THE TITANIC STEEL SAND COMPANY.

Evening Star, Issue 3672, 28 November 1874, Page 2

THE TITANIC STEEL SAND COMPANY.

A meeting of the Dunedin shareholders in the New Zealand Titanic Steel Sand Com* pany was held last evening in the dining hall of the Provincial Hotel, Upwards of forty gentlemen were present. Mr D, M. SpEDuriso, who was called to the chair, said that they had met for the purpose of considering the b st means of resisting payment of further calls in the Titanic ''toel .Sand Company, in which they were all shareholders. He was ghvl to notice such a large attendance, and had no doubt be was under the estimate in similising that considerably over :.i 0,000 worth of sha-es was represeuted in the room. They did’ not desire to iedst payment of further monies to the company through any fear of the company not being a financial success, but simply because they hid been led to take shares through false representations made to them through Mr Smith, the company’s agent—reprts ntatious which the directors of the company refuse to recognise. Mr Smith had guaranteed that their liability should cease on payment of L 3 per share, and that on payment of that amount they should receive their scrip. He had guaranteed this to shareholders over and over again, before hosts of witnesses. He had held public meetings, reports of which were published in the ‘ Daily Times ’ of 16 hj August, 1873, and Evening tau of following day, in which he is reported to have publicly stated “ That the shares were originally LlO, but they had been reduced to E3, and “ that those who now took up scrip at L 3 should be considered promoters, and would be entitled to fully paid-up shares,” Some gentlemen present had, on these representations, taken as many as 10, l shares, expecting their liability to cease on payment of L3OO, but now the directors wish tore pudiate all Mr Smith’s promises, and so these gentlemen find themselves liable for Ul,ooj each, a sum far in excess of what some of them can pos-ibly afford to pay, tic (the Chairman) had no doubt that Mr -mith had the full sanction of bis directors for all he did, ai the directors must have noticed reports of his public meetings in the Otago papers, and if they had not sanctioned his abasements, they should at once have given them a contradiction. He (the Chairman) had even been promised by Mr tmitb (and he understood others in the room had been promised the same) that ten per cent, discount should be allowed on immediate payment of the full L> per share. Acting on this promise, he had offered the full amount to the secretary of the Company aud had asked for his scrip ; but some time afterwards he received a Utter refusing to accede. They bad, however, stuck to his deposit money, although paid to them under these sp cial circumstances. The directors eppvar to be like the man in a certain comedy who iudignantly refuscd largesse when offered, yet held out his open hand behind him to receive the money. So toey indignantly repudiate the means which idr -miih used to induce anplican s to forward money, yet at the same time they coolly receive and pocket it. He understood that Mr Smith had now beeu dismissed from the company’?- employment, and tiie secretary has coolly informed some of them that they can lake act.on agamst v ;r > anth if he has mi led than ; but that the directors will neither roi.inn their money nor carry out the agreement on which the money was paid. JSow, some fifty of the shareholders had received summonses for the amount of their calls due, and to appear at Wellington at dates varying from the 11th to the 18th of December, It would now rest with this meeting what course of procedure sh >uld be adopted. The shareholders present represeuted about three fourths of the company in Utago, and it would be well that they acted unanimously. They had tak-n up their shares under gross representations, and they had a right to demand that Mr

Smith’s promises should be carried out, or that money sliou’d be returned. However, the matter uiiglr. be decided legally ; the. o wis no dor. c that, in equity, the shareholders held the safest position. He would now be glad to have the matter fully discussed, an* s me resolutions come to, as to the coni*je to be adopted. After some discussion, the following resolutions weie uua limous y carried :—“ I'hat this meeting considers that .Mr >mith had full authnn y from his direc ors to guarantee that a payment of L! per share should entitle s iirehokiers to receive pai t up ser p, as such guarantee bad been made at. public meetings and report«*d in the Pro\m:i 1 Press without contradict on f oiu the dir* ctors lhat si.ar- hdd rs here took up their shares miner such guarantee, and now deterin n i tint, unless legally compelled to d > so, they sh ill pay no more cabs.” it was a.reed 10 get Mr Stout to act for the general body of shareholders.