TIMBER RESERVES

Dominion, Volume 8, Issue 2466, 20 May 1915, Page 9

TIMBER RESERVES

ON THE MAIN TRUNK LINE A RECENT TRANSFER The Government has been blamed by the Opposition Press for disposing of the milling eights over a certain timber reserve hold by the Railway Department adjacent to tho Main Trunk line. Tho following statement from the Department obtained by a Dominion reporter yesterday sets forth the reasons why the Department did not consider it good business to hold the area in question and to mill the timber on it:—

"Tho Railway Department has been milling its timber reserve at Kakalii for about five years, and it is estimated that it will be cut out this ■ year. It has therefore been necessary for it to decide which of the milling reserves held by the Department will be next opened out. The expenses of opening' out a new area for milling purposes are necessarily heavy; sidings and tramways havo to be laid down, sawmilling plant and cottages erected', and it is obvious therelore that there must be an adequate supply of suitable timber io the area to justify the heavy first cost of . establishing a mill.

"On analysing the relative merits of Ohakune and Mamaku (the two milling areas reserved for the Department), it was obviously more advantageous to commence cutting at Mamaku, where the quantity of suitable timber is estimated to give at least 15 years' cutting, whereas the Ohakune reserve will give less than 3 years.

"It is clear on giving the matter consideration that with the alternative of Mamaku it would not be a good commercial undertaking for the Railway Department to commence cutting out the Ohakune reserve. This being the case, and as it is desirable in tno interests of the Ohakune.district that tho reserve should be cut out, it was decided that the Railway Department should give up the area to some firm which is prepared to out it out without delay. The .Railway Department was also desirous of finding a firm prepared to take over with the milling rights at Ohakune the oxpenses already incurred by the Department, such as royalty for timber, laying down all sidings, etc., which amounted to nearly £2000, and which could only be reiirbursed by an incoming tenant. It was only a firm with a mill established on the spot which would be able to economically work the small area reserved for the Railway Department at Ohakune. The Rangataua Milling Company offered to take over the cutting rights for this area, as well as the royalty, and all development costs incurred up to that time by the Railway Department. This offer was considered most favourable to tho Department, and the Lands Department on being approached acted wisely in accepting same."