THE BLUE SPUR COMPANY.

New Zealand Herald, Volume XXVI, Issue 9423, 22 July 1889, Page 6

THE BLUE SPUR COMPANY.

THE LOCAL DIRECTORS REMOVED. [from our own correspondent.] London, June 15. Ax extraordinary general meeting of the Blue Spur and Gabriel Gully Consolidated Gold Company (Limited) was held at the City Terminus Hotel, on the 4th instant, to cany two resolutions—one authorising the directors to abandon the option of the purchase of the "Blue Duck, " Fidelity," " North of Ireland," and " Morrison's-" companies or claims, and a second removing Mr. J. C. Brown and Mr. David Melntosh from their respective positions as local directors of the company. Sir Walter Buller, who was in the chair." explained that the abandonment of the operations was in accordance with the ail vice of their inspector, Mr. Howard Jackson. This gentleman expressed the opinion that the value of the amalgamated companies would in no way depreciate if these operations were abandoned, as none of them could be worked without the water of the Amalgamated Company, and no effort should be unmade to secure all the water which can possibly be brought' on to the works. With regard to the second resolution, he said that the London Board were entirely out of harmony with the local Board : the latter, so far from being a. help, were obstructing them in every way. Ihe London Board declined to be held responsible for the management and proper control of the mine unless it had complete control of all the arrangements. At the instance of some very large shareholders the Board some months ago appointed an inspector for the simple reason that for twelve months they could get no information as to the suite of the mine. Letters were left unanswered and telegrams ignored. They appointed an inspector, a gentleman known to himself and one in whom the Board had full confidence, with instructions to visit the mines and inspect the works at all times, and to report to the Board in London by letter weekly and by cable monthly, and by this means to let them know -what was going on. The managing director seemed very much to object to such an appointment, and was entirely at loggerheads with the inspector. The latter could not get access to the books, and appeared to have difficulty in getting access to the mines; and lie was not allowed funds to send cables as instructed by the London office. He did send two or three cables, but as he had to pay for them out of his own pocket it was not surprising that he soon discontinued doing so. Meanwhile the London Board were not getting the required information. If the meeting elected to retain Mr. Brown ami Mr. Mclntosh the directors on the London Board would retire, for they could not be responsible for the control of the mines if they had no power, and if they were saddled with local colleagues with whom they were not in harmony. Sir John Stokes and Mr. Gisborne endorsed what. Sir Walter Buller had said as to the London Board being kept in ignorance of the state of affairs at the mine, and as to the impossibility of the London directors remaining on the Board unless they had complete control. Some doubt was expressed as to whether the company had power to remove Mr. Brown, lie having an agreement with the promoters securing him in the position of managing director for three vears at a fixed salary ; but Sir Walter Buller thought that Mr. Brown was removable under clause 88 of the articles of association of the company. The company's solicitors had advised them to this effect. It would not do to grasp the nettle in a half-hearted way. Either they must assert themselves or Mr. Brown would. His own view was that Mr. Brown would fight, but he left the meeting to judge whether they had much to fear from such a plaintiff. There were grounds of misconduct, which might also be alleged, but into which he must decline to go. He would rather remove Mr. Brown without alleging any such grounds. The resolutions were carried, but the chairman said they would have to be confirmed at a subsequent meeting. As to the future, Sir Walter announced that they had appointed an inspector in whom they had absolute confidence. That appointment was, he understood, distasteful to Sir. Brown, and he held in a lesser degree to his colleague. Their solicitor, Sir Robert Stout, had every confidence in the man they had chosen, and they proposed to appoint him general manager," assuming that the resolutions which had just been passed were confirmed at a meeting which would take place in about three weeks. On the ISth instant Mr. Howard Jackson would receive the power of attorney, authorising him to assume supremo control of the mines. That power revoked an existing power in favour of Mr. Brown and Sir Robert Stout. They would have been glad to have joined Sir Robert Stout, but there was not time for reference. The step just taken would not affect their relationship with the bank. Sir Robert Stout had made a most satisfactory arrangement, and they were in a much setter position than they had been before.