NEW ZEALAND FOREST PRODUCTS, LTD.

Dominion, Volume 30, Issue 260, 30 July 1937, Page 6

NEW ZEALAND FOREST PRODUCTS, LTD.

First Annual Meeting Dominion Special Service Auckland, July 29. The first annual meeting of New Zealand Forest Products, Ltd., which was held in Auckland, was attended by two directors from Sydney, Sir Charles Marr and Mr. IL Landon Smith. Mr. D. Henry, /Auckland, chairman of directors, presided. The adoption of the report and accounts was moved by Mr. Henry. He referred to the desire of. the company to enter into possession of forests. This could only be done after it bad lieon determined what compensation for maintaining forests should be paid to the company by New Zealand Perpetual Forests Limited, which had planted the forests and contracted to maintain them for 20 years. Arbitration proceedings between the two companies for a settlement of that question wore now being heard by the Bondholders’ Incorporation Commission, and finality was expected within a few months. The matter being sub judice, it was not proper to indicate any sum or give other details of claims at present. Practically no progress could be made toward realisation of forests until the company obtained possession of the property, and it could not take possession until it got. a suitable amount of compensation from New Zealand Perpetual Forests, Limited, for carrying on the balance of the contract entered into with individual bondholders to maintain the property for 20 years. The chairman counselled shareholders to take a long view of their investment as, while the forest was of great potential value, it was probable that a policy of gradual realisation would give best returns in the end. The directors were faced with problems of great magnitude, but they could be relied on to proceed with caution and in accordance with the best technical advice obtainable.

Mr. Henry explained that bonds wore divided info 28 classes, representing various areas planted by New Zealand Perpetual Forests, Limited. It was hoped to consolidate all of those into one class on a basis which would fairly protect the interests of each, particularly those who had subscribed for the earlier issues, of which the trees were much nearer maturity than later plantings. Sir Charles Alarr seconded the adoption of the report. He emphasised the importance of the negotiations proceeding at. present and the potential value of the company’s forests. These, lie said, were 170,000 acres in extent, and ho paid a tribute to the thorough manner in which New Zealand Perpetual Forests, Limited, in establishing that: great national asset, had carried out its contract to bondholders.

The report, and accounts were adopted.