PUBLIC MEETING AT MOTU.

Gisborne Times, Volume X, Issue 1056, 25 November 1903, Page 3

PUBLIC MEETING AT MOTU.

ADDBESS ON THE PKOPOSED TIMBEB COMPANY. THIRTY THOUSAND ACRES OP MILLING TIMBEB. A COMPANY TO BE FORMED. (Special to Times.) Last Saturday evening Mr A. Hickford addressed a meeting of Motu settlers in Mr Hansen’s Hall in regard to his proposals to utilise the Motu forests. Mr Richardson was voted to the chair, and after briefly explaining the object of the meeting called upon Mr Hickford to address the gathering. In rising, Mr Hickford said he would like to have seen a larger attendance, although he was pleased with tho number presout, and it was not from the largest

gatherings that tho best results were always obtained. Those present would bo aware of tho importance and greatness of the Motu forests, but they would pardon him for making a brief reference to the same, There were, ho said, in Motu district alono no Ices an area of green timber available for milliag purposes than 30,000 acres. It is computed that the average superficial feet per acre throughout this largo area would be 12,000 ft to 15,000 ft, a total of about 400,000.000 ft. Then there was a largo area of dry timber and matui, besides large areas of green bush away from the valleys which must be taken into account. He estimated the whole area of available milling timber at between 800,000,000 and 1,000,000,000 superficial feet, aud that, at the present market price, would yield the handsome figuro of nearly £8,000,000. This, ho contended, was a source of great wealth, but as yet it was untouched, and because of the inaccessibility to such wealth it was fast being reduced to ashes. He scarcely need refer to the inaccessibility, from a milling standpoint, of Motu forests. Had such timber been near a market it would have been in use years ago, and without reasonable access Motu’s fine timber was utterly worthless, and hampering settlement. Ho found that to give access to this timber would mean a heavy expenditure of money—in fact, fully three times the cost of erecting the proposed mills. However, his proposals provided for giving good access.

I’HE COMPANY. It was proposed to form a limitod company for £BO,OOO capital. Thi* would mean 16,000 shares of £5 per share, payable as follows : —£l on application, £1 on allotment, and 10s per call at intervals of threo months. The capital would bo utilised as follows : —Constructing a light railway line from Te Karaka to Motu. £55,000; erecting Beven sawmills at a cost of £2150 per mill, or a total of £15,000. The remaining £IO,OOO would be used as a working fund after deducting the necessary expenses connected with the flotation of such a company. To give more fully the actual cost of forming the railway line ho quoted the following figures:—

Cost of sleepers, 32 miles ... 7.125 Fencing _ ••• Earthwork, sidings and cuttings 8,540 Earthwork, fillings ... ••• 8,000 Laying of rails and ballasting ... 12,000 Bridges and timber ... ••• 6,215 Two locomotive engines 4,000

These were approximate estimates only, but ho thought they would be found fairly accurate. Ho did not propose buying rolling stock for tho line, as such purchases would requiro a very large sum of money. He loin sure the Government would willingly supply trucks on hire. It would also be to their advantage to do so, owing to tho carriage of timber over the Gisborno section of railways. The line from To Karaka to Motu would have fairly heavy grades, but engines of 20 ton weight, with a hauling strength of 85 tons, would be placed on the line. These would have a speed of 12 to 15 miles per hour over an incline of one foot in 30, and capable of hauling twolve trucks of timber at one lime. It was proposed to carry passengers and ordinary traffic at Government rates, with the exception of sawn umber for any other mills than those of the Motu Timber Company.

I? would, he said, bo a’most u3clos3 to erect one or two sawmills iu such a huge forest. The prospectus, therefore, stipulated that seven up-to-date and largo mills should be erected in the Motu bush. Each mill would have a cutting capacity of 150,000 ft per day. malting a daily average of about 100,000 ft for 800 working days per year. Each mill would employ a complement of 23 men, at a daily cost of (including interest at 10 per cent) £25, whilo the sale of timber from such a mill would amount to upwards of £O7, or a not profit of £42 per day from each mill. In reality it would be possible, on the seven mills boing properly managed, to make the handsome yearly profit of from £82.000 to £IOO,OOO. It would thus bo seen tho profit of one year would be equal to the share capital of the company.

MARKETS FOR TIMBER. It had been stated that there might bo a difficulty in finding immediate markets for such a large output of timber, but ho assured the meeting that such would not be the case, as overy year was witnessing an increasing demand for timber, while the timber resources of the colony were most rapidly failing. Even in the great northern kauri bush the shortage of timber was being felt, and therefore the price had been raised. The same state of things prevailed in the Hawke’s Bay and Wellington provincial districts. In tho district surrounding Picton somo ago years no less a number than 34 sawmills had worked. This trade cut out of timber, with the exception of 10 mills, and the time was not far distant when the remaining mills would have no timber for uso. In referring to tbeso districts alone he felt convinced he had said sufficient to provo that tho price of timber would not decrease, nor the markets fail. They had in Gisborne a fairly good market for a quantity of first-class timber. This be proved by stating that Gisborne imported building timber (annually) worth about £65,000. Then Wellington was a good and fairly close market,’the Empire City having to import all its timber. There was no reason why Motu should not participate in taking part of her trade. He believed that Greymouth at present exported 1.C00,000 feet monthly, and supplied Wellington with a largo quantity of timber. Motu could land timber in Wellington at as cheap, if not a cheaper rate, than Greymouth. Then there was the Christehurch market for a certain class of timber, also tho Australian markets, and he believed a sound trade could bo opened up with South Africa for a particular class of timber. His proposals would include tho establishment of timber yards at Wellington and Christchurch. The carriage of timber by steamers or schooners to it 3 destination would bo a matter for furthor consideration, and ho had already proposals in hand to meet that case.

COST OF PRODUCTION AND CARRIAGE.

After careful consideration, he had found that the actual cost of milling timber, including royalty, would not bo moro than 2s 6d per 100 f t( while the carriago to Gisborne would not exceed 2s. Thus Motu timber.could bo landed in Gißborno at on actual cost of 4s 6d per 100 ft. A.bout 2s extra would carry the timber to Welling-, ton. Thus timbor that was now selling in Wellington at 18s 5d would yield a handsome prolit of 12s 6d per 100 ft, but in Gisborne tbe-profit would not bo so large. The actual cost of landing timbor in Christchinch would bo 8s (id, although at the present juncture, pendiifg further information to be recoived, ho was not prepared to say what, would be the exact profit.

HOW PROFITS ARE TO BE USED. It was not proposed to reduce the price of first-class timber, but to utilise the profits gained by sales s for tho benefit of the shareholders. He did not look upon the railway as a valuable asset, nor would he ask shareholders to do so. Tho only sound and reliable asset was the timber worth i£B,QOO,OOO. He therefore proposed to use tho profits from sale of timbor as follows : 10 per cent per annum on all fully paid-up shares 'or capital, 10 per cent per annum in liquidation of tho share capital. The remaining profits would bo distributed as bonusea among shareholders after writing off an annual depreciation in tho value of all machinery. In this way the business of the company would be conducted on a safe aud beueficial basis. TIMBER RIGHTS.

Having read a copy of the agreement in regard to timber rights, -find fully explaining each clause, Mr Hickford said that ho must secure these rights, and it was for the settlers to say whether they were prepared to sign such an agreement. If they said no, ho would not move another foot in the direction of milling the Motu forests. Already he had thousands of acres of bush promised, but he must have moro, and goneral support, and during tho next fortnight ho would call on every settler in the Motu district. Tho agreement stipulated that tho royalty to be paid for timber was a fair one at 9d per hundred superficial feet for kaihikatea, rimu, miro, kaiwaka, and mvarewa, while matai would bo paid for at tho rate of Is per hundred feet, and totara 2s. It was a short and simple agreement, and only binding for nine months provided no company was formed. He road an extract from bis brokers’ letter, which statod.it was absolutely necessary to obtain cutting rights. In conclusion, Mr Hickford stated that it was proposed to form or float this company outside of Poverty Bay, but tho investors of Povorty Bay would have a chance to obtain shares about January next from a well known Gisborne Company. A rumor had been circulated in Motu that he was connected with Mr Rees, of Gisborne, and had taken up tho “fag oods ” of that person’s proposals for the purpose of motuiing them,'and being well paid for such work. He wished, at this his first meeting, to flatly contradict such statements. Ho had had no communication with Mr Reos on this matter, although ho had been informed from Wellington as to that gentleman’s actions, nor was ho in any way connected with him.