KAURI TIMBER.

Auckland Star, Volume XXXV, Issue 39, 15 February 1904, Page 2

KAURI TIMBER.

THE NEW REGULATIONS. DISCUSSED WITH THE MINISTER FOR LANDS. At the invitation of the Minister for ! Lands, a number of gentlemen interest;ed in the timber trade waited on Mr. ; Punca: , , at the Lepartmental Btu.dings : in-day. The mill-owners present were ! the Hon. E. Mitehelson (Mitchelson Tirurei Company). Messrs. Leyian.l and O'Brien (Ley la^d-O'Brien Company), Parker (Parker, Lamb, and Company;), D. Goldie, Lush (managing director), T. While (mill manager), and S. Miiroy (secretary Kauri Timber Compauvi, B. Cashmore. W. B. White (Waihouj, R. Maeklow Smith (Port Albert). The Minister *vaf accompanied by Mr. Marcbant (Surveyor-General), Mr. Muel- | ler (Commission of Crown Lands, Lusk, and Cavannagh (of the Forestry Department. Telegrams were read from Messrs Mander, M.H.R., and Trounsou (Kaihau) I regretting their inability to be present and stating that they were strongly in favour of the continuance of the system of public sales by auction in dealing with the sale of kauri timber. In opening the conference, the Minister asked the timbermillers to express their views on the best form of regulating the sale of kauri timber, saying that we were now within measurable distance of the termination of the kauri forests, and that the next ten or fifteen years would see it cut out. The Government was anxious to make regulations which would conserve the timber, and at the same time keep existing mills fully employed. , Mr Mitchelson, speaking for his company, urged that the new regulations (under which the Government will sell, at its own valuation, sufficient timber to keep a mill employed for three years ahead), were the best that could be framed, and formed the only true course to be adopted. < After he had spoken on these lines Mr Goldie was asked to speak, but suggested that if there were any objections to the new scheme they should be first heard. Mr Lush, representing the Kauri Timber Co., said they stood for the old conditions of a fair field and no favour. There was no statement that anyone had suffered injustice under the old system, and good reasons should be given for changing; but none were forthcoming. The best policy for the State was to get the most for its asset; the Government were trustees, to realise the public estate for the best advantage of the whole community. The only benefit accruing to New Zealand from the existence of its kauri was the money to be derived from its sale and manufacture; that operation could only be done once. If it wore to be treated as a commercial asset and not a botanical curiosity and ornament its value would be destroyed if artificial hindrances were created as to continuity of supply. As to the bogie of monopoly, he had shown that nothing of the kind had so far arisen under the old conditions, and there were no reasonable grounds assigned for supposing it would exist in the future; whilst on the other hand there were the considerations that to arrive at a monopoly would involve overcoming the Government, who have the power to fix their own upset price, and then securing the timber against the opposition ■of all parties interested, to say nothing of the risk by fire and incidental expenses pen<J£ng realisation, by which time the cost of the timber would render it unmarketable. It has been said that they could charge what they liked, but every business man must s«e the absurdity of such a statement, in view of other competing timbers, the consumption of which would be immediately greatly stimulated. Any other system but public competition necessarily involved lobbying and political influence. Was it to be a political engine for men of the right colour? It was a direct bonus on. and incentive to, dummyism and fraud. How was the Minister to discriminate between different applications, and on what evidence?. Mr Goldie spoke on the same lines as Mr Mitcheison, stating that one mill owned by the Mitchelson Company cost £30,000," and if that mill could not be kept supplied with logs it would be lost to the shareholders, and a number of men thrown out of employment. Those who had embarked their money in the mills should be considered by the Goternment. It was unwise to put the whole of the timber on the market just now, and sell it by auction, because it would be acquired very largely by those who could find the capital to buy it. Those persons could then charge whatever price they liked. If the timber was only going to last 10 or 15 years, the Government would do well just now to put on the market just sufficient to supply those mills in existence with the timber they required for present purposes, and as the timber became scarcer and the price rose they would get the benefit of the increased price. The price on the English market had remained stationary, and was not likely to rise, for the reason that we had taken care to put just as much on the market as it could take. That was the reason wLy the price was as it is now. Messrs W. B. White, Leyland and Smith all spoke on the same lines as Mr Mitchelson and Mr Goldie. They considered it desirable that the Government sell at its own terms to mill owners in proportion to their requirements. The Minister, in replying, said that he was very pleased to see that those present were practically unanimous in approving what the Government had sugj gested. He for one was not prepared to allow any large organisation to get a monopoly of the timber. Under the auction system buyers eouid combine to keep prices then divide the timber amongst them. It was his duty to see that work was found for men, and if any particular company could buy all that came into the market they could hold for an advance and close J their mill entirely. It was therefore his duty to see that this was rendered impossible, and that tbe public, the ultimate buyers of the timber, were protected. Regulations on those lines would be adhered to, and under those line 3 timber would be sold for the future. Since the interview a telegram has been received from Foote Bros, sawmillers, Whakapara, as follows: "We are in favour return to auction system sale kauri forests."