TIMBER TRADE

Hokitika Guardian, 30 October 1930, Page 2

TIMBER TRADE

MARKET REPORTS. (From Millers’ Federation Notes). AUSTRALIAN A LARK FT. Writing to one of our members in July last, Messrs H. Beakley and Co., of Sydney, reported timber trade conditions in that market as follows: “In regard to your enquiry as to trade position ruling at present, we would say there is no change for the better. Possibly you are. aware of the facit that Australia, cannot borrow money in London or New York and the Government is raising a further ten million sterling locally. This on top of a matter of about fifty million for a loan falling due next December. The rate paid is 6 per cent., which speaks for itself. You may have seen cabled reports of our latest tariff, the third schedule to come out since last November. Timber duties have been greatly increased with the object of helping the local lia.rdiW'W'd sawmillers, hut it will make practically no difference to them, as the imported timber must still continue to come forward ollce the market is open again. Meantime there is sufficient dressed Baltic timber held here to cover Australian requirements for ft further twelve months. The new duty to apply to Baltic from January next is 24s per 160 feet super, actual inleasureriuerit. This will help New Zealand Rimu, duty free, once trade rights itself again, also White Pine. The firm that did the largest importing of foreign timber into N.S.W. last year is in the hands of the Receiver, i.e., Messrs Jas. Crockett and Co. Ltd. Their losses will lie considerable, and some of their clients have already bad meetings of creditors, and one firm owing them over £11,609 will pay nothing in the £, or .practically nothing. Any timber sold in Sydney to-day, and at present only from 25 per cent, to 30 per cent, of normal trade is being done, is sold at a loss’, so firms in difficulties cannot improve their position. Under circumstances ruling we think it will be some months at least before there can be any demand.for timber or any othor line.”

This was indeed a gloomy picture, and unfortunately we have not had much in the nature of more re-assur-ing news since that date. A very recent note from . Mr D. F. Stewart,* of Sydney, stated that timber was still “in the Doldrums,” but he certainly sounded a more hopeful note by saying that he considered matte A would he much improved by the end of this year, Even with this very depressed state of trade in Australia, the New Zealand Trade and Tourist Comhlbsioner to the Commonwealth, Mi’ L. J. Schmitt, is pushing the interests of New Zealand very energetically, and is paying considerable attention to timber. In recent weeks we have received through him a number of enamries for supplies or quotations, in "White Pine, Rimu, and Beech, from quite new sources as widely separated a® Freemantle and Brisbane. This, at any rate, seems to indicate that there is slightly better enquiry for New Zealand timbers in the Commonwealth. PREFERENCE TO' IMPORTED TIMBERS. Not long ago a fairly prominent hardware firm, with branches in various parts of the Dominion, had the misfortune to have its "Wellington warehouse burnt out, and had to face re-erection of the building. The firm ! in question has in the past done quite an appreciable trade .with the' sawmillers in sawmill supplies and other items requisite in the timber industry; but when re-erecting its building it evidently overlooked this fact. We are informed that practically all the timber used in the re-ereetion of the premises was imported timber, soout of curiosity—we made an inspection and found the information was qui/te (.correct. The building is a concrete one, so there was not much timber in evidence, but the whole of the roof timbers were so-called “Oregon”—and even the shelves, and bins, atad counters, etc., in the warehouse were of the same material. The only New Zealand timber observed was in one or two Rimu doors in the partitions. The occurrence was probably not a result of deliberate intent, but it is hardly the right kind of encouragement to the Sawmillers to continue their patronage with a firm that has so little though for other New Zealand industries than its own. SAWMILLER S’ FEDER A TION NOTES. RUSSIAN TIMBER. Mr Joe Butler, Managing Director of the Kauri Timber Coy., Melbourne, is still “on tour” in England, and keep our President well posted in his doings, and of current events in the Old Land Writing on Btli August last, lie said he had covered about 8000 miles in his Armstrong-Siddelev in England and Scotland. With regard to the timber trade in London, Mr Butler stated: “The Russians are pouring timber into England. I was told (by an agent) today that they could put joinery timber into New Zealand, excluding duty, at 10s per 100 super, feet, and that although they (the Russians) cotthj get

2s per 160 more for if in this market they will not take.it because they want to keep Finland out of the English market.”

bearing upon what Mr Buller lias to •say regarding the Russians “pouring timber into Britain,” it is as well to bear in mind that Russia lias enormous forest resources which are now being developed by forced labour and prison labour. The British Minister of Trade recently stated in the House of Commons that “documents submitted to him lent support to the allegations wliicn bad been made in lie House that “some forced labour, including that of prisoners, was employed in tire tiniter ndustry of Russia. Incidentally, we are informed, Russian plywood, the product of this labour, is already being marketed in New Zealand. TIMBER TRADE SICK. Air Geo. Trippner, of Messrs Butler Bros. Ltd., lluatapu, is also on a trip to England, after many years of solid work at Ruatapu, and lie lias made reference to timber matters in recent letters. Writing from London on 29th July, lie stated: “Timber seems to be sick the wide world over. There is such a. wide range of timbers used here Cor interior fittings that one is quite at sea, but Baltic is still the building timber. The Baltic importing trade is still at sixes and sevens, and there 'does not appear to bd any sign of stabilising prices so far.” LONDON MARKET. Writing earlier—on 22ml June last, also from (London —Mr Trippner said that he kept a look-out for any news that miglxt be of interest for this section of the “N.Z. National Review,” and some information respecting the Baltic supplies on the Australian market. He sn jd :—“We (Messrs J. Butler and Tripnuer) called oh some ctf the London timber agents who sell Baltic and tried to get the Jiang of the prices from them but found prices were anyhow. Tbit ■date of affairs is caused by the Russians who are out to sell regardless of prices—and it looks as though Baltic prices will recede quite low enough to alarm us in New Zealand.

“Already prices are lower than they have been since the Avar, and the merchants in Thrfain are not buyitag',. 1 . . . . because it 1 ik a well-known -“fact that the Rus'sianS 'Are out to sell regardless of costs or : prices—and SAvecVen and Finland must follow snit. “When I “say ‘Russians,’ 1 it'dobs not mean that they are offering the rougher qualities'of timber as shipped from Libau and Riga’;’but ‘Petersburg’! a'S well, and ‘Retefbsiirg’ is’ Ane cf the best qualities which’ is used for flooriffgs and linings. •' • ' “When the great upheaval-took! place in Russia, the Soviet Government took over these huge forests, Avhich Avere known as the “Appanage” of the Royal Family, and, of course, they do not set the same value on theta as any industrial concent AA’ould that had to buy them. “Evoryvffiure lie re nothing but .Baltic is to be seen,..and many buildings in the suburbs are going up—especially dAvellings which appear to he in constant demand. •.... “Rents are. awfully high, and, as result Of careful . enquiries,. I find that a man of the.juicldle class expands on the aA’erage 27 .per cent, of Ills, salary on rent. Rates,,of course, vary in different districts, but the average of three district in Surrey works out. at a further 6 per cent.; or, in these three districts, a total,of 33 per cent, of his salary goes in rent and rates. It is high!”