The Daily News FRIDAY, MAY 11. TARANAKI PETROLEUM.

Taranaki Daily News, Volume XLVII, Issue 8107, 11 May 1906, Page 2

The Daily News FRIDAY, MAY 11. TARANAKI PETROLEUM.

During the past week or two excitement lias reigned throughout the whole Colony over the success of the oi' borine: operations at New Plymouth. Shares hare gone up in price with a bound, and are still mounting vip. In fact, it seoms as if a general stampede has set in over Moturoa oil shares. A jump from £5 to £63 in the price of shares is quite'reminiscent of the old gold and dredging boom days, and makes one wonder when and where the wholo thing is going to end. * * # #

It is desirable that nothing should be done by those controlling the present operations of tho oil works that might later on be falsified and lead to New Plymouth and Taranaki stinking in the nostrils of investors. For the present New Plymouth is not responsible for the boom that has followed the tapping of the oil measures. The price has mounted up solely because of the desire of outside speculators to get into what they evidently are assured is •'a good thing," coupled with the disinclination of loftal holders to sell. The fact that in spite of the tempting prices offering, no less than 320 of the ■IOO original shares of the Company are still held in New Plymouth, proves that the New Plymouth shareholders are anxious that tho control of the concern should remain in Taranaki. The shareholders, or the majority of them at anyrate, liave wisely concluded that they may only reap the full reward for their enterprise, by holding a controlling interest in the development of tho industry. They recognise that only by the development of the oil fields being kept in the hands of the people of Taranaki,, they and the province, will secure the full benefit of the natural resources with which the country has boen endowed.

It is sincorely to bo regretted, therefore, that anything should be done which might thwart the very laudable desires of the shareholders, or injure the prospects of the district. There is, unfortunately, more than a probability that such a result is likely to accrue if energetic steps are not taken by the shareholders. Great publicity has been given to the fact that the flotation of a company of £IOO,OOO is assured. But on what terms, and with what regard to the interests of the shareholders and the province P "Without apparently consulting tho shareholders, the directors have practically decided to transfer the control of the whole of the Company's interests to Wellington. Had this proposal emanated from the unanimously expressed wish of the shareholders, it would be none the less to be deplored, viewed from the broad point of view of the general welfare. It is not suggested that the proposal was made in other than a genuine desire to further the shareholders' interests, but it would seem that enthusiasm has been allowed to get the better of discration.

# * # * Dibectohs of the company, while in Wellington recently, as already stated practically made arrangements to make Wellington the hoad-quarters for future operations. They appointed a firm of brokers—practically making them sole manufacturers, so to speak—and also secured the services of a prominent legal firm. So far from the flotation of the company being assured —we had almost been led to believe the shares were only awaiting allotment—we understand that the Wellington brokers have given no guarantee, nor are there any shares underwritten. At the same time we do not believe there will be the slightest difficulty in floating the company. But we desire to show the shareholders and the public generally where the ill-advised action of the directors, if put into operation, is likely to land them.

* * * * It is a generally acknowleged fact that the Standard Oil Company haye a shrewd representative in Wellington. By putting the control of the company into the hands of Wellington people, what, we ask, is there to prevent Rockfellcr's representatiyc securing as many shares as he wants P Further, what guarantee have the shareholders that our Welliagton friends may not work hand in hand with the representative of the wealthiest man in the world ? The broker and lawyer, however, does not represent the full measure of New Plymouth's tutelage to Wellington. It was actually proposed in Wellington, and provisionally agreed to by the Company's representatives, that Wellington should have substantial preponderating representation on the provisional directorate. Did the local directors pause to consider what it might mean if Wellington should secure the management of the oil field p It is obvious to us that a very few years would witness the spectacle qf Taranaki pouring forth its liquid wealth for transportation to refineries erected in Wellington. For all the benefit that New Plymouth would derive from such a scheme, it would be as well had the oil remained in its subterranean fastnesses. There is now no doubting that the oil is there. What everyone in Taranaki wishes, is that tho industry may not bo nipped in the bud by American bribery, and that the refining and other works, from the establishment of which the district is going to benefit, may be erected here and not in Wellington.

# • * * We arc confident that a large pr° portion of the capital required can b e subscribed in Taranaki, as well ns in other parts of the Colony. It matters not so much who scoops the brokerage, but it docs matter very considerably who is to control the allotment of shares. Wp are convinced the shareholders, as a whole, when they look into the matter carefully, will lie far from satisfied with the proposed arrangements, and we hope they will take the earliest opportunity of making their influence felt, it is for them to say at wliat figure they are prepared to sell their interests, and it is for them to insist that they shall have a fair representation on the provisional directorate, especially if, as at present, their promoting interest is to be assessed at one-half the total capital of the company. The directors no doubt, have erred in good faith, but as we understand their error is not beyond remedy, we believe they have the interests of the company and of Taranaki sufficiently at heart to immediately take the shareholders info their confidence and endeavour to evolve a scheme that will nioi'e securely safeguard the interests of all concerned.