The notice convening the meeting having been read, The Curway said the question of consolidation was not quite as simple as the directors expected it would be at that meeting, and they had therefore, after consultation with the legal adviser, come to the conclusion that it would be Detter to ask the meeting in the first place to alter the deed of settlement, and then proceed iumediately to the real' business of the meet the proposed consolidation, The deed of settlement, provided for almost every cou tingency, but it did not p lo for consyli dating or amalgamating the company with another; and consequently, if it' were decided then or in the future to amalgam it would be, if not impossible, very dificult to do it under the present deed of settlement. The effect of the resolution drawn up by Mr, Dowdall would be to lo the directors to arrange for the amalgamation of the company with another, in the same way as they could at pressel arrange for the sale of the company; and it gave them a little more liberty with regard to the amount of the purchase money. was proposed to strike out one clause which did not hamper them in selling the company, but would hamper them very much amalgamating, because what would be received was not money and it was a question whether it was worth what was given for it or not. Their legal adviser, in short, had said an amalgamation was not possible under the deed of settlement, and had prepared @ resolution embodying the necessary alterations.
Mr. Sexrance asked whether, supposing the deed of settlement was altered as proposed, that would confer upon the directors the right to amalgamate with or without the consent of the shareholders.
The Cnatnaas replied in the affirmative, The right would not be subject to the vote of a meeting, as the directors might aualgamete "at their discretion." Mr. Dowdall pointed out tu him that it was advisable for the directors to have full power in order that they might not be hampered in dealing with other people.
Mr. Tutors thought that if anything necessary had been omitted from the deed of settlement, the sooner they set about correcting it the better.
Mr. Dovcras Joses said he had never known in the course of his experience a company in which the directors had abso lute authority to wind up without the consent of the shareholders, The Cuatemax here announced that a suiicient number of shares to enable the alteration in the deed of settlement to be made were not represented, and consequently the question would have to stand over. Passing on to'speak on the question of amalgamation, he reviewed the history of the negotiations, and went on to refer various points which would have tu be considered, He could not say whether the mining laws of Colorado limited the liability any way; but in one of the deeds which had been Sent from Auerica it was provided that the capital stock should be issued fully paid and non-assessatle, He was not prepared to say what the effect of this Would be, and of course further information on the point would be required. At the end of the Just meeting he had been under the impression that the present one would be to a great extent formal, but circumstances had arisen within the last few [weeks which had materially altered the state of affairs. Several telegrams had been received from Mr. Waters, the first.on 18th Muy, to the effect that it would be better to abandon the idea of amalgamation rather than consent to it with the head office in America. These telegrams, which would be read, showed that Mr. Waters had apparently changed his mind on the subject. [Te would be well for the shareholders to consider the position as regards analgama-[tion, If they did amalgamate, it would not be necessary to make the changes which
but if they retained control of the mine were contemplated in the management several changes would be necessary, euch as the appointment of an assistant manager and an accountant at the mine, Several telegrams were then read that had passed between the Company and Messrs. Waters and Porver on the question of the head-otice being in America, and j also a letter from Mr. Waters on the' subject of the comparative value of the three ing claims. It appeared to be his opinion that, in spite of the difference in size between the Suugyler and either of the other two claims, the richness of the ore in the Smuggler quite made up for it, and that j inthe event of the three Companies amal-gameting, no one Company would benefit, materially at the expense, or to the disadvantage of, either of the other After some further obser tious the Cuatesay proposed—That the Directors be and are here authorised and. instructed to make such arrangements as are in their power for aecepting the proposal made to then by the President of the Smuggler Mining and Milling Ca,, as set forth in the printed form submitted to shareholders at the extraordinary meetin, held on March 3ist, for the amalgamation. of the three companies, the Sheridan stining Ca., the Mendota Minin; and the Sumggler Mining and Milling be.
Mr. McLeov seconded.
Mr. Dovotas Joxes moved as an amendment that the question of consolidation be postponed till October 16th next in order give ample time to receive an explanation from Mr. Waters and consider the same.
After considerable discussion (in the course of which Mr. $. Morris urged the desirability of obtaining thoroughly independent report on the mines) the Chairman suggested that the motion for adjournment should read as follows the 16th day of Septesuber next at 2.30 o'clock That this meeting do stand adjourned till
in the afternoon at the secretaries' the The motion in the above form was then moved by Mr. Burman, seconded by Mr. Hogg, and carried, whereupon the meeting stood adjourned.
Report for presentation '0 the shareholders at the adjourned annual general meeting on 3ist July, 1890.
Full details having been received from America, the Directors now place before the shareholders the following amended statement of accounts, The Working Account, and Profit and Loss Account of the Sheridan Mine remain exactly as in March, but one slight alteration as toe made inthe balance sheet ramisted by tte Sheridan Company to America in January a sum of gold $17,000 was
Text read from the printed page and cleaned; old type leaves the occasional error.