PAPAROA COAL CO.

Dominion, Volume 3, Issue 850, 23 June 1910, Page 2

PAPAROA COAL CO.

MEETING OF SHAREHOLDERS. ADDITIONAL CAPITAL REQUIRED. About fifteen shareholders of the Paparoa Coal Company, Ltd., attended at the Chamber of Commerce at tho hour fixed for the annual meeting yesterday. Mr. J. P. Maxwell (chairman) announced that tho quorum required to go on with tho business (£26,000 of the subscribed capital) was not present. In the hope that enough shareholders to complete the quorum would shortly arrive, those- present settled down to hear the chairman's address. Mr. Maxwell pointed out that although during 11m past year the company commenced to put out coal in small quantities, progress from various causes had been much slower than was anticipated. H was expected that thu Government branch railway, which was then fifteen mouths later in completion than the Minister for Public Works had promised, would bo open for traffio at a very early date. Only a temporary service, however, of an unsatisfactory character, was started on the unfinished line by the end of September, and business was carried on with much inconvenience, arid subject to exceptionally heavy and unprecedented charges and conditions by tho Public Works Department on the Government line. After an appeal in April last to the Prima Ministei, by thu companies jointly concerned, this objectionable arrangement was abandoned at the end of last month, and tho Railways Department then commenced to run its engines through tho entire distance from Roa to Ngahere, on the Reefion-Greymniltb line. This was an improvement, and relieved the company from an excessive chargo imposed by tho Public Works Department. The line was. not, howover, yet opened for' public traffic, and the conlpany had not yet the full advantage derivable from it. The mine development had brought tho workings into three areas of suund coal, aud the permanent rope was now running on the upper incline, replacing the temporary arrangement previously in operation. The output now available was 1500 tons weekly. They had thus arrived at a stage when the mine might be pronounced to be a going concern, and future progress would depend mainly upon tho market for the coal. It was anticipated that tho initial difficulties were overcome, and that coal to meet the demands of the market would henceforth be available. It was absolutely essential that thu company should have additional funds to carry on its business mid to provide a hulk to establish a trade in coal supplies for ocean steamers. About one-third of tho second issue debentures had been taken up so far. The directors looked to the shareholders to assist them furthei, oa they considered that the present issue should bo subscribed I'ullj for tho purposes indicated in tho circular.. Great difficulties had now been overcome aud the directors have good reason to believe that the expectation:) (if the field set forth in the prospectus will bo realised. The trials by the Ad•miralty, the Gear Meat Company, and the Wellington Meat Export Company had shown tho coal to be suitable for shipping, stationary engines, and power gas purposes. Thci naval authorities had intimated that the coal had been used under various conditions and found suitable to use in H.M. ships, and the company had contracted to supply such quantities as the output and absence of hulk storage justified. The practical assistance and support of shareholders and debenture holders would be essential in"'advancing, tlib success of tho enterprise. It was also well for shareholders to bear in mind that the property was one of exceptional character mid magnitude, there being no sucll great deposits of coal known in such ti compact area in any part of 'Australasia or any coal of higher calorific value, and that although the weeklv output now available was very small (ioCO fatas only) in a comparatively short tuno.it could, if thoro was tho demand, be increased up to 1000 tons per day, the appliances provided being equal to this. The chairman also announced (as reported elsewhere) that work had been resumed at the mine The meeting adjourned until Wednesday, July 6, at 3 p.m.