TIMBER WAR

Evening Star, Issue 19923, 20 July 1928, Page 5

TIMBER WAR

KEEN FRIGE-GUTTING AM OVER-SUPPLY [SI’KCUL TO THE ‘STAR,’] CHRISTCHURCH, July 19. There is a keen price-cutting war on among sawmillers on the West Coast and among timber merchants in Christchurch. It will be a light to a finish this time, according to a loading Christchurch merchant. The cause is said to be due mainly to the supply of timber being _ greater than the demand, and to the tightness of money following on the raising of the bank rate of interest on overdrafts. Now that the interest rate has been reduced, some hope is held out for the future. The slackening of the demand from Australia for timber is given as am other cause of the over-supply. One merchant slates that the cutting has been so keen for the last six months that it cannot continue. The war has already had its casualty list, for many mills on the West Coast have been forced to close down, and others may follow if the fight lasts much longer. “ Timber from the West Coast is corning to Christchurch to be dried, but it is beirrg put into the houses in a shocking state; it is wringing wet,” declared a merchant. “The timber cannot be dried on the Coast owing to the wetness of the climate there, and is very inferior stuff, which has found its way into some of the houses recently erected. People think that because of the price war they are getting cheaper houses, but they should take care that the timber is dry. On a small house price-cutting has resulted in a saving to the buyer of about £ls. There is certainly a keen trade war on, but the position has appeared a little brighter in the last month, owing to the greater number of inquiries. The war is still on, and there is cutting among both individual sawmillers on the West Coast_ and among timber merchants in Christchurch. The prices have been cut .so fine that the struggle cannot continue.” , Another merchant stated that the cause was slackness in the building trade, which forced millers and merchants to cub the price to retain their customers. The local demand for timber bad been much less through the satisfying of the housing shortage, and the position was not likely to improve for some time yet.