became a strong competitive timber; pre-cutting and pre-fabricating and various forms of timber treatment became widespread. If real profits were to be made out of native timber, the emphasis had to be on all this processing rather than just logging and milling. To meet competition, the Puketapu Incorporation therefore had to invest much money in mill machinery and started two joinery factories, one at Taumarunui and one at Eltham, as well as a mill at Hawera. As a result of these developments, the incorporation did very profitable business. In the fifteen years up to 1960, a gross profit of £736,000 was made. This was a great achievement, especially if one compares it with the government estimate of 1945. Mr Pei Jones says that about 14 ½ million H.D. of other species were cut during this period, which at the government price would have brought £226,000. The difference represents £510,000 gross profits.

SELLOUT WAS PART OF LONG RANGE PLAN The unfortunate thing about businesses, even very successful ones, is this: as soon as they get one difficulty solved they run into several others. Towards 1960, Puketapu had two major worries: one was that the timber trade was getting tougher every year. To sell their produce in the future, they would need more and more expenditure: equipment for kiln-drying and dressing timber, and timber-yards in additional towns. Secondly, the easier and more accessible part of their bush was getting cut out so that roading for the logging trucks was becoming an increasingly expensive item. Rangi Ruahina is an invoice clerk at the incorporation head office. In fact, it looked as though it would need to invest a further £250,000 or more to keep going. At the same time Puketapu's timber resources were not unlimited—a further twelve years or so and the bush would be cut out. What would happen then to all the expensive assets? Their disposal value would be only small. The only way to get the money back would be for the incorporation to import timber or to mill pinus radiata—both very competitive fields where today only the very biggest enterprises can hope to succeed. The Incorporation therefore decided to try and get out while the going was good. The present-day leaders of Puketapu 3A Block are Hepi Te Heuheu, paramount chief of Ngati Tuwharetoa and chairman of the incorporation, Mr Paterika Hura, deputy chairman, and Mr Pei Te Hurinui Jones, managing secretary. With them on the committee of management are: W. R. Ngahana, H. H. Patena, R. Hemopo, M. Otene, P. Taite, K. P. Mariu, H. Mariu and J. A. Asher. Most of these men have wide experience in administrative and secretarial work, or have responsible posts in bush work or are experienced farmers. Their decision was to get out of sawmilling altogether and invest the incorporation's assets in farming instead. This idea was not new. It had always been the intention to farm the easier part of the block once the bush was cut out. Part of the incorporation's profits had therefore for some years been devoted to land development and of a total farmable area of 6000 acres, 1600 acres are now being run as a fully developed sheepfarm. Ultimately this area will be subdivided for unit farming. In 1960, the Incorporation began to seek a buyer for the remaining timber in the bush, as well as the sawmills and factories. Again, this was a tricky operation as the buyer would have to pay an enormous sum for all the incorporation's assets—very few firms had money enough to do it. For this reason no tenders were called but approaches were quietly made to large firms which might be interested. Finally, as is well-known, one of New Zealand's three giant timber enterprises, the Kauri Timber Company, made an acceptable offer.