THE PETROLEUM INDUSTRY.

Taranaki Daily News, Volume LIV, Issue 287, 31 May 1912, Page 4

THE PETROLEUM INDUSTRY.

The statement made at yesterday's meeting of the Taranaki Petroleum Company by the chairman of directors regarding the sale of the company's property and the position of the new company was quite satisfactory so far as it went. The shareholders, no doubt, would have been more jubilant had the story he unfolded been of a happier naturehad it, for instance, indicated a large oversubscription for shares both in England and New Zealand, and the consequent rushing of the shares to a premium. But it appears that England did not respond to the extent that was anticipated, due, it now seems, to a cause that could never have been anticipated nor provided against—the Titanic catastrophe happening at the very time the shares were offered to the public. It was, therefore, left to New Zealand to find £172,595 shares out of the 183,880 applied for. After the Taranaki Company shareholders are paid, and the promoters' claims and other expenses of flotation are satisfied, there will remain a little over £BO,OOO for further development of the oil field. With this money much can be done, and, with' efficient management, the industry can be readily placed on a staple and successful footing. Of course it would have been better to have had a large amount of money in hand or available, but, as was inferred by Mr. Carter, London may be able to assist us in this respect in the future, when the financial market is in a less chaotic state than it is in at present and has been. Prior to the meeting yesterday the directors came in for considerable adverse criticism for varying the terms of purchase, consequent on the altered condition of affairs, but any unbiassed mind, after hearing or reading the full and frank statement submitted yesterday by the chairman, must acknowledge that the directors did the best thing possible in the circumstances—indeed, the only thing possible. Had they acted otherwise and demanded the fulfilment of the terms of sale, it is easily seen what might have happened the industry would have sustained a set-back from which it would probably have taken years to recover. As for the shareholders of the old company, they will have to wait a little longer for three-fourths of their money. That may cause some of them inconvenience, but, on the other hand, they will be paid interest at the current rate as well as receive an extra £SOOO for the property. The chief points to be considered, however, are the interests and the welfare of the industry.

These have been safeguarded and promoted in every way by the directors. For this action they are entitled to the best thanks of every shareholder and person holding a stake in the community. Their work has been beset with great difficulties, and that they succeeded in the adverse circumstances that existed in placing the industry on the footing it is to-day, with everything in training to develop the field on the most modern lines, and backed by the necessary finance, is a tribute to their acumen and devotion to the interests of shareholders and the industry generally. And no one is deserving of more hearty recognition than the chairman, who has made great sacrifices in the interests of shareholders. The honorarium vouchsafed him can never recoup him for the time and attention he has given the company, but it is an acknowledgment that ftie shareholders are not unmindful of their obligations to him. We would have been better pleased had 1 They 'been equally mindful of the services of his co-directors, instead of offering them an utterly insignificant amount, in the light of what they have succeeded in accomplishing on behalf of shareholders. There are one or two points in connection with the new company which admit of discussion. These can stand over meanwhile. Just no w, we only desire to congratulate shareholders of the old company upon the successful way in which they will come out of the transaction, and to express the hope that nothing will be allowed to hamper the development of the valuable resources that lie at our door, and which have been awaiting for long what is at last available—the necessary finance.