ISLAND BLOCK EXTENDED GOLD

Otago Witness, Issue 1933, 25 February 1892, Page 14

ISLAND BLOCK EXTENDED GOLD

COMPANY.

TO TIIK EDITOR

SlM,— ln I'Ppty to Mr J. H. Chapman's letter, the truth of what I said in mine of 2nd and 9th inst. can be ascertained by any shareholder by investigation. The secretary of the company (Mr J. H. Cha])man, now head master of the Government school, Arthur street) having acknowledged that he was voted a salary of L 2 per week, shows, to speak mildly, how midtudiiifj his letter was of the Bth. His legal maxim applied to me, " False in one false in all," is very applicable to himself. He states that L6OOO was owing when the present management took office. For argument, I will assume that to he coircct. Now, roughly speaking, the new management have received about L 6660, made up as follows : — New capital, 4s per share, say, on 18,000 shares, L 3600 ; sale of 1500 forfeited shares and calls paid, L 660 ; gold won, L 2400 ; — which ought to clear off old liabilities, and the L 660 go a long way to work the claim for all the sluicing theie has been done. "What does the company owe at the present time ? If report be true, over L4OOO. The dam, which is up 20ft, is reported to have cost about L 90 0; and Mr J. H. Chapman is said to have reported after his first visit of inspection that the work cost 50 per cent, too much. Mr J. H. Chapman now admits, after having received over L6OOO since January 1891, that the affairs of the company are in danger, for he courageously says "that he will not blench from the helm when the wind blows highest," so I presume that it is now blowing a heavy financial gale; but there is such a thing as having a novice, full of bombastic conceit, wrecking a good ship, whilst the braggart stands at the helm blind as to what he is doing. In the Times of February 1891 can be seen tho followiug :— At a special meeting Mr Rawlins stated " that he believed that under proper management the claim could be made to pay its money back in 12 months. They had a splendid race, a good pipe line, good machinery, and thero was nothing to prevent this company goiug straight into gold if they could only tide over the first difficulty." Times, tJuly 4, Mr J. H, Chapman is reported to have paWU "Three elevators were now at wovk, so

that washing would be continuous. There certainly has been a large amount of gush, self-laudation, and promises, with results nil. The present management have had control of the company's affairs for over a year, and had at their disposal a good plant, plenty of water, and a lot of capital. I again ask, What arc the results? Mr J. H. Chapman's quotation from Mr Christian's letter is misleading—Llo would buy a lot of hammers, lamp chimneys, candles, and a tew sticks of timber. Mr J. H. Chapman leads shareholders to be- i lieve that the present management pay wages regularly. He says in his paragraph 2 : "That the company's workmen should be paid regularly and not kept out of their wages for four, five, and six months at a time." I am informed that quite recently Mr J. 11. Chapman, as secretary, signed' debentures with which a ■workman was paid waijes which have been due him for over 18 months. " False in one, false in all," is again applicable. — I am, &c, February 15. A Shakehoi-dkb. P.S. — I think shareholders will acknowledge that I am somewhat under the mark when I say the company owe over L4OOO. As it is written on the face of the debentures : " This debenture is one of a series of 1000 (L 5 each) issued, or about to be issued, by the company." Are shareholders asleep, and being gulled by ignorant statements and gush.