'An extraordinary meeting of this com-any was held at the Secretaries' Office jukiang Road, on Tuvsday afternoon to Boardof Directors borrowing money beyond uss an ordinary resolution to sanction the
the eum they are by the Dead of Settlement authorised.to' borrow." The notice convening the meeting also said the intention of the Directors is to raise money by: the issue of Debentures (instead of increasing the capital as proposed) to pay off the Company's indebtedness."
ChairmanyHL. Morriss, T. Wood (Directors), Those present were Messrs. McLeod, Jaques, E. Jenner Hogg, J. Danenberg, R. M. Campbell, A. Thurburn, G. Galles, H. J. Limby, W. J. Clarke, J. Mf. Young, Captain Shaw, and C. Dowdall (Legal Adviser), representing in all 1,602 shares.
The notice convening the meeting having beet read. 7 The Chairman said: Gentlemen, since last met on 90th May, we have been in constant communication with Mr. Waters and.Mr, Morrison, at the mine at Telluride. Each telegram as it has been received has been posted-on the board of the company's offices, and you have probably read them all. As mentioned at the last meeting, it was our intention to wait until we got some definite information from the min order that we might come before you with a definite proposal to raise the fund we require to pay off our present indebtedness. Unfortunately, the telegrams received have not been of auch w satisfactory nature could have wished, and wo- gain find: ourselves inthe difficulty of doubting when ther it will be possible to raise the money we so urgently require by the issue of debentures. Before we cat make arrangements to issue debentures or borrow: money cur legal adviser informs us it is necessary a resolution should be pasted' authorising the directors to borrow the money in excess of the sum mentioned in the Deed of Settlement as being in the power of the Directors to borrow without reference to _|the shareholders. By an ordinary resolution passed at any meeting it is in your power to give the requisite permission to exceed the sum mentioned there in the Deed of Settlement, which is Tls. 50,000. At the present moment, as far as we can ascertain,—in fact it is accurately ascertained—our position is this, we are in debt to the extent of G. $46,000 on a bill due on 30th June, The 30th April accounts which have been received only last mail show we have an over-draft with the Bank at Telluride of $8,000, and probably. by the end of this month the working penses of the mine will have brought up that indebtedness to $14.000 or $15,000, We therefore. stand in the position of owing something somewhere in the neighbourhood of $60,000, and before we can borrow anything to pay. off this Bill which is due 80th June, it is necessary a resolution should be passed giving us increased borrowing powers. The resolution that been drawn up is as follows, and you can discuss it afterwards: That sanction be, and is hereby given to the Board raisin; money beyond. the extent authorised by the Deed of Settlement; provided only that the monies at any one time owing shall not exceed $100,000." That is the resolution which will have to be proposed, and it is for you to say whether it shall passed or riot. Thereis a second resolu-
The Chairman—The total amount of ore
tons, giving a net result of G.§5,111, or about $9 a ton.
'Mr. Thurbarn—Has the whole of this money to be found' by 30th June The Chairman replied that the amount was $46,000, but the Directors had reason to believe that if they were able to raise half that sum the balance would be carried over by the Bank of Denver. 'The Board had only got that as a suggestion from Mr. How; but it was probable the Bank would allow half the amount to stand over for a short tithe, OF course the Directors' idea all along had been that the work of the mine would have been such that there would have been very little difficulty in paying off the indebted-the net receipts; but of course up to the present they had been disappointed, If the company did not raise the money the bill would go back to the Bank De and they would take what steps thought proper, mort to an Tie "Chairmay- Oh, no. The bill we Mr. OnupbellThe mine has not been
have to meet was granted on the name of Mr. Ernest Waters; I do not think they would have granted it on the name of the Belmont Company.
Mr. Thurburn enquired whether the Directors had any definite views to put before the shareholders, The Chairman—We are very anxious to have the views of the shareholders, Undoubtedly the simplest way would be to issue debentures, but whether they will be taken up or not is more than T can say. We have discussed the mutter several times, and we thought perhaps by offering 10 per cent, we might get them taken up tion which has been ssu; ited, and thi is to the extent of Tls. 26, tothe effect: 'That the Directors shall Mr. Galles thought' there might be a be instructed ply the first m possibility of getting the money if a favour-borrowed to paying off the present i able report arrived on the 28th. As far as debtedness of the company." Our leg would be ditticult to raise the money. matters at present, he thought it viser has suggested that these resolution should be put separately as being most Mr. Hogg: Who is responsible for desirable, and if you have no objection having led us into this debt without our that course we propose to adopt. Before sanction; is it Mr. Krnest Waters asking you to pays these resolutions, of The Chairman:—No, I don't think we course we shall be glad to reply to any can say that, questions, or give you any information Mr. Campbell suid they had sanctioned which you may wish for; but I think it is an expenditure of Tls. 60,000 for the mill better that you should ask for anything you and tunnel. The tunnel had not been wish, sooner than I should make a long touched, and the mill bad cost Ts. 67,000. statement, part of which may not be of any The overdraft was $62,000.
forest to you. I shall, however, be gind it. Wood: That is an estimate up to if you will ask me for any information you the end of June; it cannot be so much os may require. that. Wo may get something in June, Mr. Galles remarked that the advertise-On 30th April, it was $46,000. ment in the newspaper said they were Mr. Campbell repeated that the original going to borrow on debentures only. estimate for the mill and tunnel was Tis, 50,000. The tunnel had not been The Chairman—It simply states it was the intention to issue debentures, and that touched, and the other expenses and the is our intention now, if we can do it; but mill together had got up to Tls. 112,000. if the debentures are not taken up, I think He thought the best thing would be to leave the matter alone until the mine was the Directors ought to have some other powers given them to endeavour to raise the money in some other way.
Mr. Morriss—How can we develop the Mr. Hogg asked what were the latest mine without more money The Chairman assured the meeting the letters from the mine.
Mr. Wood replied that the last letter Directors had no intention of incurring expenses which could be avoided. They was dated Lith May. It was from Mr.
'J. A. Waters, who stated that the will absolutely no power to make any arrange. ments for borrowing unless these resolu started on 20th April. On 30th the Directors tions were passed. If they were passod telegraphed to work the mill day and night. the Directors would do their utmost, On dth May, Mr. How telegraphed that they had been working since 30th April. either by trying to issue debentures or borrowing the money on a promissory The letters of 4th and 14th. May were note secured by as many shareholders then read, describing the work carried on as they could get to put their names at the mine. In the latter it was said that down for a certain amount, to carry the the mill had been working steadily; two company over the 80th with the Bank of Huntingdon mills being worked at their Denver, full capacity. Mr. Waters further said that After some further conversation, at the close of the month's operations he Mr. Campbell proposed, Mr. E. J. Hogg would be enabled to fill in and send the seconded, and it was agreed to unaui-Board the first regular monthly report on mously—the mine and mill, and this would be sup-
and every detail relating to the property.
Bleceatod by 2 fall dean pies, of the work That sanction be and is hereby given to the Beard. to, rane money beyond the tanh authorised by the of Settlement to an Mr. Galles—What have they crushed extent not exceeding Tls. 50,000.
Text read from the printed page and cleaned; old type leaves the occasional error.