PRINCE ALBERT GOLD DREDGING COMPANY.

Otago Witness, Issue 2516, 4 June 1902, Page 24

PRINCE ALBERT GOLD DREDGING COMPANY.

An extraordinary general meeting of shareholders in the Prince Albert Gold Dredging Company was held in the Coffee Palace on Thursday for the purpose of considering the financial position of the company. There were 10 shareholders present, and Mr J. H. Hancock (chairman of directors) presided. The Chairman said the story was v«ry easily told. The one difficulty which caused the directors to comt before the shareholders was that the returns had not been sufficient to meet expenses. The sum expended on wages and coal was £759 2s Id, and the value of the gold won was £583 6a Bd, so that there was a loss of £175 15s 5d over the whole period, apart from repairs and other expenses in connection with the dredge. They were somewhat in debt at starting, but with fair returns in the early history of operations the directors hoped to pull through, but when the returns fell off and the "crredge had to be stopped for repairs the difficulties soon became apparent, and they found that before going on again it was necessary to call the sharehr'ders and debentureholders together. Personally, he was afraid 'they would not be able to raise sufficient money to get them out of their difficulties. One of the debenture-holders, who had debentures to the extent of £500, wanted his money, and to meet that gentleman's request was a difficulty the directors could hardly see their way to- overcome at present, and at the same time find sufficient ■money to further prospect the claim. "With regard to the work at the claim, it was disappointing from time to. time. Some weeks the dredgemaster had got good returns, but other weeks -the results were not encouraging. Great difficulty had been experienced on account of black sand, of which there was a great quantity, and it was very hard to save the fine gold. They had an excellent died a. and to all appearances this claim shov\od no difficulties in the way of working. Lack of sufficient gold was the only cause of their failure up to the present. In reply to questions by Mr J. Rhodes, the Chairman stated that debentures tc the extent of £1500 had been taken up. Four hens had been registered against the company for wage 3 to the amount of about £85, but there were other wages due to the extent, of about £140. These were the on'y hens prior to the mortgage. . . Mr Rhodes thorc moved — '" That -the trustees for the del»entuie-ho!c!ers be agked to take poiscssion of tlir dirdge; ar.d be asked to gi\e {he company s'li oppoitvmity cf buying back the'dfedge "and reconstructing the company an a. basis of 12000 capital, and that this meeting ■ be adjourned for a month.'' Mr Rhodes, in I explainipg his motion, said that the company would not liquidate, as they had r.o funds to do so. All expenses in the way of interest, etc., would stop from the time of the passing ot tha resolution, and the only expense entailed would be'the cost of sending out circulars and getting the new company floated. The existing sharei holders should be given the first opportunity to come in, and then the debenture-holders, the latter of whom he proposed should be asked to take up shares in the new company in lieu of their debenture.". Speaking for himself, he j was quite prepared to take up 550 shares in ' the new company instead, of the debentures he held at present. In answer to questions, the Chairman stated that the dredge had been at work for a period of four and a-half months, and it had cost over £900 to wm gold to the value of £500 odd. , Some of the expense was, however, incidental to the working of a new dredge, such as alterations, etc. He did not think there v.ould be any difficulty in coaling during the winter. The coal cost 4As per ton delivered at the claim. The dredgemaster was acting as caretaker at a ' saiaiy of £3 per week. Mr Eaird, the ergineer on the rLeilge, being asked by the chairman to express his opinion with regard to the value of the claim, said he | thought it worth a further trial of another two months at least. He believed parts of the ' claim wonld prove more than payable if worked under favourable conditions. The best gioantl was cniy struck a-t the cud of a. lead o[ wash, and liiere was a lead entering the big flat, which, he thought, would pay well, and : which could be easily bored. There was plenty i of ground in the whole claim. He knew several 1 parties that had worked 011 the beaches for [ years, and they spoke very highly of the j ground. Some floury gold was lost by the ' dredge, but he did not think any dredge could save it. 'Iheio would be considerable trouble if quicksilver wero used for saving gold owing to the presence of a large quantity oi lead. Mr R. M. Marks moved as an amendment — " That the shareholders be requested to pay a levy of Is per share to enable the directors to thoroughly prospect ihe claim, such levy to oe returned out of the first profits which may be earned after paying interest on the deben- j tuves. The amendment was seconded by Mr Arthur, but on being put to the meeting was lost. Mr Rhodes's motion was then put, and carried unanimously. A vote of thanks to the chair terminated the proceedings.