In the pub at Orepuki on the southern coast of New Zealand's South Island is a grey piece of rock sitting on the bar. It doesn't look anything special, but it will burn if you light it, as a miner discovered in the 1870s when he used a similar piece of stone for a hearth. It is oil shale.
The story of its exploitation in the Orepuki area is one of hope, economics and disappointment. The main type of liquid fuel used in New Zealand in the late 19th century was kerosene - used for lamps. The oil from shale could also be processed into the other main form of lighting - candle wax.
The area of shale was leased by a mining company, after certain assurances from the government of the time with reference to the price of kerosene. Imported kerosene was subject to customs duty, which made the price for the consumer high enough for a local product to be competitive. On this basis the mine was opened, the bricks burned and the equipment for a refinery bought.
SOUTHLAND NEWS NOTES.
(From Our Own Correspondent.) Invergargill, March 7.
On Saturday Messrs Watson and A. Burt, from Dunedin, were down inspecting the progress made at the Orepuki Shale works. The new proprietors of this claim are spending a large amount of money on the works. They returned to Dunedin on Monday. -Otago Witness, 9/3/1899.
Work is being pushed on apace at the Orepuki Shale Works, and over 70 men are employed there now. Two large boilers passed through Invercargill on their way to the mine last week. I noticed Mr Watson was down last week having a look round. -Otago Witness, 11/5/1899.
MINISTERIAL VISIT
The Right Hon R J Seddon, Premier, will arrive in Riverton this morning. He will be accompanied by the Hon John McKenzie, Minister of Lands and Agriculture; Hon J G Ward, Colonial Secretary, Postmaster General and Minister of Railways; Hon W Hall-Jones, Minister of Public Works; Hon W C Walker, Minister of Education; Hon James Carroll, Native Minister, and Messrs M Gilfedder, MHR, and J A Hanan, MHR for Invercargill. They will be received by his Worship the Mayor (Mr D Durbridge), and councillors, and, after having partaken of light refreshments, will be driven to the eastern beach, thence as far as Hay’s Hill, South Riverton, which affords an excellent coign of vantage for viewing the splendid agricultural country to the north.
The Ministerial Party will not receive any deputations, but the Mayor intends to bring under the notice of the Premier the necessity of the Kaik being obtained for the town as a harbour endowment. If this were acquired by the Government, and handed over to the town, the Harbor Board could then consider the matter of making a river harbour capable of taking in vessels of 300 or 400 tons burthen. The proposal is to run a mole out from the south-eastern point of the Kaik across the bar, which would then, it is argued, be naturally scoured by the outflow of the Jacob’s River to a depth sufficient to permit of the entrance of vessels of the tonnage mentioned. The fact that the Orepuki line is to be extended to the Waiau, and eventually to Eastern Bush, warrants steps being taken to improve the lower harbour, because as that country is developed, it will provide a great amount of exportable produce, and this, coupled with the large export of oil that is likely to be made from the Orepuki Shale Works, should give sufficient trade to a port which it is confidently expected could be established by the expenditure of a few thousands. -Western Star, 1/2/1900.
The largest boiler ever carried on the Dunedin-Bluff line passed through Milton on Tuesday for the Orepuki shale works. The boiler weighed 18 tons, and was so large that it is said to have grazed the Caversham tunnel as it passed through. -Bruce Herald, 2/1/1900.
Something in the way of boilers was to be seen at the Riverton station on Tuesday, There were two of them made by the firm of Galloway, of Manchester, according to the vary latest patents, each weighing 18 tons. They are of immense size, and are for the Orepuki Shale works. -Western Star, 8/2/1900.
OREPUKI SHALE WORKS.
DEVELOPMENT OF SOUTHLAND'S RESOURCES.
A GREAT ENTERPRISE.
[Per favor of the Editor of the 'Southland News'.] During his visit to Southland the Hon. James McGowan, Minister of Mines, availed himself of the opportunity to accept an invitation extended him by the management of the shale works at Orepuki, to visit the scene of the extensive operations they are at present carrying on in the neighborhood of the township. The firm, which has entered on the development of an important industry new to this part of the world, is styled the New Zealand Coal and Oil Company, Limited, capital £250,000. Its head offices are in London, but it has shareholders in New Zealand, with offices in Dunedin, Mr Thomas Brydone being the chairman of the local Board. The properties it holds include the Kaitangata and Castle Hill coal mines and the Orepuki shale works, with the railways and all the plant appertaining thereto.
The Ministerial party, which included Mr M. Giliedder, M.H.R. for Wallace, the Hon. H. Feldwick, M.L.C., Mr E. R. Green, Inspector of Mines for the district, and Mr C. E. Matthews (private secretary), were met at the company's siding at the Orepuki railway station by Mr W. P. Watson, general manager of the company, and Mr Robert Dunlop, manager for the shale works, and quickly conveyed by the well-known engine Kaitangata, with truck attached, over the two miles or so of private line to the area held by the company, alighting at the offices, where they were joined by Mr M. Straw, the mine manager. Here a considerable time was spent in the laboratories, where the visitors were shown by Mr Dunlop — who is an expert scientist and chemist, and who previously managed similar works to those in Southland at Airdrie, Scotland — products of the local shale in every stage of progressive development, from the crude to lubricating oils, and on to the water-white, pure article, smelling very much like ordinary kerosene. Paraffin wax was also shown in its courses of purification, from a material of the yellow color of beeswax to one of translucent whiteness, as seen in the paraffin candle of commerce, the thoroughly refined article having a melting point of 124deg.
Leaving the offices, the party proceeded to make an inspection of the ground which will ultimately be covered by the company's manufacturing departments. The space at present enclosed and fenced is about four acres, but there is about it in the worked-out forest land ample room for all future extensions that may be required. The mining area granted the company is about 1200 acres in extent. This, it may be stated, has been thoroughly prospected, and discloses a body of shale that, great as the working capacity of the factories will be when completed, must keep them going for an indefinite period of time to come. As to the works themselves, the erection of the plant the buildings will ultimately cover is in advance of them, probably designedly so, as the dimensions and weight of many portions of it are such that it must have been more convenient to set them up in the open than to do so within the restrictions imposed by walls. This plant is of the latest description, and embodies every improvement in connection with the working of shale known up to the present date. But, to give some idea of what these buildings will be, it has to be stated that, ultimately, over a million machine-cut bricks, burnt on the company's ground from clay found on the property, will have been used, 700,000 of these having, since September, 1898, left the two large kilns and passed through the bricklayers' hands; while, after the remaining 300,000 have been produced, the kilns will be further employed in making firebricks from a clay which, to suit special requirements, has had to be imported, as have also large quantities of fire-bricks, which have been brought out packed in cases so as to avoid damage in transit. From what has been said it should be gathered that on the present occasion no attempt is being given to convey anything but a general idea of what the magnitude of the shale works will be when completed. In the meantime may be seen, either inside of buildings or erected in the open, sets of stills, retorts, condensers, a freezing plant, air condensers and engines from small sizes to others of most powerful type, while, in position by a towering chimney stack, are five monster Galloway boilers, each 28ft long and 6ft diameter. And, among other plant on the ground, are steam boiler-shaped tanks, each having a capacity for the storage of 3,000 gallons of oil, and the whole of them together an aggregate of 100,000 gallons. Paraffin oils and wax will not, however, be the only resultants from the working of Orepuki shale, as naptha, sulphate of ammonia, and a tar suitable for asphalt will also be derived from it, besides which the coarser byproducts will be utilised in the manufacture of patent fuel from Kaitangata and similar coal, which will be presented to the market in the form of briquettes.
And now, as regards a new industry which has been commenced in New Zealand without, so to speak, sound of trumpet or beat of drum, it only remains to be stated in prosaic figures, that the confidence the New Zealand Coal and Oil Company has in its venture is evidenced by the fact that it has expended on buildings, plant, etc, up to date no less than between £44,000 and £45,000 and it will expend somewhere from £20,000 to £25,000 more before the point of return for outlay of capital is reached. As regards the township of Orepuki, the effects of the employment of a large amount of labor in its immediate neighborhood, in addition to the only partly-developed goldmining resources of the locality, are already manifest in the superior nature of the stores, hotels, and other buildings which have gone up within the last year or two - a progress that will be still further advanced when the company instals its manufacturing staff, for the residential accommodation of which it has already secured a spacious area, conveniently contiguous to the scene of their future employment. In the meantime the managers of the various departments have all been housed in comfortable villa residences, on well-selected spots, which but a few short months ago were bush solitudes, not at all likely to become the home of man and certainly not part of a hive of busy manufacturing industry as it is now destined to become. In the course of the visit, whioh extended over five hours, and could not have been got through in less time, opportunity was taken, in leafy dells that soon will be of the past — though plenty more will be left up the Longwood slopes — by Mr Dunlop, who is an expert "knight of the camera" to take some photographs of the Ministerial group. Later on the party repaired to the manager's residence, where they were shown by him some collections of rare and valuable curios, some brought by him from the Home Country and others obtained from various parts of the world, besides some splendid sets of photos, the subjects of many of which are geological, and go to show what a powerful aid to science the art of photography is. On bidding farewell to the company's managers Mr McGowan expressed his pleasure at seeing that such steps were being taken an industry that must be beneficial to the colony as well as a boon to the district, and said he hoped the expectations of the company would be realised, and their efforts, energy, and pluck adequately rewarded by success.
In connection with the industry, it may be mentioned that paraffin, from Latin parum (little), affinis (akin), from having little affinity — that is, from being little acted on by many agents — is a term applied in a narrow and more popular sense to a white transparent, waxy substance obtained from mineral oils, and extensively used for making candles, as well as for other purposes; and, in a wider sense, by chemists, not only to this but to a whole series of subjects of similar composition, partly gaseous (as marsh gas or fire damp) and partly fluid. Paraffin, the waxy substance, was first obtained from wood-tar about the year 1830. Subsequently the Scotch chemist, James Young, obtained it from a natural mineral oil of Derbyshire England, and then from oil distilled from a bituminous coal of Scotland; an oil for use in lamps introduced to the public as paraffin oil being the product of the same general process of distillation with special treatment. Mr Young erected works at Bathgate in 1851, and not long after paraffin oil came into general use as an illuminant, more especially when in 1859 shale came to be used as the substance to obtain it by distillation. Mr Young's process was speedily taken up in the United States, and soon attracted attention to the immense stores of mineral oil existing in considerable areas of that country, which thus came to be utilised, the distillation of oil from coal there being discontinued. The shale-oil industry of Scotland has expanded to large dimensions, and a great amount of capital has been invested in it. The same industry is also actively carried on on the Continent of Europe, brown coal or lignite being chiefly subjected to distillation. Paraffin is generally obtained by heating the shale in iron retorts at a low red heat; condensing the tarry products, and purifying those by distillation, wasing successively with soda, water, and acid, and again distilling. Those portions of the oil which solidify in the final distillations are collected separately from the liquid portions, washed with soda and acid and crystallised, or again distilled — the process being known as that of "fractional distillation." The partially purified paraffin is now treated with acid and allowed to solidify, strongly pressed, in order to remove the liquid oil which may still adhere to it, and, in the case of the purest qualities, is finally purified with animal charcoal. The solid substance is now melted and cast into blocks, which should be of an opalescent whiteness and quite free from taste, or smell. The liquid oils obtained in the distillation process come into commerce under the general name of paraffin oil, the lighter oils being used for illuminating and the heavier for lubricating purposes. Pure paraffin has a specific gravity varying from .82 to .92, while its melting point varies from 95deg to 131deg Fahr. While most extensively used in the manufacture of candles which may be white or colored, and may be partially composed of wax or stearine, it is also employed for vestas or tapers, for the waterproofing of fabrics, and as a substitute for wax in other articles, for coating fruits to preserve them, as an insulator of electricity, etc.
[Special to the Star.] In view of the fact that an extensive and valuable plant has lately been erected at Orepuki for the purpose of developing the shale deposits there, the impressions of the Minister of Mines, as the result of his visit to the works of the New Zealand Collieries, Railway, and Oil Syndicate, should prove of interest. In the course of a conversation, the Hon. Mr McGowan informed me that he was greatly surprised at the magnitude of the undertaking, and at the amount of capital invested, the extensiveness of the plant, and the complex machinery, which were far beyond what he had anticipated seeing. Machinery was provided for the different processes of utilising oil, and now provision is being made for utilising waste products in the way of sulphur. The conclusion that the Minister had arrived at was that the succees of the company's operations depended on three things: (1) The amount of shale in the mine, and in this connection Mr Dunlop claimed that it was there in considerable quantities; (2) the ability to produce oils and paraffin wax commercially with the same degree of success that it was produced chemically; and (3) to have a market for the prepared material. If these considerations were complied with, then the success of the venture was assured. Mr McGowan's impressions of the undertaking are favorable in the extreme. Some time ago a bonus was offered for the production of a quantity of shale, and though the time for claiming it has almost lapsed I gathered from the Minister that the Government would not be averse to extending the time. -Evening Star, 27/4/1900.
Many rumors were current regarding the reasons for the liquidation of the New Zealand Collieries and Oil Syndicate; the one most generally accepted was that the syndicate was relinquishing business. This, in the face of the large amount of money paid for its mines and the thousands of pounds being spent in the Orepuki shale works, was obviously absurd. We notice that the syndicate has stated that the reason for the liquidation is, that a company is about to take over the interests of the syndicate. We also learn that the shale works are turning out quite up to expectations, and when they start operations it is expected that the oil will materially diminish the importation of American kerosene into New Zealand. As there is also a big Government bonus for the manufacture of shale oil, the Orepuki works should start with every prospect of a successful career. -Bruce Herald, 4/5/1900.
OPINIONS ON THE FINANCIAL STATEMENT.
GOVERNMENT SUPPORTERS DIS-SATISFIED
(From Our Own Correspondent.)
WELLINGTON. August 17.
The Financial Statement appears to be giving some of the Government supporters more food for reflection than they anticipated, and already there are mutterings, not loud, but deep. Mr Seddon's Budget is to a considerable extent the policy so long advocated by the Opposition party. The complaint of some of the City members on the Government side is that the Premier's proposals in the way of remission of duties will deal a severe blow to local industries. Mr Morrison, the member for Caversham, who takes a keen interest in the welfare of his district, pointed out to me that the remission of duty on machinery would injuriously affect the local foundries. The Caversham match factory, he pointed out, would also suffer, while the remission of the duty on kerosene and candles would be a severe blow to the Orepuki Shale Works Company after they had, on the strength of the existing duties, committed themselves to an expenditure of £70,000. North Island members are also grumbling, and Mr E. M. Smith, one of the staunchest Government followers, says Mr Seddon might as well go in for a Freetrade policy at once. The discussion on the Statement will begin on Friday next, and it is likely to be both interesting and lively. -Otago Witness, 18/8/1900.
THE OREPUKI SHALE WORKS.
Mr W. P. Watson, general manager of the New Zealand Coal and Oil Company, was waited upon by a representative from this paper and asked to state how the proposed remission of duties on kerosene and candles would affect his company. He stated: All I can say is this, that it came like a thunderbolt. Apart altogether from the inducement of a £5000 bonus, the people promoting the industry had always relied on the duty remaining as it was. As a matter of fact this duty had never been interfered with, save once, when a penny was taken off, and that gave no concern. The very fact of the Government reducing the duty by a penny was a clear indication to all concerned that there would be no fear of a further reduction, particularly when it was subsequently restored to the oldrate.
The Reporter: Will not a bonus, which it is said the Government will give your company, compensate for the remission of the duty?
Mr Watson: In reply to this I can only state that the industry being in such an initiatory stage, and having no past experience upon which to base a calculation, it is entirely impossible to accurately gauge the extent to which its interests will be affected, and that being so, it is impossible to say what amount of further bonus would compensate for the loss. One of the principal, if not the principal, inducements which led to the complete subscription of the company was that the tariff was in existence, and had been since kerosene had come into the country. Not the slightest fear was entertained that the tariff would be altered. In fact, while the works were being actively pushed forward there were frequent inquiries as to their completion from all parts of New Zealand, and the nature of these inquiries was such as to make assurance doubly sure that things would remain as they were. The attitude of parliamentary members with whom I came into contact thoroughly endorsed this view. No doubt the public know the extent of this undertaking. The industry is one that is entirely new to New Zealand, but nothing has been left undone that would tend to success. The latest and most modern machinery has been brought into requisition by the company's expert and practical manager of the works at Orepuki, Mr R. Dunlop, and the latest patents for the production of the oils and bi-products in every respect have been imported under his direction. And Mr Dunlop, who has guided things from the beginning, gives the directors, both here and at Home, an assurance of the perfectness of the works.
Reporter: Well, in regard to the remission of duties on the candles?
Mr Watson: In respect to the candles, the wax which we will produce enters into the manufacture of candles, and therefore, so far as this is concerned, the industry will be placed at a great disadvantage. The production of wax will be one of the most important features of the undertaking, and the fact that Orepuki shale produces double the percentage of parafin wax as compared with the Home country shale is proof positive of the extremely valuable nature of the deposit, and, therefore, if the duty on candles is remitted the company in this second respect must suffer.
(Per United Press Association.)
WELLINGTON, August 18.
The Post states that so unexpected was the remission of duty on kerosene that one firm cleared 2500 cases, paying £500 duty. -Otago Daily Times, 20/8/1900.
KEROSENE DUTY.
The owners of the Orepuki Shale Works are very much exercised over the tariff. The following telegram is from Mr W. P. Watson:— "Proposed alteration in duty on kerosene and paraffin wax will ruin this company, who are spending £80,000 at Orepuki, by inducement of bonus and duty remaining. Trust you will get the position left as it was; at least until industry has got fair start. Should duty be taken off cannot possibly go on, and operations must be stopped at once, which will be a serious thing for shareholders and colony. If proposal passes must stop works at once." The Minister of Mines replied to the effect that he did not think that the company had much to fear. The Government could make no alteration in the proposal to abolish the kerosene duty. He considered the company should be secured by the bonus, which would be continued. -Evening Star, 21/8/1900.
THE OREPUKI SHALE WORKS.
Visit of Lord Ranfurly.
(From Our Own Correspondent.)
ORBEPUKI, November. 20. His Excellency the Governor arrived here on Friday evening, and was met on the platform by a large crowd of the inhabitants, the school children singing "God save the Queen." Mr H. Hirst, chairman of the Wallace County Council, read an address of welcome. His Excellency, in reply, stated that he was somewhat taken by surprise to see so many people assembled there that evening. He had no idea there were so many within 20 miles. He appreciated the singing of the children, and considered, by the healthy appearance of the young, that Orepuki must be a very healthy place to reside at. He spoke in most eulogistic terms of "our boys" and the good deeds they had done in South Africa. At the conclusion of his address three hearty cheers were given for the Queen, and with cheers for his Excellency the crowd dispersed. On Saturday his Excellency visited the shale works, Mr Dunlop, the manager, showing and explaining the workings, or rather how they are to be worked, as the works are not as yet completed, and also the many different processes the shale has to go through before it becomes refined oil. The shale works-were tastefully decorated with evergreens and flags. His Excellency appeared to take great interest in all he heard and saw, and was much pleased with his visit.
The New Zealand Coal and Oil Company (Limited) have been working away quietly for nearly two years now in erecting works on the surface and opening up the shale and coal seams whose hidden treasures have lain dormant, for probably millions of years. Oil-bearing shale has been known to exist here for some 10 or 15 years, and a syndicate having obtained a lease of about 1000 acres from the Government exploited the field, and after having had the shale thoroughly tested in the old country by competent exports, and in bulk at shale oil works in Scotland with such satisfactory results, the above-named company, which had purchased the Kaitangata and Castle Hill coal mines, added the Orepuki mineral fields to their other properties; hence the name of the New Zealand Coal and Oil Company. The capital of the company is fixed at £270,000, £150,000 being in £1 shares, now all paid up, and £90,000 in debentures, £70,000 of which have been subscribed and the balance left for calling up if required. The Orepuki works, erected with the most up-to-date plant, are expected to be in operation in January, and should earn a dividend in 1901. The Kaitangata coal has been yielding sufficient profit to provide a 5 per cent, dividend alone, and the oil is expected to do better. The shale has now been thoroughly tested on the spot, and found to be richer than the Scottish shale, containing, besides kerosene, a large percentage of lubricating oil and paraffin wax for candle-making, sulphate of ammonia, naphtha, etc. The future probabilities of mineral oils as a cheap and handy agent or producing power either as gas or steam are very great especially in the shipping and dredging worlds, and even on railways, the engineers of which are already making inquiry into the comparative cost.
It may be worth mentioning in connection with the size and prosperity ot the oil business that the Standard Oil Company of America represents 100 millions sterling, and pays 10 millions annually in dividends, the shares having more than doubled in value during the last few years. Even the Broxburn Oil Company, which is the largest shale company in Scotland has paid from l5 to 25 per cent. for many years and its L8 10s shares are now worth L18. Only half of its profit is used for the dividend. The price of kerosene oil keeps at the same price in New Zealand notwithstanding the duty being taken off, but there is now every prospect of a reconsidering reduction when the homemade article comes into the market as it is understood that the Orepuki works will be able to produce an equivalent article with a fair profit at considerably under the American. -Otago Daily Times, 23/11/1900.
The Dunedin Times is informed that the Orepuki shale works will be in operation within six weeks, and that numerous enquiries have been made for their various products. -Western Star, 23/1/1901.
WANTED, 12 Good, Practical MINERS for Orepuki Shale Works. They will be fully employed, so that none but steady men need apply. Apply to the Mine Manager, on the Works at Orepuki; or at the Company's Office, Crawford street, Dunedin. -Otago Daily Times, 23/2/1901.
OREPUKI SHALE WORKS.
"Straight ahead till you strike the railway and that'll take you right to the gate".
"How far? — Oh, about two miles."
Simple enough instructions and accurate as the result proves. About half a mile over one of those curious up-country roads, on which the scientific metalling along the top of the grade is carefully avoided by all traffic in preference to the rutty, muddy sides, brings us to what must be the railway line referred to by our mentor. Any way, we follow it though there is no sign ahead of any shale works. The line winds about between dams and over innumerable water-races leading to the sluicing claims below. On either side, pitched in all sorts of positions and mostly surrounded by small gardens, are the homes of the miners and shale works hands. These are chiefly of the weather-board humpy description, but here and there are some of the typical colonial iron-roofed verandah cottages, painted uniformly pink. By the way, how is it that cottages of this description are invariably painted pink? But these works seem to be getting no nearer, and surely we have come a good two miles, for skipping over railway sleepers is not conducive to good walking. Ah! here is a siding to the line with a shed and various bits of iron piping scattered about, but as yet no sign of anything more, and the line appears to be going right into the heart of the Longwood. Perhaps round this bend? At last we catch a glimpse of huge chimneys peeping over a big bank. Between them and us the line goes over a big gully sluiced out by early gold-seekers, and already reclaimed by the bush, which stretches up unbroken from its banks over the Longwood range in one even mass of dark green. Unbroken did I say? No; for right ahead on a space of about ten acres hewed out of the solid living bush stands the most amazing complexity of boilers, retorts, pipes, and chimneys it is possible to imagine. This hive of industry suggests to the modern practical man the jewel in the head of the toad, to the lover of nature the blemish on the fair face of the hillside.
As we approach the gates the banging of iron on iron, the clattering of riveter's hammers brings one forcibly back to Glasgow and the Clyde, and sniff! sniff! there is even the same sulphurescent, bad-egg smell of the Glasgow fog. Yes, there is no mistake, the smell is very tangible. Wonder on, wonder, and then, once inside the gates, one is struck almost dumb with amazement at the huge machinery, the miles of piping, at this gigantic tribute to the genius and energy of man. The vast incongruity of this slice of Glasgow being deposited in the heart of the native bush in the most out-of-the-way corner of New Zealand fills the mind with such a feeling of wonder that the technical descriptions of our guide as to the uses of the various bits of machinery are but dimly heard and understood. And to add to it the man spoke with a strong Glasgow brogue. We were introduced to the manager — strong Glasgow again; the Glasgow simile is beginning to get overpowering. We explain our troubles to our guide. "Oh," says he, "I will not attempt the brogue. I can only hope to give an imperfect translation. There are a lot of Scotch folks here. You see they are the only ones with any experience of the shale, and then the manager and capital are Glasgow. I have heard it said that the company are going to import eighty factory girls from Glasgow to make candles, so Orepuki will always be a Glasgow settlement." Good Lord! Eighty Scotch factory girls plumped down in this desolate little mining township of Orepuki! Of all the extraordinary things about Orepuki this, if it comes to pass, will be the most extraordinary. Fancy, eighty of the big, rough, unintelligible girls one sees trooping out of the factories in Glasgow with bare feet and shawls round their heads landed like a lyddite shell amongst the quiet inhabitants of a little New Zealand backblocks township. Wonderful! I should judge that Orepuki will be about as lively a place as you will find for a week or so after they land.
But this is digression. We are shown the boilers, the retorts, the stills, the separators, the condensers, the pumps, and heaven only knows what else. Then there is the black entrance to the dip going down into the bowels of the hill, where dirty coal-miners labour night and day — it is all the same down there — by the light of smoky tallow lamps hooked in their caps. Even as we look a "rake" or string of trucks emerges out of the darkness loaded with a pretty fair quality of lignite. For they are working through coal in opening the shale seam in readiness for the completion of the works. Close alongside are the smouldering piles of slack — the origin of the familiar Glasgow smell. Then we see the brick kiln, which, differing very little from any other brick kiln, merits no description, and then, after thanking our guide, we turn our steps once more down the railway line. Afterwards, trying to connect up our impressions, we find that the only mental picture left is one of a mass of the latest machinery lying in the heart of the bush, that same peculiar incongruity which dominated our impressions from the first.
J.C.N. -Evening Post, 16/3/1901.
'Orepukite' writes to the Tablet: — I notice in last week's issue of the Tablet in 'Southland Notes' a paragraph re the importation of 300 girls from Scotland to work in the Orepuki Shale Works. As such a statement may be misleading to the public I wish to say — as an Orepukite — and one who knows the truth of it that the Company has not the least intention of bringing out those Scotch lassies, and there is no foundation whatever for such a statement. I believe it is the Company's intention in due time, if everything works satisfactorily, to start a match factory, but even then, I think no girl importation will take place. The works at present in all its branches will not employ 200 men. -Grey River Argus, 21/3/1901.
Mr W. P. Watson, General Manager of the Coal and Oil Company, said they hoped to be in a position to supply 2000 gallons of oil from the Orepuki Shale Works by the end of April, and crude oil very shortly. The Company had applied for an extension of time for the Government bonus, but they had got no reply yet. There were 130 hands employed at Orepuki and 300 at Kaitangata. -Taranaki Herald, 26/3/1901.
The Orepuki shale works have at length begun operations. By the end of the present month it is anticipated that all the products from the shale will be in a deliverable condition. Already the company has received orders from all parts of New Zealand, and the prospects of the enterprise reaping all the success it deserves are most encouraging. The works are of a very extensive character, and, handled by such an expert as Mr Dunlop, they will doubtless be tested to their utmost capacity. If the undertaking develops into what it promises to be, a new and valuable industry of colonial importance will be established. -Otago Daily Times, 28/3/1901.
Orepuki Shale Works began producing crude oil on Wednesday. This will be the first paraffin oil made in New Zealand and when it gets upon the market consumers, if they are statistical, will find that they are getting more light for their money than there is in kerosene. -Southland Times, 30/3/1901.
DUNEDIN NOTES.
[From Our Correspondent.]
DUNEDIN, March 29. The manager of the Orepuki shale works telegraphed to the head office at Dunedin today — “Oil running from four retorts. Everything favourable.” -Lyttelton Times, 30/3/1901.
TOWN AND COUNTRY
THE OREPUKI SHALE WORKS.
The residents at Orepuki seem to find that the making of shale oil in the neighbourhood is not altogether conducive to their well-being. A correspondent of the “Southland Times” reports that since the works started distillation the water in the household tanks is covered with a film of oil, while the houses are being depreciated by a deposit of the same kind, which discolours the paint and oxidises the nails, causing streaks of rust. Houses a mile from the works are being covered with a slate-coloured, oily deposit. In Britain it was not unusual for owners of such works to pay compensation to farmers and others around them for depreciation, of crops and pastures by the condensation of oil and sulphurous fumes. -Lyttelton Times, 6/4/1901.
Another set of retorts is being heated up at the Orepuki Shale Works preparatory to being put into work (says the correspondent of the Southland Times). Those in work are running very well; in fact, exceeding the most sanguine expectations of the management. As yet the crude oil is being collected in large concrete tanks at the rate of about 100 gallons per hour, but until sufficient oil is on hand to secure a continuous flow through the various processes none will be put through the refining works, but then the oil will be started on its journey of three weeks through miles of piping, until it finally emerges pure kerosene, etc., in the receiving tanks. -Otago Daily Times, 10/4/1901.
The products of the Orepuki Oil and Shale works are becoming familiar on the local goods trains. The other day three trucks filled with casks of Southern Cross Oil formed part of a train bound northward. -Southern Cross, 15/6/1901.
OREPUKI SHALE WORKS.
The “Mines Record” for June contains an account of the Orepuki shale-oil works, reprinted from the “Otago Daily Times” of May 7th, which shows that they are the apparatus of a most important industry. Over a million and a half of bricks were used in erecting the buildings, and altogether nearly £100,000 has been spent by the company in buildings, plant, and machinery. From the shale there are extracted various qualities of oil, an imflammable gas, tar, soft and hard paraffin wax, coke, and an ammoniacal manure. These marketable substances are expelled from the shale by heat, which is furnished by the combustion of the gas above mentioned, as this has no better use. The extracted material has to be heated and cooled over and over again before it is finally ready for market, and a portion of it has to be alternately heated and frozen. The whole process is very curious, as curious no doubt as that by which the oil came to be in the shale; but the former is known and understood, while the latter is not. That the establishment of the shale works has not proved an unmixed blessing to the former inhabitants of the neighbourhood, is shown by the following extract from a letter just received by a Timaru resident;
“The shale works here are playing havoc with the settlers’ houses within a mile or more of the works. All the houses have turned a bluish black, which needs to be seen to appreciate the ugliness of the change. An oily or tarry stuff floats in the air in calm weather, and in one night will spoil the appearance of any house it may alight upon. It was generally admitted that I had as nice a place as any in this district, but it looks a very ancient affair now, so black and dirty looking is it. And the smell! I can make some attempt at describing the colour of the houses, but the smell is beyond description. It comes like the dirt, most in calm weather, and it is like all vile stinks in creation well mixed and stirred up. It penetrates everywhere. It cannot be kept out of the house, and many a time have I been awakened by it in the night. And it is so nauseating that I often feel as if a sudden movement would bring on a fit of vomiting, and I am not so sensitive to it as some people, who say that the smell is killing them. That is a bit overdrawn; but it is really very bad indeed. Clothes left out in the way of the deposit from the air must be washed again, if they get “shaded” as they call it; and one washing will not get out the black streaks either. The water tanks get the oily stuff in them, and you can see it floating about on the top of the water. So you see that the shale works are not an unmixed blessing to Orepuki. The manager of the works tells us that the fumes and the deposit will kill all our trees and even the grass, and he says there is no remedy. The people are up in arms about it, and will try to find some remedy.” -South Canterbury Times, 9/7/1901.
NEWS OF THE DAY
The "Press” Wellington correspondent telegraphed that Mr Watson, of the Orepuki shale works, has been interviewing members, and has succeeded in arranging a very influential deputation to wait on Mr Seddon at four o’clock on Wednesday afternoon. Mr Watson has with him some fine samples of the bye-products from the shale, such as kerosene, naphtha, lubricating gas oil, neutralised tar, sulphate of ammonia, and paraffin wax. These, together with some very fine photos of the works, will be shown to members. The company has now spent £95,000 (roughly $3,000,000 today) in connection with the works, and they find that it is necessary, for a time at all events, to obtain a Government bounty on the output of the works until the industry is firmly established. It will also be pointed out to Mr Seddon that at present oils are under a very high class as regards freight on railways, and the deputation will ask for some consideration in this respect from the Railway Department. -South Canterbury Times, 31/7/1901.
THE DUTY ON KEROSENE.
Invercargill, September 10. The Southland Trades Labour Council has resolved to wire the Government to restore the duty on kerosene on the ground that an important colonial industry, the Orepuki shale works, employing a large number of men, will materially suffer. -Taranaki Herald, 10/9/1901.
OREPUKI SHALE WORKS.
PROTECTION WANTED.
A meeting of Orepuki residents was held in Sorensen's Hall on Thursday evening to discuss the necessity of the government affording protection in order that the Shale company might develop the shale resources of the district which it is unable to profitably do without it. The meeting was a large one, and was presided over by Mr W. P. Mirrelees, who said the works had greatly increased the value of property, and it was an industry that deserved assistance. Mr Adamson said the company had great claims for support. It employed 100 people, and the establishment or the works had reduced the cost of living, increased the prosperity of the district, and largely contributed to the railway revenue. He moved, and it was seconded by Mr Todd, "that this meeting representing the inhabitants of the district, and dependent on the Oil industry for the future prosperity of Orepuki, respectfully urge upon the Government the necessity of increasing the duty on the company's products, at all events until such time as the industry is firmly and payably established." After Mr Dawson, the Rev G Y. Roby, Mr Young and others had spoken to the motion, it was put and carried unanimously. It was decided to petition Parliament, and the chairman was instructed to write to chambers of commerce and labour unions asking their support to the proposal, and to Mr M. Redder, M H R, who has worked well for the works, to endeavor to have effect given to the motion. A vote of thanks to the chairman and to Mr Sorensen for the use of the hall at a reduced charge terminated the meeting. -Western Star, 21/9/1901.
OREPUKI SHALE WORKS
A deputation of the Trades Council waited on Sir Joseph Ward on Tuesday asking for a reconsideration of the matter of the duty on kerosene and paraffin wax in the interests of the Orepuki Shale Works. Mr Hanan said that Mr Gilfedder had strongly urged upon the Government the necessity of doing what the deputation now asked. Mr Roche said that his experience had been that the consumer had received very little benefit by the removal of the duty. Sir Joseph said for 3 or 4 years there had been very strong representations made from country people all over the coleny to have the price of oils of all kinds reduced so far as customs duty was concerned. The difficulty now lay that the Government could not take up the tariff for the revision of one item only. Members of the House would expect a good deal of attention to be given to other matters and there would be strong representations to have 300 or 400 more alterations made. If the benefit of the tariff was going to America instead of the consumers it would be a strong argument for the Government making an exception to the rule and reinstating the duty on kerosene. He would be willing to do all he could and was sure that other Ministers would do the same. -Western Star, 24/10/1901.
LOCAL AND GENERAL
The sum of £5000 has been placed on the Supplementary Estimates for the Orepuki Shale Works as a bonus for mineral oil. -Western Star, 12/11/1901.
MINISTERIAL MOVEMENTS.
[Per. Press Association.] WELLINGTON, Dec. 3. The Minister of Lands will pay his first visit to Westland early next month, and I complete his inspection of the farming districts in the North Island in March.
INVERCARGILL, Dec. 3. The Premier, Sir Joseph Ward, and a number of the directors of the New Zealand Coal and Oi1 Company visited the Orepuki Shale Works yesterday. They expressed themselves as pleased with what they saw. At a banquet the Premier complimented the company on its enterprise, and said that the future of the industry depended on the scientific and practical working of the deposits, and the Government, on being satisfied that the products were marketable but could not be sold because of outside competition, would consider the question of further assistance. The Premier and Sir Joseph Ward said that the Government's policy was to encourage and protect colonial industries. Sir Joseph Ward left by a special tram aftcr the banquet for the north. The Premier and the northern members remained till this morning, arriving at Invercargill at 9.45, and leaving for the north at ten o'clock. -Star, 3/12/1901.
It is stated that the Orepuki shale works have been closed down indefinitely. Sufficient men have, however, been kept on to refine the large stock of oil on hand. -Western Star, 8/4/1902.
The 'Orepuki Advocate' reports: "It is with sincere regret that we have to chronicle the closing-down of the Orepuki Shale Works. All the men employed at the works, excepting about 30, were discharged on Saturday last. Some of those, whose services are retained for the present, will be engaged in hewing coal for the purpose of keeping the furnaces going. The remainder will be employed refining the wax and oils. The Company has about 100,000 gallons of oil to refine, and 95 tons of wax. These will be placed on the market directly the refining process is completed. We are informed that the Works are indefinitely closed." -Mataura Ensign, 8/4/1902.
THE OREPUKI SHALE WORKS.
CLOSED DOWN.
[From Our Correspondent.] DUNEDIN, April 9. The Orepuki Shale Works, which the Premier and Sir Joseph Ward recently visited and eulogised, have been closed down. All the men employed on the works, excepting thirty, were discharged on Saturday.
[Per Press Association.] DUNEDIN, April 8. Mr Watson, manager of the Orepuki Shale Works, denies that there has been a permanent closing down. The company is awaiting the arrival of new machinery for working the mime, the cost under the present system being too great, and the accumulation of wax, through the great richness of the shale, being too heavy a tax on the sweating plant. Refinery work will continue during the temporary closing down. New machinery is expected to arrive in six weeks, and then, the whole business will be in full swing again. -Star, 9/4/1902.
It is currently reported that the management of the Orepuki Shale Works has been taken over by the J. G. Ward Co. Mr Dunlop will retain his position as manager of the works. -Southern Cross, 14/6/1902.
OMNIUM GATHERUM
If the new retort which has just been erected at the Orepuki Shale Works proves a success it is intended (says the Advocate) to procure four more similar ones. -Otago Daily Times, 13/8/1902.
COMMERCIAL
OREPUKI SHALE WORKS.
The new retort at the shale works is now in thorough working order, and is fulfilling the most sanguine expectations. The cost is only about one-fourth that of the old ones, and the results much more satisfactory. The quality of the oil produced, too, is better than formerly. It is not intended to start in full swing again till the New Year, when the Government's intention in the matter will be made known. It is estimated that the profit on the year's operations would have been close on £3,000 had the duty been resumed.—Orepuki 'Advocate.' -Evening Star, 30/9/1902.
POLITICAL NOTES.
The Government have it in their power to give the Orepuki Shale Works a big lift, and thus benefit the western mining township, which has got into a moribund state since these large works were closed down. Interviewed, Mr J. C. Thomson, M.H.R., said the company had spent £100,000, and he had the best authority for saying that they would spend more if they got a guarantee from the Government. A new manager was ready to come out, but the directors would not send him out on mere promises; they must have a guarantee. The works would provide a lot of labor, and assistance could be given without in any way burdening the taxpayers of the colony. The Pumpson retorts in the works had proved valueless. A new make of retorts had been put in as an experiment and it had turned out successful, giving ten gallons a ton more, while the oil was a green oil, whereas previously it was black as tar. Ten more retorts would be put in at a cost of £500 each. The company is satisfied with the shale deposits, and it was a crying shame that so much capital should be allowed to remain idle, but he believed something would be done and that the promises would be kept. -Western Star, 24/7/1903.
The Orepuki shale works are to be re-started as soon as the question of a Government bonus is settled. -Southern Cross, 23/1/1904.
The boilers, retorts, and all ironwork at the Orepuki Shale works have received a good coating of tar to preserve them. Since closing down rust was playing havoc with the iron. -Western Star, 12/2/1904.
TECHNOLOGICAL CHEMISTRY.
[PRESS ASSOCIATION.] WELLINGTON, Friday. Professor Easterfield’s address at a meeting of the Wellington Philosophical Society was on “Recent Advances in Technological Chemistry,” which, he said, covered so wide a field that it was not easy to decide where to begin. The manufacture of sulphuric acid, a prime essential in all arts and manufactures, was one of the most interesting examples illustrative of his subject. After long and exhaustive investigation and most delicate experimenting a great German house had recently brought the platinum method of production into commercial use. Sulphuric acid which could be bought at a penny a pound in England was for various reasons unobtainable here under threepence, a prohibitive price for manufactures. It was the cost of sulphuric acid which compelled the closing down of the promising Orepuki shale works, on which had been expended £120,000. The cheap production of sulphuric acid was therefore a matter of great practical importance in this colony. The lecturer passed on to synthetic manufacture of indigo and the production of alcohol from sawdust. Even Prohibitionists would admit that alcohol was indispensable in the arts, whatever objections might be raised to it as a beverage. In no department had the application of modern science been more beneficial than in the white lead industry. Instead of the three weeks or so required by the old methods, it had become possible to convert litharge into best white lead in twenty minutes. He believed that arrangements were on foot to establish in our own neighbourhood white lead works conducted on the most advanced methods. -Hawke's Bay Herald, 14/5/1904.
POLITICAL ADDRESSES.
HON W. HALL-JONES AT THE THEATRE ROYAL. (excerpt)
The Hon. William Hall-Jones, M.H.R. for Timaru, and Minister of Public Works, addressed a very large gathering of Timaru electors in the Theatre Royal last night.
"Are you in favour of putting a heavy duty on kerosene?" - "I think we'd better leave kerosene where it is." A ridiculous statement was made in the "Herald" with regard to the closing of the Orepuki shale works. The works were not started when the duty was taken off kerosene; they had been bungled, and not having money to buy proper retorts to deal with the shale, asked the Government for some, but the Government were "not taking any." That was why the works were closed. -Timaru Herald, 15/11/1905.
KEROSENE.
THE OREPUKI SHALE WORKS.
SOME REPLIES TO MR HALL-JONES.
A Timaru businessman, who desires that his name be not published at present, yesterday gave a "Herald" representative some information about the Orepuki shale works which, though second hand, he states is quite reliable.
At his address on Tuesday night, Mr Hall-Jones ascribed the closing of the works to want of proper appliances, and the refusal of the Government to grant money for the purchase of more up to date apparatus. This, our informant says, is quite wrong, and the closing of the works was due to the removal of the import duly on kerosene. The position was clearly stated to him only a few days ago by the chairman of directors of the company, Mr Robert Lee. Mr Lee stated that about £100,000 had been sunk in the works, which, when started, were fitted with the most up to date gear procurable; it was true that this soon became out of date owing to subsequent improvements, but the company, having plenty of capital (they are deeply concerned in big coal properties at Home, as well as in this colony) had no need to go to the Government for grants. Previous to doing anything more than prospecting, however, they went to the Cabinet, explained what was to be done, and asked to be stood by. The Ministers said they would see the company through all right, and the company started work, employing well over 100 men who earned from a minimum of 8s a day upwards. The works produced a lot of naphtha and wax, and were just beginning to pay when the 6d a gallon duty on kerosene was removed, and, unable to compete with freely imported oil, the company had to shut down.
Our informant stated that he had written to Mr Lee asking for full details in connection with the phases of the company's history, and he promised that as soon as he had them they would be made available to the public, and especially to Mr Hall-Jones.
Another resident of Timaru, who lived at Orepuki all through the operations of the company, told a reporter yesterday that Mr Hall-Jones was totally wrong in saying that the works were bungled through lack of proper machinery. A Mr Dunlop, who had experience in shale works in Ayrshire, and who since the decease of the Orepuki venture, had gone back to Ayrshire to look after his interests there, was brought out to manage the works in Southland. He found that the retorts in use were not suitable, and he had new retorts erected, which proved entirely successful. They extracted all the products — lamp oil, naphtha, a white wax for candlemaking, tar, and dying oils — from the shale. The illuminant was a first-class article, and the Dunedin City Council used all the tar they could get for street purposes. The shale was reported upon by experts at Home as the richest that had been received from any part of the world, and the company was getting on well when the duty was taken off and the Orepuki business had to give up the ghost under the competition of the American Oil Trust. It was not hard to see why that was so. At Orepuki the shale had to be mined, and the miners were paid according to the scale of the New Zealand Arbitration Court — the highest mining wages paid in the world. In America, they only had to sink a bore like an artesian well and pump up the oil, and the saving in wages was therefore very great. Yet the duty of sixpence a gallon had enabled the Orepuki Company to make a fair start and pay high wages to its miners. In addition to that a number of bushmen made a good living at cutting props for the mines. Martin Cash and Charles Lynch had the contract for that and they made up to £2 a day each. When the duty was taken off, and the trade passed to the American Trust, the miners had to disperse to all quarters of the globe — some to Scotland, some to Australia, some to other parts of New Zealand. They had to leave the homes they had built; some of the tradesmen who had opened business to cater for them went bankrupt, and others had to shift to fresh woods and pastures new. The death of the industry was totally due to the removal of the duty, and not, as Mr Hall-Jones said, to the imperfect machinery of the company.
THE PRICE OF KEROSENE. Enquiries were made into the at present interesting matter of the price of kerosene by a "Herald" reporter yesterday. The duty on imported kerosene was removed by an Act which came into force on August 18th, 1900. This meant the loss of 4s duty on each case, or 6d per gallon. In May, 1900, invoices show that the landed price of kerosene was 10 1/2 d per gallon, or 7s a case. Added to this was 4s duty, and say a shilling for freight, and leakages, bringing the price to 12s. The oil was then being sold at 13s a case. In December, 1900, the price retail was down to 10s 6d a case; in May next year, the wholesale price was a penny per gallon lower than twelve months before, and the retail price 9s 6d a case. In November, 1902, the wholesale price was very low, 8 1/2d per gallon. At present kerosene is at 10 3/4d a gallon wholesale, or about 7s 5d per case of 8 1/3 gallons. The retail price is 8s 6d to 9s, varying slightly. Thus, since May 1900, the price has gone up per gallon wholesale, and dropped about 4s per case retail. But the 13s retail price in May appeared to be a pretty high price, and was much diminished shortly afterwards. The oil now sold by the Standard Oil Company is fetching l 3/4d per gallon, a higher price than in 1900, and much higher than in any intermediate time, and it was remarked by one of those to whom the reporter went for information that as usual with monopolies, the company had got the screw on, and were taking to themselves a good deal of the benefit that the colonists should have had from the dropping of the duty.
Other enquiries confirm Mr Hall-Jones's statement that the present price of kerosene is 8s 6d a case. They also controvert his assertion that kerosene had never been bought for that price before the duty was taken off. There is a township called Whangerei, 95 miles north of Auckland, where goods are loaded with the cost of freight from Auckland and wharfage. Yet even at a remote village like that, with the heavy freight charges, kerosene was sold nine years ago before the duty was removed at 7s 6d a case. Our authority is a man who was connected with a general store there, who printed the price tickets put on the kerosene in the store, and delivered it to consumers.
Storekeepers generally say that kerosene is one of the most fluctuating articles they have to deal with. When one of the American oil boats arrives with a shipment, and tradesmen are heavily stocked up, they have to sell to make room and the price falls. But if one of these boats is a fortnight overdue and supplies run short, up jumps the price at once. They agree, however, in thinking that the removal of the duty benefited Rockfeller and the other members of the Trust far more than it did the New Zealand consumer. -Timaru Herald, 16/11/1905.
OREPUKI SHALE WORKS
INVERCARGILL, January 2. In regard to the statement that the Government are negotiating for the Orepuki shale works, with the object of utilising them as creosote works, the 'Southland Times' has the best authority for denying the report that the Government ever thought of purchasing the works. The results obtained from 600 tons of shale sent Home are extremely satisfactory, the product being superior to the best Scotch shale. It is probable that the works, on which £90,000 was spent, will be again a going concern. -Southland Times, 7/7/1906.
Orepuki Shale Works were on Wednesday visited by two directors of the New Zealand Coal and Oil Company, Limited, Sir John Sherburn (one time Mayor of Hull) and Mr T. W. Allen, timber merchant, of the same city. Accompanied by Mr Lee, the company's manager in N.Z., the visitors made a round of inspection of the works. From the proved richness of the sample of shale sent Home there would seem but small reason to doubt the probability of an early resumption of activity at the works. -Otautau Standard and Wallace County Chronicle, 19/2/1907.
It is stated on good authority that operations at the Orepuki shale works are likely to be resumed before long. It is regrettable that such an important industry should remain dormant. -Taranaki Daily News, 30/5/1911.
The Orepuki Advocate is informed upon reliable authority that the Orepuki Shale Works will be in active operation by the new syndicate within the ensuing twelve months. Now that oil is in such ever-increasing demand every possible source of supply will be worked, and Orepuki has, therefore, a bright future before it. -Southland Times, 10/6/1912.
The telephone wires from the station to the Orepuki Shale Works are being repaired, and this is taken as an indication that something is goiing to be done. The extension of time granted to the Company to resume operations terminates in three months. -Western Star, 23/5/1913.
Singular methods were applied to the felling of a damaged chimney at the Orepuki Shale works the other day. About twelve months ago the chimney was struck by lightning and was damaged to such an extent that it split from top to bottom and a very considerable portion fell away. The portion remaining swayed playfully in the wind, and as it threatened to fall on adjoining buildings it was decided to pull it down. The chimney was, however, so insecure that no workman could he induced to carry out the task of affixing the tackle. It was therefore decided to drill through the base of what remained of the chimney with rifle fire, and a .303 rifle and a stock of ammunition were procured. At a safe distance a rifleman set about pumping bullets into the base of the chimney and after a good deal of chipping the structure tottered and fell to the ground. It is stated that the amount of ammunition used approximated two hundred rounds. -Southland Times, 16/6/1914.
SOUTHLAND NEWS NOTES
There is a considerable probability of the Orepuki Shale Works being re-opened before long with a good prospect of success, as a new process for treating shale has been evolved called the Del Monte process, which is much less costly than the present methods, and secures more oil and by-products. A Christchurch syndicate has secured an option to purchase the. works etc. at £30,000, of which £10,000 will be cash and £20,000 shares in a proposed new company. A considerable number of shares have already been applied for, and as soon as 45,000 are placed there will be an allotment and a move made to re-open the works. Several of the most prominent Invercargill business men are mentioned as provincial directors. -Otago Witness, 17/6/1914.
OREPUKI SHALE WORKS
The following letter appeared in last night's Dunedin Star: To the Editor. Sir, —Some years ago the writer made seventl journeys to the above works to examine and report on some brown wax which the company had for sale. This wax was extracted from the heavy oil, and is a valuable product, but the sulphur in it at that time lessened its value somewhat. I believe that tliflicully is now overcome by chemicals. Mr Dunlop, the manager showed me all there was to he seen and, having been interested in oil products both before and since, I have always felt interested in these same works. What a live place Orepuki was when everything was in motion at the works, and what a waste it seems to see these great works standing idle, while we see cables such us was published in a recent issue of your paper showing how the price of crude oil is costing the Admiralty serious thought, and that now they are experimenting with British shale oils. What are Southlanders thinking of? No wonder Dunedin rides over them rough-shod when they do not make any effort to start what should easily be the greatest industry in the dominion.
Now, I should like to suggest a scheme for working Orepuki shale to a profit for those concerned. First, cut the refined oil out of it, and all of those by-products we used to hear so much about, and get right down to what is wanted to-day, oil for fuel. There is more of this wanted, and will be wanted from now on, than these works can supply without more retorts. There are now 20 retorts and 10 stills erected on the works, besides a large number of tanks and boilers and if those retorts were kept going constantly night and day — and there is not the slightest doubt but it could be done, as the bores put down prove the existence of an even body of shale then, sir, a continual stream of oil can be made to pass through the condensers, and if it is found not quite suitable in its crude state, owing to being either too light or too heavy, then pass it through the stills and bring it to the required gravity, if too light by cutting off the spirits, or if too heavy, by cutting off the heavy oil containing the wax, etc. Let there be no bother about the by-products. These works would pay better without them, and the number of tanks and boilers about the place would make excellent receivers. The question of shipping is easily overcome. The works are on a high altitude, and pipes coould be run to Colac Bay, only 12 miles distant. Put storage tanks there, and you have all you want to make this a profitable venture. Colac is the only good natural harbour between the Bluff and Preservation Inlet, and is practically at your doors. Let Southland consider this, as in the writer’s opinion, having been engaged for expert work on North Island oil ventures, there is nothing to be expected from the oil wells of the dominion in the shape of oil fuel. In the writer’s opinion, the Orepuki shale oil is the most reliable, and everything is there to supply in a measure the great and growing demand for fuel oil.
I am, etc, C Grace. -Southland Times, 28/10/1915.
Not satisfied with the position of the Orepuki shale works, representations were made to Mr J. C. Thomson, M.P., by residents, and these were in due course placed before the Minister of Mines, who, after making careful enquiries, has informed Mr Thomson as follows: —"The New Zealand Coal and Oil Company states that it has temporarily removed two out of the five large boilers at Orepuki to Kaitangata because it could not import or have them made in New Zealand at the present time at a reasonable price. The boilers were urgently required at Kaitangata, and no other plant, except the boiler accessories, have been removed. The company keeps a man at the works, whose whole time is devoted to keeping the plant in order. The managing director of the company emphatically denies that it intends to dismantle the works, and states that he is confident that the company will be able to restart the works within a reasonable time after the end of the war." -Press, 5/10/1916.
ELECTRICITY FOR SOUTHLAND
THE ENGINEER’S VISIT.
LARGE AREA OF COUNTRY INSPECTED.
VISIT TO LAKE MONOWAI. (abridged)
Seven o’clock on Saturday morning saw the commencement of the major item in the visit to Southland of Mr Lawrence Birks, B.Sc., etc., whom the Southland League has been instrumental in bringing south to investigate the electrical possibilities of the province. At that hour sundry motor cars were drawn up opposite the Invercargill Post Office, and leaders in the League could be seen piling rugs on car floors and stowing haversacks and Gladstone bags in handy corners, while a few of the later comers sailed in from various points of the compass laden with similar paraphernalia. “Good morning.’’ “Are we all here?” “Tiptop morning, isn’t it?” “Whose car am I in?” “Do we follow you?” “What road are you taking?” were a few of the remarks which broke, in harmony with the newsboys’ calls, the otherwise stillness of Dee street. At ten minutes past the hour clutches were let in and the four Invercargill cars, lent for the occasion by Messrs A. W. Rodger, Jno. Gilkison, Wright, Stephenson and Co., and G. W. Woods and Co., slid off. A Bluff party was to follow an hour later.
The guide car set a fine steady pace in order that the expert visitor might properly see the country which the forward spring had rendered well worthy of attention. By way of the Block road, Otautau was made at an early hour, and there was added to the procession a car load of members and the engineer of the Wallace County Council. Passing on towards Tuatapere the party halted a few miles out to ascend an eminence and behold, stretched in splendid panorama round 120 degrees of their outlook, that extensive plain to which the Western district of Southland owes its fame. Continuing on through the Merrivale and Orawia districts, the cars with their well-pleased freights — for without exception the passengers were deeply interested in the country — soon made Tuatapere and started on the double back to Orepuki, several of those who were new to the district expressing surprise, and those who knew the position offering more or less criticism that there was no more direct road connection between Invercargill and Orepuki. On arrival at
OREPUKI the touring party was met by the committee of the local branch of the League and taken direct to inspect the shale works which, after about 12 months’ activity, have lain idle for 14 years. The visitors were escorted by Mr Muir, who is now the sole representative of the New Zealand Coal and Oil Company in the western township. For eighteen years — ever since the company began the laying out of the site and the erection of its plant — Mr Muir had been connected with the Orepuki shale works, and such is his splendid optimism that he yet firmly hopes to see the goddess of industry again preside there before many more moons have waxed and waned. As the party moved round the place and passed from a cold and silent boiler to a rusting retort and a dark grim condenser, a feeling of melancholy and depression crept over its members. There was a strange sensation of death lying heavily over the deserted works, where so many thousands of pounds worth of plant and machinery were standing unproductive with nothing but depreciation mounting up. Not that the place is neglected, though, for Mr Muir has kept the whole of the plant under careful watch and in good order, but even under the greatest care machinery cannot in many ways use itself up quicker than by inactivity. It is a home company which owns the Orepuki works, and it was the lifting of the duty from kerosene that forced the manufacture of “Southern Cross” oil to cease.
Next the visitors dined at the Railway Hotel as the guests of the Orepuki branch of the League. Mr H. P. Young, the local President, presided, and after the regular loyal toast, he proposed the toast of "The Visitors.” He was sure that never before had Orepuki been favoured with a visit from such a body of the leading business and commercial men and those who were the leaders in every movement for the advancement of Southland. As for the country which they had seen, on such a day that would have spoken for itself and spoken loudly. — (Hear, hear.) — It was to be regretted, however, that there was an absence of certain developments which should have graced the district. For one there was the wretched fact that their journey that morning had taken so long owing to Orepuki and Invercargill not being directly linked up by road. Then they had seen the shale works and had probably gathered something of the importance of that industry, so would agree with him that where there were such valuable deposits of a commodity of such world-wide importance, the works should not be allowed to rest any longer once the Great Struggle was over. He trusted that good weather would favour the party on the rest of their journey, which he hoped would bear good fruit. Mr Jno. Stead (Mayor of Invercargill), responded. It had been a pleasure to the visitors to come such a roundabout way, but at the same time they realised what a tremendous handicap it was to be so cut off from the main centres. Indeed he thought that the Orepuki branch of the League should “stick out” for their road even before a hydro-electric power scheme. In conclusion he thanked them for the entertainment of the visitors. Mr Birks, the visiting engineer, who also responded, said that he had appreciated the morning's trip very much indeed. It had been sad, though, to see an industry such as the shale workings in such a state, and the sight gave one quite a feeling of depression. He was of opinion that they should use every effort to get the works going again right away, without waiting for the end of the war. Oils were in such demand at the present time that the prices obtained for the shale products would be sufficient to meet the expense of starting the works off again. He complimented Mr Muir on the high state of repair in which he had kept the plant, and thanked him for so carefully showing the visitors over the works. Mr A. W. Rodger, President of the League, moved a vote of thanks to those who had been responsible for the reception and entertainment. Their shale works presented a melancholy spectacle in their idleness, and because of those works he believed that an abundance of electrical power would benefit Orepuki even more than the rest of Southland. He trusted that, during his lifetime, Orepuki, aided by that electrical power, would rise to the position of one of the most prosperous towns of Southland. In seconding the motion (which was afterwards enthusiastically carried and a toast honoured), Mr H. Fowler (Vice-presi-dent of the League), gave two reasons in favour of the immediate re-starting of the shale works. Firstly, the war might last another ten years, so that there could be no purpose in waiting until the return of peace. Secondly, and on the other hand, the strife might end at any time. Therefore they should see that the industry was in such a position as to be able to forge rapidly ahead when the battle flags were furled. Mr Jno. McIntyre, in responding, touched on the proposed power scheme, the value of which, he said, they all appreciated, and towards which they hoped that Mr Birks’ visit would prove a stepping stone, since they knew him as an expert to give a valuable opinion. The health of Mr Muir, who had shown the visitors over the works was proposed by Mr Chas. Campbell, who paid a tribute to Mr Muir’s splendid optimism and keen watchfulness. In his response, Mr Muir gave some interesting details of the deposits. There was, he said, first a 15 or 16-foot strata of soft, black shale, then from 4ft 6in to 4ft 9in of real shale, and below that l1ft 6in of coal. Before finally taking leave of the township, the party took a run down to the beach which has, during the past half century, yielded to the searching hands of man a golden harvest worth thousands of pounds. -Southland Times, 25/9/1917.
Topics of the Day
A very important statement was made by the Hon. Mr Macdonald in Riverton the other day to the effect that the Orepuki Shale Works would be shortly re-opened as the difficulties in the way had been removed. What those difficulties were he did not state, but there is a strong feeling in Southland that there is an occult history of the stoppage of the works that has never been made public. However, the re-opening of the works would be a great benefit not only to the township of Orepuki, but to the whole district. That great deposits of shale containing a high percentage of valuable oil and by-products should have been lying idle so long seems a great scandal, and probably the attention of the Government has been directed to the subject by the offer of an oil burning cruiser by the British Government. The offer of the vessel had to be refused owing to difficulty in obtaining fuel, and another ship of an inferior class using coal substituted. -Otautau Standard and Wallace County Chronicle, 10/6/1919.
According to the Advocate, the AngloPersian Oil Company are negotiating to take over the Orepuki shale works. -Gisborne Times, 27/5/1922.
OREPUKI SHALE WORKS.
STATE AID SOUGHT. STATEMENT BY THE PREMIER.
(By Telegraph.—Press Association). INVERCARGILL, Monday. A deputation from the Riverton Progress League waited on the Prime Minister to-day in regard to the Orepuki shale deposits.
Mr. J. C. Thompson, M.P., said that an English company, including several New Zealanders, had spent £10,000 on the shale works some years ago. The company was prepared to reopen the works if the Government offered sufficient inducement by assisting them with a duty on mineral oils, admission of machinery duty free, and a bonus on the oil produced, and special railway freight.
Mr. Massey said that the chairman of the company had seen him while he was in Hull. He did not think that all the requests could be agreed to, but some oil experts were coming out with the British naval squadron and they could examine the shale deposits at Orepuki. If they reported favourably on it something might be done, but nothing could be done in regard to placing a duty on mineral oils. He would refer the matter to his colleagues for further consideration. -Auckland Star, 8/4/1924.
OREPUKI SHALE.
PROPOSED REFINING FACTORIES
CONVERTING OIL INTO MOTOR SPIRIT
There has been some speculation of late as to the fate of the Orepuki shale works, for since the announcement that a new company had been formed to work the project nothing has occurred on the site to justify the statement.
Mr N. H. Paterson, who organised the new company informs us that no hitch has occurred, but that the company is awaiting the results achieved at Latrobe, Tasmania, of a plant similar to that which it is proposed to install at Orepuki. The shale at Latrobe is of a much lower grade than that of Southland, so that if the process in Tasmania, which has State backing, justifies itself financially there could be no doubt regarding the Orepuki undertaking. It is claimed for the new process that as compared with the plant at present installed, it extracts some 70 per cent more oil at about 1/3 less cost, but these figures will be put to the test at Latrobe early in the new year, and if results there are satisfactory, the company will proceed immediately with its Southland venture. It is the present intention of the Company to set up refining factories with the object of converting all the oil into motor spirit. There are numerous highgrade shale beds in Southland and Otago, and while the Orepuki Company has not secured control of these it will be prepared to treat the oil from them, thus it is hoped, creating an important industry, providing employment for a great number of men and supplying much of the Dominion's huge and increasing demand for motor spirit. -Western Star, 8/12/1925.
It has been noted with pleasure that definite steps are being taken towards the re-opening of the Orepuki shale works, states the Southland League, in its annual report. More than 25 years ago a syndicate established a plant at Orepuki costing in the vicinity of £125,000, but unfortunately the enterprise was not successful. Now advice is received that the matter has been taken up again by a body of business men, and it is stated that with the modern plant which can now be installed for the purpose for converting shale into marketable products, there is every possibility of the works being reopened and run profitably. -Poverty Bay Herald, 11/6/1930.
Behind Orepuki Shale
ENDEAVORING to put Southland well and truly on the map just now is Arthur Mackrell, business man and politician. He's the big gun behind the Orepuki shale works flotation, and, imbued with a firm faith in Southland's future, he's doing the job with a will. Organizing comes to him like smoking a cigarette to most men, and not so long ago he organized his neighbors into a one street beautifying society, with the result that they now have their own particular locality looking like a Parisian boulevard. Incidentally, Mackrell presided as chairman at Vincent Ward's meetings during the recent Invercargill by-election. -NZ Truth, 25/9/1930.
INDUSTRIAL RESEARCH
POSITION IN NEW ZEALAND
LABOUR MEMBER’S CRITICISM (excerpt)
(From Our Parliamentary Reporter) WELLINGTON, September 25. The opinion that the Scientific and Industrial Research Department required a new head and was as dead as the dodo was expressed by Mr R. Semple when speaking on the Imprest Supply Bill in the House of Representatives to-night. The demands of industry required men with enterprise, vision and worldly knowledge, and the Research Department should be the most active and alert in the country. Instead of this, however, the department with its political and administrative heads was “too tired to give anything a go.” Mr Semple spoke of the industrial research which was being neglected in the Dominion, referring particularly to the carbonisation of coal and shale, and the tapping of the oil resources which were regarded almost as unlimited. The Orepuki shale works, for instance, presented something of a mystery, and only the Government knew what was wrong. The works were held by monopolistic oil interests. They were constantly maintained in good order and their shareholders were, it was rumoured, receiving dividends merely to keep the works closed.
Mr Semple produced samples of oil taken from Orepuki shale 20 years ago by a German professor, and claimed that they represented some of the purest shale oil ever extracted in any part of the world. It was a shame, he said, to think that an industry capable of producing oil like that should be strangled, particularly as it kept so many men out of work, and particularly as New Zealand in her isolation required some local source of supply. -Otago Daily Times, 26/9/1935.
OREPUKI SHALE
WEALTHY FIELD UNEXPLOITED
SOME QUESTIONS AND SOME FACTS.
“Criminal to be lying idle.’’
‘‘Would solve unemployment.”
“We advocate a change of government.”
“Everything in great order.”
No, these are not political slogans but extracts, taken at random, from the ’’remarks” column of the visitors’ book in the office at the Orepuki shale works. For many years past these works have periodicaly cropped up in discussions and many and varied have been the opinions expressed concerning them by “the man in the street.” To the great body of the general public, however, it is only known that at one time these works produced kerosene; they were active for a short space of time and, for some obscure reason, closed down. So much was generally known and, with the object of “seeing for himself,” a “Southland News” reporter paid a visit to Orepuki and was shown over the works by the caretaker, who has been in charge for about 30 years.
READY TO START
The works are just a mile out of the township and a tram-line connects them with the railway. Large double gates, with the forbidding notice, “Trespassers will be Prosecuted” bar the entrance — but there is a side door! To those who have no idea of what shale-mining means the first view will come as a surprise for the large yard encloses several imposing brick buildings, the bricks themselves having been made from the clay pit nearby. There are offices, workshops, engine-rooms, pump-house, refineries, refrigerating chamber and stills, but over them all towers the double row of huge retorts. A round of the buildings is made and the machinery inspected. Everything is covered with a greasy preparation that prevents rust and that it has done this was proved to one sceptic by the caretaker who scraped off some of the protective covering to disclose a burnished steel shaft, as bright as the day it left the workshops. A quick turn of the wrist and a large fly-wheel spins easily on its axis while pistons glide smoothly backwards and forwards for a moment. “Yes, if we had steam up, all these machines would be running in five minutes,” comments the guardian as we walk through an echoing engine-room. Everything is in splendid order. All pipes are kept tarred and there is no sign of decay in any machine or building.
Thirty-five years ago these works were in full swing and 100 men were employed. For 24 hours a day the work went on. The shale, a slatelike rock, was mined in the 1200acre property, trollied to the crusher, then hoisted 30 feet to the hungry mouths of the 20 retorts. Here it was subjected to great heat and the gases formed passed off into the condensers where the gases were cooled back into liquid form, a sluggish tarlike substance which was then run off into a 12 feet well. From there it was pumped into the stills and the process off refining began. This rotten rock, which was first turned into gas, ended up by producing kerosene, petrol, tar, sulphate of ammonia, twenty different grades of oil, alum, vaseline and wax. It is hard to believe, but in those days the petrol was allowed to run off as waste. There was no use for it!
THEN AND NOW
The works hummed with industry, men hurried to and fro, engines screeched and the glare of furnaces lit the sky. But the thunderbolt fell one Wednesday when the following cablegram was received from the headquarters of the company: “Workmen will be paid at usual time tomorrow (Thursday) instead of Saturday.’ From that day 33 years ago no wheel has turned. One of the retorts still stands charged but the fire has never been kindled. £120,000 were sunk in the concern which new stands idle. The mind conjures up a picture of this one-time hive of activity — but what a contrast! The visitor turns away with that feeling of depression which long-vacated buildings imposes. An illusion remains. It is as if only a wave of a magic wand were needed to dissipate the ugly spell and set an industry once more in motion. Grass grows over the railway track, and a tall chimney, its top rent by lightning stands as a mournful monument to departed glory but the time may come when the large heap of duplicate parts stacked now so neatly in the yard will fulfil their proper function.
When the company had just started, the duty of 6d per gallon was removed from imported kerosene. Then it was stated that only 50 per cent. of the by-products were being saved. At any rate the works were closed. Some four years afterwards experts put down bores in the valley and estimated the quantity of shale available to be some millions of tons. The shale is the richest in the world and it sits on a seam of coal 11 feet thick. This is a great advantage for both can be mined at the same time and the coal used for the furnaces. The question of re-opening the shale-works has been raised many times. Successive Ministers of Mines have promised that they would mention the matter in Parliament. “Hansard” shows that they have certainly kept their word and "mention” is the correct term applied, in this instance — but that is as far as it has gone. When Mr R. Semple, M.P., visited the district recently he also had something to say on the question of re-opening the works.
BENEFITS TO SOUTHLAND.
Many stories are current concerning the barriers in the way of such a project: We have all heard the tales of leases, of “big business” and so on, but it is learned from a reliable source that the representative of the owners offered to sell the concern at a reasonable price. Nine years ago an Australian company, with two New Zealand directors, was prepared to take it over but it is alleged the Government wished to bind them down to a certain output and so negotiations fell through. At one time Orepuki was a thriving town but now it has followed the way of many New Zealand mining towns, in its streets a round dozen empty shops can be counted — and how many deserted houses does that mean? When the shale-works were in action they employed 100 men but with modern facilities it is estimated that the output could be quadrupled and employment found for at least 300 hands. Would that make any difference to Southland?
“It is a queer business." said an ordinary citizen who tried to study the question out. "it makes one reflect on those entries in the visitors' book." -Gisborne Times, 30/9/1935.
There is a conspiratorial whisper running through this story. It is the suggestion that, somehow, more than simple economics is behind the long idleness of the Orepuki works. The whisper suggests to me that some thought that the demise of the industry was due to an international monopoly rather than government tax decisions. If so, I will never know.
ELECTION POINTS
In answer to a question about the Orepuki shale works, Mr J. Hargest, National candidate for Awarua, said that there was no mystery and nothing sinister about the inactivity at the works. It was purely a matter of business. The New Zealand Coal and Oil Company held a 66 years’ lease of the deposits dated from 1899. It had worked the deposits for two years, but owing to the broken nature of the shale the cost, instead of being 3s 6d a ton as estimated, was 18s. The shale yielded 38 gallons of oil a ton and 29lb of sulphate of ammonia. Owing to the cost it had been unprofitable to work and therefore had closed down. The only place where shale was worked profitably for the production of oil was in Scotland, where the shale was unbroken and yielded 100 gallons a ton. In New South Wales the shale gave a yield which was about as good, but it was a fact that the treatment of 600,000 tons in 1920 had fallen to 600 tons in 1924, and the works had practically ceased to operate. A few years ago an enterprising sharebroker had tried to raise capital for a company to take up an option on the works on advantageous terms, but investigation showed that the deposits could not be handled profitably and the capital was not forthcoming. -Otago Daily Times, 4/11/1935.
LOCAL AND GENERAL
The machinery at the Orepuki shale works is being dismantled. A number of boilers were recently acquired by the new Chemical Industries Company which are erecting works at the Pourakino. The large containers have been sold to the State Forest Department, and these will be erected at Conical Hills and will be used for creosoting purposes. -Western Star, 10/6/1938.
DUNEDIN NATURALISTS
CAMP AT COLAC BAY (excerpt)
Members of the Dunedin Naturalists’ Field Club held a camp at Colac Bay, Southland, from January 16 to 26. Places of interest in the locality were visited, the party being shown through the Orepuki shale works, now in process of demolition and re-erection elsewhere. -Otago Daily Times, 28/1/1939.
General News
The final dismantling of the equipment at Orepuki set the seal on the end of the enterprise. A new World War predictably opened further discussion on the use of the shale deposits - who knows, maybe if the equipment had remained, faithfully greased and tarred by its caretaker, it might have been used to supply fuel for the war years.
What can be seen now is not much. A large tank beside the highway at Orepuki which looks like a boiler but is not. A brick building, about the size of a barn, visible in a field from Shale Road on the outside of the town. A number of picturesquely decaying shopfronts on the main street of Orepuki from more confident years. Perhaps there are interesting relics at the sawmill at Conical Hill - something to look for when I next find myself in the area.
A great read a and well documented history of the shale works. I can remember seeing what was left in the 50's when I was growing up in Orepuki.
ReplyDeleteA great read a and well documented history of the shale works. I can remember seeing what was left in the 50's when I was growing up in Orepuki.
ReplyDelete