"BONDS" OF MANY SORTS AND SIZES

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

"BONDS" OF MANY SORTS AND SIZES

As "Forestry Bonds" have become a generic term for any paper writing connected with forestry for which the public have exchanged their good cash, and as there are more varieties of such bonds than there are of dogs (and the good ones take more picking), it seems desirable to this scribe that sonio detail of this company's bonds .should be given for the information of intending investors. In the case of investors m other companies, the information given will

perhaps be of value for comparative purposes. First and foremost, these bonds are not securities m the same sense as a mortgage. Rather they are contracts of . service to create and market a product for the owner of the bond. In this instance, m exchange for £25 paid within six

months of application the company undertakes: (1) To provide one acre of land. (2) To plant the said land with 680 trees. (3) To supervise and maintain such plantation m accordance . with State Forest service requirements for a period up to 30 years. (4) To replace all losses (fire or otherwise). (5) To thin the plantation according to State Forest practice. (6) To market

the ultimate product, under direction of bondholders. (7) To cull meetings of bondholders. (S) To call meetings ,of holders for all proceeds of timber sales, less 5 per cent, administration charge. (9) Not to encumber or mortgage the hind • planted. (10) To deposit £,10 of each bond with the N.Z. Insurance Co., Ltd., on definite trust terms. I It's a clean, straight run for your 'money. . '

You pay your £25, and m 25 or 30 years' time you receive one fivehundredth share of the marketing of 500 acres of piqus insignus. ■Your share m this marketing, at a very modest estimate based upon present indications, should be worth from' „£3OO to £500. ' ■ f But the risk of what it will

realise is entirely yours and yours only. You cannot go into ventures which promise big retm-ns without taking some risk. In this case you have the growing risk and the marketing risk to. face. "Fiat Lux,"' in the course of. holding down the job oC financial contributor to "Truth," has' come across some very doubtful forestry propositions.