LANKEY'S CREEK COMPANY.

Inangahua Times, Volume VIII, Issue 1293, 5 September 1883, Page 2

LANKEY'S CREEK COMPANY.

The following reply has been forwarded by the Reefton Directors to the Shareholders in Dunedin : — Reefton, A ugust 25th, 1883. To Messrs Elder, Watson, Spedding and Gregg, Committee of the Lankey's Creek Gold Mining Company, Limited, Dunedin. • Gentlemen. — Having read the newspaper report of the meeting of shareholders held the 14th inst, which was duly considered at a full meeting of the local directors, we were appointed on their behalf to reply to the various charges made therein It was stated by the Chairman of your meeting - "That the Reefton Directors had sent a man to Auckland to buy second-hand machinery, and that it was a fact that Messrs Kincaid & Co. could have erected as good or better for just onerhalf the cost " The directors never sent anyone to Auckland on such a mission, they certainly took advantage of Mr Beeche, (one of their number), being at the Thames on a visit, to ask him to see if a suitable plant could be obtained. The directors at the time were in communication with Mr Elder, Mr Haworth, Davidson & Conyers, Kincaid JW 'Queen & Co, and the Davies Foundry upon the subject of machiuery, and the result was they received two offers to supply as follows:— No 1. February 2nd 1882, from Messrs Kincaid M'Queen & Co- Dunedin, 10 head stamper battery, sfcwt stamps, 18 h.p engine and boiler (without any berdans) for £1171, delivered at Greymouth. Terms cash. No 2. February Bth, 1882, from A. and J Price, Thames, 10-head stamper battery (as good as new), 7cwt stamps. 20 h.p. engine, boiler 24ft. (new) and 2 berdans (new), £795, f.o.b. Thames, costing with freight and all charges £902, delivered at Greymouth Terms half cash, balance at 3 months from shipment. The directors after mature consideration authorised Mr Beeche on the 24th February to close for the Thames plant, and the Dunedin directors were informed by wire of their decision, which was considered very satisfactory. The cost of the battery plant, including carriage from Greymouth to machine site — Road-making— erecting the batteryhouae. and erection of machinery have been £2268, and the directors fait to see how your Chairman's statement can possibly be correct, viz. that Kincaid and Co. could have erected as good, or better for just half the cost, say £1134, when that firm's offer was to supply an inferior plant with lighter stamps for £1171, and that only delivered at Grey mouth . The directors fairly claim to have exercised due care aud judgment in the purchase and erection of the Company's plant. ■ As to the charge of *' squandering away £6000 in a monstrous manner," we can but say it is incorrect. The facts are briefly as follows :— £l2oo, raised by sale ] of 12,000 shares © 2/-, given to the com- ■ pany by the promoters, went to purchase ( the claims, rights, water-races and dams '.

held by the miners who had lodged objections to the granting of a large area to the company. The total expenditure of the company (excluding the item of £1200), will be covered by 18 calls of threepence each, amounting to 4/6 per share, or £5400, and deducting say £3000 for battery plant, coal lease, road, and management, will leave £2400 as the coat of opening up the mine, constructing paddocks, shoots &c. r and repairs to races and dam 3. The charge made by Mr Spedding as to the suppression of reports is unfounded, the matter of Mr Nichols report (if any), was fully explained by us in our letter of the 7th November last and rests with the Dunedin Directors, who sent Mr Nichol over to examine and report on their behalf. The monthly reports and minutes of Directors Meetings, have been forwarded by the legal manager, regularly to the Dunedin Directors for information of shareholders. As to the more serious charge of " the whole thing being a premeditated swindle" we can only treat it as beneath contempt, feeling sure, that all right-minded shareholders will give us credit for acting fairly and honestly in the interests of the Company, and exonerate us from such base calumny. On behalf of the Reefton Directors D. P. Andbrsok*| Thos. Hunter > Directors. John B Bbbohb J