GUNTON'S BEACH AMALGAMATED GOLD DREDGING COMPANY.

Otago Witness, Issue 2497, 22 January 1902, Page 32

GUNTON'S BEACH AMALGAMATED GOLD DREDGING COMPANY.

A meeting of shareholders in the Guntori's Beach Amalgamated Gold Dredging . Company, was held on Thursday to consider the position of the company. The circular calling the meeting stated that there was not sufficient funds to complete the dredge, and the directors were desirous of knowing the feeling of the shareholders as to what should be done. Mr J. H. Boy presided oveT the meeting-, which consisted of 17 shareholders. The Secretary first read a statement of the affairs of the company. The amount received to date from the Gunton's Beach Gold Dredging Company was £3659 2s 6d, the sum of £540 17s 6d remaining in arrear. The total „_ received from the Blue Bell Company £301(5 :'. ss, and £1663 15s was in arrear; oY a total o£ j £6675 7s 6d received, and £2204 12s 6d in arrear. 2 The amounts paid to date were: Gunton's ~£ Beach Company £4743 18s sd, Blue Bell £1639 15s 7d, or a total of £6374 14s. There watt £323 8s Id in the bank, and, regarding alb' the outstanding calls as good, the total amount available was. £2528 0s 7d. The amounts due were £2300 on the machinery and £600 on the pontoons, or, roughly, about £400 deficiency over the assets. The Chairman said they had heard the secretary's statement. The directors were sorry, despite their best efforts, that the company, had drifted into its present position. He would be very pleased to answer any questions and to hear of any scheme that might assist them out of their difficulties. In reply to questions, the Chairman stated? that the dam was completed, and was up to> a- height of 33ft. It was intended to make i& to a height of 45ft, but they had had to ceaso \ operations because of their shortness of funds*^.'' Mr Sing Lee asked if it were true that old- '■; age pensioners working for the company were - paid at the rate of 9s or 10s a day. Mr Gunton said that there was one old) man who got 9a, and who was atill working; for the company. He, however, was not navying, but was acting as head quarryman. Another man who took charge in hia absence also got 9s, but none of the rest received that amount. A reference to the wages sheet was then, made, and bore out Mr Gunton's statement. In reply to further questions, it was elicited that the company had not sufficient funds cither to complete the dredge or to finish the water race to make the dam effective. In any case the engineer had informed the directors that the pressure from the dam, which had been constructed to take the stripping off the iop and facilitate the working of the dredge, was sot sufficient to permit hydraulic sluicing, which: the directors had hoped to commence, with su view to raising funds to complete the dredge, starting where Me3srs Gunton had left off work because of insufficient appliances, etc.

The Chairman further stated that about £450 more would be required to finish the race

and make the dam effective for hydraulic working. Acting on the expert's advice, they had got the dam constructed by day labour instead of by contract. Very fair prospects had been. obtained in the Blue Bell claim.

Mr Calvert thought it was a mistake for the flirectors to have started the hydraulic work. 'He was surprised, on looking through the 'list, to find it so bad as it was. He be9ieved that the greater part of the arrears was fcitterly bad. They were more likely to get i£2oo of the amount than £2000. The fact of "this money not coming in was no doubt the reason that brought them up. At the time of the amalgamation they calculated they would Share a capital of £1000, in addition to their /original capital. Owing to the arrears r>ot coming in, however, it was quite clear they 'could not complete the dam or the dredge. fFhe best plan probably would be to let the dredge stand over, and complete the dam and Bluice. They might get gold sufficient to pay for the dredge. In the present state of the market he did not think it possible to reconstruct.

Mr Findlay said it was a pity shareholders !had not been taken into the confidence of the directors sooner. — (Hear, hear.) It would be •well, he thought, to appoint a, committee to consult with the directors, and see what was to 'te done. The company was floated as a dredging company. It had now developed into a sluicing one. Nearly £1000 had been spent in making a race. If that money had been spent on the dredge it would have been running by now. — (Hear, hear.) A peculiar feature of the operations of the company was that the Guntons, who were vendors, werp directors of it, ijere paid servants of it, and received travelling expenses. *Mr Gunton: I am also the largest contributing shareholder.

.Mr Findlay said he would move — "That a committee of five shareholders be appointed to confer with the directors as to the future operations of the company."

Mr Calvert seconded the motion.

Mr White said he did not think there was any good taking the sten suggested. They were too heavily in debt. He did not see how they ■were going to make any arrangements to finance the company. It would only be a waste of time. He moved that the company go into liquidation.

Mr O'Connor seconded the amendment.

Mr Findlay said the secretary had informed nim that Mr Gunton had been paid £76 for about fouv months' work.

Some of the sh?reholders thoueht Mr Gunton had done very fairly out of the company, but Mr Gunton maintained that, ho'ding about 500 contributing shares, he would probably be the largest loser. He had handed back the whole of the purchase morpv. After a long discussion, the amendment was withdrawn, and the mot, on was passed. The following gentlemen werp appointed a committee:— Messrs Scott, Campbell, Sing Lee, Findlay, and Whetter.

It was mentioned in connection with the arrears that all shareholders in arrear up to and including the fourth call had been pressed for payment.