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REMARKABLE PROCEEDINGS.

GOVERNMENT METHODS AROUSE DISTRUST. A CHARGE AND AN ADMISSION. A peculiar state of things in regard to the sale of kauri timber by the Government was disclosed by some answers gi\en to Mr. Fowlds and Mr. Alison by the Minister for Lands yesterday afternoon. The question was asked as to why he sold certain timber on two lots to one firm for £1000 below the price tendered to other firms for the same lots. The Minister stated in reply that the recommendations of the Commissioner of Crown Lands were approved in regard to both blocks. The lot in Tutamoe was granted to the Mitchelson Timber Company at 2s 9d per 100 superficial feet, which was considered by the officers of the Crown to be a fair price ; the tender of the Kauri Timber Company was 3s I3d per 100 superficial feet. The Minisl- ; er's> explanation of this proceeding was that tho former Company had timber on hand to the extent of 15,100,010 superficial feet, (one year's cutting); the Kauri Timber Company had on hand 61,625,000 superficial feet (Wairoa mills, two years' cutting), 'lne Kauri Timber Company were tenderers in four lots in [ Tutamoe and one in Tangihua, representing a total of 17,778,6t>5 superficial feet. The Kauri Timber Company obtained Ijwo lots of 6,985,262 superficial feet, and the Mitchelson Timber Company two lots of 5,648,475 superficial feet. Lot 4, Tangihua, containing 1,362,262 superficial feet, was granted to the Mitchelson Timber Company at 2s 6d. per .100 superficial feet ; and the tender of the Kauri Timber Company was 2s 8d per 100 superficial feet. This was done on the recommendation of the Commissioner of Lands; here, again, the price tendered was not alone the factor under consideration. One of the objects of the Kauri Timber Regulations was to prevent any person or company from obtaining a monopoly of the kauri timber sold by the Crown. The price tendered was therefore not the sole consideration. Speaking substquently to the Minister's reply, Mr. fowlds said it revealed the fact that the Minister had subsidised, one company to the extent of ovel £1000 as against another company. In connection with this matter there was .'growing up a condition of things that amounted to a scandal, and he was perfectly satisfied that if members would realise the possibilities in connection with :the regulations for the disposal of kauri 'timber they would take steps to secure a change in the position of affairs. The reply of the Minister was intended to I show that he was regulating this matter' so as 'to secure a fair apportionment of 'the timber sold' amongst the various mills. He should take the first opportunity of moving for a return of the l&uri that had been sold during the past five years whether by auction or otherwise, so as to show how that apportionment was" working out. But, he asked, was it" desirable in the interests o't the colony that the Minister should .have this ' means of favouritism at his disposal '{ In this case the Minister actually sold one section of timber to one tenderer at 6d per 10U feet less than had been offered by another, and yet he replied that he was. "not aware that any timber had been ' sold below a fair matket price." (Laughter.) ,He sold it for 2s 9a when 3s 3d was offered. He did not say how far the Minister was involved, but it presented a fair opportunity for people to make unpleasant insinuations, and the sooner the regulations were altered so that tho timber should be sold to the highest bidder the better it would be for the reputation of the Minister. Let the Minister fix a minimum price, and if that price was not secured at auction let the Government keep the timber. What right had the Minister to throw away over £1000 of the assets of the ' Colony in one lump like this? The actual working out of the matter was this, that one company received a bonus of 6d per 100 feet against any ' other company competing in the same district. That was quite sufficient to put that one firm in the position of being able to ,"cut" everybody else out of the market. The Minister ought to put a stop to the present condition of things. The way to prevent a monopoly would be for the Minister to fix a minimum price, so as to prevent combination amongst the millers, and if any one offered more the tintber should be put up to public auction or tender. The present system was unsatisfactory to all concerned, and put the Minister and the officers of the Department under a suspicion, that ought not to be possible. The whole question of the disposal of kauri timber was rapidly getting into the position of a scandal, and no satisfaction would be felt until the method of disposing of it was radically altered. Mr. Mander corroborated, he said, every word uttered by Mr. Fowlds. He did not think the Minister would be guilty of any favouritism in the matter, but the fcict remained that the methods pursued put the Government .under a very grave suspicion. If it -was necessary to distribute the timber fairly the least that should have been done was to have demanded from the purchaser as high a price as was offered by the other company. It looked to him very m,uch like purchasing political support. The Minister for' Lands was prejudiced against the Kauri Timber Company, and he himself (Mr. Mander) had on one occasion been unfairly treated in regard to the disposal of timber adjacent to his mill— he presumed for political reasons. Mr. Alison said the reply of the Minister to his question, was most extraordinary. Was that thq way the business of ■ the country was to be carried on 'i Was the timber to be handed over to certain companies or individuals to the loss' or the State? A feeling existed that there was corruption and favouritism to the prejudice of the State. The Minister for Lands (whose reply was not always audible) said he did not think it was right for any member to support the Kauri Timber Company in creating a monopoly, and so put people out of work who had a right to get work.' They did' not want favouritism to anybody. Mr. Alison : No ; . but we get it. The Minister said he would have been open to censure if he had allowed that company to monopolise the timber and leavo the other mills standing idle. If he had allowed the Kauri Timber Company to get what it "applied for, no one else could have got any. It would then have charged what it liked. The present conditions were as fair as possible. As to the price, he said that very little kauri timber had been sold at such a. high price as 2s 9df and it was considered by the Commissioner and the Board that the 3s 3d was offered to block the other company. Mr. Ma-nder: Why did you not make them pay 3s "3d, as offered by the other company? The Minister : That's what the Kauri Timber Company would have liked ; it would have offered such a' price as would have prevented the other companies working at a profit. There was nothing political about what had been done. They would get fair play, but they would not get any monopoly as far as he could adjust it. His duty was to protect the people of the colony, and give fair play. Mr. Fowlds : That is our complaint ; we don't^get it. The Minister : Then your complaint is cut from under your feet. Mr. Fowlds; There's £1100 cut away here. • For children's hacking cough at night •take Woods' Great Peppermint Cure, Is 6d and 2« fiA— AAii.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/EP19041027.2.42

Bibliographic details

Evening Post, Volume LXVIII, Issue 102, 27 October 1904, Page 6

Word Count
1,305

REMARKABLE PROCEEDINGS. Evening Post, Volume LXVIII, Issue 102, 27 October 1904, Page 6

REMARKABLE PROCEEDINGS. Evening Post, Volume LXVIII, Issue 102, 27 October 1904, Page 6

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