FOREST PRODUCTS

Evening Star, Issue 22718, 4 August 1937, Page 6

FOREST PRODUCTS

; POSITION DEFINED SURVEY BY CHAIRMAH REALISATION PROJECT The first annual general meeting of the New Zealand Forest Products Limited was held on July 29 in the offices of the company, South British Insurance Building, Auckland. Mr David Henry, chairman of directors, presided, and there were present Sir Charles Marr and Mr H. Landon Smith (Sydney), Messrs C. M. ißowden and IK. G. Buckleton (Wellington), Mr W. Fraser (Auckland), directors, and a good attendance of -shareholders. In moving the adoption of the annual report -. and accounts, which _ have already 'been published, the Chairman referred','to the desire of the company to enter into possession of the forests. This could/bnly be doneafter it had been determined what compensation for maintaining the forests should be paid to the company by New Zealand Perpetual Forests Ltd., who had planted the forests and contracted to maintain them for 20 years. Arbitration proceedings. between the two companies for the settlement of that question were now being heard by the Bondholders Incorporation Commission, and while the proceedings were both lengthy and involved very considerable progress in the presentation of evidence had been made, and it was expected that finality would be reached within a few months. t The cbmmission was also being asked to consider other points of difference relating: to the undertaking _ which existed -between the two companies, and when an- award was finally given it was anticipated that all matters in dispute between” them would be settled. The matter being sub judice it was not proper to indicate any sum or give other details of the claims at present. ENTIRELY SEPARATE ENTITY. Mr Henry made it clear that the company was an entirely separate entity from New Zealand Perpetual Forests } Ltd., the company which had sold the bonds and planted the forests. New Zealand Forest Products Limited, on the other hand, consisted solely of the people who had bought bonds. It was formed a little over a year ago for the express purpose- of combining the individual bondholders’ interests, and, following this combination, make it easier to manufacture and market the products of the forests. Practically no progress could be made towards the realisation of the forests until the company got possession of the property, ana it could not take possession until it got' a suitable amount ef compensation from New Zealand Perpetual Forests Ltd. for carrying on the balance of the contract, entered into with the individual bondholders to maintain the property for a maximum period of 20 years. After-this explanation of the difference between the two companies, Mr Henry stressed that there should not be read info these remarks any degree of doubt or pessimism regarding the future, but it could not be reasonably expected that the directors who had only been in office a little over a year should be. in a position to forecast, future * results when they had' not yet ‘ had sufficient opportunity to thoroughly ' investigate markets, etc., or to embark on any practical manufacturing programme. Mr. -Henry explained also that the bonds “were divided into 28 classes representing the various areas planted by New Zealand Perpetual Forests Ltd. In due course it was hoped to consolidate all of these 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. . NO TRADING OPERATIONS. Dealing with the accounts, the Chairman indicated, that as the company had not carried on any .trading operations during the year, the- statement was merely one of cash' outgoings from funds which had been advanced from the ( Australasian Forestry Bondholders’ Trust Company Ltd. The statement included such non-recurring items as the formation expenses, establishment of share registers, and cost of topographical survey and other items, which were in the nature of capital expenditure. Under the articles of association of the company none of the directors re- : tires until 1939, so that no election was necessary. The Chairman referred to ' the death ‘last . month of one of the board, Mr R. D.. Kennedy, of Brisbane, and a resolution of sympathy with his relatives was 1 carried. The board recommended that no appointment in his ■stead be made at present. The chairman also intimated'that, pending the decision of the arbitrators, Mr Fraser, who is also a director of New Zealand Perpetual Forests Ltd., had applied for and been granted leave of absence, without remuneration. The motion for the 'adoption of the report and accounts was seconded by Sir Charles Marr, and was carried. Sir Charges Marr (Sydney) referred to the great interest in the project taken by bondholders in Australia, who comprise rather more than half of the total: He paid a tribute to the value of the forests; and indicated the magnitude of the work before the 'directors in bringing the enterprise to a successful issue,; and stated that he was proud .to be,so closely associated with a work of such great national importance. , - The retiring auditors, Messrs Morris. Duncan and Gyliies, and Mr H. M. Newton, were re-elected.