GREENSTONE CREEK GOLD DREDGING COMPANY.

Otago Witness, Issue 2509, 16 April 1902, Page 24

GREENSTONE CREEK GOLD DREDGING COMPANY.

A circular, accompanied by a half-yearly balance shoet, has been sent to the shareholders in the Greenstone Creek Gold Dredging Company with reference to the present financial posit on. After jjointing out that the liabilities exceod the cash in band by £246 7s 3d, the directors go on to state that this position has been reached somewhat suddenly, owing to several reasons. First, the dredge was not working for some five weeks during and after Christuiastide. This delay was partly caused by the dismissal of the crew, partly by the necessity of giving the dredge a thorough overhaul, and partly bpepuse a record flood in the creek unshed her I:igh and dry. Second, the cost of the overhaul consideiably exceeded the estimate. Third, the late dredgemaster had allowed b3ck accounts to accumulate, which, in response io an advertisement calling for same, were all biiddcily presented for payment. The not result being, as pointed out, a deficiency of £246, it is evident the dredge will have to be mortgaged, or capital immediately raised in some other way. to pay off liabilities and continue the work. The opinion of shareholders on the following schemes is therefore solicited ■ — (1) The straight-out mortgaging of the dredge ; (2) the is c ue of debentures — 100 at £5 each, bearing interest at 20 per cent.. {■?) the voluntaiy contribution of Is per share {,£550), to be repaid to shareholders, plus 100 per cent., out of firft roM , (4) the reconstruction of the company. The amount required by the management is £500, £'250 of which will pay off th present liability, the remaining £250 b^mg for future woikiiipc f- uenses. (If only 307. pT wee-k i« avenged fLc ilmvc .(mount will last four months, unless <-om' > unforeseen accident occur.s.) Shareholders ure asked to beai 111 mind— That the dredge has jiißt xe-eived s. thorough overhaul, and is in good working order, so that repairs should not be required for several months; that the result of the last 20 weeks' dredging, to March 31, has been an average of lloz 9dwt per week, that the total expenses per week amount to about £50; that the dredge is steadily nearing the Chinese wingdam, where inability to cope with the water forced the Chinamen to abandon a rich lun of gold ; that shareholders have before them the most favourable time of the year for drc-dging. The company has now a dredgemaster who is not only a good dredging hand, but is also reliable in his attention to business matters, and has full control over his crew.