PETROLEUM

Taranaki Daily News, Volume LIII, Issue 262, 15 March 1911, Page 2

PETROLEUM

Writes a correspondent to the Stratford Post:—l noticed in a recent issue a speech by Mr. Henry, in which he emphasised the necessity of calling in the aid of the British capitalist to develop our Taranaki oilfield. From Mr. Henry's point of view this is no doubt advisable, but from a Taranaki point of view, it would pay the present shareholders equally well to keep the industry in their own hands. It is generally recognised that the industry cannot be' placed on a satisfactory footing until a refinery has been erected. It behoves the Taranaki farmers to wake up and invest a few pounds in Taranaki petroleum shares, so as to assist the company to continue boring operations. We also think that the Taranaki electors would show their gratitude later on if the Government were to offer the company a loan sufficient to' pay for the erection of a refinery. Perhaps it will be argued that the money would still come from the London money-lender. That is so, but let us go into figures. Let us put down the supply of oil from No. 2 and No. 3 bores at (HipO gallons per week; at Is per gallon; that is £3OO. Now let us say that the Government advanced a loan of £IO,OOO on the company's plant and stored oil. This would be a safe investment, as there is probably £IO,OOO worth of crude oil stored at the works at the present time. This loan at 6 per cent, would come to £OOO per annum. The above supply of oil per week would thus pay the interest on the loan in a fortnight, leaving the other fifty weeks in the year for profits, minus expenses. In the other case, if London capitalists took over the concern all those fifty weeks of profits would go to London. leavin» us nothing but n few hundred workmcnand their wages. Those remarks of Sir Joseph Ward's that the company deserved every encouragement should have materialised in a practical form, and we regret he has not found time to look into the matter before his departure for the Old Country.