Petroleum Industry

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

Petroleum Industry

o MEETING OF TARANAKI COMPANY. P.'r.!TW.\ OF NEW COMPANY. AN IMPORTANT STATEMENT. A meeting of the shareholders of th« Taranaki Petroleum Company, Ltd., -was held in the Good Templar Hall yesterday afternoon to consider the question of going into voluntary liquidation and other matters. About a hundred and fifty persons were in attendance. Th» chairman of directors (Mr. C. Carter) was in the chair, and with him weri Messrs. Okey, M.P., O. E. Bellringer, Little, .1. B. Roy D. P,e.,ry and Elwin, •the other members of the directorate. The company's solicitor (Mr. Quilliam), the manager (Mr. Keith), and the secretary (Mr. Tribe) were also on the platform. At the outset Mr. Carter explained that the meeting had been called for the purpose of considering a series of resolutions involving the voluntary liquidation of the company, the appointment of a liquidator, and so that the powers of the directors be continued in order to allow them to remain in ollice till the completion of the sale of the new company. THE CHAIRMAN'S STATEMENT. Before proceeding with the business, however, the chairman made the following statement regarding the operations of the company since its annual meetinir last year:— On December 14 last, the date of our annual meeting, shareholders were informed that the time for completing th« purchase of the property of this company had been extended to January 31, 1912. No one, at that time, could have predicted that such untoward circumstances would arise as to necessitate a still further extension; but, unfortunately, these circumstances did arise. The financial depression existing in the London market not only continued, but, for a while, deepened as tho result of the threatened coal strike. This misfortune, as you know, actually occurred, and the dislocation ef trade and commerce lasted all through the month of March and created temporary chaos in the whole of the financial world. This may not have been, 'so far as our interests are concerned, an unmixed evil, for it h.u served to show the necessity of developing the oil industry both at home and abroad—so that the nation may not be | dependent upon one source of power j supply only. As you can readily imagine in a project of this nature, it is essential to seize the most favorable condition of the money-market for operatinc on so large a scale as the floating of a concern like the Taranaki (New Zealand) Oil Wells, Ltd. T T udcr the conditions to which I have referred, therefore, it was only courting failure to attempt the flotation of the company in such troublous times; hence further extension was applied for by the purchaser and reluctantly granted. The market had scarcely recovered from the effects of the coal strike when the world wan stunned by the news of the awful calamity which had overtaken the Titanic. This lamentable loss, coming at the tim* of our flotation, still greater difficulties, and the. situation was further intensified by the large demands made upon underwriters and financial institutions, in immediately pro-riding some two or three million pound* to cover insurance on hulk and cargo. That. under such complex and unfavorable conditions the Company has been actually floated, must be regarded as a noteworthy triumph. It is a matter fo? congratulation also that New Zealand herself has taken up this project so enthusiastically and loyally, and has thereby neutralised, to a large extent, th* effects of the adverse conditions existing in England. I am now in a positioß •to announce that the following number of shares has been alloted in New Zealand. Australia and Fiji, viz.. £172.505, and that the London issue is £11.291. making a total of £183.88(1. Not until today was I in possession of this information, and had T been, X could not have disclosed it except when it wan possible for the announcement to be made to all shareholders at the same time. Had it not been for the facts already mentioned, T have no hesitation in sayino; that London would have eagerly seized the proposition, and this is not without its corresponding advantages, for it has afforded opportunity for the. shareholders and the public throughout the Dominion to secure interests in the new company which would not have been possible had the Home market been more favorable. Tt will doubtless be seen, as time goes by. that the preponderance of influence held hr New Zealand shareholders, will cause us to be thankful that we hold the controlling power in such an important industry; and our main consideration should not be what London has failed to do at this juncture, but what London can and will do in the future, now that the flotation has been successfully [accomplished. The serious and complex character of the negotiations has placed a grave responsibility upon vour directors and caused them much nnxietv; and even though they may not have alwav* acted in accordance with the evnectations of the shareholders, thev believe that they have done the best thing possible under the existing circumstances. At times, the position was so crucial and the alternatives <o alarming, that. <nv hasty or precipitate action would have brousht disaster to this present flotation, if it had not destroyed all chance of reorganisation under proper technical management, and' what i* more vital to this district, put back the development of this industry for vear« to come, for it must he borne in mind that bad this company failed, others could not iiossihly have succeeded. With these alternatives before them, vour directors had no other course, whilst taking every precaution to safeguard your interests but to allow some elasticity in the matter of details, in order that the paramount object of establishing the industry should be accomplished. The following is a comparison between the pronowvl terms and the actual terms upon which the sale was completed:— Terms of proposed sale as announced -it. mpelin? on December 14. 1911: | Price (including extension to January All. £105.000: date for completion January 31.1D12. Shaves. 54,000; cash, ,£.-Sl .00(1. Actual terms upon which sale was effected: £110,000: extended to April 30. 1912. and completed on Mav Ift, 1912. Shares, £59,000; cash, £15,000. So that the only difference between what you were led to expect (apart from extending the time) is, instead of getting £105.000 we get £IIO,OOO. Instead of getting £51,000 in cash, we get £15,000 in cash and the balance secured and bearing interest at five per cent, payable, in three, six and nine months. The interest for the period means an additional ,£IOO7 14s in the pockets of our shareholders The following will show the actual (Continued on page 8.)