Shareholders' Circular

Maoriland Worker, Volume 3, Issue 87, 8 November 1912, Page 5

Shareholders' Circular

THE WAIHI MINE.

NO FURTHER DIVIDENDS FOR

THE PRESENT,

In a circular to shareholders (says Wellington "Post") the Waihi Goldmining Company sets out the circumstances which led to the closing down of the mine and details of the trouble between the miners and engine-drivers over the formation of the latters' union. After stating that tho companies (Waihi and Grand Junction) had refused to make any new agreement with the Waihi Minors' Union until this union is again registered under the Arbitration Act, "as it is only when a union is thus registered that there is any guarantee that the terms arrived at will bo adhered to, and that an unexpected strike will not take place at any time and on any pretext," the circular adds that "in the existing circumstances it is impossible to say how long a period will elapse before work will be resumed."

"The stoppage of all mining operations during the strike has completely altered the estimates of output whichwere presented at the time of the general meeting, and whan the strike comes to an end the time necessary for dowatering tho mine and the scarcity of labor which is likely to prevail will necessitate a diminution in the Teturns from what they were before the strike. In the above ciiwumstances tihe question of tho quarterly dividends has received the most anxious consideration of the board, and in View of the fact that up till the middle of May the returns were not interfered with by tho strike, and seeing that £82,401 was carried forward from the accounts of last year, the directors feel justified in declaring a third interim dividend of 2s. per share, payable on September 2, but they consider it their duty to point out that no further distribution can bo made until the strike comes to an end, and even then its subsequent effects are likely to adversely affect future dividends."

With regard to taking up other properties, the result of the referendum showed that of the shareholders on the London register, 999, representing 125,673 shares, were in favor of the proposal. ,and 348 shareholders, representing 56.344 shares, were against it. As these figures represented a considerable divergence of views, and as strong opinions were expressed on both sides, the directors thought' it right that the views of New Zealand shareholders should be also ascertained, and this was being done.