THE ALLEGED SALTING CASE.

Greymouth Evening Star, Volume XXXI, 6 December 1901, Page 2

THE ALLEGED SALTING CASE.

Deputation to the Premier.

Six dredging olaims in a bad way.

A deputation, consisting of Messrs T. Rosa, J. J. Eamßay, W. M. Bradley, C. 11. £ tat ham, and J. Thompson, were at Dunedin introduced by Messrs Millar and Arnold.

Mr Boss, said that they had come to interview the Premitr about an aVeged case of "salting" two claims on the West Coast—the Wareatea and the Island Creek. They were claims near Westport, and were amply prospected, as they understood, about fourteen or fifteen months ago, and launched on the pub'io here under rosy and favourable circumstances. He bad a copy of the prospectuses. He might say that the directors took every precaution to see that the prospectus was right by sending an expert round to verify the statements made by those who vendored the claims. The expert verifid the resultt-lgiven by the vendors, and even went one better. Dredges were put on, money was called up to the extent of £16,000, and sunk on these claims. The result of the work was that one dredge when she struck a bore that went 34dwt to the yard got a return of 2oz for the week. Yet the dredge worked like a clock; at least, that was what the vendors said. The other dredge only worked three weeks, and worked on ground that was supposed to produce sdwt to the pard and she gave a result of lj-oz for the week. This aroused the directors suspicions, and theyj got their dredgecnaster in whom they had every confidence, to sink a shaft near the Isdwt bore, but ho got barely a grain to the yard. There was no doubt in their minds that this was a clear case of salting. In fact, they had a telegram from a vendor

Who said that he was confident that it was

bo. Shareholders said that those men, as vendors and experts, were criminally liable, because it was on their recommendation, that the money was put into the claim, and that they would not have got the money in on the unsupported testimony of the vendors. Therefore the deputation came to see if some redress could not be granted. Perhaps a small Government Commission could be authorised to make enquiries into the circumstances, and then bring in a finding, on which the Crown could take action against the proper persons and bring them to book.

The Premier said no one regretted more than he did that this should have occurred. It had a detrimental effect upon mining investments, and it also reflected upon the integrity of those connected with mining; but at this stage the GovernrrifSt could not interfere. He could give the deputation a parallel case if they liked. If they "looked up the Fuchsia Creek Company's proceedings they would see that the company in the first instance took civil action against those who had salted the property to recover the ptirchase money. It was quite clear to him I that the two companies in question had similar redress. In the company he had referred to the evidence in the civil case proved the salting. The company then laid an information, and there was a commital by the magistrate. The Government next stepped in, and went on with the criminal prosecution, so that it would be seen it was not for the Government to step in at this stage. The companies would have to take aclion themselves. They had their civil redress. The shareholders had been induced to invest and put their money into the companies. They had the same redress as the Fuchsia Creek people for the recovery of the money which by fraud and misrepresentation they Were induced to put into the company. Again, on the other hand, they must go beyond the bald statement that from the prospecting they adduced there must have been salting. Mr Ramsay said that they had a wire from a vendor saying he was satisfied there was salting. The Premier said that the next thing for them to do, then, was to bring the salters, wherever they may be, before the Magistrate's Court.

Mr Stratham said that so far as bis company was concerned he did not see that there could be any civil action, as no money passed. They had paid up jharea.

The Premier said that in the other case they paid money and recovered it. Mr Ramsay said that in the Island Creek some of the vendors had parted with their shares to other people. Those people, he supposed, would have action.

The Premier said that it seemed some person or persons unknown had salted the Wftreatea claim.

Mr Ramsey said that although they were pretty certain they knew who salted the claim the difficulty was to take action because he was afraid ihey rendered themselves liable. For instance, he had been recommended by the shareholders to take action, and although he was pretty positive he knew who the salters were, the difficulty was that if he took action and could not prove it he rendered himself liable to proceedings being taken against him. Mr Bradley: Not if. you have reasonable belief.

The Premier replied that he did not think there was much fear of that if due care were exercised. Mr Eoss said that the vendors, to a certain extent, were responsible, inasmuch as they had been negligent. The Premier said that if they were satisfied there had been Baiting they must take actions, and the Government would see that the law was vindicated. The result of the case he referred to was that two of the salters were sent to be kept by His Majesty for a conple of years, and ARwero in gaol at the present time.

Mr Bradldy: That is Foley's Creek you refer to.

The Premier : Ye?, it is on Fuchsia Creek.

Mr Thompson drew the Premier's attention to six claims which had been floated in that particular district within the last two years. Tha Triumph had liquidated, tho Wet Load had liquidated, the Miner's Lead was in process of liquidation, the Wareatoa and Island Greek were in tho same box, and the Fairdown was still under examination. The first to open the district was the Wet Lead, and the prospectus was circulated in Dunedin for private circulation only, and the company was practically floated instancly. The speaker then referred to the subsequent proceedings, the condemnation of the claim, and the ultimate liquidation of the company. He urged the Government to set up a small commision to inquire into thesa scandals, for they were nothing else. The Premier said it was clear tha' tho confiding public were to be sympathised with ; yet at the same time, aftor what had happened how on earth they would still go on he could not understand. For instance when a mining boom was on, if they pegged out a claim on the top of Mount Cook, he believed that they would get people to take shares in it.

Mr Stratbam : Not now. The Pemier: But ia boom time. It was not the people on the Coa3t altogether that were to be blamed. They had in their own midst people who were swindling right and left. Look at the caaeiwhioh from time ti time were brought before the public. The promoters, the directors, the secretary and the people who managed were as b*d as the other people. They went on drawing their fees, and where there was a good claim, they bled it to death. It was the people who were interested in floating, and who dragged in the unfortunate public, that they wanted to get at.. They had a case now of exposure brought out by Mr Easton before Parliament. It was dow before the law officers : and there were many other similar cases of hardships, where they simply made calls and calls. He said that was a wrong state of things. There should not be a single claim granted under the Companies Act. The Companies Act was for a different thing altogether. No Company should be registered under the Companies Act, but under the Mining Act, and then the publio would have some safeguard. The deputation must not shirk their responsibilities, and for Mr Ramsay to say that he was afraid he might get himself into trouble—

Mr Ramsay : I am prepared to take some risks.

The Premier : Well, prove there has been a breach of the law and a criminal wrong done and I will not hesitate, so far as the Government are concerned, in vindicating the law. Mr Ross: We thought a commission might have done it.

The Premier replied that a Royal Commission would be a farce. They wanted to lay an information and bring the offenders before a magistrate. Any machinery could put into operation would be at the disposal of the companies.

The deputation then thanked the Pre mier and retired. —Dnnedin Star.