BLUE SPUR AND GABRIEL'S GULLY GOLD COMPANY (LIMITED).

Otago Witness, Issue 1901, 10 July 1890, Page 20

BLUE SPUR AND GABRIEL'S GULLY GOLD COMPANY (LIMITED).

An extraordinary meeting of the English shareholders of this company was held in London on May 9, Sir John Stokes presiding, for the purpose of passing the following resolutions :— 1. That the directors be and are hereby authorised to Issuo £5000 of the unissued original capital, referred to in the memorandum of association, by the creation of 5000 shares of £1 each to be called preference shares, and to confer on the holders a fixed cumulative preference dividend at the rate of 20 percent, per annum on the amount for the time being paid upon such shares. 2. That the proceeds of the Issue of such shares shall be paid by the directors to Sir John Stokes and T. J. Hnughton, Esq., as trustees for and on behalf of the subscribers, until the banks' mortgagees of the company's property shall undertake not to take any steps to foreolose under their mortgages for two yean from the date of this resolution, and subject thereto upon suoh undertaking to apply suoh funds aolelyfor the purpose of acquiring machinery and working the cement deposits of the company (administration expenses excluded) as the directors of the company may from time to time request, and otherwise to return suoh proceeds to the subscribers. 3. That the director* of the company shall in the first instance by notice in accordance with the Articles offer suoh preference shares to the members in the proportion of one share for every 20 ordinary shares held by them, and if such offer be not acoepted within 14 days from the date of the notice, that the directors be and they are hereby authorised to dispose of such preference shares, or so many as shall not be accepted by the existing shareholders, in suoh manner as the directors may think most beneficial to the company. In speaking to the proposal the Chairman said the board bad convened the meeting to consider the beat means of turning to account the property of the company in New Zealand, whioh comprised two

classes of auriferous soil. First of all was the great mass of virgin toll called cement, in which deposits of gold ocourred; and, secondly, there were the deposits of tailings run down from the mines above. When they first took over the company's affairs the board were of opinion that, with the capital at their disposal, they could deal with the tailings, which had not proved so remunerative as they were led to expeot, but which had nevertheless been productive of gold, and had paid all their expenses in the oolony, as well as of the interest on the loam for which part of the property was given In mortgage. The great difficulty the board had had to contend with throughout had beeu that the shares of the company were not taken up to the extent they anticipated, and had every right to anticipate, at the time the company was formed. The result had been that they had never had the capital to attack the rioh part of the ground— that was the recent cement in whioh the gold was first found. If the tailings of that ground had been so productive as to oover the interest, the shareholders would easily see that if the ground had been attacked the directors would have had the wherewithal to make the thing a success. The misfortune of the whole thing had been that the capital subscribed was only sufficient to pay for a part of the purchase, and they had therefore had hanging over their heads mortgages of the property. These mortgages were held by two banks in New Zealand— the Colonial Bank and the Batik of New Zealaud. The former were disposed to deal with the company in a manner to enable the latter to work and to live, but the Bank of New Zealand had not been io indulgent, and had been pressing the company's agent in New Zealand for immediate payment. They did not propose to raise suoh a, sum of money as would pay off these mortgages, but the board did think that if they could show the banks they had sufficient capital to attack the cement and put proper machinery on the ground, they would not press for the original oapital, so that the directors would be able to make arrangements with them on favourable terms. Sir Walter Buller, the chairman of the company, was now in New Zealand, and the board believed that if the dlreotors made a reasonable proposition to the banks they would give them time. The directors felt convinced that if they had time they would get the results whioh would make the shares more valuable, and In time pull them through all right. He would like to mention one other thing, and that was that at the last meeting they had had to dismiss Messrs Brown and Mackintosh, who in the first Instance were not working the mine properly. These men certainly did not keep them informed of what was being done ; they did not give them any reasons for the reports not coming in ; but the board had since placed at the mines a gentleman whom they all had confidencein. Mr Howard Jackson bad certainly sent clear and full reports every month of what was going on ; and he (Mr Jackson) felt oonfident the company had a good property if they only had money to work it.— (Hear, hear.) After a brief discussion, the proposals were carried rum. dit.

At the City Police Court on Friday last, John Allan was charged with unlawfully firing a gun at Mosgiel on Wednesday night.— Henry Nott, of the Mosgiel Hotel, said about 11 o'olook on Wednesday night he saw accused just outside the hotel, on the footpath. Shortly afterwards he heard a gun discharged. He went upstairs in order to look out oi the window to see who hod fired the gun, when he saw accused fire the gun again while standing in the middle of the road. He saw the man in the morning, and then thought he was not in hiß right mind. -The Police informed the bench that Allan had been in Seaoliff Asylum once before.— Remanded for medical examination.

—People cannot be easily suited when they have made up their minds to be displeased.