South Pacific Petroleum Company.

Gisborne Standard and Cook County Gazette, Volume I, Issue 83, 22 December 1887, Page 2

South Pacific Petroleum Company.

A meeting of the shareholders of the South Pacific Petroleum Company was held in th e Masonic Hotel yesterday afternoon. Captain Tucker occupied the chair. There were present Messrs Smith, Evans, Weaver, Maud, Hall, Ross, Barnard, Porter, Scott, Brown, Matthews, Morgan, Chrisp, Ward) Pollen, File, and Innes, The Chairman eaid he did not know whether there was any special business, it would be evoked as the meeting proceeded. It was to consider the position of the Company—the pipe line’principally, perhaps. Mr Scott ekid as Mr Weaver was going over to Sydney on Sunday, he would probably like to have an expression oi opinion to lay before the ditectors.

Mr Barnard suggested that Mr Weaver should give the meeting his idea of what ought to be done.

Mr Weaver eaid the only thing he could see was to consider about the pipe line. The well would produce 100 barrels a day. He did not think there was any other way to store the oil but in tanks. He only had storage for 100 barrels.

Capt. Chrisp asked Whether the question o* laying a pipe line would be part and parcel o f the Company. Mr Fleming had suggested that a new company should undertake the laying of a pipe line. If such were the idea there was little use discussing the question. The only thing that could be done was to agitate that further developments should be made to test the well. Those shareholders in the room might believe that the well was a payable one, but the outside people might not.

Mr Scott said he took it that the question to consider was whether the pipe line proposal should be incorporated with the present Company, Mr Maud said the time had now arrived when they could not do without a pipe lineHe, with a local ironmonger, bad gone into tbe question of the probable cost ot the line, and reckoned that £14,000 would meet the demand. He would propose that Mr Weaver should take over to Sydney an expression of opinion from the meeting that a pipe line should be laid at once.

In answer to a question Mr Maud said calls could be made to lay a pipe line and establish a refinery.

Mr Barnard seconded. He considered i* would be foolish to waste the oil. The wast e would be as much as would lay the line. Ae showing the faith he had in the concern he was prepared to pay calls for a pipe line. In answer for an expression of opinion from Mr Weaver, the contractor, that gentleman said he considered it desirable to first of all procure tanking accomodation for 2000 barrels. When that amount of oil was obtained a pipe-line would immediately follow. With 2000 barrels of oil no one could say there was anything hidden. People could then go and bathe in it if they liked, or drink it.

Captain Chrisp said he was in favor of Mr Weaver’s suggestion. So much wolf had been cried that some people would not believe in the success of the well. He would rather see the Company devote their energies to procuring the crude oil than going in for laying a line and establishing refining works.

Mr Maude asked whether the shareholders knew the territory held by the Company—over 6000 acres. There was enough to put down 1000 wells. With the present show there was no occasion for delay, and if the Sydney shareholders did not make some move they (the Gisborne shareholders) should.

Mr Weaver said he did not think there were over 50 places suitable to sink wells. It would be better for the Company to lease the ground than to go on sinking a number oi wells. He considered the Pipe Company should be a separate concern. If there was not enough capital to float a Pipe Company in New Zealand there was in Australia. If the Company were to be floated by tha present South Pacific Company calls would have to be made, and some of the shareholders would probably not bo able to pay up, Mr File thought they should give Mr Weaver a general assent to do what he thought was best, and approve of it. They should not tie his hands in any shape whatever. It would take seven shillings per share to provide the £14,000 necessary to construct the pipe line. Mr Smith said there was £22,000 etill uncalled up in the Company, Mr C. Evans proposed: •• That the Directors take every means in their power to further develop the present bore by affording such storage as may he deemed sufficient to demonstrate the paying quality of the present well—say 2000 barrels." Mr Boss seconded. Mr Maude withdrew hla motion. In answer to a question Mr Weaver said the Pipe Company would charge so much a gallon for the oil. The proposition was unanimously carried. In answer to a question Mr Smith said a call of 3d would mean £s4o—enough to provide the storage room suggested. Mr Weaver said iron tanks would do.

Mr Maude said it had been rumoured that the oil was coming between tbe 4} inch and 6 inch pipes. Mr Weaver said that tha oil was in both pipes—the 6 inch as well as the 4} inch. The oil would be about five feet from the top of the pipe. Mr Smith said it the Sydney shareholders had any doubts ot the success of the well they would be dispelled by the meeting being held. He thought the resolution was a very sensible one.

Captain Chrisp asked whether it were not desirable to table a stronger resolution in the shape of urging tbe directors to push on the work. He was of opinion that the result now obtained ought to have occurred two years ago if the work had been pushed on. Mr Maude again thought that the directors be urged to take steps to make a pipe line. When Mr Fleming was here he (Mr Maude) had stated he was willing to put a few pounds into the concern.

Mr Scott pointed ofit that a pipe-line would soon follow if they got the 2000 barrels as suggested. Mr O. Evans was against the Pacific Company having anything to do with a pipe-line Company. If there were a separate Company anyone could take up shares. Mr Weaver said he did not believe in having to pay up calls. The pipe-line should be undertaken by a private Company. Mr Maude proposed, and Captain Ohrisp seconded, “ That the Sydney directors be asked to undertake the formation of a Pipeline Company, outside tbe Pacific Company." In moving the resolution Mr Maud pointed out that it was necessary to begin work at once, or else the summer would be lost. There was a lot to be done—a Bill to be passed, &e.

Mr Smith said he had written to the Directors some months ago, and Mr Jopliug had replied that steps had been taken to get a Bill passed, and he hoped that it would be carried this session. Captain Lhrisp said no steps had been taken. Mr Barnard proposed, “ That Messrs Weaver and Scott be requested to interview the Sydney directors, and urge upon them the desirability of carrying out the views of this meeting as expressed in the foregoing resolutions.’’ In seconding, Dr Pollen said it was necessary that the motion should be given effect to. Thejmotion was carried, and the proceedings terminated.

Those present represented over 14,900 shares.