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should be registered, and consequently I am unable to say what amount (if any) has been invested by the public by that means. All the share capital with which a private company is registered has to be subscribed for in the memorandum of association. Of the four private tobacco companies registered in Auckland the subscribed capitals total £26,700." It will be noted that the methods of finance adopted by afforestation and flax companies has been introduced into the promotion of tobacco-growing concerns. The Union Tobacco Co.. which is a private company with, a subscribed capital of £1,000, has issued a prospectus offering for public subscription 1,200 bonds in denominations of £30. Tobaccogrowers (N.Z.), Ltd. has a bond issue on the market of 3,000 bonds in denominations of £50. The Empire Tobacco Corporation, Ltd., has a bond issue of 90,000 bonds in denominations of £30. Tobacco-producers Trust, Ltd., which is a private company with a subscribed capital of £25,000, 24,995 of which were subscribed for in the memorandum of association by Brown Brothers, Ltd., of Auckland, has a bond issue of 4,000 in denominations of £30. As bond issues have not to be registered, it is not possible to state the number of bonds that have actually been sold. The companies concerned have been written to by the Committee, asking for the issues up to the 30th September, but to date these have not been supplied. On the 30th June last, according to a statement made before the Committee by C. M. H. Wills, solicitor, the position was :— , T c n Bond Capital. -N &iiH6 oi Oomp&ny. Tobacco-growers (N.Z.), Ltd. .. .. .. 23,900 Tobacco-producers Trust, Ltd. .. .. .. 2,880 Empire Tobacco Co., Ltd. .. . . .. .. 28,000 In a number of the prospectuses reference is made to the success of the growing operations in the Nelson Province, and much prominence is given to addresses delivered throughout the Auckland Province by the Government Tobacco Instructor, Mr. C. E. Lowe, as reported in the daily press. Especially to such statements as " The Nelson growers are receiving as much as £100 per acre from their labour." In one of the prospectuses there also appears a report by a Government official, dated the 13th August, 1928, which states, " In my opinion, this should prove in every way suitable for tobacco-culture." According to evidence tendered, the New Zealand Tobacco Co. had under cultivation last season approximately 195 acres, and cured 120,000 lb. weight of leaf : the Tobacco-growers (N.Z.), Ltd., planted approximately 100 acres, and have on hand 4 tons of leaf ; the Tauranga Tobacco and Citrus Co. planted 7J acres, and have on hand 6,000 lb. of leaf for market. The growing operations for this season are: New Zealand Tobacco Co., 300 acres; Tauranga Tobacco and Citrus Co., 20 acres ; Standard Tobacco Co., 50 acres. If the acreage held by the several companies were fully planted, there would be some 6,520 acres under cultivation in the Auckland District. Up till the present not one of the companies in this area has succeeded in finding a market for any of its leaf. Individual members of the Committee have visited the plantations of the New Zealand Tobacco Co. and were struck with the appointments erected by the company. Money has not been spared in providing up-to-date and modern batteries of flue-curing barns, bulking-down shed, &c, A modern hostelry has been erected for the staff of Maori girls. Members were impressed with the excellent way in which the staff is provided for. Reports have been obtained from the Native Affairs Committee and from the Labour Department supporting the view of Committee members in this matter. Note. —-Since the report was drafted information has been received from the following tobaccogrowing companies in respect to bond issues, and giving the total number of bonds sold, period ended 30th September, 1930 :— Number. Value. Tobacco-growers (N.Z.), Ltd. .. .. .. .. 608 30,400 Empire Tobacco Corporation, Ltd. .. .. .. 688 20,640 Tobacco-producers Trust, Ltd. .. .. .. .. 156 4,680 Operations op Department of Agriculture regarding Tobacco-growing. The Department of Agriculture became actively interested in tobacco-culture in May, 1926, when a meeting was held at Motueka, the outcome of which was the formation of a tobacco-growers' association. As a result of the formation of this body, the Government, in September, 1926, decided to offer a limited guarantee on tobacco produced for export. The conditions of the'guarantee were as follows :— Conditions of Government Guarantee in connection with the Export of Tobacco-leaf. 1. The guarantee shall be limited to tobacco-leaf approved for export by the Department of Agriculture, and coming within one or Other of,the. following classes:— (1) Selected kiln-dried leaf of the colours known to the trade as yellow or lemon ; and (2) Other selected leaf, kiln-dried or shed-dried, of any colour not, darker than that known to the trade as mahogany, . 2. The guarantee is offered in respect of tobacco-leaf grown in New Zealand and exported during 1927, 1928, and 1929, and will not be extended thereafter. The gross liability of the Government shall riot exceed £3,500-in. any One year.