The Daily News FRIDAY. NOVEMBER 16. TARANAKI PETROLEUM COMPANY.

Taranaki Daily News, Volume XLVII, Issue 81889, 16 November 1906, Page 2

The Daily News FRIDAY. NOVEMBER 16. TARANAKI PETROLEUM COMPANY.

Shareholders in the Taranaki ° Petroleum Company have reason 10 congratulate themselves on the com- '■ parative smoothness with which the c business of the statutory meeting was transacted. We say "compara- , tive smoothness" advisedly, for, ac- ; cording to the "man at the corner," ; there was to have been a series of '. exposures without which it would appear it. is impossible to engage in the oil business. Had there existed aVj' reasonable foundation for the wild insinuations that had been doing duty as criticism M the company's management, zt. had they been substantiated ay.ie meeting, the oil industry received a most severe blow \f the wthdrawal of the support and confidence of the public of the colony. Fortunately for the reputation of the men at the head of affairs, and the good name of the colony's pioneer oil company, nothing has been proved to warrant any shaking of confidence in the I concern.

In saying sj much, it must not be inferred that wo approve of every aclion of the management. We arc entirely in accord with the expressed opinions of many of the shareho'ders that the dompany's scale of salaries is liberal to the point of ex-

travagance, but of this more anon. What the public and outside shareholders wanted to know was the reason for the "mating" and "checkmating'' tactics that have recently been openly pursued by certain of the original directorate, and a coterie of which the late secretary was the central figure. After an unbiassed study of the whole position, we have come to the conclusion that the

"scheming" had no more serious purport than a desire of the latter party to secure seats on the directorale, and in the furtherance of the scheme it was necessary to show some reason for the implied passing over of certain members of the old directorate. The party having been "outed," however, no good purpose would be served by analysing the position to prove for the public's satisfaction whether thoso seats on the directorate were required for the company's benefit or for purposes ot private aggrandisement. Had tho advice tendered by the DAILY NEWS some time before the flotation of the company been takdn, to make thtj promoters' shares inalienable until at least the success of two of the bores was reasonably assured, the recent' allegations could not have possibly had foundation in fact.

Whatever the directors.may say to the contrary, there is not the slightest doubt that the sale of contributing shares was prejudicially affected by the loading of the market with promoters' paid up shares at a discount. Further, had the shares been inalienable, the alleged "jobbing" in 'Jhares for Voting purpose-; would have been impossible. Ae we said previouly, however, the rumoured allegations of improper practices on the part of tho late directorate have been entirely unsubstantiated, and investors need have 110 fear that all hab not been straight and aboyo board with the pa s t management, and as regards the future the integrity of the elected directorate is above/ reproach. Concerning tho very heavy expenditure on salaries, we cannot agree with the opinion of the chairman, that the services of an expert at the high salary of £720 (with prospective increase !» '£1000) per annum, were so indispensable. In allowing itself to be practically frightened—the chairman's admission practically amounts to such—into so huge a retainer to Mr Fair seems to us to savour of weakness on the part oi the directorate. Mr Fair may be an oil expert—no one questions his (qualifications—but w'c wfjuld point out that the work up to the present is merely boring. Were the services of the expert actually being utilised —that is to say, were oil in commercially payable quantities being secured and marketed in refined form—probably Mr Fair's retainer would be quite reasonable.

We have no doubt that plenty of thoroughly competent men from the very centre of the oil industry, the American petroleum fields, could be

secured at a less ambitious salary. Whatever may be said of the expertrequired in boring, and however much the handful of borers in Taranaki may endeavour to make a close corporation of their calling, tho public of other portions of the, colony know better. So long as everything turns out well, however, the salary expenditure will be neither here nor there, but if it takes longer to bottom on oil than is anticipated, the shareholders' money should be conserved andexpended tothe greatest ad vantage in only one direction—sinking wells. We trust the new directorate will dis/counf enanca eixtiavagance j n every direction, and so manage the affairs of the concern, which it should never be forgotten is not a New Plymouth but a New Zealand owned one, as to retain the confidence of the people of the colony. We cannot disguise the fact that of late that confidence has been a very uncertain quantity, although, as we are now certain, it was quite unwarranted.