TO SAVE THE MINE.

Auckland Star, Volume LIX, Issue 269, 13 November 1928, Page 4

TO SAVE THE MINE.

GREAT FIGHT BY DIRECTORS.

MORE CAPITAL WANTED.

FOR MOANATAIARI

With insistent creditors on the one hand, reluctant shareholders on the other, and halfway between an unsympathetic Government, the directors of Moanataiari-Caledonia-Kuranui Consolidated Gold Mining Co. had a hard problem to solve at a special meeting held yesterday afternoon. The meeting was held in the Chamber of Commerce rooms, between thirty and forty being present, the chairman of directors, Mr. Peter Watson, presiding.

The notice calling the meeting stated that the business for consideration was:—(l) To consider the present financial position of the company, and to consider and adopt any practical means of improving the same by an increase in capital or otherwise. Or alternatively (2) To coneider, and if thought fit, to pass as an extraordinary resolution the following: "That the company be wound up voluntarily under the provision of the Companies Act, 1908."

The chairman outlined the facts that led up to the present situation. He said the company had still £6700 to call up, but could not carry on with the calls they , were able to make. He detailed the circumstances under which the company had become owners of the battery at a cost of £6000, which had become a millstone round their necks. They had asked the Government to take it over and have it used for the general benefit of the mining industry at the Thames, but the Prime Minister, after giving them encouragement for a time, had ultimately turned them down. There was apparently no hope of the Government giving the industry any assistance.

Effect of Liquidation. The effect of liquidation was explained by Mr. W. M. Gimsou, who said the liquidator could call up 3/ on every contributing share. The directors had come to the conclusion there were only two courses open, • going into liquidation or issuing further shares. There were at present 45,170 contributing shares, n<l it was proposed to issue the same m. r of 5/ shares, 9d to be paid on application and 9d on allotment, with a guarantee that] there would be no further call until all the uncalled capital of the previous issue had been called up. The holders of 39,750 paid-up shares had no liability and could look for no dividend. If the company was re-established those shares would become marketable. The company owed £3900 and the call of 1/6 as suggested would leave a surplus of £2500. They had, in his opinion, been very badly treated by the Government. Borough Council's Debt. Mr. Gimson said the company owed the Thames Borough Council about £400 and it had taken the course of issuing a distress warrant. This was difficult to understand, and he could only connect it with the minority movement in Thames, which desired to have the School of Mines turned into a public crushing plant. This made it quite obvious that they must either liquidate or decide to raise fresh capital.

A general discussion took place in which several shareholders objected to precipitate action. They claimed that if consideration of the resolutions were postponed for a short period it might yet be possible either to obtain assistance from the Government or to make a compromise with the more insistent creditors. To all of these the chairman, backed up by Mr. Gimson, gave the one reply, namely, that the matter would not admit of another day's postponement. For months, it appeared, the directors had struggled to stave off threatened proceedings, and it was not possible to continue these efforts. The Thames Council had issued a distress against the battery, and the company's solicitor, Mr. A. C. Wilkin, assured the meeting that this was probably a preliminary to forcing the company into liquidation. Mr. Watson emphatically assured shareholders that only the passing of one of the two resolutions could give them a single day's extension of credit. Ultimately the following resolution was carried, there being only one dissentient: — "That the capital of the company be increased by the creation of 84,920 shares of 5/ each. These new shares to be paid for as follows: 9d per share on application and a further sum of 9d on allotment, there being no further calls on these shares until the whole of the uncalled capital on the previous issue has been called up. That no allotment will be made unless and until 32,250 shares have been applied for." The chairman stated that the minimum they could carry on with was 32,000 shares. Directors of the company and others closely associated with them had agreed to take up 12,000 shares. After the meeting applications for another 1500 were arranged for.