THE UPPER WAIPOEI ALLUVIAL GOLD DREDGING COMPANY.

Otago Witness, Issue 2623, 22 June 1904, Page 26

THE UPPER WAIPOEI ALLUVIAL GOLD DREDGING COMPANY.

10 THE EDIT OH.

Sih,— As the holder of contributing shares in the Upper Waipori Alluvial Gold Dredging Company, I was the recipient the other day of a circular, issued under the authority of the Board of Directors, stating that as the share capital was " divided into 2000 shares fully paid up to 16s 8d per share, and 2800 contributing shares of 16s Sd each, paid up to 9s 2d per share," it was resolved to call up the liability of 7s 6d per share on the latter. " Your directors," the circular goes on to say, " have for some time had this position under serious consideration, and knowing that eventually steps must be taken to equalise the shares, they have decided that the time is now opportune for doing so. ... The directors think, therefore, that the calling up of this capital should not press unduly on the shareholders generally, more especially as there is every reasonable prospect of dividends being paid during the winter. Further payment for coal ■will not he necessary for some time, the winter's supply having been stored on. the claim . and paid for." So says the circular. What object, then, is to bs served in calling up the 7s 6d per share on the 2SOO contributing shares? The dredge is now (and has been for the last two r .or three years) on payable gold, regular dividends have been paid, with a reasonable prospect of further dividends (in the words of the circular) being paid during the winter months, and a large supply of coal is stored on the claim and has been paid for! What object, I again ask, is to be served in calling up the 7s 6d per share on the 2SOO contributing shares? Is it intended to build up a reserve fund to provide against anything unforeseen happening to the dredge, or is it intended that the money be on' hand, so that when the claim is worked out, and a resolution carried to liquidate the company, the holders of vendors' shares shall have their whack of the money (almost half of the total amount) now proposed to be drawn out of the pockets of the unfortunate contributing shareholders? One would naturally think that the latter is the object in view ; and, if it be so, the contributing shareholders should meet and resolve to oppose this little move on the part of the Board of Directors, which, it I mistake not, is almost entirely composed of holders of vendors' shares or their nominees! I will join in an3 r action that may {bus bs determined upon, and at the same time will take another opportunity of le t^ng in a little light on the way in which the company's business has been, and is still, carried on. — I am, etc., A Disgusted Shassholdeh.