FOREST PRODUCTS

Manawatu Standard, Volume LVII, Issue 209, 4 August 1937, Page 4

FOREST PRODUCTS

POSITION DEFINED. SURVEY BY CHAIRMAN. REALISATION PROJECT. Th 6 first annual general meeting nf tlie New Zealand Forest Products Limited was held on Thursday, July 29, in the offices of the company. South British Insurance Building, Auckland. Mr David Henry, chairman of directors, presided, and there were present Sir Charles Marr and Mr H. Landon Smith (Sydney), Messrs C. M. Bowden and R. G. Buckleton (Wellington), Mr W. Eraser (Auckla.nd), directors, and a good attendance of shareholders.

In moving the adoption of the annual report and accounts, which have already been-published, the chairman referred to the desire of the company to enter into possession of the forests. This could only be done after it had been determined what compensation for maintaining the forests should bo paid to the company by New Zealand Perpetual Forests, Ltd., who had planted the forests and contracted to maintain them lor 20 yea.rs. Arbitration proceedings between the two companies for the settlement of that question were now being heard by the I3ondholders Incorporation Commission, and while the proceedings were both lengthy and involved very considerable progress in the presentation of evidence had been made, and it was expected that finality would be reached within a few months. The commission was also being asked to consider other points of difference related to the undertaking which existed between the two companies, and when an award Was finally given it was anticipated that all matters in dispute betweon them would be settled. The .matter being sub judice it was not proper to indicate any sum or give other details of the claims at present.

ENTIRELY SEPARATE ENTITY. Mr Henry made it clear that the company was an entirely separate entity from New Zealand Perpetual Forests, Ltd., the company which had sold the bonds and planted the forests. New Zealand Forest Products. Limited, on tli-e other hand, consisted solely of the people who ha.d bought bonds. It was formed a little over a year ago for the express purpose of combining the individual bondholders’ interests and, following this combination, make it easier to manufacture and market the products of the forests. Practically no progress could be made towards the realisation of the forests until the company got possession of the property, a.nd it could not take possession until it got a suitable amount of compensation from New Zealand Perpetual Forests. Ltd., for carrying on the balance of the contract entered into with the individual bondholders to maintain the property for a maximum period of 20 years.

After this explanation of the difference between the two companies, Mr Henry stressed that there should not be read into these remarks any degree of doubt or pessimism regarding the future, but it could .not be reasonably expected that the directors who .had only been in office a little over a year should be in a. position to forecast future results when they had not yet had sufficient opportunity to thoroughly investigate markets, etc., or to embark on any practical manufacturing programme.

Mr Henry explained also 1 tliat the bonds! were divided into 28 classes representing the various areas planted by New Zealand Perpetual Forests, Ltd. In due course it was Jioped to consoli-

date all of these into one class on a basis which would fairly protect the interests of each, particularly those who had subscribed for the earlier issue, of which the trees were much nearer maturity than later plantings. NO TRADING OPERATIONS. Dealing with the accounts, the chairman indicated that as the company had not carried on any trading operations during the year, the statement was merely one of cash outgoings from funds which had been advanced from the Australasian Forestry Bondholders Trust Company, Ltd. The statement included such non-rccurring items as the formation expenses, establishment ot share registers and cost of topographical survey and other items, which were in the nature of capital expenditure. Under the articles of association of the companv none of the directors retire until 1939, so that no election was necessary. The chairman referred to the death last month of one of the board, Mr R. D. Kennedy, of Brisbane, and a resolutihn of sympathy with his relatives was carried. The board recommended that no appointment in his stead Ire made at present. The chairman also intimated that pending the decision of the arbitrators. Mr Fraser, who is also a director of New Zealand Perpetual Forests. Ltd., had applied for and been granted leave of absence, without remuneration. The motion for the adoption of the report and accounts was seconded by Sir Charles Marr and was earned. Sir Charles Marr (Sydney) referred to the great interest in the project taken by bondholders in Australia, who comprise rather more than half of the total. He paid a tribute to the value of the forests, and indicated the magnitude of tlie work before the directors, in bringing the enterprise to a successful issue, and stated that he-was proud to be so closely associated with a work Of such great national importance. _ The retiring auditors. Messrs Morris, Duncan and Grilles and Mr H. M. Newton, were re-elected.