AN HISTORIC EVENT.

Dominion, Volume 6, Issue 1815, 30 July 1913, Page 10

AN HISTORIC EVENT.

THE OPENING OF THE REFINERY.

SPEECH BY THE CHAIRMAN,

MARKETING OF THE PRODUCT.

Monday was gala day in New Plymouth. It was tho day of the opening of the Taranaki Oil Wells, Ltd.'s new refinery, an industrial establishment which promises to play a very important part in the oil industry of New Zealand, it is tho,first oil refinery to bo ejeoted ill Australasia, and, providing a strike of oil is obtained, will prove an. indispensable adjunct to the industry. Moturoa, with its rising forest of oilwell derricks, "got gay," and sported long streamers of bunting across the Breakwater lioad and between the various buildings that go to make up the refinery. There were about 1000 peoplo present, and as many as possible crowded into the cauncry to hear the speeches, which were of an unusually interesting character, The Chairman's Speech. Tho proceedings ?vcre opened by tho chairman of the Advisory Board, Mr. C. Carter, who said:— ."This 28th day of July will be remembered as an eventful day in tho history of the Titrranaki oilfields, and not only eventful, but historical, aa it links up tho important past aud the more important part that has been played by so many of the pioneers of the oil, industry iii this very locality. Wo think to-day of tho pioneers o£ 50 years ago, who, with tho crudo machinery they had at their disposal, endeavoured to win from tho bowels O'f the earth tlie crude petroleum, tho' only indications to guide them at that timo being the seepages of oil at the foot of the breakwater. But this was sufficient incentive to encourage the belief that oil existed 1 in this locality, and with that tenacity of purpose which characterises our race,' syndicates, companies, and individuals have alike prosecuted developments in the hope of reaping a rich harvest from the discovery of oil, and we would not to-day forgot or despise them for their noble efforts. Ono of the difficulties th.it confronted, tho earlier companies in search for oil, and even our own company, was to find a market in which one could dispose of tho crude oil when won. This, however, was impossible, and consequently large storage accommodation had to bo made by excavating underground tanks, w'th the resu't that as o"'cklv ns the oil was won from the earth it had to : bo again returned there to await an .opportunity for its disposal. This determent has had a significance that has retarded development and prevented new companies „couiing into existence, but with tho advent of this refinery which we aro opening to-day, the whole scene is changed, and a field full of promise awaits tho investors. "We are here to-day, however, to celebrate the beginning of a new era in the oil industry. The Taranaki (New Zealand) Oil Wells, Ltd., having been so recently formed as May, 1912, have accomplished wonders in tho short timo since their formation by procuring and erecting one of the most modern and up-to-date refineries for dealing with crude oil. The transformation brought about on this spot during tho last ten months, by the bringing hero of this massive, machinery for treating our products, is only an evidence that tho work has been carried out with the greatest expedition and to the entire, satisfaction.of, the directors. and : .speaks volumes for the manager, Mr. iMillffr, who -has so assiduously and devotedly carried' oat this important undertaking without .a hitch. Tho sito on which this refinery is erected is unique as to its location, connected by railway,: in close proximity to the harbour, and in tho very heart of the oil-field itself. Wo aro greatly' indebted to tho Government for the assistance they have given in many ways to establish this industry both by the remission of duty and the bonus on tho crude petroleum, and, especially for making possible the acquisition of this site on which tho refinery stands. We intend to further show our appreciation by claiming as quickly as possible the ,£2500 offered , for tho first 500,000 gallons of refined oil. To try' and describe the.refinery is only bowildering, especially to the, layman,' but I havo no doubt from . what you have seen to-day you will have been profoundly impressed, and that you will also have concluded that you have something substantial to see for the large expenditure incurred. The ereotion itself has given employment to some 80 to 100 workmen for many months, and the cost of labour, material, plant, etc., as it stands erected, has been some .£35,1100. New Plymouth has benefited by tho circulation of some ,£15,000 which has been expended iii labour and materials in this connection, apart' altogether from large sums spent in drilling operations. Criticism has been directed against so large an expenditure on the refinery, and while a smaller plant could havo been secured, yet when completed would have been less satisfactory and less durable. Wo have now at least the satisfaction that .the plant is in every way adapted to the demands that will bo made upon it, and can be economically extended when required,. Additional cost was necessitated in making special prevision for plant arid machinery to treat the wax, so rich is our cruite oil in that commodity. Beforo passing away from further reference to the refinery, I would like, in fairness to file Homo Board, to state that they acted promptly in ordering and shipping the refinery plant, and the,firm that supplied it, Messrs. A. F. Craig and Co., aro to be congratulated in turning out so faithful and substantial a plant. Benefiting Nov/ Plymouth. "As some of you are aware, the Advisory Board havo been connected with tlio town lor molt) than a quarter of a century, and you will naturally understand that tlio ultimate success ot the industry cannot be anything but a matter of the greatest gratification to ourselves, and also to tho inhabitants of the district. We have noticed with greatest pleasure the increased interest the inhabitants have taken in the industry during tho past year. This, wo do not hesitate to say, lias been duo to tho splendid refinery wo aro opening to-day, and, let mo add, to tlio increase. in tne number of oil companies and now drilling developments which at present are in existence hero and in otner parts of Taranaki. Notonly docs this industry givo every promise of greutl.y benefiting tho town ot New Plymouth, as, indeed, it already has done so, but wo may claim for it an lufluenca on tho industrial life of taranaki, and when tho oilfields are in lull development 1 beliovo our industry will bo a real asset in tho industrial lito ot tho Dominion itself, and also in timo become of real service to tho British Navy. Having said this much concerning tlio benefit of the industry in tho town, our company view tho advent of other companies coming into tlio oil industry witli tho utmost satisfaction, and aro glad to know that tho practical results of our company, who are still putting down bores, has induced outside capital to come into the field. Wo are glad to see the indication of outside interest, and hope it will continue, and result in the profitable investments of capital employed. We have the assurance of friendly competitors that they would not have'come into existence if it had not been for tlio enterprise of the parent company. It is obvious that the parent company can be of immense service to operating groups over extended territory. Marketing of Oil. "It may be news to many to know that the potrcri tanks arc already full, nnd immediately the first consignment of tin plates arrives, the valuable product of the refinery will bo ready for sale. It may. be a source of gratification to many to know that the petrol that has been tested in New Plymouth motor-cars is believed to be certainly as good, if not better, than the imported article. With reference to the "products generally, I have only to assure you that they have como fully up to expectations of experts who conducted the preliminary tests. "It has long been known to us, and wo now havo tho absolute oroof of th« fact

that the percentage of wax in Taranaki crudo oil gives it a value beyond that of any other oil. ' When the refinery is fully employed, our output of wax will be seven tons per day. It is hoped, in time, to develop the valuable candlemaking business, of which our analytical chemist has a special knowledge. Already we have had numerous inquiries for the refined products, and every precaution will bo taken to allow no sample to'loavo the refinery that cannot hold its own against any outside product. We have now reached a time when we are able to turu'our other products into cash,' Field Operations. "Evidence of increased activity is visible from our own property. Tlireo new bores were commenced last week, and two other companies at least aro in process of formation, and will bo erecting derricks in the near future. All these activities are welcome, and thero is a certain gratification to us, as a company, that the pioneer work that has made production possible on this field is lulling into existence other oil companies to thoroughly prove, develop, and extend the field. There are evidences of abundance of oil for all, and there is no rivalry in an industry that belongs to all. Tho more modern methods of winning oil are now being applied, and although the present bores flowing of their own accord, without mechanical assistance, all lend additional evidence to expert testimony that under other conditions the oil can be considerably increased. Up to now, however, there has been no necessity to augment the flow of oil, but with the rehnery now in operation and capablo of putting through large supplies, the matter of stimulating production will be one that will demand the immediate attention of the directors and management." (Applause.) The speech of Mr. Okey, M.P., was reported in yesterday's issue of The Dominion. Question of Protection. Mr. C'. A. Wilkinson, M.P., said that he considered this was an occasion deserving of a visit from the members of the Ministry, and ho would have liked to see Mr. Massey and the other Ministers present. But they were detained by public business in Wellington. Ho was sure that this was an industry of national importance—an industry tliat would spread and develop and be' of benefit to tho whole of the people of New Zealand. He would always bo prepared to do all he could to help tho industry, and this company, or, at any rate," until they so developed it that tho district could s'port a few millionaires and develop a monopolistic business. Then he would bo bound to cut away. As a man who drove his motor-car, lie was interested in benzine, and was particularly pleased to hear of the excellent quality of the benzine produced ' here. Ho mentioned that in the last four years tho prico of benzine had advanced t>y 50 per cent. He considered that Parliament should help the industry by giving it protection, so long as prices were not unduly raised. He was glad to see a refinery established of such quality and such capacity, and in congratulating shareholders for having so manfully stuck to their guns, expressed the liopo that they would now como into their own. Ho wished tho company and tho industry every success, and' tru'sfce'd 'that' when Mr. Obey turned on the tap it would be but an indication of the prosperity to come. (Applause.) New Page in Oil History. Mr. G. W. Browne (Mayor of New Plymouth) also extended his congratulations. The happenings of that day opened up another puge in the history of tho development of the. oil industry of Taranaki. Tho provision of. this refinery for tho conversion of tho raw products meant the provision of immense possibilities of our fields. Mr. Browne laid particular stress on the importance of this refinery to the companies' of small capital, by giving them a daily market lor their raw product. 1 This would enablo companies of small capital to start boring in all directions, and to bccomo payabio propositions. This company was deserving of tho heartiest congratulations for undertaking the great expense of erecting a refinery right up-to-date, which should enable them to exploit the Australian market. His Worship understood that the intention of the present company was to extract tho oils and wax and that other companies would be brought into existence to manufacture such commodities as soap,, vaseline, candles, and so on, Taranaki, he felt sure, would not bo behindhand in these, enterprises. He regretted that the Minister Tor Customs was not present, for he might have been prevailed up6n to extend the frec-of-duty period mentioned by Mr. Okey. Few people, he thought, could grasp what a successful oilfield would mean to tho town and district; but they could all hope, as he did, that tho refinery would be kept constantly employed, and that the shareholders would in the very near future receive good, fat dividends as the reward for their enterprise. A' Patriotic Note. Mr. .T, D. Henry, technical adviser to tho company, said that he had intended reserving himself for a less ceremonious function, to ba held that evening. It was a source of immense satisfaction and pleasure to him that ho had met that very afternoon for 'the first time a lady who.had for a very long time been connected with the petroleum industry in New Plymouth, and who boro a name hnperi.shablo in tho history of the oilfields of Taranaki. He referred to Mrs. G. C. Fair—(applause)—who had turned the first sod of tho first well on tho present property. Ho wished with all his j heart that it could have been possible I for the lato Mr. Fair, who had done so j much for the industry, to be present that day. (Applause.) Ho would like to associate himself with tho generally-expressed > regret at tho non-aticndanco of tho Prime Minister and the two important Ministers ' who had been expected. When ho first came to New Zealand ho had been given to understand that tho industry would not receive a very full measure of support from the Government. But ho recalled with pleasure the keen interest that the Hon. T. Mackenzie started to take in the industry, and also tho interest taken by our lato Governor, Lord Islington. Mr. Henry said there was no doubt that Nature had given Taranaki vast sources of subterranean liquid wealth, and if these wore properly developed it would benefit the town of New Plymouth; tho people and I ho shareholders; the Dominion of New Zealand, and tho most glorious and mighty Navy in tho whole of tho world— tho British Navy. (Applause.) The Petrol Flows, In response to a request from the chairman, Mr. Okey, M.P., then turned on tho tap, which caused the petrol to flow from the storage tanks into tho waiting tins, a ceremony which was accompanied with great applause. COMMEMORATIVE BANQUET, MORE OIL TALK. In the evening (Monday) the opening of the refinery was celebrated by a dinner given by the company in tha White Hart Hotel. Mr. C. Carter was in the chair, and there were present:—Messrs. H. Okey, M.P., G. W. Browne (Mayor of New Plymouth), W. J. Penn (editor. "Taranaki Herald"). T. C. List (editor, "Taranaki Daily News"), Harcus Dimmer (Tun Dominion), E. Griffiths (managing director, Taranaki Oil Lands Acquisition ciinl Development Company), T. Furlong (chairman of directors, Inglowood Oil and Prospecting Company). F. P. C'orkil! (chairman of directors, Taranaki Oil mid Freehold Company), K. F. Blundell (manager, Bank of New Zealand, tho company's bankers), J. B. Roy (vicechairman nnd member of tho Advifovv Board). — Steverens (analytical chemist), D. M'Allum (director, Ngamotu Oil-

fields), E. H. Tribe (secretary to the company), .Miller (refinery' manager), L. Keith (manager of tho company), J- D. Henry (technical adviser), J. Little (member of tho Advisory Board), and A. Blantou (Tub Dominion). The chairman remarked that at tho afternoon function an apology .should have been acknowledged from Sir George Clifford, a member of the London beard, . who had been a "tower of strength," and who was unable, on account of illhealth, to bo present that day. Geological Data Wanted. Mr. J. Little proposed "Tho Parliament of New Zealand." He remarked that their own member of Parliament, Mr. Okey, had given them an account of what the Parliament and the Government had done for the industry. He thought that as the oil industry was going to grow largely and rapidly* more rapidly than the Government imagined, the Government should make regulations in connection with the drilling of wells. In other oil countries it was compuU-ory for contractors or drillers to cement up all abandoned bores, on account of tho dangers from surface-water. The Government Mines Department could also do good service by making it compulsory for companies drilling weib to submit to tho Department a statement of the strata pasi-rd through. This might in the future save many thousands of pounds to futuro prospectors for oil. Mr. Littfo then eulogised Mr. Okey's consistent advocacy of tho Taranaki oil industry. A Stirring Up. Mr. H. Okey, M.P., in responding, said that when there wrs in an electorate such an industry as this it was tho duty of tho member to bring it prominently before Parliament and before the country. Members were returned to do their best for the Dominion and for their own portions ' of it. Ho doubted whether tho Minister for Trade and Industries knew his portfolios, for had he done so he would havo been present at tho opening of the refinery that day. For his own part, he did not know who that Minister was. If even half of tho time spent in party bickerings were devoted to assisting such an industry tho country would bo ever so much better off. Ho condemned tho wnste of time in party politics, and believed that the Minister in charge of the Department of Trades and Industries should really be devoted to industries. There was ironsand on tho New Plymouth beach that would be the basis of an industry, and that day's proceedings would have an important bearing on that industry. The Minister and the Department needed stirring up. Mr. G. W. Browne proposed "Success to the Oil Industry of Taranaki." There was not a" man present, he believed, who did not believe success was assured. From Moturoa that day they had been able to sco derricks springing up in all directions, all due to the enterprise of this company. The foundation had undoubtedly been laid of tho future of a big and successful industry. Tremendous Possibilities, Mr. J. D. Henry, who was greeted with' applause, in replying to tho toast, apologised for the absence of Lord Itanfurly, who, with Lady Hanfurly, had quite intended being present at that day's ceremony, and had, up till two days before tho speaker's departure front London, arranged to be there. Had Lord Ranturly come they would not have had to deplore the absence of Ministers, to whom reference had been made already. He then referred to the chairman ot the New Zealand Board of Directors, Mr. C. Carter. The speaker was probably able to more fully appreciate than anyone present tho services rendered to the company and to the industry by Mr. Carter. (Applause.) He had seen Mr. Carter in his dealings with tho sharp business men in Londou, and also in Taranaki hero, and ho had always displayed supreme tact and worked with the tireless energy characteristic of the man in everything that ho did. Mr. Henry remarked that tho speakers that day had kept themselves well in the local arena, but ho would like to take them away to somo of the older historic spots in tho oil world. It had been hi* good fortune, he said, from a professional and experience point of view, to ba in tho centro of three of tho most famous oil booms. The first was in Galicia, a country that their manager, Mr. Keith, knew well. At Beryslaw tho strike of oil was small. But when they struck ill New Boryslaw ono bore after another cams quickly, and in a short time there was being developed ono of the most valuable oil belts the world had seen. Any two of the best wells on that field wero worth more than the whole amount sunk in the present venturo in Taranaki. He was also present in Texas when Captain Lucas, boring for sulphur, accidentally came across oil in a territory where no oil was expected to be found. -This was at Spindletop, and in tho coiirse of eight or nino years there had sprung up very largo towns where before tliero had been but prairie. If these things had happened there, in a territory where no oil was suspected, what might bo expected to happen in Taranaki, with its surface indications, its geological data, and other numerous indications? It was reasonable to suppose that hero they would have a colossal industry. As for the future of the industry, it was very difficult and exceedingly dangerous for a man in his position to try and forecast the future of an industry of this kind, but if they could rely on the outcrops near the Breakwater, the wells on the Moturoa field, the indications inland—the indication at German Hill and at Inglewood and other plaees—and on top of that tho enterprising peoplo of this country, they must have not only a genuine oilfield, but an. oilfield of tremendous possibilities. They had undeniably established New Plymouth on the oil map of tho world, and the only way i to keep it there and make Ne,w Plymouth famous was for them to be loyal. He spoke at some Jength in complaint about the manner of anonymous criticisms published in the correspondence columns of the local press at times, and considered that such criticisms should be signed. Passing on to what he termed the "surrounding developments," Mr. Henry said these were highly gratifying, and that nothing had given him greater pleasure than to see the Galician type of derricks rising close to their own field. He welcomed Mr. Griffiths as a producer, and he hoped ho would be a great producer— that he would "live in oil, play the game of oil, and be successful in oil." Referring to Mr. Morgan, tho Government Geologist, and his evidence given before the Empire Trade Commission, Mr. Henry said that "either this refinery will be a monument for me or a gravestone for the professor, or a gravestono for uie and a monument to Mr. Morgan. I bclievo it will be a monument to mo and a gravestone for Mr. Morgan." Mr. Henry considered that the evidence had been wrong and wicked—he would not say deliberatemisrepresentation of the state of tho oil industry in Taranaki. He hoped Mr. Morgan would havo an opportunity of going over foreign oilfields, thero to add to tho knowledge he now had. and ho would then be competent to express an opinion. Tho speaker closed an interesting speech with eulogistic reference to Messrs. Keith and Miller. He was extremely proud to find an absolute chorus of praise of tho thoughtful and unostentatious manner in which Mr. Miller had carried out his duty as refinery manager. Tho director:, in London would personally aiul collectively bo gratified to find the manner in which Mr. Miller had worked his way into tho affections of the. Now Plymouth people. Mr. Keith was tho most experienced man who had ever drilled in the oilfields of Taranaki. He would say that now, and he would bo prepared to say it in front of any audience' in the future. Mr. Keith had started drilling in Canada, and had drilled in Galicia, and in that greatest of schools, Rumania, afterwards coming to Australia. Tie trusted that nothing would interfere with the continued employment of these two men with the present company. Ho asked his hearers to believe that without a shadow of doubt they had two of the ablest men to drill for and refine their oil. "I Told You So!" Mr. iJ. B. Roy, in proposing "Other Petroleum Companies,' remarked that the men with whom he had been associated had been actuated not by personal gain but to make the industry' a success and to plate New Plymouth in her proper place. He was sorry that somo of tho causes which had retarded the industry nroso in New Plymouth itself. There wore still i;i tho town people who would like to seo tho oil venturo fail, just so that they could say, "I told you so." These people hadn't the pluck to jbin in, but wroto anonymous letters to tho papers. Speaking on behalf of tho "parent, ccHiiu-'iiy,-' Mr. l!oy snid tlicy were not sensitive or annoyed because other compnnie* had come in. The moro ponuiuii drilling companies thnt came in tha better for the industry, and he wolcomed'

■ the advent of these, in the hope that they would assist in making this an Imperial industry. Telegram from Prime Minister. At this stage a telegram was received from the l'rime Minister, as follows:— "Much regret tnat owing to tho pressure oi business here it is not possible tor a Minister to bo present at the ceremony in connection with tile opening of tne New Plymouth refinery to-day. lam delighted to know* that the opening oi tho wciks was suceesslui, particularly in view of tho great importance of the industry to tho Dominion as a whole.—W. F. Massey." Tho toast of "Other Petroleum Companies" was responded to by Messrs. F. i\ Corkili, E. Griffiths, and T. Furlong. Mr. Corkili said that in this great enterprise there was room for fraternity among the companies. A mistake had been matle in the past by tho various companies standing aloof from ono another, and in declining to exchange reports upon tho progress of drilling, tho strata passed through, and so on. The managers had not fraternised, and the drillers had "not played speaks." This was quite wrong. He remembered that on one occasion a party or' Utago College studonts had been refused permission to visit tho works at Moturoa. No, ho replied, in answer to an interjection, Mr. Carter was not chairman then. He had taken up a different attitude. He was glad to know that there was now on tho part of tho Taranaki (N.Z.) Oil Wells Company a feeling of the utmost cordiality extended to his and other companies. Mr. Corkili supported Mr. Little's suggestion that a better record should bo kept of strata met with in drilling, and so on. This field was practically unknown, geologically, and the Government should appoint a competent man iu Taranaki to visit tho different bores and make a chart from reports received. A Fine Stimulant. Mr. Griffiths expressed gratitude and thanks for the erection of the refinery, for had it not been ior his being ablo to stato that tho refinery was to bo opened it would havo been impossible for him to havo brought to a successful issue the company ho was interested in. Other companies, he know, wero in the same position. The refinery would do as much for the oil industry as tho dniry factory had done for tho dairy industry, by making tho raw material into a marketable product. Ho trusted that when next the Customs tariff was revised oil-boring and refining machinery ivould be placed on tho frco list. Referring to Mr. Okey's remarks concerning the Government bonus, Mr. Griffiths let it bo understood that his company intended to bo in the raco for tho ,£2500 bonus for tho first' 1,000,000 gallons of crude petroleum won; Many more companies would soon bo operating, ho was convinced, mainly because of tho cxisttenco of the refinery. He referred in terms of praise to one of tho "absent t'rionds" of tho industry, Mr. H. J. Brown, who had iloated the present company, and said that probably no one away ironi New Zealand was more interested than Mr. Brown was in that tfay's proceedings. ;\fr. Furlong, in the course of his reply, said his company had been formed for the purpose of exploiting somo territory in tho Inglewood district. They had obtained one of the latest drilling plants from America, and had sunk a well somo 2500 feet deep, striking much natural gas, etc., and had then run out of money But lie hoped that with, tho assistance of English capital the company would bo reorganised and would recommence operations, for tho company Was still existent and still holding to its rights. The Staff. The chairman proposed "Tho Managerial Staff of the Taranaki Oil Wells, Limited." As chairman of tlio company it gave him great pleasure indeed in moving the toast. As chairman ho had been brought very closely into touch with tho ctaffs, and he could speak of tho cordiality amongst tho members and the enthusiasm and interest in tho work. The company had every cause to bo grateful for tho manner of men on the staff. He hoped that in the coining year, thero would bo good results from tlio Bell Block bores, winch would give an unprecedented impetus to the affairs' of the company and which would mean that the future success of the industry would bo assured. Mr. Keith, responding, said credit was duo to the chairman, Mr. Henry, and tho directors, for the work of tho past twolvo months. The whole community was looking forward to the Bell Block operations. Prospects there wero better than for kouio timo past, and he hoped in the next few weeks tD give better results than had yet been achieved. Mr. Miller thanked tho chairman and his colleagues for tho assistance given him. Mr. D. M'Allum proposed the health of, "The Press," and remarked that they had received very groat assistance from tho press. Ho complained, however, of the amount changed for advertising. (Laughter.) Ho made the remark that tho refinery had been instrumental in causing other oil companies to bo formed. Suitablo responses wero made by Mr. W. S. I'enn ("Taranaki Herald"). T. C. List ("News"), .and A. Blanton (Dominion).