THE TALISMAN CONSOLIDATED MINE.

Otago Witness, Issue 2782, 10 July 1907, Page 28

THE TALISMAN CONSOLIDATED MINE.

IMPORTANT ACTION BY NEW ZEA* LAND SHAREHOLDERS. (Fame Ocr Own C&bbespondeht.) WELLINGTON, July f. Considerable dissatisfaction has for some time existed amongst the New Zealand shareholders in the Talisman mine with the London management, especially in regard to the unusually large remuneration payable to the directors under the articles of association, the tardy and bore reports issued to shareholders, and the ion-appoint? ment of a local advisory board in Auckland to supervise the working of the mine b$ Messrs Bewick, Moreing, and Co., whohava control. A committee, therefore, of coma shareholders was formed in Wellington last April to circularise shareholders, and to obtain the necessary number of proxies to effect reform in these matters, and also to secure the election to the one vacancy on. the board of directors of Mr George- Wik son, a member of the London Stock Ex* change, who was pledged to support tha interests of tbe New Zealand afaarehoWere. Proxies, obtained in about tihree weeks and representing over 100,000 shares, were posted to reach Mr Wilson before May 3L This would have* been well within time, as the earliest date on which the aramal general meeting of the company Bad been previously held was Jtme 25- Tfeo Ensrlish board, however, kearmg of th* movement, called the meeting tot May «fc The following cables then parsed betweenf the aeent of the shareholders* oommifctea and Mr Wilson: — "Wellington, May 18L " Have • sent proxies for 66,00(1 and 37,000." "London, May 25. " Annual eeneral meeting will be held oti May 30. When do you expect proxies to arrive?" _ __ " Wellington, Mar 2*. "Proxies for 66,000 arriving June 92 42JXX) followiiftß. Colonial refctftej; of

220,000 insist adjournment unless directors agree stoppage their additional remuneration, appoint you vacant directorship, also a colonial board, independent expert's examination of the mine. Alternative, special meeting. Colonials solid determined radical changes necessary. Date meeting most unfair." "London, May 28. " Will not postpone meeting. W ill attend and protest against." " London, May 31.

"Board' 3 resolution was carried by a majority 7000; impossible to do anything In so short a time."

"London, June 21. "Refer to our letters of May 31 and June 7. Have secured the services of strong committee which is distinctly pledged to your interests. Met me to-day. It ie most desirable thaf we muet have new board of directors. Decisive colonial vote is absolutely necessary. Have sent you special power of attorney. Insert names George Wilson, Major Fredk. Nelson, George and Findlay Cook, Auld, and H. W. Foekett as attorneys. Committee is of opinion that it is absolutely necessary send power of attorney." The motion of the English directors has been adversely commented on here. It is pointed out that under the articles they are entitled to divide £1000 between the five, of them with another £100 for the chairman, and also a bonus of 5 per cent, on all dividends declared during the year up to £60,000. For the past ' year they have received £41,000, as compared with £2400 received by the directors of the Waihi. the second largest gold mine in the world, and £1600 by the directors and chairman in New Zealand of , the Bank of New. 'Zealand. The fact that the working and control of the mine is undertaken by Messrs Bewick, Moreing, and Co. under otratract, thus relieving the directors of much labour and responsibiiitv, lends additional point to the comparison. During the last 18 months, as is well known to most of the New Zealand shareholders, very important and valuable developments ■have occurred in the mine. No full official information of these, couched in popular language, has been issued to shareholders, who in some cases have been rendered timid by the receipt of cuttings posted evidently by strangers from English financial and mining papers, speaking in pessimistic terms of the future of the mine. Here again it is urged that the Talisman might well copy the example of the directors of the Waihi and take its shareholders and the public more fully into its confidence. The five Talisman directors hold office for five years, one only retiring in each year. There is no provision in the articles of association providing that they shall retire if requested to do so by a special resolution on the part of the shareholders, although by the articles any direotoi.' ipso facto ceases to hold office if lie is requested to retire ajid the request is signed by all his colleagues. The colleagues than have power to fill the vacancy. The New Zealand shareholders now hold over 220.000 shares, or more than twothirds of the mine. Their lequest to have one director at least in touch with them is claimed not to be unreasonable, more especially in view of the remarks of the chairman of. the Waihi Company at its last jrencral meeting. After referring to the fact that Npw Zealand now hold 80,000 out of 500,000 shares in the Waihi ■Company, he said the increase on the New Zealand register emphasises the advisability of having a- director who is thoroughly representative of New Zea'and. The matter is not, I learn, to rest here. The Wellington committee of shareholders has received cable adivce from London that a committee has been formed by some of the Talisman shareholders pledged to loyally co-operate with New Zealand in effectiner changes This wall necessitate the calling of a special meeting, and at that meeting the New Zealand shareholders, being in an overwhelming majority, have only to stand firm shoulder to shoulder to effectually vindicate their rierht to a decisive- voice in the management of a company which bids fair to have a gi-put prospective future. It is to he hoped that in their own interest they will unite.