On Monday afternoon the annual general meeting of the shareholders, adjourned from 27th April last, was held at the offices of the No. 6, The Bund. Mr. A. J. How (Chairman)' presided, and_there were present, Messrs, A. McLeod, Henry Morriss (Directors), R. Hough, J. D. Thorburn, J. Jaques, L. Ede Waller, A. Thurburn, 0. Middleton, H. Symons, Galles, W. Dobie, and T. Wood Secretary), representing 1,394 shares.
who Secretary having read the notice convening the meeting, The Chairman said—It is needless perhaps to tell you that it is with unmixed feelings of regret that I meet you here to-day, for it will be my painful duty to place before you a statement of accounts recording the disastrous termination to our enterprise of which only a year ago the most sanguine anticipations were entertained. You are aware that the property was acquired on the recommendation of Mr. Ernest Waters, who was held in great repute here. He gave a report upon it with which you are all familiar, and had his estimates been only partially realised T should have met you under much more favourable influences, but they have, T am grieved to say, been' in all instances disappointing. The vein was stated to be 8 feet wide, the inference being that it was ed that I did not proceed to the mines in August last, and I must preface what I have to say on that point by stating that my own interest in the mine was unfortunately so large that I should have needed no pressure to go there could T have foreseen the slightest possible advantage from it. But Thad, as it were, only just left the mine, having spent three weeks there in May. I was in constant telegraphic. communication with the manager, his letters reached me in a fortnight, and I thus knew quite well that the difficulties which bexet him were so purely technical that I could not have been: of the slightest. assistance. regards financial matters, the only obligation which the company had did not mature till January in this year, and 1 am convinced that the journey would have' entailed an absolutely needless expense which the Company was in no condition to afford, Our only alternative was to push work at the mine with all possible vigour, 80 as to test its merits and capabilities to the utmost. To have stopped mid-way would probably have left us under the impression that we still had a very valuable property, relying on which you might have pledged yourselves to further obligations which could only have ended in heavy calls. The only consolation that it is left to me to offer you is the sale of the property for a sum that practically covers all its liabilities, for I was always fearing that you would possibly have to provide for all free-milling" ore, bat actually it has a very serious deficiency. Before I ask proved to be so broken up by trachoyte you to pass the accounts and to accept: a or barren rock that the "ey, streak " does resolution, which will afterwards be offered not average more than 2 feet. "The ore you, for the liquidation of the company, itself by the tests and assays of actual \Tshall be happy to answer any question mill-rans was said to possess a value of or to give you any further information $27 to $30 per ton, the lowest return—you may desire. that from the dump—yielding $14.50 Mr. Middleton—Thunk you for. giving and $15 per ton. The result of our six such u very clear exphination as to how the months! working gives it an average value me stands.at present, but T believe in of $9.39 only. he mill was to have cost 1891 you went over to the mine? $30,000, but in round figures $68,000 was. expended upon it. The estimate for mining The Chairman—-No, 1892, last year. and milling the ore was $5 per ton. The Mr, Middleton—As far as we. knew you actual cost for mining alone, including actually confirmed the lying reports—and haulage to the mill, has been $7.89, and we can call them nothing else—which the for milling $6.02, or for both $13.91, to engineers sent to the directors here, You which there has to be added $4.89 per ton were over there, I believe, in September, for general management expenses. so that anyhow you were there, the total cost per ton has been $18.80, the Mr. Morriss—In the spring of 1892. product yielding but $9.39. These charges Mr. Middleton—You wrote letters over were aggravated by natural difficulties confirming the previous telegram received which at the time were beyond control from the engineers. I have Mr. Ruttun-When the snow first began to melt in th joe's share report and it snys here—and it spring the water came down in such tor-was also printed in " daily paper here—rents that everything was carried away. that owing to the exceptionally favourable Then there was too little of it, or it came letters, confirming the telegrams received, so charged with sand and slime that the prospects were very encouraging. pes became choked and then burst.
Mr. 'T. Wood—What is the date of that?
thunderstorms of unusual frequency so Mr. Middleton—I do not know the date; affected the electric plant that the arma-did not bring the date with me. tures were destroyed und there was great Mr. Morriss—You might read Mr, How's delay in replacing them, so that in the result letters to the meeting. the mill instead of treating 50 to 60 tons Mr. Middleton—This appeared in Mr. per day only averaged tons 17.28. To over-Ruttunjee's report and was printed in the come these difficulties an entirely different North-Chinn Daily News, and was challenged arrangement would be necessary, the expense of which would be very great, and to the Afercury and challenged it. Through ina Shanghainewspaper, and myself wrote even then there would be no possibility of those letters that you wrote, or the gentle-and tilling below Mr. Argall's estimate of bringing down the average cost of mining man who was sent—I do not know whether it was you or not~-many men in Shanghai $8 or $8.50 per ton, which would be in-purchased shares. I myself bought shares creased to $10.50 or $11 by management very heavily, on the strength of the letters expenses, Our actual working, cost, if confirming the engineers' report. Now we
of our mill power, almost exactly agrees ced in proportion, to the full enpacity told that the vein is no good., Previously we had telegrams to say they had with Mr. Argall's estimate, so that the only struck a rich bed of ore. Now, we are hope of doing better in the future than in told the vein is nothing, and practically will the past would be in striking richer ore, but not pay for working." I think you must Mr. Argall sampled the mine in its most admit yourself, that either you went over promising parts and his assays returned an there and took in everything that was told a of $9.50 per ton, our actual results, Tete here that that mine was no good. you, or you must have known, when you as I said before, yielding $9.39 per ton.
There was s hope at one time that the mine The Chairman—I am not responsible for might be leased, but the proposal was vague and indefinite. in the end it came to nothing, what Mr. Ruttunjee says. If you can tell
ud the royalty suggested was so small that MMe Middleton—I " should not_ have me geything 1 said I ain quite prepared to justify it. it would not have sufficed to pay the interest on our indebtedness. I understand thought that Mr. Ruttunjee would have, the shareholders were somewhat disappoint-put it into his report if
Text read from the printed page and cleaned; old type leaves the occasional error.