The meeting then broome an Extraordinary one for the purpose of passing resolution authorising the issue of dentures. Mr. Wingrove was "appointed Secretary to the meeting, and read the notice convening it.
The Chairman—Gentlemen, I have now to xsk you to consider the proposal referred to in the notice just read, and which has been duly advertised as required by the deed of settlement. It is the issue of further Debentures. When, two years ago, we asked you to sanction an issu of Tls. 100,000, it seemed sufficient for our needs, but it soon became evident that our business was again over-running our cash provision, Since 1897 we have ox-pended, beyond the estimates then given, about Tls. 45,700 on additional Mains, Tls. 10,800 on plant at the works, Tls. 19.300 on new holder and buildings, or, say some Ts. 76,000 in additions to the property of the Company, and at the seme time we have been compelled to hold large stocks of coal, fittings, ete. As I have mentioned to-day at the ordinary meeting, although during a portion of 1898 consumption experienced a check, an improvement took place later on, and still continues, and so soon as we can again reduce the price of gas, an increased development may be reasonably expected, necessitating further extensions of the Works, so that our need of funds beyond what we now have at our disposal, may be expected te increwe—and, anyhow, it is only right that we should be in' a position to finance, without having to go to the Bank for an overdraft for a lengthened period Believing that you will acquiesce in the views of the Board on this question, I may, perhaps, he permitted to put the resolution, without taking up too much of your time. It is unfortunate that when taking power to issue the Tls. 100,000 in 1897, we limited our power of borrowing on debentures to that sum, as thereby, our present issue must come as a serond charge. But our property affords such ample cover for Tls. 400,000—-which would be the total sum authorised for debentures, if the powers we now ask for are granted, that we shall really have a gilt edged security to offer investors, and it whould meet with o thoroughly favourable reception. I should say that although we are now asking for power to raise a further Ts. 300,000, we have no notion of borrowing anything like that amount at present; but as it may-be needed in the future it ly well to provide for a full amount, so that it may all rank as a second charge and not leave future requirement, to come under the disadvantage of a third charge on the property. Our present intention is to issue at such moment as may seem favourable, the sum of about Tls. 100,000 only, and as to the rate of interest we ask you to authorise a maximum of 7 percent. leaving your Directors to fix, at their discretion, the actual rate of issue, which they believe will be within that figure. It is proposed that the Debentures shall run for not less than five years, nor more than twenty years from date of issue. Before putting the resolution I shall be glad to hear if anybody has anything to say, (After a pause.) If not I beg to propose—That the Directors be and they are hereby authorised to create and issue Debentures providing for the payment of principal sums not, exceeding Three Hundred Thousand Tals Sycee Silver with interest thereon at a rate not exceeding seven per cent per annum, such debentures to be in such form and to be secured as a second charge upon the Company's undertaking und all its property both present or future or any part thereof in such manner and to be issued to such persons and on such terms as -the Directors think ex-lent. Provided that such debentures shall 0 framed a+ not to render the shareholders wwiduslly liable for any payments to be made thereunder.
That the forgoing resolution shall not be deemed to interfere with the powers of
Text read from the printed page and cleaned; old type leaves the occasional error.