THE OIL BONUS.

Taranaki Daily News, Volume LIV, Issue 143, 13 December 1911, Page 6

THE OIL BONUS.

DIVISION' OF THE SPOIL. The court was engaged all yesterday afternoon hearing a case in which Albert Edward Callow, oil driller, of New Plymouth, sued Lafayette Keith, manager of the Taranaki Petroleum Company, for the sum of £127 13s Od, being a claim for royalty at fid per barrel on 4032 'barrels of oil won from December 9, 1909, to October 4, 1911, during the term he was employed, amounting to £ll7 Is, also bonus on 2025 feet of boring at No. 5 well, at fid per foot, £SO 12s fid, less £4O paid on account. Mr. C. H. Weston appeared for the plaintiff and Mr. A. H. Johnstone for defendant. Mr. Weston, in opening the case, outlined the evidence proposed to be given. The first witness called was Edward Harold Tribe, secretary to the Taranaki Petroleum Company, who deposed that the company's arrangements with Mr. Keith included a bonus of Is per barrel on all oil won from the time he was appointed manager on February 4, 1910. Mr. Callow entered the service of the company on December 9, 1009, and left on October 5, 1911. From February 4, 1910, up till October 5, 1911, the bores had produced 5967 barrels of oil. On November 2, 1911, No. 5 bore was down 1990 feet. Mr. Keith had been paid the greater part of his bonus on the oil won. It was no part of Mr. Keith's agreement to get a bonus on the depth bored in No. 5 well. He wrote the receipt produced, which showed a payment of £4O to Mr. Callow on account of bonus at Mr. Keith's request. Mr. Keith did not then 3ay that he was sharing the oil bonus with Mr. Callow, but at aniother time said that he had arranged will Mr. Callow that if he succeeded in getting the directors to give him €7 per week instead of £0 per week he would not have to pay Callow any bonus on oil. The directors agreed to pay this additional £1 per week. He had no recollection that Mr. Keith said tJliat he was going to share his bonus with Mr. Callow. To Mr. Johnstone: Callow's wages when he joined the company were £C per week. This was raised to £7 oil January 29, 1910. Mr. Keith attended the directors' meetings on several occasions and endeavored to get a payment as bonus to the drillers. (Mr. Weston objected to this as irrevelant.) On April 28 the directors agreed to pay drillers a bon*(s of 4d per foot for every foot i drtricd flrom 1500 feet up to 2500 Ifeet at -bore No. 5, on tlife recommendation of ■ SSr. Keith. Mr. Callow was paid this and appeared quite satisfied. Tcrf Mr. Weston: Mr. Callow was paid £8 0s 8d on this account. Mr. Keith at first recommended that the bonus be paid oiri) 15J45 feet, but afterwards corrected this to 2000 feet. Albert Edward Callow, plaintiff, an oil driller, deposed that prior to joining the Taranaki Petroleum Company he had worked for the Hadley Company. Defendant came to his house in Lemon street and asked if witness would work for the Taranaki Petroleum Company. He pointed out that the company was only paying £0 per week, but he would endeavor to get witness £7 per week. After the annual meeting defendant came and saw witness and told him that he had secured £7 per week for him, also that he (defendant) was to get a bonus of Is per barrel, of which he would give witness half. He also said that witness and he were the only two men in the country that knew the business lanfi should work in together. The supply of oil at that time was very small and was being pumped. In May, 1910, witness got oil. In November, 1910, witness said that he would like to get the drilling at No. 5 bore <l>y contract, and defendant said he would endeavor to arI range this, but later told witness that he J was not able to get the contract for J him. He, however, said that he would giv/e him a bonus of 6d on every foot drilled, but emphasised' the fact that this would be out of his own pocket. Witness said that this bonus made a difference to his work. He had several times asked for payment, but- nothing definite was arrived at until April last, when, in the Grosvenor Hotel, defendant said he would pay plaintiff in full when he reached 2000 feet. He worked a week beyond that point and approached Mr. Keith, who told him the directors were not going to pay until the bore was down "2500 feet. Witness objected to this and Mr. Keith gave him £4O on account, and said that most likely he would not be able to settle for the balance of the footage and the oil bonus until the new company took over. Witness left the company because Mr. Keith told him the company was economising by putting off the" highly-paid men until the water was shut off. Another man, who was put off at the same time, was reinstated a few days later. Witness knew that the company was paying the drillers 4d per foot royalty, but Mr. Keith told him that had nothing to do with his private arrangement. To Mr. Johnstone: He was not dismissed from the Hadley Company, but was warned not to go near the bore again. .Mr. Keith actually got him £7 a week a month after lie got there. He had never worked out what \ his weekly rate of wages would amount to if he got the bonus he claimed. He was in charge of No. 5 bore, and in • April went to the theatre in New Plymouth without permission from Mr. Keith. After this be was off work for two days on his own account. He was not dismissed or suspended. He went to Mr. Carter, but not to ask to go back. \\ hile there ho mentioned that Mr. Keith had promised him fid per barrel bonus. If Mr. Roy, Mr. Carter, and Mr. Keith said he did not, that statement would not be true. Mr. Johnstone asked witness i'f it was reasonable to ask them to believe that his wages were to be £l.' 10s 4d per week. Witness replied that the bonus was Mr. Keith's own suggestion. Mr. Keith admitted that he would not get another man equally as good as witness. Mr. Keith's bonus meant that he would get bonus of lOd per foot for drilling. This was not unreasonable. He had occasionally got 2s fid. Mr. Keith never made any suggestions to him when any oiiu else was about. Mr. .Tolmstone took exception to this remark, when witness stated that he not mean to insinuate anything by it. ■On Mr. Weston's application, the claim was amended to include 5!)07 barrels, as given bv Mr. Tribe. Re-examined by Mr. Weston: Witness gave details of a conversation in Mr. Carters office in which he had "ac-. ••used" Mr. Keith of promising him half his bonus. Marion Callow, wife of the previous witness, gave corroborative evidence. Mr. Keith, who was a frequent visitor to their private residence when he engaged Callow, and seemed particularly anxious to get hint, as he said they were the only two men that understood the work and should work the company together. He said the company would give only •£(> per week, but lie would arrange for Callow to get £7, if he had to trivi? the extra I'l out of his o" n pocket. After the annual meeting, Mr. Keith came into their front bedI'nom. when they were both in bed. He said he had got the extra £1 for Callow and also Is per barrel bonus for himself, which he would share with Cal-

low. He seemed very merry and asked them to get up and come to Waitara with him, which they did. Later Mr. Keith came to her and told her to ask Callow not to be so persistent about the bonus, as he was not in a position to give it at present. Oil one occasion ht sa>id, "Callow is very foolish, because hj« lias got about £lO5 oil bonus and footage to come." iWitness, under cross-examination, said that her husband's wages were £7 per week at Hadley's x but he drew about £4 per month overtime. Keitli talked business so often that she could not remember any specific date. December was impressed on her mind, because she had arranged for an inventory of her furniture on that date, with a view to a sale. On occasions Keith borrowed money off her and said that when he got his oil bonus he would refund this money and their share of the oil instead of the extra £1 per week. It was a different matter. James Wilson, who had recently resigned his position at the Petroleum Company, stated that about three or ' four weeks ago he was working, with Mr. Keitli at No, 5 bore, when Mr. Keith informed him that lie had paid Mr. Callow 6d per foot for every foot he had drilled. This closed the case for the plaintiff. Mr. Johnstone said that defendant's ease was that when he employed Callow the latter demurred at accepting £(i per week. Keith then said that he would endeavor to get him £7, and if lie was unable to do so, lie would give him half his bonus, He arranged for the increase to £7 per week, and that ended the master. With regard to, the footage, a. large sum depended on' the company getting oil at this bore before the new company took over. Keith told the drillers that he would endeavor to get the company to grant them a bonus of Od per foot, t'he company would only agree to 4d, and as Keith had some arrangement with Callow he paid him {ld. He considered the only item due to Callow was the small difference between 6d and 4d. Lafayette Keith, manager of the Taranaki Petroleum Company, deposed that Callow was hired through the telephone from Mr. Jones's stables. He came to the bore and was hired for £6 per week. Witness told him he would get him £7 per week, or, if not, he would give him 6d per 'barrel on oil won. After the annual meeting he told plaintiff that he had got him £7 per week. At the meeting in Mr. Carter's office nothing was said by plaintiff about witness promising half liis oil bonus. Callow did insinuate that witness had promised him 6d per foot for boring at No. 5, and had told him not to take any notice of the company's offer of 4d. Witness then said if he had promised lie would pay it, and did so out of his own pocket. Under the agreement of sale the depth Bored at No. 5 would be advantageous to the company, not to him. In re the receipt Callow asked him about payment for the bonus for boring at Xo. 5, saying he wanted the money. Witness then said he would advance him £4O. The Magistrate drew attention to the fact that the receipt was for payment on account. Continuing, witness took it that the 4d paid by the directors was part of the 6d. These proceedings did not commence until after Callow was discharged. The oil bonus was practically nil until oil started (lowing in May, 1910, at No. 2 bore. To Mr. Weston: The £4O paid was really a loan when Callow asked for an advance on his bonus. Witness intended to take proceedings for its recovery when this case was over. To the Magistrate: Witness promised plaintiff no oil bonus whatever. He promised to get plaintiff, who was a good man, £7 per week. Argument then ensued as to the exact terms and date of Mr. Keith's agreement with the company, and Mr. Tribe was sent for. Christopher Carter, chairman of the Taranaki Petroleum Company, remembered the occasion that Messrs. Hoy, Keith and witness were present at his office, owing to a difference between Messrs. Keith and Callow, due to Callow leaving the bore when he was supposed to have been in charge, and Mr. Keith suspending him. As far as lie remembered, Callow claimed that he had an agreement with Mr. Keith for 6d per foot bonus. He could not remember any mention of an oil bonus. To Mr. Weston: He could not remember what Mr, Keith said when the 6d per fool bonus was mentioned. To His Worship: The directors had promised to give Mr. Keith Is per barrel for all oil won. This would be recorded on the minutes. Mr. Tribe, recalled, read the minutes of Mr. Keith's appointment on February 4, 1911. This covered the bonus on oil won. Mr. Keith, prior to that, was in temporary charge from November 15, 1910, „ This closed the ease. Mr. Johnstone said that this case would rest on the credibility of the witnesses, coupled with the fact that Callow had said nothing about the oil bonus in Mr. Carter's office, when it should have been to his advantage to have done so. Mr. Weston also relied on question of fact, and did not address the court. Judgment was reserved till this morning at 11 a.m.