GREY RIVER CONSOLIDATED DREDGING COMPANY.

Otago Witness, Issue 2493, 25 December 1901, Page 21

GREY RIVER CONSOLIDATED DREDGING COMPANY.

A meeting of shareholders in the Grey River Consolidated Dredging Company was- held m Mr H. F. M. Mercer's office, Bond street, on Friday. Mr A. Kyle presided, and there were about 30 shareholders present. The Chairman explained the object of the meeting, which was to consider the financial position of the company, and, if advisable, adopt one of the two schemes put forward, which have already been published — i.e., to issue debentures to the extent of £1500 or to reconstruct the company. Mr Kyle said •the dredge started work about the middle of June last, and had won 2550z 17dwt 12gr of gold, valued at £983 16s lOd. The wages paid had amounted to £622 10s 6d, and the company now owed £140. They had expended £432 8s lid on coal, and were still owing about £65. From the commencement of operations in June to the following October they had to pay 36s per ton for coal, but on starting again he thought it could be obtained for 253. Their present indebtedness amounted to £1350, made up by debentures £695, coal £65, wages .£l4O, and sundry debts amounting to £450. The directors were divided as tt which course should be adopted — whether to recommend that additional debentures to the amount of £1500 be issued or whether they should recommend liquidation, with the object of reconstructing. He was strongly in favour of issuing the debentures, because there was not much expense involved in the process, beyond that already incurred. If they went into liquidation, In view of- reconstructing, the expenses would be from £80 to £100. Even then shareholders could get no more security than the two claims and the dredge. Formerly the first debentures had the security over the lower claim and the dredge. The company now had protection over that claim, and the intention was to move up to the upper claim. The new debenture-holders would thus have security of both claims and the dredge. Mr Kyle then explained, with the aid of a map, the movements of the dredge, from the time it started work till the present position was reached. Mr Dall said he thought it only fair that the meeting should hear what was done at a meeting of the West Coast shareholders. The following resolutions were passed: — " (1) Th?t it is not desirable for shareholders to take up the new issue of debentures, inasmuch as it is not provided in circular that they were going to get any security for same. (2) That as the management of dredge has been bad in the past, the appointment of present directors to draw up articles of association should be relegated to committee of shareholders, and recommend that pait of circular No. 3 be struck out and amended in this direction. (3) Q hat we recommend shareholders to take up their B shares in new company; that it is imperative in the interests of shareholders that alteration in management be made without delay. That we consider claim payable, and the bad position of the company is due to bad management. (4) That the liquidator of old company be empowered to enter into an agreement with the company only, and that that part of circular commencing at word ' or and terminating effect,' be struck out. (5) That the hurried manner in which the propositions contained in circular sent has not given all shareholders in company time to receive same. — H. Magill, P. Corcoran, R. Cxirrie, A. Dunn, T. Eagas, E. Murphy, J. Hargreaves, T. Craig, and W. Run die." The Chairman said that the persons who furnished the shareholders with that circular had not the courtesy to send one to the secretary or the directors. These men were chiefly vendors, and all they had contributed to the company's capital consisted of 200 shares. With the exception of Messrs Magill, Corcoran, and Eagan, the rest held 1725 vendors' shares among them, and originally held 2520. Mr Dall said the conditions under which these shareholders held their sKares were unknown to him. There was, however, great dissatisfaction with tne management. The Chairman replied that the directors were not satisfied witb the management either; but it would have been a mistaken policy to have " »\wppped horses in the middle of the stream."

Some discussion-then ensued on the affairs of the company from the price of coal to the futura prospects of the company. Eventually The Chairman moved in the direction of issuing debentures. Mr C.-Fraser seconded the motion, which w.ia unanimously agreed to. Further discussion turned on the amount of the debentures, and it waß finally decided, on the motion of Mr E. Sunderland — " That debentures be issued to the extent of £1500, bearing interest at 25 per cent., and that ihe security be ths two claims and the dredge." Two trustees for the debenture-holders were appointed, and a number of the new issue wera subscribed in the room. The meeting then dispersed. VOLTAIC PROSPECTING AND DREDGING company;. An extraordinary meeting of shareholders of the Voltaic Prospecting and Dredging Company was held in the Board Room of the Agricultural Hall on Friday. Mr E. C. Reynolds occupied the. chair, and 15 shareholders were present. The Chairman said, as shareholders were aware, at the last meeting of the company it was decided to form a new company, with a shfti-e capital of JB9OOO, JESOOO of which was to be fully paid up, and the balance (£4000) was to be contributing. The directors did not do anything in the matter, as there wfts always a chance of getting a dredge cheap. AVi*\t ul ' ne< J out, it was perhaps as well they dict"!^|»ttiing ) for "they now had the opportunity of ing the- dredge of the -Second MagneticV%or -j£ISGO in cash. It would be necessary to form a new company. They had a report from Mr Werner, who knew every inch of the ground, and he recommended them to make a bid for the Second Magnetic dredge for £1500, which he thought would be cheap at the price. He (the chairman) had wired Mr Werner to know in" the present state of the river whether the dredge could be taken up, and the reply was that the pontoons could be taken up now if the machinery was First taken off. The question was whether they should try the dredge on the lower 'part of the claim, or whether tbe macEinery should be taken down and the dredge shifted. He would like someone to move that the action of the directors in- offering £1500 for the dredge be confirmed. Mr Leslie H. Reynolds inquired if the chairman had any idea of the returns of the Second Magnetic dredge before she closed down. The Chairman : Three weeks before she closed down she got 50oz, and the week before that about the same. Mr L. Hi" Reynolds thought the dredge should be taken down aiid shifted to the place that had been prospected. After receiving the assurance of the chairman that the Voltaic Company's property had been prospected above the falls, and getting some information regarding the dredge, it was proposed to purchase. Mr Reynolds moved that the action of the directors in offering £1500 for the dredge be approved. The motion was seconded by Mr Bolt, and carried unanimously. Mr A. J. Park moved, and Mr Thomson seconded—" That the directors be authorised to sell the amalgamated claim of the company to the new company, when formed, for £5000, and to accept fully paid-up shares in the new company in lieu of cash." — Carried unanimously. The Cbiivman ri-ovpd. and it was seconded — '" That the capital of the new company be £7500, in £75U0 oi Hi, .JSSOOO of which would be given in accordance with the resolution just passed, and the balance (£2500) would be contributing shares." Mr L. H. Reynolds thought they should decide where the dredge was to be worked before they fixed, the amount of the capital. A Shareholder proposed that the capital of the company bs increased to £3000 : but another Shareholder thought that £7500 was ample, as the public were getting sick of companies with big capitals. "With the consent of his seconder, the Chairman at this stage withdrew his motion regarding the capital of the company. On a show of hands being take-o, four voied in favour of the motion for a £9000 capital, and seven against. The .Chairman then moved that the capital be '£7500. in 7500 shares of £1 each. Mr Bolt brougrht»forward an amendment that the capital be £8000. The voting being- equal, after some deliberation, the chairman gave his casting vote in favour of the motion. Mr Shaw moved, and Mr Murdoch seconded — " That the 2500 shares be issued, with a preferential right to dividends to the extent they may have been called up, and then to rank as ordinary shares; and, in the event of liquidation, they to have priority of all shares in respect to the assets to the extent of the amount called up on them that has not been repaid." — Motion carried, the Chairman explaining that shareholders could, if they liked, apply for more than their quota. It was agieed that the minimum subscription be 2000 ; also to leave the matter of settling the terms of the memorandum and articles of association in the directors' hands. The Chairman then moved — " That, in the event of there being any shares remaining after the Voltaic shareholders had applied, the balance be offered to those shareholders in the Second Magnetic Company who may apply for same." This was seconded by Dr Shand, and carried, and the meeting terminated. WAIORA GOLD DREDGING COMPANY." An extraordinary meeting of the above eompanj was held in the Stock Exchange on FricUy. Mr Dennieton (the chairman of directors^ presided, and . there were 24 shareholders piesent. The meeting was called on a reqiiisition of shareholders to consider the position of the company. On the requisitioned voicing their reasons for calhng the meeting, The Chairman read a pro forma balance sheet, which showed the liabilities of the company to be £741 14s Bd, in addition to contingent liabilities to the extent of £728. After a general discussion, it was moved by Mr Lawson, and seconded by Mr Anderson — " That the secretary call a meeting of shareholders for the purpose of considering the advisability of going into liquidation, and that the notice be so framed that it will be competent for the meeting to pass the necessary resolution of liquidation." The motion was put to the meeting, and carried unanimously. No further business requiring the attention of the shareholders, the Chairman declared the meeting closed. GREAT WOODSTOCK GOLD DREDGING COMPANY. An extraordinary general meeting of shareholders in the Great "Woodstock Company was held on Friday evening to consider the financial position. There were 17 shareholders present, and Mr Andrew Melville presided. A circular issxied to shareholders, together with the notice calling the meeting, stated: — " Only 59 debentures, of the value of £295, having been applied for, £705 has yet to be provided to complete the debenture issue. Unless the remaining debentures are taken up the existing mortgage for £1000 (which the mortgagees have agreed to convert for the like amoivnt) will be paid in cash on January 1, 1902, and as there will be no other means of meeting this payment the directors will be compelled to call an extraordinary general meeting of shareholders for the purpose of winding up the company, which must result in a total loss to the members' of all capital subscribed." The

time for applying for debentures was extende to the 20th inst. The Chairman said that, as they all knew, the company required £1000 urgently, and. cc meet this demand shareholders had been asked to take up 200 JES debentures. The time for ayplicaiion had been extended from December 1 to the 20th, but only 59 debentures had been applied fcr; and he informed them that unles* some arrangement were immediately arrived ai the company must go into liquidation. Then local director on the Coast had written stating that if the work of erection on the dredge wa°