SOUTHERN CROSS PETROLEUM COMPANY.

Poverty Bay Standard, Volume X, Issue 1123, 15 August 1882, Page 2

SOUTHERN CROSS PETROLEUM COMPANY.

I A large and influential meeting of the share* | holders in the above Company was held in the I Masonic Hotel, last night, for the purpose of | receiving the half-yearly report. There were present: Mr Clarke, Managing Director ; MijMaude, Chairman of Directors ; Messrs Winter, Stubbs, and Tucker, Directors, and about 40 shareholders. Mr Clarke moved and Mr Stubbs seconded, “ That Mr Maude should take the chair.” The Chairman read the advertisement convening the meeting, and tho Directors’ report as follows Tho Directors have much pleasure in meeting the shareholders on this second half-yearly meeting of tho Company, and trust that notwithstanding the numerous difficulties which retarded tho works, they will bo pleased with the progress made up to this time, although ■ oil has not yet. been reached in payable quantity. Tho whole of the machinery wn® i completed ready for boring to commence in 1 September last, tho contractors commenced . with tubing , tho flrat boro had to bo ahan- . donod at 98 foot, owing to its having been , thrown out of plumb i a second was immediately commenced, which returned a depth of 141 feet, and was abandoned in confioquonoe ’of the bottom tube telescoping. '.('ha contract was then terminated by tho degiro of the con- , tractors, one of whom wishing to make another j trial, tho Board concluded to furnish him on tho terms of the first contract, and allow him , to put dawn a third boro • this was abandoned at the end of December, after reaching 165 ' feet. Owing to the difficulties caused by in- ’ creasing quantity of gas, which at one time j had caused the tube to be filled up with broken j rock, sand, etc., to the height of 40 feet, and i ultimately jammed the tools immovably.

It was reported by the Overseer, Mr Knox, that a small rein of oil wa» out through at abbut 100 feet in depth, beyond this interruptions were very frequent and vexatious from the excessive force of gas. Tho Directors foreseeing that constantly-in-preaging difficulties would arise with greater depths, consulted with MrTattlpy, C.E., who, after he had examined the locality, reoommended that a abaft should bo sunk te a depth of two hundred feet. Tenders wpre called for the work, only two forthcoming, one from the former contractor, the other from Mr J. R. Davis ; the latter was accepted. The shaft was so placed by Mr Tattley as to recover the tubes, by doing which the cost will bo considerably reduced. Additional machinery was needed for rinking, and blowing nir to the bottom, x\l:|oh has all been obtained, and is fixed in working order. After the discovery uf paraffin mineral at tho site fur auv baring operrttious, an and near

the surface, Mr Benies, a practical oil and paraffin chemist, who has had experience in Austria, was requested to inspect the deposit; his report was given at the last meeting of the Company. The Directors, wishing to avoid all possibility of error, determined to send to Melbourne a sufficient quantity to make a thoroughly reliable and mercantile test; the mineral sent over was obtained by an inexperienced man, during about a week’s work. It is reported to have contained sticks, stones, and clay, and although of inferior quality, had turned odt so satisfactorily, that the Committee in Melbourne, under whose supervision the experiment had been conducted, had reported themselves as completely satisfied, and recommended that an arrangement should be made forthwith with Mr Benies to carry out the scheme for producing paraffin on a large scale from the earth wax. Guided by caution, the Directors sent a telegram on the 7th Jan., directing Mr Stubbs to make the best arrangement for Mr Benies to come over and examine into the quantity of the material to be operated on • after which, if all still appeared satisfactory, a permanent arrangement would be made, and refining works would be commenced. It appears, however, that Mr Benies had been previously engaged, so that Mr Stubbs did not arrange with him. The quantity of material reported on as having been subjected to the test is 9821b5., which furnished—s4lbs. light oil; 13Olbs. kerosene ; 4Olbs. lubricating oil; 781bs. prraffin. The computed value of the mineral tested by Mr Benies he reckons at £l5 8s per ton. On the 6th Feb., the Overseer, Mr Knox, writes : —“ I send you a bottle of oil with Mr Taylor, if it continues to flow I will soon have the drum filled up ready to send down ; it is very strange this oil has been so long in making its appearance, the shaft has been full of water since about the Ist of Jan., but no oil has appeared until the beginning of last week.” On March, the 24th, he says, “ I have the drum full of oil and will send it down by the first opportunity.” This drum was received per Rosina, from Awanui, and shipped to Melbourne by the Albion, on 31st March. It has, unfortunately, never been exhibited in Melbourne, but remains stored in Messrs McLean Bros, and Rigg’s yard. The sinking of the shaft commenced on 25th March, the first portion being easily put down, owing to the new shaft taking within its circumference the shaft used by the former contractors, say about 5 feet by three feet. It was determined by the Board to obtain a practical Engineer to take charge of the works, and, after advertising, Mr G. P. Hilton was engaged in May last. He arrived at Awanui on the 18th June, and, in a dav or two after, at the works. His report on the condition of the shaft, and the manner in which the work Was being conducted was such, that os Mr Hilton reported ho was unable to certify to the work having been performed according to specification, the Directors gave notice to the contractor to carry on the work of sinking for 24 hoprs each dpy, and tp put right such work as had been wrong or incomplete, Mr Hilton was also directed to continue the shaft in th® event of a stoppage, or of the contractors npn-oompliunce with the desire of the Board. The contractor, since receiving the notice from the Board, has intimated his intimated his intention of taking proceedings against the Company. The Directors have much satisfaction in stating that they have latelv received information from an entirely independent source that the paraffin mineral is of important commercial value, and that the question of utilising the deposit will have their immediate attention, There is also much satisfaction that Mr Hilton’s reports state that the appearances of approaching the petroleum bearing strata are exceedingly encouraging, and improve every foot of depth.—For the Directors, Wm. Maude, Chairman, Gisborne, 14th August, 1882. The following is the report from the Mining Manager ” Rotokautuku, “ Hth August, 1882. “To the Directors of the Southern Cross Petroleum Company, Limited. “ Gentlemen, —Since my last report, sinking of shaft, proceeding upon 29th ult. Appearances denoted a change of country coming in ; a “ blow” in No. 2 pipe occurred this day, gas forcing through shaft bottom, ground soft upon 31st ult. Took out length of No. 2 pipe, August Ist; both Nos. 2 and 3 pipes lean considerably over in shaft, this being caused either by ‘ swelling’ ground or broken pipe joints • ‘ rifts’ of gas through ground frequently, soft papa clay intermingled with boulders, streaks of red and black papa appearing. This confirms indications on 29th ult. 2nd inst., hard papa boulders in quantity and ‘ gas rifts,’ water showing ‘ beady.’ 3rd inst., took out length No. 2 pipe, lower portion broken ; screwed end found in lower coupling. sth inst., took out length No. 3 pipe ; screwed end broken off in coupling. 9th inst., shaft bottom rising with strong ebullition of gas all over surface bottom, little water, indications good. Upon 10th inst., strong blowing in shaft bottom ; the same evening came upon a black rein (whilst sinking) crude petroleum issuing with strong ebullition of gas, (the roar of gas heard 200 yards from shaft). I examined the locality minutely, and arrived at the conclusion it was an oil vein (distance from surface 109 feet), of what magnitude I cannot tell, till sinking progresses ; I collected out of the vein crude petroleum ; I will try and forward small sample of same per mailman. 11th inst., went down shaft, gas * blowing hard,’ and change of country seemed to be coming in. Work completed this fortnight, 7ft. 6in. Total depth from surface 110 ft. 9in.—l am, Gentlemen, Yours obediently,

“Geo. H. Hilton, “Mining Manager, S.O.P, 00., Ld.” The Chairman moved 0 That this mooting approves of the Directors report.” Air Adair seconded thia, Mr MoLonn said he thought the proposal of the adoption of the report should have come from an outside shareholder in lieu of tho Chairman of Directors. Ho would have proposed it himself had time boon given. Mr Maude said the proposal came from him as a saving of time. Mr McLean said he would in the interest of shareholders ask whence the information as to tho value of the paraffin mineral eame ? Mr Maqde replied that as it came entirely from a private source ho was unablq to give the information required until he received further information. Mr Clarke said he equid give no information further than that an offer had been made of £lO per ton for the mineral. Hp only received such information to-day. Mr McLean moved and Mr Adair seconded “ that tho report, as read, be u4opted. This was carried nem con.

The accounts would not be meddled with until audited. The extraordinary mooting was called for tho purpose of electing Auditors.

Tho Chairman than declared the ordinary meeting closed, and opened the extraordinary meeting, requesting that proxies might bo handed ip. Mr Clarke called attention to the reflections made on the company generally, and tho directors in particular, tjy the letters of “Fair Play,” or Mr James Brice. They could hardly take a criminal notion, and a civil one would involve too much risk. lie would liko to hnvo an oxprossion as to tho best course to bo pursued. He thought those libellous and slanaorous attack* on the direp-

tors should be met in some shape or form. It was for this meeting to consider.

Captain Porter said that during his trip on the coast he met Mr Milner, of Tuparoa, who stated that he condemned the letters of “ Fair Play” or Price, as unfounded, and wilfully calculated to damage the Company. Mr Milner was prepared to thoroughly contradict the statements made by “ Fair Play.” Mr Milner had seen the oil shipped. Price was simply a disappointed workman. In this view he entirely concurred. The present management and state of the Company’s workings were far better, as are their prospects also, than they have ever been. There has been underhand work going on in the face of these improved prospects which are meant to depreciate the Company’s shares. Some measures should be taken to counteract these attempts at depreciation of the Company’s shares. He had arranged 10 years ago to lease this land, and had in company with Dr Campbell, sent bottles of oil to Dr Hector from this very ground, some Bor 10 years ago. This was before any company was dreamt of. Oil existed then, and exists now.

Mr McLean stated that a letter received by him this morning from Melbourne said that “ Fair Play’s” letter had had a most damaging effect on shares there. The Melbourne market asserted that Sir C. McMahon’s allegations are thereby substantiated. “ Fair Play” is not worth powder and shot, the letter is simply a rascally one written with the express object of depreciating shares. Beyond passing a vote of censure it was not ■worth while to take any steps in the matter. Captain Tucker said having heard Captain Porters statement as to the existence of oil, a good effect would be had, but the object of the present question was to arrive at what steps should be taken in contradiction of the allegations of “ Fair Play several measures had presented themselves—Criminal steps— Civil action—Contradiction in the papers—To treat the matter silently ? He was inclined to tho third mentioned course, the former ones being shut out by reason of expense and risk of proceedings. He hoped an expression would be given for the guidance of Directors in the matter. Captain Porters speech would be a valuable contradiction to the statements made by “Fair Play.” It was a practical refutation of those statements.

The Chairman was strongly opposed to litigation. The money would be more wisely used in sinking. Mr East said he thought Captain Porters statement was sufficient vindication, Captain Porter said Mr Milner volunteered the statement to him. Re was himself re? sponsible for the statement regarding tho oil sent away 8 years ago, Mr Stubbs said the question was not us tq the existence of petroleum. We all know it exists, the question was the refutation of Price's statements. Price is not worth powder and shot.

Mr Keefer said that he had been credibly informed that if action were taken against “ Fair Play,” ho was to be defended, and “ Fair Flay ” had stated hie intention of writing a far hotter letter,” Mr McLean said he saw no use in wasting much money over a fool of a man who wasted his time in making malicious and false statements. He would move that no further steps be taken, than making the expression of this meeting known through the leading papers in New Zealand and Australia.

Captain Porter said he would be glad if Mr James would let the meeting know what he saw during his trip to the oil field. Mr James said he did not care to speak, as what he had done was for his own pleasure. Captain Porter said he thought Mr Jamea was in duty bound to make a statement. Mr James said he only went there to see the difference between the two Campanios sites. He would give tho preference to the old Company. He had seen any amount of black soil, but he was not a judge of oil matters. Mr East seconded Mr McLean's proposition.

Mr Carlaw Smith suggested some alteration in the wording qf tho mqtion with a view tq its being thoroughly effectual, Mi* Stubbs said that he was on tho ground oq the 28th of February, and then saw the oil rising. The manager had then collected about two gallons. He was satisfied with the prospects. As Mr James had stated, the yellow earth was not as valuable as the black earth, which existed in large quantities. The amended resolution was then read.

Captain Tucker would even hesitate to even sit silent while such a resolution was read. It might injure the man in extreme proportion to the injury the letter he had written had inflicted on the Company, which could only be a pecuniary injury, This resolution would go straight to his character. The letter might have been written in good faith, and still in confusion, but with good intent. There is no doubt that the mans statement was erronous—a milder resolution would meet tho matter. Ho thought the man was simply confusing matters in his mind. Mr East having deolined to second the resolution as it stands, Mr McLean said he would withdraw both his motion and amendment, as he had beon under misapprehension. Captain Porter thought in the best interests of tho Company the matter had better be left to the directors, it would not do to leave the Company open to legal action, of which “ Fair Play’’ would be certain to take advantage. Mr Maude thought this course would meet the object in view. Mr Adair concurred with Captain Porter, and would second the motion made by him. That as regards “ Fair Play's ” letter as already published, the matter be left in th® hands of the directors to refute “ Fair Play’s” statements as they think fit. (Car* riea).

Mr James asked what had been done during the past six months towards substantiating tho title of tho Company to thoir ground, Mr Clarko said this was a basis of Sir 0. McMahon's allegations. The matter of oom* plotion of title had been undertaken by Cap* tuiq Porter, who agreed to finish the matter for £l5O. The title is in the same position as most Poverty Bay titles aro, He nad arranged with the Government for tho with* drawal of a proclamation of a block of 2000 acres. The Company wore ready with the money when the title was prepared, only a tow signatures were required for completion. There exist® a letter tq Major Ropata from the Government agreeing to withdraw the proclamation when required. The lien was about £4BO for surveys and rent. The Government promised to support the Company in all possible ways. Mr James said perhaps Captain Porter wquld enlighten the meeting. Captain Porter said this was a business mutter, which concerned him alone, and that privately. The Company’s title was good, and satisfactory to tho shareholders, There was not the slightest probability of any repudiation of lease on the part of thp Natives. The real liability of tho Company to the Government Snryev lion would be £l5O, He should very much like to see any one try to invalidate the Company’s title. Mr Junies said that a yarn had been circulated in Melbourne to the effect that tho claim had been jumped. Was that true ? Captain Porter said that Mr James had rend the paper?. Perhaps he had an interest in these damaging statements ? The CbuiriiHin asked’ if Mr Jamo* was Mr Jarnos replied that ho was. The mooting then closed, and tho first meet-

ing was formally resumed. Captain Tucker said that the questions just asked were pertinent only to private business and were unfair to Captain Porter as giving too much publicity to business details which might afterwards give him a great deal of trouble in the perfection of title. His outspokenness should not be allowed to militate against him in business. The Chairman said the first business on the order paper was to elect a manager. Mr Clarke moved, and Mr McLean seconded, that Mr F. J. Piesse be elected. Carried item con. Mr F. J. Piesse in thanking the meeting would like them to consider the inadequacy of the salary to the duties required. The present salary is only £lOO. Mr Adair considered the present salary inadequate, and proposed that the salary be increased to £l5O. Mr McLean thought from his experience in these matters that £2OO per annum was not too much. He would propose “ that the managers salary be £2OO per annum. Seconded by Mr P. H. Bourke. Mr McLean said that with the constant increase of work in changing hands of shares in view, £2OO per annum was not too much. Mr Carlaw Smith had great pleasure in supporting the increase. He knew from persoral experience what the changing hands in sha -es meant. Mr Stubbs said that for £2OO per annum the manager should be expected to devote ail office hours to the Company. Mr Mo Lean said he didn’t cure as long as the work was properly done, how long it took to do, if he didn’t do it properly, discharge him and got another man. The amendment was carried. Mr Piesse briefly thanked the meeting. Election of Auditors. Messrs. A. Croft and 1). Johnson were unanimously eleeted auditors. Captain Tucker thought that £2 2s was sufficient remuneration. Mr McLean having moved £3 3s. Mr Clarke thought that the importance of the responsibility of the auditors demanded good remuneration. Captain Tucker withdrew his objection. Mr MoLean would have proposed a larger amount only he did not want to shame the Borough Council. Auditors fees fixed at £3 3s per audit, Election of Directors. The next business was the election of two Directors in lieu of Mr A. Graham and Mr S. P. Craig. A vote of thanks was carried on the motion of Captain Tucker, seconded by Mr McLean, to the retiring Directors, Messrs. Graham and Craig. Mr P, H. Bourke proposed Mr Carlaw Smith. Mr James seconded the motion. Mr Gregson proposed Mr Win. Adair. Captain Porter seconded the motion, Both nominations were carried unanl* mously. This concluded the business. A vote of thanks was given to the Chairman.