"BOND" OFFER

NZ Truth, Issue 1043, 21 November 1925, Page 17

"BOND" OFFER

AND A GENUINE ONE Kaingaroa Plantations Is a No-Hutnbug Issue (By "Fiat Lux.") In th 6 matter of afforestation companies, the time come to sift the grain from the chaff, and the Government should help. >

Like the poor, afforestation propositions are always with us. Their promoters seek, by issue of shares or bonds, to part the public from its hard-earned cash, on the prospect of receiving- back" fifty-fold m the dim and distant future. Also, like the poor, forestry propositions vary muchly m attractiveness. Many are so much tissue and tinsel. Very, very few are sound financial propositions. This remark is made apart from all general considerations of the value of forestry as an investment. ' It is therefore mos.t refreshing 1 •to peruse the first bond issue prospectus of the Kaing-aroa Plantations, Ltd., the directors of which seem to have done everything humanly possible to safeguard the intei-ests of bondholders!

The company owns some 4000 acres of land situated 33 miles from Rotorua. "^ ."'■'.''... The suitability, of the land for afforestation purposes may be gauged from the fact that it is bounded on three sides by State Forest. . The company has divided its land into eight 500-acre blocks. When each block is planted with pinus insignus at the minimum rate of 680 trees to the acre, the company offers to the public one £25 bond for each planted acre. The planting of Block A of the company's land having been completed, 500 £25 bonds are now available to the public for subscription on very reasonable terms.