ROSS GOLDFIELDS RECONSTRUCTED.

Dominion, Volume 4, Issue 1129, 17 May 1911, Page 8

ROSS GOLDFIELDS RECONSTRUCTED.

SHAREHOLDERS MEET. THE DIRECTORS' PROPOSALS. A general meeting of shareholders of tho Ross Goldlields Reconstructed, Limited, was held yesterday at tho Chamber of Commerce, Dr. C. P. Knight (chairman of directors) presiding. The other directors (Messrs. Walter Nathan, A. Ford, and W. llardio, of Ciiristchurcb) wero also present. The report of the directors, which was circulated a. few days ago, was as follows :—

In his memorandum to shareholders, the liquidator of Boss Goldftelds, Limited, embodied the report of Messrs. Moyo and Dinnie recommending that the present stationary pumps be placed in a water-tight chamber at tho eighth level. This _ recommendation your directors were advised was not feasible, and after all the reports bearing on the pumps is tho possession of tho old company had been carefully considered by . a committee of tho board, it was deemed, essential to get the host advice'obtainable, and your board engaged Messrs. Frederick Black, A.M.. Inst. E.E., and \V. P. Gauvain, A.M., Inst, C.E., to report on the power plant, pumps, and mining machinery, and embody in their reports their recommendations for future working. Their reports show that to utilise tho present plant to drive tho existing pumps and machinery (1) that it will cost .CJSIO to put the generating station, pipe lines, transmission line, the Ross sub-station, and mine elcctrk-a! equipment in the minimum state of working efficiency. (2) that an auxiliary stand-by plant to work in coiiiunctian with tho present nlnnt will need to be erected at the mine, the estimated cost of tho latter _ being .E6B',C, so that the board is faced with an immediate expenditure of £11.350. In addition to this tho expenditure for mine extension (according ' to Messrs.. Moyo and Dinnie's report) is £57E6. Having in viow the tact ttrt tho adoption of the above scheme involves the retention of tho "reseat stationary pumps, and that the mine will be flooded for at least fourteen days in the event of these pumps breaking down, and tho fact of the auxiliary plant bavinl' to bo kept under steam all the time, vour board decided to ask Mr. Gauvain for his recommendations should the hydroelectric scheme he otherwi?i utilised. Ifis scheme is to utilise a steam engine direct coupled to the pump rods of a bucket pump. His estimate . for this scheme (which allows for two boilers, "n-h capable pf carrying the load) is ,?16 6C6. This scheme of all those nlaced fefi™ it, is the one which the board recommends, by reason of its reliability and its efficiencyfactors which the board deems of paramount importance in working a deep level gold mine. The annua! working costs arc approximately the same as would be entailed by the electric scheme. Your board considers it would be advisable to sell the existing power and plant, and, should they be successful in doing so at anything like Mr. Black's estimate of its value, shareholders would have the new

power provided free of cost, and would probably not be called upon to contribute more than a shilling or two per share ot additional capital I'nlesa the hydroelectric plant can bo sold, then (in the board's opinion) the available capital to be called up is inadcouato to test Itoss Flat. J . Tho chairman, in moving tho adoption of the report, explained that the directors had decided to delay holding the meeting so as to give the shareholders the most complete information. A letter had appeared from Mr. Falkenbach, who was at one; time in charge of the mine, but the directors did not propose to answer that. They held, however, 24CC proxies from as far south as Jlokitilta out of a possible 3000. So that no real grievance existed on that Ecorc. Delay had taken place, too, owing to the mail being two days late. The "bulk of the proxies of West Coast shareholders were in time, and were in favour of the proposals. Boss Goldlields was a. good investment, for capital, but the directors did not wish to lead the shareholders into the position of having to nay 7s. 6rt. in calls, and then to find that there was insufficient capital to work the mine. The directors had obtained the best expert opinion availab'e in New Zealand, and their recommendations were based on that. _ Mr. Ford who, in company with Mr. liardie, another director, visited the mine, and inspected the company's property, transmission line, power-house, and plant at Kauieri Falls, and also the water intake at Lake Kauieri, stated that they were pleased to find such excellent plant at the power-house, and also to find it in good order. Hut, as there was such an excess of power over and above the requirements' for the mine, the great risk ran in maintaining eight miles of waterrace, tunnelling, and lluming, and 23 miles of transmission line to Boss. They formed the opinion that the company's interests would be best served if tho hydro-electric scheme could be disposed of. and a nioro serviceable plant installed at tho mino itself. Finally, after very careful consideration, the directors decided unon one of the schemes submitted by Mr. Gauvain. io inst.nl tho necessary machinery, and carry out the developments asked for to improve tho mine, which, as shown in tho report, will absorb £16,606. In addition to this there would be engineer- and other charges of pay, of, say, £ICCO, making a total of £17,606. Tf tho mine proved good, about another £4000 - would -be. required for sinking ana timbering another shaft, and its winding and general equipment. Tho total capital required to do this would he about £21,260. The capital available, if the present issue of shares was called up, was £19,250, or just about sufficient to prove the mine, and if satisfactory there should bo no difficulty in raising ■ the extra money for new shaft, etc., etc. On the other hand, if the shareholders decided to dispose of their present plant, and wore successful in effecting a satisfactory sale, the further calls on shareholders should not be very heavy. Mr. Walter Nathan, another director who also addressed the mooting, pointed out the advisability of putting tho company on a strong financial basis, so as to be independent of bank accommodation, lie suggested that authority should be given to raise 3s. a share more. Ho believed that there were good prospects for the F.o'3 mine. .... . Mr. S. Harcourt, who attended the mectins rather late, asked if the present plant could not do tho work required. Tho chairman explained that there was a. report on the subject which .was available to any shareholder, but tho report was of a confidential nature, and could not be made public. The directors had gone very carefully into the matter, and the recommendations which they hart made were final so far as they were concerned. In further reply to Mr Harcourt, the chairman stated that tho were not prcnared to accept the. responsibility of working the mino -with the present pl-int. , ~ In reply to another shareholder, the chairman mentioned that there was a fair chance of the plant being sold to some comnany which possessed an auxiliary plant. ... After further discussion the report was adopted. Mr. Davis, of Christchurch. whose nomination for a seat on the board had been received after the renort was printed, withdrew from tho contest., explaining that he "-as onposed to the renort, and. since it vn ndinted. ho bad m desire to become a dirert"!', nnd cause discord. The old directors we re-elected., and Mr. Bickncll was appointed auditor.