The Daily News FRIDAY, MAY 18. PETROLEUM COMPANY PROPOSALS.

Taranaki Daily News, Volume XLVII, Issue 8113, 18 May 1906, Page 2

The Daily News FRIDAY, MAY 18. PETROLEUM COMPANY PROPOSALS.

Thb conditions under which the directors of the Moturoa Petroleum Company, subject to adoption by the shareholders, have decided to promote the larger concern that is to exploit the oil field, have been received with much satisfaction. Considerable concern was felt and expressed when it was announced that the directorate had practically decided on a scheme that meant the selling of the whole concern to a Wellington syndicate. Wiser counsel has prevailed and the public of Taranaki are to have the first refusab so to speak, in the matter of investment. There is every reason to believe that the response will show this course to have been woll advised.

# # # * Notwithstanding the very tempting offers that have of late been made for Moturoa shares, comparatively few have changed hands. Of the four hundred original shares, oyer three hundred are still held in this immediate neighborhood, tho balance being scattered all over the colony and Australia. The faith thus exhibited in the venture by the shareholding promoters is, we believe, reflected right oyer the proyince. Under the circumstances it would have been the height of business Eolly not to have first of all given the people of the province the opportunity of controlling the capital of the works. Thereafter it would be the fault of the people themselves were the control to pass out of their hands to Wellington or any other financial centre. It is therefore satisfactory that the principle of encouraging local investors has been affirmed by the directors. * * * #

It now remains for them to make the conditions as light as possible, consistent with requirements, and otherwise popularise the share issue with tho Taranaki public. In this connection the decision to issue one pound shares is a judicious one, and as it is understood the terms of payment are based on a particularly low rato of calls, the prospects of floating the concern locally :ire bright. The lighter the conditions the more likelihood of inducing the small investors, the five and the ten pound men, to secure an interest. It will be far more to the Company's interest, and to the interest of the province that there should be ten shareholders with ten shares each, than one with a hundred shares. There is another condition, however, quite as important as the offering of enticing terms, and that is, to secure not onlv tho sympathy, but the confidence of the would be investors

It seems to us that offers no difficulty, if the promoters are prepared to continue the confidence in the concern they have up to the present exhibited. We would suggest lhat the paid-up promoters' shares should be made untransferable and inalienable until such time as the works are established, or, better still, until the initial dividend has been paid as the actual result of petroleum won. Were the promoting shareholders to agree to such a condition attached to their shares, wc are convinced there would be not the slightest difficulty in floating the whole concern in this province,