OAMARU STONE COMPANY.

Oamaru Mail, Volume II, Issue 556, 12 February 1878, Page 2

OAMARU STONE COMPANY.

A meeting of the shareholders in the above Company was held to-day at the Mechanics' Institute- There were present—Mr. Steward (in the chair), Dr. Garland, Messrs. Gibbs, Balmer, Church, Hardy, Allen, Lintotfc, Spence, Humphrey, Sumpter, and Mitphell. The Secretary (Mr. J. Booth) read the following report : Your Directors in presenting this, their first report, have to state that at a meeting of gentlemen favorable to the formation of a Company for quarrying and exporting Oamaru stone, it was resolved that a Company be formed, with a nominal capital of L-25,000, in 5.000 shares of Loeach. Mr. J. K. Brown was appointed agent and secretary pro tern., who immediately prepared a prospectus, also a pamphlet, containing a full report of evidence taken by the provisional directorate, which has been freely circulated here, in Christchurch, Dunedin, and Melbourne, resulting in the application for 576 shares, upon which, the deposits have been paid. There are also other applications for 175 shares contingent upon satisfactory arrangement" applicants for the purchase of their interest in their respective quarries. ' Your Directors regret that it has been found impossible at present to dispose of a sufficient number of shares to enable them to float the Company as originally proposed. This unfortunate result is owing chiefly to the present disturbed state of the Melbourne market, and to the difficulty under any ph'of placing shares in a distant maikefc until the Company is advanced another stage. They are assured by their Melbourne br jfcers, that were the Company in possession of quarries they would have no difficulty in placing the shares reserved for that market.

your Directors, however, are gratified to be able to report that the result of their inquiries in Dimedip. co-ri-w-run, miIjoL.ic, ana eisewuere leads them to conclude that an extensive trade can easily be cultivated, and only awaits the formation of a Company. Having given the matter their earnest consideration, they have resolved to recommend such a modification of their original proposals as will enable an immediate commencement of operations to bo made ; while, also, it will not prevent the Company's capital from being increased at any futiv e time, provided the operations of the Company warrant such a procedure. Although it is deemed by some desirable to purchase quarries, your Directors recommend tha*, instead of being proprietors of quarries-, the Company should act as an agency by making arrangements for the purchase of stone of the first quality suitable for the Company's requirements. This might be obtained, and contracts entered into by tender or otherwise, as the permanent directory may consider most advantageous. By this means they are of opinion that a large and profitable trade to the Conipany would be the result —which would be the means of developing this important industry, and thereby considerably adding to the wealth and importance of the district; and at the same time would require a much smaller capital than originally pro-

posed. This plan would plaee the Company in a position to offer reasonable security for the execution of the largest contracts, and with safe and proper delivery of the stpne, a most profitable business could with good management be done. It may be added that hitherto proprietors of quarries have not given the Director.? that support which might have been anticipated. ' T|>is may be explained in various ways, some proprietors wishing a monopoly. The new scheme will briug all proprietors into competition, and will obviously have a tendency to ensure a supply of the' best quality of stone at the lowest possible price. The Directors are of opinion that for the modified scheme proposed a capital of will suffice, which they suggest should be in L 5 shares, and called up" as occasion requires it, being of course optional to those whose deposits have already been paid to place the sums so paid to the credit of the shares to be allocated on the new basis. J. Booth, Sec. pro tem.

The Secretary also read a memorandum of agreement drawn up by Mr. Balmer to meet the altered state of affairs. The Chairman briefly explained the reasons which had actuated the Directors in deciding to modify the proposals in regard to the floating of the Company, and the manner in which it was proposed, should the modified scheme be adopted, to carry on the affairs pf the Cpmpairy. He said that the Directors had found it necessary to send a representative to Melbourne, Duuedin, and Christchurch. The The greater portion of the work had fallen upon Mr, J. K. Brown, who had undertaken to go to Melbourne for the purpose of endeavouring to float the Company. The Directors had promised to pay him a certain commission upon the number of shares disposed of, should the Company be successfully boated ; iut he was not to be paid anything if die affair did not prove successful. Mr. Brown had at his own expense proceeded to Melbourne, and had incurred a very large amount of outlay iij. obtaining practical information, and in printing, He certainly thought that Mr. Brown fliduld receive I some remuneration. \ Mr. Booth said that Mr\ Brown was I unable to be present at the rfeeting. He

flad received a letter torn Mr. Brown, who was'in Wellington, bating that he thought there was a good mwket for the stone in that place, if it were placed ia the marked at a reasonable price. ■ ..-■' Mr. Hardy certainly thought new proposal was by far a more safe urA than the original scheme. * Some little discussion of a desultory nature having taken place, Dr. Garland proposed that the report be received and adopted. Mr. Hardy seconded the motion, which was carried.

Mr. Allen then proposed, ''That, in the opinion of the shareholders present, it is desireable that a company be formed on the basis now proposed, and that the. following gentlemen be requested to act as a Provisional Directorate of the said Company, viz. : —Messrs. A. J. Garland, C. S. Allen, C. Galbraith, T. Prooter, G, S. Lintott, J. J. Spence, S, Gibbs, Geo. Sumpter, J. W. Humphrey, .7. Booth, B. Balmer, W, J. Steward, J. Hardy, and J. with power to add to their number."

The motion was seconded by Mr. Gibbs and carried.

On the motion of Mr- Hardy, seconded by Mr. Gibbs, it was resolved, "That Mr. J. Booth be requested to act as Secretary, and that he be deputed to obtain the signatures of intending shareholders of the first proposed company to the agreement for incorporation on the new basis." The agreement as proposed by Mr. Balmer was then signed by all those in

;he room. A vote of thanks having been accorded ;o the Chairman, the meeting terminated.