DAVIS BEND DREDGING COMPANY.

Otago Witness, Issue 2649, 21 December 1904, Page 33

DA VIS BEND DREDGING COMPANY.

An extraordinary general meeting of shareholders in the Davis's Bend Dredging Company was held in the office of the secretary (Mr R. T. Wheeler) on the 13th inst. to consider a resolution to the effect that the company be wound up voluntarily. There were 11 shareholders present, and proxies representing more than 2000 shares were laid on the table. Mr J. C. Thomson (chairman of directors) presided.

Mr R. S. Black moved— " That it has been proved to the satisfaction of this meeting that the company cannot, by reason of its liabilities, continue its business, and that/ it is advisable to^wind up the same, and that the same be wound up voluntarily." The motion was seconded by Mr J. N. Xiawson.

Captain Sundstrom said he thought it would be unwise to go into liquidation. Shareholders had paid up 18s per share, and tJiere only remained another 2s to be called up, •which,' when paid, would give the company a fair chance of testing the two claims. They only needed a river similar to that of two years ago to work the two dredges, when they could get good results. The state of the river last year was such that the No. 2 dredge only had five returns, and during the time she was working she was continually baling drift. There were a number of cans yet to come in, and should .the company continue in existence , there .would be a better chance of recovering these calls. He thought that if they held on it would be. better- -to sell, one dredge, but if they were forced into liquidation they would ao-fc get much for -the two dredges.- He had studied the position carefully, ,and would oppose liquidation. "* A, shareholder said he thought that should they adopt the course, -suggested by Captain Sundstrom they would have a better chance of "disposing of one of the dredges than they ■would have, .later _on.. The -lower dredge was * good .one, but was not suited for working -where she was. He thought it would be » great mistake- to liquidate. - Mr R. T. "Wheeler said that if they did go into liquidation the liquidator would have to make Jthe call of 2s. Roughly speaking, the company was £500 in debt and if the call was made about £1000" would be available. It ! altogether depended on -what the- dredge and claims realised as to how they would come out. TKe upper dredge «had paid very' well during "the time she was working, and' tHfey should wait for an opportunity to see if she waa still on gold. Two Shareholders mentioned that the diedge -was- no good for-the^ground, and was not powerful' enough for the "river. "Captain "Snnstrom 'said that the only difference was that the buckets were a little smaller than- those -of-'-the lower Iredge. ' The ladders of both'ctiredge's were, the same length, and* they could- work to a depth of 50ft. The lower ' dredge never' really -worked last year. Mt -R. T. -'Wheeler saiS" that the company had been' floated- on. the strength of a claim which it had'-never .worked. The lower claimhail newer "been worked owing to the river being too high. Mr.,Murray>.thoughtvii.a'-pity to-throw away, the claims: t chairman-, had stated that the ladder was capable ol" reaching., ther ground in the -lower-c laim provided there was -.a par-" - ticularly favourable . season: He would like to ha^e .both- -claims -properly tested before parifiig./jwjltjb." -them. .He , thought that .there ■would- tje. different Conditions prevailing- next "yeaij. ~ . . ~ _ j : . . _ A' Shareholder asked if there would be any trouble-about. ' financing-,, if. they decided to go on, before making a' start next year. The Secretary stated that with the call they could.iinance,- -bnt without it. they could not. Should .they decide \o go oil a special callwotuel "have to Be made.

Mr Xiawson said he did not quite agree with the secretary' as to " financing:^ There was one of Wo" things to do, and this was either' tir liquidate or dispose of one of the. claims. He thought they should go on working the lower claim and realise on the upper dredge. Captain Sundstrom mentioned that in the company there were some\2pDo vendors' shares, into the-hands* of the Holders of which they ■would T>e- playing if they entered" into liquidation. /• " Mr Lawson moved as an amendment — " That the directors "be instructed to realise- on one of the dredges' and claims, and that a further call of 2s be --made, and that -the company be carried on -till "next winter, when there ■would be an opportunity of testing 'the remaining claim." The amendment was- seconded by Mr J. -C. Jones.

Mr- R. S. Black spoke strongly against the amendment.

In reply to a question as to the payment of directors' fees should "they continue, two of the directors "notified their willingness to act without fees", which ' would leave only the secretaryV-and caretaker's expenses to be met.

The amendment was then put to the- meeting- and all piresent were in favour of it, with the exception of Mr R. S. Black. "" When the proxies were counted, however, it was found that there^ was a majority in favour of liquidation. The amendment was therefore lost-, and the motion in favour- of -liquidation-was put to the meeting and carried. _ -. Mr BT. T. Wheeler was appointed liquidator.