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C—4

OTAGO. There are nine mills engaged in the timber industry in Otago, but these may be looked upon as small plants ranging from 8 to 25 horse power. Their total output averages slightly over 3,000,000 cubic feet per annum, but this quantity varies somewhat in accordance with the local demand. Dunedin City constitutes the principal market, a limited quantity being absorbed by the country districts and Canterbury. With the progress of the Catlin's-Waikawa Railway the number of mills may increase ; but without the railway as a means of taking away the timber there is little chance of any great strides being made in sawmilling. The absence of suitable harbours is a serious drawback to the timber industry in the southern part of the Otago Land District. For a part of last year a mill was working near the mouth of the Tautuku River, from the estuary of which a small scow brought the timber to Dunedin. The insufficient shelter, however, and the difficulty of getting in during all weathers, compelled the owners to clcse down. It is reported, however, that another attempt is to be made to restart the mill by a company with sufficient capital to give the venture more hope of success. In the Tautuku Valley there is a large area of very good timber —red-pine predominating — r and it is regrettable that some means of cheap transport cannot be found. In travelling south from Dunedin to Balclutha and thence by the Catlin's branch line, the first mill reached is that at Glenomaru, owned by Messrs. Greig and Co. This plant is driven by a 25-hcrse-power oil-engine. It was one of the first mills in the district, and has now been working for many years, consequently the surrounding area is nearly cut out. The Glenomaru Railway-station is convenient to the mill, and from thence the timber is sent to Dunedin. The next mill is that of Latta Bros., of Katea, three miles from Hunt's Road Railway-station. A wooden tramway has been laid from the mill to the railway-station; along this the timber is trollied from the bench to the truck, and thence supplied to various builders in Canterbury and Otago. The area of bush supplying the mill has been heavily timbered, and has produced first-class timber. Latta Bros.' Tahatika Mill is situated about four miles from Owaka Township, up the Owaka Valley. The output from this plant is carted by wagon and horses to Owaka Railway-station. The area of good bush was not sufficient to warrant the construction of a tramway; but the timber produced is of splendid quality/ Probably two years will see the bush area that supplies this mill also cut out. Within easy distance of the Catlin's Railway-station—the present termirus of the Catlin's branch —are situated Latta Bros.' third mill, Bates's, White's, and Dawson and McKechnie's mills. Latta Bros.' mill is driven by a 16-horse-power engine, and it is within 10 chains of the railwaystation, to which a wooden tramway has been laid. Dawson and McKechnie's mill is about three miles from the station, and their timber is carted to the railway by wagon and horses. This carting, sometimes in heavy loads, has the effect of destroying the roads in early winter, and causing a heavy expenditure in wear-and-tear. White's and Bates's mills are small plants working intermittently, and manned by the owners. Their output is necessarily small, and is disposed of in builders' lots. In the Lakes district there are two small plants. One at Wakatipu, owned by W. A. Grant, cuts principally red-birch with a small quantity of totara for local consumption. Ewing's mill at Makarora Valley, head of Lake Wanaka, is cutting in an area of 100 acres of Crown lands. Its output is used for local consumption in building and bridge-construction.