Poverty Bay Standard. Published Every Wednesday & Saturday WEDNESDAY, FEBRUARY 9, 1881.

Poverty Bay Standard, Volume IX, Issue 916, 9 February 1881, Page 3

Poverty Bay Standard.

Published Every Wednesday & Saturday WEDNESDAY, FEBRUARY 9, 1881.

We shall sell to no man Justice or Right i “ We shall deny to no man Justice or Right; me shall defer to no man Justice or Right.”

In drawing attention once more to the way in which Gisborne and other New Zealand shareholders in the South Pacific. Petroleum Company are being treated by the Sydney Directors, we shall make the importance of the question our explanation, or apology, for thus allowing it to take up so much of our time and space. “ Petroleum’s ” letter, in our last issue treats of the matter in a plain and straightforward manner. A short time since Mr. C. D. Berry, the newly appointed Auditor, and local Registrar of the above-named Company, announced, in the local papers that a Registry Office had been opened in Gisborne, for the transfer of shares. Mr. Berry, doubtless, is acting under duly authenticated instructions from the Directory; and, assuming such to be the case, we acquit that gentleman of any desire to mislead the shareholders and the public; but it is a patent fact that, not only in this matter, but in most others connected with the Pacific Company, the proceedings are, to use “ Petroleum’s ” words, “ a delusion and a snare.” We have carefully looked into the subject matter of “ Petroleum’s ” letter, and are prepared to endorse the correctness of his assertions as against the correctness of the Directors’ attempt to hoodwink the New Zealanders. It may be all very well for them to throw sops to Cerberus, but this last one sent across the wa.ter for us to swallow, is a jittle too much of a good thing. As a matter of fact Mr. Beery is not in a position to either register or transfer the Company’s shares. All that he is empowered to do is to receive applications for transfers, and the old scrip, both of which are to be forwarded to Sydney, when, all other things being en regie, new scrip will be issued. For this purpose certain forms have been sent here, which, w hen the necessary particulars are supplied, they will form a kind of list, or record of transfers that will not be actually so transferred until they reach the head office, and cannot be of any marketable use, for negotiation, until the new scrip is issued—this latter being the consequence of the transfer, or registration, and which alone can make it complete. Therefore, it is stretching facts too much to say that Mr. Berry is a Registration Officer, or that shares can be transferred here, when he is not empowered to do the most necessary act that makes a transfer valuable.

But it may be held that even this much is.a boon, and will facilitate transfers on arrival in Sydney. This may be so. It may be possible that a local officer, even with limited powers may be able to give information to such of the general run of shareholders, as are not experienced in these matters; but we like to call things by their proper names; Mr. Beery cannot complete the act of transfer, or of registration, therefore it is a “ delusion and a snare ” to say that he is, and in support of this, the fact of no Registry Book being sent to Mr. Beery in which the records of transfers are made, is abundant proof. Transfers cannot be effected on loose forms, the Bth Article of Association requiring them to be made “ in the register book."

Again, the company’s Articles of Association give no power to the Directors to levy fees for transfers. This feature was expressly eliminated from the Deed before it became law. The Directors, therefore, cannot usurp a power that belongs to the body of shareholders; or, if they have done so, it is ultra vires, and of none effect, As transfer fees money cannot be legally charged for this work ; and we advise shareholders to satisfy themselves on

the point before they pay them. All that is leviable by the Directors, is the stamp duty, (imposed by an Act of Parliament of the Legislature of N.S.W. passed since the registration of the Company) at the rate of sixpence for every £lO worth of shares sold and transferred, in Sydney. No duty stamps are leviable for transfers of the company’s shares effected in this Colony, beyond the usual penny receipt stamp; and when we consider the cost of postage, and the loss of time occurring m transmission ; we are furnished with an unanswerable argument in favor of the Registration Officer here being able to issue new scrip, to make the transfer complete, and so save the shareholders’ time and money. Our contention, therefore, is that the company cannot legally charge transfer fees, nor can it legally refuse to register shares without fee. There is, however, this much to be said, that if transferrors or transferrees like to pay a moderate fee for services rendered, there can be no objection to its being done, so long as Mr. Beery remains a receiver only; but we still maintain that no fees whatever, beyond the stamp duty, are recoverable by law, and that it is the duty of the company to provide such machinery as is absolutely necessary for the economic and speedy transaction of business. As it is, it is not so. Under the proposed system, it will take a month, or more before a transferee can obtain his scrip, Mr. Berry’s instructions being to forward the forms every fortnight, and on the distinct understanding that no new scrip will be issued until the old one is returned to the head office. The effect of this will be, virtually to put a clog on all negotiations of a speedy or practical character. If, as we hope, it soon may be the case, shares are required to change hands pretty often, at any rate daily, what earthly use will a Registration Office be 1300 miles away ? or, to a man who wants his scrip, if he finds that he must wait till it comes from Sydney ? The one might be in London, and the other have to come from the moon for‘all the practical utility or benefit either would be to him.

It is spoken of as likely that there will be a meeting of shareholders of the company, shortly held in Gisborne, when we hope to see this sort of thing put an end to; and such resolutions passed as will let our friends over the water understand that more consideration must be made for New Zealand interests, or, failing which, the house will be divided against itself, which we do not wish to see.