Shareholders Meetings of the Burntisland Oil Co. Ltd

type: Companies - shareholders' meetings

Unique Code:
A01112
Source date:
06/07/1888 (approximate)
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Public meetings of the Burntisland Oil Co. Ltd

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1881 Annual General Meeting

Burntisland Oil Company. —The first general meeting of the Burntisland Oil Company (Limited) was held on Wednesday in the registered offices of the Company, 80A Princes’ Street. Edinburgh. On the motion of ex-Provost Wood, Portobello, Mr John Waddell, Edinburgh, was called to the chair. The Chairman, in moving the adoption of the report, which having been circulated was held read, said that since the property came into the Company’s possession no time had been lost in commencing the construction of the additional works. This they had been able to on very good terms, and when their plans were carried out their works would probably lie the best existing in connection with any oil company, either at home or abroad. They had adopted Henderson's patent retorts, and they would see from decision recently given the Court that this Company’s arrangement was a very prudent one, for it gave them the liberty to erect many retorts as they liked. There was another thing he would like to say. Their recent investigations had fully confirmed the last report regarding the shale seam which they always knew to on the estate, hut these investigations made them incline to think that there was another seam of shale under the present one, which, if not better, was at least equal to the known seam. Instructions had been given the manager to put down some bores to test this under seam, and be had not the least doubt that they would be successful in getting it. If that were the case it would enhance the value of their property by at least £30,000. The directors did not consider it advisable to spend £7000 or 8000 in constructing branch railway into the works from the Kinghorn district. There was prospect of railway being formed between Burntisland and Inverkeithing, and when formed they could get branch connecting with it at a much lower cost; and meantime they were suffering no loss, they were getting their material conveyed from Burntisland to their works at very little over 1s per ton. Bailie Younger, Edinburgh, seconded the motion, which was unanimously adopted. On the motion of Mr Kay, Hamilton, seconded by ex-Councillor Landale, Edinburgh, the meeting affirmed and approved of the actings of the provisional directors, and in particular the ratification of tbe scheduled agreement Mr Hurl, Gleuboig, moved that the provisional directors be elected the director* of the Company. Mr Macmillan, Edinburgh, seconded, and the motion was agreed to. Dr Dickson, Edinburgh, seconded by Mr Richmond, Glasgow, moved that the remuneration of the directors fixed at £100 each, which was also agreed to unanimously, tbe Chairman remarking that this would not come into operation until the beginning of the first financial year—lst January next.

Fifeshire Advertiser - 17th December 1881.

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1882 Annual General Meeting

BURNTISLAND OIL COMPANY. The annual general meeting this Company was held within the office of the Company, 80a Princes Street, Edinburgh, on Monday. The chairman (Mr Waddell) presided—the whole of the members of the Board, Mr Grainger, general manager, Wr J. H. M. Bairnsfather, solicitor of the Company, and a number shareholders being present. After the formal business had been transacted the Chairman reported the work of the Board during the past year. He further stated that the works were now practically in full operation. There were still some trifling matters to do, but these did not prevent them from going on. The capital was £120,000, of which £102,450 had been called and applied in the purchase of the estate, the minerals therein, and the erection of splendid works at a cost of fully £60,000. It was not the intention of the Board to call up any more of the capital, but they would, soon as proper opportunity presented itself, borrow a sum of money on the security of of the estate, sufficient for all purposes, as originally intimated in the prospectus. Over a hundred new dwelling-houses had been erected by the Company at the works, where four hundred of the Company’s men were housed. This would be nearly ample. A start was made in October of fully more than the half of the retorts, and about the beginning of this month they were all in full operation. They would be aware that the action with the burgh of Kinghorn had been settled, as it had been found that the Company had otherwise an ample supply of water for secondary or manufacturing purposes, and that they were by law entitled to take much as they might require and in any manner they choose for primary purposes without the leave or interference of any one. When the meeting came to be held next May, he had not the least doubt that the Board would he in a position to declare a dividend, and he hoped that it would a good one. He thereupon moved in accordance with the intimation given to the shareholders— ** That the date of the annual balance he altered from the 31st December to 31st March ; that the annual general meeting of shareholders he held in future in the month of May ; and that the directors who fall to retire at this time, and auditors, should continue in office until the general meeting in May, at which meeting the balance sheet made up to 31st March, will be submitted along with the auditors’ report. In support of his motion the Chairman remarked that after the general meeting last year it was considered that the change now proposed would be beneficial, and that the balance sheet would be submitted to the shareholders in May. Mr Pearson, 62 Grange Road, Edinburgh, having seconded the motion, it was unanimously agreed to. The Chairman further stated that the Company had made several profitable contracts ; that the thickness of the shale seam averaged about five feet, and could be put into the retorts cheaply as by any other Company, and that it was expected to last for thirty years. This estimate has been got from the mining engineer, who reported every six months. He strongly advised all the shareholders to apply to the general manager for an order and go over and see the works for themselves, and hoped that the most of them would so before next meeting. The railway to Inverkeithing might be made in about year, and if so was the Board’s intention to construct a connecting line, but whether this was done or not the carting was not causing any inconvenience or loss to the Company. Another thing he might mention was that there was local mine on the estate which might be opened up. Hitherto the want of house accommodation for the miners had prevented the Board from investigating into the matter, but it would receive their early and earnest attention. Generally everything looked very favourable. They had one of the best oil works in the country, and he hoped it would also prove one of the best paying. A vote of thanks to the chairman and directors of the Company for their past active, attentive, and valuable services having been proposed by Mr Cree, 34 Royal Terrace, Edinburgh, and unanimously responded to, the meeting terminated.

Fife Free Press, & Kirkcaldy Guardian, 23rd December 1882

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1883 Annual General Meeting

BURNTISLAND OIL COY., LIMITED. The Second annual general meeting of the shareholders of the Burntisland Oil Company (Limited) was held in Edinburgh on Monday —Mr John Waddell, chairman of the Company, presiding. There were present—John Waddell, Esq., chairman; Thomas Wood, Esq., Baileyfield, Portobello ; James Thornton, Era., Hermand, West Calder; Robert Younger, Era., Carlton Terrace, Edinburgh : Wm. D. Gillies, Esq., 6 Miller Street, Glasgow; and Richard Brown. Esq., of Haylec, Largs, directors; Wm. N. Grainger, Esq., general manager and secretary ; Andrew Beith, Esq., Engine Street, Bathgate: George Crawford, Esq., St Andrew Square, Edinburgh ; James Cree, Esq., 34 Royal Terrace, Edinburgh ; William Dunlop, Esq., 3 Engine Street, Bathgate ; Wm. Graham, Esq., King Street, Stirling ; James Haldane, Esq., 24 St Andrew Square, Edinburgh : John Hood, Esq., 11 St Anthony Street, Leith ; George M. Johnston, Esq., 34 St Andrew Square, Edinburgh ; Thomas Keith, Esq., M.D., 2m North Charlotte Street, Edinburgh; George Paterson, Esq., 7 Caledonian Road, Edinburgh ; Gavin Paul, junr., Esq., and James Paul, Esq., 1 Hampton Terrace, Edinburgh: Thomas S. Pearson, Grange Road, Edinburgh: James Rankin, Esq., 14 Maitland Street, Edinburgh; David Richmond, Esq., 35 Rose Street, South Side, Glasgow - George Waddell, Esq., 3 Bedford Place, Edinburgh ; Peter Wilson, Esq., Broxburn : Robert Sinclair, Wardie Crescent, Edinburgh : and James Spencer, Esq., works manager; and J. H. M. Bairnsfathcr, Esq., law agent of the company. The Chairman, in moving the adoption of the report, said that the works might be said to be now completed. The cost of erecting the works, including the sum paid for what the Company took over, was about £70,000. The capital of the company was £120,000, but that included the estate, which represented about £21,000, and also the minerals-—the estate and the minerals amounting together to about £43,000 or £44.000. At the works there were 240 retorts, all of them being Henderson’s patent, and oil stills-12 crude, lubricating, and fine. The refinery and paraffin houses had been most carefully constructed with all the newest improvements, and were capable of refining about four million gallons per annum if kept constantly at work ; or, in other words, the distilling and refining power was about one million gallons more than that capable of being produced by the retorts. That was about a million gallons more than was estimated in the prospectus. The mines were being rapidly opened, and the directors expected to be within the next three months to put out 300 tons of shale per day. The present out-put was about 260 tons per day, and, as they would see from the report, a new shaft was being sunk, which it was expected would reach the shale in the course of a few days. They would also see from the report that they have erected a largo number of workmen’s houses, without which they could not have got workmen to carry on the works. This they did not expect to do. but they found when they came to employ large number of workmen, that houses in the district—either at Burntisland or Kinghorn could not be got, and therefore we were obliged to put up the houses. However, he had not the least doubt this would prove one of those outlays which would ultimately benefit the Company to large extent. With reference to the balance-sheet, he had to explain that the works were really only four months in operation the date when the books were closed for the year. The process of heating up the retorts was commenced in October, and it was the 1st December before any fine oil or solid paraffin was produced. Taking that into account, the dividend earned was 25 per cent., and he had not the least hesitation in saying that they would able to maintain that dividend. Mr Waddell concluded by moving the adoption of the report, and the declaration of dividend for five months at the rate of 20 percent, per annum, payable in one payment on 5th June next. After some conversation, the report was adopted. Bailie Richmond, Glasgow, proposed the re-election of Mr Waddell and Mr Wood as directors of the Company, and referred in complimentary terms to the manner in which the affairs of the Company had been managed by the present Board. Mr Cree seconded the motion, which was unanimously adopted. On the motion of Johnston, Edinburgh, seconded by Mr Pearson, Edinburgh, Messrs Lindsay, Jamieson, Haldane were re-appointed auditors. An extraordinary meeting of the Company was then held, according to circular issued to the shareholders, the object of which was to approve of recommendations by the directors to alterations certain of the Articles of Association. The leading alteration was to enable the Company's stock be quoted on the Glasgow Stock Exchange, to which the Chairman said there could no objection, as it would make the Company stronger, and the others gave the Company and the directors various necessary powers which they did not under the articles as originally framed. The meeting unanimously approved of these recommendations, and The Chairman announced, amid applause, that it was the intention of the directors to invite all the shareholders to inspect the Company’s works in August next; but at any time that a shareholder wished to go over to see them, he had only to send intimation to Mr Grainger, at the office, and he would give him card, or other introduction, and Mr Spencer would very glad to show them over the place. Mr Haldane, C.A., moved hearty vote of thanks to Mr Waddell for his conduct in the chair, and Bailie Richmond, in seconding the motion, said that, by visiting the works, it was very good way of giving one confidence in his investment, and ho thought it was proper that gentlemen connected with any concern should visit it and judge of it with their own eyes. If they did this, they would see the wisdom of retaining the stock they held in the Company. The meeting then terminate

Fifeshire Advertiser - 26th May 1883.

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1884 Annual General Meeting

BURNTISLAND OIL COMPANY. The annual meeting of the Burntisland Oil Company, Limited, was held the Offices of the Company, 15 Hanover Street, Edinburgh, on Monday—John Waddell, Esquire of Belford Park, chairman of the Company, presiding. There was a good attendance of shareholders. The Secretary (Mr W. N. Grainger) submitted the report, which has already been published. The CHAIRMAN, in moving the adoption the report, congratulated the shareholders that notwithstanding the fact that the works had not been in full operation during the past year, the profits derived for that period amounted to £30.404. From that sum there fell to be deducted for interest on loans £1823, leaving a balance of £28380, 9s, 1d , which the Directors proposed to apply as follows. (1) Dividend at the rate of 20 per sent. (2) writing off cost of transfer of property; (3) depreciation on works, mines, and plant, and also for minerals and stock—leaving a balance to be carried forward of £2048. The works and mines had been thoroughly maintained at the cost of revenue and be was glad to state that the Company had made no bad debts. (Applause.) The addition to the capital expenditure, although somewhat large, has been absolutely necessary to complete the works, and their refining plant was now in position to put through nearly 500 tons of shale per day, which was 200 tons more than was originally contemplated. To enable them to employ this machinery it was necessary to erect other two or three benches retorts, and at an extraordinary meting subsequently held, Directors would ask power to raise additional capital for that purpose. The costs of erecting additional retorts would not exceed £l0000. and they would be able to put through more than a third more shale than at present, at a very small extra cost, the only additional expense being the men who would attend the retorts. That would be a source considerable advantage to the Company.
Ex-Provost food, seconded the motion.
Bailie Richmond, Glasgow, said he would like have information as whether there was any truth in the disquieting rumours which had been current, particularly in Glasgow, as to there was something seriously wrong with the Burntisland Oil Company's mines. The CHAIRMAN said the stories which bad been in circulation had been got up for purely speculative purposes. Bailie Richmond expressed his full satisfaction with the explanation given, and the motion wan then adopted. On the motion Bailie Richmond, seconded by Dr Dickson, Edinburgh, the Directors' remuneration for the year was fixed at the same amount as last year's.
On the motion of the CHAIRMAN, seconded by Mr Cree. Edinburgh, Bailie Younger, Edinburgh and Mr W. D. Gillies, Glasgow, were unanimously re-elected Directors. Thereafter an extraordinary meeting of the Company was held, for the purpose of considering the resolutions authorising increase the capital the Company from 13000 to 14000 shares of £l0 each, by the issue of 1000 additional shares of £10 each the new shares to be issued to the present shareholders, in proportion the shares held by them, at the price £ 14 per share (£9, 10s paid)10a.

The Chairman in moving the adoption of these resolutions explained that £10000 was required for the additional retorts, and that it would be necessary to have additional workmen's houses, which would require £2000 or £3000. They also wished to keep in hand a sum with which, if necessary in future to erect the candle works and to connect their works with the lines proposed to be constructed by the Railway Company from the Forth Bridge to Burntisland.
Mr Greenlees, Paisley, seconded the motion, which was unanimously agreed to.

Dunfermline Saturday Press – Saturday 31 May 1884.

THE BURNTISLAND OIL COMPANY. The annual meeting of the Burntisland Oil Company (Limited) was held on Monday in Edinburgh—John Waddell, Esq., of Belford Bark, chairman of the Company, presiding. There was good attendance of shareholders, among whom we observed—Thomas Wood, Esq., of Baileyfield, Portobello ; Robert Younger, Esq., Carlton Terrace, Edinburgh ; Richard Brown, Esq., Largo; William D. Gillies, Esq., Glasgow. Director* —W. N. Grainger, Esq., Edinburgh general manager and secretary ; Andrew Beith, Esq., Bathgate ; James Bryson, Esq., Dalkeith ; George Crawford, Esq., Edinburgh ; James Cree, Esq., Edinburgh ; Edward Crombie, Esq., Burntisland; George Dickson, Esq., M.D., Edinburgh; Alexander Douglas, Esq., Linlithgow ; William Dunlop, Esq., Bathgate; James Ford, Esq., Edinburgh; William Graham, Esq., Stirling; John Green- less, Esq., Paisley ; George M. Johnson, Esq., Edinburgh ; Thomas Johnson, Esq., Glasgow ; James M‘Gilchrist, Dumbarton; Bentley M‘Leod, Esq., Edinburgh; Gavin Paul, Esq., Edinburgh ; Thomas Smith Pearson, Esq., Edinburgh; David Richmond, Esq., Glasgow James Robertson, Esq., Dumbarton ; William B. Smith, Esq., Glasgow; George Waddell, Esq., Edinburgh ; and James Spencer, Esq., works manager; and J. H. M. Bairnsfather, Esq., law agent of the Company.

The Secretary (Mr W. N. Grainger) submitted the report, which has already been published. The Chairman then moved the adoption of the report, which was held read. In doing so, he said that this was now the third general and the second annual meeting of the Company, and although he had stated when they last met that the works were then practically completed, and the most of them in operation, still they would see from the large item of expenditure under that head that a considerable amount of work was done during the last financial year. The whole of the works and plant were not in operation until June last, and the lubricating oil department was not in full going order until October; so that they would see that they were not able to get complete advantage of their plant during the whole of hist year. On account of the large amount paraffin scale which they got from their shale they found it impossible to put it all through with the refrigerators that were first erected, and the directors at once made up their minds to order a Pontifex & Wood’s Patent Refrigerator, the first machine of this kind that had ever been erected in Scotland, and he was glad to say that it had proved great success. The works, so far the freezing power was concerned, were now in position to put through the produce of 600 tons of shale per day—that was double the amount originally intended. Notwithstanding that the works had not been in full operation during the past year, the profits derived from that year amounted to £30,404 8s. From that sum there fell to be deducted for interest loans £1828 18s, leaving balance of €28,880 9s Id, which the directors proposed to apply follows; Dividend at the rate of 20 per cent., €20,490 ; writing of cost of transfer of property, £400; depreciation on works, mines, and plant, and also for minerals on the estate, £5,543 15s ; leaving balance to be carried forward of €2,146 13s 7d —in all, €28,580 9s Id. With reference to the third of these heads, ho should say that the minerals belonged the Company, and therefore they had not to pay a lordship to a proprietor in the ordinary way, but they wrote of a certain sum from the value of the estate, and that was included in the €5,543 19s. The works and mines had been thoroughly maintained at the cost of revenue, and he was glad to state that the Company had made no bad debts. (Applause.) He also found that the expense of selling their products was equal only to 1.36 % of the total sales of the past year. The directors had secured loan over the estate, and this had been arranged on very favourable terms. The amount written off for minerals each year was to be paid to the lenders, so that before many years from that source this loan would be wiped of. The addition to the capital expenditure, although somewhat large, had been absolutely necessary to complete the works ; and their refining plant was now in a position to put through nearly 500 tons of shale per day, which was about 200 tons more than was originally contemplated. To enable them to employ this machinery, it was necessary to erect other two or three benches of retorts, and at an extraordinary meeting subsequently held the directors would ask power to raise additional capital for this purpose. The cost of erecting these additional retorts would not exceed £10,000, and they would be able to put through more than a-third more shale than at present at a very small extra cost, the only additional expense being the men who would attend the retorts. That would be a source of considerable advantage to the company. regarded the mines, the average daily output of shale was at present about 250 tons, but in two months they would able to put out about 500 tons per day. The shale workings now consisted of three different mines, which were all good working order, and in every respect showing well. In No. 1 mine an up-throw of about 16 fathoms had taken place, but instead of driving a new mine, they were continuing the present No. I mine level, and were hourly expecting to get to the shale. He had just received a statement from the manager of the mines, in which he said that he believed he was within few inches of the bottom of it. After referring to the depressed state of the market for the by -products. and the counter effect of the improvement of the burning oil market during the last year, and which was likely to continue this year, the chairman said the Burntisland shale was the best that was being worked at the present day, and that should the market for shale become further depressed it was the intention of the directors to erect a candle manufactory at cost of about or £5000 to £6000. This was one of the items of prospective cost included in the extra capital they proposed to raise. Mr Waddell concluded by paying high compliment to Mr Grainger, the general manager, and Spencer, the works manager, for the manner in which they looked after the interests of the company. Ex-Provost Wood, Portobello, in seconding the motion, said that there had been, as they might expect in all large works and new undertakings, some difficulties to contend with. In their mines they had met with what is technically known as an “upthrow,” of some sixteen fathoms. After consulting with their engineer, it was decided to drive a heading through that upthrow, but before doing so they went to the top of the upthrow, and they there discovered the shale. It would, however, have been » unprofitable undertaking to have attempted to work the shale there, and consequently they drove headway through the upthrow, and in level direction, and they were now in the position of being, he believed, within a foot or two of the shale itself. In order to test the position of the shale, few weeks ago they put down a bore at something like forty-six fathoms, and they discovered the shale not only in as good condition they had found it hitherto, but even better. (Applause.) By the course which they had followed the shale was now above them, and in the position of being wrought at the very lowest possible cost. No. 3 mine, which had been sunk during the past year, had proved satisfactory in every respect, and they were now fitting up the machinery requisite to work it, and in the course of two or three weeks it would be in complete working order. The increased power of production would enable them during the present year to put through from one third to one-half more than they had done during the post year ; that was more than the Chairman had stated, because last year they were for only for seven or eight months in complete operation, and the increased cost of working would not be correspondingly increased, the profits realised would be much larger. Bailie Richmond, Glasgow, said should like to have information as to whether there was any truth in the disquieting rumours which had been current, particularly in Glasgow, to there being something seriously wrong with the Burntisland Oil Company’s mines. The Chairman said that these rumours had been raised without any grounds whatever, and he could assure the shareholders that when this up-throw took place the directors knew the position of the minerals, and they were not concerned in the least to the ultimate result. He had no hesitation in saying that a better field than theirs was not in existence at the present day, and that their prospects were never better. The stories which had been in circulation had been got up for purely speculative purposes. Bailie Richmond expressed his full satisfaction with the explanation given, and the motion was then adopted.

MORE TEXT IN ARTICLE. Motions: Fixed the Directors’ remuneration, re-elected directors, re-appointed auditors.
Thereafter held extra-ordinary meeting to consider motions authorising increase in thr capital of the Company from 12000 to 14000 shares of £10 each. New shares at £14, £8 10s paid. Money required for additional retorts and new houses (requiring £2000-£3000). Also keep some money to erect a future candle works. And to connect the works with the lines proposed to be constructed by the railway company from the Forth Bridge to Burntisland.

Fifeshire Advertiser - Saturday 31 May 1884

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1885 Annual General Meeting

BURNTISLAND OIL COMPANY. - The third annual meeting of the shareholders of this company was held yesterday afternoon in the offices of the company, Hanover Street, Edinburgh. Mr Waddell, chairman of the company, presiding. The Chairman, in moving the adoption of the report, a summary of which has already appeared in the Herald, said --When they last met the shareholders authorised that an additional issue of 2000 should be made for the purpose of improving and extending the works, and these shares had been all taken up by their own shareholders. Since then the directors had been engaged in carrying out the proposed extensions and improvements,: upon which they have spent capital during the year to the extent of £21,354 11s 3d. In the last five months of the year covered by the report about 500 tons of shale per day had been worked out and distilled. During the year 125,000 tons of shale had been raised, and 116,000 tone had been used, from which they had manufactured 3,578,000 gallons of oil, equal to a vield of 31 gallons per ton of shale. The profits derived from this extent of working for the year amounted to £29,613 4s 11d, to which had to be added - (l) The balance carried forward from last year, £2146 13s 7d; (2) amount standing at credit of reserve fund, £1000; (3) amount received as premium on new shares, £11,000 - £14,146 13s 7d- making a total for the year of £43,759 18s 6d, In connection with these figures it might be mentioned that the directors had resolved to discontinue the reserve fund as a separate fund, and rather to increase the amount annually written off for depreciation. They also recommended that the £11,000 of premium received upon the 2000 new shares be written off. It might be of interest to know that if it was agreed to write of these sums the amount of capital written off for depreciation during the two years and five months the works had been in operation would be equal to 20 per cent, of the whole capital. They recommended that the balance of £43,759 18a 6d at the credit of revenue should be disposed of as follows (1) Dividend at the rate of 20 per cent, per annum, £20,490; (2) writing off cost of transfer of property, &c., £400; (3) depreciation on works, plant, and minerals, £19,500; and carrying forward a balance to current years account of £3369 18s 6d. As stated in the report, the whole of the works and mines had been thoroughly maintained at the cost of revenue. The mines were at present in excellent condition, and could if necessary be worked to the extent of 600 or 700 tons per day. The estate upon which the works are erected, and from which most of the mineral is derived, is the absolute property of the company. The Board had leased two mineral fields adjacent to their own, both of which contain valuable shale and are within 300 yards of the works, while the shale in these two fields was drawn from the same mines as their own. Regarding revenue, he was sorry to say that the oil market throughout the past year had been in a very depressed state, and although the burning oil had fully maintained its price the other products had considerably fallen in value. The reduction of prices during the year, as compared with the previous year, was equal to not less than from 5 to 10 per cent on the whole capital, so that had prices been maintained at their previous figures they should have been able to pay a dividend of at least 25 to 39 per cent. He was, however, glad to state that by careful and economical management, and the adoption of improved appliances, the cost of production of all their manufacturers bad been considerably reduced. Coming now to speak of capital expenditure, he stated that during the past year two additional benches of retorts had been erected, and also additional hydraulic presses, tanks, stills, &c. The mines had also been extended, so that they were now working 500 tons of shale per day, but to enable them to continue to do this without any hitch or stoppage it would be necessary to erect another bench of retorts, so as to ensure that all seven should be kept constantly going, seeing that cleaning and repairs were sometimes required. This part of the work would require about £4000, and would ensure that nearly 5,000,000 gallons of crude oil per annum would be turned out. It might also be necessary to build a few more houses for workmen. With these exceptions, however, it was not expected that much capital expenditure on the works would be required during the current year. The directors had been anxiously engaged during the past year in trying to get the works connected by a branch railway with the North British Company's main line at Kinghorn, but they had not, so far, been successful, Some six or seven different properties had to be traversed, and the terms asked for the necessary land were such that the directors could not see their way to concede. They were, however, carrying on negotiations with the view of securing a connection by another route on more reasonable terms. (Applause.) Mr Brown, one of the directors, seconded the motion. They possessed, he said, a very valuable shale-field, and it was no doubt right that all their shareholders should know that the property belonged to the company in fee simple. They had sunk three mines, and these were all at work. The whole existence of the company depended on the extent and value of the field, and they had already proved this, and the shareholders might keep their minds at rest, notwithstanding the rumours which had been set about regarding the shale being exhausted, and trap dykes, &c., having interrupted their working, These rumours had made people a little suspicious about the company, and they had sold their shares, but so far as the directors' experience had gone the field was a thoroughly good one. With reference to the expenditure which is to be made of £4000 for a new bench of retorts, and probably some additional workmen's houses, he was happy to state that they had plenty of money to do that. Speaking of the officials of the company, he could assure the meeting that they were in the position of having very good and thoroughly able men at the head of affairs, with whom the directors got on exceedingly well. Prices were at present low, but they did not feel 'it so much, as they had been very economical. The cost of the shale had been reduced very considerably since last year-nearly 1s per ton-(applause)-and when they considered I that their output was 500 tons a day, that meant a large sum of money, and they still hoped for further reduction. (Applause.) Bailie Richmond, Glasgow, asked what induced the directors to abandon the scheme for a reserve fund-because the chairman had said nothing about it, and there was nothing regarding it in the report? The Chairman said that a reserve fund must either be kept lying in bank or be laid out on heritable property, the directors being responsible for it. As they had not, since the company was started, lost £200 in bad debts-in fact, he did not think it was more than £100-and as anything at their works that might he destroyed by fire was insured, the directors did not think they required a reserve fund, and they thought it would be more profitable to get the benefit of the money in ex- tending the works and making improvements. According to law they could not use a reserve fund for that purpose, and the directors therefore resolved to write off something additional off the capital each year, and this they did in the best interests of the company. (Applause.) Bailie Richmond expressed himself satisfied, and said he had heard a good deal of rumours in Glasgow in reference to the value of their property being much less than they stated and that the supply of shale was very much smaller. To satisfy himself, however, he visited the works, and saw the whole of them in operation; and he was glad to think that the directors had resolved to have additional retorts, as that was what struck him as necessary when he was at Burntisland. He would advise all the shareholders to visit the works, for he was satisfied that they had shale sufficient for their requirements for a long while. (Applause.) On the motion of the Chairman, seconded by Mr Wm. D. Gillies, Glasgow, Mr Brown was re-elected a director. (Mr Gillies remarking that if they continued writing off capital at the rate proposed this year, the whole value of the minerals would be written off in nine years. (Applause,) Mr ROBERT Douglas, Edinburgh, seconded by Mr GAVIN PAUL, Edinburgh, moved the election of Messrs Lindsay, Jamieson & Haldane, C.A., as auditors. This was agreed to. In reply to Mr FORD, Leith, the Chairman said that, so far as they knew at present, the minerals were lying over the whole estate, which extended to between 300 and 400 acres, and they had leased 150 or 200 acres in addition. 'These minerals were quite equal to supply them at the present output for, it might be, 35 or 40 years, unless they extended the works. The seam they were working at present was between 5ft. and 6ft. in thickness, and the deeper they went the more valuable the minerals got, At first they had great difficulty in getting 30 gallons of oil per ton, but now they got that quantity easily, and that quantity would be exceeded by and by. There were other fields adjacent to theirs for acquiring which they were on terms with the proprietor, but they were not very pressing, as they were not quite in a position to work them. Bailie Dougal, Linlithgow, asked if the chairman could tell them why in the face of such a balance-sheet the shares were not selling at £25 (Laughter.) The CHAIRMAN said the shares were standing t below their real worth, but it was not easy to explain the cause. The directors were almost at their wit's and to understand why it should be so. Perhaps it was because the company was so young. He might tell them, however, that nearly all the a stock was held for investment and not for speculation, and with the exception of 300 or 400, certainly not 500 shares, all stock was held firmly by investors. Notwithstanding the transactions quoted on the share list, they never had any transfers, E I which showed that it was sales for stock jobbing purposes, or by some one trying to ran down the stock. The directors could not stop that, but they recommended shareholders to retain their shares, as they were really worth keeping. (Applause.) ' 1 In reply to a question by Mr T R Johnstone, the CHAIRMAN said that the new shares would now begin to rank with the original shares. A vote of thanks to the Chairman, on the motion of Bailie RICHMOND, terminated the proceedings.

Glasgow Herald - Tuesday 26 May 1885

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1886 Annual General Meeting

THE BURNTISLAND OIL COMPANY. The report by the directors to the fifth annual general meeting of shareholders for the year ending 31st March 1886 states that the gross amount at credit of profit and loss account, which includes the balance of £3369, 18e 6d brought forward from last year, is £33,072, 9s 6d —this is after providing for repairs, maintenance, interest, and all other working charges—and the directors recommend to the shareholders that it should be disposed of as under The sum of £23,890 in payment of dividend at the rate of 20 per cent, per annum, making total sum of £73,407, 10s in dividends in three and half years. The sum of £400, to be written of for proportion of transfer, interest on purchase of estate, and cost loan, leaving balance of £534, 15s 9d to be written off as depreciation for the year on the sum expended on works, plant, and minerals, as at the date of last balance, £7581, which makes the total depreciation written off in three and a-half years £35,337, exclusive of £2624 for formation, transfer, and other expenses making in all £37,961. The surplus balance of £l201, 9s 6d to be carried forward. The development of the company's shale fields has been highly satisfactory. A large area of valuable shale has now been proved and opened up. Besides giving the required daily output for the retorts, there has been added to stock during the year 10,169 tons, making a total of upwards 25,000 in stock. The mines are capable of yielding an output of 700 tons per day. The mineral field and agricultural estate, expending to 358 acres, are the absolute property of the company. The expenditure on capital account on all the departments during the year amounts to £12,952, 16s Id. Your directors propose to increase the works by adding a wax refinery and candle manufactory. This will enable the company to sell their solid parafin, which continues to be of the same superior quality, either as candles, wax, or scale. The extensions will increase the production at a small addition to capital, and materially lessen the costs. They also propose to construct a railway between the works and the North British Railway's main line at Kinghorn, distance of less than two miles, the land for which has all been bought the Company on reasonable terms. The estimated cost of same and for construction i* £ll,000, The railway will be a great convenience, and will effect a very large saving to the Company. In order to meet the expenditure for these additions the works it will be necessary to increase the capital of the Company, The directors, therefore, recommend to the shareholders the creation of 3000 additional shares of £l0 each, at a premium, thereby increasing the total authorised capital to 17,000 shares £l0 each.

Fife Free Press, & Kirkcaldy Guardian - Saturday 22 May

THE BURNTISLAND OIL COMPANY. It appears from the annual report of this company that the gross amount at the credit of the profit and loss account for the year ending March aud including £3369 brought forward, was £33,072. The directors recommend that of this £23,890 be paid in dividends the rate per cent. The balance left on hand is £1201. In three and a half years a total depreciation of £35,337 has been written of. A large area of valuable shale has been proved and opened up. 'There now a total of 25,000 tons shale in Stock, and the mines are capable of yielding 700 tons a day. The directors propose to increase the works by adding a wax refinery and candle manufactory. This will enable the company to sell their solid paraffin, which continues to be of the same superior quality, either as candles, wax, or scale. They also propose to construct a railway between the works and the North British Railway's main line at Kinghorn, which will cost £11,000, and they recommend the creation of 3000 additional shares of £10 each, at a premium, thereby increasing the total authorised capital to 17,000 shares each.

Edinburgh Evening News - Wednesday 19 May 1886

BURNTISLAND OIL COMPANY. The fifth annual meeting of shareholders of the above company was held the company's offices, No. 15 Hanover Street, Edinburgh, this afternoon—Mr John Waddell, contractor, in the chair. In their report published a fortnight ago, the directors recommended payment of dividend at the rate of 20 per cent out of the profit for the year, which amounted to £33072. In proposing adoption of the report, the chairman said their output of shale showed au increase of 20 per cent over that of last year, and the shale manufacture had increased in the same ratio, being 25,000 tons more than in the corresponding period the previous year. The two matters of greatest importance in the future were the making of wax refinery and candle manufactory, and the new railway from Kinghorn to the works, both of which, the directors were convinced, would beneficial to the company.-—Ex-Provost Wood, Portobello, in seconding, said it was now admitted that crude oil was only a by-product, and that it was from those important elements, such paraffin, scale. ammonia. and such like articles that profits were chiefly derived. During the past five months they had been getting an increased amount of scale, amounting to about 2-1/2 per cent, and equal to about £6 per ton. Before that they had the largest yield that the trade knew of, and now they were getting a yield which was equal to an addition of about 15d per ton to their shale. At present they were getting over 30 gallons from each ton of shale, and the production of shale now cost 9d per ton less than it formerly did. The report was adopted. The chairman and Woods were re-elected directors. At an extraordinary meeting, immediately afterwards, it was unanimously resolved to issue 3000 additional shares to the present holders at a premium of £3 10 per share.

Edinburgh Evening News - Monday 31 May 1886

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1887 Annual General Meeting

Burntisland Oil Company.—The annual meeting the Burntisland Oil Company was held at Kinghorn on Tuesday. The chairman, Mr John Waddell, Edinburgh, having explained the position of the Company, a shareholder asked how much the new railway in connection with the works had cost. The chairman said they had yet to obtain that information; it would take a few months before it was ready. Altogether, when completed, the railway would cost something like £20,000, he believed. The Company had to buy great number of houses, and they would, of course, receive the rent of them, which would reduce the cost of the line. The candle works would cost about £10.000. From £30,000 to £32,000 would cover the cost of both. They paid £3000 for land and property, and £17,000 for the construction of the railway. Mr Robert Younger and Mr William D. Gillies, Edinburgh, were re-elected directors, and the auditors were reappointed, after which the meeting terminated with a vote of thanks to the chairman

Dunfermline Saturday Press - Saturday 04 June 1887

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1888 Annual General Meeting

The seventh annual general meeting of the Burntisland Oil Company (Limited) was held yesterday afternoon in the registered office of the company, 15 Hanover Street, Edinburgh – Mr Wm. N. Gillies presiding.

The CHAIRMAN, in moving the adoption of the report, which had already appeared in the Herald, said the directors very much regretted that the report was not so favourable as in recent years. For the first time in the company's history they were unable to declare a dividend. He proceeded to speak of the causes of this state of matters, including the crisis in the trade, keen competitors, low prices, and the miners' strike. The loss to the men employed by all the companies by that strike was estimated at £65,000. When he stated that the production of the Burntisland Company was by that strike lowered about 30 per cent, they could see how great was the loss to the company. The benefits expected from the newly completed railway at Kinghorn were completely nullified by the strike. Another principle cause for the deficiency shown in the balance-sheet was the fall in the value of the stocks held by the company, more particularly in paraffin scale. As the prices for products generally were now so low, it was very unlikely that any loss from this cause would occur during the current year – not to speak of the arrangement among the companies by which minimum prices were to be maintained. The Chairman next spoke of the £100,000 of debentures which had been offered, and for which the shareholders did not apply to any great extent. He detailed the arrangements which had been given in the report, by which the directors and their friends had subscribed for a large proportion, and for the balance not applied for to be taken up. He referred to the arrangement between the companies and the Standard Oil Company of New York fixing minimum prices, and said he thought the companies had acted wisely in fixing the minimum prices so low that they could not adversely affect consumption. With respect to the oil-works and mines, he was glad to be able to state that these were satisfactory condition. The works were putting through the daily quantity of shale with which it was originally intended they were to deal. The mines were in good order, and were supplying without difficulty the necessary amount of shale for the retorts. The directors were now so satisfied with the extent of shale in the company's own mineral field, and in those they had leased, that at present they considered any further outlay in this direction unnecessary. The capital expended during the year was considerable, amounting to £17,132. This amount, however, they directors had been able to reduce to £6632 by writing off £10,500, the amount of premium on the last issue of new shares. This would make the total amount written off capital expenditure for depreciation in five years and five months, £55,562 or equal to 11 per cent, per annum. During the same period the company had paid in dividends to its shareholders £87,769. These two sums together amounted to £143,331, the paid-up capital of the company amounting to £144,500. The candle works were now in full operation, and in first rate order. They had cost a considerable sum of money, but he was not aware that there was a better constructed or better appointed candle work in the country. They had secured the very best agents obtainable in London, Manchester, Dublin and Belfast, and they had found no great difficulty in disposing of their make of candles, which had already taken their place alongside makes of much older standing. He concluded by speaking of the great loss the company had sustained by the death of the late chairman, Mr John Waddell of Inch.

Mr DAVID TODD, Glasgow, said he objected to the adoption of the report, which he described as a piece of romance of a tragic character financially. It was not honest.

The CHAIRMAN interrupted, on the ground that his motion had not been seconded, and some altercation arose owing to Mr Todd refusing to sit down. This, however, he ultimately did, and Mr ROBERT YOUNGER, Edinburgh, seconded the motion for the adoption report.

Mr RODD moved that the report be not adopted, but failed to find a seconder.

Mr J.D. WALKER, Edinburgh, asked a number of questions. He did not think the chairman had fully elucidated some points which had been discussed outside. He thought it was a pity the oil companies of Scotland did not issue profit and loss accounts as well as balance sheets. He pointed to the great contrast between the results now shown and the results the company had formerly reached. The loss of £10,000 was further aggravated by there being no allowance made for depreciation. He asked on what terms the special loan had been under-written. Did the debt of £36,000 due to the bank include a loan of £5000 which it had been stated was guaranteed by the directors, and did it include the loan of £12,000 advanced by the bank to the directors? Why had the directors not deducted from the account the value of the shale raised to 31st March? He also asked several questions as to the coat of the candle-work and railway, and of the agencies in London and elsewhere.

The CHAIRMAN said that Mr Walker was a partner of the firm of Walker & Watson, stock-brokers, and he proceeded to quote figures in reference to the company from a circular issued by that firm. He compared these figures with the statistics taken from the accounts in order to show that Mr Walker's figures were erroneous to the extent of about one-third of the capital of the company. In regard to a profit and loss account, he thought limited companies often gave too much information to their shareholders. He believed, however, that the accounts were prepared in a similar way to those of other companies. As to depreciation, it was true that they had not written off anything for it this year, but he pointed to the large sums that had already been written off in that way. Regarding the conditions of the debenture issue, the directors, their friends, and some of the shareholders subscribed about £50,000. They had to pay the mortgage on the estate of the company and the calls on share loans, and it was absolutely necessary that the money should be got. He was not prepared to tell them of the terms and conditions but he might say that the financial people who had agreed to take up the remainder of the debentures could be called upon by giving them 14 days' notice to do so. They would take up whatever sum remained after the 6th September, up to which date the shareholders could still subscribe. Therefore, he said, they had to pay something for their advantage. But the whole thing would not cost so much as 7 per cent. (Applause.) As to the scale of Kinghorn, he did not believe that they had a hundred tons, an amount which was not necessary to carry on the candle works. He proceeded to speak of the railway, and held that it had been very cheaply made by the Messrs Waddell under their late chairman's own superintendence. He was not prepared to say how much the agencies in London and elsewhere cost, but he might say they would bear favourable comparison with the agencies of any of the other companies.

Mr McGREGOR, Southport, complained of the defective nature of the report as not giving sufficient financial details. Regarding the debentures, he thought the shareholders had not been allowed a sufficient opportunity to subscribe for them. A number of other questions having been asked.

The CHAIRMAN, on the invitation of Mr McGregor, indicated the prospects of the company for the future. He considered that the oil trade generally must revive. He pointed to the fact that Russian oil produced only about 30 per cent. of burning oil, and taking this into account along with the cost of carriage and the absence of bye products, he thought that the Scottish oil trade need not have any fear of this Russian competition. The company had a good mineral field, and if the business was well conducted and only moderately profitable they would do very well indeed.

Major WILD moved that a committee of shareholders should be appointed to make inquiry into the state of the company, and to confer with the directors. The motion failed to find a seconder, and accordingly lapsed.

The report was adopted, and Mr George Waddell was appointed a director. The auditors were re-elected, and a vote of thanks to the Chairman closed the meeting.

Glasgow Herald, 6th June 1888

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1889 Annual General Meeting

BURNTISLAND OIL COMPANY. The eighth annual meeting of the shareholders of the Burntisland Oil Company (Limited) was held yesterday afternoon in the offices of the company, 15 Hanover Street, Edinburgh-Mr W. D. Gillies, Glasgow, presiding over rather a small meeting. The Chairman, in moving the adoption of the report (which has already been published in these columns), said that, though it was not so satisfactory as had been expected nor as could be desired, It contained at least a plain and straightforward statement of the true position of the company. This was the second year in which they had been unable to declare a dividend. The quantity of shale mined last year was greater and the cost per ton less than in any previous year in the company's history. The yields per ton had been a fair average. The candle works, which before had been to under a separate manager, were now under the of same manager as the oil works, and the directors were of opinion that the result of the change would be beneficial. With that exception there had been no change in the management. One of the chief reasons for the falling away was the to great fall during the last two years in to the prices obtained for shale products, more especially in paraffin scale and wax. The company's yield of scale was very high and of the very best quality, and if the former prices had been maintained the difference in the company's favour would have been about £35,00 per annum. The candle department also was very largely responsible for the unfavourable result of last year's working. Though they were able to produce first-class candles and sufficient quantity of them, their agents found last year considerable difficulty in disposing of anything like the possible make. Having only just entered on this branch of the business, they had found it difficult to get a fair share of orders in face of the strong competition of in the older firms. The small quantity made and sold consequently increased the proportionate cost of production. On a representation made the directors, the Mineral Oil Trade Association had bought about half of the stock of candles at terms satisfactory to the company. For the current year the prospects of this branch of the business were very satisfactory. The agents were booking larger orders, and the directors were hopeful that this department would during the current year show a fair profit. The issue of Debenture stock had been completed, though it would it have been done more easily if the shareholders had responded at once to the appeal made to them. It was satisfactory that the agreement between the Scotch and American companies for the regulation of prices and the control of production had been renewed for another year at it practically the same terms as before. It was very likely that in the course of two or three months an effort would be made to raise the price of scale, and if that could be accomplished the effect on the Scotch companies would be most favourable. The capital expenditure of the company last year had been very moderate, and was likely to be still less during the current year. The whole of the retorts had been repaired. and the entire cost charged to revenue. The mines continued to supply shale plentifully, and of good quality. 'The works, mines, and plant had been efficiently maintained at the cost of revenue, and were all in first class order. The manager and the directors were doing all in their power to increase the yields and reduce the costs. The most rigid economy was being enforced, and he was very hopeful that the results of the current year's transactions would be more favourable than last year's though the latter showed an increase over the year before of about £11,000. Some time ago, when the price of scale had fallen to the very low figure of 1-7/8d per lb., they had a very large supply. and they accumulated it til it i reached 600 or 700 tons. Rather than sell it at the low figure, the directors got an advance from the bank upon its and their own security, and they had since sold it profitably and paid all costs. The approval of the shareholders was asked for the transaction. Regarding the company's railway at, Kinghorn, 50,000 tons had passed over it during last year, effecting a saving of £000 compared with the cost of cartage. In this way in a few years the whole Cost of the railway would be returned to the company. The amount written off in depreciation since the formation of the company was £55,562, and the sum paid in dividends was £87,769, altogether £143,331.
Mr Robert Younger, Edinburgh, seconded the I motion.
Mr MacGregor, Southport, said be thought that there should he an increase in the number of directors. There were only three at present, while there used to be seven, They had an energetic secretary and an energetic manager, but the question was whether the Board and these gentlemen were sufficiently knit to give that force and energy to the movements of the company that were required. He did not know but that they should have a man, as the Broxburn Company had, in touch with both the works and the outlets of their products. (Hear, c y hear.) In the matter of scale, he believed they were producing it at heavy loss, and that he understood was partly due to the action of the Mineral Oil Trade Association. If the association was made to oppress any particular company, that company ought to be in a very strong position to maintain its ground. At the approaching conference he thought the Board should take up a strong position in regard to the price of scale. They had probably turned the corner now, and with a little patience and activity on the part of the Board and the agents, they should got into smoother water. In regard to candles were the company limited by the market, or was it because they were not so much in the running as the older companies?! The Chairman said the directors were most anxious to get assistance at the board. He had spoken very earnestly to several shareholders. but had not been able to get them to agree to join the directorate. One of the chief difficulties in regard to Glasgow business men was that, as they said, every time they came to Edinburgh to a meeting of the board they would, lose a whole day from business. Mr Younger had spoken to several men I in Edinburgh, but there were not so many people in that city who were qualified to go on the boards of oil companies. If the shareholders had any gentlemen to propose, the directors would be very glad to consider the matter. Regarding a managing director, the salary of such would be rather a serious business. In regard to scale, it was a very hard that the association should fix the price so low. It had never, in his experience, with one exception, been so low before. It was higher before the association interfered. He had personally held a very large quantity of scale, and last year ha sold it at nearly a farthing over the association price, which was thus shown to be unnecessarily low. The difficulty they had had to contend with in the association meetings was the attitude of Mr Bedford, of the Standard Oil Company, who was anxious to keep prices low, so as to encourage consumption. This might react on prices by-and-by, but meanwhile it was very difficult to get a higher a price than that of the association A halfpenny per pound of a rise in scale would give the company £10,000 a-year. In regard to the sale of candles, there was no doubt that was their weak point last year. But this year, so far, their sales had greatly increased. They would make their position by-and-by, for they produced the best scale in the market. The association price of candles had not shut up the candle works, as had been asserted. They were still going on at a moderate rate, but they would not do much during the warm weather.
Mr MacGregor said a statement which had appeared in a newspaper that the candle-works were shut up had done the company a great deal of harm, and had knocked the shares down £2, a fall from which they had not recovered yet. The Chairman said the works had never been shut. There were always some men employed, but there was never much done in the warm weather. They would only make as many candles as they could sell, as they could always sell the scale readily enough. If their agents continued to sell as they were now doing the candle-works would soon be going full. Regarding the railway, goods transported by it cost 2d per ton, while to cart them cost 1s 2d per ton. In reply to Mr Robert Douglas, Glasgow, the Chairman said the bad debts made during the year amounted to about £500. Since the commencement of the company they had made only about £1000 of such loss. The report was adopted. Mr Younger was re-elected a, director, the auditors were re-appointed, and a vote of thanks to the chairman closed the proceedings.

Glasgow Herald - Saturday 08 June 1889

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1890 Annual General Meeting

Burntisland Oil Company (Limited).--The ninth annual general meeting of the shareholders of the Burntisland Oil Company was held in Edinburgh yesterday—Mr W. D. Gillies presiding. The Chairman moved the approval of the report, which showed a debit balance £847 15s lid, and in so doing expressed the belief that the Company had now turned the corner, and that a season of prosperity was about to set in. The reasons for their inability to declare a dividend on the ordinary stock, after providing for the interest on the debenture loans, &c., he stated at length, the chief of which was that the Company had to contend with the want of sufficient accommodation for workmen. The report was adopted.

14 Dundee Courier - Saturday 07 June 1890

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1891 Annual General Meeting

The annual meeting of the shareholders of this company was held yesterday in the offices, Hanover Street, Edinburgh.  Mr Wm. D. Gillies, chairman of the company presided.

The CHAIRMAN, in moving the adoption of the report, which has already been published, and which proposed the disposal of a profit of £13,400 in payment of interest as debentures, losses &c., and in reducing the debit at profit and loss, said – When I had the pleasure of addressing you at our annual meeting on 6th June last year I expressed the opinion, then fully endorsed by my colleagues, that the company, after passing through two or three years of severe trial and depression, had at last turned the corner, and might be expected to again resume a period, if not of its former, at least of moderate prosperity. Notwithstanding, the results of last year's trading, which, although unfavourable on the whole, are certainly an improvement on the previous year, we still adhere to this opinion. The causes of our failure to realise the expectation formed at this time last year are glanced at in the report, and it could scarcely have been then anticipated that increased prices for fuel and other material, advances in wages of workmen, and consequent irregular working of the miners, as well as a protracted and disastrous railway strike, could together have combined to overturn the more favourable opinion which we held regarding the prospects of the company for the financial year now under review.  But such has undoubtedly been the case. We have paid in increased wages alone £5113 10s 8d over the previous year, about £3660 more for coal and chemicals, £665 for timber, in all £8827 13s 11d, or an average increase of 12.77 per cent. This is a very serious item in a business of the character and dimensions carried on by your company. I cannot help thinking it would be well if the workmen, when pressing their demands for increased wages, would try to remember that an industry can only be carried on so long as it continues to pay a reasonable return to those who have embarked their money in it, and that sooner or later, if such return is not forthcoming, it must cease to exist. Demands for increase of wages are often pressed by the workmen without accurate knowledge on their part of the conditions under which the industry in which they are engaged is carried on, and I cannot help saying that they should not forget that capital has its rights as well as labour, and that the benefits derived from working any particular industry cannot all go to only one of the interested parties.  You will perhaps remember that I stated last year at our meeting that I expected our increased profits would foot up £100,000.  Well, the actual increase has been £3019 8s 10s, or an average increase of 10.87 per cent.  This sum, you will notice, has been rather more than wiped out by the increased costs above referred to. The directors have exercised the most rigid economy in the matter of charges, agencies, and expenses of all kinds, and these have been reduced to the extent of about £1008 for the year, and we hope to effect some further economies during the current year. Debenture bonds have been retired to the extent of £13,640 up to the 1st April 1891.  £3910 have been re-issued, and a balance of £7730 is held by the directors in security for loans advanced to the company. The directors think it would be helpful to the company if the shareholders would come forward and take up these bonds, which bear a good rate of interest – namely, 6 per cent, and which they think are perfectly good securities.  Bad debts amount to £182 8s 1d, or at the rate of 13 per cent, or 6 per cent less than those of last year.  Had it not been for a certain bad debt in the candle department the losses from this source would have been only £14. In capital expenditure, the sum expended being very moderate, £3016 9s 7d, fully half of this amount on a new refrigerator, which has brought up our yield of paraffin scale to about 16 per cent, the highest yield we have ever obtained.  For the upkeep of plant £5008 has been expended last year, against £4064 for the previous year, which has all been charged to revenue. I am very pleased to be able to state that the candle department of the company's business continues to be satisfactory, and that a profit has been earned for the year ending March last, against a considerable loss of £900 for the previous year. The company's candles are now becoming favourably known in the trade, and I have not the slightest doubt but that our business in candles will continue to expand both in volume and profitableness. With regard to our prospects for the current year, I can only say that our coal contracts so far are made at a less price than these of last year for the same period.  Vitriol is also contracted for over the whole year at a considerable reduction in price, while caustic soda and timber are much about last year's prices.  Paraffin scale has, as you are aware, been advanced 7/16d per lb., and this should yield to the company taking last year's through put, an additional £9000, while it is hardly to be expected that wages or material can in any way be increased.  Indeed I look for a considerable reduction in these items as the year progresses.  The prospects of general trade are none of the brightest, but this will not be an unmixed evil to the oil companies in Scotland, which depend so much for their success upon cheap material and moderate wages to workmen.  In conclusion, I would like to emphasise the fact that the oil companies continue to work together very harmoniously under the Oil Association agreements, with great advantages to themselves, and it is hoped that greater benefits will accrue to them in the near future under these agreements, which, we hope, will soon include Scotch, American, and Russian burnings oils, which every one in the trade knows are being sold at much too much a low price.  Our mines are in a better position for putting out a large supply of shale than they have ever been, and could we only depend upon our miners working in a steady and fairly reasonable way the results for the current year would be much more favourable than they have been for the last two or three.  Williamson, Tweedie & Robertson's report for last year stated that the mines belonging to the company were in first-class order, and that there was shale sufficient for an output of 150,000 tons per annum for the next 25 years' irrespective of the shale in the properties leased by the company, and this report applies with equal truth at the present moment.  He was sorry there was no dividend for the shareholders, but he had by no means lost faith in the future of the company if they could only get their workmen to give them a proper output of shale.

Mr GEORGE WADDELL seconded the motion.

Mr ROBERT YOUNG, sen., said he noticed the directors had not been able to write off anything during the year, but he considered that on the whole the report was very satisfactory. It was perhaps less than some of them expected, but they all knew the circumstances under which the company laboured.  They owed a deep debt of gratitude to the directors, who had not for the last three years charged anything for their directorial work.

The CHAIRMAN, replying to questions, said it was not so much that the men did not work as that they did not go down into the pits regularly.  The company would have made a very good show if the men had only given them a proper output of shale.  They had plenty of shale, the works were in capital order, and he certainly thought they should have had £10,000 more than they had had.  The miners were paid by the ton.  Henderson retorts were in use, and were considered by the manager to be best suited to that class of shale.  They produced 16 per cent. of paraffin against a smaller proportion obtained by any other company.  The only thing they might get more of was ammonia.  But the matter was being looked into, and if it should turn out that another class of retort would suit them better there was no reason, except monetary, that they should not be erected.

Mr George Waddell was re-elected a director of the company.

The CHAIRMAN afterwards stated that the company, spite of the large sums it annually spent in wages and taxes in Burntisland and Kinghorn, found themselves being thwarted by these Corporations, which, for example, were trying to deprive them of their water rights. The directors had tried to be conciliatory, but he wished to make the intimation that they did not intend to abate one jot or tissle of their rights to any burgh, however ancient it might be.  They had large interests in that district, and intended to protect them. 

A vote of thanks having been awarded to the chairman, the proceedings terminated.

Glasgow Herald, 9th June 1891

Burntisland Oil Company.—The annual meeting of the shareholders of the Burntisland Oil Company was held in Edinburgh yesterday. Mr W. D. Gillis, Glasgow, chairman, in moving the adoption of the report, attributed the causes of the Company's failure to realise the expectations formed at this time last year to increased prices for fuel and other material, advances in wages workmen, and the railway strike. The increased expenditure from these causes was laid at £8827, or 12.87 per cent. The actual increase had been £8019, or an average increase of 10.87 per cent.

Dundee Courier - Tuesday 09 June 1891

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1892 Annual General Meeting

THE BURNTISLAND OIL COMPANY. The eleventh annual meeting of Burntisland Oil Company was held this afternoon in Edinburgh,—Mr W. D. Gillies, Glasgow, who presided, moved the adoption of the report, already published, which showed a debit balance of £5090, The “crush" had caused a very heavy expense. Great efforts had been made to put the mines again into good condition. A new pit had been sunk and shale of good quality found at a depth of about 50 feet, while the manager was confident that could raise shale at a low pride. It was expected to contribute greatly to reduce the cost of the entire output. Want of adequate capital to successfully carry the general operations had hampered the company. As to the future prospects of the trade it was impossible to speak with any degree of certainty. The present outlook did not seem bright. Mr Stewart, Glasgow, asked what was the cause the "crush" that had cost nearly £10,000. —The chairman said the roofs had come down and broken all their roads, And made the clearing of those roads a very great difficulty and very expensive.—Mr Stewart: That is the result. I want the cause. —Mr Waddell said they had they had to drive new roads, through the roofs and the rooms fallen down. No one understood those rooms when they started take out the stoops. No one could foresee it that time. Stewart : Has the " crush" stopped? Mr Waddell : Yes. Mr Stewart said that there was great dissatisfaction among the shareholders.—The chairman said the directors were by far the larger shareholders. They held nearly half of the debentures.— Mr Douglas said he thought the affairs should be wound up altogether.

Edinburgh Evening News - Friday 17 June 1892

1892 Extraordinary General Meeting

BURNTISLAND OIL COMPANY. An extraordinary general meeting of the share- holders of the Burntisland Oil Company (Limited) will be held on the 2d August, to consider proposals to reduce the value of the shares from £10 to £6 and to authorise the raising of additional capital. The shareholders, the report states, are already aware that during the year ended 31st March last the company sustained considerable loss, chiefly in consequence of an unexpected disaster in the mines, the effects of which have not even yet been entirely overcome. The loss thus sustained, along with previous losses, have considerably curtailed the company's working capital, and this is all the more severely felt at present, as since the end of the last financial year, owing to peculiar, and, as it is believed, entirely abnormal conditions of the trade, a very large proportion of the company's products have had to be put into stock, as they cannot be realised. The directors have taken the advice of professional experts in regard to the quality of the shale, the resources of the shale field, and the suitability and economy of the company's plant and methods of working, and they have been advised that it would be greatly to the company's advantage if the Young and Beilby patent retorts were substituted for the Henderson retorts presently in use at the works. The directors have also been advised that a sum of from £6000 to £8000 should be expended on the mines and machinery connected therewith. In order to carry out these improvements, and to provide for payment of the company's present floating debt and for a sufficient amount of working capital, there would require to be raised a sum of about £70,000. The retorts recommended are those of the Young and Beilby patent, and of these four benches would be required to deal with the company’s output of shale, the erection of the four benches costing about £30,000. As the erection of the new retorts will improve the value of the company's property and the security of the debenture- holders, it is proposed to apply to the latter to allow a proportion of the expense to be raised as a first charge on the company’s property. If that arrangement can be carried out, the money raised in that way would be obtained at a very moderate rate of interest. In order to facilitate the carrying out of the foregoing arrangements, the debenture-holders will at the same time he asked to allow the period of repayment of their debentures to be postponed for a further term of five years. Apart from the expense of the new retorts, a sum of about £30,000 is required for the purpose of paying of the company's floating debt and providing a sufficiency of working capital. Add to that till sum required for the alteration of the retorts and the improvement of the mines and it will be see that a provision should be made for the raising of about £70,000. With that view the directors have to submit the following scheme. It is proposed to reduce the share capital of the company by writing down the present Ordinary shares from their nominal value of £10 per share to £4 per share, thus reducing the capital to the extent of £102,000 (2) to authorise the issue of 7000 B Debentures of £10 each, in all £70,000, bearing interest at 7-1/2 per cent. These Debentures still be redeemable with a bonus of 20 per cent, in the event of the holders wishing to convert them into Ordinary shares of the company. The amount to be written off the Ordinary capital will, as already stated, be £102,000 and wilI be made up of the balance at debit of profit and loss, the outlay last year in connection with the "crush" in the mines, outlay in connection with agencies, expense connected with the issue of existing Debentures, and depreciation. When these arrangements shall have been completed, the position of tile company will be as follows:

LIABILITIES

  • 17,000 Ordinary shares of £4 each £68,000
  • 6 percent Mortgage Debentures £100,000
  • 7000 B debentures of £10 each £70,000
  • Accounts, Bills, etc due by Company, say £10,000
  • TOTAL £248,000

ASSETS

  • Property of Whinneyhall, Candle works at Kinghorn, Railway, Works, Plant and Machinery: £128,659
  • Stocks in hand and various debts: £50,000
  • Cash in hand, upwards of £38,000 will be expended on Mines and retorts: £69340
  • TOTAL: £248,000.

It is now necessary to give some indication of the prospects of the company in the event of the above arrangements being carried out. As the shareholders are aware, the great cause of the company's want of success during the last two or three years has been the increase in the cost of mining the shale. The directors consulted Mr David Rankine, ME. and CE , Glasgow who has reported that the mines are being rapidly got into order, and that consequently the costs will gradually be reduced, until the shale will again be mined at a rate which will compare favorably with the costs at any time since the commencement of the Company. The benefit to be thus derived will be realised when it is remembered that a reduction in mining cost of 1s per ton makes a saving of about 7000 per year for the Company. In order however that the mines may be worked to the greatest advantage, Mr Rankine recommends the expenditure of the sums already mentioned, £6000-£8000, as in consequence of the workings being now at greater depth, more powerful winding and pumping machinery is required. Further expenditure will also be needed for the development of no.4 mine which has recently been opened, but he considers that in view of the extent of the shale field to be won, the money would be well spent. The yield obtained from the present retorts as shown from the results of the past year has been 26.3 gallons of crude oil and 4.53 lb sulphate of ammonia per ton of shale. In July 1891, over 50 tons of shale were sent to Pumpherston Oil Works, for the purpose being tested in the Young and Beilby retorts in use there. The test was a thoroughly practical one, lasting for a week under the personal supervision of Mr John Hunter FIC FCS Edinburgh, a chemical expert, who was employed for that purpose by the Burntisland Company , and similar results were at the same time obtained by the officials of the Pumpherston Company. These results showed that when retorted in the Young and Beilby retorts the Burntisland shale yielded 27.62 gallons of crude oil, 2.30 gallons of spirit, and 24.30lb. of sulphate of ammonia per ton, an improvement on the present yield of upwards of one gallon of crude oil and 19lb. of sulphate of ammonia per ton. These results would affect a reduction in the cost of the shale and retorting of at least 1s 4d per ton, and this in a throughput of 141,000 tons would represent an annual saving of £9400. To the saving thus to be affected there will fall to be added a prospective reduction in the mining-cost, and a reduction in the cost of refining, and these together at a moderate estimate will, it is expected, amount to £13,000, giving in all an increased gross profit to the Company of about £22,000. and it must be borne in mind that this estimate is based on the present depressed prices of the products. This shows the great importance of getting the improved retorts and the great necessity of the present scheme being supported if the present share- holders are to preserve their interest in the company. The directors therefore trust this scheme will meet with the approval and support of the shareholders, as failing in its doing so, it is to be feared that the shareholders will almost certainly sacrifise- their whole interest in the company. Though at the present time the mineral oil trade is passing through a period of great depression, the directors cannot but think that with improved plant and methods of working now proposed, with the prospect of a further fall in wages and of coal, and other supplies being obtained at a reduced rate, there is good reason to believe that the company may yet-he made to yield a good profit if it is possible for any oil company in Scotland to do so. The following is a statement of the profit and loss account of the company since its commencement:

1883 profit £14,698

1884 profit £27,523

1885 profit £29,613

1886 profit £29,723

1887 profit £14,866

1888 loss £10,905

1889 profit £1,215

1890 loss £845

1891 profit £5593

1892 loss £5,026

TOTALS loss £16,840

TOTALS profit: £123,116, minus £16,840 = net profit £106,276

Glasgow Herald - Monday 25 July 1892