CROMWELL GOLD DREDGING COMPANY.

Otago Witness, Volume 14, Issue 2648, 14 December 1904, Page 27

CROMWELL GOLD DREDGING COMPANY.

I Tho sixth annual general meeting of share- ( hdlders in the Cromwell Gold Dredging Cornpan ywas held on Thursday afternoon. \Mr A. iJathgate (chairman of directors) presided, and there wer-J 12 ottier shareholders present. Tho Chairman, in moving the adoption of the annual report (already published) and balance sheet, said shareholders would observe from the report thai the directors referred to the past rear's results as somewhat disappointing in several respect?. The first disappointment was the failure of the claim which the company took up at the mouth of tho Bannockburn. When the dredge was caught by the waterspout which, canre down the Banrockburn she was on very good gold, "and everything soemed to point to the run ot gold coming from , the Bannockburn Creek. The rest of that ground did not pay so well because there was a large overburden of debris as a result of thi waterspout, but the directors thought that when the jnouth of Tho Bannockburn proper was reached good returns would be obtained. In that, however, they were disappointed, because the reef rose quickly, and there was really no wash there. Alter that the returns from the No. I- dredge, which was working up the river, fell off, and Mr Kloogh, thfe dredgemaster, gradually proceeded up the river, xat dredging the whole way, bat testing tho ground in. different places. The directors had always been led to expect that this ground would bs highly profitable, but for a considerable distance, both above .and below the bridge, tlie tesults were very poor. The upper part of the claim was expected to be very rich, as the directors had always been told, there wa3 very good gold at that place, in addition to which the Electric Company had get 'good returns close to the Cromwell boundary. The run of gold had, however, apparently stopped before it reached the Cromwell claim. The Cromwell Company has crossed tho Electric Company's boundary, in accordance with arrangement, but had got uttle or no gold at all. There had, therefore, been a succession of disappointments. The company's late dredgemaster (Mr Kloogh) and the present dredgemasters — Mr Bryce (.No. 1) and Mr Woodhouse (No. 2) — were of opinion that there was not much more, if anything, to be got out of the claim. As was indicated in the report the directors realised *hn.t some months ago, and they decided to see what should be done in the future. They were recommended to take up two claims on. the Ciutha River, and this was done. Boring rods were obtained, and a number of bores were put- down, in different places under the superintendence of Mr ICloogh, but the results were again disappointing. '±"he main objection was the great depth of the groxind, and apparently the whole of the wash, was not gold-bearing. It would nave been a costly matter to have dredged those claims^ and probably it Would have been found that their dredges were incapable of reaching -the bottom. These claims were accordingly abandoned. The question now remaining was : What was to bs the future of the company? Besides the claims the directors had taken up several others were offered, but most of them were unsuitable, either on rjecount of price, the situation of the claim, or in some other respect. There were still two claims left, and Mr Talboys reported verbally that he thought one of them could be acquired for about £100. This claim was situated on the Lowburn, but neither Mr Talboys nor Mr Kloogh liked to take the responsibility of advising tiie company to purchase it without further testing it. It would probably cost about £700 or £1000 to get one of the dredges to the cuiim and open the property out. Ihe company had a deposit of £1500, and if the claim <did not prove payable that money would probably be irittered away, and the directors were not inclined to recommend the company to take up the claim. Another course would be- to sell one of the dredges and retain the other until the summer was over and then test the old claim further. If this were done, however, he thought the returns would 7*ay littte more than working expenses, and the reserve would probably disappear btfore any dividends wera paid. Many parts of the claim tha. were left when the No. 1 dredge was working up the river in the ex- • peetation than they would tt — ove payable when worked again had oe-m. worked, but without very gooo. results. The only other course 'remaining was to face the inevitable and decide to go into liquidation. In order to do that a special meeting would have to be called, but he thought it desirable that those present should give some expression of opinion on the point. .If shareholders favoured liquidation , he would advise that a dividend be paid out of the money Ajn hand, and that liquidation be then decided upon and the dredges sold. ! The motion was seconded by. M.i W. H. 1 Frost.

In reply to questions, the Chairman stated that both dredgemasters were now employed as caretakers.' The dredges had been kept in good repair, and were now in very fair condition.

The motion was then pxit and carried unanimously.

The retiring directors {Messrs Baihgate and Janres) were re-elected." a&d the retiring: auditors (Messrs Crawford and Bartleman) were reappointed at the same remuneration as they received previously.

Mr H. North said he knew the claim very well, and he had certainly thougtti from the natnre and appearance of the ground that when ihe company got its second dredge the claim would prove a second Electric. He thought the best plan was to put the company into liquidation without any delay. The company had something like £1600, and the shareholders should secure that amount His experience had bean that when companies had got into similar positions they had frittered away everything they had and. then decided to go into liquidation. The dredges were in good order and" should sell readily. Boring had been simply a case of money thrown away in every instance, and the returns obtained had been very different from those indicated by the -•results from boring. He would move that it be an instruction to the directors to take the necessary steps to have the company wound i>p as speedily as possible. The motion was seconded by Mr Frost and carried. A vote of thanks to .the chair brought the meeting to a close.