Was Oil Found?

Terrific Row In Federal House

"THE oil search in Papua and New Guinea led to a series of lively “scenes” in the Federal House on Sep tember 9 and 10. .

The trouble was caused by Messrs. Ward and Beasley, Lang Labourites and political hoodlums. Mr. Ward, on the 9th, asked the Prime Minister whether oil in com mercial quantities had been found in Dutch New Guinea, near the British border. The Prime Minister said he had no information.

Later, Messrs. Ward and Beasley declared that, in view of this announce ment, a prospectus issued by Oil Search Ltd., of which Sir Charles Marr was said to be a director, appeared incorrect.

Either the Prime Minister’s answer was incorrect or Sir Charles Marr was as sociated with a fraudulent company.

Mr. Beasley said the prospectus claim ed that the company had a concession over territory in British New Guinea, adjoining an area in Dutch New Guinea, in which both the Shell and Standard oil companies were interested. He said that the prospectus continued —“Two years ago the Administrator of the Man dated Territory reported to the Prime Minister that ‘splendid oil wells some few miles from Bongu had been tempor arily sealed.’ ”

Sir Charles Marr was away. Ministers, obviously surprised, promised an inquiry.

Next day, there was a terrific row.

Sir Charles Marr was able to show that he was not connected with Oil Search Ltd., in any shape or form. But the political hoodlums, while accepting the statement, made no apology.

The Prime Minister said that Mr.

Ward’s original question had been a & cepted as applying to the present day.

Inquiry had shown that 3i years ago, on January 30, 1934, General Griffiths, Ad ministrator of New Guinea had sent to Canberra a report by D. 0. Townsend, at the Sepik. The latter, referring to oil in Dutch New Guinea, said: “I was in formed that the former was being over produced at the moment and that the splendid oil wells some few miles from Bongu had been temporarily sealed. Ap parently boring is still being carried out . . . The sealed oil wells at Bongu are 800 metres deep.”

A copy of the report was given to Oil Search Ltd., in August, 1934; and it was referred to by that Co. in a circular to shareholders on November 14, 1936. It never was included in a prospectus.

But Mr. Ward would not accept these perfectly feasible explanations. With the Lang Labourites howling and yelling sup port, he declared that the report had been “suppressed;” and that there had been racketeering. He defied the Speaker, and was suspended for one week, and ordered out of Parliament, amid tremendous up roar.

It was a typical “mare’s nest;” and the scene it caused has reacted sharply against the Labour Party in public opinion.

Messrs. Beasley and Ward made grossly libellous statements under the shelter of “privilege.”

Three months ago, the chances of a Labour success in next month’s election were about 10 to 1. To-day, the chances are about even.

Nothing has been heard, since 1934, about that oil find in Dutch New Guinea.

It obviously was an exaggerated report.

Sir Charles Marr is a director of Papuan Apinaipi Petroleum Co. Ltd., a small concern which was floated recently.