NZ. FORESTS.

Hokitika Guardian, 17 November 1925, Page 3

NZ. FORESTS.

WARNING TO BRITISH INVESTORS

LONDON. September 22

A mysterious reversal of New Zealand Government opinion is suggested by thlg following cablegram received from a Christchurch, N.Z.. correspondent with regard to certain afforestation companies that have been appealing to British investors: — “ Christchurch. N.Z.. Wednesday.

“The publication in England of the prospectus of certain New Zealand afforestation companies was discussed in the Legislative Council.

“A serious note ol warning uas sounded to British investois. Sii Francis Bell, the Attorney-General, said these afforestation companies had no concessions from the Government, and he 'likened investing money in afforestation schemes to taking tickets in ‘ sweeps.' He denied that the High Commissioner in London had given his blessing to afforestation companies.” In July bonds of the New Zealand Perpetual Forests Ltd., a New Zealand company were being offered to the public through Smith. Wylie and Co. (England), Lt.d This offer was criticised by the City Editor in the “Daily Mail” of July 21 and 22, who suggested that it would he time enough to put the bonds before the public here when the prospectus contained the names of people of recognised standing in England who would he responsible lor safeguarding the bondholders’ interests.

On July 21 Messrs Smith, Wylie and Co (England). Ltd., who were offering the bonds, wrote to the • Daily Mail ” enclosing the following document: —

DOMINION OF NEW ZEALAND. New Zealand Government Offices, 415, Strand, London, W.C.. 2, July 6, 1925. To AVlioin it May Concern, The High Commissioner for New Zealand has been shown by Mr William Fraser. Robert B. Caws, and Mr D. S. Wylie, directors of the New Zealand Perpetual Forests, Ltd., an advertisement which they wish to insert in certain British papers, and has been asked by them to vouch for their bona fides and that of the company of which thev are directors.

Sir James Allen has pleasure in stating that he has received a communication from the acting Prime Minister of New Zealand to the effect-

that the plan of this company was a very fine one, and that the New Zealand Forestry Department are of the opinion that the operations in planting and care of the plantations have been very efficient, and further that, given sufficient security for continued care by the company, they should Ik- an advantage both to New Zealand and to investors.

(Sgd) ALEXANDER CRABIt, Secretary to the Department. In an answer to an inquiry last night Mr Alexander Crabb said that this document, as it showed, was based entirely on a communication from “then then acting Prime Minister” of New Zealand, who, he added, was Sir Francis Bell, now Attorney-Gen-eral. who as our Christchurch correspondent shows, is now warning British investors against certain New Zealand afforestation companies.