JUNCTION ELECTRIC GOLD DREDGING COMPANY.

Otago Witness, Issue 2690, 4 October 1905, Page 29

JUNCTION ELECTRIC GOLD DREDGING COMPANY.

The following report for the year ended August 31 will be presented to shareholders 111 the Junction Electric Gold Dredging Company at the sixth annual general meeting: — " The total amount of gold earned has been (taking the dredge weights) 21340z 13dwb 22gr, and by smelting and assay this has realised £3 17s 6fd per ounce, or in all £8276 los 9d. Inclusive of interest on deposits the net profit for the year has been £1709 2s Id. Adding the balance brought over from last year (£1694 los), there has been available for allocation the sum of £3403 17s Id. Of this amount the payment of a dividend of Is absorbed £1300, and the purchase of one of the Cromwell Company's dredges, and the taking up of an extended bank claimi absorbed £737 19s, or a total of £2037 19s; the ba'ance of profit and loss account therefora is now £1365 18s Id. This is represented by the funcTs available after deducting the liabilities, which have to be provided for. No special reserve account has been opened in the books, and the surplus shown above- 1 must not, therefore, be regarded as all available for division. It would be prudent to set aside at least £1000 as a reserve to provide against emergencies. During the year the company bought the No. 2 Cromwelli which i 3 now known as the company's No. 3 dredge, with a view of working ground that the No. 2 could not dredge, she being unable to work bank" ground. The purchase of the third dredge and cain? has been

- " justified by the returns obtained by her. _ Soli's dredge has contributed 3830z of the "kbove- total since she started -work on March - 27 of this year, with expectations of winning good returns on the Cornish Town Point, fwhich .will be worked by her. It will be noted that hex cost has been charged direct jto profit and loss, and that the property Account remains unchanged, notwithstanding )ier purchase, so that the amount of the ■property, assets is continued -at the same imount as the capital on the other side. The company thought it expedient to take up )ome ground adjoining the No. 2 claim. The VI aim was therefore repegged and applied for Witla the view of taking in a strip of ground adjoining the upper part of the- claim on both sides. This ground can be -worked during the summer.' "When the No. 3 dredge was purchased she was placed in charge of Mr Alex. Boss (the dredgemaster of No: 2), who , successfully floated her down from th© Cromwell Company's claim, she was put to work on the upper part of the <:laim, as most di it is beach .ground.^ The No. 2 was shifted - down to below the junction of -the Kawarau and Chitha Rivers,^, the latter-mentioned "dredge .. having -won fair returns in ground jlhat has" been* worEed -Before. " There- appears . )to be a "growing supply' 'of" the 'precious metal lin this part of the claim. The prospects of future working are good. Although the returns may not be large, there is every pros.f'jpect'^f fair "returns' 'being won, with occagood ones (No. 2 for -week ending 22nd •:- {September, 1905, won -lOOoz 12dwt)." Your consider there- is several years' work for ; all three dredges." No. 1 dredge has some • }two or three years' work to. do with good - average returns -before the claim is .worked • but." At last annual meeting a resolution was passed recommending the directors to conaider the question of a- reduction of the 1 capital, but they have not - seen their way to any practical method of carrying this out. &n analysis of the share list was made pin J ffune, 1905, when it was found that the fotal ■number of holdings was 305. Of these there were only 73 -holding 100 shares and, over, and -J. 68 holding -50 and over. The holdings under B0 numbered 137, and the holders of J25 and Tinder numbered 135,, whilst of -the' latter number 28 -held under 25 and down, to two Bhares. Thirty of the whole number represented irregular figures such as 2, 37, 39, 112, -.118, etc. With a share-list so constituted the difficulties in the way - of any reduction and consequent recqns'truction or redistribution of share interests^ would, be very great, nor „ would it, in the opinion of the directors, lesult in -any advantage which would repay the cost. If at any time the shares -were getting into iewer hands, with larger "hold- . ings, the matter; would be more practicable, and could ba again considered. Changes in ILe share list 'affecting the holdings are, however, altogether in the shareholders' own i bands. On. Mr Alex. Boss being appointed dredgemaster of the Nor 3 dredge, Mr Wm, Wood who was winchman'on the No. 2 dredge was appointed master of this dredge. Mr James Richmond is still in charge of the No. 2. The three dredgemasterg have the confi-idence.-of your directors,- wlfo- know that the company's claims are being 'worked to the best possible 1 advantage., - The three dredges, . under the capable management of the dredge- ' toasters"*- are in good -working order." I