THE BLUE SPUR MINES.

Evening Star, Issue 7875, 6 April 1889, Page 3

THE BLUE SPUR MINES.

.SIR KOIiKKT STOUT AND THE CLAIMOWNEIW.

As stated by us in our last issue, the time for the final settlement between the original owners of the Blue Spur Mines and the Consolidated Gold Company expired on Wednesday and Thursday. The Gabriels Gully Tailings Company was, however, an exception to this arrangement. This latter company, according to the terms of mortgage, has stipulated to allow a period of twenty-one days to elapse from the actual date on which the payment falls due before possession can be resumed. As anticipated, Sir Robert Stout (the Consolidated Gold Company's solicitor in New Zealand) and Mr J. C. Brown (chairman of the local board of directors) attended at the Commercial Hotel on Thursday to meet the representatives of the various properties. Those who did attend were informed by Sir Robert Stout that the money necessary to complete the purchase had not arrived from London, and, under such circumstances, he had no alternative but to ask on extension of time until the end of the present month. At the same time ha expected that the London Board would, before the expiration of the time asked for. remit the necessary money either to pay a further instalment, or, perhaps, completo the purchase outright. The Otago Company, whose claim has a frontage on Gabriels Gully, sent no representative to meet Sir Robert Stout, _ and took no part in any of the proceedings. Sir Robert, wo understand, expressed his displeasure at what he deemed an act of discourtesy; but the action of the Otago Com pany is capable of explanation, and, no doubt, they are fully satisfied of the propriety of the courso they thought fit to follow. . . . During the course of the

afternoon, however, one of the local directors of the Consolidated Company was served with a written notice informing him that the Otago Company had taken advantage of the alternative contained in the memorandum of mortgage between the company and the Consolidated Company. The document stated that, in default of payment of the balance of the purchase money on the 3rd inat., tho Otago Company could resume possession of their property, and had already done so ; and further warned the Consolidated Company not to interfere in any way with their property. This, of course, threw a flood of light on the absence of the Otago Company from the interview, and finally disposed of any further speculation on the matter.

The Waipori Water Race Company met last evening, and discussed the proposal submitted by Sir Robert Stout. The company decided that consideration of the proposal bo deferred for the present, unless some unforeseen emergency should arise. We are informed that one or two of the claim owners are favorable to an extension of time, in the hope that the British public may yet respond to the last appeal of the Consolidated Company. But it must be remarked that, now that a disruption has commenced, those companies that received scrip on the entire properties cannot possibly, with aDy regard for their own interests, agree to any further extension of time ; unless, indeed, they get an exchange for their scrip at the fancy prices prevailing in the infancy of the Consolidated Company, which at present does not seem likely. Tho conference, we may remark, which was presided over by Sir Robert Stout throughout tho day, was held with closed doors.every precaution being taken to prevent the result being made public. It is hard to divine the cause for all this mystery. The affairs of the Consolidated Company are pretty well known now, and it can hardly mend matters to resort to this most unusual method of procedure. Sir Robert Stout returned to town by the Thursday afternoon's train, and expects to return towards the end of the month either with the whole or part of the money. A SERIOUS OUTLOOK. The following cablegram from London appeared in the daily papers on Thursday ._" It i 3 rumored that Sir Robert Stout has been instructed to commence an action against Mr J. C. Brown, agent and vendorof the Blue Spur mines, by the London directors of the Blue Spur and Gabriels Gully Consolidated Company. He has also been instructed, if possible, to rescind the contract." The contents of the above cablegram circulated very rapidly on Thursday afternoon, and caused something like a sensation in the district. Great anxiety was manifested by numerous interested parties as to Sir Robert Stout's opinion on tho subject. Those who approached Sir Robert in reference thereto were given to understand by him that he knew nothing whatever about it—nothing more, indeed, than his interrogators knew of it. Sir Robert, however, informed some of the claim owners that if anything so unpleasant did occur, the original owners and not Mr J. C. Brown would most likely be the parties proceeded againt, Mr Brown being, he stated, merely the agent accredited with the disposal of the properties. This, it may be said, was not regarded in a very serious light by those favored with the communication. . . . The outcome just now is somewhat problematical; but it is almost certain an effort will be made to rescind the contract, as the cable states. There is, at the same time, room to doubt the success of such an undertaking. It would be the beginning of a costly and an endless litigation. Tho only hope we see for the company, in the event of their inability to complete the contract, lies in liquidation. Of course it is premature as yet to speak of such an unpleasant alternative, as Sir Robert Stout is sanguine of getting either the whole or part of the money out before the end of the month. It is certain, however, that the glory of the company is considerably dimmed; and that its affairs are not quite in tho condition that the Home shareholders looked for.—' Tuapeka Times.'