquidation might be very expensive to the shareholders, as his employee, Mr. Cook, might claim to receive a dividend from the contributing shareholders on his vendor's shares. The witness next referred at longth to the Ross Day Dawn Company, the circumstances in connection with which, he said were much uu the same lines. He alleged that at the time when very large sums were owing to the Company by Mr. Cook and his employees, Messrs Mace and Howes, other smaller shareholders were, being sued and threatened with distress warrants. With regard to the Ngahere Company, the witness alleged that Mr. Cook's employee and clerk, Mr. Edward Mace, held no less than one thousand contributing shares, and up to the time that he'(Mr. Easton) left Dunedin only i'so in respect to these shares out of a £ICO due had been paid, and yet on the balance o£ those shares Messrs Cook and Gray received 2i per cent brokerage from genuine or qualified shareholders. As to the Wicklow Company, registered on March 3rd, 1900, the witness stated that on July 27th of this year the application money was owing on 250 shares, the allotment money on 1,250 shares, and on all these shares Messrs Cook and Gray had received 2h per cent brokerage from moneys paid in by qualified shareholders. Mr. Cook, who was elected a director on April 9th, 1900, received twenty guineas for attending one directors' meeting only during tne yeer. Mr. Easton added : " I may mention that I joined the boards of these four companies for the express purpose of breaking up these rings or monopolists, and I had no other object, as I have stated over my name and address through tab papers of the colony, than to smash companies up and break up these rings of monopolists." Evidence by Mr. Cook.

Before the Mines' Committee Mr. W. R. Cook, of Messrs Cook and Gray, gave evidence respecting the allegations made against his lirm in connection with the flotation of several West Coust gold dred-ing companies. He stated that grave charges had been made, and he ■wished an opportunity to look into them, in order to see how far they were true, though ho knew a very great deal of what had been said was absolutely untrue. He asked the Committee to order tho production of the books and to summon the directors and secretaries of the various companies. Possibly ho (Mr. Cook) - had been at one meeting where shares in a company lloated by his firm had been allotted. As to the statement that of twelve companies floated by his firm eleven would go into liquidation, he was prepared to say that live of them were pa.ing. In every one of the twelve companies ho (Mr. Cook) held at least 500 contributing shares, and Mrs. Cook a like number. All calls hid been paid on them, and the statement that Mrs. Cook owed ioO on shares in the Tucker Flat Company came as a surprise to him. If such a liability existed, it wasone call of 2s per share. Both Mr. Jackson and Mr. Don had reported favourably on the No Town- claim. He had paid Mr Howard Jackson £SO for his report. Mr. Easton was itnfortunatcly a connection of witness's by marriage, and had thrust himself upon him, saying he wanted to go into the dredging industry, and asking witness to advise him. This he had refused to do, but after some pressure Mr. Easton went to the Coast and saw the claims there. Continuing, witness said : —" No money has been spent in building dredges for any of the companies, and if they are wound up wo shall loose our if a share or something like that, Any misrepresentation on my part, or any malpractices in any respect whatever, I deny. There may have been mistakes made, tho same as in everything else, but to all of those charges I am sure I can give a good reply.' The witness denied that the auditors were ever employed at his office, Tho companies whose whose office was at his platje were working satisfactorily, the shares were generally at premiums, and dividends were being paid. Dredges had been built for five of tho companies, and were now working. Four more were being built. Asked for an explanation of the serious allegatious regarding brokerage charges, the witness said :—" We got 2i per cent brokerage on the contributing shares—that is ' what everybody got, with the exception of those got an overriding commission of LV per cent and 2\ per cent, which most of the brokers did in Dunedin. If any brodera"o was paid on shaves that had not been paid for, the auditor, should have called attention to it. The only matter bearing on tho point known to him—speaking from memory—was in the case of the Ngahere Company. Ho got a letter from tho liquidator, addressed to Cook nnd Gray, asking for a refund of £5, being the application money on 100 shares not paid by a shareholder who had nothing at all to do with Cook and Gray. No brokerage was allowed on vendors' shares, only on (he contributing shares."

After the witness had concluded his evidenco, Mr Easton asked leave to repudiate Mr Cook's statement that he was either a connection or a relation of his. He stated that he landed in the colon','on January 17th, 1900, and until April 23rd following had never heard of that gentleman. What induced him to believe that M<* Cook was a man to be trusted was fhe fact that he had been appointed by the Supremo Court as liquidator of several large estates.