The Philipsburg mail., 1898-07-22

purchasers 10 tne discovery or a gold
reef which amply repaid them for their
outlay.
A few instances of remarkable cases
OF sailing may be interesting. The
Mount Huxley mine in Tasmania af-
forded an instance of most success
ful salt. A tunnel was put in hill for
a distance of about 100 feet, and the
sides, roof and floor were we'll salted
with fine gold dust. The so-called
mine was then offered to Sydney syn
dlcate, who purchased it on the advice
or an expert. Indeed, his account Of
the property was so glowing and the
assays made from various samples TAX
en- were so good that the shares in the
syndicate went up to an enormous
price. Gradually the Mount Huxley
mine got to be talked about all over
Australia as a possible second Mount
Morgan, and preparations were made
by the syndicate to float company on
large scale. But the ardour of the
shareholders was suddenly and effectu-
ally damped by the report of a govern
ment officer, who was asked to exam
Inc the property, and who declared to
| the effect that it was no mine at all,
but purely a commonplace, though ra-
ther extensive, salt. An attempt was
made to prosecute those concerned in
the swindle. but no direct evidence
could be procured. About 10000 was
lost by Sydney spectators in this ven
ture. In another well-known case
about thirty holes were sunk along a
series of alluvial claims in Tasmania,
and salted with tin. The property was
then offered to Melbourne syndicate,
who had it inspected and eagerly pur-
chased it. 1t was only after company
was formed, and big hydraulic machin
cry erected on the claims, that the
swindle was discovered The colony
of Victoria had very bad case of salt
ing exposed last year. About three
years ago certain Colonel Morgan"
who was formerly at Broken Hill, and
before that in Nevada, U. S. A., was
sent to take charge of reported val
liable silver and lead mine in Gipps-
land, owned by a Melbourne company.
The colonel sent down from time to
time glowing reports upon the mine,
and after some months a few tons of
silver-lead ore were forwarded to Mel
bourne from the property, and sold at
a satisfactory price. Strange to say,
however, the regular delivery of ore
was not maintained but the colonel eX
planned this by reporting that though
there were immense bodies Of ore prac-
tically exposed yet the mine wanted
properly opening up before the ore
could be dealt with On large scale.
Time went on, and funds giving out,
the company was reorganiZed; the
splendid reports of the work in hand
which reached Melbourne every fort
night rendering it easy to obtain fresh
capital. Then one fine day the colonel
reported that the mine was sufficiently
developed for the erection of machin-
cry, and the directors were specially
asked to visit it and see for themselves
what a magnificent property they had
The journey was long and difficult;
but the visiting party from Melbourne
felt themselves we'll rewarded for their
trouble, when they examined the work
ings. and saw on all sides of them, and
overhead and underfoot, magnificent
carbonate and sulphide Of lead ore, rich
in silver. In every place exposed
there was ore, and Judging from ap-
pearances, there was practically an un-
limited supply. The directors returned
to town highly pleased, and at once
made arrangements for the erection on
the mine of concentrating and other
machinery. Meanwhile the shares of
the company rose high in the market.
the result of the directors visit having
become widely known. But suddenly,
Just when the machinery orders had
been placed, it was discovered that the
colonel was missing, and that he had
sold oil his shares, his holding having
been pretty large. The reason was i'm
mediately forthcoming, for an oyerseer
at .he mine confessed, under promise
of freedom from prosecution, that he
had been a confederate of the colonel
in "stacking' the mine. 1t turned out
that there was actually some ore there,
though only few bunches and this
had been used by the colonel in pack
ing the sides and floors of the work
ings. 1t took him many months to do
the work, as there was lot of trouble
in procuring sufficient ore, and it is no
easy task to pack drive; but he was
eminently successful, as has been SEEN
1t is hardly necessary to add that the
colonel has not been heard of since.
Over 800 ounces of gold were used to
salt mine in New South Wales some
few years ago, with the result that the
property was purchased by Sydney
syndicate for 100000. So well was the
sailing done that expert after expert
was deceived, and it was not until the
market price of the syndicate shares
totalled over 100000 that the property
was proved to have been prepared"
The discovery Of this fraud gave a blow
to mining in New South Wales from
which it took a long time to recover
Chambers Journal.