Poverty Bay Standard. PUBLISHED EVERY WEDNESDAY & SATURDAY. SATURDAY, APRIL 9, 1881.

Poverty Bay Standard, Volume IX, Issue 933, 9 April 1881, Page 3

Poverty Bay Standard.

PUBLISHED EVERY WEDNESDAY & SATURDAY. SATURDAY, APRIL 9, 1881.

We shall sell to no man Justice or Right; We shall deny to no man Justice or Riyht; We shall defer to no man Justice or Right.

A large and influential meeting of shareholders of the South Pacific Petroleum Company was held in the long room of the Masonic Hotel on Wednesday evening last, for the purpose of considering the terms of a circular forwarded privately to the shareholders by the last mail. We regret to say that the subject matter for consideration was but a continuation of the old sore—dissatisfaction of the conduct of the Directors. So far it has been the wish of the shareholders to hedge round their expressions of disapprobation, with a kind of protective leniency with regard to the past, in the hope that amendment in future would, in a measure, make sufficient atonement; and thus save a lear s mal-administration from becoming a public scandal. But we are >ound to admit that the meeting has adopted wise course, forced upon it under the circumstances, of emphatically denouncing this last attempt to jeopardise local interests, and in such a wav as precludes any possibility of the Aew Zealand shareholders trom

participating in the discussion, and exercising their votes, The following is the principal resolution passed on Wednesday evening:—

That this meeting views with indignation the conduct of the Directors of the South Pacific Petroleum Company, in their apparent determination to ignore the New Zealand shareholders, and to shut them out from all participation in the management of the Company, as is evidenced by the step they have taken in calling a meeting of the shareholders to be held in Sydney on a day which particularly precludes the New Zealand shareholders from giving effect to their votes ; and that the Chairman of this meeting be requested to forward to the Chairman of Directors a telegram embodying the above, and requesting that the extraordinary meeting called for the 20th inst., be adjourned for one month, to enable New Zealand shareholders to exercise their votes.

The foregoing was the result of along and temperate deliberation on the proposal of the Directors to mortgage the assets of the Company ; for fixing the day of meeting too early to be of any use to us ; and for not sending proxy papers, or even inviting an expression of opinion from this side. The idea now is that the Committee, which was appointed by and at the meeting should draw up a report, setting forth our ultimatum, and to be sent to an adjourned meeting of the Company, either through some deputy in Sydney or in charge of an elected delegate from Poverty Bay. As several speakers remarked with some warmth and force, the time has arrived when further deference should cease, and when it must be absolutely demanded that we shall have a more direct voice in the Company’s management. And it is for the Committee to so arrange their statement of facts and grievances that the Directors will be informed, by no uncertain sound, that, henceforth the position will be reviewed ; and a serious consideration will be given towards asserting our power, and getting the Directorate removed to Gisborne.

It may be possible that the only way out of the difficulty in which the Directors have placed themselves, is by hypothecating the shareholders’ assets. But can it be tolerated that the New Zealand branch is to have no voice in the matter, whilst bound by the action taken in Sydney ? And the naked, unexplained suggestion,' comes with a redoubled force of objectionableness in view of the fact that although the first year of the Company’s existence expired in February last, no accounts have been received here, and no statement of its affairs made known. We are not even permitted to know what the financial position is. We do not know if any, and what necessity exists for raising the wind in this way. What the receipts and expenditure have been ; nor what calls are overdue. But whatever the necessity, the implied insolvency of the Company is a most damaging reflection on the management. It cannot reflect much credit on a Company whose whole career has been one of bungle, and official and professional ignorance, to be obliged to go thus early into the money market for temporary relief, while some thousands of its unallotted shares are going a-begging at sixpence a piece. Besides what has the Company got to mortgage ? We make bold to say that if capitalists in Sydney are induced to lend money on the assumed assets the South Pacific Petroleum Company is said to be possessed of, it will be on the most wilful misrepresentation of the Directors. We use the word “ wilful ” advisedly ; for, although they may not criminally intend to practice deception, a non-discovery of the true facts of the case, will display such a wilful ignorance as to call for the harshest condemnation. And we state further that no one acquainted with the real position of affairs, would think of accepting any of the property as a security. We incline to the opinion, however, that as some of the Directors have, according to their own statement, advanced money to carry on the works with, it is to themselves that the mortgage is required to be made. But they have carefully, if not artfully, concealed the right bower card with which to euchre the New Zealanders. We grant that they are entitled to security ; but we warn them that if they give an ex parte effect to so suspicious a transaction, it will prove the proverbial last straw which can be weighted on the patience of local shareholders. It has been thought for some time past —their assurance to the contrary notwithstanding—that the Directors are playing a one-sided game—a lone-hand in fact; and the belief will receive strong confirmation if they, through the covenants of a mortgage deed, have the additional power of demanding

their money, or taking recourse. For our part the last vestige of confidence in the Directors is gone. The garment of their managerial reputation is reduced to shreds and patches. We believe the sending of the new “ practical tube-driver ” is a mere sham, a miserable pretence to throw dust in the eyes, and to silence the complaints of shareholders, as we were assured when he arrived that the new tubes would be sent by the first boat from Melbourne, though, since then two boats have arrived thence, and the tubes are not forthcoming. D