Oil and Fibre Industry.

Patea Mail, 31 July 1882, Page 3

Oil and Fibre Industry.

PATEA COMPANY FLOATED. JTIt was definitely resolved, at a meeting of shareholders held on Saturday, to register and start the Patea Oil and Fibre Company limited. More than twoJhirds of the required capital is guaranteed ; the remainder can be borrowed if required, though probably the balance of shares will be taken up before all the money is actually needed ; and settlers who have not yet joined the company will regard it with more confidence, now that it is no longeramero project, but a substantial fact. The meeting was held in the afternoon, at the secretary’s office. Mr Barker presided, and there were also present Messrs E. Horner, Sheild, Shaw, Honeyfield, Milroy, Palmer, Ball, C. Symes, Gower, Houghton, and Barton (solicitor to company). Mr Cowern was absent at Wanganui. - A resolution had heed adopted at the prievous large meeting that the share list should remain open to a certain date, and that any shares then remaining should be allotted to members pro rata. This division of shares, however, was not now made, it being deemed preferable to leave r ’ them open for application during a short period, as several settlers were known to be favorable to, taking shares if the company commenced operations. Chairman explained that the meetings called at places in the district had not' been found convenient for settlers attending, although two fresh applications for shares 'had been received. Tt was for shareholders at the present meeting to determine whether the company should be floated on the shares applied for up to date. He said .* 415 shares are actually guaranteed, amounting to £2,075. 1 know that some other shares are intended to be taken np, the ugh I cannot mention names positively until the applications are made. Mr Caverhill is said to be satisfied of the success of growing linseed, and I hear he intends putting 100 acres in crop. I have heard farmers in every part of the district, from Waitotara to Manaia, say they will put in some seed if the company is started, so that they, may be. sure of a local market; Mr Ly saght Intends trying linseed, and is also disposed to take shares in the company., It is hinted that, if this company is not started, the project will be' taken up in a neighboring town. It would be a pity,, with the prospects we have," to let the" thing'"pass "but of'oar hands for want of a few inore.shares being taken up. I am satisfied we have got ample capital:guaranteed. Mr Barton explained that the remaining shares could be legally allotted to the promoters or any of' them ■ for services rendered. , , ' Mr Sheild : We should have to call up the full amount of the shares to make up the money required. Chairman : That operation is to be spread over two years, as stated in the prospectus. Mr Sheild : But will the money be sufficient in the mean time ? Chairman : I know we shall have no difficulty in borrowing from our banker; on the guarantee that a certain capital is to be paid up within a certain time. That is the usual way in starting a company. Mr Ball : Wiil you require a steam engine ? Chairman : Whether we work the machinery by steam or by water power will depend on the { nature of the site, we secure for - the factory. We are perfectly untraraelled as to site. I suppose one of the first acts' of the : permanent directory will be to invite tenders or offers of suit-: able sites, with water supply and other . conveniences. Sheild : What strength is required this machinery ? Chairman,; Six-horse power. What we have to do now is to float the company, and,.when • farmers know that is done, they will have a sort of guarantee for putting in a crop of linseed this season. Mr Horner ; Yes, that should be. done at once, because now is the time to prepare for the seed. , . Chairman : The sooner it is put in on this coast the better, because you get it out of the. way before the other crops come on. Mr Horner : Yes, or it might be put in a little later, to come after the other crops. It will take no harm. Mr Sheild : Last year I put; it in the same time as oats, and it came on about the same time. Mr Horner : Give it time to branch, for the more it branches the more seed you will get. - Chairman : The question now is, what shall- bo done with the unallotted shares ?

Mr Palmer : If you allot those shares now, you cannot increase the capital already promised, whereas by leaving them unallotted youmay bring in more shareholders ahd more'capital.

Chairman ; From names mentioned to me, we may reckon on 425 shares as guaranteed, equal to £2,125.

Mr Sheild : Could we not float the company, and leave the other shares open for six months ?

Mr Milroy : It would be wrong to limit the time, because if a man knows he can get shares at ; the same price six months hence, he would not be likely to take them up now. In floating the Town Hall Company, we had some shares open, and we borrowed on the capital subscribed. The company can close the share list at any time, and might add 5 per cent, premium after say six months. Mr Horner: Many who might lake shares hold back because they fear you cannot get enough stuff grown to keep the mill going. Chairman : I am sure a great deal of seed will be put in. Mr Horner moved “ That the Patea Oil and Fibre Manufacturing Company limited be registered upon the shares already subscribed for, and that the share list remain open. Mr Sheild seconded.

Chairman : That leaves it to the directors to close the share-list whenever they think it desirable.

Mr Milroy ; How many shares are actually paid for ? \ Chairman : Among those applied for, about 220 are actually paid for (first instalment.) Mr Barton : All that is : necessary for registration is that at least seven members of the company shall have taken up at least one share each. They would be the persons to sign the memorandum of association: for the legal registration of the company.

Mr Milroy: I should like to see the other shares that are applied for guaranteed by deposit. Chairman : It will be the Secretary’s duty to apply for the deposit after the shares iafe formally allotted" to the applicants.

Motion to register the company was put and.carried unanimously.

Mr Barton : The registrar will issue a certificate of registration, ; and those who are registered as the company will have power to allot to the shares applied for, but not till then. : : Mr Sheild proposed ,£ That tile Secretary be authorised to instruct the solicitor of the company to prepare a memorandum and articles of association, and take all necessary steps to register the company.” Mr Symes seconded, and the., motion was carried. Mr Sheild mentioned two settlers at Waitotara who intend to take shares ; and it was agreed that all should try to get the remaining shares taken up. -:

Mr Barton said those shareholders who sign the memorandum of association wil be provisional directors until permanent directors can he appointed at a'general meeting.

Agreed, on the motion of Mr Palmer, that a meeting of provisional directors be held next Saturday, to sign the memorandum and articles of association. Mr Sheild : How much seed is there in the district ? Persons should be sending in their orders.

Chairman : I am writing South about seed, and I have some in stock. A bag holds about 224. pounds. Mr Symes : I know Mr Fairweather put in about half a bushel to the acre, and it was thick enough. Mr Horner: Half a bushel of good seed to the acre is a maximum quantity.

Motion carried. Mr Sheild : I put in a bushel to the acre, and bad a remarkably good crop. Chairman ; It depends upon the state of the land. If rolled hard, half a bushel will do as well as a,bushel. The meeting terminated. •