THE COMPANIES ACT

New Zealand Herald, Volume LXX, Issue 21639, 3 November 1933, Page 13

THE COMPANIES ACT

Sir.—lt is obvious that the Government's advisers herein included no one conversant with or interested in the ilotation of new undertakings. 1 am convinced that despite share-hawking many of our public utility companies are to-day handicapped through shortage of capital. I am equally convinced that there is plenty of idle capital iu the country, held out of the channels of industry through lack of confidence. The establishment of confidence and the elimination of share-hawking—an occupation both undesirable and distasteful —would automatically follow the adoption of a sound State policy of industrial development. Every proposed company should he submitted to a searching investigation before it is granted registration and should be so classified that there could be no misrepresentation to the public. All capital invested in useful industry, deemed by the Government after investigation to be essential or desirable, should carry a State guarantee of safety and reasonable return. This would, of course, necessitate the appointment of supervisors or auditors, but presents no difficulty, as there are to-day a number of extremely capable men in the public service who are wondering how long their services are to be retained. Everyone who has given the slightest thought to the problem of rehabilitating this wonderful little country agrees that the one real hope lies in the establishment and successful conduct of useful industry; yet, not withstanding the most pressing representations, those in the position to take decisive action seem content to muddle along in the trough of the depression, hoping for a miracle from the skies to save disturbing traditional lethargy. -T. M. O'Connei.l.