DOMINION RUBBER COMPANY.

Otago Witness, Issue 2892, 11 August 1909, Page 16

DOMINION RUBBER COMPANY.

A meeting of the Dominion Rubber Company was held at the Chamber of Commerce or the 3rd inst. Mr W. L. Sireipson was in the chair, and there were about two dozen shareholders present. The meeting was called to consider and pass resolutions in the direction of increasing' the capital. These had been previously carried, but the question had arisen as to whether the procedure adopted had been regular. . The Chairman explained the position at considerable length. The capital called up to date equalled 10s per share, or, say, £6000, of which £800 was on deposit, and the balance, with the exception of a 6maJl amount of calls outstanding, and the local expenses had either been expended, or had been remitted to Mr Bell to be expended on the work of the plantation. The money At the present time was going out much more quickly than it was coming in. Mr Bell was drawing at the rate of £400 per month — £1200 per quarter, while calls could only be made to the extent of £600 per quarter. It, therefore, followed that, if the capital was not increased, the company would very shortly require to stop- operations at Kelante,n until funds accumulated, ©r obtain advances against its uncalled capital (a costly plan), or else devise some other way of meeting the difficulty. Apart from that, however, Mr Bell was of opinion xhat, if 500 acres were planted and completed by the end of this year, the subsequent wait until the trees reach fcbe productive period would absorb the present capital and leave t>he company £10QO short: so frhat, putting aside the question of proceeding with further planting, the present capital was ins-ufficienF to bring a plantation of 500 acres to the payable stage. It •wsu evident, therefore, that further capital was required, and the amount of the .increase was a question of degree only. The directors appreciated the arguments in favour of a small capital: but, on the other hand, Mr Bell, the only one who would be prejudicially affected by the proposed increase, as his holding of paid-up shares would be watered down thereby, had expressed a willingness to take contributing shares in the new issue, and recommended continuing planting up to 1000 acres, and the reasons in favour of that course sf>emed. to the directors, at any rate, 4o outweigh those which might be given ifor a curtailment of operations. Mr Bell estimated that to plant a second 500 acres some £6000 would be required, but, from their experience that estimates were generally under than over, the directors thought that it would be safer to put the probable ultimate amount that might be necessary at between £7000 and £8000. To provide for this amount, and in case of ffuture possible developments, the directors suggested that the whole 12,000 shares be cow offered (in the first instance to present members) the calls on which they suggested should be on the same terms as those elready issued. If all the new shares- wer« Applied for the application and allotment anonev would go a long way to tide over the sfiortage of funds alluded to, and. if It was at all possible the board would, if

fthe financial position would admit, endeavour so to arrange that the calls on the original issue of shares be made at longer intervals, and that the new shares be called up until they were of the same paid-up value as the original issue, when both lots ■would then be on the same footing ; but the action in ti is matter depended on whether or not tire whole issue of shares proposed to be made was applied for. While the board recommends the creation and issue of 12,000 new shares in respect of which, according to Mr Bell's estimates, some £7000 to £8000 may be called up, it haid no intention meantime of planting more than 1000 acres in all. The province of Kelunran had now been annexed by Great Britain. While this might ultimately be to the benefit of the company, Mr Bell apparently thought that, in fche outset, it would increase the company's expenses, owing to Great Britain's regard for the welfare of the native races, for, in an estimate regarding future cost, he had taken in a number of items not hitherto provided for, such as charges connected with labour, ' hospital, sanitary, and police regulations, but as no letter accompanied the estimate the directors had written to Mr Bell for explanation and further information, and until that came to hasd the directors could only mention the matter. He would now move the first resolution — " That tin capital of The company be increased to £27,000 by the creation of 12,000 new shares of the nominal value of £1 each." Mr F. MitchelJ seconded the motion, and said he did so with the greater confidence because he was quite satisfied that if Mr Bell or the other gentleman representing them in the East were present they would give the resolution their hearty support. Mr .Hille said that shareholders seemed to think that those who had first taken up shares should have a preference over others coming in. They said they were not in a position to take up more shares, and it was suggested that the profit from the first 500 acres should go to them, and none of it to the second lot of shareholders wfio came in. The Chairman said he was afraid that could not be done. Mr Frost said he thought those who put up the money first should receive some benefit. If the shares were not tak^n up by the present shareholders he thought the public should pay a premium. The Chairman : That 13 a suggestion that misrht well be considered by the directors. The motion was then carried. -. The Chairman then moved — " That the said shares be in the first instance offered to present shareholders pro rata upon their holdings, and that any balance remaining unaDplied for be then offered to the general public." This was seconded by Mr H. Adam and carried.

The question of an isolation ward at the Dunstan Hospital to meet the emergency arising in the case of any future outbreak of contagious disease, was feays theDur.stan Times) mentioned at last Thursday's meeting of the District Hospital Board, but it was decided -to hold the matter over for discussion at the annual nioctinij.