N.Z. OILFIELDS CO.

Dominion, Volume 6, Issue 1862, 23 September 1913, Page 7

N.Z. OILFIELDS CO.

RELATIONS WITH LONDON. r

THE STATEMENT OP A^mECTOlff'

(Br Toleerajli,—Proos 'Association.! < Clsbarne, September 22. - Interviewed in regard to a cable meiS*sago from London regarding tho Now 'Zoaland Oilfiolds Company, Mr. W. Lissant Clayton, local aireotor, explained that, whilst ,tho articles of assdeiatioa gavq tho local advisory board all requisite powers (subject to tho veto of tho London Board) reports and urgent representations from tlio local Hoard, in tho majority of caßOs, had been absolutely ignored, and it Wb only recently that they had boon glvon any hoaring at all. Quite eighteen months ago the looal board had gone as far as to threat-' on to circularise the English shareholders over tho way in which matters wera being conducted. Tho original concessionaire referred to in the cablo was himself, and tho whole of his remuneration had been paid in shares, which, by a clause in the London Stock Exchange rules, could not bo disposed of for twelve months after tho flotation of tho company. Furthermore, he had had to pay brokerage on the total subscribed capital of tho company out of bis consideration. Tho original options wero transferred by his attorney in London to Mr. Fred Georgo Clark, of Loudon, who, in turn, transferred to tho G.M. Oilfields, Ltd. (otherwise Mr. George Macdonald), and ft number of gentlemen associated with him, and tno M.T.M. Syndicate, who became tho promoters of, and also tha vendors to tho Now Zoaland OilfioldSi Ltd. On April 7 last tho local board receiv« od a 'oable from tho London directors, stating that a powerful oil corporation intended to put £100,000 into tno com* pauy on certain terms and conditions. As to tho reconstruction of tho company, the conditions mot with the entire approval of tho looal board, with tho exception that they considered that the transaction should not take the form of a sale to a new company by tha present company, as the present shareholders would have their shares classcd as "vendors' shares." Tho reason for this was that the London Stock Ex-, change rule would havo precluded share-' holders dealing with tlioir sharos for twelvo months. The local board replied by cable on April 12, accepting, with j tlio stipulation mentioned, but recoivedj no confirmatory advice until tlio end or Juno, when thoy received a letter dated May 10, stating that tho conditional specified did not appear to bo any ob-. stacle. A week later thoy received a, brief letter, intimating that negotiations had fallen through. The company had. not written or cabled giving tlio local,j board any information as to tlio trend) of affairs until twenty-eight days after receiving tho reply from tho local' board. , ... Tho company, Mr. Clayton added, did not seom to bo at the end of its re--, sources. A substantial amouut lies to 1 its credit in tho bank hero, whilst, further, it is known that substantial offers were mado quite recontly for cortaiu of tho concessions, and, as far as is known hero, tho liabilities of the company aro comparatively small and un« fmportant. ..... i. [Tho London cablo on which tho abovcr interview hinges read as follows: —At a meeting of creditors and shareholders of "Tho New Zoaland Oilfiolds," tho official receiver reported that tlio prospectus sufficiently disclosed onormous profits to the promoters.. It appeared that tho original concessionaire was will* ing to sell his interest for £50,000.The company paid £110,750 for it. Tha company started with a working capital of £52,500. Tho expenditure included) ±!7000 to Mr. Macdonald for acquisition, of tho Gisbomo Oilfiolds. This was; dropped, as tho report was lmfavour- 1 able, but Mr. Macdonald retained thtr cheque.]