THE Manawatu Herald. TUESDAY, APRIL 1, 1879. THE TIMBER TRADE.

Manawatu Herald, Volume I, Issue 62, 1 April 1879, Page 2

THE Manawatu Herald. TUESDAY, APRIL 1, 1879. THE TIMBER TRADE.

In a recent issue, we mentioned that the abrogation of the duty of 2s per hundred feet on timber, had raised up a dangerous rival to our own colonial timber industry, and that as the result of competition from America, Messrs Gu'hrie and Lar nach, of Dunedin,had countermanded large orders for white pine previously given to saw.millers in Manawatu. This news is of sufficient importance to demand thoughtful consideration, and a few figures will doubtless assist our readers to form a clear conception of the present position and prospects of the white pine timber trade. Until the duty was taken off timber last session at the instigation of the Hon. the Colonial Treasurer, the saw-millers of New Zealand were, "protected" from foreign competition, and large profits were made. Tn the Manawatu District, finding they had a monopoly of the trade, the price has been steadily increased, until now the price for heart of totara timber is 16s per hundred feet — a price acknowledged to be far beyond a fair percentage upon their outlay. Having banded themselves together in the form of an association, they have dictated prices to consumers, and charged so heavily that in Wanganui, where for a time they carried the trade before them, the timber merchants were compelled to import again from Felorous Sound. We put the matter to the millers in this light, aud would suggest to them the desirability of moderating their charges, not only in self-interest, to prevent competi tion becoming stronger, but also in the interest of the district. Tas* manian millers, knowing the large prices their fellowtradesmen were obtaining in New Zealand, have been pouring into this colony since the duty was removed, large cargoes of the excellent timber grown in that island, — and which for shingles, palings, posts, &c., is equal if not superior to any we possess. On the other hand, from Vancouver's Island several large shipments of American lumber (which is superior to our New Zealand white pine), have been landed here at 9s per hundred feet. We believe these are but trial ahipi merits, the vessels coming to the oolony freighted with timber, and going, away from Lytielton laden withgrain, or some other New Zealand produce. But the fact tffat the experiment has answered so well that Messrs. Guthrie and Larnach (who use more timber than any other firm in the Colony),

intend to draw their supplies thence, «ht)w& that there is every prospect of a legular trade springing up, which may strike a serious blow at the ooloi nial industry. The first impulse is, to return to the duty, and once more charge 2s upon ©Very hundred feet imported ihto the Colony. Such a course Would doubtless achieve the cud desired by the millers, but we doubt whether it would be a permanent good to the colony. Considering the vast forests at our doors, the easy carnage per railway to the district porto, there must be something wrong when the local timber trade needs to be protected against competitors who send their* timber per water mariy thousand of milos. Either the expenses in' preparation for the consumer, or in carriage to him, are too great, or else the millers demand far too large a profit. We have before us the list of prices charged by the Manawatu millers " for sawn timber delivered into trucks on the Uailway Line." The following are the prices : — Per 100 ft. Totara (special orders), all heart 16s. „ (ordinary building orders) 13b. Matai (special orders), all heart 13s, „ (ordinary building orders) 11s. Rimu or red pine „ .. 10s. White pine (special orders) .. 11s. t, (ordinary) .. .. Bs. Lengths over 20 feet aie charged Is extra {>er 100 feet for every additional foot in eneth ; also, Is extra per 100 feet frr every inch over 12 inches in breadth. Referring more particularly to the white pine trade, we may furnish a few particulars as to the cost of pre paration, &c. We believe the cost of cutting at the mills is 4s to 4s 6d. For this price men will contract to go into the bush, fell the timber, get it to the mill, cut it into the usual lengths and stack it in the trucks. The aver age cost for carriage to Foxton per railway is Is 4d per 100 feet, and tho wharf dues amount to another 3d. Thus the actual cost on board the steamer, leaving out altogether the wear and tear of machinery, and miller's profit, is about 6s per hundred feet. The machinery required for a sawmill is enpensive, and the cost of keeping it in working order is con* siderablc. We may therefore fairly estimate the share of the miller at 2s per hundred feet. This will make the cost of the timber on board about Bs. Some timber has been put on board at Foxton, we understand, 3d less than that sum, but for our present purpose we may say that for export the limber is worth 8s per hundred free on board. Then comes the ques« tion of freight. Here we Gnd that which takes away the profit ot the timber trade, and unless freights are reduced, we shall have a long fight to wage with foreign timber producers. It will hardly be credited that the freight ou timber from Vancouver's Island to Lyttolton, is just the same as from Foxton to Ly ttelton or Timaru, viz., from 3s to 3s 6d per ton. Yet such is the fact ; and we have no hesitation in saying it is a price, considering the entire absence of danger or risk, and the shortness of the passage, utterly beyond what is reasonable. In fact, remembering the freight charges are over 40 per cent oi the value ot the material itself, it neuds no long argument to show how exorbitant the charge mentioned is. A few days ago the Goahead left the port of Foxton with about 40,000 feet of timber for Timaru, which at 3s 6d per hundred, will represent the very bulky amount of £70 for a small steamer for a 30 hours' passage. Supposing the trade were large, and she made one trip a week, the annual receipts would be £3,640. If the present competition between ;,^§nencan and Tasmaniau timber against New Zealand has the effect of lowering the freights a great good will b^e. achieved. The millers must VfiUFake to their own interests, and have boats of large carrying capacity #nd light draught constructed, specially adapted for taking large cargoes ; by which means freights would be largely reduced. It may be desirable, in the interests of the timber trade, to place a small duty on imported timber, to balance the value of it as against that produced in Now Zealand. At the same time, we think protection is in many cases made a crutch, wheroas competition induces a healthy activity, and frequently results in the productton of a cheaper article. With the large timber resources New Zealand possesses, she should have no fear that a foreign country can supply that article at a cheaper price than her own stalwurt sons.