THE KAURI KINGS,

Star (Christchurch), Issue 6293, 18 July 1888, Page 3

THE KAURI KINGS,

«• A GIGANTIC COMMERCIAL UNDERTAKING. [Pie Prksb Association.] [ AUCKLAND, Jnr.T 17. The SZar, referring to the new K&ur Timber Company, says:— The publicatioi in out columns to-day of tbe prospectms 6; the Kauri Timber Company, places th< ?? i 1 of complete parfciculan of this gigantic corporation, and aom* • concfaption may be formed of the niimbei 5 Bnd valne of the properties that have beer j. secured by the syndicate. Whatever m»j j be* the, after effect of tbe amalgamatiua oi > . so many sources of -wealth under one head j on the future prosperity of this Provincir.; y district and the Colony as a whole, w< , have no hesitation in expressing tht ; opdnion that the enterprise will prove b oTacn^7 profitable to the shareholders, r The immense saving in the cost ol | management alone, bringing about tht | extinction of so many small interests and t the substitution of one head with on« policy, should, even in times of depression enable the kauri timber industry to b« sept at a paying point. Another crrcuni' ■ stance that induces us to think favourablj . of the Company as a remunerative method ' of investment, is that the names of Mi I David Blair and Mr George Holdßhij appear on, the prospectus as Managing ' Directors^ To MB BLAIR belongs tfhe credit of having conceived the idea of bringing under one corporation th« great knuri properties in this district. It first oocurred to him sis years ago, but ' the tioje was not then ripe, as owing to ■ the general prosperity that existed in connecticra with the timber trade the sum that would have been required to secure the properties waß an insuperable barrier. He, however, quietly bided hia time, and has realised to the full the truth of the axiom that "Everything comes to him who waits." The prosperity of six years ago took: wings, and Auckland's extremity proved Mr Blair's opportunity. In November last -year Mr Blair conceived that the ; time had arrived for putting his plans into execution. He communicated with Mr Garlick, of the firm of Stewart and Garlick, brokers, with the view of acquiring the various properties, and during the next few months a good deal of progres3 was > made. MB HOIiDEHIP whose long and successful connection with the Auckland Timber Company rendered him an important factor in the matter, was away in England at the time, but on his return early this year he was communicated with by Mr Blairj and came to New Zealand armed with full power to negotiate for the purchase of the various properties. It is doubtful if -without Mr Holdship's assistance the concern could have been a genuine success* the prestige of his name alone being of incalculable value to the syndicate. Tie negotiations which Mr Holdship undertook were of the most delicate nature. He had to reconcile trade jealousies a?ad overcome legal and business difficulties which stood in the way of the transferor some of the most important of these properties; and it appeared more than once probable that the negotiations would have to be abandoned. With consummate skill and patience Mr Holdship persevered, and, in conjunction with Mr Blair, finally succeeded completely in settling the basis upon which the Company has been formed. The other Directors include some of the best men in Melbourne, and the Board will be thoroughly representative of the commercial, mercantile, and banking interests of Victoria. It i 8 probably the strongest directorate that has ever sat at the head of a business undertaking. Glancing at the prospectus we notice that THE PEOfERTIES secured represent 1,563,000,000 feet of kauri, worth, at the low valuation of one shilling per hundred feet, j#81,500. Twenty-eight sawmills in full working order, valued at .£400,000, arid stocks of timber worth J8217,000, the total value under these three heads being -81,398,500. These figures seem to be based on a very modest valuation, and take no account of the value of the 146,000 acres of freehold and 257,000 acres of leasehold land, the gum deposits, and other timber ; kahikatea, rimu and totara, which grow densely between the kauri clumps. Since the issue of the prospectus, 150,000,000 ft more timber, and 25 per cent more land have been secured, making the total kauri controlled by them 1,700,000,000 ft. This, speaking broadly, includes all the kauri in the Colony except some 300,000,000 ft on Government land. It is believed that the Company will be able to maintain the output at the present annual rate of 60,000,000 ft per annum, and that year by/ year^ as the appreciation and demand for kauri increases, a larger business may be expected. Recent opinions of experts, on kauri, place a higher estimate on the v«lue of the wood thau has before been ace orded to it. Mr Alison Smith, Loco/notive Superintendent on the Victorian Brxilways, while under examination before tb/e Forest Commission in April oi last year, said, in reply to a question: — "It is the most useful timber I haveco'me acrosa anywhere It is useful for housa-builduig, for shipl building, for rolling stock of e/very description, in fact, for every purpose you can put timber to. I do not know a more useful tree in the. world." In the repoit of experts, 'who experimented on the Colonial timbers sent Home to the Indian and Colonial Exhibition, the remark appears that kauri "is undoubtedly the best- of all soft woods." The promoters of the Company have reserved about 100,000 shares for New Zealand, though there appends to be little doubt but that the whole -tapital would, without difficulty, be subscribed in Australia, It is very desirable '/v public grounds, however, that there eihould be a fair representa- , tion of New Zealand capital m the venture, I and we therefore hope that the applica- ] tions for sharea on this side will at least ' equal the reservation ; while a guaranteed ! dividend at fihe rate of 10 per cent for i four years is »*n earnest of the confidence I of the promoters that the Company will be ' a huge financial success, and should prove < a strong inducement to Colonists to speculate.