THE PROSPECTUS OF THE NELSON PINE FOREST, LTD.

NZ Truth, 15 March 1924, Page 13

THE PROSPECTUS OF THE NELSON PINE FOREST, LTD.

A Document Which Does Not Do Justice To The Proposition. Sound Undertaking Of Endowment Value. This is the third occasion on which "Cambist" has Written regarding the above. In previous issues of "Truth" the remarks penned by this candid critic depended solely upon the prospectus Eent forth by the promoters of the company, and it will be remembered by the readers of this column that all of the points touched upon were handled m a cautious manner and he may at once say that he considers that everything penned hitherto has been quite justified, as they were confined solely to the information which the promoters thought flt to sponsor. During the month of ' February, "Cambist" went to the genial Nelson district to bathe m its glorious sunshine and to gather up a winter supply of latent heat with which to warm the cold outlook ot June and July that is ahead of us. Taking advantage of that never-to-be-forgotten spell of enjoyment, he went over I every inch of Uie properties comprised ln the landed estate which is to be planted by the vendors to the / Nelßon Pine Forest, Ltd. He was absolutely sur-prised-at what he saw. There were about 8500 aores of beautiful country, nearly every acre of which is plowable, lying sweetly m sunshine, surrounded by valleys which are sheltered from all winds, and which seemed to be designed by nature as A CHOICE •NURSERY for uprearing of sylvan giants. On the properties themselves (there are two sections, one of 2063 acres and the other of 1418 acres) there is abundant evidence of the suitability of the land for the growth of Pinus Insignia and of Australian gums. ' Aa regards the former, the most striking feature is m the fact that numerous patches of selfsown trees have established themselves m various portions/ of these properties, while m places where' old plantations have been cut out and the timber used ln building construction these blocks have regenerated themselves with a close growth of vigorous young trees. "Cambist," who has taken a great Interest ln afforestation, and who has spared no expense m travelling over the Dominion to see for himself what progress has been made In this wonderful new industry, was greatly impressed by the extremely healthy appearance both of the young trees, as well as of the larger timber on the estate. In his opinion there is nothing better to be found m any part of the Dominion. Where the vendors have started planting, m every case the results are most remarkable. The leading shoots of the young trees are distinctly prominent, so much so thai it is a feature* which must attract instant attention of any person who even bestows passing attention to this fact. At any rate, "Cambist" Is not the only person who was Btruck by this fact for on various occasions practical foresters have expressed their wonder at the unique occurrence of these growths. So far as he car gather there are TWO MAIN CAUSES for the growth and vigor of the trees. One is the high quality of the land, and the other is the total absence of strong winds which, m other places, warp and retard the symmetrical development of the pinus insignis. In a word, the climate and boil are perfect for. the purpose of the company, namely, the growth of the wonderful pinus insignis m a great patch of commercial forest When that 8500 acres is brought under perpetual forest what a wonderful source of wealth will be evolved, what potential gains will accrue to the investors I It will be noticed from these remarks that ln so far as the quality of the land is concerned (a matter to which "Cambist" has on former occasions alluded) that part of the proposition is entirely satisfactory. The contour of the country is most suitable for the purposes of the millers as there ls a gentle slope on both sides of the property, giving all of the advantages of natural gravity for the transposition of the logs to the mill site. In no case will expensive haulage gear be required, as is generally . the case m localities where' hilly country ls m evidence. Whether the timber of the future is sold to millers or milled by company thiß unique situation will certainly prove of considerable enhancement ln the disposition of these products. Bow many shillings more per hundred feet ln the way of royalties or m the huge savings ln cost of transportation may be gained by the company this writer is unable to say. But the fact remains that, owing to the natural lay-out of the country, the working costs will be VERY 'LOW INDEED. Then there is also the fact that tree planting, thinning out*" of trees, fire breaks, roads, etc., can be set m operation with the least expense to the company. In every way the proposition of forestry m this case offers the greatest possible Inducement to careful Investors and offers the best of hopes for a profitable outcome. A highly-placed official, whose duties and experience give the fullest authority to his remarks, has lately viewed this property, and this is what he has written: "I say that I have not seen a better piece of country used for tree planting. . . . The young trees I saw were growing well and I have no doubt as to the suitability of the country for growing trees. . . . The old plantations . . . give an excellent Idea of what the country is capable of producing In the way of timber." This communication cannot be published m full, much to "Cambist's" regret, for It was given under promise that general jublicity of the communication would not be used for company promotion purposes. Nevertheless, lt ls a splendid voucher for the merits of this particular scheme. Further, it Is, if lt were Indeed, a sound confirmation of the foregoing statements, as m both cases the remarks penned are based upon careful personal inspection of the properties and the plantations. The two blocks of land comprised In this property ARE COMPLETELY FENCED at present and at a low estimation of the valuo of this improvement a sum of £9000 might be set down. In addition, there 1b the homestead, a building of twelve rooms, also men's cottage and woolshed, which with the water supply laid on to houses and tanks, would bo dirt cheap at £3000. Totnlllng these improvements, it will bo seen that a sum of £12,000 Is arrived at. From this it will be noticed that the price to be paid to the vendors for the whole property 1b only prairie value, so to speak — a decided bargain favorable to the company, no matter how considered. Tho situation of tho properties Is at Belgrove railway station, from which a Hiding runs right on to the "Kalnul" block. Both properties are Burrounded by first-class roads, there being about nine miles of road frontage to thc larger block, and, say, one half of | that mileage around the smaller pro- | perty. Tho whole place In a gem of j beauty ln Ita present condition. But j it will be still grander when clothed with Its perpetual forest, In about three years time. Proflta (sordid

is a large plantation nearing the milling stage at present; besides there are over 300,000 trees planted by the vendors during the past year which have taken root and are ''exampling m their bright greenery and vigorous stand the fact that there need be NO MISGIVINGS regarding any possible failure m these respects. Now for the prospectus. "Cambist" invites readers to get a copy at once. There is much to interest any reader of its pages. Nevertheless, that docu'inent is darkened by the cautious conservatism of its compilers, the honorable gentlemen who stand as directors of the proposed company. f They, m their efforts to refrain from boosting tactics, and m order to inspire confidence m the investing public, have whittled down the strong points of their meritorious proposition almost to the dead level of sadness. This is unfortunate m many respects, for it makes it hard to the general reader of that document to appraise the value, present and future, of what is so gently offered to them. In times like the present, when so many tricky offerings are boomed beyond reasonable valuesi even boosted nefariously with the object of trapping; the unwary, it ls tn the opinion of this cautions critic a better policy for those who ere honest promoters to boldly set forth the undoubted merits of their "goods" and not to fear the < consequences of so doing. Here Is a case that will stand the fullest investigation. Here Is an offering which should appeal to the prudest persons who are looking for a sound endowment. "Cambist" took 'occasion to ask the promoters if. they would accommodate at the homestead on this property parties of young persons who would go over to Nelson to look over the proposition and judge lt at, firsthand. This Idea was EAGERLY ACCEPTED, and It is now merely a matter of arrangement to give effect to it before the winter comes. No better camping site could be found than the homestead , block on this property. Let it be tried out. It is only necessary to write to ■ Messrs. Milner and Neale, the secretaries of the company at Nelson, m order to get particulars of the conditions attaching to this arrangement. There is only steamer fare from Wellington, or other place, and train fare to Belgrove, plus the cost of "tucker" involved for those who may go to view the property and there will not be any obligation imposed upon those persons to buy shares m the company. "Seeing is believing," so "go and see," ls "Cambist's" advice to those who have any doubts regarding this matter. Once more, will "Cambist" assert that commercial tree-growing is a payable business, provided that the conditions of situation, management and all of the financial considerations are closely adhered to. Where these points are attended to, success is certain. New Zealand and Australia need soft timbers, and the growth of these m sufficient quantity must be forced on to meet an undoubted need. Millions -will be made from these artificial forests. The value of investments m seundly-conducted companies will be PERMANENT, PROFITABLE, and worth much more than anything offered by ordinary insurance. In the first place, the return on a fully paid share costing only £25 should be not less than £ 600 m from thirty to thirtyfive years' time, • speaking generally. In this, case the Nelson Pine Forest Ltd., there will be earlier returns, for a large area is under trees already. This proposition will supply only 3000 shares for investors, as that ls the limit needed to cover the land area, planted and to be planted with pinus Insignis, a share to the acre. It ls more than possible that much more than £ 600 per acre will be the reward awaiting thrifty investors ln tree growing companies, and though this concern has only recently been Inaugurated lt may probably be the first to show what a wonderful profit earning matter there Is m afforestation. Many other companies will be started ln this line, and there is room for them aU. Timber growing is a national need, snd there ls no cause to fear Its being over done. And so ends another chapter, by "Cambist," ln the first volume of the new history of the new forests which will yet clothe millions of acres and add to the wealth of the Dominion,