PROSPECTUS OF NELSON PINE FOREST, LTD.

NZ Truth, Issue 946, 12 January 1924, Page 13

PROSPECTUS OF NELSON PINE FOREST, LTD.

"Cambist," basing his experience upon afforestation m the Old Country, has long been of the opinion that the commercial cultivation of suitable trees is a highly profitable form of enterprise. But it takes at the other end of the world long stretches of fleeting time for the crop to be gathered. Out here there are certain trees which m favorable situations return marvellous results m the comparatively short space of time of twenty to thirty or even forty years., There are numerous cases of successful afforestation m this country and the outlook is favorable for many attempts to be made m that direction. Because of the slow movements towards the time of harvest gathering this particular indusi' try requires a special form of finance i at the beginning of any scheme set on j foot for the exploitation of the possibilities attaching to the industry. For that reason it is important that Investors should have the clearest information regarding any scheme which has to do with commercial tree planting. In the first place, cheap land on which the plantations are to be grown is an absolute necessity. The methods of management should be formulated m such a manner that- Investors are fully protected against all of the favorable as well as the possible unfavorable eventualities connected with this partioular class enterprise. The shareholders m any public oompany dealing m this great adventure should be considered more as ENDOWMENT BUYERS. rather than ordinary speculators or gamblers. This business, carried put as a trusteeship for those who Invest their moneys In it and conducted at the same time on the best commercial principles does certainly make a special appeal to small as well as large investors who desire either a lump sum or a high 1 return as the reward for a lengthy waiting for profits. Having said so much and apace being too limited for a fuller "prelude it is now time to casually- look over the present prospectus. The Nelson Pine Forest. Ltd. is issuing 3000 shares of £25 each which if full subscribed for will equip the company with v£ 75,000 of capital. The terfns for payment for the shares are reasonable and easy for those ,who cannot pay m a lump sum for their holdings. The material contracts made with th« vendors of. the properties to be taken over are not printed with the prospectus as "Cambist" maintains they should be, even- in face of longestabllahed custom to the contrary, followed by company promoters hero and m other parts of the Empire. So far as he can gather two lots of land, one for 2063 acres belonging to George Rutherford, and 1418 acres held by H. and h. Hunt, are under option to the promoters ot this company. The total prices' for the 8418 acres is £8702 10s. Then the option is to be passed over i to the promoters of the company, one of whom is the George Rutherford already mentioned and who is also one of the directors on the prospectus. Tho company will have to pay £12,570 to? these lands and by that simple process the vendors have a cleat 1 £ 3868 6f profit /awaiting them for their enovI rtous 1 trouble m getting the option put into legal form for sale. This ia

AN INTERESTING FBATURE3, for.in4hfi flrsl-place the cypat^s^fiSlOa per acre and after the yenaors hayo got their fine work into the business the lan^ becomes suddenly worth £3 12s 3d* per acre; Not knowing anything about these properties "Cambist'f ig not situated m, a manner to comment upon the sudden increment drawn attention to, nor- Is he greatly surprised that a profit of £1 2s 3d per acre has apparently been made so quickly. At any rate, it is the prospective company which will have to pay for the ."profit" if that be tho right term to apply to these transaotlono. This causes an overhead charge of £3868 which muet, at interest rates, total up to a considerable sum m the course of years taken m developing the forests. The vendors nre to take the job of piantlngr the propertlen within three years and of keeping the plantations m. order until five years have elapsed. JFor these services they are , to receive i : £ n per nci-e which will cost the company £38 381 if the whole of the land Is purchased. This appears to be a very profitable arrangement fpr the vendors no matter how looked at. Unfortunately, "Cambist" is unable to pro-

notmce upon the benefits that would accrue to the shareholders for he Is without anything more than the prospectus furnishes. Taking a kindly view of the matter he would like . to ask what ore the plans made for the future management of the company? Are the vendors expected to live for ever or is there • some company Forester to take their places at the end of five years? In a case of this kind the lack of information m these respects is lamentable. The only clearness about the business seems to be connected with the vendors and their obligations to say nothing of their profits. What "Cambist" would like to learn is, how are the shareholders to get on when the bill for £11 per acre is paid and the cost of the land is settled (£12.570)? The total is only £60,961 for the land and cultivation, but surely the matter doea not end there.