SOUTH PACIFIC PETROLEUM COMPANY.

Gisborne Standard and Cook County Gazette, Volume II, Issue 271, 9 March 1889, Page 2

SOUTH PACIFIC PETROLEUM COMPANY.

INDIGNANT SHAREHOLDERS. A meeting of the local Shareholders in the South Pacific Petroleum Company was held on Thursday evening. Present: Captain Tucker (in the chair), and Messrs Stubbs, Rosie, Dunlop, Good, Chrisp, Matthews, C. Smith, Maude, Graham, Martin, Grant, Hall, P. Bourke, R. Cooper, and Dr lunes and the Secretary (Mr Piesse ) The Chairman said it was the old, old story: they had come there to grumble at the way things were going on. He continued : Some time has passed since shareholders last mer, and certainly nothing has occurred in the interim to change our minds, but rather to strengthen, the feeling of dissatisfaction that then prevailed, so that now, more than ever, without blaming any particular person I fee! there is a want of vitality about the thing. I have given up expecting anything at all, and in face of this last call of fivepence matters arc really getting serious. I think the tzzne has come when we ought no longer to restrain our feelings, but should say to the directors at Sydney just what we think. For my own I feel that the calls have been too many—there is nothing to show for them. How much nearer are we to the end ? I suppose every day brings us nearer to the end, but so far as we can see the end is no nearer than ever it was. I cannot shut my eyes to the fact that a great deal of time has been wasted, and the work has not been pushed on in that vigorous way it should be. We should say to the directors that we are dissatisfied with everything, with the calls, the way the money goes, the direction particularly, and the want of progress at the springs. Nor do we believe any progress will be made while things are carried on as at present.

A copy of the resolutions passed at Christchurch was then read (as already published in the Standard), The Ch iirman said this showed the Southern shareholders felt very much as the Gisborne ones did, and he p esumed a copy of the resolutions had also been sent to Sydney, He moved that the meeting endorse these resolutions.

C iptain Chrisp thought he only re echoed the sentiments of the Gisborne shareholders when he said there was the greatest dissatisfaction among the local shareholders at the way things had been managed for the past two years, It was easy to find faults, but difficult to discover a remedy, He had prepared a series of resolutions which he would submit tn the meeting either seriatim or together as the Chairman directed. The resolutions were as follows

(1.) This meeting cordially endorses the resolutions passed at a meeting of shareholders held at Christchurch on the 27th ult. (2.) That this meeting is of opinion, that (ever since it was decided the headquarters of the Company be at Sydney) the Directors have been most remiss in watching the interests of shareholders, and that their action has led to endless unnecessary expense and loss of time. (8.) That the manner in which the business of the Company has bsen conducted for the past two years, has been a disgrace to business men, and calculated to seriously depreciate the value of the Company’s property. (4.) That the amount of work done at the Company's works during the above period has been totally inadequate to the amount of money spent, judging from the number of calls made. (5.) That while the meeting cannot but express disapproval of the manner in which Mr Weaver has conducted operations lately, they hold that it was the. duty of the directors to have seen into the matter, and that the shareholders could only look to them for a remedy. (6 ) That this meeting insists on the pnbli cation of a duly audite I balance-sheet, showing detailed particulars of how the money has been spent for the past two years. (7.) That in order in future to obviate the unnecessary expense, and serious loss of time, where every trifling matter has to be referred to Sydney (when a quorum of directors is seldom got) a local Board of three responsible parsons, being resident here, be appointed, with power, under certain instructions, to act in the interests of the Company. (8.) That the Chairman be requested to forward the resolutions passed at this meeting to the shareholders and Board at Sydney, and to the Chairman of the Christchurch meeting, held on the 27th ult., asking their approval and concurrence, so that if necessary some united action may be taken to insist on compliance with the foregoing resolutions by the directors.

With regard to the resolution refer, ing to Mr Weaver he had some delicacy in preparing it, but the time had come to speak out. As to the balance sheet he believed no statement had been made for two years, and for the necessity of this he referred them to 61 of the articles of association. He sug gested these resolutions if carried, should he sent to the Sydney shareholders—as they must also be disgusted at the way things are going on—so as to have united action taken. Mr Maude said it was evident, from a telegram he had received, that the resolutions of the Christchurch shareholders were passed before they were aware of the call being made, and that they had now become more annoyed than ever. The telegram was from Mr T. Pratt, and was as follows Astounded at fivepenny call in Pacific. Fair play only ig wanted. Some of us think it desirable shareholders should proceed to Sydney to investigate and report. Would Gisborne join Christchurch in expense, if you went, or someone from here? Reply to Mr Fisher.” Things had all along been disgracefully managed, and he for one had been waiting for six or eight months till the rest of the shareholders got so indignant that they would join himself and one or two others to bring things to an issue. From what the Christ, church people had said they had apparently awakened to the seriousness Gf the affair. He expected there would have been in connection with this last fivepenny call some statement laid before the meeting by Mr Piesse. The whole thing was open to grave suspicion. He could not tell what they had done with the money. [Mr Good: And nobody else.] He had been making enquiries and could not discover there had been a balance sheet sent out ever since the management was changed to Sydney. Gisborne could not possibly manage things worse than the Sydney people had done, and he thought they ought to take some steps at the general meeting in May—if they would not change the Directorate to Gisborne, there ought certainly to be a Board of Advice, with power to act. Captain Chrisp’s resolutions seemed fair and temperate. He thought one person would hardly be sufficient to be in charge of affairs. [Captain Chrisp : One or two, it says.] Well, he thought there ought to be three. [Mr Matthews : Yes, there ought to be three,] Judging from the way things had gone on in the past there would be some disagreeable work for the Board of Advice, and supposing Mr Graham were appointed—he would cordially support him if he were—alone, he might not like to take the necessary steps and would get continually badgered, but if there were three persons the simple answer would be that it was the decision of the Board. If the Sydney people were determined to carry on as they had Caen doing, and would neither let the Directorate be removed to Qjsborne nor consent to there being & Board of Advice they should take steps to have the Company placed in liquidation and done with, and then see if they could not start afresh. Mr Matthews: Cin you state, Mr Chairman, whether a statement of accounts has been published and circulated in Sydney ? The Chairman said he could not. Mr Matthews : Perhaps Mr Piesse can ? Mr Piesae, was not aware of it.

The Chairman: Perhaps you can tell us why this five penny oall has been made ? Mr Piesse said his information was that the call was to provide funds to pay wages, etc., and to remunerate officials and pay office expenses which have been accumulating, some years. What that meant he did not know.

Captain Chrisp was glad this information ' had been asked for, for it seemed probable I from what Mr Ptesse rbad, that the Directors ' were in receipt of a large honorarium. There were 12,000 contributing and 9000 paid up shares held in New Zeiland, and excepting 5630Jshares held by Mr Weaver they were lin a minority of 3,400 shares. Unless there was also diseatibfactiqn amongst the Sydney shareholders they would not be abb to

the headquarters rertinve.d to where they ought to be. He found by\ thafarticles of association that directors I&JKt call an extraordinary meetiiKfon thedeiipnd of onefifth of the shareholders. send Mr R. Hill Fisher and some one%ls » across to Sydney—if they I’aited for tl/e directors to take any action bhey luight wZit till the Day of Judgment. j y Mr Maude riail w ? sn . Joplin was in Gisborne he put the him, aid he replied that be got nojJflWJneration except 1000 contributing shire Ton which the Company paid the calls. Mr A. Graham saU he had never seen a balance sheet of the Company, and he had been paying calls on his shares for a long time. had been fooled long enough and they should not only pass resolutions, bui* send some one to back them up, otherwise they would simply be making fools of themselves—thev might pass resolutions but it was a different matter to get them/nto force. Someone should go from Gisbotne who was able to speak with authority,- who was able to say how Mr Weaver Had been going to work for ever so many nfonths. He could not help thinking when Tie reflected on what had passed, that the shareholders had been too easily fooled altogether. Mr Weaver had been a mystery to nim for a long time, and he had come to the conclusion he did not wish to make the tist, and he was also convinced Mr Weaver had got his orders from Sydney on which he was acting upon, whether by the direction of the whole of them he could not say. He ('he speaker) was expecting, after Dr Storer had got back, that things would have been put right, instead of which they had never yet heard what his report was. Tin meeting had been put off from time to time; first they had a threepenny call and now here was a fivepenny one. It was time something more was done than simply passing resolutions and sending them off to Sydney. He agreed with Captain Chrisp’s suggestion that thev should contributpproportiona'ely towards sending delegates to Sydney. As to a Board of Advice his own name having been mentioned in Christchurch, he would be glad to act in a Board of three, but would not undertake to act singly. It would hardly be likely with the large interest held in Sydney they would be able to get the whole Directorate changed to this place, but they might be able to g *t a Board of Advice which would meet the requirements.

Mr Smith said Mr Piesse had a balancesheet which should have been presented long ago.

Mr Piesse said he had a balance-sheet in his possession, Mr Cooper did not understand what there was to hide or keep back, and why the balance sheet was not prepared, and why business men like the Directors should not show how they had spent their money if they had nothing to ba ashamed of. There must be something in the background, and they could not put down their foot too strongly. The action of the Christchurch people should have been taken before ; of course nothing had been done because they ware in a minority. It was a disgrace to the whole of New Zealand for a company to ba manage las this one was. He for one would be prepared to take ac'ion against them for not publishing a balance sheet. No other foreign company in New Zealand was carried on the same way. People outside regarded them as a lot of nincompoops for the way they had stood it; they had been forbearing, but now they ought to put their foot down. Mr Resie said he had been connected with mining companies a good deal, and he did not think they were compelled to send a balance sheet to each shareholder—if it were published in Auckland, it was not neoeasary to send it to the Thames. He was under the impression the balance sheet had been published, though they might not have seen it. Mr Cooper sai l it ought to ba published in the Gazette, and sent to every shareholder. Mr Smith again said there was a written balance sheet in Mr Piesse’s hand. Mr Bourke read the articles of association which said the balance sheet should be laid before the general meeting. Mr Pie<se said he had a balance sheet in hand later than that to which Mr Smith referred, but it did not give the items required by the resolution”. Mr Bourke said it was not legal to simply total the amounts.

Mr Piesse said in regard to the previous meeting, he had been asked to get Mr Stubba to report nn the work ; which he had done ; and Mr Weaver had been instructed to push on with the work. The report had been sent and simply noted. Mr Stubbs said he could inform them that thev had the sympathy of the Sydney shareholders, who could do nothing because they were ignorant, and could get no information as to what was being done. He agreed with the suggestions of Captain Chrisp, but said the Sydney shareholders could do nothing until they were informed by some one from New Zealand as to what was being done. Captain Chrisp’s resolutions were then put seriatim, all being seconded by different shareholders, and carried unanimously. Mr Maude’s opinion was if Mr Weaver meant to make the test he|must do it within a fortnight. Several shareholders said that had been stated all along, but day after day, and week after week, they had the same thing without result.

Captain Chrisp did not personally reflect on Mr Weaver, but he felt certain all the shareholders were not satisfied.

Mr Graham did not see why they should beat about the bush—if they were not satisfied with Mr Weaver, they should say so. They had seen him about the verandah of the public house, with his legs crossed, smoking a cigar and reading a novel, day after day when he ought to be at work. If there was any humbug going on he must know something about it. Mr Rosie was in favor of only one Director. He thought they should request the appointment of a manager to work on the ground. had been for a long time on the Thames and Coromandel goldfields, and he had never seen a mine without a manager. [The Chairman: Thon they will appoint Mr Weaver.] He was a contractor. If they appointed a manager—it would be better even if they had to pay three or four pounds a week—there would be none of this trouble.

Mr Graham asked who was to manage tbe manager when the Directors were in Sydney ? Mr Rosie said somewhat the same trouble had occurred on the Thames. When in one case the management of a company was transferred to Auckland, the Thames people thought they would lose everything, but it was found that, with a responsible manager, things were worked quite as well at Auckland as at the Thames. If there had been a manager at the South Pacific, there would not have been these conflicting reports— oue day that oil was struck, and another that there was no oil. If there was a responsible manager, and he bad made false reports, he could get the same punishment as the notorious Green Harp swindlers had done. He had never yet heard a report from the works that could be relied on,

Mr Maude said that was a little too strong, He had personally seen the oil in the pipes. The Chairman had also seen it poured out.

Mr Smith said he had written over and over again for official reports, but could not get them, and he did not thick letters from here were even read.

Captain Chrisp pointed out that if the Directors were appointed, it would be one of their functions to, if necessary, sea as to Mr Rosie's suggestion.

Mr Maude thought it would be better to wait for the general meeting in May before doing anything further, and sand some one over with proxies, Mr Cooper thought they should back up the Christchurch shareholders without waiting for anything. The Christchurch people were anxious about the matter, for they were prepared with capital to put in the oil industry, pending the result of this test being made known—he himself was connected with two companies that were prepared to go on if they knew the result to be satisfactory, Mr Smith recommended it to their consideration whether they could get an extraordinary meeting before the 24th April, the latest date at which the call must be paid. Mr Graham agreed—there was a feeling ths call was not needed, and they should go straight on without regard to the general Captain Chrisp also agreed, for when the delegates got over there they might find that some rules might debar them from bringing forward what they desired, A requisition signed by one-fifth of the shareholders could petition the Directors to call the extraordinary meeiingj and if they refused, the

delegates could by the articles of association call it themselves.

Mr Maude said every share not paid on could b? forfeited by the 11th Aoril could not be voted on. They could send oyer a requisition to get an ex'raordinary meeting after the general one. He intended to pay his caPs, for his faith in the value of the property was not a bit shaken, though he believed there was some underhand work going on.

Mr Stubbs pointed out that the shares could be redeemed up to the day of sale, though they could not vote on them. Mr Maude proposed the meeting be adjourned for a week; that a committee be appointed to loo* into the articles of association, and bring up a report. In the meantime th°y cou'd communicate with the Christchurch shareholders. He believed they would have still to go to Sydney. Mr Rosie thought the resolutions should be withheld until the extraordinary general meeting, Mr S*ubbs called attention to the fact that the resolutions were passed. Mr Hall thought it would be a sensible thing, now they were on the eve of a display of fireworks, to send up a couple of men to watch the works and prevent accidents. Dr Innes said Mr Weaver would not work if there was anvone there. Mr Hall said then it did not seem to make anv difference when there was no one there, so far as work was concerned. If anyone was there he would know why no work was done. Shareholder: We are nobody—we are sapposed to ba dead. The Chairman proposed that Mr Maule be authorised to reply to tha telegram he had received from Christchurch to th? effect that the Gisborne shareholders answered in the affirmative, one delegate to be sant from Gisborne, and one from Christchurch. Mr Maude propose! that Messrs Graham, St.ubb% Chrisp and the mover be appointed a oommitttee to attend to the carrying out of the resolutions, s r uty th? articles of a«siclation, and otherwise assist in the furthering of the views of the meeting. Th? meeting thsn terminated with the customary vote of thanks to the chair.