TARANAKI OIL.

Dominion, Volume 3, Issue 875, 22 July 1910, Page 8

TARANAKI OIL.

GOVERNMENT ASSISTANCE WANTED. DEPUTATION TO MINISTER. A deputation representing tho Taranaki Petroleum Company waited on the Minister for Mines (the Hon. R. M'Xenzie) yesterday, to ask for Government assistance for the industry. Mr. Carter, chairman of directors, stated that the company which lie represented had now reached a very import-ant stage in the development of tho industry. Success was within sight, and the prospects were good in all three bores. No. 2 bore was yielding 100 barrels of oil a week, No. 1 was being cleaned out, and No. 3 was down to a depth of 3500 feet. The indications that had . been obtained were good, and it was intended to carry tho boro down to a lower level. Unfortunately, however, tho company was getting very close to the end of its resources, and it would be a great pity if it had to sell to an outside concern. Tho directors calculated that the company would bo at the end of its resources in nine months, and, accordingly, suggested that of the 39 acres of tho prison reserve, over which the company had boring rights, an area of 10 acres should bo leased to it for 21 years witli a perpetual right of renewal. If this were agreed to, it was proposed'to erect on the land a refinery, and for that purpose the company would ask the Government to lend it £10,0C0. The property would he given as security. t Mr. M'Keiiaio: Rather a curious proposition! Vou want tho Government's own land, tho Government's money, and then would give tho refinery as security for the loan after it had been erected with Government money! Mr. Carter explained that the company desired to erect its refinery on tho Govern-

merit reserve, because it would bo convenient and closo to a good supply of water, as well as to the railway. The proposed reilnery would be capable of dealing with 250 barrels of oil a day. The present conditions of the Government's bonus for the manufacture of pure kerosene oil in the Dominion meant that tho company would have to win 1,300,000 callous of crude oil before it could secure the advantage of the offer. They suggested that a bonus of threepence per gallon should be paid 011 tho lirst BOU.OOO gallons won after the reliuery had been erected. Up to the present 90,000 gallons had been won. The Minister said that the proposition put before him was a very attractive one from the point of view of tho chairman of directors and the company, but it wits not so attractive in the eyes of tho Government. The company wanted the Government's land, or, at ail events, a of it, £10,000 and a bonus of threepence per gallon. Would it not bo better for tho Government to erect the refinery and relino for the company? The Government was being asked to lend the money, but if the industry was not a success in its second stage he supposed that tho Govern, ment could "go and whistle jigs" for its loan. He advised the deputation to put its proposals in writing, so that he could lay them before the Minister for Finance. Mr. Carter said the company would be prepared to consult, with the Government before parting with the industry. Sir. M'Kenzie said the Government, if it did anything to assist the company, would see to that. It would take steps to protect its own interests. Mr. Carter said at present the crux of the whole position lay in their being ablo to refine the oil. They would then have to 'cope against the biggest trust in the world —the Standard Oil Company—and they would have to depend on tho Government to help them then. They could not cope with the company. by thomsolves, as it would flood the market with cheap oil. Once it was developed, special legislation would be necessary to deal with tile whole industry as in Canada. Mr Bellringer pointed out that tho company was getting about 100 gallons a week, and that the weekly sales averaged only 10 gallons. That left SO gallons a week, for which storage wae required, because the company could not refine the oil. The company had had two offers for the industry, one of which, he had no doubt, would have gone to America, and the other to Germany. In justice to its shareholders the company would have to accept the biggest price it could get from anyone at all if it was not assisted by the Government. Mi. Okey, M.l'., pointed out iu regard to the suggestion that the Government should erect a refinery, that the company which had dono the prospecting and started the works deserved to be protected. Tho Minister said he recognised that there were verv great possibilities in Taranaki oil lor the whole Dominion, and lie would like to encourage the oompany so far as he reasonably could. He thought it would be a fair thing to ask Parliament to give a reasonable assistance, but at present the company wanted to get everything and give nothing in return. The Government was not Jit oil afraid of a German or American company purchasing the works, because it proposed to protect its people against both German and American syndicates. "We'll be tho controlling power," said Mr. M'Kenzie, "no matter to whom you sell." The Government would not allow any large industry in New Zealand to be exploited by any other country. Ho would place tho deputations representations before the Minister for Finance. The money would havo to como from the Statu Guaranteed Advances Department, which would require some reasonable security.