The Daily News. FRIDAY, JANUARY 16, 1914. THE OIL INDUSTRY.

Taranaki Daily News, Volume LVI, Issue 169, 16 January 1914, Page 4

The Daily News. FRIDAY, JANUARY 16, 1914. THE OIL INDUSTRY.

We wish to congratulate the I owl directors of the Taranaki Uillielda, Ltd., upon their decision to liold a mucking or the company's shareholders. Tiic meeting is to be of an informal/nature, and is called to meet Sir (leorge Clifford, tlie sole New Zealand member of the Board of Directors. We luive, us our readers arc aware, urged the local dircctors to call the shareholders together and place 'before them all the information of which they are in possession relative to the position of the company, ; and we only regret the meeting wns not called at an earlier date, before, for instance, the circular calling for the loan of additional capital was issued. Had this been done, wo believe there would have .been no occasion for luil'ling that thunderbolt. v We say this because wo believe that disastrous us has proved the past London management—or mismanagement—New Zealand shareholders have- enough acumen to strain every point to turn their property and interests to profitable account, providing;, of course, that they are able to rid themselves of the London incubus and have (lie future handling of 'the company's affairs themselves'. It will serve no proii table purpose to dwell at this stage upon the mistakes that have led up to the pnsent crisis. The present and tuture are of more concern. Something has lo *1)0 done, and done quickly if the interests of shareholders are to 'be conserved, ft is inevitable that reconstruction on no mean scale will ha.ve to take place, anil tiiat the reins of power will have to be transferred from London, which represents but a handful of shareholders, to New Zealand, where the great body of shareholders reside. This accomplished, shareholders would, no doubt, be prepared to supply additional capital, and > with efficient management, there is no reason why the company should not be put on a. staple end successful footing. Mo are having demonstrated now, as never before, that, a profitable oil field exists in this district. The Blenheiin bore is in the nature of a test bore; it lias been put down by experienced men and under tin" directions' of a highly-qualitied expert: and the results so far attained have exceeded the anticipations of the-most optimistic and silenced the critics t who, generally with insufficient per.-jonal 'knowledge of the conditions obtaining, have argued that j the oil .so lar secured lias come from "pockets," and that oil in payable quantities is not to be fouml here. Of cour.se., it is possible the llleubciai bore's yield may decrease, but it has to be remembered that the No. 2 bore of the Taranaki Oilfields Ltd. produced for nearly three years without cessation, and having been cleaned out, is

again flowing freely. Tho Blenheim <>are is of a 'much larger diameter, and (3 absolutely free from water, ami, jf the expert in charge is t.o 'bo relied upon—ami in viev,' of lii.s qualifications, experience ami reputation, ami the success that lias so far .attended 'his work ill laranaki, his opinions arc entitj'cd to considerable weight—the. prubaTaLlities are that as they go deeper the productivity of the well will increase rather than decrease. Witli the success of this trial bore, must come further development of our oil resources, 'and ilia parent company cannot afford to .remain doing nothing, waiting for something to turn up in London or Timibuo,'/Oo that will give them success or fortune, o'' relying altogether upon the success of other prospecting companies. fl must for its own sake adopt a self-reli-ant policy, and place itself as far vc& possible in an independent position, I hough the meeting to l>e held next week will ibe of an informal character, wc trust the local Advisory Hoard will take .steps to place 'before shareholders the fullest information a,s to the doings of tlie company in (.he past.. As wo liaviß said 011 a previous occasion, the shareholders have a to know everything, ami, apart from this consideration, the directors owe it to llicm■■.l'lves thai 110 shareholder shall be kept in (lie dark upon any. matter he desires enlightenment. Tilt; only way to restore confidence in the company is to giue tite shareholders the fullest information, no matter how unfavorable it may be, a.nd allord them the opportunity of choosing their own management in any ,scheme of re-construction. We trust the directors wil! see the matter in this light and; do tjieiu duty l>jr shareholders.