TARANAKI PETROLEUM CO.

Taranaki Daily News, Volume XLVII, Issue 81878, 1 November 1906, Page 2

TARANAKI PETROLEUM CO.

MEETING OK SHAREHOLDERS. About three hundred shareholders attended the first statutory meeting of tlie Taranaki Petroleum Company on Wednesday afternoon. Mr D. Berry, chairman of direUUirs presided.

CHAIRMAN'S REPORT. The following report was submit- ] ted : —"The directors have the pleasure of reporting to our shaieholdcrs for the fust time, and ill doing so. would like to say that after an enormous amount of work, of wh eh you can necessarily have very little conception, we have now got the company on a firm footing. We regroi that owing to the tral'lic in the 56,000 fully paid-up shares at prices ranging from io, to 151 each, the contributing shares have noi been so fuliv applied for as we might reasonably have expected, but it must lie remcmbcted that the fewer shareholders there are the bigger the dividends will be, although of course the calls will be a little 'heavier, but as dividends will be payable on only the amount pa'd up, this will meet the v>w : s of many of you. We have now a derrick and plant on No. 2 bore on the Prison Reserve, and at date the well is approaching looult in depth, and gas and a little oil are coming freely. Oil No. 3, or lloneyiield's bore, 011 the company's freehold a derrick and plant is also erected and the bore is cleaned out for some depth, and oil ■ is showing freely. We are assured i by our manager, Mr G. C. Fair, that i l:morc than k'kely both these bores will be down 011 payable oil before the end of the year. Three of the directors, Messrs M. l-'raser, 0. C. Fair, and 1). Berry, it was considered advisable should have retained office until one year from this meeting', but upc<n consideration they decided to resign and place themselves in the hanfls of the shareholders for re-elec; tion with the other directors. The auditors also retire, but offer them- j selves for re-election. In the terms of our leases we have to erect a derrick and plant on the Whiteley township trust, and commence boring by the Ist December, and 011 Gillbank's lease we have obtained an ■x.ension ol time to commence boring on condition tnai we creci the deu.cK by that date. Tne directors have, Uioretoie, decided to erect both mese plants a, once, and have oideieu all niaienat and plant."

the report stated that the total number ol shales allotted was 85,31)0, of ,4,1 each; ol the snares, 2ij,3yo were alioiud subject to the paymi.ni of the lull amount thereof as stated m the prospeclus; 50,000 shares had been allotted in consideration of tne tiansfe: of the whole ol the business and assets of tho Moturoa Petroleum Lo., other than money; ihe cash received :u respect of the 2y,3q0 shares was ,4,7005, and this was the only item of revenue. Expenditure included £1684 y/i for new plant, ,4,004 17/11 for salaries and wages at bore, ,4.41 8/2 filing and expenses, £54 10/5 rent of leases, £1457 17 brokerage; .4,306 6/ advertising; £265 IS/4 flotation and registration expenses; ,4,115 3/9 office furniiure, stationery, etc., a total expense of £4530 10/ S. It was- estimated that preliminary expenses still 10 b; paid would not exceed £&s.

Supplementing the ollicial report, Mr berry stated th» meeting had been adjourned for a week owing to the amount ol work rendering" Jt impossible to have the auditing completed. lie had always been of opinion that about 40.000 shaves, say, to put live bores dawn on oil, and for the purchase and erection of a refinery were enough t<> be sold, and even now, with the amount subscribed, economical management, and calling up about 12/6 or 15/ a share, this could be done. Mr fair, who held the somewhat anomalous position of both director and manager, declared that both Nos. 2 and 2 would bottom on oil before Christmas, and, while noi an expert, Mr Berry believed he was not far out. Mr i'air had been engaged on an agreement at £720 a year until the second and third bores were each v.elding 25 barrels per day for 31 consecutive days, wlien the amount ol salary would be raised to /.iooo per annum. Both the chairman and the manager iiad written to America concerning refinery plant, and had received 110 reply. The matter had also been mentioned by Mr Berry to his London agents, and somewhat unexpectedly a reply came from a Scotch firm who were very large makers of plant for all countries except America, hav : ng in hand at the time plant for five different countries, costing altogether £ 100,000. The firm would not quote until they had a fair quantity of oil for analysis, as 011 the quality depended tne natuie of the plant. A plant to suit an inferior o'l would not suit one so rich in lubricating oil and wax as they had heard the Taranaki sample was. So the diiectors sent a cask, and particulars of the analyses made. Another cask liad been sent to Mr Beny s London agents, asking them, in view of more petroleum being produced than could oe refined, or marketed, to ascertain whether a demand could be obtained in Great Britain or elsewhere for crude oil in quantities, and at price. He moved the adoption of tlie lepurt. ilr J. B. Roy seconded. Mr J. C. Gillman proceeded to criticise ihe management, but his remarks were not audible at the Press table for some time. Then lie was lieard to declare lhat the shareholders must be very careful in their selection of the new directorate. The cliaiiman luied the speech out of order, and asked for questions. Mr G.iiman wk.eif wnat amount was being paid in wages tu the Uoters. Mr Berry slated that they were paid /JO a week. There were two of them, working ten hours a day each. The buiing went on for 20 hours out of the 24. Mr Gillman asked if it were the intention to allow Mr Fair to continue as manager and director. In ms opinion it was wrong' (applause), hi speaking thus he knew he was voicing ihe opinion of the majority of the shareholders. Then again, he wanted to know how the item £lls for furniture and stationery, was

made up. Mr Berry explained that the only furniture purchased was a sat' at Mi' The remainder of ihe item was for stationery, such as share issues, cheque 'books, envelopes, etc JK' considered this very cheap. Mr Gillman complained that advertising tv,e -pretty tough," aju! could not sec why all this advertising- might not have been done by the brokers. The chairman staled the best arrangement the company could make with the brokers was for a clear 5 pet cent commission.j|he company's advertising been kept down.

Air McLean asked if it were the intention of die directors to lest the liirihdav well before wasting any more mone\ ai Aloluroa. its he consideted it not a payable well. The chai'irnian :oh, , an 1 what makes you an expert? Mr Berry explained thai to run more oil into die tanks would be a waste of money, for the oil deteriorated when left exposed, Why was,,, the -hntehold--rs' menev. (Applause.) Mr Were recalled a remark of the chairman, regretting the trafficking in paid-up shines. Who was trafficking', the direciois or the. outside pubTh" Chairman said il was among 1 lie. outside -har-holdei'S. and beyond the directors' control. This Iraflio k.ng militated seriously iigaill-t the -ale of the new i-sue. Mr Were wanted to know why the -hare list remained open. .Mr Derrv staled ihal was done bv iv-olui'on of 1 lie directors. Mr Were asked how manv shares bed been sold a- Ihe result of this The chairman sa : cl any shareholder could get this informat'on from the company's book-. Mr Were con-ickvod ihe secretary ought to be able to give this information tight awav. He was paid for 't. The chairman mentioned that the company's bu iness had kept hem at the office till after u o'clock fie previous night; lv had been there again at (| that morning, and up 10 the time of the meeting.'" That' would give the shareholders some idea of "the wmk that had to be done. Mr H Okev thought it inadvisable tg (jontinue hawk-lug the comjUn.j?'e

shares about the country. The b.iar<' list should be closed, mid not opened again without the date of such opining being advertised for at least u\o weeks, so that the directors, • n account of their superior information, would have no advantage over oilier shareholders in p.eking up shares. Let them tracts amongst their own shares,

The chairman said that the present directors were only to hold oltice until the meeting appointed a new directorate ,and the latter would have t) deal with tne share list.

Mi Okey asked if the directors in-, tended to put down bores on the inland options, so that people might know more of the field. The chairman said thai the opinion of the present directorate was that a bore should be sunk inland, but they were not going' to test the whole of Taranaki for tin- benefit , f prospering companies. (Applause). Tlrs company had to bore as mentioned in the report in order to protect ihe options held. Mr Okey urged a progressive policy. The manager could as easily mind twelve bores as six.

The chairman: 1 may say I entirely agree with you. Mr J. C. Davit's said that Mr Okoy's remarks concerning the closing of I'lio share list were very sensible. The matter should be decided by the shareholders, and not left to the directors.

The chairman ruled that as this was ' but a statutory meeting no resolution ' could be brought forward of which proper notice had not been given. But lie could safely state that the directors would certainly close the share list before the two bores got down in payable oil. He was in sympathy with Mr Okcy's suggestion. Mr C. McLean: Is the first one payable ? The chairman: Yes. Have you proved it? Wo are quite satisfied with it. Well,l'd like to see it proved before these others aro proceeded with. The report was adopted. ELECTION OF DIRECTORS. The chairman! explained that .he Articles of Association provided that lie (Mr Berry), and Mesis M. Eraser and G. C. Fair, should remain on the directorate, because it was thought advisable to retain some who were conversant with the company a affairs. But a difference of op ,111011 having alisen, the:e three duoctors had decided to place then resignations in the hands ot the shareholders, in order Id give them a free hand. But by an omission on the part of ■he tecreiary these resignations had not buMJ given in time, the seven clay's notice required not expiring until 2-nd November. For this reason only four directors could be elected ai this meeting in place of Messrs j. W. Wilson, \V. Humphries, M. J. Jones, and J. Rollo.. Tlio only a'tornative was to adjourn the meeting for a fortnight, and i.y the date of the next me ;.n» a i resignations . would be in oi...ei. at might say lie had firm belief in the future of the company. He had put in every pound lie could spare, and his children's : money as well. He wanted to boo ,'t . "go." Mr T. S. Weston moved that the i meeting stand adjourned till the 14th November, at 10 a.m. lie favoured (his course because the shareholders | would then be free to return the pre- , siyiit directors, appoint a lresii set, or . part old and part new. Mr j. 11. Parker seconded., and the , motion was carried.

Before the shareholders dispersed, Mr George Fair, the manager, re-marki-d that there had been a big snuggle to bring the company to its present satisfactory' position. Work was go.ng on as fast as it possibly could, and the number two bore was going down at a record rate, despite the many difficulties experiencej in boring in this country. In referring to Mr Okey's advocacy of starling twelve bores, he would mini.on that such a. course involved big expenditure in plant, and in staff. As an oil man, he would not favour that scheme. Ho was working this new counlry in the interests of the shareholders, feeling his way. He was fully sanguine of the success of the second bore, and despite the many difficulties in reopening the bore, lie would get payable oil from number three. "111 do it,' 1 he said; ''lll hx her up, and show the company there is payable oil in number three.'' He was anxious to bore in the inland options, but there was this to be considered : Was it not better to continue boiing at Moturoa, where they knew there was oil, until the refj.nery was elected, and the oil was placed on the market in payable qualities? Then there would be capital available for futiher boring. That would be the time to go inland. But the whole country would shortly be tested by the various companies. "At twelve o'clock to-day," he said, "number two well was down 1270 feet, and the indications in the shell rock were better tha.n I got in the Birthday well. The Birthday well is a good well, a big well; but number two will be greater."