New Zealand Smelting Company. Extraordinary Meeting. Auckland, April 19,

Te Aroha News, Volume III, Issue 151, 24 April 1886, Page 6

New Zealand Smelting Company. Extraordinary Meeting. Auckland, April 19,

An extraordinary gonoral mooting of shareholders oC the N.55. Smelting Co. was hold at tho Chamber of Commerce at 11 o'clock this morn-) ing, for the purpose oi! receiving tho directors'' report of tho result of thc smelting operations for tho 30 days trial run. Mr J. M. Lennox, chairman of tho directors, presided, and amongst those prosent wero Messrs 11. O. Carr, A. Porter, A. G. llorton, A. Snunilore, J. M. J T 3l1& lu } m > W s S. AVilson, K. C. Barstow, Niohol, piS^ 111^ 01"8- J- D- La Monte, J. 11. Upton mm '«-£" Alcki». J. M. Alexander. ,.«/. w V luui "'yan having read the advertisement MimiS s H 10, "feting, tho secretary (Mr E. whirl 'reud Ul ° minutes ol a previous meeting ™f'i we,™ confirmed. Tho Cliainnan then ™, h0, following report Iroin Mr Sin-alt, the show! y? on tho 30 days run, ?™?^i B -P. cost I)Cr ton for treatment of ore together with tho yield of bullion, as compared Thi*iM y valuo« aud wnounL paid for bame, i,, hnifi i u cai"tjfuHy compiled fiom accounts 7 owi na ', wlutJ». notwithstanding that 87 tons H-^to'ri • (JUurte still remain at works to ho iiiP.m™.;,. 1£> s r llihciently correct to supply thc mm v" y "lCon nation as to cost of reduction. ,.!r». i u° V t l, .Proceeded:—"It is a matter for fnSni.ni • co&t of of ores will be m !vm.?i,{f\ in .°$' C0M of what was originally ! ftf -V 111- 1 »m confident that, in the J'nMQwin operations being continued, a considerable s ivmg can be efleclod in the chief !!!wiT!i- 1>ec lll- u: oilm ""xiiiK-iiamoly, ironstone » ; ,iw t ' m h-lch ' 1 iL ukcn in torso quantities, n in n ohlamod at much cheaper rales; and S..nH bl U8n^ 1. 0 m, on employed would in a ?o? ,-[.J ? "i? &um^nlly trained and competent in n™?-S 11, 0 wo^ "»lhoul Hie supervision ol ovi , ol y,, ,n y PUl<- 1 °x^rls. T1 >e Principle of fnJn«™ VL 110 Piecious metals by the La Monte «"., i u 1. no< r CbB 'now introduced by your com}irm yr,io ar mad ™neo of »"y method lutherto }., v \m 1 l, lns'l^tnct.and I would rcspcolII, m,,« SF r . tho. «o»8idcr»ition of ils con•V,, ,,»™ o>. bc 1f vl!'fc' «mt eventually it will prove «,!Jn IOiS' hai M lnlL n ]airt on Lh0 tabl ° a statement K Jm y Vi r yi )r 1 at, L ol" thc cosL ol" tlic30ilayb that i in, Iho total was £1,227 5s. The oross weight of ore smelted was IS I tons, the avcitigc cost per ton being £0 15 8. The gold Horn oio purcluibcd wab worlh £1,790, tho assay value, £317 short oL the assay value. The asbay value ?. , u ia™ 1' 1mrchilbod l& 13b ; tlio actual losult, U,o ils; short, £i<h. 2s. Tho estimated value ol bilvcr, bullion, hthargo, Hue dust, etc., on hand was £3h8 10a. Tlio (Jhairman tiien enleredmto a lengthy explanation of thc lif-urcs m the statement he liad read, and stated that vjhilc there had boon a deJicit of £209 12s tho product was a long A\ay under the 0 per cent, promised by Mr La Monte, 'i'he great cost was hu-Rely abcnbcd by Mr La Monte to thoMisc of scrap load, when sotl lead should have been used, llo gave Mr LaMonlc credit with having been actuated by tho bebt intention, and with hawng acted i.urly to the Company all through lie then read the following oflor that had been forwarded by Mr La Mouto for the consideration of thc directors •- ''Ov>inglo the oxces&n o costot treatmental ovo the contract price during tlio thirty days' run, 1 willmako the following proposition : 1 « ill deduct £1000 from the contract price, and also give waytolheconipanyanyintciosl I may hold in and to tho bonus ot X1000 promised by the Go\ eminent, which will be paid by tho Oovernmeiit if taken over by tho company. 3o percent oi thc burden oL the calh fall on me to pay, a\ hieh actuahj lease only about £2000 lor the'balance ot the Company to provide." Appended to this ib the following estimate ot co&t of working pro- \ iding the Jturnace wab enlarged, so as to treat 310 tons per month :— Ore—;H0 .tons smelling, at £3 per (on, £1020. liiMimplc,— Cost—Ironstone, each ton, 1 G7-100th at i?b, tlb!)' 1Gb bd ; Auckland gas coke, at 2(i&, 35 chargcb, 10 lbs., 13s 3d, £223 5s; lime, at 2s lOd, £IS 3s id : labour, per ton, Ils 2d, £210 KJs 8d Avoiago cost per ton, &Z l&od, 701 Is bcl. Tiohl, £,51 o lbs Id. 1< uel and coke, ironstone and lime, taken at same averages as tho trial run just made, thc proportions of which should be lessened m future by the proper blending of ores N.li.—water, as motive power, would save £35 per month. In mo\ ing thc adoption of tho report he expressed regret that thc result of the operations had not been more success! ul, and he belio\cd that eventually the process successful, but, of course, that was merely speculative. He would quote one instance of the value o£ tho process to the, goldmining industiy. They had made an odor ol £1 lUs per ton for lloscmount quartz. This was refused, and the ordinary nulling process subsequently only produced 7 dwts. to the ton. Mr La Monte, in seconding tlio motion, said he felt quite embarrassed at coming before the company, and having to report that the furnace had not done as well as they-would have liked to have seen it. lie mentioned that tlici c was a diU'crcncc between the estimate in the cost of the run made by Mr Spratt and that made by hiiusell, and said lhatil the cost of refining and the general expenses account A\as deducted, it would be found that the cost of smelting was £l2s per ton of quart/,. The gold and bih e had been paid for on too high a basis. At Swansea and Fribury 3s Gd was allowed for silver and £3 17s Gd for gold, which always left them a maigin to make on. llealsocomplained of the quality of the lead supplied, most ot winch had gone to dross. If they had ores (hat smelt themselves, tho bullion would not need to be "returned so lrcqucnliy to thc lurnacc. In some instances they had paid more for quartz than they should have done. This a\as formed subsequently by means of thc check a&sajs. 13esidcs in ores giving only £(>0 per ton they should not expect more thanlSO per cent—not 90 per cent. It the operations had been o\ er feO per cent, it would have made a dillVrenee of £201 in their favour, leaving a small credit balance on the run. lie had no complaints to make except that some of the stall never ha\ ing been in thc business before did not. i^et the necessary articles together for a sueoesstul clear run. The stall" was in good oi dor now and during thc last 21 daj s ol thc run the works had gone as smoofhljjaiul perfectly as any in tlio world, lie strongly advocated thc enlargement of tho furnace. His own outlay and obliuaUons in connection -with the works was£(>,G00. He had simply (o say to thc Company that he had not done what lie had promised, but il he had it to do over again he could do it. fie was virtually in thc Company's power. As their attorney had neglected to register a bond in triiat relating to tho repayment ol £1,000 for the patent, the agreement took precedence. He, however, did not think there was any dispobition to take advantage of him. lie then repealed his written oiler, and said it would reduce the expenditure by the Company to £3,000, one-fourth of which would fall on him as a shai eholder, leaving but a small amount for the gcnovnl shareholders to pay. In conclusion, he mentioned that (here was a general feeling at the Thames that the works should continue. Having thus fully placed before (lie meeting the result of Iho 30 days run and Mr La Monte's now proposal, lie read the report ot tho directors, which was as follows :—The directors, in submitting tho statement, of cost of ores treated during the trial run of 30 days, and which, together with thc report of Mr Spratt, who Avas deputed by (ho Board to act as their representative at the Thames, have been circulated among (he shareholders, regret that the results appear to be unsatisfactory. These arc, however, in a great measure to bo accounted for by the ditlicultics generally attendant upon trial operations in connection with thc treatment of ores in a new field, which have uot hitherto been subjected to (ho smelting process; and, as will be observed from Mr Spratt s report, a considerable sa^ inef in tho cost can be ell'ectcd in the chief matciial& required in fluxing, and albo in wages, both in the matter of experts and ordinary labour. Taking thc whole circumstances into consideration, however, tho Directors cannot recommend thc furnace being taken over, as, during the trial run, it has failed to attain tho results which it was guaranteed under agreement with (he contractor toefl'ecU- namely cost of treatment and the saving of 90 per cent, of the assay lvalue of tho gold and silver, and also the capacity of the furnace. Mr. Chambers having mentioned that he was present at thc meeting as the holder of 2,000 shares on behalf of Mr Davis' creditors, admitted that scrap lead was not as good as soft lead, and that thc Company had been paying more for thc ores than the ruling rates. He' had expressed his doubts as to thc adaptability of thc 'process to treat tho Thames ores, as they were too highly silicious; but, when at tho Thames thc other day, he was surprised (hat it had worked much better Hum ho had expected. Of course, the cost was vory great. Messrs. J. M. Clark and Alexander spoke against tho Company taking over the furnaces. Vlr. Clark thought* it should be handed over to Mr Lc Monte, that gentleman refunding to tho Company such sums as might bo agreed on. Tho patent, ho said, in viow of tho future, was without value to them. Mr llorlon said that tho Company had raised £0,917, £15G5 being cash received on account of calls, and £2,382 for bullion banked. They had paid Mr La Monto £2,000; oro had cost £2,000, whilo tho halanco of tho preliminary expenses was £2,317, making a total expenditure equal to tho receipts. With Mr La Monte's own expenditure thc total cost of tho venture had been £13,000. Tho shareholders havo had to pay heavy calls, and he did not boliovo that they could raise tho monoy to go on. Mr Porter said that as it appeared thoro was f a diflbrence of opinion —some of tho share- j holders wishing tno ontorpriso to go on—ho 1 1

to°caJrv°m?Mr? ai H 1C °? n trooU)i- having failed 10 cany out ins contract, the directors be omSuS oi°hv a )"- SiC1^ 0 M / La Vonto, oi'aSy one appointed by lum, tho furnace, buildings and Snv' K 0^ D ? W ln th ? P^SSion of IWo COm HF a sum of money to bo arranged for, and Unthi?,' 111100^ 1 ' 8 havo fuil Power for winding by Mr J. M?CiaT 11Jany '" This was BGCona °' 1 to 3 ? « o VS,v* 0nt0 4l* ia nJ? a !l as h0 had t0 Pi'ococd ,?h^^a h f Or l. th ? 20Ul he suggested that the J£? a , sh °« lcl bo empowered to make an amicablo settlement with him. cJn£ r S01 P° fu y fc iV 01 ' fl iscussioix it was decided on tho motion oL Mr Graves Aickin to adjourn tho meeting until Wednesday next.