METTING OF CALEDONIAN GOLD MINING COMPANY.

Auckland Star, Volume II, Issue 509, 28 August 1871, Page 2

METTING OF CALEDONIAN GOLD MINING COMPANY.

The annual meeting of the shareholders in this Company was -held to - day in the Mechanics' Institute. There was a very large attendance, and Mr. C. J. Stone, Chairman of the Board of Directors, presided.

Mr. ToTHiii;, the manager of the Company; rfead the Report, which is as follows :—

"The Second Annitai Report of the Directors of the Caledonian' Gold Mining Company, Registered, for tlie;Year ended 31st July, 1871.—Your directors 'have much pleasure in congratulating the shareholders upon the result of the past-year!s operations at the company's inine. Tlie annexed balancesheet nud statement of accounts cannot fail to be regarded with satisfaction by the shareholders. For upwards of two years past the shareholders have patiently waited the completion of the main shaft necessary to prove the value of the reef in their ground ; great difficulties hindered the operations ; the bardness of; fche sjbone to be penetrated, -the-fo.ul air met With :!n sinking, afd, tlie heaVy ipnhx pt water, "wore Qifficuities-spccessively overcome, but only by great perseverance and. after considerable outlay of capital. About- the latter end of 1870, arrangements were made for exploring the upper portion of the company's mine by driving from the Grolden Crown main level along the line of reef. This exploration .did not yield any very large results; the erushihgs from; the reef' during tlib;'.first;,; sixi mouths of the year, Or up to the:3lst January, 1871, yielded 2,392 ounces from 910 tons, or over two ounces to the ton ; but about the, beginning of February last the main run of gold was met with, and from the Ist February, 1871, to. ,31st July of thesame year, the results were such as toj satisfy'the most sanguine. The out-turn of gold for that time was 154,828 ounces which realized, nett, for distribution among the shareholders £411,840, or at the rale of £823,680 per annum. The quantity of stone crushed during the last half-year 1 for this yield was 7,309 tons, producing over 21 ounces to the ton. The total number of tons crushed for the whole year lias been 8,228 ; producing 157,220 ounces of gold ; the average yield has beeu over 19 ounces ,to the ton. The gold realised £445,959 llslld., of which the sum of £413,270 has been paid to the shareholders in dividends, making a payment to them of £144 10s. per share for the year; but of this amount the large sum of £144 per share has been paid-fo'r theilastthalf-vear.jpr at-thesraje of. £24 per mobth.feu ekcli/sharo. Tour directors believe such results have never before been realised in the history of go/d mining. It will be seen from a perusal of the Mine Manager's Report that the work in the: mine has been much hindered and made more expensive by the gre£t~influx of water from the reef in the works upon the low level. The. company's pumps and machinery, though; sufficient for an ordinary influx of water, when" the Tookey and Imperiul Crown pnmps were at work, were found quite insufliicienk.tg-j£eep ~dowii the. Water wlien these-pumps we^e'not fit work, and .w'heii.Uhesij^ooinpan^es leased pumping it became quite evident that" one general arrangement for a large plant should be made between the four companies interested, viz.:-the Golden Crown, Tookeys, the Imperial Crown, and this company, and' accordingly j an. agreement "has 'been entered into by which these" companies* 1 contribute equally with this company towards the erection oi a powerful pumping plant daily expected from Victoria, which, it is believed, will. be sufficient to drain the four mines named to the lowest levels they. _will : be able, to work 'for many years 10 come. ' 'Meanwhile the'oosti .of working the pumps of the Tookey Company is borne two-thirds by this company and oncfcUird by the G-olde&t'Cipwn Company. ? ..Your directors have long felt'the importance :df; iit>' creasing the company's crushing plant, and arrangements have been made for the erection of a large'iaAd "efficient battery.' j rYouridirectors look forward to the future with great ; confidence. The mine manager's report »ill give a description of the work-in hand, bud those projected, iv the mine/ •- (A* rpa"ful(al of this report will show the exceedingly valuable' property possessed, by Jtue shareholders. Your, directors have hitherto been able to meet the shareholders with a fortnightly, instead ifidl inQntuly: dividend,'^nd^bey dpuofc at nrefcent see any reason why the payment of^ a fortnightly dividend,^ould. not qon.tmtie; but. they would remirict sh'areholaers'*'that j the fulling off i&,tUe;amountj ( ofVa, fortnight's (dividend is no ruld by which to "estimate the vplue of the mine. Hitherto, .your directors have devoted their time^td *iih'e"cbmpany's serfice, and borne no sniail amount of responsibility 6h*e¥r'f(illy ' witfiou^rbmauer;Uk>h ; r but your directors feel that the shareholders cannot] require this at their hands'-any longer, laud that provision should be made for the payment 'ofr«v reasoniibhr ho"borfirinm" ; torthp directors for the time being ; they propose a vote at the rate of £500 per annum-: for division among, the board, commencing from Ist .January, ? 1871, up'to^he.ntfjit {yearly meeting. One of the directors, Mr. T. Russell, retires from office, but,:being.-etfgibJ:(J, isa.qajidi^ate for reelection.—C. J. Stone, ChairnYuT.—Auckland, Augrist ; ls,rlß,7L-.fr o j.} ea [g; ..',..,7 ■- I .':. "Dividends Paid foe the Yeab e^dbd July 31st, 1871.M.)??0: December Bth!, 103" per share, £1430. 1871 : "February 6th, £2 'per eha;ro,:.j£67aof;7j?ebvuttry; /^s)ih, £5 per share, £14,300 ; February 23rd,"£6 perabare, £17,160 5;, Jkfaycu r^ h»,£lo, per sliwy/ £28,600 ; March 21st;' "£l2 per share, £34,320 ; April 4th, £12pei: shave, £34^320 ; April 18th, £12 pershare, £'34$2tf; May 2nd, £14 per share^£4o,o4o 3 May 16th, £10 per, share, £28,600; May 31st, £25 per share, £71,500. j Juuc 13th, j£l2 perehai-e,je34,320; Juno 28th, £15 per share, '^2^900 ; July 12th, i.6 per ahare, £L 7,160 ; July 26th, £3 per share,;deßjsßo,f Tqtal r> £4l3,2^.0r £144 10s per share."

.„" Mdte r MANAGEE's Bepobt."—Grahams - town, August1 of the Caledonian Gold Mining Company, Regis-: tored Gentlemen,-;—ln, sending, you. my report for the annual meeting, there is little need for referring to the success of the past year's operations, as (hat will he fully brought outin ; the financial statement. I-wish, however,' to say that the coiuinericement of the year was marked by considerable delay and disappointment, arising from several causes. Ist.; Prom the large influx of water and the necessity for providing timd .fixing adequate machinery to, overcome it. 2nd. IjYonijthe frecrueht giving* way of.the boiler4 K tlJleJcause for a wh|Dh is npfc yet fully explained. These difficulties -were at length overcome, and in the beginning of September of last year we commenced to get gold, through the Golden Crpwn mine. The| run of gold upon whicE wt.QomnMiiced working did not give such large returns as we expected, and it was not until the latter end of January of the present year that the rich run of gold;; which has si ( )ce;given.fsuch large-freturns, was mot with. Tho' piece..of ground>since stopedout has proved to be of unparalleled richness, and there is promise of continued large returns, as there is still at our present .level a lurgo block of rich ground standing. The main drive from the Golden Crown has been extended for a distance of 190 feet to the Cure boundary, and a winze is now being smjik.from this to .the .next level. ft ThiSrwilLopen| a' very large block of ground for sioping out, i believe, will give good returns. The5 middle

drive has been extended a distance of 108 fe f (fromJNo. 2 shaft) towards the Otago boundary The reef for 30 feet in this drive is considerable disordered, but for the rest of the distance it is large and settled, shewing gold throughout A winze has been sunk from this level to cony municate with the drive at the 207 feet level" This work has just been completed, and th' extension of the drive to the Otago boundary will at once be recommenced. The drive from the 207 feet level towards the Otago boundary has been extended a distance of 138 feet, pas? * ing for a considerable distance through rich gold ground, and throughout the whole length of the drive the reef will pay well v to stope out. We have yet upwards of two '^undred (200) feet to drive through the Cotfifla^y.j ground before we reach the nearest par ■tft] le Otago Company's boundary line. The isse^ of ground taken; away from the back of/ta}j drive has proved very rich, arid fchei'e is'efjll a rich run of gold exposed in the face." Thetim of gold in the bottom of this drive is also very rich;;..this, however, cannot be .worked till the bottom" Srives' are' extended a CorisidafabiTdii. tance and the water drained off. I hare no doubt but we shall have from this to the 265 feet level.flveryrrijeh block pf ground* to~t§ka away. ■' We/afce ' linking' two** wihzefj on Me specimen leader, from the 207 feet to^ttfe ;315 feet level. No. 1 winze, on the north-eastorn i side-of the, cross-put,, is down 30 feet, and t&are is a splendid! leader for Hue -whole: dij!<Hj*e, and a large quantity of good apt cimens* hire been taken out. The-leader in the winze it .now .4, feet wide. No. 2 winze is down about the same dig tancej and thd leader in thij wituois also rich and 3.ifeet;in/wi.dih. No'stownfe will be done from these winzes until tllfly are communicated with the drive below ; tut, when thW'iß fddrie"ih"ere':will bo ssreral rich blocks ready for this_p_urpose. We are also sinking a winze on the main reef (from the '^O? feet level)-to'cbmniunicftio ;wit,hithfidrire below ; this work is one of great importance, and will be pushed on with all possible spesa! The engine shaft is down'27ofee.t;fch6w^kof sinking was for BQy.eralmon.ths greatly delayed in consequence of the large amount of water we had to contend.with. ,;| The,bottom dr^tes are not, therefore^ yet opened out as extensively as they vrould otherwise have been; but they are now being pushed on with all possible despatch, and there is little doubt but that in a short time we shall be able to get out large quantities of gold' from this leveLi Already in cutting the chamber we have intersected a leader distinct from anything seen aboil, varying in size from 4 to 12 inches, and from it some excellent stone has been obtained. We have also in the crosscut on the side of the chamber, after driving £ feet, cut into what 1 appears,.- to be... a . large reef} the sive" of-this Mias^ iot Lyet. been ascertained, and 1 no.;- gold- .has r ret, been seen .ibl.it, \JVqms it,- ho^reifctt taere/is|i^"|erj large flow of water, aflcl w-fcailJ opcnloufc upen it as fast as^possible. lhe sinking of the engine shaft will also be immediately-rqsmucd, The'Siaaehineryi-jboth; pumping andwinaiiig, is Hoi perfect working: orderrjeftnd I' ,do l.'nptAp« prehen"d-rthafcjany large; expenditure/,]*jjif be lieedsd'in 'conn ectioji with.it fQivppmetiine to come. The addition to the battery is 'Oom-:-bleted>, %nd■ is "of the !f be^t description^' Dut th^rS r4B'fl,ipressirig' necessityipr fche'erMtion of a larger onej vAt present the. eras ijiog is too much scattered, and entails!,'a,''large amount of additional labour, anxiety, and expense.'jThere-.are also large blocks of ground which ,are,,pomp^ratiyely*'poor, the'; quartz from^Jiioli will not Dear' the1 'expense of so mnc hhandEng.~"Wo have at present at work 76 head of stampers, and, shall be able to keep this number going fnr some time to come. In refe^OTjce to thß)faturei I have no hesitation in saying tuat I beljeVe the mine will continue-to give good returns/or. years to come. The' opening of the lower levelsannsfc be proceeded with vigorously j the inevitable delay which has Eere" tofore taken place fil jdping ;thi« will foi^a jtipae interfere with the produce and economical "workrag bf fclie%iiiie, but there can.. be..np_doubt that the blocks of ground now being opened up in every part of the minp will yiel,d very .returns' j and it is also now Very eviaunb thkti the lich Iwns of gold, will continue in depth. There are still Weveral: otller' 1 leaders'; and .reefs jet ibo be prospected and. worked upop, and tbre^hareholdjers may with confidence look forward to a long p'eriod:6f and profitirrl am, Managisr."

" Balance-sheet fob - the ' Yearu jbnded 31st July, 1871.—Receipts:—Out-turn of goldf 157 7 2aQ«z8.,7 r dwt8, .£44,5,959 jls lid; out-turn of tailings', £9,(524 i63-:8d;;ialls, including boniiß';'6ffT£s;'pKrfshM:e>on 279,s)iares allotted to Youcg American 'shareholders, £8,419; - inter-est—received, £68 ; total, £459,071 8s 7d. Expenditure:—Claim account : >Maohined% alterations, &c, £2,653 lOd ; erection of tramway, *£ 155 17s ; wages and contract.labour, £9,03714s 6d ; contribution to'PuinpingrAs?i)oia|lbn,^£looo; ditto to pumping Tookey's shaft, £519*53 2d j crushing, £3,79!^-IW.^ Assaying;f£B2 9s 6d ; timber, £1,449 7s 6d ;-blacksinilh (partly on mnchiuery account)s>£Bß3 17s Id ;.ironmongery, £299 Is (H.d;,fuej, £X$M 148J6d ; powder arid fuse, ,£3lB i.candles, 10s 5d ; lease,.miners' rights, rates, <£5-j_£_BP' "193 9d-j survey;-£2O 8s 2d ; statipnery, postage, advertising, stamps, &c, £187 7d; hiisceQa&us, £6615s 9d ; total, £2?,BI8:i8s 6d^,' l^tery account: Purchase of _and.j^na^;hmery, alterations, &c., £354061154 d.; wagca^£l,34s 16s 6d; fuel, £766 6s 2d; quickSver, £i; 372 Is 3d j gratings, blankets, oil, lighting, &0., £156 9s 5d j stationery and miscellaneous, £27 14s lid ; f total£7,o,74 T l93^d. Lawexpenses,£43lßslOd; losaofrfor^felitiin"BK»,Jjß2o4;'intere ; B ; fc paid, £13 18s 24^. 16 Young American i shares < purchased to United Pumping A ssociation, £3,075 sa; ditto to Tookey Quartz ■4tiriirigrJifiofipafiy.p.rs££pPo; advanced for Golden Crown on pumping account, £146 3s 4d; balance xeceivablo for tailings sold (not yet due), £2,321 6s 9d; dividends paid, £4JL3,270-, 3auk of I? New Zealand— Oyerdraft 31st July' (repaid), M^lflis 3d V balance now at credit of, C3otn,pany, £8,588 Is; total ex« penditure, £459;071:8a 7d. .

~ " Statement of .Assets and Liabietcies to 81st jFtJI/r, 1851 of value of mine, plant, and machinery).—^Dr.—Assets : Cash at bankers—Q-eneral-aocount, £8,588 Is j dividend, £1,319175; ■ loan to United Pumping ABBociaUonj £3,075 5s jgdittp.to Toqkey Company on pumping account, £1000'; advanced for Golden Crown ditto, £146 35,4 d,; due to the Company for tailings sold July."27!, 12,321 6a9dj;,'lpr'Young l f,>Apierican shares, at cost, £137 ; total, Sie^sV l3a Id. Cr.—Liabilities: unpaid dividends, £1,319 17s ; excess of assets over liabilities, £15,267 16s Id ; total, £16,587, .13s ld> . 9

(t Oapitali Accottnt.—Dy.—To claim, plant, and machinery, £34,320. Cr.— By 2,860 shares of £12 each, paid up in full, £34,320.— ChabliKS TOTStLL, Legal Manager.- Examined and found correctV-—Michael Hannatoed, Auditor.—Auckland, August 22, 187 J." The reading-of that .portion of tK1' "eport which referred' fcb the .future good .ji^f** s**5** of the mine vwvs.receiv.ed with applaus^' ' . .Thei Chairman,ln'uioving the adoption of the report' and:"baltmce-"3li'eet, gave a history of the progress of> the mine from its opening in 1868. Mr. Wit. Hat seconded the motion. HCMafJ GaOMBiK" thought that directors ougW tp be above receiving au honorarium in tin > shape of £500 -a year. . (Cheers.) I He also ] made some remarks on the existingssystem of b obtaining gold from the tailings.

$£r. Aitken remarked that lie thought the oosition of director gave the holders an adtantage orer other shareholders which ought to render them satisfied without any remuneration- . . jlr. Tnojus Kussell replied giving a statement of the onerous duties imposed on directors, and thought that as a matter of principle they should be paid. He was retiring to-day, and was willing to stand or fall aB to his re-election, on the principle of paying directors. jfr. Aitk^n then made a few remarks in support of his motion for non-payment, which flerc received with much cheering. jfr. Ber^ham risked whether tho rotes of the Thames Gold Mining Company were to be taken jj" mass on this point. The jL^—IHMAN said they were. Jlr. beetham than asked whether the Thames Gold Mining Company was to swntnp the meeting. (Loud cries of, No !) Do not allow the same persons to manage the Caledonian as the Thames. (No ! No!) Call upon the directors to resign en masse. (Cheers.) In reply to the Chairman, Mr. Beetham explained that two directors of the Thames Company were also directors of the Caledoniim, and were thus able to play into one another's hands. Mr. Foley spoke against the payment of directors. He thought the state of the mine ought to he published daily. He was proceeding to inveigh in no measured terms against the management, but being called to order, subsided. Mr. Moekis thought it inadvisable to pay so lnrgo an honorarium. No one could tell how soon they might strike barren reefs. Mr. Bektham suggested that the appointraentment of a managing director might meet the views of the shareholders. ■ Mr. MoLixand said that if tho directors would only give reliable and honest statements of the mine's prospects, £5000, instead of €500 would not be too much. He condemned the prosont method of working the mine, and characterised it as utterly nefnrious, and a disgrace to any community. At present directors were able to fill their pockets by moans of the information they possessed, and withheld for their own interests. The appeal, for £500 was only a blind to gull the public. Mr. JRussnLi; replied, stating that-air information received by directors was always at the service of shareholders as soon as received.

Major Q-eoh&e snid he had been informed that private telegrams had been received by directors from the mining manager for their private use. He riid not say that any use had been made of them. He simply desired to oppose tho principle. Mr. H. Keesing, jun., thought that if mining directors were not paid for their work it would be compelling them to use their information for their own benefit.

Mr. Ceombir moved, and Mr. Aitken seconded, that th« report be adopted, with'the exception of tho clause referring to payment of directors." ■'•-•

A show of hands was then called for, but the Chairman staled that in nil probability the question would not be settled, by those in the room, but that a poll would be demanded. The hands were then counked,'and it appeared that there were 34 in faror of the amendment, and 40 for tho reception of the report in its integrity. . - Mr. Atken demanded a poll, and in answer to a question from the body of the hall, said the votes of Thames shareholders could be used. ■>

Mr. Hitdson and Mr. Beetham -were appointed scrutineers, and Mr. Thosias Ru3SEt, the retiring director, having been nominated for re-election, Mr. Crombie retired, and that gentleman -wns unanimously reinstated in office.

A long discussion took place in regard to the use of going to the poll, the propriety of the 'I'hameß Gold Mining Company being allowed to vote, and the paltry spirit which would bo ehown if so wealthy a company as the Caledonian should refuse to pay bo small an amount as was asked by the directors in return for expenses incurred by them in the interests, of the mine. Mr. Obombie then desired to withdraw his amendment, which, he observed, had no chance of being carried in the face of the opposition likely to be brought against it by Mr. Stone and Mr. Russell.

Mr. Aitken, who had seconded..(die amendment, would not consent to this cdttraev-k - Mr. Crombie thought it.jrduld Be as well to allow Messrs. Stone an&ißjissell to do what they liked. ; After some more rather warm discussion, the amendment was withdrawn, and the report end balance-sheet confirmed. . The usual rote of thanks i was then tic? corded to the Chairman, and the meeting separated.