TREE-PLANTING COMPANIES

Evening Star, Issue 19298, 10 July 1926, Page 11

TREE-PLANTING COMPANIES

PROTECTS HU THE PUBLIC Mr Langdon Smith, director of the New Zealand Perpetual Forests, Ltd., has forwarded tho following statement to us:— As certain statements recently made in the House, and subsequently repeated in tho daily papers, relating to operations of forestry companies generally are misleading and tend to operate a gainst, the best interests of the very people whom the Government wishes to protect, it is desirable that the public should know the following facts, which, so far as New Zealand Perpetual Forests, Ltd., is concerned, furnish a complete answer to the question asked in the House by Air Jones (Ellesmere) and reported in the Press. Air Jones was ostensibly seeking information on a matter with which he was not .very well acquainted, but the reply of the Minister in charge of the State Forest Service and certain remarks which recently appeared in certain newspapers, reveal an unfortunate and rather surprising lack of knowledge on the part of those responsible for thorn.

From the Press report of the remarks in the House it is made to appear that for the year ending Alarch 31 last the returns for eight companies show that the area actually planted by such companies amounted to 3,244 acres, and that the forest companies had acquired 72,540 acres of laud for their operations. 1 may hero interpolate that all forest companies operating in tho period under review were compelled to furnish to tho Government Statistician information on these, as well as on numerous other subjects., and although it is stated that only eight companies furnished returns it is regrettable that the figures quoted, although no one could gather it from the reports, wore in many cases from twelve to twenty months old.

It is obvious that in reviewing those or any other commercial operations over a specific period or at a specific point of time members of Parliament and other persons in a public or quasipublic capacity should take the. utmost care before publishing any statement, to see that it is strictly in accordance with fact. To anyone who docs not understand the position it would appear that the figures quoted represent tho total areas planted and acquired respectively by eight forestry companies up to March 31 of this year. Such, however, is not the case, as New Zealand Perpetual Forests, Ltd., has, in accordance with the requirements ol the Census and Statistics Act, furnished a return for period ended A! arch 31, 1925, the return for year ended March 31, 1926, being not yet compiled. These facts supplement our statement that tho comments and reports referred to need qualification. In view of the statements made, it is necessary, in order to remove any doubt which may have been created, to reveal the correct position of this company’s operations at Alarch 31 last. The total area acquired by New Zealand Perpetual Forests, Ltd., for planting operations was 15-1,2-15 acres. The actual area established in plantation up to the end of November, 1920, was 10.185 acres.

iTte certificate of the company’s surveyors, Messrs Harrison and Grierson, of Auckland, which contains the above particulars, is available at the head office for inspection. I lay stress on tho fact that New Zealand Perpetual Forests, Ltd., not only does not object to, hut welcomes, tho publication of figures relating to its operations. It docs, however, object very strongly to misleading statements being publicly broadcasted, the effect of wliich could so easily bo to prejudice tho position of the individual bondholders and the public generally. The company is well able to look after itself and carry out its contract commitments, but alarmist and misleading statements may in some cases cause individuals, who are purchasing bonds on the easy instalment system inaugurated by tho company, to discontinue their payments and forfeit not only the money already paid, hut what is a far more serious matter, the future benefits of participation in the enterprise. The by no means improbable effect, then, of ill-considered statements in the House or in the Press will he to damage tho very interests which it is; tho duty and desire of tho Government and the Press to conserve.

There are two points on which it may lie well to comment. The first is the suggestion, no doubt prompted by statements made in iljo House, that the Government experts arc unable to discover how money subscribed by the public is being expended. The answer to this is that there is no such difficulty. Admittedly each individual bondholder cannot make periodical visits of inspection of the plantations, but this dees not prevent them from satisfying themselves that their money is being wisely expended, and that New Zealand Perpetual Forests, Ltd., is faithfully carrying out its commitments. Large numbers of the bondholders in the company, including many distinguished visitors from overseas, have carefully examined the whole of the company’s operations, and in not a single instance has anything but corncomplete satisfaction been expressed. Among others who have visited and reported on the plantations and made extensive inquiries into the company’s financial position, I may mention Sir Herbert Matthews, Sir Douglas Mawson, and Senator Sir Henry Harwell, and satisfaction with the company’s whole organisation was expressed in no uncertain manner by those named. New Zealand Perpetual Forests. Ltd., extends an open invitation to those who would like information regarding the complete operations of the company’s organisations, to make an examination of the whole work, and in the past such invitations have been frequently made and freely accepted. Moreover, bond holders are kept accurately informed from year to year by the reports of their own trustoce and tho company’s Forestry Administrator. While New Zealand Perpetual Forests. Ltd., realises that its first duty is to cany out its obligations to its bondholders, it fully realises tire right of these people individually, and as a class, to be kept fully and accurately informed as to the steps taken to establish and preserve tire forests from which their profits will come. To this end, the company supplies all possible information by means of authentic reports and photographs, but the directors wholeheartedly wish it were possible for each bondholder to see for himself what is being done on the field. Those who have had this eye-opener experience are now the most enthusiastic supporters of tho company and its afforestation project. A few figures here may not he out of place. Apart from the 10.185 acres planted up to the cud of November last, the company, since tho beginning of the present planting season, has planted an additional 10.000 acres, ami thal area will have been increased within the next three months to 4-1,000 acres. To achieve this there are now approximately 600 men actively engaged on the planting and maintenance work. That is to say, the company has completely fulfilled all its obligations to bondholders to dale; its planted area is now over ‘30,18:3 acres, which by September 00 next will have been increased to approximately 3-1,183 acres: that will provide the requisite area of planted land, with all proper reserves and fire breaks to cover all contracts and commitments in full up to date. And ao it is hoped the work will go on from year to year. The additional area laid down in each planting season (If fay to September) covering all bonds subscribed for up to the beginning of tho preceding No-

vembei. Tlic iullcsfc information substantiating these figures and statements is open to the member for Ellesmere, fcbe Minister in Charge of the State Forest Service, representatives of Press, and everyone else genuinely interested. All that this company asks is that people make an honest and impartial investigation before giving vent to public utterances instead of talking first and possibly not investigating alteru'ards. The second point reads; (t Jt is hoped that he (the Minister) will introduce a Hill upon tile lines indicated, without delay.” Six months ago the directors of Now Zealand Perpetual Forests, Ltd., through a deputation to the Prime Minister, expressed their willingness to fall in with any proposal for legislation designed to impose upon evoiy forestry company conditions lor the protection of the public. This is still this company’s policy. It agrees with the desirability of legislation to protect the public from association with unsound or ill-considered schemes, and it thinks that this protection can best bo achieved by the imposition of certain conditions ami regulations. So far as the organisation and administiation of New Zealand Perpetual Forests, Ltd., are concerned, the directors feel they are justified in saying that they have left no stone unturned to secure the best possible results. The field operations, which have attained unprecedented proportions in forestry establishment are under the direct administration of Mr Owen Jones, 15. A., diploma of forestry (Oxford), late of the Ceylon Forestry Service, and more recently chairman of the Forestry Cotnmision of Victoria. With the qualifications and ability of this gentleman the Government itself has expressed complete Rptisfaction. The general management or the company is in the hands of Mr Frederick T. Smythe, F.J.0.A., public accountant, late of Sydney, who it may be mentioned, successfully finalised the Australian wheat pools, which meant a net realisation of 189,000,000 bushels. A monthly report on the progress and efficiency of the planting operations is furnished by Professor H. Hugh Corbin. professor of forestry, to the Auckland University College, of the Trustee Company, which body is the direct agency between bondholders and the Forest. Company, and on behalf of all bondholders supervises- all work done by the Forest- Company; this assures bondholders that all work is efficiently done. J may conclude by saying that, members of the staff of the Now Zealand Perpetual Forests, Ltd., have spent a great deal of time answering destructive criticism and contradicting misleading reports. This may be more or less inseparable from the early stages of the company’s progress, hut in view of the information and assistance open to any properly accredited investigator, there would seem to ho no justification for a continuance of it. The company has a tremendous amount of work to do, and this fully taxes the time and energy of every man in the organisation. Constructive criticism, however, will always be welcome.