MINING

Hokitika Guardian, 16 September 1932, Page 8

MINING

NEW COMPANIES. . SAFEGUARDS FOR PUbLIC ( DUNEDIN, fieptambv 10. i ' Advantage was taken of the opportunity afforded by the visit of the tinder,, Secretary for , Mines, Mr iK'imbell, to Dunedin to place. before" .him the views off those interested in .the mining, industry regaining the danger of the public losing confidence as a result 0f.., unwise,, fiompahy flotation. . Am. informal conference , this morning ; w»s attended by Mr. Kimbell, ■ tjepnesehtatiiVes .of the Chamber of Commerce, and /several people Connoted with thje mining mdußtry. Mr J. R. Fairbairn, who presided, said that it was felt by the . Chamber of Commerce that if steps were not taken to safeguard mining,' interests as a whole,, there would be a repetition J of, the experience of 1 30, years ago, l , when. the., public lost all confidence in mining investments. A sub*coramittee of the Chamber, which had Seen appointed to report on the matter, had recommended that a Board should be pet up consisting of . business men, engineers, and members of the Stock Exchange, which would give it> recognition ’to any reputable mining proposition. Such a board would b'Ase its opinions • on information submitted to it regarding the results of teste Which had been carired outon the area on which it wtts propospd to commence operation. It was hot considered advisable that restrictive legislation should .be ..introduced as the. Mirifes Department would not be justified. ip; taking the responsibility of condemning any project. . ' ' THE DEPARTMENT’S VIE’W. | ; Mr Kimbell said he had- considered; j for many years that the Mines De-| partment; should do what it could fo maintain the mining industry on business like lines. The question' - was, bristling with difficulties, however, and be doubted very much if the Gov*, eminent would take on Itself the responsibility of checking the data- in the many prospectuses that were now being issued throughout New Zealand'; He. though ’that the Chamber of C64&nierce and the Stock Exchange could largely safeguard the welfare of their elientk if they would Appoint reliable a qualified mining engineer, paying hiin; k reasonable fee for the pUfpose’ o'f examining all the data in cehriecffon frith.- the prospectuses that ' were, now being issued. The • engineer would have made available to him all the information in the possession of the Minn Department, and a statement pouid then be made to the joint bodies Whether i the information contained ; : sri Prospectuses was correct, ( the teats had- disclosed. -the - Stock Exchange could refrain from putting a mining company on its list till'the jpompnny started work. Mining- fights Were being taken up iff which no testing whatever had been done and prospectuses Were being issued, on condition being that the promoters should receive flO, 40, or 50 per cent of the shares as paid up. Such a state of affairs'was ridiculous and. would do the •jhdustry a great deal of harm . | Mr Kimbell added that fully 90 per bent, of the companies floated were not being properly ’tested and the Department felt very concerned about it; V TESTING OF GROUND.. . •| : Vir . -~r F.MP'&A.Mfoii .'k PROFESSOR PARK EMPHASISES NECESSITY. :T-

•f -. DUNEDIN, September, d2g', i The necessity /for the systematic testing. of ground as a prelude to the (jpmtriencement of gold mining / bperajtions was emphasised this morning b? Professor James Park in the course, of An interview. In his opinion the haphazard placing of men without having some plan in view led only to a waste Of public money, he and it t would be far better either to spend the money available in constructing trackS jto the inaccessible part of the fiord country. ' ; "■ ; In answer to a question concerning the advisability of building a ne\v dam, on the Kawarau river,- Professor Park; said that in his opinion the erection of a dam below the Arrow river would; not be justified till the bed of . the; Karawau had been systematically tested by boring. To spend money.'in, the erection of costly dams without ppbjqcting the grouhd to adequate; testing would be courting disaster.; Discussing projected operations ;• in; Lardrona , Valley, Professor Park, said; this area had been the scene of minihgj operations for the- last half-century of more, during which time the ground had been ransacked, first by Europeans and later by t/hiuese, an& that if he were about to undertake prospect-, irig he would hesitate t,o stai't there. During his survey of the Cromwell Basin he had pointed out the exist-, ence of an old course of the Kawarau between the river junction and the hills. This was ground which was well worth investigation, either by boring or by driving. The main point to be kept in view in. connection with the placing of Unemployed men on mining areas was the arranging for the systematic examination of the proposed area by an experience consulting engineer,. ‘ ‘ln mj opinion the haphazard placing of men without some definite plan in view leade only to waste of public mohr concluded Professor Park, fit would be far better either to spend thd money available in constructing- tracks to the inaccessible parts of £Te fiord country in order to encourage men to undertake lndejpendent prospecting Or to continue the construction of roads fit at least for horse-drawn