THE TIMBER SYNDICATE. A GIGANTIC COMMERCIAL CONCERN. A COMPANY WITH ONE MILLION CAPITAL TO BE FORMED. THE PROPOSALS OF THE KAURI KINGS.

Te Aroha News, Volume VI, Issue 271, 9 June 1888, Page 6

THE TIMBER SYNDICATE. A GIGANTIC COMMERCIAL CONCERN. A COMPANY WITH ONE MILLION CAPITAL TO BE FORMED. THE PROPOSALS OF THE KAURI KINGS.

ArcicL\ND, June 6. This is the age of syndicates— a period marked by the amalgamation of vast sums of money for the carrying 1 out of gigantic commercial operations. We have had gold syndicate?, copper syndicates?, sugar syndicates; but it i& iesev\ed for New Zealand to show to the world the amalgamation of a number ot vast timber inteiests, forming a corporation dealing exclusively with the produce ot the forest, such as the world has never before seen. After many months ot negotiation a tentati\e agreement has been come to between the representatives of the timber interests in tho Provincial District of Auckland and a syndicate of Melbourne capitalists, to pin chase the kauri bushes and sawmills and w e are given to understand that with s-earcel) an exception the whole industry has come under the domination of the syndicate ie ferred to. It i» now some four months ago since ilr George lloldship, managing director of the Auckland Timber Company, then in Melbourne, was comimV sioned by a number of gentlemen ar the Victorian capital to negotiate on their behalf for the purchase ot the kami bushes and mills in this district. The matter wahedged with many difficulties and though local timber companies, through bad timeand low price of timber, had not been leceiving an adequate return for the capital invested, they assessed the \alue of their properties at a price that uaconsidered too high by the pio-pectne purchasers. Ho\ve\ er. arter a juumej to New Zealand and back on the pait of Mi Holdship, the syndicate was re-oigamsed. and Mr Holdship returned to New Zealand with a fiesh commission, and the dithcultiesthatmorethan once seemed insurmountable have been o\ ercome, and thebargain has been concluded. The list of timber companies and hims who hate agieed to disposeof their piopcrtie- i- neaih a complete repiesentation of the kamiindustiy The proposition i<=, we understand, to /loata company with a capital of 11,000,000, and of this sum from -C3OO 000 to €750,000 \\ ill be expended iti buying out the pie-eni ownei=. The terms aie "one fourth ca-h, and the balance within 12 months, beating interest at the rate of 5 pei cent, per annum. The bargain is on a cash ba-is. though it i? proposed to offer a portion ot tin s-uxk in the Company for subscription in >.ew Zea land. Ifc is intended, we understand, that nearly the whole of the voiUing up of tho timber shall be done here ; indeed, we aie assured that the operations of the new company will have a tendency to inciea=e the gross output and to decrease proportionately the expoit of baulk timbci At present fiom 2.000 to 3,000 hind- aie employed m connection \wth the timber industry here, involving an annual expenditure in wage, of horn £175,000 to C200.U00. Ifc is believed that the output will be augmented thiough the evten^ne area that will becoveied b\ the operations of the Company, and that tne numbei of men engaa^l will be increased. It i- claimed al=o that a sure return u ill be <ri\en to unetors, and that it will be a distinct ad\.mtage to the industry a» a whole that the conflicting interests arising tluuugh different owneis using the same creeks, etc., being removed. It is stated that one of the provisos of the agreement is that none of the vendors of the propeities shall deal in timber in this district for ten years. It is understood that Mi Blair, senior, of Melbourne, who is heie just now, and Mr Holdship -u ill act a? managers of the syndicate for the present. A good deal of difference of opinion will pievail with regaid to the eileet which' this gigantic opeiation is likely to have upon the pio-perity of Auckland, which i- *o laisrely bound up with the timber indut-ti}. It i* satisfactory to learn that ?o much local capital will be libeiated, but it i- to be hoped that a conbideiable poition of it- will be re invested in the mdu^tiy. The fact that the capital in these timbci com panics was largely ow ned by banks has been a millstone round the neck of the industry, which, in depleted times* ha- wellnigh caused sstiangulation, and it will be° a decided advantage that the capital invested will participate both in the pio^perity and adversity of the industry. The " management of the comy>an\, howe\ei, will rerjuire to exercise srreab care in the conduct of their business in order that, whiie cotisei\ing the interests of the shareholder nothing shall be admitted into the policy of the corporation that will operate again-t the interest of the opeiathe.- employed. Such a course, while inflicting immediate hardship on u\s as a community would not fail to re-act most disastrously on the company.