PATEA OIL AND FIBRE MANUFACTURE.

Patea Mail, 10 July 1882, Page 3

PATEA OIL AND FIBRE MANUFACTURE.

FLOATING THE COMPANY

A meeting of shareholders and provisional directors of the P.O. and F, Manufacturing Company (limited) was held on Saturday, in Mr W. Cowern’s office. The share list had closed at the end of June, and the capital of £3,000 not being fully subscribed, this meeting was called to determine whether the company should begin operations on the shares taken up. ■ There were present Messrs C. F, Barker (in the chair), Taplin, W. Coworn, Sheild, J. Gibson, Chapman, J. Burke, A. Palmer, Ball, Sherwood, J. Riseley, Drake, Shnw, M’Kae, C. Sy tries, Eyton, W. Balmforth, Honeyfield Houghton, J. Williamson’ Milroy, R. Horner, Norman, and E. C. Horner. Chairman : This meeting is called to determine whether the company shall be floated on the capital already subscribed; or whether more time shall be allowed for shares to be taken up. I should he exsorry if a local industry of such aC value and importance to this district fail for want of support among who would be most benefited by it- » There are several alternatives open to you. The shares unapplied for could be allotted to present shareholders pro rata, without requiring the additional money to be paid up. Or we could float the company and leave these unallotted shares open for future applicants. By adopting the latter course, the value of shares would be depreciated by the fact of some shares not being taken up. Another course would be to leave the matter open another .month, and we could endeavor to get the remaining shares taken up. Mr Riseley : Would there be sufficient money now to work the thing? Mr Cowern (secretary pro teni.) : We should have £1,755 paid up, and could borrow on that if required to make up the £3OOO. It seems a great pity indeed that this thing should languish for want of a few shares, when we have two years in which to pay up the calls. If the company be floated at once, the seed could be distributed and there would be a good harvest to begin the first year. Chairman : If postponed a month, we should have more difficulty in getting seed pnt in, as some farmers who have promised to grow a crop this season would not careto wait unless there was a certainty of the company being formed, to guarantee a local market.

Mr Taplin : Could the machinery begot ready for the first crop ?

Chairman : It would be advisable for the company to buy all they could get in the first year, but it is questionable, whether it would not be best to store it and crush the seed in the second year. That would not prevent the company from dealing with the other half of the crop—that is the straw.

Mr Cowern : Look at the importance of this industry to the town and district. Suppose only a thousand acres were cropped with linseed—and the machinery we contemplate would be equal to two thousand acres—the result would be, at shown in the prospectus and in Mr Davis’s practical papers on the subject, that about £13,000 would be returned into the hands of the growers, after paying for labor. That amount of money coming into the district as profit, and circulating through many hands, would be a great benefit to all concerned.

Mr Shaw : What is to be done with the fibre ?

Chairman : It is optional for the growers to sell it to the company or use it as they please. There is one point that should be made clear, and Mr Houghton has just called my attention to it : that is that you can use both the seed and the fibre from the same crop. Many persons doubf whether that can be done, for it is said if you grow (he seed, the fibre is useless ; or if you grow for the fibre yon cannot have the seed. I cannot go nearer home to exemplify this fact than the crop grown by Mr Fninveather, who took about 30 bushels to the acre off his seed. I took a sample of the straw to Christchurch and was offered £2 a ton for it to make into string for reapers and binders. Mr Shield : That is merely the rough straw.

Chairman : Yes. A man came into my office the other day, and seeing a sample of the fibre said: “I will undertake to make you a linen shirt out of that fibre.” Mr Fairweather told me that crop paid him as well as anything he had ; yet he lost half his crop by throAving away the straw, and he spent a good deal for pulling it, instead of cutting it, as might be done.

Mr Sli' ild : What is the chaff worth ? ( hj innan ; Yo, the chaff lias a value also. Mr Sin ild ; It is grand feed for horses, the best in the world. Chairman : The share list shows 351 shares taken up, and 249 are wanted to make up the 600 shares required for a capital of £3,000. Mr Taplin : That is a fair amount to commence with. Very fgw companies start with more than half the shares taken up. Mr Sherwood ; With the object of giving the matter some ventilation, I move “ That within 21 days from June 30:h (fourteen days from date) the unallotted shares be distributed among the shareholders pro rata.” T think what you have already done is a sufficient guarantee to encourage the company to go on, and and consider itself duly floated. If you take another fortnight, and all of you throw some heart.into the matter, there will be no necessity to distribute these shares. It is admitted on all hands that the flax industry will pay ; and as to water, analysis taken along this .coast has shown that we have some of the best water in the world.

Mr Riseley : The district has hardly been sufficiently canvassed. If a good canvasser were employed for a fortnight, more shares would be taken up. I know several parties who have promised to take shares.

Mr Taplin seconded the motion, and said : If we wish to get these shares taken* up in the fortnight, each shareholder should take on himself a personal responsibility to canvass his neighbor, and a thorough canvass should be made about (he town, in addition to what has been done. If this were done, I believe all the the shares would be taken up. Mr Sheild : There are enough of us here to take the shares among us. A thing like this is best in few hands. We all see what a benefit it would be to grow this linseed : why can’t we take up the remaining shares ? I grew a most wonderful good crop without any care whatever Now to make this thing go, I will make my shares up to 100, If any farmer sees a tiling sticking out that will pay him he will put the seed in the ground.

Mr Cowern : In a Horae commercial paper flic other clay I read that one. parcel of flax straw, 560 tons, discolored and not up to the mark, had realised only B£d a pound on the average. Fancy 560 tons at that price, when we have seen that flax hero will yield two tons to the acre, and each ton will realise five hundredweight of fibre. That at sixpence a pound would turn in £28,000 to this mill, suppose you worked the machinery at the rate of half the year only. That loaves the oil out of the question. Mr Sheild ; Well, now, cannot we do it in the room ? I.will make mine lOOjshares (75 before.)

Mr.Ball took 4 more shares, Mr Chapman took 10 more. Mr J. Bourke 5 more. Mr Shaw 5 shares. Mr Houghton 5 shares. Mr Milroy 5 more. Mr Symes 5 more, Mr Drake 5 more, Mr Sherwood 5 more. Mr M’Hae 5 shares.

Mr Chapman 10 more,

Mr Balmforth : How is it to be threshed and dressed ? Many a man will not putin seed unless he knows there will be a machine to dress it on the spot. They are offenng a premium in Canterbury for a machine to do that. Is there any machine in existence that will do it ?

Chairman : Yes, an American machine. Mr Balmforth : Then wli3 r do they offer a premium ? Chairman : I suppose they want to improve on the American machine. Mr Horner : I am - quite satisfied that with the present appliances, if you pull the seed, I could thresh it without any loss. You don’t let it go through or you will break the straw.

Mr Gibson : One thing that has kept townspeople back was that the settlers were not taking the thing up with spirit, and the company would have to import from outside the district to keep machinery going. If the figures in the Canterbury papers are correct as to the profitableness of the crop, there should bo a great demand for shares, and land should be worth more than it is. It is essentially a country settlers’ question. As to the town, more labor would be employed, and tradesmen would benefit in that way. The fact of more money being turned over regularly and with certainty would enhance the the value of properties in town and country. I consider we should refer the matter

once* more to the public ; but with the sympathy that lias boon expressed in the room, and tlie small amount of shares loft for the outside public, they should be more than subscribed by nest meeting. If any shares are not taken up, the fact puts down the value of those subscribed. Any balance not taken up by next meeting should be made a present of to Mr Slieild for his plucky action in coming forward as he has done. (“ Hear ” and laughter). Mr Sherwood ; There is a feeling among the townspeople that the settlers would require a guarantee, from the company before putting in the seed. (Hear, hear.) That impression is injurious. I went to one man close to this place who would have taken 50 shares, but ho said the settlers want a guarantee.

Mr Horner: What guarantee do they want ? '

Mr Sherwood : Some guarantee of a certain price for the crop. I think the best guarantee is to see the plant on the ground. Mr Palmer : It would be a good thing to give a guarantee of a certain price, especially for bush settlers ; for if they have a guarantee of say 6s a bushel, it would induce them to grow the seed. Mr Gibson : I think it might safely go out to the public that the company will be able to guarantee 6s a bushel. And the guarantee which the company wants is that there shall be sufficient grown to keep the mill going.

Chairman ; There are two or three companies in the colony floated for this purpose, and it is merely a question of landing the stuff to get the ruling price for it. Therefore growers here will not need a guarantee when there is an open market. With a local company we should have the crop at our own door, Mr Balmforth : In Canterbury the farmers say if they can get a guarantee that a company will take the stuff off their hands, they will put a few acres in crop.

Mr Horner r Having got two or three companies formed in the colony, you have a guarantee that you will get the market price. It is not a monopoly for one company.

Chairman : The straw is the most bulky and 'most expensive to move, and it is the working up of the straw into fibre that we shall have to do.

Mr Cowern : There should be a clear understanding about these additional shares guaranteed by Mr Sheild and others on condition that the whole be taken up.

Chairman : Will you allow time for the balance to be taken up before withdrawing your offer? Mr Sheild : I will talk to you after the fourteen days. I may take them up then, but I won’t say at present.

Others agreed to let their additional shares remain to see how the remainder are taken np. The motion for keeping the share list open fourteen days more, and then dividing remaining shares pro rata (if necessary)) was put to the vote an.d adopted unanimously. Chairman suggested a series of meetings at different centres in the district, to make the subject thoroughly known and get all the shares taken up. He and Mr Cowern promised to give time and attend the meetings.

Agreed that meetings of shareholders and others be held at Waverley, Manutahi, Kakaramea, and Woodville during the next fortnight. This closed the business.