SHOTOVER TERRACE COMPANY.

Evening Star, Issue 3793, 21 April 1875, Page 3

SHOTOVER TERRACE COMPANY.

The adjourned meeting of the above Company was held last night for the purpose of receiving a report from the directors upon the financial position of the Company ; also, to receive the report of the delegates who were appointed at the previous meeting to visit the *s claim and the adjacent locality, with the view of reporting as to the advisability of bringing in water. The directors report as follows :

The Directors, in recommending a course to the shareholders bearing on the future working of the mine, have to express regret that the past methods have been found so insufficient and unprofitable. They are of opinion, therefore, they would not be warranted in asking that any more of the Company’s capital should be expended in the same direction, even although the probabilities are that further prospecting might result in finding other rich leads of gold. Indeed, they are forced to the eonelubion that the Company committed a great mistake in commencing and continuing operations hitherto adopted on the adyice of those mining engineers they thought best able to advise, and to the carrying out of which the directors considered themselves committed. The Company might, by earlier availing themselves of their valuable water rights, the peculiar advantages the claim possesses for being worked by sluicing, and the sufficient capital then at their disposal, have been able now to point to a mining property and water race as valuable as any in the Colony, and certain to pay, from at least one source, large dividends for years to come. The present town dr ectors. however, cannottake blame for these mistakes. In justice to themselves, they feel entitled to remind shareholders that fortwo years the majority of them have given close attention to the affaire of the Company, besides becoming personally liabl“ for over L 2,000 to tide the Oom£any over difficulties brought on by the dis onorable action of several shareholders who refused to pay calls. From first to last they have never received any fee for their services. As, in the event of the Company’s affairs being wound up now, the mine and plant would realise only a nominal sum, and as the water brought to the mine from Skipper’s Creek, in accordance with the engineer’s (Mr Spence’s) repo 3- now read, would be in itself a property at all times worth more than its cost, the Directors recommend the shareholders to empower them to apply to the Government for assistance, either by money or guarantee, to the extent of supplementing the Company’s capital sufficiently to enable the construction of the proposed water-race; or, fading such assistance, to raise such further capital as may be necessary by issue of preference shares, being a first charge on the Cem. pany’s property, and bearing the guarantee of the Company’s assets to the extent of interest at ten per cent, per annum, besides an equal share in the profits after a similar rate has been divided among the other shareholders, and to proo led at once to bring in the water. As, although the engineer’s estimate of the necessary work is pnly L 6,000, in addition to which L 2.000 will have to be spent in constructing a tail-race by it would be injudicious to limit the extra capital to that amount. An amount which, added to the company’s present available capital, would raise the funds to LIO,OOO would, to be safe, be requisite. As the rich ground already worked by Grace and Eager will still undoubtedly yield a largo <mantity of gold by sluicing, as the level below the present workings has been proved very rich, and as the water-race will be in itself a valuable property independent of the mine—the directors have confidence in suggesting this course. The last call of 2s 6d was rendered necessary to meet pressing liabilities of the Company through a number of shareholders refusing to pay previous calls. As the shareholders are no doubt aware, actions were brought against a few of the defaulters, with an unsatisfactory result in the meantime. The directors, however, have appealed against the decision of the magistrate, which, they are advised, was erroneous. This course, however, has involved a delay and expense pressing unfairly on shareholders who have honorably met their calls.

Mr Barron said that he and Mr C. S. Harvey, who had been appointed at the last meeting to visit the claim and report upon it, were of opinion that the only course open to the Company for the successful working of the mine would be to abandon the present mode of working by tunnelling, and bring in water with which to carry on extensive alnicing operations—washing away all before thorn, which would involve an expenditure of between LB.OOO and LIO,OOO.

Mr H odqkin s moved— 1 * ’I hat a committee consisting of Messrs Mason, John Anderson, D. R. Day, Henry M l Donald, and Hodgkins be appointed to assist the directors in further investigating the matter of bringing in the wato , and that a report on the subject be, brought up at a meeting of the company to be held a fortnight hence.” which was agreed to, and the committee were re guested to enter into communication with the General Government with the view of asoerfc ining whal, assistance the Government wonld render the company in the way of advance under the part of the public works scheme providing for the granting of loans to mining companies).

An approximate balar ce-sheet showed a surplus of assets over liabilities of more than L 2,600. This sum did not include calls m arrear, about the ultimate recovery of which there was some doubt, nor anythin o for mining plant. **