NEW MINING COMPANIES.

Otago Witness, Issue 2896, 15 September 1909, Page 28

NEW MINING COMPANIES.

STOCK EXCHANGE ALERT. Mr G. A. Buttle, chairman of the Auckland Stock Exchange, in an interview with a reporter, says:— "l do. not think that the present condition of the gold mining industry at all warrants so many new ventures being offered to the public. A 1 glance at the .number of mining companies already plaoed upon the Stock Exchange list will chow that there is a very larga area of country upon which mining development is supposed to be in progress; and I have no hesitation in giving expression to xny opinion that we cannot hope to find sufficient capital to properly, develop all the properties that are offeretr. It would be preferabe to expend tne capital in properly developing the properties already floated, rather than, tospread the money over a large number -of properties. Naturally the committee is desirous of furthering the interests or genuine mining as much as possible, puifc we find it a matter of the greatest difficulty to deal with this question so as not' to injure mining, and at the same time to protect the public. As you know, the Exchange has already taken some actioi* in passmg a regulation that all vendors?' shares must be pooled for six months. The object of that is to protect the public from* the shares allotted to tho vendors being ait once thrown on the market. It i» quite evident now that the regulation is not a sufficient brake upon, the flotation! of new properties, and it is perhops just; as well to warn the promoters of new, mining ventures that it is probable that, in the end, the committee will recommend! the Exchange to insist upon a large reduction in the number of shares allotted! to vendors, and also not to agree to the payment of any cash consideration unless the vouchers can be produced to showthat the money has actually been cxi pended upon the development of the property prior to its being offered to the public. It has also been suggested, thafe before a new company is quoted it must have been in operation at least six months, and that the application to be quoted xnusti be in the hands of the Exchange for fullyi one month before the matter is submitted to the vote of the members. New flotations will probably only be quoted eabjecfi to something like the above conditions, which may be adopted when submitted by, the committee to the Exchange, at a meet* ing that will be held in the near future. Another suggestion of the committee is that the prospects of any mining company, shall be submitted to the Exchange before* issuing the same to the public This is suggested in order that th/ terjns car* be considfirejd hefo,rehan.d i "-