MINING.

Otago Daily Times, Issue 9390, 1 April 1892, Page 2

MINING.

—-»— MOUNT HIGHLAY QUARTZ MINING COMPANY. A special meeting of shareholders in the Mount Highlay Quartz Mining Company was held at the Criterion Hotel yesterday afternoon. Mr George Esther occupied the chair, and there were also present: The Hon. AY. J. M. Larnach, C.M.G., Messrs V. Pyke, James Liston, George Schluter, A. G. Fenwick, AY. H. Haydon, J. Davidson, and F. Humffray, representing some 4350 shares. The Chairman said the object of the meeting was to consider what was the best plan to pursue in order to upset the sale of the Mount Highlay property, which they all firmly believed was an illegal sale. He had spoken to a great many shareholders, and one and all concurred in that view, and one and all expressed their readiness to subscribe - sufficient sum, pro rata according to the number of shares they held, to upset the sale. It was now for the meeting to say whether the necessary steps to attain this end should at once be taken. He felt very strongly in the matter. Some time ago Mr Nunn, who bought the property, spoke to him and asked him if he would make one to join with others and buy the property. He replied that he would not, for he thought that the property should be sold by tender or public auction. Mr Larnach : That was before the sale ? The Chairman replied in the affirmative, and went on to say that he had received a letter from Mr H. T. Arrow', of Hawke's Bay, in reference to the matter before the meeting. This gentleman had bought 1000 shares, and had paid up every penny on them, so that naturally he felt very sore. The letter ran thus :—" In Otago AVitness just to hand, of 17th inst., I see a report of a meeting about the sale of the Mount Highlay property for the ridiculous sum of L4oo—a most shameful affair. I will with pleasure hand you my proxy (1000 shares) to upset this rascally business. This Mitchell, I think, is the one that put the company in liquidation for a mere trifle. Is there no chance of testing the cost of liquidation and going on working? Now is the best time of year, for plenty of water is coming on. Do you think the claim is worth it ? If the claim, &c. is sold I hope it will be fairly put up to auction, so as to do the best for shareholders." Mr Pyke said that he had the last balance sheet of the company in his hand. It was dated 31st October 1891, and was signed by Mr Hjorring, manager. In it the mining plant and materials were set down at L3OOO. This was only in October last, so that it was very strange it had now fallen to the value of L4OO. Mr Larxach : That is apart from the other portion of the works? Mr Pyke said that that was so. He had got a letter, dated December 9,1891, from Mr Hjorring, which he would read to the meeting :— ~,. „ „ "Naseby, December 9. Yours of November 28 to hand. I would have replied earlier. The following will explain matters :—The chairman of directors of the above company (Mr James Mitchell) is one of the guarantors to the Bank of New South AVales for the company's overdraft, which is now L 144 although there is a further liability of LSOO which the bank consider included in the guarantee Previous, the shareholders were advised the guarantor wished to be relieved. They have not moved m the matter, and Mr J. Mitchell has lodged notice with the judge of the Supreme Court for liquidation to be heard on December 7 I have not heard result yet. My own opinion is that the company ought not to be put in that position, which means ruination to the shareholders property. Although they may have to pay up their shares to pay off their debts, they would still have their property to the good, 4Biieh, with proper power—either water or. steam —would be valuable. Liquidation ought to be stopped or stayed. I wrote to Mr Esther, as legal manager, on November .10 re the matter, but he did not reply to me in any way. (1 "N. P. Hjorring. t rv7,F -S- ~T¥ company's liabilities are about LWU, against which the company have about 1300 good shareholders, who have paid up L 36 in calls leaving unpaid calls to about L 1030." Mr Pyke continued to add that Mr Nunn had been appointed mine manager, but he knew nothing about the business. Jlr Larnach : In order to test the feeling of the meeting I beg to move-" That those shareholders present be requested to subscribe their names agreeing to pay pro rata the expense of taking proceedings at the Supreme Court to upset the sale " 1 am a large shareholder myself, possessing 500 shares, ( and if that resolution is carried, I'll move then— lhat it be an instruction to the company s counsel, Mr Solomon, to move the court in the matter at once." Mr Pi-ke : I second that. Mr Larnach : So strongly do I feel in the matter—not that I expect very great satisfaction, put I believe the sale can be upset, that there has been unfair play—that if I stand alone I will bear all the expense myself.—(Hear, hear.) Mr Pyke : You shall not stand alone. . Mr Larnach .-1 feel that the mining industry is suffering an immensity of harm by such dealings as these, and the fact is that mining companies are looked upon with disfavour in this country and in Dunedin, simply because a few people act unfairly. It behoves people in the community therefore to take steps to put this down. The mining industry should be one1 of the greatest industries of the colony, and prave a source of boundless riches if people would only act;fairly. Mr Pyke agreed with Mr Larnach's remarks in toto. In fact in this case he was not quite sure whether they could not institute criminal proceedings. However they were content to go to th* other side of the court, and he believed they could get the sale upset. The act said that the liquidator was permitted to sell by tender or private contract. Mr Larnach : The private contract must be considered a prudent sale. Mr Pyke said such was so, and no one could say that the present sale was a prudent oue. A great deal had been said in the papers aud elsewhere about the frauds of company promoters, but he did not think they equalled the frauds of company smashers.—(Laughter.) The motion proposed by Mr Larnach was then ' put to the meeting, and declared by the Chairman to be carried unanimously. Those present then signed the document referred ' to iv the motion, after which the meeting was closed. <