OUR TIMBER INDUSTRY.

Auckland Star, Volume LVI, Issue 215, 11 September 1925, Page 11

OUR TIMBER INDUSTRY.

WH AT IS THE ASSOCIATION ? STOUT OP ITS EXISTENCE. OBJECTS AND ASPIRATIONS DISCUSSED. (Specially Written for the "Star.") XIV. "What really is this Sawmillers' Association or Federation about which so much has been heard during the trip through the milling areas on the Main Trunk?" asked the "Star's" special reporter of groups of timber men whom jic met at Taihape and again at Marton. The answer was readily forthcoming. It was explained that it was a co-operative body incorporated to carry on the business of timber merchants on co-opera-tive principles. It appears that the federation, with headquarters at Taihape, operates over all the districts between Marton and Frankton Junction, whilst a similar institution acts in a like manner from Hamilton down the Rotorua line and in certain other parts. Jt is contended by the "heads" in the movement that the federation has also been formed to estabish, for the benefit of sawmillers in whichever district is the sphere of operations, a single man- ' agement and organisation. One object > is°to save the individual millers the expense of an office staff for the preparation and issuing of invoices to customers and of collecting their accounts. The federation also makes financial arrangements with its bankers enabling prompt monthly payments to be made to sawmillers for" their output, pending the , collection of book debts, and to enable special concessions to be given, if need • he, as to the time for payment, to good , customers. Further Claims Advocated. It was also claimed that all the aboye objects could be achieved by co-opera- . tion at much smaller expense, in pro- . portion to the aggregate output of the . mills, than would be incurred if each .• sawmiller had to engage separate can- . vassing and collecting agents and office staff for his particular mill, and gener- '. ally provide for an assured monthly , finance. A large number of mills operating in • the Main Trunk areas, between Frank- , ton and Marton, are members of tho j federation and quite a number are not. , Many and varied are the reasons given 1 by the latter for not joining up, but , those mill owners who have become j members appear to be extremely well , satisfied. The association or federation , is there to see timber on behalf of j millers. It is also there to give quick- ( ness of dispatch to orders, and it is j knpwn by a glance at records, kept in j the office for the purpose, where stocks 1 of the various kinds of timbers are held. } The small "outsider" could, not, under , the circumstances expect to compete ( with the association. He is welcomed , into its folds and the "Star's" special j was assured that he would have his ( turn at supplying just the same as other , members both large and small. During the last eleven years the Main j Trunk Association, with headquarters at Taihape, has handled and sold on behalf 1 of various mills 334,000,000 feet of tim- , ber and the bad debts have amounted to approximately one farthing in the £. The expenses in running "the show" have amounted to 2J per cent on the usual trade discount. "The association membei* can cut 1 out his timber worries; his finances are i relieved and he is entirely free to devote : his time to the many problems of production," was the way one prominent mill-owner described it when asked for : an opinion. Markets Outside New Zealand, The association also makes arrange- _ ments for bulk shipments of timber ; comprising the output, or part of the . output, of more than one mill. By this means markets outside New Zea- , land, which would not be available to ■ individual millers, it is said, excepting by paying a large profit to middlemen, t are secured to sawmillers. As far as . possible each sawmiller's output is disposed of to solvent purchasers only. This, it is claimed, assures a prompt monthly finance and protects millers from any necessity of executing orders for purchasers of doubtful credit. An endeavour is also made to distribute orders equitably among the various mills and to allot the execution of large single orders among them, arranging to their capacity and the timber which they are respectively capable of supplying. These arrangements make it possible for all the mills associated to be occupied, as far as possible, up to their full working It also tends to secure the regular custom of solvent timber merchants and contractors. One of the chief factors demonstrated to the writer was that all timber sold by the association or federation should he of good marketable quality and well and efficiently cut or dressed as the case may be. Under these circumstances a most rigid inspection is carried out and a supplier soon knows if his timber is not up to the mark. The Dominant Object. _ The dominant object, it was explained, is to carry on the business of timber merchant. In order to do this contracts are entered into with members and others. Under any such 'agreement the timber becomes the property of the association, so to speak, and is sold and disposed of hy the association or federation in a similar manner as by an ordinary timber merchant. By a system of mutual contributions ?»llers who are members are able to insure their workers under "The Workers' Compensation Act" at a much cheaper rate'than otherwise. . Then there is the question of freight involved and it is claimed by officials in this Main Trunk Association of sawn»U owners that by distributing orders w> those millers nearest the markets largo savings in railage freight arc Effected Whether or not this is really accomplished it is hard to say and there are some very emphatic differences of "Pinion on the point, especially- in the Country and amongst the timber merchants in certain parts.