VOLTAIC DREDGING COMPANY.

Otago Witness, Issue 2545, 24 December 1902, Page 23

VOLTAIC DREDGING COMPANY.

An extraordinary general meeting of shareholders in the Voltaic Dredging Company was held on Thursday morning for the purpose of considering the position and prospects of the company. There were 40 shareholders present, and Mr E. C. Reynolds (chairman of directors) presided. The Chairman, in explaining the position, said the company was perfectly solvent, but the directors thought that as time had worn on and they were apparently no nearer getting the dredge on to the claim they had better call the shareholders together, especially as some of the creditors were beginning to want their money. Everything would be paid in full, but the immediate necessity was a little pressing, as the directors wished to pay off the amounts due to the creditors and at the same time reduce the bank account somewhat. The bank had been very good to the company, their account having stood without any reduction for some considerable time. The directors had given a, joint and several guarantee, covering themselves by security over the dredge. The I bank account now stood at £1106 15s 7d, and other amounts brought the tdtal liabilities up to £1360 lls lid, while the company had assets to the extent of ' £846 18s 6d, levying a deficiency of £573 13s sd, against which' there -was .the dredge, tools, accessories, and so forth. The dredge was one of the best in the district, > and would realise much more than -sufficient ; j to cover the liabilities. The position was, • however, not satisfactory, as the company had '■ j to face some expenditure in taking the dredge ' ■ up to the claim. The latest advices w-ere to ' 1 the effect that the river was now in a favourable condition, and also that the lake was at I a high level. If the dredge could have heen | shifted up a month or two earlier it would not have bsen necessary to call the present meet- ' ing. The chairman thought the best course to be adopted was to call up the uncalled capital, pay off the sundry creditors, and pay a certain amount to the bank. There were 2500 contributing shares in the company, and 500 of these were still unallotted. He thought these 500 shares could be taken up pro rata. by the I shareholders. He would take up his quota, and, if necessary, double that number. Ths ; company would then have the dredge, and would be absolutely free. This would enable them to take the dredge up and put her on the , claim. The engineer was on board the dredge as caretaker, and he was getting everything into thorough working order. The Secretary then read a letter from Messrs N P. Kloogh (dredgemaster of the Cromwell dredge) and F. Kitto (late dredgemaster of the Eoyal Maori dredge), who had, in company with Mr Werner, inspected the river from the dredge's .present position to the top of the third fall. The writers stated that the height of the river on. November 27 was such that they were of opinion that the dredge could be taken up with gcod gear and careful management. They advised that the buckets and links, bottom tumbler and rollers be taken off in order -to give the dredge the best possible chance to rise io the stiff current. They-aleo advised that the directors should assure themselves that the lake was a good height, otherwise the river • could not be 'depended on to remain high , enough for the time necessary to shift the, dredge above the falls. There were Several shelves of rock that required removal. Mr William "Fenwick asked how long it would ! take to get the dredge up to the claim, the , Chairman replying that he thought about a fortnight would be sufficient to accomplish it. In reply to further questions, the Chairman stated that the shares were preference shares. He did not think there would be any difficulty in getting them taken up by shareholders. A j new headline, of exceptionally heavy material, would be required. The dredge had been overhauled and the winches put in good order. The Secretary remarked that he had explained the circumstances to several shareholders, who seemed quite willing to fall in with the proposal. The Chairman then stated that the calls on the 500 shares could only be struck monthly, but shareholders could take up small lots and pay the whole amount due at once, so that the bank account could be reduced. The creditors had been very good to the company, and had atood by and helped them considerably. Tho £500 would not clear all the liabilities, but he would like to see the directors released from their joint and Several guarantee. One of the directors had resigned, but his name -was still attached to the guarantee The privileges attaching to the preference shares was that in | the event of dividends being paid the holders | of these shares got £1 per share back, after I which the -shares- -ranked as ordinary shares, while in the event of liquidation the money- . available after the accounts were paid, would ! be distributed among the preference sharei holders up to £1 per share, after which all the [ shares in the company would be placed on an ! equal footing. [ The Secretary explained that the directors J wished to transfer the mortgage from tha bank to shareholders, and thus save interest. The Chairman moved that the 500 unallotted preference shares be issued pro rata to existing shareholders. The motion was seconded by Mr H. Norman and carried. The Chairman remarked that he hoped those present would take up their quota of shares, and get other shareholders to do likewise, so that the directors could proceed immediately. With the present high river there should be no longer delay.