WAIKAKA FORKS GOLD DREDGING COMPANY.

Otago Witness, Issue 2467, 26 June 1901, Page 22

WAIKAKA FORKS GOLD DREDGING COMPANY.

An extraordinary general meeting of the Waikaka Forks Gold Dredging Company was held in No. 2 Board Room, Agricultural Hall, on Wednesday to consider a proposal to wind up the company. Mr Whetter (chairman) presided, and there were IS shareholders present. Proxies representing 2240 snares were handed in. The Chairman said that he was not prepared to make a statement of the affairs of the company, but they were in such a position that the directors had to call the shareholders together to consider the financial position. Perhaps there was no necessity to liquidate. The meeting would have to go into the question cahnly, and consider what was to be done. Three writs had been issued against the company, and he believed that voluntary liquidation was less costly than forced liquidation. In reply to questions, the Chairman said that when the balance sheet was published in April the company was in debt to the extent of £1200. The directors had guaranteed the sum of £500 to the bank. Mi Jackson asked why the dredge had been stopped when it was getting 9A03 per week. The Chairman replied that §ioz was insufficient to pay expenses. Mr Jackson sa:d that there was an employee at the door who had been on the dredge, and ha would like to have him in to ask him somr questions. Mr T. Green objected, and Mr Jackson did not press the point. A general discussion ensued on the fitness of the dredge to cope with the claim, and the Chairman read a report from the manager, which stated that during the 17 weeks it had been l tinning under his charge he was confident more ground had been turned over than had been turned over by any other dredge or> similar ground in the district, and at ps low a cost per cubic yard, and saving (with one or two exceptions) as large a proportion of the gold. The pontoons were deficient in buoyancy, but the machinery was of good workmanship, and in good working order, with the exception of the winch drive. It was a difficult matter to form aa estimate of the gold contents of the ground. The dredge was now about 250 yards from tire upper portion of the claim, and, with a small outlay on the diedge, he was confident that the intermediate ground could be worked at a profit. Mr W. S. Fitzgeiald said that from what he could hear the claim was of consideiable value, and the ground concerning which he had been induced to take shares m the company had never been touched. — (Hear, hcai.) It was the iF t -.ort on this ground that led him to go into the company, and if the dredge could get there with a. little further expenditure, he thought most of the s-hareholders v.-ould be willing to put their hands in their pockets and help the chrectois out of their difficulty .—(Applause.) He would like to ask ihe directors if they had any alternative proposal. The Chairman said it was open to tLe shareholders to make any proposal. The company in puch a position that :t could not meet its liabilities. Mr Fitzgerald • I think you might have brought forward some proposal to issue preference shares or debcntuios. The Chairman- "We ha\e no alternative proposal. Continuing, he sakl he was satisfied ihe lov.er poition oj the Liana was cveij- bit at ?ood as the upper" Mr JR. Irvine asked nci. ,oi _; A would lake to set there. The Chairman • Six mouths. Mr H. Martin paid the dredgeinaster had told him that it could be done in three months. Mr Jackson • Did Mr Molyneux offer to take the dredge through and pay all expenses? The Chairman : No. That is the first I have heard of it. Mr Wakefield asked if the chairman could rdve any estimate of the piobablc result of liquid. ivUgg,

The Chairman That is leally beyond me. You know what dredges are se'hn? for. I do not think the ground Mould realise more than £4 per acre. Mr Marton : That means that the shareholders will get nothing? The Chairman. I do not see mm.li to corns out of it. Mr Martin thought it would be the height of folly to go into liquidation. He thought moat of the Gore shareholders would willingly take preference shares, and if a levy of Is per share were ms>de that would pay off pressing liabilities in the meantime. He contended thafc the question of liquidation had been sprung on the shareholders. Mr G. Burnett moved, and Mr Jackson seconded—" That it is the opirion of the shareholders at the present nvehrg that this company's claim has not been properly tested to prove whether payable or not, and that the diiectors make strenuous effoits to test the upper portion of the company's pioperty, and report to a meeting to be held this day three months." The Chairman: We have no money to do Mr T. Green said that they were in bact financial straits, and it would take wiser men tkan anyone m the room to get them out of it. If they make a levy ozi the shareholders it would not be paid. He moved las an amendment — " That it has been. ! proved to the satisfaction of the company that the company cannot, by reason of its liab'Mies, continue its business, and that it is advisable to wind up the same, and to appoint; a liquidator for the purpose of such winding up, and determine his remuneration." Mr Williams seconded the amendment. Mr W. C. Bright said that if they liquidated th° shareholders would get nothing, and the dredge would be bought up for a song by private speculators, who would make a good thing out of it. . , After some further discussion the amendment was put. Five hands were held up m its favour and seven against. A poll was demanded, and the voting resulted -—For liquidation, 2360 votes; against, 960. The Chairman declared the amendment carTl***^ ■ Mr Martin said that he had drafted a further amendment—" That the capital of the company be increased by the issue of 750 preference shares of £1 each," but in view of the result oi the poll for liquidation, it would be useless for him to move it. „ Mr T. Callendei was appointed liquidator of the company, and his remuneration was fixed at £25. , , „ Some further discussion ensued as to the be=t course for the shareholders to take, and it wss decided to meet again m a .ortmgnt to consider the reconstruction of the company. A vote of thanks to the chair cosed tli© meeting.