INGLEWOOD OIL AND PROSPECTING COMPANY.

Taranaki Daily News, Volume L, Issue 61, 1 November 1907, Page 3

INGLEWOOD OIL AND PROSPECTING COMPANY.

ANNUAL MEETING. The first annual meeting of the Inglewool Oil and Prospecting Company, Ltd., was held in the Town Hall, New Plymouth, yesterday afternoon. Mr L. W. Alexander, chairman of directors, presided over about thirty shareholders. The annual report of the directors slated that the work of drilling was started, the depth to date being about 150 feet, drilling slowly in very hard i

rock formation. The manager, Mr McDonald, was sanguine that satisfactory results could be look for in the near future. The directors were unanimous in advising the issue of the remaining 371 shares of the company. It was gratifying to note that the company's stock had constantly sold at a very consider-

able premium. The balance-sheet showed: Assets, No. 1 bore, including plant, tools, etc., and working expenses to date, £IBO4 15s 4d; grants, £3OO 15s 9d; flotation expenses prior to statutory meeting, £35(1 -Is 4d, balance in bank, £541 8s sd; balance, £l3B 0s Gd; total £3207 13s 4d. Liabilities, capital—looo shares of £lO each, less 12 shares held in reserve at directors' disposal, £9BSO; less 371 shares unissued, £370; less uncalled on fi'ri shaves (five shares allotted fully paid) £5 per share, £30110—£311(1; calls in advance, £55; sundry creditors, £42 13s 4d; total, £3207 13s 4d. Profit and loss account showed: To office expenses, salary, advertising, and stationerv. £142 'js Gd. l!y transfer fees, £4: balance, £l3B 9s Gd. The chairman delivered a lengthy

statement concerning the year's work. The manager, Mr McDonald, expected soon to pass through the present hard stratum i::!o easier drilling, as had been the case with the neighboring Moa Company. The presence of gas in large

quantities was an excellent indication of the presumptive rise in the strata, for such quantities of gas had been met in other bores only at far greater depths. Shares were selling at a premium. The directors felt they could congratulate shareholders upon having a really firstclass plant, on obtaining the services of a gentleman of such experience in oil production as Mr McDonald, and on indications which apparently made the prospects of eventual success second to none in Taranaki.

The manager reported that he was pleased with the indications, and confident of the existence of large quantities of oil. The report and balance-sheet were adopted. After discussion, Mr Henry Brown moved that the remaining 371 shares be offered to the shareholders.

Mr A. E. Watkins seconded. He urged that it was better to issue the shares now, and obtain the premium, than to wait until it became absolutely necessary to get the additional capital, for then the indications might be less promising.

Mr .UcAUum objected to the proposed method of issuing the remaining shares. They should be offered to the shareholders at par. Mr J. Blyth said he had not known previously that this was a company formed for the purpose of prospecting the share market. He saw no necessity for new shares until the present capital had been called up. Was it that the directors had lost faith in the venture? He wanted something more substantial than "gas" before he could see any justification for a premium. The chairman said that it seemed necessary to explain that all the directors were ordinary shareholders, whose interests were exactly identical with those of the other shareholders The directors unanimously supported Mr Brown's proposal, as they would not have done so bad they not, as shareholders, felt it was in the best interests of the concern. There might be an occasion upon which the directors should be in a position to command additional finance, not necessarily on hand, but "callable." He himself had every faith in the concern, and he had more than ever now that the gas consistently increased with every foot that was drilled. He was quite satisfied to put more money into the venture, and, of course, would like his new shares at par, but he thought the tender system would be the best for the company.

Jlr Bedford suggested calling up the unpaid capital in the original shares. Mr Brown, in replying, said his motion did not provide for the issue of shares at a premium. He considered this a most opportune time to raise additional capital, which might be required at any time. For instance, if oil were struck ia small quantities in the present bore, the shareholders would demand further trials. If, on the other hand, the present bore came on good supplies of oil, the shareholders would doubtless demand the purchase of two or three more boring plants as quickly as possible. -Mr Blyth said 6iuall capital was conducive to economic management. Mr McAllum moved an amendment "that in the opinion of this meeting it is not advisable to issue further shares at present." Mr Blyth seconded. The chairman ruled this out of order, as a direct negative. In answer to a question, he said the directors had power to make the issue without reference to the shareholders, but they had promised not to do so without the shareholders' authority. The motion was carried by an overwhelming majority.

Mr McAllum moved, and Mr Blyth seconded, a motion to have the new issue offered to shareholders at par. in answer to Mr Catran, the chairman said the directors had refused an application to have the shares quoted on the Taranaki Stock Exchange. Mr A. E. Watkins moved an amendment that the new issue of shares be issued to shareholders for five weeks by tender.

.Air J. E. Wilson seconded. He said that if the shares were offered to shareholders at par it offered the greatest chance for stock-jobbing that had yet occurred. If the shares were worth a premium, the company was entitled to that premium. Mr Myth again opposed allotment by lender. , Mr MeAllum asked: If one man applied for the whole of the 371 shares at a premuim of £2 10s, and all the other lenders were at, say, £ti, what would the directors do? ilr Aliier: He wouldn't get the 371 shares. The chairman gave his assurance that the directors would not allow the management to gel beyond the control of the present shareholders by the operations of any outsiders. The amendment was carried by 22 to 4, and confirmed as a resolution. Messrs Hy. Brown, W. E. l'ercival, and A. E. Watkins, the retiring directors, were re-elected. Messrs Hugh Baily, H. A. Lewis, and | 11. I). Bedford, were nominated as auditor. Mr Baily was elected. fn tlin election S8 proxies were exercised. In answer to Mr Catran, the chairman said the shareholders could be admitted to the bores only when arranged bv the directors. They had'promised the' property owners that their lands would not be practically thrown open to the public. The drillers, too, objected to "people fooling around," as their presence increased the risk of accident.

Mr McAlluni aslcnl that the directors should give regular reports of the operations to the Press.

The chairman said the directors were absolutely opposed to the publication of reports. At times it would be against the interests of the company to give a report. They might report an accident to-day, and cause immense disquietude amongst shareholders. By to-morrow all would be in working order again; or, they might report good luck to°day, and lose the tools to-morrow. The report would be of little use. The Taranaki Petroleum Co. bad endeavored to issue regular reports, and met enormous difficulties as the result. "And the report,- he said, "is dashed little use when you get it.'' Upon the chairman's suggestion a resolution was carried empowerin" the directors to pay the actual out-of-pocket expenses of the directors who had to travel from Inglewood to New Plymouth to attend meetings. Mr. Lever moved a very hearty vote of thanks to the directors for their past services.

Mr. Bedford seconded, and the motion, including a vote of confidence, was carried.

At a meeting of directors held Subsequently Mr. 1,. W. Alexander was reelected chairman.

Late last evening the manager at Tnglowood telegraphed that the bore was now down iHSft, that he had penetrated the hard streak, and was drilling in easier territory.