THE DOOLAN'S CREEK COAL COMPANY.

Otago Witness, Issue 2541, 26 November 1902, Page 24

THE DOOLAN'S CREEK COAL COMPANY.

(Fnoii Our Own Correspondent.) ! This company having perforce had to suspend work during the winter, are more actively pursuing operations to develop their property. Mr James Begg, cue of the most experienced coal miners in the colony, and who spent his youth in various coal mines in Scotland, and Mr Geo. Crabbe, of Bannockburn, have been employed lately in thoroughly testing the depth and quality of the seam. Up to date they have driven an adit 100't in length, 6ft in height, and 4ft 6in in width, through the middle of the I seam, leaving splendid, hard coal in the roof, [ sides, and bottom of the drive. There are now , 40 tons of coal at grass waiting to be caited thence to various portions of the district. It was the company's idea once to erect an aerial tiamway from the mine to their proposed depot near Gibbston, but as it would have necessitated a pretty heavy outlay of capital it has been--deculed to build a substantial tramway of light steel rails instead. The engine house will be on the top of the saddle, and will haul the coal trucks from the pit in Doolan's Creek to the summit, and thence will lower them down the hill to the depot, the full trucks bringing up the empties on another line of rails. Mr Recce Williams, an engineer of wellknown ability, is afc present surveying c-nd laying off the proposed tramway, which, when finished, will enable the best coal in the district to be supplied to dredges ai d householders. From surface indications this company possesses an unlimited quantity of superior coal, as it crops out in several places on their properly, anrl there being an immense depth of overburden on the co?l, it is a guarantee of the -latter being o: a hard and superior quality. PERRETT'S JUNCTION LE*AD GOLD DREDGING COMPANY. ' An extraordinary general meeting of shareholders in the Perrett's Junction Lead Gold Dredging Co. was held on Friday evening for the purpose of considering the advisableness of voluntary liquidating. There were eight shareholders present, and Mr A. A. Finch (chairman of directors) presided. The Chairman explained that the delay in calling shareholdrrs together had taken place in. order to allow the directors to deal with the vendors, as it was thought that they could do so more easily than the liquidator. Satisfactory arrangements had been made with all the vendors except two, and it was expected that the two would agree to the terms also. He formally moved that the company be wound up voluntarily. The motion was seconded by Mr H. Adam, nd carried unanimously. On the motion of Mr Adam, seconded by Mr H. Stokes, Mr W. E. C. Reid was appointed liquidator, at a fee of 25 guineas. The confirmatory meeting was fixed for Friday, December 12, at 8 p.m. A vote of thanks to the chair brought the meetiug to a close. LONG VALLEY DREDGING COMPANY. The following report for the year ended October 31 has been issued to shareholder in the Long Valley Dredging Company — I " The past year's operations have been unsuccessful in either winning a payable qurn- : tity of gold or proving the value of the claims. The dredge was moved to the upper or main claim m March last, and succeeded in getting bottom on only one occasion, when a fair return j was secured. She has worked over a small area of the claim, and won a total of 22Goz 1-ldwt sgr, worth £872 17s. 9d. In December last a levy of Is 6d per share was made to provide working expenses, and was met by the directors and 44 members pubscribiijg the full I amount; 38 membeis paid Is only, and 32 did rot contribute. The total subscribed amounted to £402 18s. The trial workings revealed the fact that the ladder was not long enough, and when this was manifest no funds remained at the disposal of the board wherewith to extend it. In this emergency one of the vendors, who is al.=o the holder of a large number of contributing shares, most generously advanced sufficient money to make the alteration, which has now been carried out, and dredging operations will be resumed forthwith. The dredge in all other respects has proved itself a good and suitable machine, and is in good order. The directors are still personally responsible for a large sum advanced on their guarantee by the bank, and have drawn no fees for the past two years." The balance ilieet shows the total liabilities to be £10,720 0s Cd. and the assets (including vendors' interest £1582, dredge £7885 9s Id, and cost of ladder extension £266 19s Gd; £9734 8s 7d, leaving a. deficiency of £955 lls lid. The revenue account shows the total expenditure for the year in connection with working the dredge to have been £1197 12s 2d, and value of gold won £863 7s lid. leaving a debit balance of £334 4s 3d. The profit and loss account opened with a. debit balance of £501 16s, and to this has been added legal expenses £15 10s 2d, salary £50, interest £84 Is 6d, and balance from revenue account £334 4s 3d, giving a total oi £385 U§ lid.

TEVIOT GOLD DREDGING COMPANY.An extraordinary general meeting of the Teviot Gold Dredging Co. was held on Monday evening in the registered office of the company. Bond street. Mr H. Adam (chairman of diredtors) occupied the chair, and there were about; a dozen shareholders present. The Chairman explained the position of the company as set forth in a circular issued Uf shareholders. This circular stated that after working their own claim, for some time uaprofitably, the Roxburgh Lead claim was taken on tribute, and during the six months' working the debts of the Teviot Company were reduced from £2000 to £500. The tribute agreement had now expired, and, owing to not being able to obtain renewal, it was proposed to form a new company, called the New Teviot Gold Dredging Company (Limited), with a nominal capital of £3500 — 1750 shares to be allotted pro rata to the Teviot Gold Dredging Company's shareholders in consideration of their dredge and claim, and the remaining 1750 be allotted to the Roxburgh Lead Syndicate in consideration of their special claim. The new company to take over liabilities and) to pay expenses of liquidation. The size and position of the Roxburgh Lead claim, was explained by the aid of a map, and, in answeu to a shareholder, it was stated that the Teviod Company's dredge was quite large enough to work the claim provided the ladder was lengthened. This waa proposed to be done by the new company. Mr Robert Lee remarked that they were in a much better condition than many another company, inasmuch as, through the energy dispalyed by the directors, and especially by the secretary, they were able to keep theii* heads above water. They also had the satisfaction of knowing that their dredge was obtaining fair returns on the ground which, the new company would have an option over. He strongly recommended shareholders to back up the directors in their scheme of reconstruct tion. I Other prominent shareholders endorsed M* j L? o 'a remarks, and, on the motion of Mr H. Adam, seconded by Mr Robert Brownlie, tha following resolutions were carried unanimously:—(l) "That the Teviot Gold Dredging Company (Limited) be voluntarily wound up, with a view to its reconstruction, and thai* Thomas Johnstone M'Kerrow, of Dunedin, ba and he is hereby appointed liquidator of tha company for the purposes of such winding up." (2) " That the said liquidator be and he is hereby authorised to enter into an arrangement with a new company about to be formed for the sale to it of the whole of the assets o£ this comapny, in consideration of the allotment of certain shares in the new company upon the terms of reconstruction set out ia the circular enclosed herewith." During the course of the meeting a letter was read from Mr James Lithgoe, in which that gentleman gave it as his opin'on that the Teviot Company should not reconstruct on tha lines of the above resolutions, but that the old company should be put on a sound financial ba-sis and should work their own claim. It was pointed out that the reports from some of the oldest residents of Roxburgh were to the effect that in their opinion the Roxburgh Lead option was the better claim. TEVIOT GOLD DREDGING COMPANY (LIMITED). TO THE EDITOB. Sir, — T am an unfortunate shareholder itt the above company, and have received a circular from the secretary containing two special resolutions from the directors for the consideration of the shareholders. The second ia the one that I do not agree with, and it reads i-s follows.— " That the said liquidator be a-ndi is hereby authorised to enter into an arrangement with a new company about to be formed) for the sale to it of the whole assets of thia company in consideration of the allotment oE certain shares in the new company upon the teims oi construction set cut in the circular enclosed herewith. ' My reasons for not doing [ so are as follow: — The first cost of the dredge was about £9000, and the present value should at least be £4000, but we are advised by the directors to allow a new company to be formed with a capital of £3500, m 3500 paidup shares of £1 each, 1750 of these shares to be allotted pro rata to the shareholdera in the Teviot Gold Dredging Company in consideration of the company's dredge and claim' and the remainder, 1750 shares, be allotted to the Roxburgh Lead Syndicate in consideration for their special claim. In my opinion, the Roxburgh Lead Syndicate's claim/ is almost valueless, and I will give you my reason for saying bo. The returns for the past three months, or frorni August 9 to November 1, are 210oz sdwt, averaging 16oz 3dwt per week, and, owing to the bank becoming deeper as the work is continued, and) the consequently greater difficulty in working it, the returns will gradua'ly become > less. Yet for this claim we are asked to consent to the allotting of 1750 shares, or half the assets of the proposed company. In my opinion, the Teviot claim is the more valuable of the tw<?, because the prosoecting that was done by the dredge on the claim was done hurriedly, tha dredge being moved up or down the river instead of being worked across. I think it would be wise to reconstruct the company in order to put it on n sound financial basis, seeing the debt is so email. A small company only would be required, and the presant shareholders