THE KAURI TIMBER COMPANY.

Taranaki Herald, Volume XL, Issue 9252, 30 November 1891, Page 3

THE KAURI TIMBER COMPANY.

«—.« — . A PROTEST AGAINST THE LAND TAX. Tub annual report of the Kauri Timber Company (Limited), laid before the shareholders of tho company at the meeting held at Melbourne on November 20, is as follows : — The report states that tho result is not satisfactory, the lo s shown upon the account? for the year amounting to £10,895. Various reforms have been initiated with good effect, which are detailed at length. From time to time the Board have had under consideration the question of the re-construction of the company, and tho re-arrangenient of its capital. Should any proposal in this direction take definite shape during the ensuing year meetings of shareholders will be called to lay such proposals before them. The matter is merely mentioned now, so that should such a meeting be called shareholders will understand that such proposals are not the result of new developments, bnt in pursuance of a line of policy even now in contemplation. The directors cannot close their report without referring to the grossly unfair taxation which the New Zealand Government has imposed upon the company by recent legislation. The local directors did what they could to induce the Government to treat the company more fairly, but without avail. The company is probably the largest single employer (of labour in New Zealand — indeed almost tho whole of its expenditure is for wages and salaries. During the three years of the company's existence about £500,000 has been paid by it for wages in New Zealand, yet so beneficent an institution is singled out as a largo land owner to pay progressive land tax upon its forest, of which, from the magnitude of its operations, it is compelled to hold a large area in order to keep its mills supplied with logs. These forests are utterly useless to any human being until the land h_s been cleared, und it is well known that tho company is not only willing but eager to soli at a fair price, and on highly favourable terms, any land for which, when the timber is cleaved they have no further use, yet it is treated as an insinuation to be " burst up," presumably as a public danger Tho experience of this company will doubtless serve as a warning to all who may think of living by the investment of their capital in the resources of Now Zealand. A still more unjust imposition is that of a tax upon tho interest which the company had to pay for the £300,000 of debentures floated by the company in London. The estimate made by the Auckland office of the amount of the two taxes upon the company amounts to a very large sum annually, besides which a largo amount is paid for local taxea. The directors mean to press upon the uttontion of the Govornmont and Parliament of Now Zealand tho unfairness and impolicy of these exactions, and they hope that further and inoro accurate information will onablo tho Government to treat the company inoro fairly. The above imposts are special, and aro levied in addition to the income tax on profits, to which, of course, tho directors do not object, for the income cax has only to be paid when profits aro umi'c, whereas tho other taxes have to be paid oven whon the company h losing money.