THE LATE WOODSTOCK DREDGING COMPANY.

Otago Witness, Issue 2565, 13 May 1903, Page 25

THE LATE WOODSTOCK DREDGING COMPANY.

The syndicate which purchased the Wood- ! stock dredge and claim at auction on Wednesday last consists of a few of the largest deben-ture-holders, whose intention ia to sink a number of holes about 10 yards back from the present face, for the purpose of ascertaining whether the huge blocks of stone that have hitherto been met with in such large numbers extend back much further into the low flat

terrace, where the dredge has teen working. People who know the ground well'believe that if the dredge can be worked in about another 35 yards there will not bs much to impede her further progress. There is a deep channel running along the base of Brighton Terrace, which skirts the whole of ths west side of the claim, aud this channel is the old bed of the Hokkika River, but the Jformation of the surface there gives no indication that there is such a channel. Nevertheless, it has been proved to exist. The late company sank shafts in this portion of the claim, and obtained excellent prospects, although none of the shafts were bottomed. Work will be commenced immediately under a capable and trustworthy manager, and. if the results ba favourable and the syndicate feel confident that the dredge can be taken in, then a limited liability company with a very small capital will be formed, but the shares will be allotted only to debenture-holders and shareholders in the old (company. The amount raised b> the issue of debentures was £1500, and of this sum four of the directors provided exactly one-half. The total number of deben-ture-holders was 35. The trustees for the de-benture-holders took possession, and sold the whole of the property for £610: The lien and preference claims amount to £266 ss, so that the debenture-holders will have *o be satisfied with receiving back £343 15s—that, is, about 4s 6d in the pound. Thi directors themselves are very heavy losers, having lost not only the greater part of their debenture money, but also the whole of their shaie capital, which amounted to nearly one-half of the total capital of the company. And in addition to this loss they contributed a large portion of the levy that was raised somo months ago. However, they have not yet lost heart, and are going to make another effort, and it is hoped that this time they will meet with the success that they deserve. The disasters which the late company met with weTe entirely owing to the mistake that was made in selecting the site for commencing operations. Had the dredge been built anywhere near where the first shaft was sunk the Woodstock Company would probably now have been paying dividends instead of being in liquidation. The syndicate from time to time will furnish the press with reports of the progress and character of the work done by those who will conduct the prospecting operations. SALE OF THE WOODSTOCK DREDGE AND CLAIM. Only about half a dozen persons attended the sale by public auction on Wednesday of the Woodstock dredge and claim. The property was started at £550, aud run. up to £610, at which sum it was knocked down to Mr James Brown, as agent for a syndicate. The auctioneers were Messrs Park, Reynolds, and Co.