THE Grey River Argus. PUBLISHED DAILY. THURSDAY, MARCH 17. 1881.

Grey River Argus, Volume XXIII, Issue 3916, 17 March 1881, Page 2

THE Grey River Argus. PUBLISHED DAILY. THURSDAY, MARCH 17. 1881.

i We notice that the Inangahua Herald has ; made a very mild attempt to justify the action of the Directors in selling the third of the property of the Homeward Bound Company privately at a nominal figure, and complaining of the manner in which the meeting of shareholders, held ion the 28th February, was reported. In ■ the first place they state the shares of a number of the Greymouth shareholders were forfeited at various times. By this, we suppose, they mean that the calls were not paid within three week after being made. As far as we can ascertain the shares spoken,, of were never advertised for sale, which shows plainly that the calls must have been paid within a reasonable time or that the Directiqrs were afraid to forfeit these shares^ fearingthey might commit an illegal act. We have not the Company's books before us, but we do cot hesitate to state that the calls otthe Greymputh- shareholders were paid as regularly as any other shareholders in the Company. So far as we are aware, none of the Greymouth shareholders ever refused to pay a call when the same was demanded. Mr Trennery Btated at the meeting that he purchased 250 shares from Mr Gorrie, after the sale to that gentleman, at 9d. The shares were given to him as a great favor-; at that price, and also in consideration of his insisting upon his right to have that number, Mr Gorrie asking'him Is6dfpr them. It seems to us very strange that-though at the time of purchase the shares were only worth 63, that immediately after they rose to three times that amount. When the statement was made at the meeting of the 28th February, that two of the Directors were not entitled to vote, owing to their calls being overdue at .-the time of the meeting of shareholders held on the 21st December—when the resolution was passed authorising the directors to deal with the forfeited shares — the Chairman certainly stated that -there was. an amount due to these Directors by the Company for directors' fees and work done, at the same time he; was told that his explanation was not satisfactory, and there can be no doubt that they had' no tight to take any part in the proceedings. We consider that if the Herald-, in the first instance had given a true report of the meeting held on the 21st December, instead of stating, as it did in the isßue of the 23rd December, that the shares were to be divided pro rata among the shareholders, all disputes and difficulties would have been avoided, aa the shareholders at a distance, would have taken good- care that their property was not sacrificed. As they balieved the report was correct, they did. not .think it necessary to take any further steps in the matter. It is certainly very remarkable where the Herald got its information, which ' has proved- "so unsatisfactory to foreign shareholders, and we think some explanation is required. One of the most extraordinary circumstances in connection with the matter is that the manager of the Company, and the Directors, with the exception of the chairman, declared positively that they had never seen the report ; the chairman stating that. he did not see it until three weeks after it was published, and did. not think it worth his while contradicting it. The Herald also affirms that no inquiries for shares were made at Reefton. We are, however, in a position to say that the Herald is mistaken in making thia statement, aa inquiries were made in November. From what we can learn the majority of the Greymouth proxieß, given for the meeting of the 21at December , last, were sent with instructions to vote 1 " That the forfeited Bharea be distributed pro rata amongst the shareholders or sold , by public auction." Another matter that I requires explanation is — How did I Gorrie gain the information that the 5250 shares were for sale, seeing that he was not a shareholder in the Company at the time 1 All that could be gathered at the meeting on the 28th February was that Gorrie met the Chairman at the door of the office and gave his application to him.