PETROLEUM.

Taranaki Herald, Volume LIX, Issue 143671, 15 December 1911, Page 4

PETROLEUM.

ANNUAL MEETING. TARANAKI PETROLEUM COMPANY. Tho fifth annual general meeting of the shareholders of the Taranaki i/oiroloum Company was held at the Good Templar Hall, New Plymouth, on Thursday afternoon. Mr. C. Carter (chairman of directors) presided, and was supported on the platform by Mr. H.- J, Brown (chairman of the British Empire Oilfields, Ltd,) and hD codirectors, Messis. D. Berry (deputychairman). C. E. Bellringer. J. J. Elwin, J. Little, H. J. Okoy, M.J.k, and J. B. Roy, Mr J. H. Quilliam (solicitor), Mr. L. Keith (manager), and Mr. E. H. Tribe (secretary). There was a very large attendance of shareholders. REPORT AND BALANCE-SHEET. Tho report and balanco-sheoc. as already published and as circulated among the shareholders, were taken us read, and the chairman formally moved their adoption. Mr. •/. C. Davies seconded. Tho Chairman; I do not propose to go into the matter of the report and balanco-vsheet at all, because you have all read it through careiully. 1 expect you will all bo waiting to hoar something a little more interesting than what has been bmorc yon in the way of reports and figures. Tiu rolorc. unless any of you shareholders wish to ask any questions on the. balance-siiec-t or on any matters arising out of it, I propose to pass from it with a view of giving you an opportunity of listening to a gentleman from Homo who is now in our midst, and who has some important things to say to you.—(Applause.) Air. James; I would like a little information wliich is not given in the report, and that is in reference to the amount of oil wc have in stock at Moturoa at tho present time, i have an object in asking this question— Tiio Chairman: This is a matter that 16 dealt with in the manager’s report. No further questions were forthcoming, and the report and balance-sheet were unanimously adopted. MANAGER’S REPORT. Mr. Keith’s report was then read as follows: December, URL ‘lo Chairman and Directors, Taranaki Petroleum Co., Ltd. Gentlemen, For your inionnation I have the honour to report on Die various bores of your company as follows-; No. 2.—The No. 2 well lias been, and is, flowing oil from the date of my last report, or nearly two years, without the quantity varying very much. The yield from this well has been 90,615 gallons up to September 30. 1011, but up to date it is about 103.000 gallons. No. 3.—From December 31, 1910, to June, 1911, I have deepened this bore from 32Goft. to 4020fc.. or 75-jft. deeper. From the latter date this well has flowed nearly continuously at the rate of 38 to -10 barrels per week. No. s.—From .December 31, 1910, to date we have sunk this bore 1803 ft., or, with 217 ft. previously done already, a total depth of 2020 ft. Several attempts, not as yet successful, have been made to shut off water, but I hope to do so shortly. I had nearly succeeded, when the bottom length or 5-inch rasing showed such a faulty condition that 1 had to pull the whole .string, and am now' putting it back with all made good. The oil in stock ai September 30. 1911. is 218.947 gallon',, plus oil used as fuel during the year, 12,219 gallon.; —total oil 231,166 gallons, loss on hand September 30. 1910, 91,501 gallons. Total won for year 139,615 gallons. I am, Gentlemen, Yours faithfully. L. KEITH. Questions were then invited on the manager’s report. Mr. James: I do not clearly understand wh it quantity of oil is in stock at tho present time, or up to the date of the return. Mr. Tribe (secretary): "When wc took stock on September 30, 218,947 gallons of oil were in stock. THE DIRECTORATE. The Chairman said the next question the aharcholdcrs had to consider was one concerning tho directors. First the shareholders must determine the number of directors—and t hope and believe their reign will bo a short one. Usually tho number has been seven, and it will also bo necessary for you to elect two directors to-day. 1 should be glad of a motion first fixing the number ot directors. Mr. TVybourno: I move that the number be seven. Mr. IV. Embury: 1 second that. No amendment was forthcoming and the motion was carried. Tho Chairman : 4Ve will now proceed to the election of two directors. Messrs. H. Okey, M.P., and C. E. Bellringer are tho two retiring directors, and thoy offer themselves and arc eligible for re-election, having given tho requisite notice as provided for in the Articles of Association. These are the only two who have given the necessary notice, and ns the time is past for receiving further nominations I declare Mr. Okey and Mr. Bellringer to be TO-electcd directors of the company, DIRECTORS’ HONORARIUM. Mr. L. Griffiths said; I have very much pleasure in moving that the sum of £250 be paid to tin* directors by way of honorarium for their services during tho past year, this sum to be divided as they may think best. The work that has been done by the directors during the* past year has been of a very important nature, and that they have carried out their work successfully wc all believe to ho correct. J have moved that this sum bo voted as an honoraiium, not as payment for services rendered. In the latter case it would ho difficult to suggest what would bo a fair sum to pay them, for wo have on tho directorate a number of tho leading business people whose rime is very precious to them, and yet they have devoted an enormous amount of time to tho work of the company during tho past year. For some timo they have attended one meeting each week, and on some occasions two meetings a week, and, in addition to that, for a long time one of the directors would go down to the bores every day to see that everything was going on satisfactorily. This*

is merely a small recognition of the good work thoy have done during their term of office. . • . Mr. D. M‘AlUim: I have very much pleasure in seconding that. There was no amendment, and the motion was carried unanimously. Mr. Tarter; On behalf of the directors I thank you heartily for the vote. AUDITORS. Mr. J. O. Davies: I have, much pleasure in moving that Mr, IT. Daily and Mr. C. T.-Mills be reappointed auditors lor the ensuing year at a remuneration of £l2 12s each." These two gentlemen are two of the, most competent men in the town to’ hold such a position, and 1 need mu add anything in support of my motion. Mr. James; I beg to second that. Carried. LETTER FROM MR. J. D. HENRY. Mr. Carter: L there any other business any shareholder would’like to bring forward before we proceed to give a report of what transpired whilst in London ? No questions were asked, and Mr. Cartel' r;.i;r-d upon Dm secretary to road a. letter received from Mr. J. D. Henry. This was :v; follows 4 Rendon Wall Buildings. London. E.C., Oct. 18, 1911. C. Carter, Esq. • Dear Mr. Carter, —1 am thinking tonight. l!i-' eve of your departure for New Zeai.eM. that you may he pleased to take a bid A message of goodwill^and eiuvurag.uncat to my many friends in New Ply!•:;nth. Before telling you what I would like you t;> cay, 1 d'Mrc to eenoratulaU* van on the splendid r.ucee'.s o: your work in London. Sneaking on behalf of my bu'dnes.H culm-agues. 1 can with confidence say that the most healthy pud encouraging leeiiag u* optimism, which exivhj on every hand in connection with the New Plymouth undertaking. is in a large w.v t:i;: to tho courteous, considerate, and able manner in which you have taken part in the negotiation;-. I cur colleague*- ir, New Pivinout’., i nro Mire will net.require to bo*told that you have represented them in the Old (.Vuntry with all the buDness ability and tact they yover fail to acknowledge yen have always shown at chairman of their old company. Your London experk- me will henceforward he of iuunwiso service to these who haw ;o loyally supported the industry in ibe pa-ny and when, under tho new regime, your oil frier,ds become prosperous, and worM-famoua. 1 cannot doule i\-. v t your work hero, -?nd your knowledge of tho London end of. the Inr ijv’.sM will nssirt materially in bringing us ranidly to the time when every shareholder in Now Zealand wßi be proud of the fact that he ha* remained true to, and stood staunchly hy ; the oil industry of New Plymouth. Will you then do me the great kindnew of assuring the directors and shareholders of your old company of.my devotion and loyalty to the oil industry of New Plymouth. There .is nothing hyperbolical about the statement that the Old Country has i+* eye on the oilfields of New Zealand. 1 have done my best to carry out the promise that I gave to you. to gain for it the position it deserves to occupy in the estimation and good opinion of the English people. I hope: tlm success you will now have at the wells, and with the refinery it is now proposed to erect, will he solid recompense for all the sacrifices which have boon made by the many faithful oil men of New Plymouth, and give those who take an intore; t in the new undertaking a substantia} and permanent return on their investments No memories connected with my vioits to oil fields are more pleasanr. or can be more enduring, than these •■■hieh are ;nv.ociatvd with my stay in Now Zealand. If there is anything that will increase my appreciation of tlm exceptional kindness shown mo hv the people of New Plymouth, it will be the news that you have been penally warm in your roeevdinu of my friend and colleague, Mr. FT. J. Brown. Yours sincerely, J. D, HENRY. The Chairman mentioned that Mr. Henry was now on his way co New Zealand. MR- CARTER'S ADDRESS. Mr. Carter: I now to give you a rc.ord of what has taken p’ace whilst I have been in London, but I think owing to the very important nature of the statement 1 have to make , that it is desirable that it should- be in the nature of a report that can bo road. Therefore if you foe] it in any way dry. which, by the bye, 1 do not think you will after all the dry aiatlor you have had to listen to during the lust two or thre»* months —(laughter)—I hope you wiP excuse me. Mr. Carter proceeded: Since Die Inst annual meotin.g very important developments have taken place in connection with your interests and with the oil industry of Taranaki generally. Probably the greatest is the interest shown by English capitalists and oil experts. Early in tho year Mr. J. D. Henry, n gentleman with si great reputation, both as un oil expert and literary authority on oil matters, was asked to visit this district on behalf of the British Empire Oil Trust. Ltd., and he devoted tho groatec-t part of his time in inspecting our properties and the oil bearing territory of Taranaki. It is unnecessary for me to mention how highly ploaeed and enthusiastic he was regarding tho prospects of the industry in these parts, for through the press and in other ways lie made this known to everyone. Then as soon ars ho returned to England he published a work entitled, “The Oilfields of Now Zealand/’ which must be regarded as one of inestimable value, containing or it does a complete history of tiro groat fight to nun oil in those* parts. This book islands as a monument to those who have been responsible for the groat work done in the past in connection with oil, and is a credit to tho author. It cannot help but have the most beneficial effect in England and foreign oil centres. As a result of Mr. Henry’s investigations and impressions, he, acting on behalf of his principals, the British Umpire Oilfields, Ltd., entered into negotiations with your directors with a view to purchasing our intercMs. These ended in an offer being made, and a request that a representative of your company should immediately proceed to England with full’power to act on behalf of the company. Tho directors, with that consideration and confidence they had always shown mo since I have been chairman, a. c ked me to at once yrcceed to London to act on their behalf. Realising the groat importance attached to tho introduction of British capital and British interests, 1 willingly acceded to their request.

ARRIVAL IN LONDON. ) ; On arrival in London I found Mr. Henry absorbed in.the completion of his i book on New Zealand Oilfields, and Mr. H. J. Brown, chairman of the company, for whom Mr. Henry acted whilst in New Zealand, busily engaged in floating the large company known as the Carpathian Oil Company. Business, ' I found, was l considerably upset as a result of the dock and railway strikes, and international complications arising from the Moroccan difficulty, Tho Stock Exchange was demoralised, and j the financial institutions were affected i by the uncertainty of what might transpire in the event of a prolonged period of national differences. DRAFTING THE AGREEMENT. As’soon as the way was opened, we proceeded with the drafting of the , agreement. I realised how important j it was-to safeguard every interest of \ oui' company and to ensure inclusion of j every point of advantage to our share- 1 holders, became whatever was done had . to he done then, as it was impesnldo ~ to have any variation of the tern:', , made when once the agreement was j ratified. In other words, what T agreed | , to them, on behalf of my people, had ! to form the basis of all future ncgvtm- j tionfc or dealing in connection with the company that was suhscouently to be ; floated by the British Empire Oilfields to work our oilfields. In this I hope yon will find I have succeeded. TERMS OF THE AGREEMENT, i Von are already in possesion of in- | formation as to the purchase pric-\ t :w-a:-gk. ITIH.idU nhr, an extra .VNtM : on account, of No. 5 hare. At tin-;; | junctu: e T . ought to explain to | you ihat even in the state of uncon ir.ty o: the financi..]. maikct in 1 England when 1 arrived there, that lie? : gentlemen with whom wo had_ oecr. 1 treating had no he::ltalian in signing i the nureemeni and paying down the * I’LTKVr winch the* had am :-'d to do. | Further. since Mr. Brown _ arrived _ in ; this Dominion and ua-pe. ted the wells, | they have absolutely nivil iho pilin'; j tint t is. that t hi:, LNb'UO tlc/Uld not be an open rpnxDqn. the people at yon end. c.pcciaily the , underwriter:.. who were woiUv-ng on Dus ; matter, muct have an al.\v.:!ulc mM : finite price, mid therefor#* your directors A.-day have arranged the purchase price m. £JOYO9J, time making nho- , Iv.teiy ci-rcaiu of getting £-VXv No. j 0 well. This give:; addiD' nal evidence , to the ccnclnrions formed by D;:.->e treat- ; ing for our interests. r i he agreement ; pre'.'idos for a capital :.*f .’.To- ; virion has been made cut of this *um ' to pay purchase money, provide for fin- , tr.ticn expenses, and l r :nc a tim .dij- i ficient for adequately working the industry, namely about £220,030. it is I also provided "that the minimum sub- I scription upon which the company may | proceed to allotment uhall be such an j amount ns will ruirice to provide the | each portion of t lie purchase price, pay- j able to the vendors, and all the pro- | iiirinary expenses of the company. The I British* Empire Oilfields Limited are j also undertaking to underwrite suffi- J event shares to enable the now company | to nroceed to allotment. The following provisions arc also in-* oorpornted in tno agreement: That any new plant purchased after Juno J. 19.11, is to be paid for by the new company; that preliminary costs and expenses (including my own expenses to London) he borne by the now company; that the Government be paid to the Taranaki Petroleum Company, up to the time’of completion of sale; and that the new company purchase ail oil stored at -Id per at date of com- | plotion of sale. The agreement further controls promoter.*’ interests and limits flotation expenses, defines the lines on which the new company is floated, so as to comply with "the terms of the agreement, and also provides for the coinpletian of purchase. i In connection with the latter, T may I state that the time has been exrmidixl ] to January 31. 1012, which was foreseen before I toft London, and Mr. Brown left fully knowing that the agreement would have expired prior to his arrival, hut was confident that wc should act fairly. ERECTION OF A REFINERYProbably the most important desideratum in connection with our industry is the establishment of a refinery. 1 might, mention that the policy or the new company will not only be out in hand immediately the work of -unking further here holes, hut to erect a refinery to deal with’ the oil already stored and' that which wc, are obtaining. 1 might say wc hare now in hand over 300.000 gallons. THE QUALITY OF THE OIL. It is very desirable that the oil should be refined rather than that it should be sold as it has been in itc crude condition, as analysis has shown it to no the richest oil in the world, not excepting the Pennsylvania oils, which it surpasses in hv-pioducts, especially in that of wax. the quality of which astonished the people to whom it was sent in England for analysis. Even our London principals wore amazed at the quality of the oil. It is certain that with capita), skill, and experience that will now be available, the imlu-iry will no an unqualified success, and load to developments unsuspected by the most sanguine of those before mo to-day. POTENTIALITIES OF THE INDUSTRY. My recent trip Home hues conclusively proved to me the potentialities of the industry in our midst. Petroleum i$ the fuel of the’future; nay, it is the fuel of the present, and if wo ran guarantee supplies there is not the slightest doubt that wc. can get sale for all wo can , produce. Shipping companies operating in the Atlantic Ocean are at a great disadvantage at present in regard to fuel, so are the companies operating to and from Now Zealand and Australia, and instead of paying the cost of getting coal to different stations, they would gladly turn to oil if it could be got in sufficient quantities. 1 am just mentioning this point in passing, for, as 1 have, said, our oil is altogether too valuable- in its elements to sell In the bulk, though it might he possible to I extract the most valuable properties and sell the residue for fuel purposes, as was suggested by the railway authorities of this country after the very successful trial was made over the Rimutaka mountain with our oil. AN IMPORTANT STIPULATION. But I am getting away from my subject. When 1 reached London I found that in the flotation of companies tho gentlemen that had to bo taken into serious account were the underwriters, and that they did not give their services to tho public for nothing. On the contrary, I found that they required

and received handsome remuneration. It occurred to mo that it was but a fair proposition to stipulate that if our own shareholders were desirmiH ol taking interests in the new company that this underwriting consideration should be extended to them. This was agreed to after considerable negotiations. This represents a concession to our shareholders of between £SOOO and £6OOO. This aspect will be fully dealt with by my friend Mr. Brown, who is with us to-day. I would only add here that I was able to arrange that a proportion of the shares in the new company should be offered in New Zealand. i FINANCIAL INTERESTS IN LONDON. Financial men in London arc not to ; be caught nowadays with lifeless propositions. They want something particularly good and attractive, and it is well for’mT that wo have flowing wells and the record of progress for the past few years, otherwise Louden could nob nave been induced t-o look at our proposition. I can snv this with confidence that they arc fully satisfied with the possibilities of the Taranaki field and of the great opportunity when tho refinery is erected, of being able to supply many of New Zealand’s requirements, without mentioning the supply of oil for naval purposes now obtained from foreign parts. THE LONDON PRINCIPALS. Now I come to tho London principals, and it is my duty as your representative to give you my impressions ot them. I might mention for a Mart that I am very pleased with the whole group. Mr. Hour-', who is one of the many advisor* to the Oil T» ust and the British Empire Oilfields, some of you already know. .Mr. Brown is bore and lino U'-cn amone/.t us for the past ton days. I . know’hi-s reputation and high standing in London, and would like to mention some of his associates, men who will be our .'x'esoeiatca. (mtso there is Sir John Harrington, who has renresented the British Govon rent dinlomnticnlly in more than mo country, and, although cempara--1 tivelv n now man to oil, hne taken it up r-.n thoroughly that in a very short , time 1 anticipate ho will he considered one of London’s h-g oil men. There is | Mr. Oswald governing director of Nettlofold and. Sons, of ecpuv Dime, wliich you probably all knew in connection with one cl the great indu?i trial bu'sincs'wv. of tho Mothc r Country. ; There is Mr. E. T. Boxall. chairman of the Premier Oil Company in Galicia, •Do chairman of other Galician oil mi- : rallies, renresenting the output of rrar--1 De-.1/v half tho oil on the oilfield of | Bcrislnr and Tmtaniwicc. Mr. Boxall I :r; '■•no of London's foremost oil men. | There is a Mr. Leonard, a director of | Leonard ana Go,, tank steamer owners. | This firm was the first English firm to 1 adopt tank steamers for tho carrying jof oil. Then, among many oilier names j I might mention, there is Mr. Charles j Perkins, of tho firm of Perkins, Maonin- | tosh and Perkins, oil well owners in ] Galicia, having largo works for the inanufacturiug of oil tools and pla.t connected with tho oil drilling at St. j Albany. England. The Army is represented by General Sir Reginald PoloCnrcw, ono of the mo6t famous Generals in the Boer War. So that I think wc may congratulate ourselves in not- only being associated 1 with oil men of tho first degrc':, but with some of the leading lights in commerce, diplomacy, and strategy, all alike useful in starting n now industry. One cannot have boon in London so long ns I Ivor, and spent r >o much time in Mr. Brown’s office a* 1 did, without seeing the stamp of man that was constantly coming in and out. I formed a very high opinion of these men. and have nothing nut praise for the way in which ihev met and treated me with regard to aU matter* of business. I am quite confident about their akihty to carry through what they lr-ve undertaken. They have already cauyv-ttcd 1 themselves to an expenditure cl about i £IO,OOO in preliminary expenses. Thoy arc hard-headed, shrew: business men, who arc not likely to themselves to an undertaking of this Lind without seeing their way through :t. but they Lave their ideals,- and one of these ideals is the development of oilfields within the Empire, hence their strong interest in Taranaki oil. Thoy are in touch with geologists, drillers, engineers, and expert analytical chemists. They know* all about the latest and most un-to-dato machinery for oil boring, and’have a perfectly organised office for carrying out all these important matters. Mr. Brown, for instance, is chairman of a company operating in Russia which is manufacturing every article required in drilling operations. Mr. B. Simpson, the managing director of tho British Empire Oilfields Ltd., and with whom I practically carried on all my negotiations, will be intimately ac'soci’ated with us in the future. His whole heart and soul are centred in carrying through this undertaking and in developing of the Taranaki oil industry. WHEN A START WILL BE MADE. It may be asked, “How is it that with yoiir confidence in these English people to carry thr- gh this concern, thev did not compleM the purchase hy the*3oLh November?' 5 To this I would point out it was. impossible to do so owing to the impossibility of reaching New Zeeland in time, and. further, all documc 4 - s were not available when we arrived. Tho turmo'ii of the elections r.fterwards prevented the hoVvng of the meeting of shareholders bc-cve to-day. Further, it was inopportune J :n place a proposition of this kind or. the London market, disturbed as it was r.t the time by European complications. I would draw your attention to the fact that wo can call upon the British Empire Oilfields Ltd. to pay £SO,(XX) in cash for working capital, and £50,000 to the Taranaki Petroleum Company, in payment of amount duo on Die purchase, hut that is not our primary object. tVc want the oil industry of Taranaki organised, nun in order to organise it, wc want tho help of these people. Bad times on the London market have prevented the issue of any’ oil companies. and knowing the position of this group, and 'their capability of finding money, and in order to have their interest in ns for all time, I and rny co-directors have thought fit. that as regards the agreement we .would not press for its immediate fulfilment, as it would bo decidedly in our interests to obtain all the working capital required. rather than force their hands t-o make an issue when financially London was unnerved owing to the unrest previously referred to. CONCLUSION. It will be in the memory of shareholders that at a meeting called for increasing the capital of this company, your directors urged as a safeguard. in tho event of our disposing of tho property that we should mnko our position unassailable by increasing tho

capital. It was well for the shareholders that that proposal was adopted. At tho -same meeting the following statements were made, namely, “liiftt never in the history of this company were the prospects bright and never so much oil in sight also that increased capital put into the industry would moan increased population, incrc-cd value of properties, both town and country, greater labour facilities, and opportunities and greater development oi our port.’’ At this very interesting juncture of events, and with a further knowledge of what has taken place, and what is taking place, I can only say that wc may retract nothing that was then said. I would, with greater emphasis, rc-affirm the conviction that we are on the eve of most important developments. developments that must put our town ami district in the front rank of any district of this Dominion. Interesting as has been the progress of petroleum in Taranaki in the past, oven more interesting and jar greater developments may be expected in tho near future. Eventful as this Empire year lias been that is now drawing to a close, and full of history as it has been, there is no event that has taken place in the whole period that is more momentu-s to us in this community in this Dominion, than the introduction of British capital and _ British interests to develop our oilfields. MR. BROWN'S ADDRESS. In introducing Mr. Brown to the shareholders. Mr. Carter said; There are many duties that come in the way of a chairman °f a public company, some the reverse of pleasant, others of a pleasing nature. 1 am to-day iu the very happy position of introducing to you a gentjeman we)! known in London oil circle--, and whom 1 hesitate not to say wid he as wc-;j and as favourably known to us in Now FI)mouth and this Dominion before returning, to London. , I refer to Mr. H. J. Brown, chairman of tho British Empire Oilfields, Ltd It- is indeed fortunate, for us that Mr. Brown is with us to-day, and that already he has had an opportunity of seeing for himself what most of the well-known expert* have previously seen and declared in regard i-o the parable oilfields in and around New Plymouth, and Mr. Brown has abeany expressed himself in confident terms as to our oilfields, ami you can take it from me that that opinion not been lightlv given. Air. Brown has been acquainted with developments here tor n considerable time, and I think I am right iu .saying that it was AD. George Adams (one of the foremost geologists of the dav) who first tried to induce Air Brown to interest himself in New Zealand (Taranaki iu particular), though at that time Air. Brown was unable to take any active interest The determining factor of Mr. Brown’s visit to this Dominion, howovor. was one of hoalth, or shall I say. ill-lioaltli. P.ia niodi'.-il isor oas prescribed a most diliicult modicum »or a busy man to namely that of change and rest. The strenuous and exacting demands made upon Air. Brown’s strength by the many companies with which he is associated in the management, made change and rest absolutely necessary, and I am sure that- ymi* .with myself, will commend his wisdom in socking to recuperate , in this beautiful land of our adoption, a land which ho designates “A wise man's heritage.” Mr. Brown, on rising to address the mooting, received an enthusiastic reception’. He said; It gives mo a great deal of pleasure to meet Die sharoluildors of the Taranaki petroleum Company with whom mv London colleagues. and* 1 ere to be associated in Dm future working of your oiliiolds. I should like to say that I am pleased indeed to attend a "mooting presided over by my friend Air. Gancr, who, I must tell yon at the outset, has rendered you loyal and successful service in the inctiopoJD of tno .Empire. La;or on I shall hope *o give you some particulars of tho work he has accomplished as your representative in connection with negotiations which, if they have been difficult, have never hern unpleasant, and will No found, as time goes on, to have beer, of immense service to your company. the town of New Plymouth, and the oil industry of Now Zealand renerally. Both Air. Carter and Mr. Henry assured me before 1 left London that I should be most kindly and favourably received on my arrival in your country. > Although 1 have only boon in New I Zealand a short time, I realise I they meant when they made this lore--1 east. Thoy told tno that I should find 1 the Government, the press, and the I people loyal to the petroleum industry, 1 and I Had their assurance that Die | people of Taranaki, in a higher degree j than those of any other centre of tho 1 Dominion, appreciated to the full the | immense benefits which must follow j the skilful and rapid development of ; your oil proportion and the conversion | of them into a profit-making asset in I the industrial Lite of this part of the 1 Dominion. I Ladies and gentlemen. I am most 1 hopeful that as the result of this most | happy and successful combination of j financial and petroleum interests in the j Old Country and New Zealand, one i place will benefit above all others, ami i that is the place which ought to benefit the most—tho town of New Plymouth, whore the first strike of oil in New 1 Zealand was made, and where we arc ; to work together in the future. A PERSONAL CONFESSION. I should like, before I pass on to more important, subjects, to make a personal confession. Up to the time of leaving England, I had not made quite ns close a study of the New Zealand oil question as I should like to have done. When the company with which I am connected was first induced to take a keen interest in New Zealand oil. I was engaged in handling important matters in one of the foreign oilfields (Galicia), and. as Air. Carter is aware. I left for New Zealand less than three weeks after I had returned from Orosny, another foreign oilfield, and one of the most important in Russia. Consequently I did not start my trip quite so fully equipped as 1 should have liked, though, of course, as managing director of the Oil Trust, Limited, and chairman of the British Empire Oilfields. Limited, it had been my business to keep myself au cournnt with the happenings in your field, but for all that I was. so to speak, not so personally in touch with them. Fortunately for me, however, your chairman. Mr. Carter (the soul of patience and courtesy), never tired of my ceaseless questionings and hunger for information, and, further, thanks to the book written hy my colleague. Air. J. DHenry, “The Oilfields of New Zealand,’’ I am pleased to say, and you may be interested to know, that the more I learned of tho New Zealand oil

subject, the more firmly i have become convinced that wo are about to be engaged in the important work of fostering the growth of an industry which will benefit us all financially and do the Empire a real service. 1 venturo to think that a certain amount of good has already been accomplished. We in London are no longer ignorant of the hinlory and possibilities of your industry and of the aspirations of your directors. Mr. Carter, who has represented you in London, lias been able to obuiin a knowledge of British company and financial methods, and the people of the Mother Country, as well as the people of this Dominion, thanks to the press and Mr. Henry’s hook, can no longer honestly doubt the wisdom of proriding ample finance in order that a thoroughly up-to-date equipment for a full exploitation and operation of the oil properties near this town and district may bo guaranteed. But tlm.se benefits arc small compared with the great results some of ns confidently believe will be accomplished under the new regime; and in this connection I have only to assure you that your London directors and colleague.'; are now putting, and will continue to put, a great deal of hard work into this undertaking, not only because they anticipate a large measure of success for the English shareholders, but because they admire the manner in which those connected with the enterprise have persisted in their work, and, further, because they believe it -would not bo possible to make a better combination of London and colonial oil interest r; in any part of the world. i have nothing but praise for those who conducted the preliminary negotiations. and should like to take this opportunity of thanking your rhn.rmnn and directors for the fair and courteous manner in which they have bundled the business from Mart to finish. "WOMEN AND OIL. I think I should be negligent if I were not to say how pleased I am to see some ladies present at this meeting ic-day. It may bo of interest and of some satisfaction to know that in the history of oil, woman has played a disting.pdiod port. For instance, in the stnxe of oil in the famous oilfield of •SpindKcop, it was Mrs. Lucas who urged Colonel Lucas to go 6ft. deeper, and this extra footage led to the discovery of the greatest gusher in Texas, it was Madam Selitronnikoff who was responsible for the selling cf the gusher territory to English capitalists in Mtkop. Another lady, after having parted with nil her jewellery, at Inst obtained a loan on the security of her wedding ring in order to provide the means to enable her husband to drill a few feet further into Mother Earth, and these few feet wore the means of bringing in the first gusher in a Held which is to-day one of the large oilfields of the world. It is a happy augury for us, and I hope that we may still have more lady shareholders in the future; 1 am sure wo shall, for I can assure you that the woman of England is taking a .great interest in the oil business as well as ‘‘mere man.” PROCESS OX" OIL-GETTING. Now. with regard to the subject of oil-getting, it is a very striking fact that the early history of nearly every oilfield in the world reveals, in the fin-t operations undertaken, an extraordinary amount of unscientific method, and a considerable lack of knowledge, and the stigma that has been laid on the oil possibilities of nearly every field has not yet been entirely removed. It is quite natural therefore that people with a desire for an investment in oil enterprises, while having these early failures ‘ in their minds, should be sceptical as to what the results may be in any, so to speak. ■ new field. You in New Zealand, and 1 more particularly Now Plymouth, have, i as is said of perhaps our most uccessful and certainly most honoured sailor of the past, “put your telescope to your blind eye'* every time the word failure has been whispered to you, and have gone steadily on, thereby showing more bulldog pluck in sticking to Moturoa than has to my knowledge been done by the pioneers in any known oilfield. Yon have backed your belief time and again, though borc-holc after bore-holo Inis resulted non-payable. Speaking broadly, you must not consider tliat one of those* non-payable bores is wasted time, or that the money spent thereon is wasted. They arc the natural sequence in oilfield development, and the;; have collectively given experience and knowledge far more than is apparent, and which after all arc the most needed conditions in an undertaking of which jou mou and women of New Zealand have every right to.be justly proud, and for which vou are honoured all over the oil world. Now it is only time and the drill that will determine how great an undertaking. Personally speaking. I am convinced as to the ultimate objects to be achieved given scientific and practical management, and I have no doubt it will eventually provide the basis of a largo, successful, and profitable industry. Prior to coming to New Zealand I had read reports of your field, and discussed its possibilities with many oil experts and geologists, and in every case they foreshadowed that you had here the'possihilitics of a great future, though acknowledging that in the past many great mistakes had boon made, and the plant used primitive, and possibly not the most editable to the lecal conditions to be encountered in drilling. Tliis brings into prominence the very important point which, to my mind, is not sufficiently known to those mterosted iu oilfield development. The prevailing idea, amongst, at all events, investors, and too often, I am ;*orry to say, amongst those who operate oil properties, is that the strata to be drilled through to. or in connection with, oil, are the same in every field. This is not by any means the case, and it is well known amongst these who understand the technique of oilfield development that there is not only a very groat difference in the various oilfields of the world, but, even in the same field, there is often a considerable difference in districts. Thus the first boreholes put down in a new field must be to a great extent experimental, and not till the strata are thoroughly understood and noted, can work bo successful and profitably carried out. Those who arc interested in the opening up of now oilfields, especially the ordinary shareholders, must bo endowed with a large amount of patience, but it is better for them to have some knowledge of what the development means, while those responsible for the management should first take into consideration the geological indications, for, rightly or wrongly, it is my opinion that without so doing, it is impossible to fairly estimate the possibilities; and tho drilling of borc-holee in the most favourable positions may only then bo determined —until the conditions and

description of the strata are to a largo extent understood, it is impossible to carry out drilling work expeditiously and effectively. Even with the greatest care and forethought. wells are drilled and fail to “come in,” but when a well does “come in,” and a good producer is struck, which it is bound to do if the beforementioned conditions are followed with an ordinary amount of intelligence, the result is all the previous failures are forgotten, the expenditure wiped out, and a surplus placed to the credit account. I feel it is essential to reiterate these points, although to many of yon they arc well known, so that shareholders may understand the facts in regard to the opening up of a new oilfield. Large and small fortunes have been made out of oil, arc still being made, and will bo again, the only requisite necessary being efficient and well equipped experts and engineers, a sufficiency of working capital, and a little knowledge and patience on the part of those interested in the industry. COLONIAL OIL DEVELOPMENT. A very serious movement in the dc- 1 rolopment of colonial oil has spread over Great Britain during the last year or two. This is largely due to some few determined and public-spirited men such as our mutual friend, Mr. J. D. Henry. He neither spared himself, Ins time, nor his pen, in order to demonstrate to his fellow-countrymen the allimportant fact that the British Empire was, in the not very distant future. without the wherewithal to live, for, in order that an empire may live,, such empire must be prepared for war, and to be prepared for war entails that every unit or the I'igbiuig force must be fitted with the “best obtainable” m its own particular part or section. The one that perhaps interests us most hero to-day is perhaps that of fuel—a by no means unimportant part of the equipment of modern ships. It is not for mo h?re to discuss the relative merit of coal or oil. It has already been done by our naval experts;— and the one found wanting in merit, the other wanting in supply. Now*, wo in this building think, I believe, that we can, as time goes on, do our little quota to remedy this latter, and I maintain that outside of any personal gain, it is our duty to help if we can to safeguard the interests of our country. In the days of Nelson, when our Empire’s refutation was made by the aid of old wooden walls propelled by wind I and sail, we found the men that proved themselves the best sailors in the world. Later we built our ships of iron and steel, and our sailors were able to hold their own and their country’s reputation by the aid of steam, lor had we not the best steam coal in the world? To-day, though I still believe wc have the best sailors, we have not the means within our widely spread Empire to propel our ships according to modern requirements, and without it, of what avail are our sailors and our Dreadnoughts? Ladies and gentlemen, it behoves ns to do what we can to remedy this evil. For because our rulers consider that we have no need of conscription, they do not say that we have no need to car© for our country’s welfare—that country which has given us so much, and of which we are so justly proud. The question I used so often to ask myself is: “Can I do nothing to remedy this groat defect in our armour?” The answer always forced itself on me; “Help develop our oilfields.” What matter where they are or how far distant? We are all members of the same body—that which is good for the part is good for the whole —and in so doing we shall once more be helping to cement the union on which the British Empire has been built, as well as acting as honest trustees of the honour and reputation left us by our ancestors. When I gave up the business that 1 was connected with lor many years to devote myself to the .subject of British Empire oilfields, there was practically only on© part of the Empire producing oil to any extent, and that was Barman, and Burmah, were we to go to war v-ith any great nation, would have been the only country wc could draw supplies of oil from, and you can depend upon it that would be* well looked at ter so far as foreign battleships were concerned, and our export pf oil would bo stopped if that were possible, for most of it would have to come through the Suez Canal, which you will readily see would be difficult. If this supply was cut off we should be placed at a very serious disadvantage. Without developing those oilfields away from th© Old Country there was no chance of England getting oil'in time of. war. It was about this time that Mr. Henry had prepared to go to Trinidad on behalf or th© Government to report on the oilfields there, to be followed by Canada and Newfoundland, and it was largely due to his reports as to the indications in these fields that the blood of some of us was fired, and we determined to devote a good deal of time to the development of the oilfields there. This brings me to a period in oil history which I would sooner have left out, but I think 1 should not- bo doing my duty if I did not mention it, as it will to some extent account for tho apparent lack of sympathy that has up to the last year or so been shown by London towards colonial oil develop- ! ment. A SET-BACK. Unfortunately , the subject of oilgetting was but little known in England, and the experience of oilfield development almost entirely unlearned. Consequently many pioneer oil men, who had not had the experience or had not seized the opportunity of obtaining their initial experience in foreign oilfields, or associated themselves with those who had, though carried away with enthusiasm, wore misled, or miscalculated the enormity of the business they had undertaken in the discovery of oil and the development of an oilfield. Many enterprises started to develop the colonial oilfields were doomed to disappointment, and investors—l am speaking of London investors—lost tlicir faith and their interest in oil and this new’ business for such it was to the majority of Englishmen, was practically tabooed and those starting off, as I might, full of hope in the future, lost the money they had put into these undertakings, because tnry had done to a groat extent what had been done in New Plymouth. They had directors who had never scon an oilfield, they had mechanics who applied for positions as drillers, they had men who had no education at all in the way of mechanism looking after their machinery, so that London had not shown that interest in oilfield development which it would have done had it been started hy people who knew their business. During the past two years, however, things had changed, and London had been nearing its money into foreign oilfields. I think

j I am right in saying that last year eighteen millions or money was put into foreign oilfields, most of it going to the Maikop field. It did not strike them, however, that instead of going into foreign countries this money should bo helping in the development of those j- figuratively speaking, nearer home—those o t Now Plymouth* for instance? But as I said previously, the cycle is changing, and although London will be careful next time where it places its faith and its money, it only wants leading, and once that lead its crjr.en; there will be no niggardly ! paving out. Already over there they I arc looking towards New Zealand, and i I am anxious that New Zealand snail i be the land to which no one down yonder can say, “I lost 10s before I made a .sovereign,” but that he will be able to point to it as the field always honestly worked in its exploratory days | and since, by men of experience and j knowledge who knew what they wanted | and intended to get it. | STARTING OPERATIONS. [ In order that the aim desired by I all of us shall be reached as quickly ) as possible, it is intended to send out I here to Taranaki the best geologist that can be found, accompanied by ( 1 some experienced drillers and mechanicians used to oil drilling plants, 1 the first to determine the fields and* locate the best drilling sites, the second to run a straight hole, and the last to see that the boring tools are. the best tempered possible. In words, the chief essentials in oilfield development are to be of the best that 1 man can find. The geologist will take I a little time surveying the land. He | can’t do it in ten days, lie will probj ably be three months. When tue , geologist has surveyed the territory . i and formed his conclusions, he will ! select drilling sites, where derricks will be erected, and drilling put in hand. Probably 6 bore holes will be drilled at the same time. Some will be continued to a depth of 5000 feet, never mind what oil is met with en route, but as test wells; for without such, no one can definitely say what quantities of oil are in store beneath our feet. The knowledge to be obtained from these “test wells” will be invaluable, not only to ourselves, but to all New Zealand, and when the knowledge has been gleaned, the casing will bo pulled, and wherever payable oil has been passed through, the casing perforated, even though there be three or four horizons, and the well put to pump, so that the wells drilled for knowledge will degenerate into wells drilled for gain. THE REFINERY. While this drilling is proceeding, the final tests will have been mad© as to the refinery process most suitable, and one unit will be erected, to which can be added as many more as may be required for the oil we may have to refine, whatever the quantity. In the selection of a refinery plant there ar£ many things to consider, *• the chief, from the shareholders 1 point j of view, being the one that will give [ the largest returns. We must also ) consider that we may be asked to refine oils not produced by ourselves, and we must pay careful attention to the most valuable of BY-PRODUCTS. One that comes into my mind at the moment is obtained from that which is left after the lighter and more valuable oils have been extracted, and more especially to oils having an asphaltuni base. In one field in which my company are operating, the so-called residuum or considerably the larger part of it, is actually more valuable than the lighter oils, and there is a growing demand for the material I allude to. You will know that the question of road improvement is one that is absorbing the attention of road boards all over the civilised world, and it is a subject of which wo also must have - some little knowledge if we are to obtain the best results. The “road boards” want a road suitable for rather different traffic from that which our forefathers desired. Today we have the traction engine and motor car, both of which disintegrate the ordinary Macadam road, thereby creating dust. The action of these new vehicles destroys the foundations by allowing water to penetrate, thereby j destroying the “mud binder” and cr©- ; j ating dust. What the “road board” wants is a “mackintosh sheet” in th© form of a dustloss, ductile, noiseless road. I have been connected with scores of tests and principles, but non© of them will do unless oil is used in the form of an asphalt or bitumen as a- binder. The road boards of London have been making tests lately, and a material made by a company of which we have the management, has produced a material which I believe .will “fill the bill,” and the binder used is_ a. “natural asphalt,” or oil from which the lighter parts have evaporated by Nature, and a residuum of oil from which man has extracted the lighter parts. I only mention this road question, as in future it will make large demands on oil refinery companies who are catering for the largest markets. THE NEW COMPANY. Now I must turn to the subject matter of our. mooting here to-day. Th© result of the negotiations as agreed between your directors and our directors is: A company is to be formed called ’ “The Taranaki (Now Zealand) Oil Wells Limited,” with a nominal capital of £’-100,000, of which sum £275,000 is to be issued for cash subscription, £50,000 is to be held in reserve, and £50,000 is to be allotted to your company in fully paid chares, being part of the purchase consideration, and 25,000 shares go to British Empire Oilfields Limited. At the first inception, £400,000 may look a large figure, but when it is considered tliat £250.000 is for actual working capital, the apparent largeness melts into thin air. Later I will explain why it ie considered advisable to have so large a. working capital. The expenses connected with the issue of a company of this size arc considerable, and in order to guarantee success, the amount required will be underwritten. or. in other words, guaranteed. 1 understand from Mr. Carter that underwriting is not very well understood in Now Zealand, which occasioned nie some surprise, for it is a regular business in England, and to judge by the firms who undertake underwriting or guaranteeing of issues, it is a very lucrative business. Perhaps I had better digress hero a little in order to explain the operation.

ANNUAL MEETING.

UNDERWRITING. in the first instance, in order lo term a company, there muse lie a promoter. .Next, in order to make .sure ol the capital required, the promoter goes to a firm or number of firms of underwriters, who agree t-o take so and so much of the capita], for which they get a commission of so and so much per cent. The risk an underwriter lakes is ns follows; —Say a company requires £200,0d0. which amount is underwritten. The issue its then made to the public. If the public take the C 200.0 K) worth oi .shares the underwriter is relieved of all responsibility, and does not i take any shares at all. unless he stipulates for so and ;:o many at the time he hands in his underwriting letter. Supposing one firm of underwriters tike .UrNOOO worth of risk at an underwriting commission of JO per cent., and that, a* boft.rr stated, the miblic applies for all the shares; that underwriter receives a cheque from the promoter for CoOOJ. being the 10 per cent, on his original underwriting or guaranI toe of UoO.OOO. | Now suppose the public only took IoO.ODn shares out of the 200,000 oifered, the underwriters in thk> cu-e I would collectively have to take ,30.0(10 j shares or twvnty-five per cent, of the amount underwritten. .Supposing an j underwriter, as before mentioned, unj derwrote of).OOP shares, in thr; ease lie 'would have to take un 12. AU) shares, I hm as hr would receive .C 3090 in rom- ; mission for havin.e underwritten dO.HOO . shares, these 12. AM shares would only 1 cfi-u him C7TOO. and a like proportion [ whether he underwrites AHT) shares or 1 A 0 shares, SHAREHOLDERS’ RIGHTS. "'File amount of v ichts” due t-o each .••harrlioider L- iha: they may re-invest the amount payable under the agreement in new diares in the Taranaki Chi \\ViL C’omnany, and that- amount will fully nay for the number of shares to which they art- entitled, together v-ith 2.v hit share which they will lie at>k o d to pay when applying for new shares. ■WORKING CAPITAL. With regard to the amount reserved for working carutal £200.0d0. In this instance we are not aiming at being an oil drilling company only, but refiners, and the ultimate cost of the retinery can only be determined when we know how much oil we are likely to have to refine, and what products we may find the most profitable to make. It may ak.o hr necessary to have a distribution department—one cannot tell. The real gamble for oil is no longer with us ; the business of oil producers and refiners is an industry, and me that has more possihililies of greatness than any I have yet known. We. in arranging the amount of capital, have gone very thoroughly into figure*?. and with the conclusion that we shall lie able to do what has been outlined with the capital nt our disposal. PROSPECTUS. Since my arrival here, a proof prospectus. on which underwriting has been promised, and is jjnw being done in London, has been sent out to me, and a copv of this prospectus will he sent to you. suhieei to one or two alterations as soon as approved by cable, LOCAL DIRECTORS. Four local directors arc to he appointtd. two to ho nominated by the Taranaki Petroleum Company, and two , bv the British Empire Oilfields Limited. The two gentlemen nominated hy London are Messr*. Carter and Ok-y.— , (Applause.) No doubt you will he pleased to hear that the company has , net gone outside the present directors, particularly when these gentlemen have : already done so much for the company. WATER TROUBLE. Mr. Brown referred to the water trouble at the bores. Tide, however, presented no difficulty. It pad occurred in other places, notably in Tustfinmvice (Galicia) and Grosny (Russia), and means had been devised to solve \ the problem. In fart, he ventured to state that though oil and waiev wore now flowing at .Moturoa, it would not be long before only oil was flowing.— (Applause.) OIL FUEL. Mr. Carter has mentioned that ships trading in the Atlantic do i:?c oil. Why? Because until the Mexican oil- ! fields had a sufficient production near \ the Gulf of Mexico they could not obtain it at a price that it would pay to use. I might say without fear of contradiction that coal will not he wanted as fuel for steam purposes when oil is | procu ruble. Already oil is to be used for fuel to bring the mails here from England. A liner is now being built by Messrs. John Brown and Go., of Clydebank, for the j Union Steam Ship Company of New Zealand, for the improved mail service j between Vancouver and Auckland. She will be the largest vessel registered in Australasia. There is to be accommodation for some seven hundred passengers. in four of her boilers steam will be generated by oil fuel, and from the use of this, considerable economics arc expected by the owners. The supplies of oil will* bo obtained at first irom California, but ultimately it is hoped and believed from New Zealand and Canada. By this means the time taken from Vancouver to Auckland will be 19 days, thereby saving four days in which mails will be delivered from England. The modern passenger and cargo boat will be as big a change from the present as the early steamships were to the sailing ships. A boat is just about completed building at Homo, nearly 400 ft. long and 10,000 tons displacement, with two sets of Diesel oil engines capable of developing 3000 indicated horse-power. She will have three masts, and the fumes from the engine-room will he led up inside the mizzen mast and exhausted some 50ft. above the deck. No funnel even for exhaust purposes. The siren on the main mast will be operated by compressed air. The vessel will have, no steam for mechanical purposes, as.even the donkey engine will bo an oil engine, and it will also generate the electricity which will operate twelve cargo winches and also the anchor windlass. The machinery space will bo only a third of that required for steam, and a third more space will bo available for cargo. The space for passengers will consequently be larger, and nothing will interfere with one’s view or walk on the upper deck. She will have the appearance of a yacht. CLEANLINESS OF OIL AS COMPARED- TO COAL. One can realise the difference while travelling from Now York to San Fran-

cisco. TV hen the coal engine is changed tor the oil engine the windows are opened and one is enabled to breathe fresh air. It will not bo very long, 1 believe, before one will travel from England to New Zealand propelled by oil fuel; and one will not have the unpleasantness of having to use a pair of blinkers and a couple of .side lights to walk across the upper deck in a head wind, as it is almost necessary to do when travelling East. CONCLUSION. In concluding his speech Air. Brown said: *T hope you will not take this tor a mutual admiration society meeting. but J do want to say something ol Mr. Carter and the way he looked alter your interests on the other side, it takes a good deal of courage for a j man to leave his business and his childrop behind and go from o happy, sunny j little town like New .Plymouth to the ■ other side of the world, and a smoke-begi-imod city like London, with all its noise and bustle. but to do more, and go to an cilice such as ours, with rows, of clerks glaring at you when you ask to see the manager, and when, again, you arc ushered into that “chamber of I horrors.’’ the manager's room, ami i there dictate terms and stick to them, I though tins, ihat, or the other director may come in with some very good | reason why he should not. That mar. j is worthy of your tbanko, and although j Air. Carter's modesty no doubt debars j him from saying all that ho had to put |up with ter those who sent him, I J know, and with it all be left appreciated ' and liked by all who knew him, j Should any shareholder not thoroughj ly understand the procedure in the [ formation ot this new company, ami jus I to the rights to which ui.y are entitled. 1 I (shall be at the Taranaki oi l ice for the next row day.s, and will bo pleased to give any information. Both specrhp.s were listened to with a great deal ;*f interest ..nd were Lequcntly punctuated by beany applause. At the conclusion of Mr. Brown’s mldrose, Mr. Caii.-r said no doubt his speech had impressed the share hold cuss as it hah imrueswd him. with Ike fact that what Mr. Brown did not know about oil was not worth knowing. He had studied the whole oil question on nil the oilfields of the world, and hi a experience must prove oi incalculable benefit in the oil industry in this district. PROPOSAL TO ACKNOWLEDGE AIR. CARTER’S SERVICES. Mr. M. Fraser appealed to the shareholders present to put their heads together to make some acknowledgment to -Mr. Carter for the work lie had done at Home. They hardly thought ho would succeed in the very difficult task they had given him to perform, hut they found lie iiad net only been suerc-r-a-fui--but succivKiui a long way above their expeditions. For three ears he (Mr. Fraser) was a director ,ai this company, until his health broke down, and he had to resign, and in leaving the directorate he said he knew ol no one in the town more able to do the wmk of the company than Mr. Carter, and for twelve months before he went Home lie had personal knowledge of thn> tact that h‘‘ devoted nearly the whole oi his time to the working of the company. He thought that the shareholders should at the present time, when they considered all that lie had done for them—when they considered that in one item alone he had made £I*MXM for the company —when they considered that his business must have been very much ! handicapped whilst he was away—should instruct the directors to vote him a ver\ ham Lome sum of money. They would have noticed that the in v. company had to pay his expenses, and therefore they could to-day a fiord t o vote him a good mini of money. He | proposed that they instruct the throe- j teiw to vote him a sum of not loss than j £SOO for the work lie lias done. i Mr. Carter: I think tide is a lit-th- 1 nremaiure. V, e shall have another , meeting when the company rtecs into liquidation, and then if the shareholders are thinking of doing anything of that kind will be the most favourable time. .Mr. AT. T. Jennings: I quite agree with what Air. Fraser has said,, end I also agree with what the chairman Inm said. It is a matter for the directors tn go into when the company goes into liquidation. I quite rocopiLe the sacrifice Air. Carter made in going away and neglecting hi.- business on behalf of the shareholders, and I am sure that the directors will give expression to what Air. Fraser has said. ThuL 1 believe, is the wish of every shareholder of this company. THANKS TO AIR. BROWN. I would like, if I am in order, to move that this meeting of shareholders accord to Mr. Brown, who gave us such a very interesting address, our ver v deenest thanks. T have listened to his speech with groat attention, particularly from the patriotic .side of the question, and I hone he will go back to England feeling that New Zealand is a very patriotic part of the Empire. Captain Mace seconded, and the* motion was curried with acclamation. Mr. Brown, in response, said: 1 thank yon very much for your vote of thanks. I am sorry that the address has been given with a certain amount of difficulty. Yesterday 1 was afraid.l should not lx* able to be here at all, 1 was suffering so severely from headache. It lias’ however, given me groat pleasure to speak to you to-day on such an important subject as oil for the Empire. and 1 never have had the pleasure or honour of addressing a meeting before. where those sentiments were so keenly followed, and before so loyal a gathering. I feel that no words that I can use will adequately express what I feel to-day. Air. C. E. Bellringer proposed that the meeting place on record its appreciation ol the work of Air, Carter. Speaking as one who had something to do with the affairs of the company while Mr. Carter was away, I know ho said something of the work he hud to do, and just how great a strain it was and how difficult was the question with which he had to deal. Again and again there wore difficulties that seemed almost unsurmountable, but, largely owing to Air. Carter’s tact and the skilful way in which he dealt with tho men in London, they had all been overcome. Air. Carter has rendered immense .service to the company, and at this juncture it was for the shareholders to ten- \ dor their thanks to him for the ability | and tact ho iiad displayed on their be- ; half in London, and for the service ho { hud rendered. j Mr. Janies seconded. ] Tlie motion was carried amid hearty ; applause. i Air. Carter, in response, thanked the shareholders very much for tho vote I they had carried. “If I had known,” ho continued, “what I had to face before T went Homo I dare not have undertaken it. I believe that the agreement that has been completed ia in the best interests of both parties, and I am quite certain it will be to the advantage of the industry in this district and to the district generally.” The meeting then terminated.