MINING

Taranaki Daily News, Volume LIV, Issue 33, 2 August 1911, Page 3

MINING

.o r CONTRIBUTING MINING- SHARES. P '' LIABILITIES OF HOLDERS. f A point of considerable interest to ' speculators in mining scrip has been raised'as the result of holders of contributing shares in the Mount Zeehan Gold Mining Company recently receiving notice from the liquidators that the balance of the uncalled capital, amounting to lOd per share, was to be. called up. This is in connection with the voluntary liquidation of the Mount Zeelmn Company, with a view to tlio transference of the property to the Zeehan Consoldated Company for certain share consideration. It is stated the legal position is sound that when a company has to be wound up, in which there are contributing shares, the full payment of the uncalled capital can be enforced unless there is special provision in the articles of association against such a course being adopted. Although this has not been done in Auckland, it is held to be legally obligatory upon the liquidators in the case cited. Owners of paid-up shares will probably get a dividend of sixpence per share out of the amount now being called up, and the payers of the call should receive back as a final dividend about half of the lOd they have to pay. | This, says the StaT, opens up scope for quite a nice system of making money for the professional company promoter, and one that has been, overlooked. A few men need only start a mine, float a company with shares in -which they get liaJf the issue paid up allotted to I them, then calls can be made on the : buyers of the contributing shades until shareholders are tired of paying. Voluntary liquidation follows, with a windingup call of the whole of the unpaid capital, and the promoters get half the amount paid in as trio final call given them in the shape of a final dividend. The whole thing is so beautifully simple that it is a wonder so many years have elapsed without the great possibilities of such a system of making money having been discovered. As far as the Mount Zeehan Company is concerned, it appears that all the shareholders were equally surprised when it was found that the whole of the capital must be called up in the event of liquidation taking place, so the holders of the paid-up issue in that company cannot be credited with having exercised the forethought to meet the present contingency. The only point they are to be congratulated upon is that they get a dividend without paying a call, while the other shareholders pay the call and get only half the amount back as div idend.

TELLURIDES PROPRIETARY CO.

Word! wa.s received in'town yesterday by the local directors from the mine manager that he had intersected a lode in the Gordon level, five feet in diameter, showing good telluride ore at different points across the reef.