Poverty Bay Standard. Published Every Evening. GISBORNE: TUESDAY, DECEMBER 19, 1882.

Poverty Bay Standard, Volume X, Issue 1228, 19 December 1882, Page 2

Poverty Bay Standard. Published Every Evening. GISBORNE: TUESDAY, DECEMBER 19, 1882.

The shareholders meeting in the Southern Cross Petroleum Company held last evening at the Albion Club Hotel, is very fairly characterised in its nomenclature as “ extra- ' ordinary!” Extraordinary by name, and tenfold extraordinary by nature. The gentlemen elected by the Southern shareholders to represent their interests at this meeting made their appearance in full armoar, offensive and defensive, and without a vulnerable point. Holding in their hands, by their own interests and those of their proxies; half the votes of the entire number of shareholders in the Company, they were bound to carry everything before them ; and they did so. The Gisborne shareholders were in a dreadful minority, even those present, or at least many of them, having omitted to pay up their calls (only due last Wednesday) so as to entitle them to a vote, even if it had been required ; but no votes were required. The Southern forces took charge of the whole business and left absolutely nothing for Northern shareholders to either say or do. Still w r e cannot think that the Southern shareholders were wise in binding their representatives to a block vote. They should have been, as all trustworthy representatives should be, and generally are, armed with discretionary powers, which would have enabled a fair discussion of the tribute question to have been brought forward, but, and here Captain Tucker shewed very plainly the absurdity of so fettering them, had the most advantageous offer possibly been made to the Company last night, they would have had no choice, nut would have been obliged to veto it. In their anxiety to block the Northern votes in favour of tribute the Southern shareholders would seem to have overlooked this. Suppose for instance an intending tributer had offered a good bonus, and a tribute of 40 or 50 per cent, for a small area of the Company’s ground (an arrangement the consummation of which is most devoutly to be wished), the offer Jmust have been refused. We think that the Southern shareholders have hardly considered the tribute question in its entirety. Without the slightest doubt the offers submitted to the Directors as read out last night were far too one-sided to allow of acceptance, but that was not the question. To our untutored mind it appeared that the question was whether the tribute system as a principle should be adopted now by the Company ; to which the Southern men said No ! not until we have done more prospecting ourselves. Now this appears to ns r very one-sided view. Suppose the Company works on another six months, and tkvii strikes payable oil! Then they won’t let on tribute under 70 per cent. But suppose at the end of that six months they fina themselves no nearer oil (payable) than they are at present! Who will they then get to tenner for tribute at any price ? They have 2,000 acres of ground to work, and 19 years to work it in. They may strike payable oil in another 60 feet, or they may have to go 600 feet or 1600 feet, and perhaps will then find that they are in the wrong place. Who will tender for tribute then ? The tribute!*) must in fairness have a chance of making something good, or they won’t go in for the tribute, and it seems to us a penny wise and pound foolish system, that of endeavoring to keep all the geod things on one side. To our mind it would be advantageous if the company could let out 20 to 50 small areas, of say 20 acres each, on tribute, demanding 20 to 30 per cent as tribute, after a certain quantum of oil had been obtained ; binding the tributers to work ; and offering o bonus of £lOOO to the first tribut claim that struck payable oil. The rules, regulations and conditions should be framed by the Directory and submi ted to shareholders for approval, and all contracts with tributers based upon ahem. Which means, if adopted, would have the effect of bringing a class of men to work upon the ground whose whole and sole interests would lay in testing it to the very utmost. If times could afford it, if things were flurish ing generally, a bonus might be fairly asked from tributers, but it does not need two minutes consideration to convince any reasoning man that a bonus, under the existing monetary circumstances of the distrust, and the country generally, cannot be expected or asked for. Barring the possibility, which we admit is always upon the Company striking payable oil within the next few months in their borings the tribute system will force its way in as a matter of absolute necessity. Whether the Southern shareholders like it or not, it will force itself upon them, and when it does the Company will have to submit to terms instead of being able to dictate them. That is to say in the event of the present prospecting shaft not reaching the real oil deposit in its borings. We would decidedly oppose letting on the conditions read last night, but we feel convinced that the tribute system properly and judiciously initiated and regulated, would save the Southern Cross Petroleum Company much money and more time. The block voting from the South has put an end to any idea of it for the next two months, but if proposals are made to the Directors in the interim, we fail to see how they can refuse to discuss them at the next general meeting (especially if they are made by a shareholder) despite the resolution carried by the block voters last night. In fact we think a shareholder could insist upon due consideration being given to his offer ; and we have not the slightest doubt that such will be the case. There is ample time between now and the February meeting to discuss and thoroughly analyse the question of tribute in all its bearings, and we have no reason to doubt that during that interim many of those who gave their proxies against what was represented to them as being the scheme of the Directors regarding it, will have to re-consider the matter, and, looking at the question in its true and unprejudiced light, will recognise how nearly impossible it is for one shaft to strike the exact spot in a block of 2000 acres in area; while a multiplicity of shafts would, of course, reduce that improbability, as we may term it, to a minimum. We see no reason to doubt the

good faith of the Directors; they have the Interests of the Company at heart, and are working hard in those interests, and it would be a thousand pities if their endeavours were cramped and foiled by anything approaching to party feeling. Payable oil will soon make up for any little apparent pecuniary advantage that may be given in a tribute contract, and we cannot shut our eyes to the all important fact that in such a vast area of country, more than one solitary shaft or boring is absolutely necessary in prospecting. The Company cannot afford to go to the expense of sinking other bores while they have the inexpensive means at their command of prospecting by tribute. There are many arguments which may be advanced in favor of tribute, judiciously let, but we cannot conceive that shareholders would be mad enough to refuse a really advantageous offer, were it made, simply because there existed arguments which might be adduced against it. The Southern shareholders will doubtless give the matter due consideration, and we firmly believe will very soon alter the direction of their block voting. Com' mon sense and economy, both of time and money, combine to point out the advantages of the system. It could be made advantageous even if actually on payable oil, how much more so, then, instead of being actually on that payable oil, we are only in search of it. It must be remembered that the tributers take the chance of striking on the wrong spot and having to sink two or three borings before they strike oil; and perhaps not strike it at all; and the men of Poverty Bay are not millionaires at present, There are no big overdrafts now ; and the chances are that the men who would work these tributes are men of very small capital who would put their right’into shares as a meansjof supplying the material necessary to work with. But there is this in their faAor, they would work, and might be the means of showing the Southern Cross Petroleum Company the line of country on which their main shaft should be sunk. Without tribut we fail to see how we can have more prospectors and without more prospectors we may easily miss the oil.