Island Block Extended Gold Mining: Company (Limited).

Otago Witness, Issue 2004, 21 July 1892, Page 19

Island Block Extended Gold Mining: Company (Limited).

An extraordinary general meeting of the Island Block Extended Gold Mining Company was held at the Criterion Hotel on Monday evening. Mr Julius Hyman (chairman of directors) occupied the chair, aud there were about 30 gentlemen present, including the following directors ; — Messrs Peter M'Ardle, John Murdoch, James Liston, Peter Shiels, and J. H, Chapman (acting secretary). The Secretary read the notice calling the meeting, aud also a resolution passed at the last annual general meeting, which was to the effect that the shareholders should subscribe "sufficient money to relieve the directors of their present liability." The Chairman said that in accordance with that resolution certificates were issued, but only shareholders representing some 31H2 shares, apart from the directors, had returned the certificates. Under the-.e circumstances the directors did not feel justified in taking upon themselves the liabilities any longer, and accordingly called that meeting in order to see what could be done. Mr Shiels (Lawrence) said that several of the shareholders in his district would have signed the certificates but that the secretary notified that, comparatively speaking, only a few of the circulars had boon received, and that it was xiseless, therefore, to collect them in his district. He believed that, with the exception of one, all the shareholders in his district wore willing to sign the certificates. — (Hear, hear.) Mr Sparrow : Perhaps the chairman has a proposition to make ? The Chairman replied that the directors had no proposition to make. The present position was that tho directors hod been made responsible for L2OOO, and they did not feel justified in being so any longor. If tho appeal' of the directors were not responded to, it would simply mean going into liquidation. It was not for the want of gold, for the returns were good and regular. Mr Chapman said that at the time tbe present directors took, office a statement was submitted to the shareholders showing the liabilities to be L 4745. Additional accounts, however, were subsequently rendered, and these brought up the liabilities to LCl6B.— (Expressions of surprise.) Previous to this they had reckoned to raise L4OOO, and they expected this amount to very nearly cover their liabilities. Instead, however, of getting L4OOO they only got L 3200. Besides meeting the liabilities referred to, absolutely necessary plant had to be purchased, including the construction of a dam at a cost of L(i00, and at the present they owed altogether L 2900 outside of the debentures. The latter would become due in April, and they would have to be provided for. However, he was pretty right in saying that the debentures were nearly all held by shareholders, and he thought that they would agree to take up a rejssuo. Besides paying all the wages, &0y tho directors had paid off some LOOO of the company's liabilities, and the question now was whether the shareholders were willing to relieve the directors of their present responsibility by paying 2s per share. He did not think it was fair to ask thp directors to become responsible for such an amount in a company of that tort. Dr FiTCiiErT stated that the company ua-> severely water-logged, and in his opinion the proper way to tide over the difficulty was to ask the debenture-holders to forego their claim for an equivalent number of shares. The number to be arrived at on an equitable basis. Mr Hk.miv Rosn to a great extent sympathised with the remarks of Dr Fitchett, He was a debentuie-holder himself; but it was after becoming one that ho learned tho debentures were a supond mortgage, and were not the first charge on tl<e assets of the company. He thought that the debenture-holders should step into the breach and come to the help of the shareholders. He thought the meeting should be adjourned— that a committee, consisting of representatives of the directors, shareholders, and debenture-holders, should meet and discuss the matter. Mr Liston said the directors only wanted a security in case the company should not turn out as they expected. Pjobably, if the ahareholders agreed to make themselves responsible, they would not be called upon at all. Mr John Thompson referred to a rumour prevalent in the country to the effect that the directors were endeavouring to get the company into liquidation to suit their own ends. He (the speaker) had always disbelieved these statements, and had always contradicted them.— (Hear, hear.) Messrs Murdoch, Hyman, Chapman, M'ArdJe, and the other directors g<yve an unqualified denial to tho rumour, After a lengthy and desultory discussion, it was resolved on the motion of Mr T. K. Haiity, seconded by Mr M'Ardle — " That the shareholders be asked to subscribe two s-hillings a aharo, .such two shillings to be called up in callsof not more than threepenny pur share, fit intdvals of not less than one month, and that on completion of this arrangement the shareholders so subscribing take the benefit (to the extent of their subscriptions) of the security held by the directors." Mr John Thompson movod— " That Messrs F. Fitchett, T. K. Harty, and 11. Adam be a committee to co-operate with the directors in carrying out this arrangement." Tlhb was seconded by Mr G Schlltkr, and carried unanimously. The meeting then terminated. The secretary of the Miller's Creek Gold Dredging Company (Limited) reports 220z sdwt (jgr of gold for 180 hours' dredging,