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Nelson Evening Mail, Issue 26, 31 January 1870, Page 2

The Wellington Post says: —A great reef swindle has just been exposed in Tasmania. Messrs. Mullen aud Ellis it seems sold an alleged auriferous reef on the "Waterbouse Gold Field," as it was called, for the sum of £1000. Mr. Dowling, mining manager appointed by the purchasers, together with some miners, proceeded to take possession of the reef at Waterhouse; but a man named Williams, who had been left in charge, refused to allow them near the shaft, which had partially filled up. After giving a good deal of trouble Williams vacated the claim, and the men went to work. By this time a large ciowd of men had gathered together. After working some time the miners expressed their belief that the reef had been " salted" —in other words, the gold found had been placed in the quartz, and they pronounced the affair a swindle. The purchasers immediately took proceeding?, and had Mullen and Ellis arrested in Launceston as they were on the point of sailing for Melbourne. On Mullen a draft for £300, was found, and on Ellis a draft for £360. They appeared somewhat astonished at their arrest, but made no remark, and proceeeded quietly to the watch-house, where they were locked up. They were afterwards brought up at the Police Court, charged by Messrs. Tulloch, Murphy, and Hudson, with combining to defraud, and remanded. The affair has caused much excitement, both in Tasmania and Victoria.