IRONSAND INDUSTRY.

Taranaki Daily News, 17 June 1920, Page 4

IRONSAND INDUSTRY.

NEW ZEALAND IRON ORB (COMPANY PROSPECTS FOR THE FUTURE.' The adjourned annual meeting of the New Zealand Iron Ore Smelting Co. was held in the Soldiers' Club, Net* Uymouth, yesterday. Mr. W. J. Penn chairman of directors, presided over an attendance of 17 shareholders. In moving' the adoption of the report and. balance-sheet Mr. Penn said the position had not altered materially since tne oalancfi-aheet was circulated in December last, except that the director* had opened negotiations with a North of England firm. The position was as « a ?.„ evor ' flnd if t he re were no other., difficulties, this alone would have prevented the company continuing smelting operations. There seemed a few months ago to be nothing for it but hqu.dation. In February, however, the Prime Minister introduced him (the chairman) fc, Mr. P. Scott Leggatt, a director of the firm of Thomas Summerson and Sons, of Darlington, who was in Wellington for the purpose of inquiring into the possibility of establishing an iron industry in New-Zealand. The firm had experimented with Taranaki ironsand in an electrical furnace and entisfled itself that it had a commercial method of converting the sand into pig iron. As a result of negotiations Mr. Ljjggatt, after visiting New Plymouth, had submitted proposals to this company, which, however, required confirmation, by his firm. He had gone Home, and it waß hoped that on his report the firm would enter into a contract to smelt the sand for thiß company. Mr. Leggatt had submitted estimates showing that on a production of 7000 tons of iron annually the company would make a profit of about £26000 Mr. Leggatt's firm would find the plant and skill required, the company supply, mg the raw material and taking 85 per cent, of the iron, out of which, in addition to the cost of the raw material, the company would make certain other payments, including a sum fpr amortization, which would extinguish the cost of the plant by the end of the term of the present lease, the plant, then becoming the company's property. Mr Leggatt did not guarantee his estimates' but he (the chairman) passed them on for what they were worth, simply laying that on the figures given the proposals appeared very favorable to the company. The company was in no way bound to Mr. Leggatt, and was quite free to negotiate with any other parties who might come along. He (the chairman) thought the directors had done the best thing possible. Liqoidation had stared them in the face, but now he hoped they would be able to discharge their liabilities and hold their lease, for a time at any rate, and perhaps turn it to good account. Portions of the plant had been favorably sold and the main portion, it was hoped' would be sold very soon to the company being formed to develop the Onakaka (Parapara) iron ore. Mr. J. W. H. Martin seconded' the adoption of the report. Considerable discussion ensiled, many questions being asked and answered to the .apparent satisfaction of "the meeting.

The report was then adopted.' The following were elected to the vacancios on the directorate: Messrs C Goodson, F. J. V. Witson (re-elected)' and F. Jackson. Mr. V. Duff was reelected auditor,

Mr. Heskctt explained briefly the proposals in regard to the Onek'aka Company taking over the plant. Appreciative reference was made to the work done by; (the chairman of the company during its existence, and <t wa ß resolved to vote hi m a emill bonus. The hope was expressed that he would have a pleasant trio to Canada. r -