NEW ZEALAND FORESTS

Auckland Star, 2 January 1931, Page 4

NEW ZEALAND FORESTS

ADVANCE OF INDUSTRY.

THIBTY.TWO COMPANIES.

TOTAL ASSETS ' £3,723,132

Rising timber prices in the past decade ami the certainty in the future of further decreases in the available supplies, together with a reasonable prospect of a constant and increasing demand, have in recent years focussed attention in New Zealand on the growing of timber, states the '--Monthly Abstract of Statistics.'" The formation of soft-wood forests as a profitmaking proposition was seriously- undertaken -by private enterprise in 1923, since when great strides have been made.

The planting done by the State Forest Service for the year 1929-30 was 53,883 ucvee, or 3521 a-cres less than in the previous year. Commercial concerns (32 in number) planted 32.057 acres during 1929-30 or 5 per cent less than during 1928-29. This decrease may he to some extent explained by the fact that in commercial forestation planting operations are governed by the sale of bonds, and, as these sales reached their peak some five or six years ago, it is •only natural to find that the areas planted have decreased. In 1926-27 49,524 acres were planted, in 1927-2S 37,284 acres, in 1928-29 34,498 acres, and in the year under review 32,057 acres. Two Types of Companies.

Broadly speaking, two kinds of organisations have been formed to carry out the various ventures. The first one is tlie joint stock company, where the property in the forests is vested in the company, each shareholder receiving a share of the profits according to the amount of capital invested in the •company. The second ds a private company registered with a 'comparatively small .capital, but in which the investing public do not become shareholders. The company contracts with each .investor that in consideration of his paying the stipulated amount of cash it will convey to him at the end of a given term a certain area of land duly planted according to the prescribed agreement. The interests of the investing public are guarded by trustees appointed hy the investors, and the lands concerned are transferred by way of mortgage to the trustees until the time for conveyance to the iuvestor arrives. Of the 32 returns received from concerns engaged in forestation operations during 'the year ended March 31, 1930, eleven returns were from companies operating on the bond basis; tout,. though in the minority in point of numbers, their operations loom large in the figures for all establishments.

Altogether 32 concerns furnished returns for the year ended March 31, 1930, as against 31 for the previous year. Of this number, 17 were public companies, 13 private > companies and 2 "private individuals.

The figures for the year ended March 31, 1930, show substantial increases over the previous year. Total assets and liabilities have advanced 'by 24 per cent in comparison with the year 1925-29. The total receipts and payments have increased ;by 7 per cent and 6 per cent respectively. At March 31, 1930 the total number of aeras planted was 179,370, compared with 146,713 twelve months earlier.

Tabulation of Assets. The following comparative statement shows a classification of the assets of forestation companies as at March 31, 1929 and 1930:— 1,929. 1930. £ £ Land for forestation purposes 512,197 551,993 Land for other purposes 3,605 1,301 Development account 1,653,410 2,082,525 Investments 464,110 700,879 Goodwill and preliminary expenses.. 132,860 109,366 Other 229,314 274,088 Total 2,995,586 3,723,152 The article gives an explanation of the terms used. "Land for other purposes" ©overs land held for purposes other than tree planting. "Development account" expenditure is charged to this account during the development of the plantation, i.e., until it matures. The "goodwill and preliminary expenses" item represents the expenses of the formation period, which, have .been capitalised. In connection with assets it is observed that land for forestation purposes has increased iby 8 per cent in value over the year 1928-29. For the years ended March 31, 1929 and 1930 receipts are shown at £782,207 in 1929, and £838,180 an 1930. For the same periods payments were £793,377 and £841,522.

•Sale of Forest Areas. There were eleven concerns engaged 'in the sale of 'forest areas during the year ■ended Maxell 31, 1930. Areas sold iu that time totalled 36,295 acres, making the total area sold to date 226,163 acres. The investing public undertook the liability of paying £927,284 on account of contracts entered into during the year, making a total for all contracts to March 31, 1930, of £5,846,708. Against this 55,675 acres involving a payment of £1,488,984, on which £55,934 had been; paid, were surrendered or cancelled by purchasers. The total number of employees working was 733 in 1929 and 891 in 1930. Wages paid for those years were £142,194 aud £138,660. Planting Operations. During the year ended March 31, 1930, 30,220,165 trees were planted, 'against •31,814,981 in the previous year. Of this total 23,467,901 were planted on new areas. The new area planted during the year took up 32,657 acres, bringing the total area planted to that date to 179,370 acres. Of the trees planted the various pints were a' majority, with pinus insigms in the lead at 21,447,324 on new areas. Other varieties were redwood, poplar and eucalypte. • , At March 31, 1930, the total area oi land held for forcstation purposes was 332,817 acres, valupd at £831,783, or an average of £2 9/11 an. acre.