CORRESPONDENCE.

Daily Telegraph (Napier), Issue 3557, 2 December 1882, Page 2

CORRESPONDENCE.

SOUTHERN CROSS PETROLEUM

COMPANY

[To the Editor of the Daily Telegeaph.] Sir,—An article in your paper of the 28th November evinces very clearly that a large and wholesome interest is taken in respect to the profitable discovery of petroleum in the oil country adjacent to this and in this respect if is highly gratifying to me as the founder of both companies now at work for this grand source of national wealth. There are, howeTer, some remarks which I would like to question, with the view of obtaining thoughtful reflection by the shareholders thereto. You state " that a very little consideration will show the shareholders of the Southern Cross that the proposal" of a responsible party to lease 50 acres out of the 2000 acres held by the company " is one they tshonld not accept." Now, Sir, before any man in New Zealand I claim to bave done my beet to

obtain petroleum. The very existence of the Southern Cross Company has depended on me mors than once. I am, therefore, most anxious that the time ■hould be limited as much as possible in arriving at the result, whatever it may be. In America, where companies obtain so large a territory as that occupied by the Southern Cross Company, the proprietors reduce the risk of failure, or hasten the desired end, by putting down a number of bores at one time. I have the particulars of one company started with a capital of a million of dollars recently, to prospect for petroleum in the Alleghany district upon about the same area as ours, and tenders have been called for the putting down of ten holes. It is therefore the desire of tbe board of directors of this company to hasten discovery by entertaining the proposal of an offer of tribute to work fifty acres situated at a minimum distance of half a mile from the present works. It is intended to frame some conditions which will stipulate for immediate work and other matters in order to submit them to the extraordinary meeting on the 18th December. These rules will, no doubt, do away with the apprehension of a bogus company being formed for tbe purpose of making the present one ,( a sort of cat's-paw." In common with the majority of the directors I would like to see ten holes being sunk, of course on advantageous term 3to the parent company. There can be no doubt that the present works have been very costly, but then the experience gained has been great. No oil seeking company or party previously working has been able to penetrate the soft papa clays, and now any person may know how to do it, and may with some degree of certainty lay out his work beforehand, and estimate very nearly his ultimate cost. I may add that, in order to give tbe shareholders the opportunity of deciding the matter with the fullest possession of information, the ground proposed to be applied for under the present offer is situated in flat land at about 150 feet or more below the terrace the present works are situated upon, and this difference of elevation may possibly give the tributer the advantage of having a minimum covering of clays. The question of the removal of the office to Napier or anywhere else gives me no concern whatever, so long as the works are kept active; but I think that difficulties will be increased by distance from the seat of operations, as witness the South Pacific Company's affairs. It should also be taken into consideration that previous to the arrangement made with the natives for the ground now in the company's occupation, there was very considerable hostility evinced against any European acquisition of territory in the Waiapu district. When I first visited the oil springs in January, 1880, the survey of roads was forcibly prevented. Now we have a different order of things; roads have been freely surveyed, and the construction of our own special road is going on as a Government work. These matters are to some extent subsidiary, but the position has been obtained by the expenditure of money and time by the individual members of the board in obtaining the friendship and coalescence of the chiefs. Major Ropata,'of course, from the commencement has identified himself with the interests of the company, but as a fact he cannot be expected to control his people in any particular direction without the aid of the Pakeha, and it is very doubtful if the board of directors should be situated at Napier, or worse still at Christchurch, whether influence could be used if any necessity should arise.—l am, &c,

W. Clarke Gisborne, December 1, 1882.