AFFORESTATION COMPANIES.

Otago Daily Times, Issue 20287, 21 December 1927, Page 4

AFFORESTATION COMPANIES.

OPERATIONS CRITICISED,

DISCUSSION AT STOCK EXCHANGE

That an investigation into the operations of the afforestation companies in New Zealand is necessary was an opinion expressed at the annual meeting of the Dunedin Stock Exchange yesterday. Mr E. R. Smith stated that a word of warning should go out*, to the public regarding the operations of afforestation companies, over which the Government was exercising no control. The companies had received over £2,000,000 from investors, but bondholders were not supplied with information as to how the money was being spent. As a matter of fact, the bulk of the money was going into expenses. Large sums were being spent on roadmaking and bridgebuilding, and a perfect army of people was on the companies’ pay rolls. He honestly believed that not one-third of the money subscribed was going into afforestation. Everybody saw the need of afforestation, and as New Zea. land people were patriotic, the companies were working on that sentiment. He thought that the Exchange should write to the Minister of Agriculture, asking that the affairs of the companies be investigated. The Chairman (Mr Harman Reeves) said that the Exchange had already made a request on those lines to the Minister, but the reply received had been anything but satisfactory, and there the matter had been allowed to rest.

“ I do not think that wo can do anything,” said Mr W. F. Sligo. “ The Government must know that something in the nature of a swindle is being worked, but neither it nor the papers will assist us.”

The discussion was then allowed to drop.