ANOTHER MINING SCANDAL.

Greymouth Evening Star, Volume XXXI, 2 December 1901, Page 4

ANOTHER MINING SCANDAL.

Island Creek will Liquidate

Alleged to have bsen "Salted."

A special meeting of the Inland Creek shareholders was held last week at Dune din to consider a resolution to formerly wind up the company. The Chairman in moving the adoption of this proposal, said that the actual results had not been consistent with the projects held out by the vendors. Threjs. months back they appointed^ ~u* now "fair ivT'Eenzie), who, at the sugges'.ion of the vendors had put on new tables and kng.h?ne;l the ladder. This took thuo wetk*. t.nl they than worked fhe weeks, and got soz of gold Tai3 was disappointing enough, bub wli3n they got to a rich lead, whioh by baring weat 3idwt to the yard, they got the magnificent yield of 2oz; and every panicle of gold was saved. This wab the nrcond claim tho company had taken up, and they had determined to first test it thoroughly. Their expert, who was sent over to report, wired in * few days confirming all the previous statemenis as to its auriforous character. He said that the claim was "gold-bearing from the grass downwards." The same 3dwt prospects to the yard were obtained in the bores, and this expert finished up by saying that he considered "they had a valuable property, and, compared to the Molyneux, would give splendid returns for tbe money invested." On the strength of these reports they went ahead, but after working a month for practically nothing, dissatisfaction was expressed. Ihe venders Warned the dredge, and found every fault but the right one—with the c'aim; The dredge was altered at a cost of jfi7oo or JEBOO,. and another start made. Now, .after an extensive trial, the now dredge-master writes informing them in a straightforward, manly way that he considers the olaim a rank duffer, imputing foul play, and asking to bo relieved of the mmagement, Tho directors had suggested to the venders subsequently that they should rebore the claim. Mr Gibfa lid had replied "what rot" and stated that he had already put down 100 bore?, aud tested it thoroughly. Later, however ho admitted that something was wrong, and feared that he had been "had," but he would find it hard to prove—still, he would spend his last penny in bringing the guilty parties to book. Following upon this letter, the dire tors received a wire from Mr Gibbard that day, which substantiated his previous suspicion. The wire read: "Positive now claim "saltod" sunk bore close Popplewell's best; went less than grain to yard; diffortnt sample gold; institute proceedings; ample evidence." Tbe chairman wont on to say t ,n'. B'>vf:ril other companies were njw a vailing further developments of this a.'l3ged "jalting," as they suspected the iiuuc treatment in own cases.

A, Shareholder: Mr Chairman, you pad a visit to the claim, did you not ? What wa? your experience ? TheOhairman: Highly satisfactory. I washed out five barrowloads, and got 7} dwi to the barrow. The wash came out of a tunnel in the terraco. It was broken out and filled into the barrows by Mr Tim O'Neill, one of the vendors.

Replying to a ques'ion, tin Chairman man .mid thai the vendors had received 500 shares, all of which thoy had Eo'd. la view of ihe past wire from Mr Gibbard thero was no use in continuing. .If the dredge brought even a fair price all their creditors would be paid ia full, without calling up any more capital A Shareholder: Would it not be po3-' Bible to amalgamate with another claim on soma terms ? The Chairman: The position isthit the company are being sued, and must protect thsmselvee by going into liquidation. The motion wa< then put and carried without dissent, Mr J. J. Ramsay being appointed liquidator at a fee of thirry guineas. The Chairman said in speaking to shareholders they had all expressed tl•enwillingness to contribute towards bringing the perpetrators of tho alleged "salting'"' to justice. He thought thoy should cooperate with the other companies concerned.

Mr Burton moved th<»t the liquidator be recommended (if ho sees fit) to ntiliso part of the company's funds, in conjunction with the other comfan s, n criminally prosecuting tho guilty person*.