LAFRANCHI'S FREEHOLD G.D. COM PANY.

Otago Witness, Issue 2561, 6 May 1903, Page 25

LAFRANCHI'S FREEHOLD G.D. COM PANY.

| The p.nnual meeting of Lafranchi's Freehold j Gold Dredging Company was held at the Stock Exchange on the evening of 30th April, when the chairman of directors (Mr S. N. Brown) piesided. The Chairman, in moving the adoption of tha report (already published) and balance sheet, said it had been expected at last annual meetingthat the dredge would have been put to work in a fortnight. It was formally opened, but at that time the weather wps severe and heavy frosts set in, added to which there- was some difficulty with the machinery, as there generally was with new machinery, so that the dredge did not commence work properly. Then a. mishap occurred ; the top tumbler s-hifted, and the frosts continuing seriously hampered operations, as the dredge was worked by water power, so that it was not until October that the company, got a satisfactory run out of the dredge. Since then the dredge had done fairly well. The returns had not been what were expected, but this was largely accounted for by the very small amount of ground worked. Little over an acre had been worked, owing to the extreme tightness of the ground; but for the area tha wash had been rich, for 5720z had been wen tir> to March 31. No doubt had three times tfia area been turned over the returns would have been very satisfactory indeed. When the dredge commenced work the finances of tha company wore in a very critical condition, and numbers of companies were* going into liquida-< tion ; as a consequence the credit of dredging companies was at a very low ebb, but the directors worked with a will and kept the company going, with the result thai it was now practically free of debt. The directors found the water-power working most satisfactorily. The tight ground had been a greaK drawback, but the directors had procured, and | had fitted, a breaking down plant, which they I believed would be an immense advantage: I Some d 'faculty was experienced with the silt, and a silt elevator had been provided, whicli met the trouble very well. Direct power had 1 ! also been applied to the winch, and at the present time the dredge was thoroughly well equipped in every department. He trusted that: the ensuing year's operations would prove very profitable to shareholders, and he believed they : would. The balance sheet did not require much comment, as no doubt shareholders had thoroughly analysed it. Since it was printed the engineer's balance of commission of £132 had been settled by payment of £10? 10s ; the royalty on water-power patent extended over a period; while the amount of cash due to the vendor was now removed from ca-pital account and made contingent on the dredge earnings. Mr Duthie seconded the motion, which was carried after a few questions relating to the working had been asked and answered. Messrs S. N. Brown and J. J. Connor, who retired from the directorate by ballot, were reelected without opposition, and Mr S. T. Mirams was reappointed auditor. Mr Connor, in returning thanks, predicted very handsome returns during the coming season. He advised shareholders not to part with, their shares, which would, he said, be soon worth in value very much above par. Mr Brown said he did not think there was a company that had had less dealings in shares than the Lafranchi. The great body of shareholders had taken the shares fcr investment and not for speculative purposes. There might be a few parcels of shares floating about in the hands of brokers for Stock Exchange purposes, but the greater nnmber of shareholders were holding their shares for dividends. He was confident the trust of the shareholders would be well repaid. In answer to a shareholder, the Chairman said the- breaking down plant consisted of a 2m sluicing nozzle, supplied by a 4in pips running down the ladder and playing on the face under the water at the bottom tumbler. Another line would be fitted at the other side of the ladder, and the combined force of the two streams would bring down the cement-like face satisfactorily. It might be thought that the" nozzles working beneath the water surface and forcing the streams through a 3ft body of water would lessen the force almost to nothing; but this was not so, as the splendid work done by the nozzles proved. A motion passed by the directors, recommending the shareholders to take into consideration the recognising in some tangible way, when the company attained a position to warrant it, the valuable services rendered to the company by the chairman (Mr S. N. Brown) was considered 1 ! Mr Brown retiring meanwhile. The directors present highly eulogised the ■foresight and good management of Mr Brown, who had saved the comoany a large sum. Mr Davidson said the company would not have possessed its very valuable water rii»ht« were it not for Mr Brown, and would have been payinsr £1000 a year for coal. In various othei directions the chairman's services had been ol ereat monetary value. He moved — " Thai this meeting of shareholders expresses its hearty appreciation of the services rendered to the company since its inception, and particularly during a critical time in its history, by the chairman (Mr S. N. Brown), and authorises the directors to recognise these services in somi tangible way as soon as the finances of the company warrant this being done." Mx Connor seconded the motion, and in doio?

so scid it was entirely owing to Mr Brown that the company was not 111 liquidation now.

The motion was carried unauimous'y, Messrs !iuld and Greenwood being associated with ihe directors in putting it into effect.

A vote of thanks to the secretary (Mr J. Davie) for th° careful and efficient manner in R'hich he had looked after the company's affairs n&s recorded on the minutes. Th:s concluded the business.