The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1906-12-07
GREAT FRAUDS
IN AUSTRALIA
Defalcation Amounting To
Two Million Per Annurn
In Gold Fields.
SYSTEM OF STEALING UNEARTH.
ED THAT HAD BEEN IN USE
FOR MANY YEARS-GENERAL
METHOD ADOPTED BY THOSE
ENGAGED IN PRACTICE.
Special 20 The Journal.


Melbourne, Dec. 6.-The history of
gold teens with instances of colossal
frauds which have defied detection
for years. Even the annals of min
ing, however, can boast of few in
stances so striking as that revealed
during the past two or three months
on the Kalgoorlie field in Western
Australia. A special commission was
appointed in July to inquire into the
alleged frauds. 1t has just finished
it's sittings. The evidence points to
defalcations amounting to no less
than s1,500,000 or S2,500,000 per an
mum. Moreover, it is clear that the
system of fraud is not of recent in
eeption; it has been in progress for
many years There is indeed reason
even larger in the old days than they
are now. The Kalgoorlie quartz was
then far richer There was little SUI
pervision, and a man could take his
cribbilly home full of rich speci-
mems with little fear of detection.
Instances are even known of miners
taking 5000 and $500 per week out of
the mines right along. In those
times it was a common thing for n
miner to spend Sunday over his own
private dolly" separating the gold
from the stolen quartz. 1t has now
been proved that similar frauds have
been going ON until the present time.
At the last sitting of the commission
Mr.. Thomas Vaughan, secretary OF
the Chamber of Mines in Kalgoorlie,
estimated that 100000 ounces of gold
were stolen annually. Seeing that
gold is worth nearly twenty dollars
per ounce some idea of the amount
stolen can be arrived at
For long time there have been ru-
mors that the returns from the Kali
goorlie field were not above reproach.
But the matter only came before the
West Australian public in July last
when the police reports were brought
before the legislative assembly OF
the colony There had been called
for in consequence of the allegations
of Mr.. Scantlebury, a well known
mining journalist an investigation of
more than unusual scope At first
the statements of the editor that at
least $4,000 had been stolen from
this district every year appeared too
monstrous to be believed. Directly
the police reports were examined
however, it became clear that frauds
of a most serious description were
being perpetrated, even if they did
not reach the sensational limit sue-
gested by Mr.. Scantlebery. The gen.
eral method adopted has been as fol-
lows: AS rule the leading spirit
calls himself an assayer and carries
on the business of gold treatment
works. He has runner who calls at
various mining camps and collects
amalgam and ore. This is treated by
the assayer who banks it alleging
that it comes from a lease in which
he is interested. The assayer, of
course, keeps the greater part of the
profit, the actual ore thief securing a
merely fractional return from his
partner in crime. Usually the actual
thief is not the miner, but someone
employed upon the treatment plant at
the mine There are however cases
in which this is not so. Instances
have been discovered in which the
stolen ore has been sent no to the
surface in trucks laden with refuse.
After being tipped over a scrap heap
it was picked up by a confederate who
had received a warning to be on the
lookout. Profits can be more quick
ly made by a thief engaged in the
treating rooms of the mine.