Southern Cross Petroleum Company Meeting.

Poverty Bay Standard, Volume IX, Issue 970, 17 August 1881, Page 2

Southern Cross Petroleum Company Meeting.

At a meeting held on Saturday evening last, jn the Masonic Hotel, there WM a f»ir Rttegd»nce of/Jh»reholders. Mr. Tucker occupied tl le chair, and made a few remarks on the subject mattei| to Mr. A Haase, the Manager, read |a statement for the past half-year shewing the whole of the monies received amounting ip £1,305 ids'- 1 had been expended in providing for plant, machinery, labor, &c. Mr. W. Clarke then read the following report: —

To thb Shareholders oe the Southern ■ Cross Petroleum Co., [Limited]. '■

Ladies apd Gentlemen, —At this, the first meeting of our Company, it is necessary for me to ,relate the proceedings and transactions up to this date, although all matters have been so pr«?minejitly open to the shareholders, and so faithfully reported by the local Press, that it would almost seem needless except as a record. The Cempany was registered under the Mining Companies Act, on the 2nd April, but the memorial was published on the 16th February, from which time the Company was under the Act. The contract for the works was signed on the 26th March, by Messrs. Campbell and Parsons for the labor only, for the erection of houses, derrick, engine-house and machinery, for hauling ail goods from the port to the site of operations and cutting and hauling firewood, and for boring to payable oil, or to the depth of 1000 feet—the cost of the whole to be about £1,700.

An delay occurred m the arrival of the machinery, which had been remitted for by telegram in January, and caused us a loss for demurrage of upwards of £lOO. , Th A whole of the plant is now on the ground with £he. exception of a few: trifling articles and the 6-inch tubes which arrived ijj Melbourne by the s.s. Huntingdon on the 13|h of last month, and were detained In Melbourne to be cut into short lengths coupled with steel rings. Tliey will most likely be in the steamer to arrive tO-inorrow. It is reasonable, thereto hope that boring will have commenced within fourteen days from this date. . - A short timfe since it was! discovered that paraffin mineral was to be found on the Company’s property, and by the consent-of~ the directors, I left for Melbourne to place the balance of the shares, Viz., 15,000, and to! aB ‘ certain all particulars relative to the mineral wax. It appears that there is a ready sale for theicrude paraffin mineral cleansed free from earth at about £3O per ton, while the manuiaiiturikl bleached paraffin 'is worth £BO, the market being practically unlimited. Upon learning these: particulars, I made enquiries and advertised for competent refiners to meet me, and in consequence met Mr. Benies, ,whp. was at that time managing chemist at Apollo Company’s candle works. Mr. Benies, was recommended to me by Mr. Cosmo Newbery, the Government Analytical Chemist,and severel other scientific and practical men. The result was that Mr. Benies was so much impressed with my description of our property, and with the somples of our minerals, that he determined to come over with me, and judge for himself. His visit has been of the utmost importance |» K tlwpompany. He has shown uslliat’we have millrons of tons of highly pay- > able earth; and a proposition hay bfeen made to the Board this day, which it is most desirable to entertain. The boring and prospecting for oil can proceed uninterruptedly, while we engage with the extremely profitable extraction of paraffin. ; If the Company decides to commence the ’ utilization of the vast deposit of mineral wealth now, apitad, it will be necessary for an extratelassWJKSXi:® one penny par share pei; month. "To Conclude, I have the greatest Satisfaction in Congratulating the shareholders on the rapidity of the progress of this Company which has been caused by th?, careful study and apof your Board, qf Directort to W duties they had undertaken, and the earnestness with which they have examined any proposal before them, the consequence being that the utmost unanimity has prevailed, and the public confidence has been maintained strengtljened'So tliat our shares are now valued jat several hundred per cent, over the issued H! if bave < i. r . •, , , Wm. Clarke. , i'he following proposal from Mp. Benies, for the future working of the Company, waft Also read l3th August, 1831. \Vm. UTj Managing director of the Southern Cross JI * f (.fTHrolium Co., [Limited]. Dear to our many conversations relative to the paraffin works qonnected withlKe Southern Cross Co.’s property, I give you the following particulars and proposals, viz.:— , , . , ,

About 3 acres land required. , g i Tramway for material to factory ... . . Tram road from!factory fo shipping i; place, rolling stock, wharf, & crane 6000 Office and Store in Gisborne ... ... 100 Q Ten Workmen’s Houses ... ... ... 500 Manner’s House and Store, &c. .«. : 500 Cost of Plant and Buildings ... ... 10,000 iaaaHAOil hot .£18,250 Say, £20,000 The Turnout. ■' , ! Over 10 tains Paraffin Earth ;Wax £ s. d. r, per week .... ... ... 800 0 0 10 tons Kerosene 182 10 0 4 t 0.5 tons other produce ... 120 0 0 A x i Odt j £llO2 a H w Say, £lOOO ‘ ' Cost fob Work. : Manager ... ... .. • UIU Wages of Manufacture and Mining 120 Material ... ... ... 25 Fhel •'■■■'.( 7.. , r.* v»5 Z' , I —r'u: mi,: !,j <..! ;r , ( ■■ x / : £18» i nii.!:<;.,>• < i •; t Say, £2OO - The above plant is' a small 1 one, but by the addition of about £2,500, worth of further machinery,' double the quantity can' be iurhed 'but. 1 ■ •' ;,t ' " " ■< If the Southern Cross Company will carry on the manufacture; the profit per week bn the smaller plant Will be £BO7C I am ready to form a separate Company, if you think it desirable, to erect plant, etc., and to work the minerals prbduced. if the Southern Cross Company will supply these minerals for 25 per cent, of the nett profits arising from their sale. For my services in either Company, I shall require my expenses of removal (say £150), and I will require £lOOO for planning and erecting the works with the latest methods and apparatus. My salary to be £5OO per annum, with a, bonus of 2| per cent, on nett profits as manager, in which;position I shall also require to be fixed at least for five years. In case a second Company is formed, it would be necessary to bind the Southern Cross Company not to supply another factory, or to fuse the two Companies as soon as petroleum is struck in payable quantity, so as to avoid what might become a ruinous opposition. Should these terms meet with the approval of your Company, I am ready to commence my duties at once, and remain Your Obedient Servant, Michel Benies. At the request of the Chairman, Mr. Benies addressed the meeting in explanation of the foregoing, but did not go into details or particulars. He said the Company had a splendid pros-

pect before it, as candles, matches, plastering, paraffin butter, benzine, kerosene, and tar were all produceable from the stuff he saw on the ground. He had been over about 4 acres of the ground, and everywhere found from 6to 10 inches of paraffin. He thought it would go to a great depth, and yield probably, millions of tons. In fact from the cursory inspection he had made the yield maybe said tn be unlimited. ! <iZ/? ( !

Mr. Clarke said Mr. Benies had been introduced to him at Melbourne, by men of wealth and commercial standing as one of the -W&tl experienced men in theseulatitudes. His experience extended over 15 years in Gallicia, and othdr places r and was essentially the man we WAntefL develop our resources. _ • In answer to Mr. Stubbs Mr. Benies said he was of optojqn- that, ( the paraffin soil would go do.wp nt s<Wpe considerable depth. He had known itk go, in other places, to a ddpth of 150 feet. He thought from the experience he had in other parts,,, that- the company would be justified in setting to work at oned. > The survey he had made was sufficient to justify hita in recommending the Company to go to the expense necessary. j rdtfr. Maude wished to know if a trial could be made on a Email scple, say of £5OO. Mr. Webb said he ..wished to know !if Mr. Benjes was satisfied frdm Jhl cursory survey hi hftd Appftfy to.lje- ! commend that the eonapapy .. should at ! once proceed to a consideration of the large expenditure in Mr. Benies* letter. 1 uiHuua. boa v Mr. Smith would ask a plain question of Mr. Benies :—=** Supposing you are a tnan of capital,- have you sufficient confidence in tfie field to .inVfest a large amount in the company yourpelf : ,n.. u .jjDfr... tßenies replied unhesitatingly “ yes.” It is merely a question of money. The material ’is there, and only wants ntonyytp develop it. After 1 some discussion Mr. Stubbs proposed, seconded by Capt. Wintor: —

That an extraordinary meeting be called for the purpose.of considering Mr. Benies’ proposals of the. 13th August, now before the meeting, and authorizing ’the Directors to make calls of more than one penny per shacfc per month. —Carried, Mr. Clarke said he had disposed of 21,000 shares in .Melbourne to some of the best “ 6 figure men-there” who were prepared to .go to Is calls if necessary. Mr< Benies’ coming here was viewed by them with great satisfaction ; and it was urged that the works be pushed on with energy. Mr. Smith said before Mr. Clarke went to Melbourne the company was in a critical stare ; but thanks to that gentleman’s exertions in placing so many shares in that market, the necessary capital would be forthcoming to prosecute the works, and infpte a new life into the company. Shares had improved in value, and. thorp, was every chance of the company Tkfihg a success. He would, therefore, more that a cordial vote of thankebe given to Mr. Clarke for the services rendered to thp company, ~ Mr. Webb seconded the which was carried with applause. Mr. Clarke acknowledged the-«om-Sliment, He said' all "his time, and est energies had been devoted to the interests of the company, and he should, continue to promote them to the best of his ability. His visit to Melbourne had been the means of softeningcdpwn many asperities, atnd establish the comEany in the confidence of the shareolders. , A vote of thanks to the chairman terminated the meeting.