The Daily News. TUESDAY, AUGUST 9. THE OIL INDUSTRY.

Taranaki Daily News, Volume LIII, Issue 103, 9 August 1910, Page 4

The Daily News. TUESDAY, AUGUST 9. THE OIL INDUSTRY.

The meeting of shareholders of the Taranaki Petroleum Company that took place yesterday was probably the most important that has been held in the history of the company. The manager's report, was a businesslike record of

I achievement, unparalleled in the oil pros- ! pecting industry of Australasia, -without the slightest attempt at "frill" or fiction. The reporjt showed that the best possible use had been made of the capital available, and that with many disabilities notwithstanding the industry has been brought to an important stage in development. The outstanding feature of the meeting, however, was the confidence, enthusiasm and unanimity of the shareholders. It cannot be said that excess of enthusiasm or confidence has been shown locally in the past, or that unanimity has characterised the dplib'erations of the company's meetings. The • probability is that the present condition of affairs has been 'brought aibout by the actual results obtained from the wells and personal examination of the wells, and that shareholders feve been convinced by optical evidence of the fact ; that we are on the eve of winning and refining oil on a big commercial scale, and establishing one of the greatest industries in the Dominion. It is seen that with the available capital the manager has made every endeavour to win the oil that his experience assured him was to be won, but that in order to further tap the oil-measures and to develop the industry further, more money is necessary. So the chairman of directors , moved that the capital of the company be increased by thirty thousand pounds in one pound shares, to be issued preferentially. It is not necessary, to set out here the full text of Mr. Carter's motion, but the report is well worth I perusal. The whole of the shareholders present, with one exception, were in favor, and the motion was carried. If the optimism shown is unexpected, it is certainly extremely gratifying!, for it is an optimism that has grown slowly, and by no process of boom. It is certain that unless persistence had not been the watchword of the directors and their. ■ manager, the No. 2 well would not at the present time be sending up oil at I the rate of 100 barrels a week by the mere pressure of natural gas. It is a', fair assumption that if a well gives a splendid flow of oil from June to present date, and shows no disposition to ease off night or day, that it is worth while not only sinking existing bores to tap the same stratum, but to sink other bores along the discovered line of oilbearing country.' The country wants all the oil Taranaki can produce, and the product is going to play quite as large a part in the world of power as coal has hitherto done. It is sincerely hoped that ' with the practical assurance of a great enterprise being)' made payable that it it will not be necessary to alienate ownership, and that the capital to be raised by the issue of preferential shares will be sufficient to demonstrate that the industry is worth while holding in New Zealand. (However excellent the effect of foreign capital might temporarily be, the value of (New Zealand ownership cannot be overestimated. It is conceivable that the largest possible output of the company's wells, now or in the future to be brought into full capacity, . could be utilised in New Zealand, and this in itself is sufficient to prove to pessimists the great advantage independence of America, would pjive us. The directors show that it is impossible for a small, company, even with the added capital of £30.000, to exploit the field to its anticipated capacity, but this does not dispose of the fact that New Zealand is a wealthy country, and that it should be as easy to convince New Zealariders of the value of the field as to convince the London capitalist or any other person. If it is necessary to borrow money from the Government'' to erect a refinery in order that evidence of the value of the industry may be offered to British capitalists, it would seem to bo more necessary to convince those New Zealanders who invest millions outside this country that the industry i? worthy of their notice. There are, as may lie seen from the report, shareholders who object to selling the industry to anyone, and the chairman, amidst applause, mentioned that the industry must be considered first and the shareholder* second. Tt is a pity that the enthusiasm of the shareholders, who una-nimonsly passed the resolution to increase the capital by the issue of preferential shaves, could not be made epidemic anions capitalists in New Zealand. The London capitalist is well aware that there are such things as New Zealand capitalists, and the nonconfidence of the lo",il man would militate against the eon fid once of Home syndicates ■ looking for an avenue for speculation. If the Government is induced to advance a large sum for the erection of a refinery, and also to ,eive the company the benefit of the skilled services of -the Government geologist, it is conceivable that the Government will.do so,, not merely to he recouped for its loan, 'but in order that the oil industry may | jbe developed for the' permanent benefit, I tf New Zealand. It is sincerely hoped i that the new'capital to be subscribed will not only enable the company to increase the output of existing wells and toMMi mMS* **&&

to New* Zealanders that the industry is Wo valuable to be allowed to slip into! the hands of outsiders. If the industry, and not the shareholders, is the consideration, the point should be considered whether the shares should be held in Britain or New Zealand. No New Zealander will hesitate a moment in his answer, if he is convinced that the industry can be made permanent and payable. And no outside syndicate, with an option, is likely to sink money until this is proved by the refinery, which is the greatest essential at the moment, and for which Government aid is being sought. We cannot leave the subject without complimenting Mr. Carter upon the soundness of his remarks and his able handling of a meeting which, as we have said, was unique in the history of the town.