MINING.

Otago Witness, Issue 2010, 1 September 1892, Page 14

MINING.

1 f:;NEXTHORN CLAIMS. .The nfifairsojf the Victoria, Nenthorn Consolidated, -and -.Break o' Day Companies, which have bf off so 5 often before the public, are now '-disclosed' in 'all their nakedness by the short anifcim|>le address 1 of Mr Rose, who happens to be the liquidator of each company, to a meeting £f; shareholders. The companies, before they <had' 'tested their claims, plunged recklessly into .the; construction of an extremely expensive battery. Each company was supposed to contribute to the cost, but one contributed far- less, and another far more, than its share. The debts thus 'incurred led to a complicated litigatiou, for which the bulk of the shareholders were not • responsible. It ended very unfortunately for all parties; most unfortuuately 1 those shareholders who »were innocent of tho attempted repudiation. After a leugtby legal investigation, ending in the Court, of Appeal, it was found that the bank had not claimed nearly as much as it might claim, that in place of dividing its claim amongst tSe. three companies it had the right of practically- proving almost the whole of it against each,. though it could not receive payment .of 'more than 20s -in the pound. The result is that one company — the Break o' Day— finds that it owes the bank'neßrly six times as much as the bank originally claimed. For this outcome the Bank of New Zealand is in no.way .io blame. It never sought this advantage, which, was forced upon ib by the litigation.' Shareholders are now anxious that the liquidator's call should not fall upon them at one crushing blow, and Mr Rose finds that the Act gives him no power to mitigate this : " I have," say's lie) "from the first — ever since my call notices were sent out, and before any letters appeared in the paper— taken the responsibility of endeavouring to meet the circumstances of tho'Ee requiring time who have either called upon or written to me." We have only ,oho piece of advice to offer the shareholders, and th*t is to tolerate no shirking by fellow shareholders. If anyone now by underhand means, such as concealing assets, gets out of 'his liability, the loss does not fall on the creditors, who are probably amply secured, but upon his fellow shareholders. These, consequently, owe it as a duty to themselves as well as to the liquidator to assist him in every reasonable way.