PAPAROA COAL COMPANY.

Dominion, Volume 5, Issue 1429, 2 May 1912, Page 7

PAPAROA COAL COMPANY.

IMPOIITAXI , MUKTJXO OF SIIAHKHOLIJEItS. An iiiiporlniit'ineetini; of shureholderg of tiio I'aiiiiro.i Coal Company was held ttt ihircoiirfs liooni;-. Lainuloii Quay, ycter- ; day iiioruitiff, to considrr n proposal affwliiii; the llnaiK'ial of the company, •.illicit it, not at ],rt'?cnt, wurkine tlio deposits cm its property at Uraymomli. Jlr. .1. i , . Jliisttvll, ehairiiian of directors, wilo prcfided. .-aid tlial Die mcetii!jf was called to i-onsidiT and pun» a resolution oll'criiii; ccr;am cond t:<,ti= to it.- (iclicnturc-iioldor.s with a view ut indueiiiir them to eoioent to enipowtr ili-j couiiiuny ty rai.-e lurther capital. 'The condition? to he offered to deben-ture-holder." saiil ilr. llsixwell, "ure that they should consent to exchaiiKs; their present cijheiiHii-M for e.iuivaittit par value or new debentures, benriiij; cumuiative interest payuhie froui proiits, together wttli I'ut-tiiin bonus charos; and thai they should agree to £54,0C0 new iirst dcbcntui'cs beiiiß created, of whicli £50,025 shall be oilercii in;- ;iiUM'iintion, a minimum amount of £35,050 of these to bo applied for before (Toiiis to allotment, otherwise their assent to be null and void. The reason for this course is that the board, some 55 months since, liaviiiß found that more capital was needed, tried at iir>t to raise it by preference shnres., but without success; and, subfcciucutly, an atteintit was nmde to rni.-e it by debentures in London; but no proposal to raise fresh capital there to pay ult exis-tiiiß ohligatiaiis or to meet interest thereon wa* '.'iitcrtaincd, and under the then conditioiii of labour in (ireat Krituin, nnd the niurenient amoiiK the coaliJtincrs, there tra; no iirospe.-t of even prior lien debentures beiiiß unt'i.'rwrittcn. The best course, in the, interests of all concerned, win to try to raise, extra capital in the Dominion, and the board invited the d.viiciituro-liolik'rs to ns.-.-_>nt in a reconstruction scheme by circular of January £2 last, which was not agreed to. The board has therefore called shareholders together to offer more liberal eonr-'ssioiis to debenture-holders., which havu been sot out in the circular of April 10, and as circumstances do not admit of delay, they have invited ibbenture-holders to Rive their assent in aniiVipatiuii of the shareholders pass-ing the re.-oiutioii, which .should be done without iinieiidinent. A ronsidsri'.blo number of dcbi-nture-liolcTers, rcnrosentinij £27,175. have already sigiiitied their ostein. A ineciini; to ronflnn the resolution, as rc(|uii"jcl bv ptsitus. will be called for Jlp.y 16. if passed l-y this meet'iii!.'. It is essential to refer to the causes which hfl.v« led to the unforeseen delay nnd to tIK exceptional incidents attondine the company's operations, which have mainly so largely increased the cost to date, because although explanations h?,ve from time to time been given, various t'UKßestions mid crilicisais offered by shareholders to remedy the situation, do not I apply or could not have nllcvialptl it. The company, in 1906, started on the assumption that the whole Government branch of three and a. ouarter mites, the principal work on which was already completed and opened, wnuiil i>o completed early, and it was promised I hat it should be opened in July. 1907. This was nor dons until August. 1910. The company's works werj in a inount:iiii»i|!j, denrely-biishcd cqunlry, unopened by road, nnd its railway- exk'iuion works iind inclines iru! io ho corrieil to completion under enormous disadvantac-s. 'J he Government miiiii.tr l:a-o pr-.ividsd fov the company coniseitinjr with the flovcniment. railway terminus by :i trannv.'tv. 'Die Oovernnipnt, hoivuvcr, iusi.-i-d on this con- '. ncc'iiiiF lins beinpr coiiftruct:-d on t!•,-.• most costly oasis, similar to tins Rimist-il:<i Fell itnrlino. and the c.inpnny had u:> practical alternative but to comply. The compauv hnd to accomplish the construction work and the development and to commence piittimr dowii coal in 1910. befoi'3 the flovcrnment railway was open, nnd it was Kicatly hampered raid put to proal expen.se through the strike- which l»jk place, mainly owing to tha prevalent difflcuhics wliicii h.Qil in -Aii-tr.ili<l. and X;n/.calami in connection with the roal-niiniiic industry. At the same time, the development of fh» mine throuch the broken country was n work of preatar magnitude than liny of tin- inininc iiiith'.>rili;<i who lmd reported anticipated; mi that by the end of 1910 tiic- compn-iy anticipated being in difficulties! unless more capital win raised. This then led to the att:inpt to raise SHi.OOO by, prcfeim-ico shares curly in 1911. Jad tins succeeded, the company would have, lieen in full working swiiiß by this liiuc, nnd probably able to pay iis debenture interest from revenue. Ir"this resolution is passed, and the assent of the fio-benture-holciors s*. obtained, it will be pr 0 . poss-d at a Inter date to ask Hi.? sharelii'de-' to make provision for uersoiis lipidniif £.100 of new first dobi'iiiuivs to be eligible as directors. Tk.i.i is doiralilo, as it is odvisable l<! jret new u'l'inbcrs on the b'.iard, whose experience and business connections will lie of value, to the companv. The directors arc of opinion tint the interest-, of all conivriied wi'.l be 'm-{ served by both shareholder.* and di-beiiwre-h'jld- | ors acting lOßclher, and iiiikiiiir a joint i effort to raise Mic. necessary funds."

The chairman ihon formally iiiovpil: 'That tiic shareholders consider and if tliontrlit fit to approve of, ihe si'lieine for rnisins further c.initnl for the purposes of tlio comnajiy oiiMincd in the I'ireiihr to shareholders," This was seconded by Sir. J. i!. lilair, and passed unanimously. On the motion of the chairman. n i t:oiitl?d by J[r. ]I. F. Nee*, it was resolved:— "Thai the capital of the company he reduced from £250.000 divided info 13,415 preference shares of one iioimd (£1) ?ach and 23G.585 ordinary share? of one pound l£l) each to £78,759 divided into 13,415 preferpure shares of one pound (£1) each anil nn7fg 0 -,ii lulrv shares of fsu rtiilliiiss HO?.) each, and thai snrh reiliiiitinii be effected by cancclliu!- eapiti! which -has liecn lost or i- - mirmirfsjnted i." , nv-iilibli-■■iFfpls to the extent of ten s-hillinßP UCs.l per shore upon cicji o( ill* 130,758 ordinary share? in the capita! of the eompinv which have been issti'id and are now fully p'jld tin, and !>v vcdnciiie the nomiinl an'O'.mt of siich 130.768 share? from one pound PA) to ten EliiNiiißS (It's.) rer shnr". and by riuiceilintr tl'? whole of thG 30,792 preference and 75.025 ordimry shnrcs of the company which hove not been lalten u« or agreed to be taUcn up by o.ny person."