PERPETUAL FORESTS

New Zealand Herald, Volume LXXV, Issue 22993, 22 March 1938, Page 7

PERPETUAL FORESTS

SETTLEMENT REACHED

BONDHOLDERS' AGREEMENT

TERMS TO BE RATIFIED After negotiations extending over 18 months between New Zealand Perpetual Forests, Limited, and New Zealand Forest Products, Limited, Mr. David Henry, of Auckland, chairman of New Zealand Perpetual Forests, Limited, said in Melbourne last week that a satisfactory settlement had been reached by agreement. The terms still remained to be formally ratified by the Bondholders' Incorporation Commission in New Zealand, be said, but it was expected that this would be done within a few weeks, when a public announcement of the details would then he possible. Jn tho meantime lie assured shareholders that a substantial sum, greatly in excess of that which they had originally discussed, would be paid to tho forest products company. Mr. S. A. Clarke, deputy chief for the forest products division of the Council for Scientific and Industrial Research, had been released by his department for six months, and would immediately go to Now Zealand to report on methods of utilisation. The bondholders' company, New Zealand Forest Products, Limited, was formed about two years ago under special legislation for the control and realisation of the forests.

LONDON MARKETS SEVERE BLOW TAKEN IMPROVEMENT EXPECTED LONDON, March 20 The Wall Street crash dealt the London markets a severe blow, but it is expected that they will reopen firmly alter the week-end. The losses in tho past week were unparalleled since the 192 i) slump.

The Financial News ordinary share index lost nearly 8 points in three days, in spite of the fact that it had been persistently declining for nearly 15 months. There are signs, however, that normal investment criteria arc beginning to reassert themselves. The consensus of shrewd City opinion is that leading .ordinary and commodity shares are at present greatly undervalued. On the other hand gilt-edges are likely to fall more and more from favour. Private investors are likely to be forced to seek higher yields if the cost of living rises and the purchasing power of money dwindles as the result of extensive rearmament. The consensus of opinion seems to be that commodity shares offer the best prospects for the next 12 months.

The Economist says it considers that the downward trend in business activity is likely to be accelerated in the immediate future, for the plans for an intensification of rearmament cannot immediately l>e put into operation. While storms have been rocking tho Stock Exchanges of Europe and America the commodity markets are comparatively calm. Indeed, metals were subject to a small burst of speculative activity early in the week, though it has since jK'tered out, and prices are only slightly higher on the balance. Rubber remained steady and tho prico seems stabilised around 7d. NEW INDUSTRY SEAMLESS STEEL TUBING AUSTRALIAN ENTERPRISE An announcement was made in Melbourne recently that a company to bo known as British Tube Hills (Australia), Limited, would shortly be formed to commence tho manufacture of seamless steel tubing in Australia. Capital will ho provided by Stewarts and Lloyds (Australia), Limited, which is associated with the Broken Hill Proprietary Company, Limited, and Tube Investments, Limited, of England.

The site for the large works necessary has not beou finally selected, but this will l>e announced at an early date, as also will the directors of tho new enterprise. It is anticipated that within 12 months of production this new industry will employ 300 Australian workmen. Key men will be brought from the English factories to train local artisans.

Tube Investments, Limited, is the predominant company in the seamless steel-tubing industry in England, and at its different factories it manufactures every type of tubular steel product—from the small hypodermic needle to the large tubing for boilers. The new Australian company wijl manufacture tubing used extensively' in aircraft, motors and cycles, railway rolling stock, trains, buses, shipping, furniture, refrigerators and golf shafts.

The technical director of Tube Investments, Limited, .Mr. W. W. Hackett, has been in Australia for some months exploiting the commercial possibilities of manufacturing there. He will supervise the commencement of activities in Australia for probably three years.

DOMINION LAMB THREAT FROM AUSTRALIA PURCHASES OF STUD SHEEP The opinion that South Australia would in a short time rival New Zealand for producing quality lambs was expressed in Wellington by Mr. G. M. JJlyth, representative ol .Bennett and Kisher, Limited, Adelaide, who has just completed a business tour through the Dominion making purchases of all the breeds of stud sheep for clients in South Australia, Victoria and Now South Wales.

The only reason why the quality of the Australian lambs was behind New Zealand, he said, was the lack of crossbred ewes. This was, however, being rapidly overcome by the use of modern New Zealand type Romney Marsh sheep. An instance of the popularity of this breed is shown by the fact that in 1935 1?0 rams were sold, in lO.'ifi 250, and last year year well over 000. Previously the Australian buyers came to New Zealand, and their efforts wore directed to buying the cheapest sheep. This year, however, buyers have definitely decided to purchase the best possible quality. "We are looking forward to reciprocal business from New Zealand," said Mr. lilyth, "and to this end we have secured orders for well over 100 stud Dorset Horn sheep. This is the most popular down ram in South Australia, and the South Australian bred sheep is just as different from the New South Wales and Victorian sheen, as the old Kentish type of Romney Marsh is different from the New Zealand modern type Romney Marsh. Our South Australian type is particularly low set with excellent hams, good top line, and a good even fleeoo of dense wool, about 50's count, with quite a definite staple."