ALPINE CONSOLS GOLD DREDGING COMPANY.

Otago Witness, Issue 2524, 30 July 1902, Page 26

ALPINE CONSOLS GOLD DREDGING COMPANY.

TO THE EDITOR. SrR.— A meeting of shareholders in the Alpine Consols Gold Dredging Company is called for Wednesday, 30th inst., for the- purpose of consideration of a resolution iox liquidation. I hope shareholders will not Eubmit to the less of their claim and dredgs xn the barefaced 'manner proposed, and that an amendment will he proposed for rescinding the resolution, or that the liquidator shall be the official assignee. Supposing a minority may not be able to carry cither, it will still be competent for any sharebolder or shareholders to petition the court for administration by the official assignee, who .•will have power to call on the directors to explain a few things. \ Some 15 months ago debentures for £2500 were issued, and "the dredge .started work and -got good goid. Out of the profits the directors almost immediately paid ofi £500 of the deben'turea. New that was an illegal act, inasmuch •as the debentures were specially authorised by shareholders for a fixed term, and became capital of the company, and ro portion of it had a right to be paid off from gold proceeds if by such act the company v»xs thereby weakened, no more than a company can pay *>3 capital out of current profits. It required the consideration of shareholders at an eirtra'ordinary meeting or the next annual meeting to do so. The season waa a short one, and the payment ©i this £500 left the company short of cash instead, of having sufficient 'n hand to start dredging this season. The dredge was consequently allowed to lie idle this winter, although the river was in excellent condition for working. The result was that the debenture-holders, drawing 20 per cent, interest, and all of them directors, stepped in and iorzcloeei on the property. The directors now reconstructed the company in 7000 sharps, 3530 paid-up and 3500 contributing, closed ihe hbt at 6000, and started the dredge, with the resxilt that splendid retuiiis were obtained right away. Had the directors not committed the illegal act of paying off the £500 worth of debentures, had they started the dredge when work ought to have beeu commenced, it is easy to see that the dredge could have won through, and the original shareholders would see some return 'For their money. I understand the new company is about to declare a dividend for the first three weeks' nork. Let us take legal action, and insist on the matter being brought before the court Eor equitable adjustment. — I am, etc., Alpenstock.