THE TIMBER INDUSTRY.

Dominion, Volume 2, Issue 461, 20 March 1909, Page 7

THE TIMBER INDUSTRY.

REMARKS BY HON. J. A. MILLAR. PROSPECTS OF A REVIVAL. Speaking to a Mnnawatu deputation yesterday, the Minister for Railways (Hon. J. A., Millar) made an interesting reference to tho timber The question of rail- : way freight rates was.under notice, and the Minister remarked that, there were differential rates for: timber in some localities. He was trying to have these concessions stopped, because he was not going to run tho rail-, ways at a loss. If tho rates wcro reduced tho public would not get tho benefit. That would go to tho saivmiilers, and the Railway Department would lose. Tho cause of tho slump in timber was the. tightness of money. .Mr. J. R. Stansell (Shannon): "Oregon pino brought in by subsidised steamers." The Minister said that it was only in certain lines that Oregon timber, competed seriously with the New Zealand product, namely, in special long lengths. Something might be dono in regard to the size of imported logs, but a Royal Commission had been set up, and ho conld not say what they might or (night not do. He noticed that'cloven new sawmills' had been started during the last six weeks, and woro sending out timber as fast as they-" could. • Another firm at Greymouth, after investigating the industry, in America; : was jiutting 'in a new mill to "compote with Oregon timber. Five or six now mills were being started on the Main Trunk line. He was in hopes that tho prospects of tlio industry, though not too bright at present, would slowly improve. LAn easier financial market and a fall in tho excessive land values would lead to a resuscitation of the building trade, and a greater demand for timber. Houses would then bo obtainable at a reasonable price for thoso who desired to have them. ;

A FALL IN PRICES. WHY RENTS' ARE DECREASING. Evidonce was-.given by Mr.- W, I l '. Eggers in tho Arbitration Court on Thursday with regard! to rents in Wellington, 'which, he stated, ■ had . receded . considerably' of late. H6 stated that had gono down in Newtowni from-;,-10 cent.,-/and i 'at Island Bay,. Miramar, and Jlaranui, from 30 to 40.-per cent.- .In■support of this, Mr. Eggers produced a comparative tablo shoeing, the-crents paid oiUccrtain- specified.,pro-, porties twclvei'.months; ago,: audi what the rents werp: at-present.-., The question of • rent-- touches the general public so closely- that inquiries were made yesterday. as to how this marked drop had been brought about. Oiir representative had not proceeded veryi far iu his investigations when lie discovered that what must surely bo tho bed-rock cause of tho drop is tho lessoned cost' of building taken in conjunction With tho lessened demand for houses of all kinds. Tho lessened cost' of building has been brought about by a very •substantial drop ill tho prico of timber— a drop which; according to some people, indicates, that tho alleged timber ring, that was rooro or.yless vohemontly blamed for keeping up thp-.iprice of.-timber, has struck 'its colours. h^.s"been denied tliat there is, oreverhas been,- a'timber ring, but what is . quito ' beyond all doubt'is'that tho price of New Zealand building timber ■ has declined seriously: •. In' proof- of this we quote the .price. of certain' -'kinds , "of timber ; iu April, last- year;- and wlisrt. the same: timber' can be purchased. for l! ;iu i "Welliiigtbii'' to-day. April,'l9oS. To-day.' ... Per 100 ft. Per 100 ft. |- 1 . s. d. s. /d. Heart matai, 6in. or Sin. rusticating „• ... i ... .25 6 19 6 Heart 'matai, 9in. tol2in. 2G 0 20 1 0 Matai wrought sills ;'...' 31 0 ; 19 0 Matai fencing,' 1 in. ... 13 6 7' 6 Matai 0.8., dressed , ... 20 0 '13-6, Rimii, - 12iii. . ..#.,48, .ft-.-.!,, RimU) O.B.", Bin. x- 10 0 7 6 llimu, 0.8., 4in. x Jin....:, 18 0 12 6 Rimu, rusticating, . 10in.... 18 .0 '\v 13 0 Rimu, : rusticating, 7in.... 33 0 17' 6 Itiniu, rusticating,*"sin.' 20 "0 15 0 Rimu architraves (all ' heart), sin. - ' 1 .'..17 6 ll' 6 Totara, O.D. t 29. 0 '13 6 Totara split piles,' 2ft. to 3ft., each 6 4 Totara split' pil'es, 4ft. to' , ' ■*> 6ft., cach 7] -5 Rimu, studs, 4in. x 2in. 14 0 11 G Rimu, studs,. 6in. x 2ih. 14 0 11 6 These figures' are all sufficient as a guide to tho fall, that has taken place, and as to-day's' prices were gathered, from. a recent' account rendered/'they indisputable; It should be -stated; that"tho; prices are. subject to. a discount': of : froJ? 2jr;Htp'.'S per'cent.. A timber' morchaiit' WlibV.waa seen' in regard to the drop, stated thit thero certainly 'had been a fall. : So serious was this fall, he stated, that' the' millers selling, at the new and .lower 'rates must bo losing money.' 'They ; could, not' possibly pay from 2s. 6t1. ; to' us. ;per. 100 ft., ljaulage, the ..wages that v/ero being deman'dfcd,' and royalty, without making a loss'. "I attribute tho main ca'uso of tho bad stato of the, timber' trade to the high price of labour. In the old days, 20 years ago, when tho men earned Gs. 6;1. and 7s. a day (and timber was quite reasonable in price) they were far happier atid better off than they are to-day, but they won't see it. They aro'truckling to the Government, and the Government , panders to them; wages go up in a declining industry—mnd then comes the smash." '.

Our informant said it was imperative for the,millers cutting on royalty to go on, as tliey had to 'pay whether thoy cut or not-, and they preferred, making a small in preference to a'big'loss—but it was loss rifc the present time new that prices Jiad. receded. ■