THE Manamatu Herald. FRIDAY, MAY 23, 1879. THE MANAWATU TIMBER TRADE.

Manawatu Herald, Volume I, Issue 76, 23 May 1879, Page 2

THE Manamatu Herald. FRIDAY, MAY 23, 1879. THE MANAWATU TIMBER TRADE.

it would be useless to attempt to disguise the fact that the timber trade of Manawatu is at present in a depressed and unsatisfactory condition. The reason is not far to seek, and upon further consideration, we are disposed to adhere to the view we expressed some weeks ago, viz., that the millowners, possessing a monopoly of the trade with Wanga* nui, and thus obtaining a constant market for their product, have pystematically increased their prices to such an extent, that their vaulting greed has, like ambition of a similar character, " o'erleaped itself," a<id they now find themselves face-to face with keen and successful competition. It is well known that some time ago the millowners of Manawatu entered into a compact with the timber merchants of Wanganui to supply the latter with timber at a certain price. The merchants were to take at a fixed price all the mills cut, and in return they received a monopoly of the trade, the millowners either refusing to sell to individuals outside the " ring, " or charging them exactly the price they would pay to the Wanganui merchant s. But after a time, the Wanganui men found that they could obtain the timber at a cheaper price from Pelorus Sound than from Manawatu. Moreover, they owned several vessels which were running to Kaipara Jbr the Kauri growing there, and which could be used profitably to transport timber from tho Sound. The usual result of such monopolies occurred. There was a burst-up, the compact was broken, and Wanganui is now supplied with timber, not from Manawatu, bnt from Pelorus Sound. A few days ago, some seven or eight schooners were lying in the Wanganui river, having arrived there from Waitapu and other parts of the Sound with cargoes of timber. The reason of this is soon told. The Sound mills place the timber in the vessels at 6s. per hundred feet ; the owner of the schooner, being him* self the timber merchant, allows 3s. freight, and having paid 4d. per hundred feet wharfage, is able to sell at a larger profit than if he obtained the material from Manawatu. Hence the falling off in the timber trade of this distriot. We reaffirm it is idle to deny th.s falling-off. We have it on the best authority that whilstfor months past "specials" have been constantly running from Turakina to Wanganui with loads of timber, the ordinary trains are now ■uffioient for the whole of the trade : —so great is the falling off. In fact, it could not be otherwise, for the simple reason that Wanganui has ever since the through line was com* pleted, taken nearly the whole of the timber cut in the Manawatu district ; and if that market is partially if not entirelyolosed toour product, there must be at least a temporary depression until we recover our lost ground, or open up a fresh market elsewhere. | It is to be regretted that the mill* owners of this distriot have, by their inordinate cupidity, brought upon themselves this state of affairs. like all men of business who in haste to get rich overshoot the mark, they have themselves to blame. We hear a great deal about the reimposition of the timber duty. The cry is raised, " 0 it is the fault of the duty being

released. Place on the 2s per him* dred once more, and *ye shall soon pros' per again." This cry is absurd and groundless. The only timber the duty can appreciably affect is the. white pine, the trade in which, in this district at any rate, is only in its iufancy. Does the timber duty being released enable the millowners of Pelorus Sound to supply in AVanganui a cheaper article than ftlanawtttu can produce ? It ha 3no effect upon the question, The fact ovidently is, either the men at Pelorus Sound are working at a loss, or those in Manawatu are making utterly disproportionate gains, and paying too large a price for labour. We cannot think the former, as no bo-ly of men would be so mad as to carry on such a suicidal system of business. . We are therefore compelled to adopt the latter view. In fact, we hear that the Manawatu millers are about to fight the Wanganui merchants on their own ground, by selling timber on the trucks in that town at 9s per hundred feet. If such is the case, it will afford a strong commentary upon the " compact" business. They also talk of starting an " association yard," the results of which would, we feel certain, be very unsatisfactory. The position indicates thut we are suffering from a scarcity of labour. The saw millers are compelled to pay too high for the work done in the bush and at the mills, and in addition to that they themselves expect profits larger than the trade in timber can possibly stand. These two features need modifying, —the cost of production must be lessened by the importation of more labour in'o the district,and the profits must be reduced. With such conditions, the timber trade of Manawatu ' needs to fear no check, whilst the increased quantity that would be disposed of at reduced rates,— both for home consumption and export, — would doubtless at the end of the year, bring the profits up to the same amount as under the high scale of prices. If the millowners of Mana* watu do not interpret the " signs of the times" aright, they will find themselves not only shut out of the white pine trade in the South by American lumber, but also deprived of markets nearer home by less avaricious competitors. The importance of this subject can be seen at a glance. The milWuers themselves appreciate it, and have held a meeting to " take counsel." But the timber trade indirectly aftects the whole district. Numbers of men have taken up sections oi land, and determined on settling in Manawatu, because the saw* mills would ail in the work of clearing, and because the royalty for the timber would assist their income until the land were ready for grass. If the timber trad 6 decays, this class of settlers will be seriously affected by the withdrawal of one of their chief supports, and the whole district will suffer more or less. Thus it will be seen that there are wheels within whee's, and that we are as a Couuty dependent to a considerable extent. upon the timber trade, which is unfortunately depressed temporarily. So vast are our resources, however, in this direccion, that we have no doubt after the present de* pression is over.the trad© will beoome more prosperous than il has hitherto been.