TRAFALGAR G.D. COMPANY.

Otago Witness, Issue 2579, 19 August 1903, Page 24

TRAFALGAR G.D. COMPANY.

An extraordinary moating of shareholders in the Trafalgar Gold Dredging Company was held on Friday night in the secretary's office, Stock Exchange Buildings, to consider the proposal to write the company's capital down from £3000 to £2250, and then issue 4750 preference shares of £1 eaoh. There was a good attendance of Eb.arehoklcr3; and Mj W. R. Frost presided^

Absent shareholders to the extent of 600 shares were represented' by proxy. The Chairman formally moved the adoption of the proposals of the directors for the reduction of the present capital of tho company and the creation of fresh capital. The piesent accounts outstanding amounted to £1245 10s 4d, which included the interest due on debentures. The endeavour to raise the dredge had baen unsuccessful owing to the nature of the pontoons, which were b;d. It was for shareholders to say whether they were prepared to accept the proposals now brought forward. Mr Harraway said the debenture-holders should first be considered, and asked they had indicated their opinion on the matter. Mr Frost said that the debentures, which carried 15 per cent, interest, might be paid off or be allowed to go on, while another shareholder said that if the proposal were carried out the position of the debenture-holders would be improved. Mr W. F. Sligo stud that the difficulty was that there was a lack of unanimity of opinion on the pnrt of the debenture-holders. The idea held by those who mooted the present proposal was to allow the debenture money to remain on, and if a dredge could be got at a reasonable cost, and the piesent one dismantled and reerected, then with the returns from the top of the claim the debsuture money might be paid off The only way to find out the views of the debenture-holdeis was to submit the scheme to them. . . .

Mr Adcni thought the debenture-holders should first have been consulted. He did not think they were likeiy to sgree to have their debentures turned into preference shares. In his opinion the company were entirely in tho hands of the debenture-holders, and the trustees, if they chose, could sell the dredge by auction.

Mr Harraway said the debenture-holders could not be expected to forego their rights. If they took up preference shares they would want other security. Mr R. M'Donald asked if £4750 was not too much to try to raise in preference shares. He did not see the necessity for the company to own two dredges. Something might be done with the present dredge or the machinery. Mr W. Fenwick questioned whether to salvage the present dredge 'would not cost as much as to buy a new dredge. In answer to a statement by Mr Adam to the effect that the claim had not justified its existence, 01, rather, that of tho company, the Chairman stated that it had not yet had a, fair trial. The ground adjoining the Pactolus boundary was 27ft deep, while the dredge

had bscn working on 40ft ground, and as her elevator was far too short to stack the tailings so as to give her dredging room, he doubtedif she had ever properly bottomed. In his opinion this lack of room was the reason for the dredge sinking, as she must have been coatinually rubbing agninst the tailings astarn. The "proposal, on, being put to the vote was declared carried, a. counter scheme favouring reconstruction, with a total capital of £8500, on lines similar to those pursued by the Bendigo Company and others, not being pressed. A suggestion that 3750 preference shares taken up should bo the minimum was approved, as was also an understanding that all moneys received for preference shores should bo put in a separate trust account. The confirmatory meeting was fixed for September 1.