ISLAND CREEK COMPANY

Greymouth Evening Star, Volume XXXI, 27 November 1901, Page 3

ISLAND CREEK COMPANY

Claim Alleged to HaYe been « Salted."

(our own correspondent )

Dunedin, Nov 27.

An extraordinary general meeting of shareholders in the Island Creek Gold Dredging Company was held last night to consider the following circular : " Your directors regret very much that the results of dredging operations have not borne out the prospects put before you by the vendors, but quite the contrary, and are exceedingly sorry to have to call you together to consider the advisability of liquidating. The dredge was kept going until the bore, which was pronounced to be so rich, was reached, and the result of a week of actual dredging, right on to the bore, is 2ozs for 80 hours. This is so contrary to what should have been got, had the yield been in accordance with the prospects said to have been got by the vendors, that your directors feel that thoy must say that thoso prospects, to say the least of it, were very mi leading. The dredge is now closed down, and your directors have written to the local vendor asking him for an explanation as to the results of work as compared with prospecting."

After discussion it was resolved that as the claim will not pay for dredging, the Company go into voluntary liquidation. A telegram was received from Westport from Mr Gibbard, stating that he was positive the claim'had bten "salted," and suggesting instituting proceedings.

The chairman said he thought there would be no difficulty in taking proceedings, either by themselves or through the Shareholders' Protection Association.

A long discussion ensued after which it was resolved that it be a recommendation to the liquidators to contribute something in conjunction with other companies— Wareatea and Fairdown—to prosecuting of those suspected. Work on both the Wareatea and Fairdown claims have boon suspended. The latter Company's pontoons wero launched some time ago but little machinery is on the ground.