PATEA SAWMILLS.

Patea Mail, Volume VIII, Issue 1051, 25 June 1883, Page 2

PATEA SAWMILLS.

A number of gentlemen interested in the re-opening of the Patea Saw Mills met on the mill premises on Saturday afternoon, when, after the machinery and appliances had been inspected, a meeting was held in the Borough Council offices to consider the advisability of forming a company in connection with the industry. There were present Messrs Cowern, Tennent, Paul, Neilson, Hamerton, Davis, Williams, Pettit, Baldwin, Clarke, Carman, Chadwick, Deane, Whitcome, and Boagey. Mr Gibson was voted to the chair, and said that the meeting had been called to see if the sawmill could be started again. There would probably be an opening for turning, as worked timber got knocked about in transport, and no doubt the local carpenters would prefer getting their timber in the place. It was said that when the railway was opened they could not compete, with Pending, but he did not think that. Mr Cowern stated he had taken an active interest in the matter. It appeared that a valuable industry could be started with a very small outlay. It would be a benefit as far as the town was concerned. (The offer was then read, the substance, of which is—The value of the land, building and machinery including engine, is £2OOO, which is offered at £1260. It is proposed to form a compan} 7 with a capital of £2OOO, in 400 shares of £5 'each, and to call up only £2 at present, probably no more, and, when times improve a little, either sell out the mill as a going concern, by which it is calculated the company will make £750 clear profit, or lease it, and secure thereby a substantial safe yearly dividend.) They would see by the offer that ho only proposed to call £2 at at present and with this he considered the company should be started in fijllworking order. They could get a good manager, and when the mill was working with anything like a good state of affairs they could sell it at its proper value of £2OOO if a purchaser came along. He thought it monstrous that a community like theirs could not start an affair like this. He thought they would agree with him that in a reasonable time—say six months—it could be sold with'a profit. Even if they did not sell the mill they might lease it. He had a resolution written out for any one present to move if they agreed with it. •The Chairman : The matter is now before you, and any discussion is invited. Mr Cowern : I may state that Mr Tennent is willing to take 40 shares. Mr Tennent said they were aware that through his' holding the position of a banker, he’ was not allowed to engage in any sort of trade, and so he could not start the mill. It would not do to allow a property like this to remain- idle till Wanganui stepped in and took the trade. He had always taken a great interest in the matter, and he might take more shares than what Mr Cowern had stated. He quite agreed with Mr Cowern that the mill could be leased out. It appeared to him to be a great pity if the matterlapsed. In Hawera and New Plymouth companies had taken over the raids from private individuals. He thought the mill was being offered to them on better terms than any of the others. It was simply proposed that they should take what shares they thought fit, and a week’s canvass

would be allowed. If the shaies were not taken up then he should take what steps he thought-necessary with regard to the mill.

Mr Hamerton thought a week’s canvass was too little. He thought if they allowed a longer time, millers elsewhere,would take a large number of shares. He also thought £3OO was not enough to start the mill. If they had a larger capital to work on it might be belter. The Chairman : Is not the amount that is available £750. Mr Cowern : With the subscription of £2 per share they could have £3OO, and ho thought if they had a good manager that would be enough. ■ Mr Paul thought the mill would pay, but still he thought £3OO was too little. Mr Tennent was quite willing that the time for canvassing should be extended to a fortnight, and that a circular be sent to Messrs Southey and Willey and other millers., The reason he had not done this before was because he thought those gentlemen were interested in Wanganui mills.

The Chairman thought the view Mr Tennent took of the millowners being only interested in Wanganui mills was rather narrow. Their object was to get rid of their timber. He thought there was more timber than outlets for it at present. Mr Pettit supposed that whoever supplied Mr Dale with timber would ; also supply a company. The Chairman thought that when the railway to Hawera was opened they should get plenty of timber. Mr 'Williams said lie believed in selfhelp. There was no doubt that the place required some effort, and that this was a step in the right direction, though a short one. He thought something should bo done to open up the river and get timber down it. Ho thought they would be doing themselves a great injustice if they were to benefit the Manawatu by getting timber from there. He thought they should open up the river (hear, hear.) If they were to get timber from the Manawatu or Mountain road they would be taking off a great deal of their profits. The Chairman : Who owns the land on which the timber up the river is ?,

Mr Williams : The natives own some and the Government some, Mr Hamerton thought that in order to meet Mr Williams, power should be given to increase the capital to £SOOO. Mr Pettit .said that he knew of hundreds of men who would be glad to bring timber down the river for a small consideration. Mr Tennent said he had been up the river about 30 miles but had not seen any good timber. Mr Williams : The place I mean is at the junction of the Mangaehu and Palea rivers where there is plenty of splendid timber—red and white pine. There is also totara although I have not seen any. In reply to Mr Tennent Mr Williams said the logs could be floated down the river from where the timber was. Mr Cowern thought what Mr Williams had mentioned most important. Mr Paul proposed, and Mr Boagey seconded, lt Tlia/t a company be formed "with a capital of £2OOO in 400 shares of £5 each to be called the Patea Steam Sawmill Coy, Limited, to be incorporated under the “ Joint Stock Companies Act,” and that a share list be opened at once and close on July 14th, and in the event of the whole number not being subscribed the undertaking lapse.” Mr Boagey said that after, hearing Mr Williams’ remarks he felt more confident as to success. Mr Hamerton said he would suggest the option of raising the capital. The Chairman did not quite agree with Mr Hamerton. He thought the position with regard to increasing the capital was that it kept the value of the shares down. Therefore he would prefer to see it as it was there, The district simply seemed to warrant the starting of the affair and keeping it quietly going, Mr Williams believed that if there were half-a-dozen mills here they would all pay. Mr Gibson said that if the timber were got anyway reasonable it would pay to send mouldings to Wellington and Nelson, Resolution carried. Proposed by Mr Gibson “ That the bank of New Zealand be bankers, joro tom," Seconded by Mr Tennent and carried. Proposed by Mr Williams, and seconded by Mr Pettit, “ That the following Gentlemen be a provisional Directory to do all things necessary to inaugurate the Company, and canvass for shares—Messrs, Tennent, Paul, Milroy, Neilson, Derritt, Haywood, Hamerton, Davis, Williams, Pettit, Wray, Baldwin, Clarke, Carmen, Chadwick, Deane, Boagey, Whitcorabe, Gibson, and Christie, and that seven form a quorum.” Carried. Proposed by Mr Hamerton, “ That Mr Cowern be Secretary and Treasurer pro tern.” Seconded by Mr Gibson and carried. Proposed by Mr Williams, “That Mr Hamerton be Solicitor protem. Seconded by Mr Tennent and carried. Nearly 100 shares were taken up in the room, and the meeting adjourned till 4 p.m. next Saturday, at Mr Cowern’s office.