PAPER MILLS APPLICATION

Evening Star, Issue 23501, 15 February 1940, Page 10

PAPER MILLS APPLICATION

EXAMINATION OF MANAGING DIRECTOR ADMINISTRATIVE CWTB [Fu United Press Amooatiok.] ’ WELLINGTON, February 15. The resumed cross-examination of Mr Horrocks in the Whakatane Paper Mills’-application to be allowed - to increase prices was in connection with the salaries paid to the administrative officers. 'Witness said that Brown, secret vry of the company, was previously; his partner in a law office. When-he (Mr-Horrocks)’ was appointed managing director of the paper mills he offered Brown the secretaryship at £I,OOO a year. Partnership was dissolved, and Brown went to Whakatane. Witness had scaled down his own salary, but did not think there was ground for reduo. ing Brown’s. The services of Brown, Wright (the accountant), and Langtou.; (the costs accountant) were all indispensable. and there was no overlapping and no redundancy. Under £5,000 m year was being spent on 'the maintenance of the company’s forests. The amount last year was £4,439, including depreciation on the logging equipment* The whole operation of making firebreaks and roads was done by three men. The expenditure at the mill in producing cardboard and all the operatic: ; tied up t° it was £250.000 a year? therefore to suggest that some of the amount of the salaries paid'the administrative officers should be allotted to forestry did not make sense to him. Questioned about Complaints front shareholders* he said the only complaints Were ’about hot yet having ceived their interpSlu - . . ‘