SPEC GULLY GOLD DREDGING COMPANY.

Otago Witness, Issue 2604, 10 February 1904, Page 25

SPEC GULLY GOLD DREDGING COMPANY.

An extraordinary general meeting oif shareholders in. the Spec Gully Geld Dredging Company was held in the Dunedin Stock Exchange on Thursday for the purpose of considering the financial position, and further to consider the advisableness of passing a resolution in favour of liquidation. Mr J. C. Short (chairman of directorc) presided, and there were seven other shareholders present.

The Chairman stated that the dredge had been working on her present claim for some three years, but the returns had been such that very little encouragement had been given to shareholders. The ground worked had not come up to expectations. A quantity of the ground had been cut off, and the better part worked, and in the opinion of the directors even the better part was not sufficiently rich to warrant a continuance of operations. The financial position was fairly good, but if dredging was continued the company would get further behind, and the directors thought the best course to sdopt was to lay all the facts before shareholders and let them decide what was to be done. If it was decided to liquidate, the dredge was m fair order, and there was a certain amount of ground to sell ; but -d operations were continued, the dredge would be worn rut so much more, and there would be no ground to sell, so that there would then be nothing left for shareholders. In the event of liquidation being decided upon immediately, there would be some money for distribution. The Chairman then moved— " That it bavtmg been proved to the satisfaction of shareholders that the company cannot by reason of its liabilities continue its business, it be wound up voluntarily under the piovisioii3 of the Companies Act of 188? and its amendments."

The motion was seconded by Mr J. Samson

Mr A. Sligo stated that the company had during its tenure paid off a good deal of debt, besides meeting current expenses. Only a short time ago the directors paid off the last £100 of the mortgage, and that in itself showed that there was sufficient gold in the claim to more than pay working expenses. The returns had kept up to an average that would pay a working party, but they would not pay a company with a capital of £6000. If operations were continued, the company would probably incur further liabilities, and there wou-d be less to return to shareholders. The sum of £100 would have to be expended shortly to put the dredge in thorough working order. Mr H. North remarked that if shareholders wished to continue he -was willing to go a little further; but the directors would have to spend £100 on the dredge, and the question was whether they would get gold or whether they would lose the shareholders' money. Mr North also stated that the directors had advanced £600 to the company, for which they had not received a penny in interest, though they had received the principal back.

A former dredgemaster who was present said that he gave the claim a good deal of consideration "while he was there, but he saw no hope of doing any good, and he thought that it would have been as well if the dredge had been closed down then. The dredge was the best working machine that he had seen. His experience of the ground an that district was that the higher one went up the gully the smaller the returns became.

In reply to a question, the Chairman stated that the company's liabilities amounted to about £100.

The motion, on being put, was carried unanimously, and the meeting terminated with a vote of thanks to the chair.