POVERTY BAY PETROLEUM AND KEROSENE COMPANY (LIMITED.)

Poverty Bay Standard, Volume II, Issue 114, 17 December 1873, Page 2

POVERTY BAY PETROLEUM AND KEROSENE COMPANY (LIMITED.)

Tub half-yearly meeting of the shareholders of the above Company was held at the Court House, Gisborne, on Saturday evening. There was a large attendance of shareholders, and Mr. Graham, Chairman of Directors, occupied the Chair. The Chairman read the advertisement convening the meeting, and stated what had been done towards furthering the interests of the Company. The lease of the ground had been completed, and the promoters were to receive 1,000 paid up shares. He (the Chairman) believed that some dissatisfaction existed amongst the shareholders respecting the royalty to be paid to the promoters, but he had received a letter from Messrs. Cooper and Ross on the subject. He did not think that their terms were exorbitant, as the royalty in America was from one third to one half. The machinery had arrived in the colony, and might be shortly expected here; the cost of which, including freight to Wellington and agency charges was £277 7s 6d. They had not received the amount of support from the outside public they had expected, who, doubtless, were waiting to see the result of the Company’s operations. They had sent to America for an experienced manager, who was expected daily, and had guaranteed him £5OO for one year’s salary, commencing from the time he arrived at Gisborne. They could not get too good a man, as on the manager’s ability the success of the Company depended. The Chairman thus continued :—

“ Although few shares have been taken up outside of the district however, the number applied for here proves that the Poverty Bay people, who are in the best position to judge, are very sanguine of the success of the Company. “The Government as you areaware have, on our application, advertized a bonus of 6d per gallon up to 50,000, equivalent to £1,250, which if oil is struck we are pretty certain of getting. A grant in aid even if the amount were smaller would be of much more assistance to the Company, and it is proposed to petition the Government to this effect.

“ We have also been led to believe that the Government would’assist in the making of roads and tramways. These of course we do not think of commencing until oil is struck. From enquiries made, however, we may state that a tramway is considered the cheapest and best method of transit to and from the Springs, being of a reproductive nature.

“ The plans of the boring machinery have been submitted to a competent person who is preparing a specification of the timber required for the derricks, &c. When this is furnished we intend having the timber sawn at once, to be ready as soon as the Manager and machinery arrive. We do not propose doing anything further in the way of work of that description until the Manager’s arrival.

“It would only be fair to the present, shareholders, more especially if calls up to £2 10s are allowed, that they should receive some advantage over those who are waiting to see the result of the boring before taking shares. For this purpose it is proposed to reserve a certain number of shares, say 4,000, as preferential shares. When oil is struck the sale of shares would immediately be stopped. The preferential shares would then be allotted pro rata to the then shareholders at the paid up price. Any outsider then wishing to buy would have to pay the market value of the shares whatever that might be. It might by £2O, or £5O, or £lOO. In addition to the preferential shares, the company would reserve a number of shares for the benefit ofthe company to be sold as might be required. “ The number of shares sold up to the present time is 1,191, and of these only ' 150 have been applied for outside of the district.” The Chairman then read the following letter from Messrs. Cooper and Ross, the promoters : — “To the Chairman of the Poverty Bay Petroleum and Kerosene Company (Limited.) — Sir, having heard that speculators in other places consider the royalty too high, we are prepared to forgo the whole of the royalty until the company pays 20 per cent, dividend. “ Cooper and Ross, Promoters.” The Chairman said the next business would be the election of two directors in place of Messrs. Stewart and Stubbs, the former gentleman having left the place, and Mr. Stubbs having accepted the Secretaryship, vice Mr. Hardy, resigned. They would also be asked to pass a special resolution, empowering the Directors to call up to the amount of £2 10s per share. As at present the call was limited to £l, which would be insufficient to carry on the operations of the Company. The receipts amounted to £404 10s, and the expenditure to £214 0s lOd, leaving a balance of £l9O 9s 2d, which would not, when the other 10s per share had been called up, meet current expenses. Mr. Cooper proposed, and Mr. Dick seconded, that Mr. Teat be appointed one of the Directors. Carried.

Mr. Hardy proposed, and Dr. Nesbitt seconded, that Mr. Tucker be appointed Director, which was carried unanimously. A long discussion ensued on the question of giving the Directors power to extend the calls to £2 10s of t.he capital, and ultimately— Mr. Villers proposed, that the Directors be empowered to make calls up to £2 10s, such calls not to e-’ eed 5s per share per month. A Mr. vy >rdy proposed as an amendment, that the calls do remain in their present position. The Chairman put the amendment, which was negatived, and the original motion was then put and carried. In answer to a question, the Chairman said the Directors were bound to pay the manager the £5OO for his salary, whether he worked or not.

A long discussion ensued on the question of preferential shares, and Mr. Tucker proposed, and Mr. Cooper seconded, that the sale of shares cease on reaching 4,000, or at the discretion of the Directors, the balance—reserving 1,000 shares for the benefit of the Company—to be divided among shareholders pro rata on purchased shares at paid up value. Carried nem. con.

Mr. Winter proposed, and Mr. Hall seconded, that Mr. Harris be appointed Auditor, in conjunction with another to be appointed by the Directors. Carried.

Mr. Cuff proposed, and Mr. Winter seconded, that in future all special resolutions shall be in accordance with the Joint Stock Company's Act 1869 which was carried.

A vote of thanks to the Chairman terminated the proceedings.