UNINVESTED MONEYS

Dominion, Volume 22, Issue 261, 31 July 1929, Page 13

UNINVESTED MONEYS

'Sir, — We notice with interest an account of an address by Mr. M. H. ,Wynyard at the Commercial Travellers’ Club, Auckland, wherein he suggested that a committee of business men be set up in order to advise investors what to invest their money in so that the large sum of uninvested moneys now in the country eould become available for business purposes. We would like to know who would be responsible for the investors’ monies’ in case of the failure of an investment made on the advice of such a committee. Does he propose that the Government should guarantee each investment made under his scheme. Let us relate our unfortunate and disastrous experiences as investors in this cduntry. Some time back Mr. J. _ Belcher started a business of obtaining gravel from the Waipa River and selling it, chiefly to local bodies, in the Waikato and adjoining districts. The business developed and a company was formed, but before being finalised it was considered in the interests of the prospective shareholders to obtain the opinions of the Ministers in charge of the Government Departments whose operations affected the business. During an interview with the last Prime Minister, who was Minister of Railways and Public Works, he expressed an opinion thpt we had struck what appeared to be a good thing, as large quantities of material would be required for roads in our market area. This naturally gave us confidence to proceed, as no better assurance could be had than that from those in charge of the Governmental administration of the country. Could the proposed committee give a better assurance? We doubt it, as there would be nothing to prevent the same treatment being meted out to other invetsors as was our lot to receive. Our company went ahead and ordered the necessary machinery, provided a railway siding and other plant, etc., but before the machinery arrived the Government made such a drastic increase in the rail freights that in the end the company was forced into liquidation and most of the men employed went on to the relief works ip the district. _ Before the company went into liquidation the Ipte Government wds approached to modify the drastic alterations in rail freights so as to allow the company to exist, but, in Spite of promises, nothing was done. There was no need for the drastic alterations made, and the desired results to the Railway Department have not been achieved, but a national loss has resulted. Is it any wonder that the investor tn New Zealand is looking for investments in other countries, and those who do not desire outside investment are waiting for definite assurance that interference by the Government in business is to be curtailed to the utmost and drastic changes will not be made in existing conditions which will place their investments in jeopardy. Unfortunately, the result of the forcing into liquidation of our company by the late Government is not limited to the confines of New Zealand, as capital was subscribed in London. It enn be readily realised how the nets of the late Government caused untold damage to the investors’ faith in this country both here and abroad. Is it not the duty of the present Government to remove the stigma caused by the acts of the late Government which exists in the eyes of the investors? We would be pleased to know how Mr. Wynyard would overcome this and similar troubles except by compensating the investors for the losses caused by such acts. —We nre, ete.. J. BELCHER AND CO., Per ,1. D. Holmes. D.R.0., Chairman of Bisectors. Wellington, July 25.