S.P. PETROLEUM COMPANY.

Gisborne Standard and Cook County Gazette, Volume II, Issue 240, 29 December 1888, Page 2

S.P. PETROLEUM COMPANY.

A MEETING OF SHAREHOLDERS, n MR WEAVER MAKES AN EXPLANATION.

A meeting of shareholders in the South Pacific Petroleum Company was held at the Masonic Hotel last evening, about 12 persons being present. Captain Tucker in the chair. The Chairman said he had frequently bean requested to call a meeting of shareholders and hear what each had to say. One would prefer to say in front of a man what he would not care to say behind that person’s back. For those reasons he thought there hould be a meeting, and bjr Weaver should be present. They would’ agree with film in saying that the returns from the oil fields were as far away as ever, The other question was whether delay was unavoidable, and, if it was not so, who was to blame ? He did not think it was right to come to any conclusion on these questions without hearing explanations. He had hardly ever spoken to Mr Weaver, but he had heard remarks in the street concerning that gentleman. Mr Weaver's explanations tn him of any question ho had asked was quite satisfactory. The first delay Mr Weaver attributed to tl?3 nonsignature of the lease, and he thought it. would have been foolish to take any steps before the lease was completed. The lease being signed, the more vigorously the work proceeded the better. Then the question was, in what position is Mr Weaver ? The speaker then referred to the general position, and said that if the thing was good they should get some return before they died ; if the well was no good they should know it and then they could ceasa to pay calls and building castles in the air, Dr Pollen understood that the meeting had been called so that the local shareholders should have their views represented at the meeting to be held at Sydney next month, when some of the Directors would retire. He was inclined to attribute the delay to mismanagement at headquarters. Mr Barnard said he felt that the Directors in Sydney had grossly mismanaged the thing for years past. He was in Sydney a year ago and knew that it was then urged by Messrs Weaver and Scott upon the Directors to hare the well tested, and that tanks should be pro* vided, and the flow ascertained. The Directors knew that the lease was not good, and yet took ao steps to make it good until very

recently. Another thing was that a sample of oil had been sent to Mr Fleming who promised to get an analysis made, and to make a magnificent exhibit of it in the Melbourne Exhibition. Mr Maude said he had seen a special list of exhibits, and this exhibit was mentioned. Mr Barnard said it had also been pressed on the Board to take steps to utilise the oil, and this could only be done by building a pipe line, yet nothing in this direction had been done. He thought the Directors were exceedingly to blame. They had simply let things slide. He moved a resolution expressing dissatisfaction with tho Directors for their lack of energy in not having the well tested, preparations for a pipe line made, and the lease prepared in good time. The Chairman said the resolution no doubt conveyed the expression of those present. It was better than a bald expression of dis satisfaction, as it specified instances of neglect. Mr Barnard understood that at the last meeting of shareholders in Sydney dissatisfaction was expressed at the way tbe Directors were carrying out the work, and three persons were appointed to enquire into the working of the Compauy. Mr J. Bourke said he had received a letter from Mr B, Hill Fisher, of Christohuroh, enclosing extracts from a letter written by a gentleman in Sydney, which he would read. The extracts stated that at the last meeting only one Director turned up, and the shareholders present were so disgusted that they appointed a committee to take the matter out of the hands of the directors altogether. They oould rest assured that the shareholders ware at last awakening to their own interests and that matters would soon be placed on a better footing. The extract concluded with advising shareholders not to part with their shares. Dr Pollen wasglad to see that this gentleman had such faith in the well. He thought people here should send their opinion of the well, as people in Sydney were very lukewarm in the matter.

Mr Maude said it was clear that some of the Directors were not so bad as others. He was of opinion that tbe greater part of the blame was owing to Mr Fleming. It something to that effect was added he would second the motion.

The Chairman thought that would be hardly fair, as Mr Fleming, for all they knew, had done bis best when here to test the well. Mr Maude said Mr Fleming stated he would stay for six months if necessary to see the well tested, and directly he got things ready he bolted. He (Mr Maude) thought that when Mr Weaver went to Frisco Mr Fleming should have got the lease prepared. Mr Bosie said Mr Fleming stated he did not know what Mr Weaver was doing in Frisoo and if he did nnt get back in a month he would send a man to test the well.

Mr Weaver said with regard to his absence in America, at last meeting of Directors in Sydney, a resolution had been unanimously passed, in the knowledge that he was going to America, to the effect that the well should be leit intact until his return, Mr Fleming took steps in February last to raise the number of shares to 200,000, but after seeing the lease the brokers informed Mr Fleming that he had not a leg to stand on, and that no capitalist would take up the scheme. Mr Fleming then corresponded with the trustees of Bead’s estate, and also went to Auckland and undertook to bounce the trustees, but they would not stand it, and he (Mr Weaver) did not see any other course Mr Fleming oould take than to oome here and bounce the shareholders. What authority Mr Fleming had to oome here he (Mr Weaver) did not know, but from the resolution of the Directors he had no authority at all. Mr Fleming had been a sincere supporter of the company and had done all he could. They all knew the tune when the Directorate was changed from here to Sydney. They found that all the directors forfeited their own shares, only retaining enough to enable them to keep their seats at the Board. 21,000 shares were forfeited at one time. He (Mr Weaver) saw the position he was in. At that time ha was owed £l4OO. He wrote to some gentlemen iu Sydney, and asked them to take the shares. They sent over soma money to Mr Matthews, who bought 15,000 shares for them and tho balacoe he himself bought, and with the exception of 150 shares he held them now. They then ha I the Chairman of the Board advising them to sell their shares. He always had had faith

in the work, insofar that he had gone on with the work, though he had never received more than fifty pounds from the Company. When he was in Sydney he could have got 25s por share for what he held. If the works had not been good he would have taken that amount. Before leaving Sydney he got instructions to proceed with the re-ereotion of the derrick, and to make what preparations were necessary and the fresh contract would be forwarded. Finding no instructions came he proceeded to Auckland, and he then received word from Mr Fleming that the papers were in the hands of the publishers—- “ South Pacific still hanging fire ; shall be with you in ’Frisoo soon." He was to have got money with the instructions, but none came, and he then gave Mr F. Weaver instructions not to let anyone touch the well during his (Mr W. Weaver’s) absence. He went to ’Frisco. Got another letter from Mr Fleming saying " South Pacific hanging fire; will be with you in Frisoo in sixty days. ” He had a good time while he was there, but the Company did not pay his expenses. When he returned he heard what had been going on and he left again for Auckland, He understood from some shareholders that when he (Mr Weaver) returned to Auckland he would send him to Gisborne at onoc, He got no suoh instructions, and if he bad he should not have paid any attention to them. He then went to Sydney. The Board held a meeting, and the question of replacing the derrick came up, some Directors thinking that he should pay for the damage. He referred them to the contract, and on looking it up they found that after 1000 feet had been bored he was to receive so much per foot; all expense incurred through accidents to be borne by the Company. After this he got instructions to proceed to Auckland to interview the Company's solicitor about the new lease. Stayed in Auckland two weeks, and then left for Gisborne. The Board had

not yet sent him any money. He went to the worlds after coming here to see if he oould recover the rope and cplioe it to the new one and remove the tools. Found he could not get hold of the rope in the small pipes at all, so he unscrewed the 4) inch pipe for about 260 feet, leaving the 6in pipe to work in. When ho tried to draw the tools he found they were fast. Used all the means he knew of to remove tfee tools Wore cqtting the rone. Pgqple might think it a nice job, but he did not think so, Jt h»d heeu stated iu a paper that he had brought from America a slip socket, which he had left in Sydney. There was no truth at all in this statement. He had brought a rope knife from America for the Water Boring Association, of Australia, and this he had borrowed in case he should have to cut the rope. When he had to out the rope he thought it was best to spear for the tool!) before ordering anew socket, which would cqst about £3Q. The slip socket was tfieir last resort, and onqe they grappled the tools they could not let go, and if the tools would not come up there was nothing for it but to withdraw the 4 jin pipes. The spear only had jin space to work'in round the edge of the tools, and the process was consequently slow. About his coming to town so often, when he could not do anything he came to town. With regard to the papers he did not care what they said about him. If they knew as much' as He did they would not say such things. He expected the slip socket would be ready on Monday. He bad no doubt as to the future outcome of the well. Regard-. ing the resolution Mr Weaver thought it was rather premature, and would not strengthen their action. They should at any rate wait till the tools were removed.

In reply to Dr Innes Mr Weaver said no preparation had been made for receiving any oil. With that he had nothing to do. He was going to recover the tools, if possible. Mr Matthews was inclined to think, after hearing Mr Weaver’s explanation, that it would not be prudent to act with haste. Dr Pollen seconded Mr Barnard’s resolution. He thought some steps should have been taken towards getting a pipe line. Mr Maude said whatever Mr Weaver said he would be prepared to back up. He had seen a letter from Mr Fleming throwing all the blame on Mr Weaver. Mr Maude said Mr Fleming took a*ay with him the report of a meeting held here, the objo6tionat)le partial which had been struck out at his own request. Mr Smith’s impression was that Mr Fleming had deliberately dene everything la hie power

to retard their progress. He simply let things go. The conduct of the man who so grossly abused bis trust was deserving of the greatest censure. Mr Weaver was generally blamed for these delays, and he would propose a vote of confidence in Mr Weaver.—Carried unanimously. As tbe election of directors does not taka place till May next the meeting was adjourned sine die, Mr Barnard’s resolution lapsing.