PERPETUAL FORESTS

Dominion, Volume 32, Issue 153, 24 March 1939, Page 12

PERPETUAL FORESTS

Liquidation Agreed To SATISFACTORY FINANCES Dominion Special Service. AUCKLAND, March 22. V special resolution that New Zealaud Perpetual Forests, Limited, should be wound up voluntarily was passed at an extraordinary general meeting of shareholders in Auckland todajb ’The company has completed over .15 years' work in commercial afforestation, and the maintenance and realization of the forests will now be taken over by the bondholders’ company, New Zealand Forest Products, Limited. Messrs. A. 11. Gyllies, public accountant. and W. Fraser, company director, both of Auckland, were appointed liquidators.

Addressing the meeting the chairman of directors, Mr. W. Eraser, said that the statement of accounts as at January 31 would be considered highly satisfactory to all shareholders. A statement of accounts up to the date of liquidation would be prepared and issued to shareholders- as soon as possible. Overseas Capital of £3,000,000. Reviewing the company’s activities over the past 15 or 16 years, the chairman stated that'it had been instrumental in bringing about £3,000,000 to New Zealand. This money came into the country without commitment in ,the way of interest and, with the money subscribed within New Zealand, had made a veryvaluable contribution to the development of the country's natural resources’. About £2,000,000 had been paid in salaries), wages and commissions, in addition to contributions to other services and industries. A large proportion of wages was' paid for seasonal work done in winter. During the depression years, 1930 to 1934, many men who would otherwise have had to rely on the Stale for sustenance or relief work were provided with constructive and useful employment of primary importance in any country. During the peak period of the company s history winter work was found for as many as 1100 men. Taxation and Dividends.

The company bad paid about £186,000 in direct taxation and had distributed £185,000 to shareholders in cash dividends, contended the chairman. In 1932 the company also distributed 14,107 planted acres. Cost of management, including directors’ fees, averaged slightly under £401)0 a year. A total of 173.478 acres of forest had been created. For the liquidation of its establishment and maintenance contracts, the company paid about £1.300,000 to New Zealand Forest Products, Limited,

“■We have laid the foundations for a number of great enterprises, the variety and extent of which can be measured only by the enterprise and initiative displayed by the directors and management of New Zealand Forest Products, - Limited,’’ said the chairman. “If properly directed it will bring credit and profit to New Zealand, and should provide a ready source of supply of a needed raw material to our kinsmen overseas, particularly in Australia, where so many of the shareholders are domiciled.” “Futility of Royal Commission.” Speaking in support of the motion, Mr. 11. Landon .Smith, co-director, representing Australian shareholders, stated that the financial results of the completed operations showed a very satisfactory surplus. It could not be said that shareholders in the company had profited at the expense of its bondholders. “With great respect to the commissioners appointed to administer the Act, little, if any, tangible ’result can be expected from that legislation,” added Mr. Smith. “It is merely another example of the futility which commonly results from the process of Royal Commissions. The results cannot be materially different from what they would have 'been hud the company carried on its maintenance, completion of contracts, and realization. We had no alternative to the compounding of our contracts, and as this spent the company’s objects, the logical and proper step was liquidation.”