HIGH PRICES OF TIMBER.

Dominion, Volume 1, Issue 196, 13 May 1908, Page 5

HIGH PRICES OF TIMBER.

, RIMU v. OREGON, i % Sir,—The higlv .prices 'of timber at Wellington Miave; beon considerably commented iupon' by the' builder's,-.public, and tho Press, and the Minister for .'Customs was approached with a view to take off the existing duty on Oregon pino timber. The phantom idea that ■a' ; monopoly : exists,causing' tho high prices is .again in evidence. ' Tho sawmillers havo formed unions, and whoii the prices go up they -are charged with forming combines and ■monopolies, and a hue and cry raised through tho Dominion, .• " . When-the cost of production of rimu timber, is analysed and compared with Oregon timber it should be apparent to any reasonable mind that'tho duty should bo kept on Oregon timber, if not increased. . Tho present prices of rimu timber charged to Wellington timber merchants by sawmillers are:—Ordinary building rimu, lis. per 100 ft.; ordinary building 12in. wido rimu, lis. 9d; per' 100 ft.; ordinary building sarking rimu, 10s. per 100 ft;; tin. lining, 6s. 9d. per 100 ft. ; Oi,B. heart-rimu, 16s. per 100 ft.; clean heart rimu,-17s. 'per 100 ft.; f.o.b. trucks Wellington less 2J- par cent. .Tho averago production of rimu heart amounts to 15 per cont. of the log. It is .difficult, to get. at each ' individual miller's cost on these prices, as circumstances of mills vary where less railages have to bo paid; often more difficult country is being worked and costly carting rates. The averago railage from sawmills in Hawke's Bay to Wellington per.lOOft. (super.), is 3s. 4d.; from Taihape, 3s. 6d .; Wairarapa, -2s. 6d.; Rangatau Waimarino, ss, 3d.; average royalty paid on rimu, Is; per 100 , sup. ft.; average cost of tramlaying,. trucking, felling, • hauling to mill,' 3s'. per 100 sup. ft.; avorago > cost of sawing, stacking and yarding at mill, Is. 6d. per 100 sup. ft.; averago carting and loading to railway trucks, Is. per 100 sup. ft.; maintenance,of mill, 2d.; insuranco rates, £7 per £100 on'mill-houses and stocks; insurance on workmen's wages, £3 6s. per £100; contribution to Association, 2d.; office expenses, exchange, travelling expenses, deductions and shortages, depreciation on plants, horses, cattle, losses by fires to -trams and bridges uninsurable, interest on capital. ' . ' - When the freights and above costs are deducted from the prices timber is supplied to Wellington merchants, the semi-miller-man and sawmiller, profits sink into, almost invisible insignificance. • Now as to Oregon pine timber. This tim'ior is a light and cneap timber to handle. Tho exporting mills that cut it aro run on a huge scale, and on lines that would riot bo tolerated in New Zealand. Longer hours are worked, cheap labour ; employed, many Japanese, cheap water carriage in fluming and rafting. Truck Acts do not exist, and wages paid to tho men come, back to the milling companies, who practically own the townships and supply the workers with clothes,, etc., and necessaries of lifo. Labsaving machinos, water carriage and cheap labour,-are doing the work on a large scale. Large tracts of bush are leased to milling companies, sailings vessel freights from the Pacific Coast to Wellington amount to about 2s. per 100 ft. superficial, a distance of 6000 miles, whilo we pay 2s. per 100 ft. railway froight to carry timber 40 miles. Large tracts of bush are not obtainable in Now Zealand to warrant putting in mills- of a class equal to the Pacific Lumber. Company's mill, and not in accord with our laws. While our cost of production is affected by many disadvantages, combined with restricted legislation, the- country must bo, prepared to pay higher prices for material produced and placo prohibitive duty on imported material. . Through financial troubles in America Oregon pino timber has fallen in price, and New Zealand is at the present moment being canvassed as a dumping ground to land Oregon timber. Tho present quotations aro 7s. 9d. per 100 ft. super, c.i.f. Wellington. If tho duty is taken off Oregon timbor sawmills in New Zealand cannot possibly compete unless tho Railway Department assist thorn by reductions in freights.—l am, et-c., sawmiller; April 30.