Notes from Greymonth. (From Our Own Correspondent.)

Otago Witness, Issue 2456, 17 April 1901, Page 20

Notes from Greymonth. (From Our Own Correspondent.)

GREYMOUTH, April 9. The Easter holidays being over the dredges are again starting. The Reeves Proprietary dredge has some good ground ahead, and, as expenses are small, the company should doubtless pay dividends. The dredge, however, is not one of the best, and this is a drawback. The machinery of the Al dredge will be completed 111 three weeks. The Maori Queen dredge is credited with having gold on the tables already, although she only worked for a few hours. The Grey River dredge is again working near where the big returns were obtamed, and will wash up on Saturday. The Dobson No. 2 dredge is at a standstill, and the Waipuna is likewise. The New River dredge is steadily working and improving. The Greenstone dredge will give an indication of the worth of the ground on Saturday. I do not expect a large return. The Nelson Creek dreoge is now on a rich run, and should give good yields for some time. Messrs Cutten Bros, are calling for tender? for the Pactolus No. 3 dredge. This will be one of the best on the Coast, the requirements of the locality being now thoroughly gauged through the experience of the Nelson Creek and Pactolus dredges. The entire plant of the General Exploration Company, who sunk a few thousands m the Buller district, is now in Greymouth on the way to Humphrey's Gully, where it will be utilised April 10. The Grey River dredge up till to-night did not show much gold on the tables, and unless an improvement takes place Saturday's return will be a poor one. The shingle being treated is loose drift. The reef is dipping. The Grey River claim has so far shown the best gold on a rising reef. Shares are tightly held, with an inclination to rise, indicating the belief that good wash is close at hand. The Crcesus Quartz Company struck a wall of what is believed to be the cover of the mam reef, and the quartz itself may be struck at any time. It is generally held that the main reef cannot be further off than 150 ft. The discovery has raised the hopes of reefers long delayed. The Ford's Creek dredge is likely to come on to something good at last. The wash is about 28ft deep, but unfortunately the ladder is only capable of dredging abouL 24ft. By lowering the ladder to the utmost limit (26ft), dirt was obtained in which a fine sample of gold was got. It is understood from the local director that sufficient length can be given to the ladder at an expenditure of less than £50 and if that expenditure be sanctioned we shall ere long see the Ford's Creek dredge among tho3e giving weekly returns. As an evidence of the richness of the terraces bordering on the Grey River and the tributaries thereof, I may mention that several sluicing claims in Healey's Gully and Moonlight, prior to Easter, brought down very handsome returns, some of the claims averaging £10 per week per man. The celebrated Barrytown Beach clam, formerly owned by Ashburton people, but for over 12 months owned and worked by Mr Andrew M'Kay, continues to give splendid returns. Although the actual gold return is not given, it is known that the claim is one of the best in the district, and has proved that beach claims having a large amount of black sand can be successfully treated. April 11. The share market <is dull. The (returns, owing to the Easter stoppages, will be poor. The Maori Queen dredge started work permanently this morning, and is working admirably. The dredge has good ground for a start. An official commencement will be made next week. When the Wanganui directors arrive there is to be a big ceremony. Mr H. A. Gordon, late head of the Mines department, is here. He has a high opinion of the West Coast as a field for dredging, but holds that the dredges are too small and weak. With powerful machinery, he believes that a gTeat and prosperous industry would speedily spring up. With regard to the submerged timbertrcub'e, he points out that very few logs he acioss the stream They are generally lying up and down, and properly equipped dredges should not have much trouble in dealing with such log 3, being able to dredge alongside and disengage them from the gravel, when they can be easily removed. The directors of the Waipuna Company have decided to increase the length of the dredge elevator by a few feet to enable the dredge to bo worked to better advantage. The Leviathan dredge stopped this morning for the lengthening of the ladder and other repairs. This will take about a week to effect, when handsome returns are expected. The Rimu arrived from Auckland last night. She has on board 90 tons of dredging material for the Hokitika Company and 45 tons for the Teremakau dredge. April 12. The tables of th© Greenstone Creek dredge are looking remarkably well, and a fair return is expected to-morrow. The ground is good and -fairly solid, and steady returns are expected. The tables of the Greenstone Junction dredge, which started at the same time as the Greenstone Creek, do not look so well, but then the diedge only faced out for the creek yesterday. In a short time she should be into deeper and more solid ground, as it is dipping fast m the direction with good indications. The Marsden No. 1 dredge is nearly completed, and should start in three weeks. The tables of the Nelson Creek dredge are looking yellow. The week's return should be good. The Pactolus yield will not show much improvement. The share market continues stale. Nelson Cieek and Grey River shares are in demand. April 14. The returns are a trifle better than was expected. The Grey River dredge, with 9oz, got during the last two days, is better than was hoped for, and augurs well for the present week. The Pactolus return of 18oz for 137 hours is a decided improvement, which, it is held, will continue, as the wash gets finer and harder. The Buller Junction, with 31oz, is held to be the lowest return likely to be recorded for spme time to come. The dredgemaster is highly pleased with the ground, which during the past two days has considerably improved. The Reeves Proprietary dredge is getting into better ground. Last week's return of 15oz 13dwt gives £5 over expenses. The Leviathan dredge is now being repaired, and report says that many alterations will be nece=sarv ere she is fit to recommence woik. Amon? West Coast diedges she earned the repuUtion cf being th© " best ni.isfit^" and I

fear a deal of expense will be necessan ere she will be anything like a good, ser\ iceable dredge. The A T ew River return is not m, hat as last week's work was only a trifle over 50 hours, she may possibly run till next Saturday The Maori Queen dredge is looking well, cind a good return is expected. Mr Brmgans commences prospecting the Kohmoor Extended claim on Monday. The Keystone borer is now testing the Mikonui River claim, Ross. According to the present condition of the various contracts, diedges m South Westlaud commence work in the following order — Perry's Reward Hau Hau, Holutika River, Ross" Day Dawn, Kohmoor, Alymer Lead, Prince of Wales, Woodstock, and Commissioner's Flat. The Jirectois of the No Town I\o. 2 Company, I understand, sent out a number of iawyors' letters to shareholders m this district who are in arrears, threatening proceedings unless calls are paid forthwith. There is •a good deal of discontent here regarding this claim, it being reported that some of the linger shareholders who were promoters are in arrears, and it is further said the validity of the calls will be called in question. So far ISs has been called up, and little or nothing done, notwithstanding that the ground is highly thought of, and prospecting has further proved this. The TeTemakau and Hokitika dredges' machinery, landed here on Friday, is far heavier than anything yet landed for dredges. The share market livened up on Saturday. Blackwatera, Greenstone Creeks, and Maori Queens were sought for, while Nelson Creeks and Grey Rivers advanced m price. The Grey Rii er dredge was not dredging oa the bottom last week. There seems to be an uncertain!:, as to f-ettirg the ladder, lengthened Some irsi«t thut a nf\v rtred>?r is necessary. Orders ha"c beer i<- reived to fcPi the Ford's Creek dredge 'adder ]?:igth->.-e<.i Bft. The Waipuna, dredge was not working last week. DECLARING THE WAIMUMU A SLUDGE CHANNEL. WELLINGTON, April 10. The Mi.n'?t«r ct limes, m accordance with the request of a southern deputation, has given instructions that steps be taken to declare the Waimurnu Creek a sludge channel. RIGHARDS'S BEACH GOLD DREDGING COMPANY. An extraordinary general meeting of the shareholders in the Richards's Beach Gold Dredging Company was held in the Dunedm Stock Exchange Room on Thursday. Mr W. T. Talboj-3 (cha-uman of directors) occupied the chair, and there were some 40 persons present. The object of the meeting was stated in. the following circular sent to the shareholders — " The directors regret to inform the shareholders that the efforts of the dredge to get into the claim have met with so little success that they consider it advisable to call the shareholders together to consider what is best to be done. A director (Mr Cuming) and the ' secretory visited the claim, and for your information we enclose a. copy of their report. The directors therefore leave it to the shareholders to decide whether it would be better to bore the claim or wind up the company without incurring fuither expense. In the meantime the dredge Ifas been laid up until after the meeting of shareholders." The Chairman intimated thai; it was his unpleasant duty to meet the shareholders to discuss the position of the company. He had no doubt that most of them had heard of the struggles the directors had had from start to finish ■nith regard to the company. In the first place, the company wa3 registered when dredges were most costly. To save time, they accepted a Melbourne tender for the work to get the dredse constructed more expeditiously than they could by getting it built in Dunedin. That let them in for more expense than they anticipated. Unfortunately the plague broke out in Australia, and the Union Steam Ship Company charged almost prohibitive rates. The cartage, freight, and duty alone cost £1191. The pontoons and boats cost £1477 13s; the machinery, £4976; erection, £1215; sundries, £591 11s Id; engineer's commission, £250. Before they got far with the erection they found it necessary to appeal to the shareholders for assistance, and placed before them a scheme for issuing 3000 preference shares. These were all applied for, and showed the confidence of the shareholders in the chum. Before the dredge was finished they found £3000 did not carry them over their difficulties. From start to finish they laboured under financial difficulties, and although they desired to prospect the ground they had never been able to do so efficiently. The directors made an arrangement with the Junction Electric Company, and for some time worked away, but the leturns were not sufficient to pay expenses. Later, as a last resort, they made a big plunge to get into the beach. For something like three weeks they plugged away at a bank with big boulders in it. Some six weeks ago he was up there. It was decided to take the dredge up to the top of the claim, and try to get into the low-lying beach there. Although the prospect looked favourable, it turned out otherwise. They no sooner got through the silt than they found a layer of rock and clay. After that it was deemed desirable to send up one of the directors and the secretary, and their report was before the meeting. The directors were still of opinion that the claim was good if they could possibly get into it; but before doing anything further they decided to call the shareholders together. The secretary had drawn up a balance 3heet showing their liabilities to be £2012 15s 3d; bills payable, £45 15s 9d ; bank overdraft. £6 lls. As a matter of fact, the company had been summoned by some of the wages men, and to get the claim protected the directors had put their hands in their pockets and advanced the amount. He would ask the secretary to read the report made by Mr Cuming and himself (the secretary) upon the" claim. The report read as follows.— " We have to report that, acting upon your instructions, we visited the claim on the afternoon of the 20th and the morning of March 21. On both occasions we were accompanied by the dredgemaster, and on the 21st we also took Mr James Marshall, who had worked on the claim in the ' sixties.' We went exhaustively into the existing conditions, and came to the conclusion that there was only one place thiough which there was any possibility of getting into the claim other than the one the dredgemaster has already found. The beach referred to is limited in extent, and if the dredge did get m, m a short time difficulties would arise which we have no means of overcoming at present. A comparatively small water supply would get over these difficulties, and we are making inquiries m the direction of procuring same. We think, however, that before arrangements be made for getting a water supply, about six bores should be put down in different parts of the claim to ascertain what extent there is of deep ground. Should deep ground be found, as we expect, all along the frontage, we think the claim should be profitably worked, as the tailings could be deposited in the river, but then only if water could be obtained, so that the silt and sand could bo run away, and the story faces sluiced down. The evidence obtained from various sources confirms our opinion of a rich run existing inside, which from the confcrmation of the ground cannot possibly have been, woiked. A meeting oi the CiomwelJ

shareholders was held on March 20, at 8 o'clock p.m., and the opinions of those who attended were strongly in favour of giving the claim a further trial after boring. Each shareholder expressed his willingness to make a. caah advance to the company to assist them to wipe off their pieseiit indebtedness and carry on. The following resolution was carried unanimcus'.y — ' That the claim be bored at an expense not exceeding £100.' " Mr Wctherilt Do I understand that the cost of erection was £]215 9 The Chairman That is so. Mr Wetherilt I think it is simply monstrous that the erection should have cost so much. What was the amount of the engineer's fee The Chairman : £250. He has not yet received it. Mr Wetherilt said it was the common talk of the goldfields that the Richards's Beach dredge really belonged to the Junction Electric. Be that as it might, there was no doubt that the claim was not tackled as it should have been. Had they tackled xhe claim immediately opposite the place \ here the dredge was launched she could have got into her claim. Instead, the dredge was put up against a great mound, and slu might as well have tackled Mount Cook. His idea was that she should have been taken off that mound lorg before she was. He repeated that there had been a terrible lot of bungling from beginning to end. The Chaninan said at the time the dredge was launched he thought that the best thirg to ha-ve done was as Ihe last speaker had said. The dredgemaster, however, thought that the best way was to cut right up alongside the beach and v.ork in in that way. He (the chairman) was rot a practical roan, but he considered now that the w*y that vras adopted was tha best. When he was up in February he had a conversaUou with the lost speaker, and he believed Mr Wct'aenlt was of. o; lnion tlrit^t'iey should go o-- deiug as they were dom<j. Th<>.e was always a difference of ov^noa vi ii^!u-cl to these thvig J Public opinion :n Dv- e.lm ws3 that they should have gone in lower down. They, however, did what tbry considered best There was no doubt that Mi Wetherilt was in favour of opening out in the okee where they did open out in February. 'ihiw found in opening out in Februarj — not, a bir of clay, but. nothing bn; big l-ou^ers. If '. as qui*e l.o'-Sxbb, had Jie.'/ started when 'the urei was iugli, (hey. ni ght lirvp got into the ground. The director and ssrretary sent up to report consulted Mr M'Lay, the dredgemaster of the Hsrt'ey and Rilev drpdge. Mr M'Lay strongly sk 1 vised them to throw up the sponge. Mr F. Foster ssked if the chairman thought the dredge wss fit to work the claim. The Chairman (after a prolonged pause) Well, I do not think "o. In fact iiom what I saw there in Febiuary it put me out of conceit altogether with regard to anything- like bank claims, especially 'where yon come across big boulders. Perhaps some of you know the ground? It is different altogether from that at the Alexandra fiat. Mr Foster ?ai'l lie would like io ask the secretary to lead out the returns.. The Chairman said the total \ahie of fie gold won was £355 12s 3d.

The Secretary (Mr Cogan) said that the b'g gest return was 29£oz, and. the smallest 3oz. Mr Foster said the dredge worked in a cutting two days for that 290z, and he wanted to know why she was taken out. The Chairman said that if she had been allowed to remain there for many weeks she would have been worthless as a drcd!>».-

Mr Foster then said that the pontoons were incapable of carrying the elevator empty, much less when it was filled with gravel. The dredge was never fit for the work even supposing there were no boulders there. The buckets of the elevator would not revolve, and she was stuck in a quantity of tailings. Th Chairman. Well, of course, that is the business of the engineer. We appoint him, and we expect him to be able to carry out his duty. Whether he docs so or not is open to the public and the shareholders to judge. Mr Kyle- Who is the engineer? The Chairman Mr Jack M'George. Mr Kyle How do you account for the cost of the erection' It seems extraordinary that it should cost £1200. The Chairman said that £750 might be allowed anyway for the cost of erecting the dredge. Mr Kyle- As much as that? The Chairman Of course there were difficulties in the first place in regard to the elevator. It was run on slides instead of rollers, and the slides wore out very quickly. In fact the working of the dredge had been a run of accidents. How many dredges did they nnct get a straight run?— (Dissent) Mr Kyle. The Moa Flat. Mr Kyle then asked if anything had been done to prove the ground until the dredge began to work. The Chairman • At the time the company was floated Mr James M'George was working on the Junction Electric dredge. Ko one knew the ground better than he did, and he asserted that there were runs of gold going through it Mr Wilson wanted to know whose fault it was that the dredge was not started when the river was high. Was it the fault of the engineer? . The Chairman said it was not advisable for him to say too much.

In reply to Mr H, Witherilt, the Chairman said the contracts for five lots of jnachmeiy were let to Messrs Johnson and Sons, and they did not turn them all out at once. It might be a fact that the Manuhenkia machinery came earlier. Of course one dredge must take precedence of another. The Manuhenkia got theirs first. It might easily have been the Richards's Beach. They all knew the difficulty of getting machinery through that winter. There was a block at Lawrence and Wedder-

burn, and the contract time for a great rnanj! dredges was exceeded by six and nine mor>ths. It was owing to thij great delay n\ tlie machinery coming to hand that much of the expense of election was incurred. The first dredgemaster was down at Wcdderburn no less than six tirnc= hunting up machinery.

Mr Wilson Did yoii get machmeiy throurrh that caused a great deal of delaj owing to its not being 111 proper oider? The Chairman said that the erecting engineer said that was so.

Mr Wilson asked who bore the expense caused b> this. Did the company do so 9 The Chairman said that of course the company did. He stated further that the consulting engineer had not been paid yet. Mr Wilson said he would like to know if any of the vendors held contributing shares, or whethei they had sold out the whole of their shares — (Hear, hear.)

The Secietary said that the vendors held shares as follows — B. Throp, 180, J. C. M'George, 155, W T. Talboys, 135, P Williams, 25, James M'George, 25. Messis Talboys, Bolt, and Throp had sold a number of their vendors' shares, and had lent the money to the company to carry 011 operations when, they were 111 difficulties, otherwise they would have held 280 each. The Secretary then read a letter from Mr J G. Biomner respecting the claim. He said he saw no alternative but to wind up the company unless the shareholders were willingto alter the ladder and make it suitable for working- a bank claim. It would be a pity to throw \ip the sponge when nothing had been, proved against the claim.

A letter was also read by Mr Cuming from. Mr R. Wishart, who &aid he thought the Ciaim. should be piospccted, and if thii werp successful the la'lder should be lengthered. lie rr'ko'.cd the claim the richest p»"ce of giound 311 th° di' tuct.

A :~ii a^'.'older a=kpd what the directors pro110*ed lo do.

The Chairman reyhed chat a rieeting could be called for the purpose of increasing the rapital by £2^lo. These shares would require to be -i-refercce shares, and tike l.rrccdsiice o*.er the pieT'it issue of piefeici ■ - 'hares. That would wire oft the liability t the cotnpary. A'thcr.gh they we owing «oir.ethin«j like" €2000. all of it was not press:.:;;, j> I^ome £600 cov ld ?t"tid over.

In repiy to Mr K. S. "Ranuay, t'.ie Chanman said that' the \endors had sold their shares and lent their money to the company, and were getting 30 rer cent, interest. He also asked Mr "Ramsay if he v o^ d L-nd the company .E.-jOO vt the s-arue late. Mr Tf-Tiisny d-chncd to do o. Mr Kjlf hoped the sbareholcieis vouß never saiT-t nn the IC3UO oi a fre=h 'ot of piet-rence. shjic. Mr Wilson, faked who passed the machinery for the dredge. The Chairman • Thnt is rather a <=tupid question. 1= it at all TMobabie that five laymen, knowing ro'hmg about mdcli.reiy. -would attempt to T)?S9 if Mr W.iscm Then the e-.l3li.eer y>a = sod it? The Chaiimin. Yes. "Mr Wilfou I move that repudiate the amount of his commission

The Chairman That is not part of the business of This meeting. Mr Wi'son We will do H later on. iU y-ii< i y Po you k".o.v v,-!io actually passed thp n.ac'i'or\, or is it orly i;:f"=UEi_it.on on your ppit ' The Chairman. We \na v ihifc T hf rr:c,.i=er is supposed to pass all machinery before he makei "pTOgTcss payments. I surpo=2 most of you know whether it is done cr not We cannot carry the engineer m our pocket". When. we engage a qualified man we expeci h;m to act for the company he repissent<=. Mr Fyfe asked if the engineer was lesponsible for taking over a thing whe;_ it was not correct?

Mr Dick said that when he and Mr Cumingwere appointed directors about six months agothe dredge was nearly stalling, and he expected that they would go strongly ahead. Instead of that, the erection was further delayed, and thay had rttp|s and complaints from the erecting engineer '"of defects m the machinery.

In reply to a shareholder, the Chairman, said that there was nothing to prevent the comrany borrowing money, but the directors thought that before doing so it was desirable to" consult the shareholders. They could not borrow money on a dredge under 12-1 or 15 per cent. The banks declined to give an overdraft or to take "a joint and several ' from the duectors. These who had the money to lend wanted a lot for it.

Mr Storey wanted to l^ow "' they were eoir.g to take away the prefeicnce the present shareholders were entitled to. To do so wouid be practically robbing them, and was, m fact,. •' inequitable, illegal, and unjust Mr Kyle said he thought the company should go into liquidation. The Chairman reseated that a second i==stieof preference shares 'would take precedence over the first.

Mr Butterworth suggested that the shareholders should set up a committee amon-st themselves to investigate and confer with the directors as to what was best to be done. In reply to Mr Kyle, the Chairman s?id that Messrs Watt and Fussel were acting on behalf of Mr M'George as consulting engineers. Messrs A. Kyle, W. Beadle, — Storey, Jos. Ledmgham (dredgemaster of the Central Electric), and F. Kitto (Cromwell) were appointed a committee to act on Mr Butterworth' s suggestion, and The meeting then terminated.

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