Untitled

Otago Witness, Issue 2528, 27 August 1902, Page 24

GOLDEN ELBOW DREDGING COMPANY.

tailings at the stern. I consider it a hopeless ■case to keep on running, as there is not & poseible hope of ever opening out a paddock or •working this class of ground with the dredge •until It has an elevator fitted up As far as 3 can ccc of the river, from the Galvanic claim down to the Gibbston olainj tailings would be tioublesome, as most of the ground is only giound that could be worked in the winter months when the river is low and dredgeable. •I hope that v6ur company will see their way clear to fit on an elevator, as under the present system oi continually pulling ahead without seeing bottom one cwinot report whether 4he ground is payable or not.- The Chanmen, contiauing his remarks, said the engineer expressed the same opinion a 8 the dredgeniasteT. He believed the Galvanic Company had exsperienced the same troable, which had prelected the claim being properly tested as yet. lit was impossible to get to the Gibbston ciaim et present on account of the low river, lhe dredgemaster had been instructed to close down and put a caretaker in charge. With regard to the financial position, the liabilities amounted lo £336, against which there were outstanding colls to the amount of £3i6, in addition to *ho machinery they still possessed. An elevator woultl, he thought, coat at least £000, and the Question to decide was low to Taise the money to ' procure • one. This was the matter for discussion, and those present could make any suggestions they wished. The tjirecjlors had discussed the matter, and their opinion v.a« that shareholders might, considering tho (position of the company, make an effort to i>ay . In leply to ;» Question, the Chairman stated *hafc the n.ortfeage was Rearing interest at tb» irate of 10 per cent. If the unpaid calls came •in the company would be practically clear of :ali liabilities ,«nd have the dredge and claim •gainst tho mortgage. . I Mr J. Solomon asked if efforts were being ai.ade to collect the calls, the Chairman stating •ai reply that the matter wa3 in tho hands of company's solicitor, and the money was Cradu&llv ooming in. In reply to further questions, the Chairman feaid that no «hare» had been forfeited yet, (but thoa* in, arreat could be forfeited at any Jtime. The^redgo was working just where she .was after being raised. I Mr Ivimey said he thought the dredgeniaster •hculd have known that an elevator woujd be tco.uired to work the claim. F Mr Stevonson said he knew, of sn elevator itbat could be got, and put on the dredgs ai a Jcost of about £200. It had done very little >york, and could elevate tailings to ?, height of fcbout 15ft. AfteT a little further discussion, Air G. Boraman moved that a levy of Is per share, carrying interest at tho rats of 100 pci cent., be ■truck. t The motion was seconded by Mr Smaul. Mr Solomon said he thought the money Itboultl bo earmarked for an elevator, othenvisa xhe shareholders would not Tespond. He abo expressed the opiniou that the directors should ipress to get the outstanding calls in. Mr Ivimey moved as an amendment that a levy of Is 6d per share be struck, carrying 'interest at the rite of 100 per cent. This was seconded by Mr Stevenson.

The motion was thereupon withdrawn, and •he amendment, which then became the motion, *aa put and carried. The Chairman, said tha*, the money subscribed in the shape of the levy would be «evoted to the purchase of an elevator and towards testing the claim. All the -shaieholdei i present agreed to snbIcnbe their quota of the levy.

A meeting of «li*reholdeis in the Golden E.bow Dredgi'i'j Company was held at the office of Mr W. Reid on Friday, there being nbout a dozen of those inter?sted in the company present. The matter for consideration Hvas a proposition to wind up. Mr J. Rhodes, who occupied the chair, said It was not yet too late for shareholders to riso and help the director?. Now was their opportunity to say whether they wished the debentures" to be taken up or not The only other question was one of liquidation, for they owed Mioney to creditors who must be paid. He did Jiot think it would be wise for them to mortgage for the amount th"y would get advanced. There was a temporary loan at present, but »*, was not premanent, and in good faith the directors would have to make arrangements tciicerning it. They would hare to arrange lor at least £600, and they wou'd have to hand ever tho whole of their property for that sum. tie did not think in the present state of the Vnoney market that anyono would lend moie on a river dredge, anu the directors did not wish to moitgage tho dredge for so small a cum. Th.-y would lather sell the dredge and tl'vide any assets among shareholders. A scheme had been suggested by the mortgagee who had lent them £803 temporarily. He p.-o-posed to run the dredge for a month or tv.-o to give the claim a trial. If he d"d that the directors considered that he must have something in proportion to the risk he lan. He vras, in the event of the dredge getting on to payable gold, to have the whole of the gold 3or a month, after expenses had Leen deducted, but he would lather shareholders formed a little guarantee fund. He wou'd find one-thud in tho event of the shareholders finding the remaining -two-thirds. Mr M'Connochie was pienued to find a third, and in that cstse ehs>,re-

holders would only be required to find one-ti-ird. Shareholders had refused to rise to the occasion to get the claim tested before gotng into liquidation, and the directors felt that they were under obligation to the mortgagee for the stand he haJ taken. It was a thing he (the chairman) would tot be prepared to " tackle." If the mortgagee was successful, cud struck gold, any lesidue over and above working expenses, the diTector-5 considered, should go to him. In the event of failure in getting on to the payable wostrthe mortgagee stood to bs a heavy loaeT. Tho directors proposed to aik shareholders not to pas 3 the motion for liquidation at present, but to adjourn the meeting for a month, and by that time the dredge would have been working, and they would be in a better position to consider a pioposal for liquidation. Replying to question 3, the Chairman said it was the Gold Deposit claim they proposed to test. He also mentioned that the mortgagee's lepresentative said that in the event of there bring a good profit he would hand part of tho i'lofit back to the company. The mortgagee's representative said the aredgernfl^ter's estiumt3 of the cost of working for a month was £173 43, and he pointed out that, ii Mr M'Connochie took up the position he had promised to, it would only mean about £65 ox- £56 for the shareholders to provide. The Chairman, replying to a question, said tho outstanding calls wera being got in. They expected to get in another £100. He inenticned that some country shareholders were in favour of selling the dredge and reconstiucting. A Shareholder present said he would make one to provide £5 if the directors could get another 11 to do the same.

The Chadrman then moved that the meeting stand adjourned for a month, the precise date to be fixsd by the directors.

The motion wis carried, and the meetinjj closed.