DUKE OF WELLINGTON DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 30 December 1901, Page 4

DUKE OF WELLINGTON DREDGING COMPANY.

Like a large number of other companies (says the Otago Daily Times) the Duke of Wellington Gold Dredging Company now finds itself in financial difficulties, and the position of affairs is set before shareholders in a circular just issued by the directors. The directors’ proposal made to the Lord Nelson and Major Eobin Companies has not met with the approval of the latter, and they have now resolved to issue debentures for the sum of £2 10s each to the extent of £2,500, bearing interest at the rate of 25 per cent,, with »• currency of two years. The balance payable on the machinery contract is £1,318 12s and the engineer’sjestimate for freight cartage, erection of machinery, and equipment of the dredge is £1175. Smaller amounts bring the total liabilities up to £2,797, against which there are assets amounting to £286, leaving a deficiency of £IB7O. From this it will be seen that unless £2,000 is forthcoming the directors cannot proceed, but the shareholders are urged to take up the full issue, so that there may be no difficulty with regard to finance when the dredge starts. The contractors for the machinery have made a generous offer, having expressed their willingness to take up, if necessary, £BOO worth of debentures as against the amount owing to them, and to forego interest if the company is a success and their debentures are paid off first; but in the event of the company having to go into liquidation, they would rank with the other debentureholders. The vendors have already guaranteed to subscribe £SOO towards the issue. Applications for the debentures close on January 21, and if any are not applied for then the directors will dispose of them as they think fit.