FORESTRY COMPANIES

Evening Star, Issue 19951, 22 August 1928, Page 5

FORESTRY COMPANIES

DO PEOPLE NEED PROTECTION? MINISTER OH PROSPECTUS STATEMENTS [From Our Parliamentary Reporter.]

WELLINGTON, August 21. “Has the Minister, in charge of State Forests done anything _to protect the public from tree-planting companies, winch have obtained a large sura from the public?” asked Mr J. A. Lee (Auckland East) when the Forestry Report was submitted to the House of Representatives The member declared that the average prospectus was in no way warranted by the facts of the position, and in view of the tremendous amount of money which was being invested in this industry from overseas, the matter had reached a stage at which tho dominion’s credit was involved. It was a frequent thing to see in the financial columns of tho Press tho signs of small investors who thought they had been getting a giltedged security trying in vain to sell it. Some of these companies had purchased land at too high a price to make a commercial success of their operations, but there ws no doubt that other companies operating on low-priced areas, conducted on proper linos, would bo able to succeed. Facts in the possession of tho public had caused sumo uneasiness, and ho hoped that the Minister, through his department, with its knowledge of the situation, would take stops to ensure that the community was not exploited by company promoters. Mr Lysaar (Gisborne) did not think tho Minister was called upon to take action in tho direction indicated, if tho Minister was wise, no action would ho taken. Thero was plenty of legislation on the Statute Book, and ample provision was made for the protection of the public. Mr Smith (Waimarino) thought it singularly unfortunate that, at the very moment when tho country was so troubled with unemployment and distress, members should ho found speaking adversely of tree-planting companies. Ho could not help feeling that such members were nob in a position to speak as they did. H would bo wiser if they were to go to the Minister privately and point out that certain companies were not m a sound position. Mr Smith felt sure that tho Minister, if approached, would make investigations and lake any steps necessary lo protect the public. Ho knew of concerns that were a wonderful investment for a man’s children, and it was wrung that they should bo attacked in wholesale fashion. Everyone knew that some ol the.,' companies were sound, said the Leader of tno Opposition (Mr Holland), but it was always found that wild-e.-d concerns grew up side by side with legitimate companies, whenever enterprises that wore likely to bo profitable mndo their appearance, it was wrong to suggest that members should not raise their voices, and that they should go privately to Hie Minister. To suggest that course was to suggest something that had never been done in tho past. GENERAL LEGISLATION FORECASTED.

Tho Hon. 0. J. Hawkcn stated that the department did not wish to interfero iu the legislation controlling afforestation companies, but there was an amendment of tho Companies Act in prospect, not applying to those companies in particular, but having to do with prospectuses. This might bo brought down during Hio session. It was in preparation, hut whether it could be introduced this sc-Hon he was not quite sur.;.

Turning to the question of probable returns Ircun afforestation, th .Ministcr stated that hisglepart incut, had no real figures, but it tbo production amounted to tW,oooft, to SO.OUOit per acre in forty years this was about all that could bo expected. Tho qnkdu'slgiwing tree was tbo pin us insignis, which camo to maturity in thirty-live to i’orty_ years. This uiado it valuable tor pulping. The average price in America for pulping wood was ii’dol per cord (about dUUt't board measure). This would give a margin in New Zealand, even if the price were cut down to £2. The object in sending a departmental expert to America was io see what use could bo made r ,: our native timbers for pulping. Haidwoods had too short a libre, but there, was a largo quantity of tawa in the North Island, which bad hitherto been a by-product of milling, but which, mixed with hardwood, might make good newsprint. This industry was not one for .small concerns. It. required a largo capitaland local consumption would not bo sufficient to establish tlu; industry. There would need to ho export trade, and if this was available there was sufficient pulping wood in the, dominion to enable a profitable newsprint industry to be established.