TARANAKI OIL & FREEHOLD CO

Taranaki Daily News, Volume LII, Issue 268, 20 December 1909, Page 4

TARANAKI OIL & FREEHOLD CO

ANNUAL MEETING.. AN IXCRBASB OF CAP|'I'IL. The annual meeting of the above company was held in tlui Town Hal,l on Friday night, the chairman of directors, jVJ-r. F. 1\ <Jorkill, presiding. 'lucre were lifteen shareholders present. The meeting went oil' with characteristic -smoothness", ami there was a very hopeful tone pervading the utterniuvs of id! tlie speakers. Jn moving tlie adoption of the report and balance-sheet (which wc have already published), Mr. Gnkih said he had not much to say in addition to that published. A year ago the directors had come before the share- | holders full of hope that butter progress would be made during the year, and 1 that the bore would be down in tlie bowels of the earth on payable oil. Hut., in a way, they had had bad luck. They possessed a very line bore, of largo diameter, and it was holding up welt, lint, owing to the nature of the country, progress has been exceedingly slow, ami 110 one could be more discontented with the rate of progress than he had been. Wherever bores had been put down at any other point in the Jidd, soft stuff bad been met Vitli—often runs of hundreds of feet of soft papa as easy as chceac to cut —but the Freehold had ' 'Had none of that, not a foot of it, • though tlie hardness of the strata cer- < tainly varied. The hardness caused the - tools to quickly become blunt, necessi- < tating withdrawal after withdrawal lor ' the resetting of the tools. The work - was, however, carried out at a minimum of expense; the stall' was highly elli- 1 cient, and there were no drones. The '< men had certainly earned their money, and the shareholders ought to credit them with that. However, the capital of the company had been very small, and they were now at about the end of their resources*. The industrial lines on which they had made their calls, one shilling a call, had been very unsatisfactory and very costly. The shares issued produced about £11,80(1, of which ,£4OOO went for land, £2OOO for plant, and £I2OO for flotation expenses. They had accordingly carried on work for close on two and a-half years with \£5300, and he thought they had had very good value for their money. They had borrowed against the security of .their land and also incurred other liabilities, totalling altogether about £BOO, Against which they possessed their freehold land and plant. The question for consideration now was, what were they going to do? He believed they should put more money in and continue boring, lor in his opinion they were on a very promising enterprise. During the year there had been several splendid "shows" iit the bore, not sufficient, however, to be turned to profitable account, but it certainly seemed they were getting jiearcr and nearer every foot they went. At present there was provision for issuing 2000 s'hares which had* been withheld at the lime of dotation, without I increasing the capital. He courted the .fullest enquiry by shareholders. llis own feeling, as he said before, was thai ( their prospects were most encouraging, and the general feeling amongst outside shareholders, so far as he had learned it, was that the company should not be allowed to drop. Mr. Body (Wellington) He ftftid the shareholder* in Wellington .whom lie represented wore exceedingly grateful for any information they could get. The report was an encouraging one. He hoped the company would not be reconstructed, but that new capital 1 .would be taken up. He had visited the *■ bore, and it t certainly had a business I look about it. .Mr. l!alloch (the manager), at. the invitation of the chairman, explained the position of the bore, detailing the various strata and the lay of the country. All along he had been boring on an anticline. a very encouraging indication. All the rocks were standing at»a very acute angle, proving beyond doubt that he -was boring on an anticline. Of course, no one could at present tell the extent of the anticline, but he fancied it might extend fifteen to twenty miles. lie thought that ultimately the bore would he a payable one. and he had everv confidence in it himself. He could nut tell .them it was a •"dead rert," because no one could say that. However, he held a good number of slut res. and he was quite prepared to double them at any time and put his money np. }|r. Corkill referred to the visit ot ,Dr. Hell to the district, and hi* interview with those interested in the industry. After what Dr. Bell told them, he ■foil more certain than ever that they were on a good wicket. It was a little unfortunate that they had not been able to get an interim report of Dr. Bell's impressions. He had made as thorough an examination as time would permit, and then, being impressed with the probabilities', recommended a proper geological survey, which was now in progress. No report, however, had yei heeu sent to the Department, although

,the Minister, the Hon.. K. McKenzie, had

kindly offered to allow him to peruse any reports that might ijave been received. The Minister, when seen by him two days agb, professed the greatest interest in the undertaking, and the speaker hoped before long to have hiiu on the field. They might have read that Sir Joseph Ward had recently had communications from the British Government respecting oil. The Admiralty ■was? closely watching developments, and bad indicated that very considerable uso would be made of the oil it it ia got iu New Zealand. He did not think there was much chance at present of getting a Government subsidy, but he hoped that the Minister's eyes would be opened when he visited the field, and i that be would afterwards help in other ways. The Government was most friendJy disposed, and was taking great interest in the developments.

■Mr. C. Weston asked Mr. Balloch if 3ic could say why there was more chance of success in the iYechold bore i than in the others, but the latter de- | dined to be drawn, f Mr. Corkill said he was convinced the Moturoa wells were already on payable oil, bnt they were getting it in country that presented difficulties owing to the soft strata. Once those difficulties were overcome, they would 'have payable wells without doubt. The Freehold case was different, however; they ha 3 no soft country that so far presented any difficulties to the free flow of oil when •tapped. 'Die report and balance-sheet were then unanimously adopted.

The vacancies on the directorate were filled by the election of Mr. M. Jones (re-elected) and Mr. Messenger.

. Mr. C. T. Mills was re-elected auditor. A long discussion ensued on the question of raising additional capital. Mr. G. Brown moved that the resolution of August, 1900, withholding 2000 share*' from issue be rescinded, with the object of moving further to put clause M of the Articles of Association into operation.

■Mr. T. S. Weston pointed out that U would be necessary, before the capital could be increased, to have the resolutions made at a special meeting called ifor the purpose. In the ensuing discuss'ion Mr. Brown eaid they would be placing themselves In a false position if they though! the issue of the £2OOO unallotted capital would see the bore right down. He altered his motion to read:

"That a recommendation be given to the directors to release the 2000 shares held back from issue, in such terms as' they think fit." This -was seconded by Mr. Body and carried unanimously, the latter provision being inserted a® an indication that the meeting did not favor Is calls as heretofore.

The same gentlemen then moved, and it was unanimously resolved:

"That the directors take steps jo increase the capital of the compartv by the 10,000 ordinary shares' of CI each."

Mr. Body moved a hearty vole of •thanks to the manager, lie said lie had the greatest pleasure in doing so. for he doubted if anywhere they could get a man who would so zealously advance the shareholders' interests. Mr. C. Weston seconded.

Mr. Corkill said the resolution expressed the feelings of the directors, who had the most implicit confidence in ' Mr. Balloch. He £ad jnpfc tfte cojnpauy

in every possible way, and on his own initiative had proposed a reduction in ihis salary. The motion was carried enthusiastically. ! Votes of thanks were also accorded the directors and secretary, on the motion of Mr. T. S. Weston. lie said the management had been very efficient aiui economical, and though the fates had I oen against them this year, he hoped better things wsre in s'tore. I Mr. Corkill, in acknowledging the i vnir, said it was very gratifying to know they had the confidence and ap- ! preeiation of tlie shareholders. .Mr. .Medley (secretary) also returned M hanks. ami expressed hin opinion that | shareholders had now a better chance .of getting a return lor their money | than ever before, and they 'vould be j very foolish if il\ey did not put more money in now.

On the motion of Mr. Corkill, a hearty vote of tliauks was accorded the Press, and a capital meeting closed vfitn the usual courtesy to the chair.