Waio-Karaka Drainage

Thames Star, Volume VII, Issue 2153, 27 November 1875, Page 2

Waio-Karaka Drainage

Meeting of Representatives of

the "Waio-Karaka Mines.

A meeting of those interested in the Waio-Karaka drainage, and the creditors secured and unsecured of the Bright Smile Company was held yesterday evening at the Pacific Hotel. There were present as representatives Mr 3. Murray on" behalf of the Loan Agency,, Mr T. L. Murray of the Bank of New Zealand, Messrs Buckland and <T. McCabe of the Queen of Beauty, Garland and Hicks of the City of London, Wilkinson and Gribble of the City of York, Fryer and Turtle of the Queen of the May, Cook and Ruddock of the New Exchange, Jas; Macky of the Bird in Hand, and W. Rowe and J. Watson for the unsecured creditors.

On the motion of Mr J. Murray Mr Wilkinson was called to the chair.

The Chairman said that although, the repsesentatives of the Queen of the Maywere absent, still it would be advisable to proceed as time pressed. H<3 had only to inform them that this meeting, arose out of a previous meetiDg, and that he believed several proposals would be brought before them as to the most advisable course to pursue. He had heard that a meeting of the outside creditors had been held that afternoon, and perhapa the representatives present would tell them what proposal's they had to make. - Mr Rowe thought that this was placing the outside creditors in a wrong position for the other representatives ought to have come prepared to accept the propositions which had been made, or to propose modifications of these. The: outside creditors were pretty well agreed on the course they would pursue, but it certainly was the duty of the mining companies to stale first what they intended to do. Mr Buckland on the part of the Queen of Beauty shareholders, said he would

propose that this meeting should form an association and afterwards talk about terms. He would therefore propose that an association be fdrmed for the purpose of draining the Waio-Karaka. Mr McCabe seconded the motion, which .was put and carried. /; '.. '•' . "./ Mr Buekland said the next 'difficjalty was the proportion each mine should oon-; tribute, lie himsalf was npt in a, position to speak as to this, but perhaps Mr Bowe could.

Mr Bowe said that the outside creditors had had a meeting on that day and had agreed definitely on their course of ac-. tion. A deputation had gone to the Bright Smile to make an estimate of the plant and had come to the following conclusion. They believed that the pumping plant and shaft had cost nearly £20,000, they valued it now at £9450 and had decided to recommend that it be offered to the adjacent mines for the sum of £8000 of which the Bright Smile should contribute its fair, proportion. The whole to be divided as follows. Bright Smile to contribute £2100, City of London £2100, Queen of Beauty £2100, Queen of the May £1000, City of York £700. These mines to have the power of levying contributions on any claims which might be. benefited. These terms they thought were fair ones. Mr Buckiand said this was going further than he intended, and then made a proposition that a company be formed to drain the mines of the Waio-Karaka, to copsist of 10,000 shares at £1 each to be allotted in a fair proportion amongst the claims interested. He would leave , the Bright Smile plant out of the question, as they might find other means to pump their claims.

' Mr Eowe on behalf of the creditors stated that they were not in a position to entertain any. scheme which did;. not embrace the purchase of the Bright Smile pumping gear and shaft. It had cost a great deal of money and was very efficient, in fact it was worth a great deal more than the liability that was on it, and he would still, advocate its purchase. The Chairman called the attention of the meeting to tie proposition of Mr Buckland, which was before them, and whilst thanking Mr Eowe for his explanation would remind them that the business was then to consider the advisability or otherwise of forming a pumping association. - ■ . •

Mr Murray wished to know how many jofj.tlie companies would join the Association and suggested that the chairman might,ask the delegates to what extent they were prepared to go. The question having been put, Mr Garland on behalf of the City of London said he was authorised to state on behalf of that company, that they were quite willing to share the expense of pumping and to join an association for the purpose, provided the liability of each claim interested be clearly defined. He was totally unprepared for any scheme which embraced unlimited liability, as in the event of the others not paying the mortgagees could come down on all. On behalf of the Queen of Beauty Mr Buckland stated that they would take a fair share of the liability if were it properly defined. Mr Murray here remarked that as the question of liability was raised he might state tbat.supposing the Queen of Beauty had paid its proportion and other companies had failed to do so, the mortgagees would still hold to'their security. Mr Buckland thought that while some claims would"paytheir quota others might not be in a position and would therefore

have to give security on their plant &c. Mr Garland said he thought the only practical way to deal with the matter was to have the money down, if the thing was to be_purchased—why. not buy it (straight off the reel.

The Chairman again called the attention of the meeting to the motion before them ; the, City of London and the Queen of Beauty were quite willing to be a party to it. ..■,'. :".- \: ■:/:■..

Mr Turtle on behalf of the Queen of May stated that they had not the money, and at present could not see their way clear to go into the scheme. They would far rather pay a fair contribution towards the pumping. If they went in at all it would have to be on very easy terms, as the claim had not been paying as well as they wished.

Mr Mdckay on behalf of th^'Bird inHand stated that they were, not working just now, if they were they would be most happy to join. Mr Kuddock stated that the New Exchange were also willing to contribute. = ....:.

Mr Buckland asked Mr Mv rray if he would allow the companies the use of the pump for say, 12 months at a fair charge, or let the Bright Smile ; :do the pumping and charge 25 per cent, beyond the cost. Mr Murray in answer said it was [impossible, as the Bright Smile' Company was insolvent and its creditors a disorganised body. The mortgagees certainly could not go into it. _ Mr Fryer said the Queen of May would join, but it depended on the amount required ; it would have to be reasonable. They were also willing to pay a share of the cost for draining the shaft. ■'■' ■ Mr Murrey here asked Mr Buckland kf define the liability of each claim, as the question had Tjeenvbrought up. If a-sum were fixed perhaps the Bright Smile might join. Merely proposing that a company be formed without defining its liabilities makes companies very chary of joining the v scheme ; he would call upon Mr Buckland to state them: '

: Mr Buckland thought Mr Murray could not have understood him. : The instructions of the Queen of Beauty Co. were to accept any fair share, but not,to go in for a shaft of which they knew nothing. He had, on a slight inspection of it, noticed that the standpipe was crooked and he thought it could not last very long aathe ground had sunk so much all round it. He would like the opinion of some competent engineer whom they might get to inspect the shaft.

The chairman suggested the carrying of the original resolution? the delegates could afterwards arrange particulars of the value of the plant. He also pointed out that no one had come prepared to entertain Mr Murray's last proposal.

Mr Buckland's proposition was then amended thus, " that a pumping association be formed consisting of 10,0C0 shares of £1 each, and that the following be the proportion of liability of each claim viz :—Queen of Beauty, 2CCO; City of London, 2000; Bright Smile, 2C30; Queen of May, 2000 j. City of York, 1000; Isew Exchange, 1000; and the Bird in hand SCD.

This was seconded by Mr Garland. Mr Buckland agreed on behalf of the Queen of Beauty. - Mr Murray stated lie presumed that if the plant were purchased tho Bright

Smile would join. He also said that at j the last meeting he had submitted a proposal that it be submitted to arbitration, a circ^lar::tQ---that effect had been sent to the diff6reut delegates asking them to attend, and. he hoped-the meeting would not break up without to something "definite. Would th 6 meeting say that Ms proposal to <submit:to arbitration be^not entertained. Until'the shaft was pumped r 6ut.it codld- "not" be examined arid he thought it only fair to examine it and fix a price. However, if they submitted anything definite to them he was quite prepared to answer them. - ■

Mr Buekland stated that the present shaft was in a very bad state, the ground was sinking all round and it could only* last for nine months, a new shaft was required, the present one could not be considered permanent.

Mr Eowe said he could not allow such a statement to pass unchallenged. He could assure them that the shaft wasgood for ten years in fact quite fit to be put down to 1000 feet. When the necessary repairs were completed no better shaft than the Bright Smile couldbefoundanywhere, the most competent engineering skill they could find would affirm this.

In reply to Mr McCabe he further slated he was aware the ground was sinking, but as far as that was concerned there .was riot the slightest danger ; he had'seen shafts sink ten times more than the Bright Smile Shaft.

On behalf of the outside creditors Mr Kowe stated that £8000 was the value they had put upon it. They were actuated, with, a desire to benefit all parties interested. They wished to get the co-operation of the surrounding mines, and he contended that the City of London and Queen of Beauty claims had benefited more by the Bright Smile pump than any others. The creditors did not intend to be sacrificed. - ? ; ; ;

On behalf of the Queen of Beauty Mr McCabe said they were always ready to meet with any reasonable proposition, but they certainly would not be bounced.

Mr Murray stated that some remarks had been made that the different com* panics were being forced into buying the plant; no such attempt was intended. Were anyone forced it seemed to him it was the mortgagees, they were told they must come into an association to buy a plant when they already possessed one.

The question was —a property is offered for sale at a certain price, and it was for the meeting to say would they purchase it or not.

Mr Hicks wouldlike the shaftpumped dry that they might see what they were purchasing. Mr Murray again suggested they agree to his former proposal, viz,, that a minimum and maximum price be fixed and then re'egate it to competent men to assess the price. He felt confident if it were left to half a dozen : men with contrary views that they would never arrive at any. conclusion. Mr Turtle supgested that perhaps. Mr Murray would fix a certain price on it. Mr Garland said the City of London was not averse to purchase but certainly averse to submit it to arbitration. If a price were stated he could say whether he was authorised to give it. He was prepared to agree to paying a share of pumping the shaft dry. Mr Murray stated that £8000 was the price.

The delegates from all the companies expressed the opinion that the price was too high, Mr Turtle maintaining that if the shaft were pumped dry they could name a price.

Mr Garland asked Mr Murray if he would allow the adjacent mines to pump the shaft dry and then state a price, and

Mr Murray in reply said that he could not answer that definitely till the morning, but he was almost sure it.would be in the affirmative if a desire were manifested to purchase. '

On Mr Mc.Cabe assuring Mr Murray that the Queen of Beauty would be desirous of purchasing Mr Murray consented to the adjacent mines pumping the shaft dry under certain restrictions as he had great confidence in Mr McCabe.

Mr Buckland then stated that the cost of pumping it dry would be between £400 and £500, and asked Mr Murray if the Loan Co. were prepared to take £5000 for it. • . ■ .-:

Mr Murray in reply said they could not think of it, he considered it cheap at £8000. ■ : : :

Mr Buckland asked if the company would let the pump for twelve months' at a fair price, to be given up in good order, but Mr Murray stated that their wish was to sell it. The business way to look at it was—a property originally costing £20,030 was to be sold for £80 ,0, would they buy it? The boiler, he said, was new and cost £7 50. ■■. _ ..

Mr Garland asked if the Loan Co. would take £6000 for it, subject to its being pumped dry, the Bright Smile to be a party to the expense of pumping if the purchase were agreed to.

Mr Murray thought it quite one-sided, and without being disrespectful to the meeting he could say that he should not bo able tocome tortile Thames to meet them again, and if the parties interested wanted to negotiate again they would have to come to him.

«Mr Buckland thought a shaft could be put down elsewhere in good ground, and that they would not lose by the refusal of the Loan Company to take £6000.

The chairman here put the original motion, which was carried unanimously.

Mr Howe asked if it was fair for the other claims which were drained by the Pumping Association to contribute as much as the City of London and Queen of Beauty. .

Mr McCabe suggested an adjournment to discuss the matter.

Mr Murray, after consultation with Mr Howe, informed the meeting that £7000 vras the very lowest they were prepared to take. He could not come any nearer, and in the event of a refusal, Mr Eowe had assured him the creditors would see the Loan Company through.

Mr Garland submitted a second scheme to meet this offer, viz. ;— Queen of Beauty ' 2000 shares. Bright Smile ...... 2000 „ City of London ... ... 2000 „ : Queen of the May ... ■?."!. 1000 „ City of York ... ... 1000 „ New Exchange 500 „ Bird-in-Hand ... ... 500 „ On the motion of Mr Bucklancl the meeting then adjourned • till 2 o'clock today, to discuss the subject in the meantime.