WAIHI GRAND JUNCTION

Evening Post, Volume LXXXVIII, Issue 141, 11 December 1914, Page 10

WAIHI GRAND JUNCTION

DIRECTORS' FEES RAISED NEW ZEALAND OPPOSITION. (MOH OUR OWN CORRESPONDENT.) LONDON, 29th October. ' Mr. W. T. Holland presided over a, special general meeting of the shareholders of the Waihi Grand Junction Gold Mining Company at Winchester House this morning, when a resolution was submitted to increase the remuneration of the directors. The proposal was to pay the first four directors the sum of £750 between them, instead of £500; aa at present, and, if any additional director should be appointed, then his remuneration should be £150. At present the chairman received £200 per annum ; the proposal is that he shall receive £300. The remaining directors receive £100 each at present, and. their remuneration was proposed to be increased to £150. Mr. Holland regretted that Mr. Rothwell (chairman) was unable to be preeent. He had lecently undergone a rather serious operation, and, although, the result was satisfactory and successful, yet his period of convalescence must be somewhat prolonged. In asking the shareholders to adopt the resolution, Mr. Holland pointed out that the matter was brought up by a shareholder at the last annual meeting, and the increase was moved, seconded, and passed practically unanimously. But their solicitor point«d out that the matter was not in order, because no previous notice had been given. Their chairman promised that a special meeting should be called in order to give legal effect to that resolution, »nd it was in fulfilment, of that promise they were met to-day. The board felt it was a gracious act on the part of the shareholders, and a mark of appreciation for what they had been doing. Steps were taken to send proxies to all the shareholders in England and New Zealand, and this meeting was fixed many weeks ago. INADEQUATE REMUNERATION. He was bound to 6ay that the-direc-tors did not consider the present remuneration altogether adequate. The fees were fixed at the inception of the company when the capital was less than half what it was to-day, and when the responsibilities' were correspondingly less. Sooner of later the board would' have submitted the matter to shareholder* for consideration, and possibly they would have suggested a resolution in somewhat different form from that now before them. They might have proposed a percentage on profits after certain dividends had been paid. This mode was quiteusual with similar companies working in New Zealand. They believed, however, that the present resolution embodied tne wishes of the big majority of shareholder*. THE DIRECTORS' FORESIttHI. With regard to the present position and prospects of the mine, the directors did not consider the company was likely to be adversely affected, except perhaps to a very slight extent^ owing to the war —unless, of course, it should be prolonged for a very long time. Towards the end of July, when it became evident that there might be serious trouble on the Continent, the directors decided to purchase and ship to New Zealand large supplies of cyanide and other materials necessary for the treatment of their ores. These purchases were made for cash and at former rates, and shipped out under existing policies of insurance which covered all war risks. Most of the shipments, including the cyanide, had already reached New Zealand. The Chairman pointed out that if they had had to make those purchases to-day the price would have been very largely increased. They hoped these supplies would last until the war was over, but, should the war be prolonged, the directors would deal with the situation to the best of their ability. Some of their mine staff had joined the New Zealand Expeditionary Force; the board was proud they had done so, and their places would be kept open. The Chairman thought also he could assert that in regard to investments, there would be no depreciation by the end of the current year. It wa3 a matter for congratulation that the board 'had just declared a dividend of Is 6d per share, and if nothing unforeseen should happen, he hoped another similar dividend would be declared for the current year, thus making 15 per cent, in all. The position of the mine was sound and satisfactory. THE PROXIES. On the London register the proxies in favour of the resolution numbered 59,594. and against 330. On the New Zealand register there were 12,963 in favour, and 7578 against. He must also add that 11,000 shares from New Zealand in favour werp informally signed, and so could not be included. This gave a total of valid proxies of 72,557 in favour, and 7908 against. Of individual shareholders there had voted 158 in favour and only 12 against. A NEW ZEALAND PROTEST. The board received yesterday a remarkable letter signed by a considerable number of New Zealand shareholders, and although he felt it was written under a misapprehension, yet it was only right that the letter should be read. The letter was signed by shareholders holding 35,000 shares, and they stated they were entirely opposed to any increase of the directors' honorarium until the dividends had reached a return of 4s per annum. The letter was dated Auckland, September. The Chairman pointed out that last year the dividend was 2s per share, and : before that there would have been an [ increase but for the terrible strike in New Zealand. Only three of the shareholders signing the letter had sent proxies against the resolution. Each New Zealand shareholder had had a proxy which gave plenty of time for a return, so it was perfectly evident to the board that even if the letter had been in legal form it was not intended to be used against the resolution, and, reading between the lines, the letter was an intimation from a considerable number of shareholders that they were not unlike most other shareholders, in that they would like to get the biggest dividend possible at the earliest possible period. If the board were to pinch and squeeze they could possibly make the dividend up to 4s, but this could not be done consistently with sound finance. "DOMINIONISH." Mr. Cutcliffe, who seconded the resolution, said that the New Zealand letter was characteristically "Dominion- • ish." It was a dividend letter and nothing else. In his opinion the directors had exercised the most splendid foresight in providing them with the means for carrying on in the future, and he could not understand any shareholder objectinging to the very 'moderate advance now proposed. Mr. Cameron pointed out that the company had been in existence for eighteen years, and the first dividend was paid only two years ago. Altogether they had received a return of 15 per cent. He considered that the present time was most inopportune for an increase in fees, and the fact that only 158 shareholders had sent in proxies in favour showed that the proposal was not popular. He thought that the directors ought to put this proposed increase on one side and bring it up again when times were better. i Mr. A. Minott said he was a Ise\v

Zealander. He naver knew this was a successful company until he heard that th» directors proposed to have increased remuneration. For many years it only existed on calls. It had been a struggling affair with them in New Zealand, and a great disappointment all these years. He opposed the resolution. The Chairman, in reply pointed out that when, some time back:, new shares were issued at 30s, the company was hard up, and the directors took their full number and paid at once. On a show of hands six shareholders voted for the resolution and five against. As this was not the requisite legal majority a poll was taken, with the following result : —Votes for, 75,432; votes against, 11,506. The Chairman then declared the resolution carried.