The following report was taken as read : —

The directors have now the pleasure to submit to the shareholders their report for the year ending 31st August, 1881. The directors think that they may fairly con gratulate the shareholders on the results of the year as shown inthebaliancc-sheet. The affairs of the company have progressed so smoothly during the year as to call for no special remarks, except with reference to the purchase of the Eliottvalo property, of which shareholders have already hoard. This property is in respect of quantity, quality of coal, and ease of access, fully equal to the company's present mines ; and, looking to the increasing consump tion, the proved suitability of the coal for locomotive purposes, and the fact that the purchase would remove all serious risk of opposition, the directors considered that they were consulting the best inter ests of the shareholders in securing it. As the coal has proved so successful on the railways, the directors are inclined to think that it might be well to take steps to open the field at once, if for the pur pose of meeting the railway supply only. The directors will .isk the sanction of tbe shareholders to this course if circum stances appear to warrant it. A consider able portion of the purchase money has ; been provided by calling up 1-f) per share, j the amount unpaid on 580 shares at the date of the last balance-sheet, thus ob taining L 5220. The directors consider that this will be ample to provide in this way. The call became payable on the 31st day of August, but the amount thereof will not participate in the divid end recommended. Of the balance stand ing to credit of profit and los<s. the direc- | tors recommend that a dividend at the rate of 10 per cent, per annum be de clared, and a bonus of five shillings on each share in the company. The above dividend and bonus will absorb the sum of L 2096 ss. The directors recommend that a further sum of LGOOO be earned forward to a general reserve fund, to cover contingencies, &c, and that the balance— Llo7B 12s 10d— be carried for ward. The dividend will be payable at the company's office on and after Monday, the 10th day of October. 