THE RAINY CREEK QUARTZ MINING COMPANY.

Kumara Times, Issue 872, 17 July 1879, Page 4

THE RAINY CREEK QUARTZ MINING COMPANY.

The history o! the Rainy Creek Quartz Mining Company, Reefton, Is an interesting one, and it only shows how careful people should be before they invest in companies upon mere representation, and the Inangahua Herald of Thursday gives a history of the company as follows : The Rainy Creek Company commenced crashing about March, 14, 1876, and a reasonable time would have expired by the 24th of that month for the directors or other confidential persons to have learnt whether or not the venture could be regarded as promising. At that time Mr Mathew Byrne was a director. His name is brought forward, not because be is a contributory of the company, but because there is indirect evidence that on the 21st of April, at any rate, he had made up his mind to get out of the venture. On this date he transferred his whole interest to Mr Joseph O’Hanlon, On the same date the transfer was lodged with Mr Brennan, the legal manager of the company, the receipt being endorsed by the latter on the transfer. On reference to the share register we find that the transfer was not entered until April 24, but this circumstance of itself would not be important. In the hurry and pressure of business the transfer might have been mislaid, and the matter would be undeserving of comment but for the subsequent action of Mr Byrne. Three days subsequent to the sale and transfer to O’Hanlon—namely, on April 24, we find Mr Byrne attending a meeting of directors at whicu a call of threepence per share was struck. Now, it will surely not be gainsaid that at the time Byrne sat as a director he was conscious that he had disposed of his interest. We must assume that he was, and that he was desirous that his coshareholders, O’Hanlon of course excepted, should remain for some time at least in ignorance of the fact. Inquiry into the motive that induced Byrne to act as a director under such peculiar conditions points but to one reasonable conclusion—namely, that he was undesirous that the directors and shareholders should for the time being share his knowledge that the venture was one which it was desirable that holders should get rid of. We offer no opinion upon the transaction, and have only referred to it in order to show that on the 21st of April, 1876, at any rate the affairs of the Rainy Creek Company had arrived at a crisis. The mine, which outside the uncalled capital, constituted the sole asset was valueless, while the liabilities were very heavy. The Company cleaned up early in May, and although the result obtained did not publicly transpire, there was considerable restiveness manifested on the part of some of the shareholders, and we then find a aeries of transfers effected to men of straw, which the liquidator, when the estate passed into his hands, attempted unsuccessfully to ignore, and to have placed on the register the names of the respective tranferrers. We append a list of transfers effected and ratified by Judge Weston after the result of mining operations was generally known, and upon which not a shilling had been raised.

Amount due as Transferror. Transferroe contributory.

£. s. d John Bntler James Deehan 178 18 8 Patrick Butler A ngustua Walsh 343 1 1 D Sheedy Foley 354 3 4 T W Hungerford Henry Gross ) _ . E S Laptnan Henry Gross } ' “ " * Ben Gough P M‘Govern 192 7 8 Patrick O’Neil B, H Tudhope 22 18 4 James Clinton Chris. Muldoon 80 4 2 In the case of the last named transfer a note is affixed by the liquidator that the transferee admitted to him that the transfer was effected for the purpose of relieving the transferror from liability. Under such circumstances we cannot be charged either with illogical conclusion or venomous misrepresentation in having stated that the condition of the Hainy Creek Company in respect to some of the transfers was a lasting stain upon the district. The Inangahua Times says . —The Devil’s Creek rush continues to yield its treasures. On Monday last. Carton and party obtained one nugget weighing close upon three pound weight, and another of about half the size, besides several smaller “chunks.” arton and party are the prospectors of the rush, and they have been singularly fortunate throughout. So groat are the apprehensions of an attack on the Vatican that the Pope has made a confidential inquiry of foreign Governments as to whether he could rely on their protection, and from some of them he has received a reply in the affirmative. His relations with the State seem to be improving, for he has at length permitted a building within the precincts of the Quirinal, where the King of Italy resides, to be arranged as a chapel. The palace itself still remains under in» terdiot. The following is a list of WestPnd exhibits for the Sydney Exhibition, now on view at the Town Hall, Hokitika “ The gold pyramid, which,” says the West Coast Times, “ when erected, will bq over 27ft hight, was in three sections, as the Hall i, not lofty enough to allow it to be properly n n v 8 photographs of the Town Hall, Post Office, Hospital, School (2), and wharf and harbor works (2), are in one frame, and are capital pictures, as are als the beautiful views of scenery on the West Coast road and pictures of the southern glaciers. Mr Tait’s (gardener) collection of ferns and mosses is a very handsome one. and will be interesting to the scientific botanist as the plants are all named. A copy of Mr Cross’s Exhibition Poem is framed, and beautifully illuminated by Mr Tindall with a bordering of flowers, 'ome specimens of timber complete the list of articles on view.”