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BRITISH ISLES' OIL PRODUCERS, LTD.

21st May 1914, Page 15
21st May 1914
Page 15
Page 15, 21st May 1914 — BRITISH ISLES' OIL PRODUCERS, LTD.
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Which of the following most accurately describes the problem?

The prospectus is issued of British Isles' Oil Producers, Ltd., with, an authorized capital ef £1,000,000, divided into 120,000 seven per cent. cumulative preference shares of 15 each, 375,000 ordinary shares of £1 each, and 25,000 deferred shares of .21 each. The names of the directors, bankers, solicitors, and other officers, are stated in the announcement which appears in our advertisement pages concerning the issue of the full prospectus ; that announcement includes an estimate of profits in respect of a throughput of 500 tons per day of Ballycastle cannel coal, as well as summaries of certain expert opinions, together with the full text of the reports of Mr. W. J. Atkinson Butterfield and Sir Boverton Redwood, Bart, D.So. These particulars are sufficiently detailed to relieve us of the necessity to quote them here, but we may very properly make brief comment upon the scheme as a whole.

Several years of experimenting have now brought the -Del Monte process of low-temperature carbonization to a high and proved degree of commercial efficiency. This result has been attained in part through the complete study of the physical and chemical properties of a. variety of raw materials and products, and in no less degree by

perfection of the mechanical porfions of the plant. The company has had the advantage of the 'services of some of the keenest intellects in chemical engineering, and these gentlemen, who remain on the staff of the company, should be able to give a good account of themselves in large-scale produce tiori. The effectiveness of a single

unit having been carefully proved, it is only a matter of repetition, by the laying down of large numbers of such unite, to obtain a big output. The criticism of high wear and tear is one which we feel cannot be justified, having regard to the fact that the temperatures at no time exceed 1200 degrees Fahrenheit in any part of the flues, whilst they are considerably lower in the hollow spindle of the screw which works the material from end to end of the converter. The bearings of the screw-shaft are, of course, external to the furnace, whilst the screw itself is renewable in sections which cost under 15s. each. So much for the process and plant considered by themselves.

It remains for the future to show whether the company will be

financially successful. Its ownership of large tracts of mineral-bearing lands which are rich in cannel coal, coal and shale, in various parts of the United Kingdom, gives it assets of considerable magni tude. The total yield (541 lb. per ton of cannel) of sulphate of ammonia is high; due to the fact thatmuchof it is to be recovered from the producers by treatment of the residues from the converters. The value of the residue from the treatment of cannel coal is, of course, not a fuel value, and the company's intended utilization of it is therefore quite sound. No coke can he marketed from cannel coal.

The company, when dealing with cannel coal as raw material, relies for its revenue upon the prdouction of ,spirit, fuel oil, paraffin wax, and pitch, in addition to the considerable value of the sulphate of ammonia. It is here that the Del Monte process differs from other low-temperature schemes, most of which rely upon the fuel value of the residue in the retort.

So far as concerns the spirit product., we do not find any statement as to its composition, nor as to whether the yield of 17.4 gallons per ton of cannel coal is obtained by direct fractionation, or in part by cracking. No analysis, no specific gravities, and no evaporation tests are put forward, and we are left to conclude that the spirit is in every way suitable for motorcar use. If the spirit does contain a large percentage of high-boiling fractions, it may be difficult to realize the exact profits which are estimated.

The strength of the company's position is almost entirely attributable, so far as the prospectus statements go, to its possession of cheap supplies of raw material, for we observe that no particular claims are made in respect of the possession of completed patents. We have reasons for believing that the closest investigation of the financial prospects of the scheme have been made by the directors, and their names certainly stand as an acceptable guarantee for the proper working of the undertaking. We ourselves have confidence that the Del Monte process will continue to rank as one of the best that can be utilized for the purpose of producing motor spirit and other valuable commodities from the highvolatile members of the coal family. The plant is one which virtually looks after itself, and the future will be largely dependent upon sound commercial management, to the end that the control and distribution of the output shall be effected to the best advantage.


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