SECOND MAGNETIC GOLD DREDGING COMPANY.

Otago Witness, Issue 2425, 5 September 1900, Page 20

SECOND MAGNETIC GOLD DREDGING COMPANY.

The first annual meeting of the Second Magnetic Gold Dredging Company, which was held in the board room of the Agricultural Hall on tuc 29th, was attended by about eight shareholders, Mr W. T. Talboys, chaiiman of directors, presiding. The following report was submitted : — " The directors, in submitting to shareholders the first annual report, regret that tbey ace not in a' position to state that the dredge is at work. The contracts weie all let early, and it was confidently expected would all have been completed ere this. As shareholders are aware t the delay has arisen through the heavy piessure of woik at the various foundries and coi tractors taking more m hand, than they could complete jn contract lime. Coupled v/ifi this -has been the loss of time in cartage, though your directors have- clone all in their power to hasten matters. The erecting engineer reports that the whole of the machinery on hand is now on board and in position, and comprises the following: — Boiler, engine, screen and rollers, cross-shaft, and all driving gear in connection with screen, top tumbler, main spur wheel, counter shaft with pinnon, ropo pulley and friction ; ladder all complete an I hung, with bottom tumbler in place. Buckets and links — the latter are all on the ladder and completed. Should the rest of the machinery — which comprises winch, tables, pump, etc., — arrive so as to save any further stoppage, I expect to have the dredge ready to start work in five or six weeks. The directors are pleased, however, to state that, unlike many other companies, they hope when starting work to be clear of debt. The retiring directors are Messrs J. F. Kitto and J. Dick, and Mr James Brown retires as auditor. Messrs J. Dick and J. Brown offer themselves for reelection." The Chairman said the repoit and r balance sheet had been before shareholders for some time, and he did not know that he req\iired tc say very much about them.' One thing he had to congiatulate shareholders upon, and which was rather unusual, was that they would be able to start pretty well free of debt. He reckoned that they would not be in debt more than £100 or £200. In these times he thought this was a cause for great congratulation. At the same time, although he could congratulate shareholders on starting so well, on,e thing the directors felt rather disgusted with at this stage wa=i that they were not able to pay dividends instead of not being started. The company was registered on the 18th July, 1899, and on the Bth of August, which was some 20 days after, the whole of the contracts were let, so that they could see that the directors had gone to work straight away, and thrown their energies into the work. The most of the contracts were let on the Bth of August, the contract time expiriug the end of December last, some eight months ago. It was naturally expected by the directors that they would be able to start by the end of March. This was five months latei, and they were not staited yet. '^heie was no jjgubt most of them would, be-

able to place their finger on the weak poin3 as to why the contracts were so long overdue. The foundries, of course, would find the excuse that they had too much work in hand, and no doubt they had, but he thought it would be found in the end that the foundry that took work in keeping with its ability, to execute it would come out much, the best, and would be most successful. The firm that took work and carried out their contract would no doubt in future be the firm favoured. They read letters in tho newspapers from shareholders, and they always " went " for tho directors. The engineer got 5 per cent., which meant £300, £400, or JESOC*i to see the work was properly carried out; bufc shareholders never seemed to take the slightest notice of that. It. must stand to reason with" any right-minded man that the directors hadi their own business to attend to, and could not sit watching these jobs. To seethe work carried out- was undoubtedly the duty of the engineer. A great weakness was that the penalty clause put in might just as well ba left out, becauso there was always some clause in the contract by which the contiactor could escape. He had heard of firms in Melbourne who, if they failed to carry out their contracts, would rather pay the penalty. That sort of people were determined to carry out their contracts, and if not to pay tho penalty, and until this was carried out here other cases w6uld * be somewhat similar to that of -the Second " Magnetic. The directors had been in comrmiaication with, the engineer and diedgemaster, and they informed them that they expected to have a run out of the engine next week. -He did not think they would start dredging for" something like a month. He must give his codirectors credit for ihe way they hsd worked. ' They hod all put theism energies into their work, and yet at the end of 12 months they, • found they were not -able to start operations.'"' There was no question about it, there was no one in Oiago pleased to see money go away from Otago, but when contracts were six months overdue it was no matter for surprise if dredging people found it necessary to go to MelboiuTie or elsewhere for their machinery. He moved the adoption of the report and --balance sheet. Mr Kyle seconded the motion, which was carried unanimously, and without comment. Messrs J. Dick and H. Bowie (the latter replacing Mr J. F. Kitto, appointed dredgemaster) were elected directors, and Mr J. Brown was re-elected auditor. A vote of thanks to the chairman concluded the meeting.