CLAIM AGAINST CROWN

Waikato Times, Volume 127, Issue 21216, 12 September 1940, Page 9

CLAIM AGAINST CROWN

LAND FOR FLAXGROWING FACTORY’S VICISSITUDES (By Telegraph.—Special to Times) PALMERSTON N., Wednesday When speaking as a witness at the Compensation Court, asked to decide what the Government will pay for 4565 acres of swamp land at Moutoa, near Foxton, Mr F. W. Vickerman, managing-director of New Zealand Woolpack and Textiles, Limited, said the Government was now the virtual owner of the factory at Foxton. It there were no woolpack industry there would be no necessity to rehabilitate flax growing, as the export market had vanished. The factory started operations in March, 1934, and at the end of 1935 it was £75,000 to the bad, a figure which included losses through various causes, among them writing off machinery not suitable. The following year the factory showed a small profit through a fortunate sale of waste. In the next year the factory showed a loss due to the collapse of the export market for fibre and partly to an increase in wages. Then the Government subsidy was withdrawn and the factory showed a loss of £4OOO. Moneys paid for patents never used were included in the losses. Mr Justice Smith commented on vegetation surveys that had been made of the area, stating that he had never seen such thoroughness before. They had been made to assist in the development of the estate by the Crown. So far the only valuer called has been Mr N. E. Gifford, of Feilding, who places the value of the property at £48,616, including the flax. The owner, Mr F. S. Easton, is claiming £119,754.