BLACKWATER GOLD DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 1 October 1901, Page 3

BLACKWATER GOLD DREDGING COMPANY.

The following report has been issued to shareholders :

“ The directors regret to report that notwithstanding every appeal to shareholders for payment a largo amount of arrears of calls still remain unpaid, and they have therefore been reluctantly compelled to institute legal proceedings for their collection, thereby involving law costs which should have been unnecessary. It is to bo that suet steps should have been requisite whilst only lls of the capital has been called up but the difficulty of obtaining payment simply ties the hands of the directors from making any progress with the company, and involves serious loss and manifest injustice upon the shareholders who have met their engagements and who most naturally look for progress being made. Moreover, many shareholders whose arrears may be quite sound have failed to respond to the pressing demands made for payment, and by their attitude have aggravated the difficulty and have ranked themselves as amongst the number whose money may not be forthcoming or at least can only be got in compulsorily. Instead of sending in their cheques they have favoured the directors with much advice as to procedure and progress .whilst they themselves are participants in causing delays. The directors have already pointed out the probability of their having opportunity to purchase a suitable dredge at much less cost than building one, and also the desirability of their being in a position to do so at any moment, Some have already changed hands which they might have procured had the company been prepared to purchase. But they desire to reiterate that purchasing means payment and payment means cash in hand, not only to acquire a dredge but to meet the cost of removal. The directors desire to make it plain that they will certainly not interpose their personal guarantee for any purchase, and it is equally certain that they cannot and will not enter upon a purchase till the means of paying for it are assured. The diffi culty in procuring payment of calls up to this point make this attitude the more imperative because of the doubtful anticipations created in respect of any future calls. Shareholders will, therefore, understand what is required of them, and that the attitude of delay adopted by so many means |the delay not only of their own business, but that of the more prompt shareholders.

The directors have, therefore, again to urge an immediate response to their demands as the only way to ensure action. Failing this the directors cannot proceed, notwithstanding the esteem in which the claim is held.