"FIAT LUX" REPLIES TO CORRESPONDENTS

NZ Truth, Issue 1212, 21 February 1929, Page 9

"FIAT LUX" REPLIES TO CORRESPONDENTS

"LUNA PARK" (Dunedin):— The accounts you refer to were reviewed 'in. these columns on September 1$ last when the shares were quoted at about 4/-. Even at this price, it was pointed out, they had only a speculative interest and could not by any stretch of imagination be classed as an investment. The only reason the shares are practically valueless to-day is because the concern, has lost its attractiveness and hence its earning 1 power has gone. The story you tell is quite unlikely to have any foundation m fact. It savors more of the usual "bunk" disseminated by interested persons who are anxious to quit their shares m a losing concern. v Your friend should hold these shares until the current year's accounts are issued m August when it is possible the position may show improvement. In any case at present the shares are practically valueless, so why not wait for a possible turn of the tide? "OPUNAKE." — Kaiangaroa Plantations Limited's Bond Issues were reviewed favorably m these columns m November 1925. Putting money into any forestry concern is, however, as was set out m the article above referred to, purely a' speculation m this writer's opinion. It is reasonably certain that the lnnd used, the class of tree planted and the salubrious climate of the North will combine to produce a very fine tree m 30 years or so, but it seems to the writer that it is purely a case of the wish fathering the thought when the public is told that an acre of timber 30 years hence will be worth lumpteem hundred pounds sterling.

Present-day factors alone can be used m making such a calculation, and it is indeed a bold advocate who will express a definite opinion as to the marketable value of timber 30 years hence. One might with equal boldness assert that m 1959 boots will cost £5 per pair or that gravitation will be harnessed to produce light, power and heat, find that coal and oil will then be has-beens. The writer believes the Kaiangaroa Bonds to be as clean and good an issue as has ever been placed upon the market, but this does not remove them from the highly speculative class, consequently they are considered quite unsuitable for you to put all your savings into. Why not play safe by putting a portion of your savings only, into these Bonds and taking, say, £150 worth of John Fuller & Sons, Ltd., 6^ per cent. Trust Mortgage Debentures, which are giltedged?