THE TIMBER TRADE

New Zealand Times, Volume XXX, Issue 6678, 28 November 1908, Page 9

THE TIMBER TRADE

FIGHTING FOR EXISTENCE. DERUTATION TO THE PRIME MINISTER. "AN IMPERILLED INDUSTRY."* Sawmillors from all parts of the Do* minion, timber merchants, and representatives of Labour waited upon tho ■ Prime Minister yesterday, to lay before him tho position with regard to tho timber industry of the Dominion. THE WORKMEN’S POSITION. Mr D. McLaren. M.P., said there wore a number o£ workmen from Taihapo present who wero vitally interested in tho industry, the present position of which was sheeting them very seriously. Between four hundred and live hundred men wero out of 'employment through the closing down of mills. Tho positiou Irud been discussed by tho Trades and Labour Councils ot tno Dominion, and while an attempt had uecn. made to pro vent tho importation of Oregon pine by the imposition of a duty, oai-o would have to be exercised ■ in this respect, as the high price oi timber in tho cities was a very serious thing for the working: classes. ' Mr M. J. Reardon said that on no occasion had he been called upon to lay such a serious matter before tho Proi mier. It was a fact that Something, like five hundred men in the Wellington industrial district had been thrown out of milling employment recently,' while the position was nearly as serious in other parts of tho Dominion. Tho majority of tho men engaged in the industry were natives of New t Zealand, and it was no-comfort to thorn to know that they could get as good wages if they went to America. Most of them had families, and it would be impossible for them to take advantage of tho rates being paid in the Oregon , producing mills—which were having such a serious effect upon the local industry,"We are co-operating on this occasion with tho employers," he said, “because it is touching our very lives. If wo have to take to other work the only line wo would be able to follow would. Ire casual labour." This would bo very injurious to them financially, as tho wages they were receiving now wero Iretween 17a and IBs a day, while if they had to take casual labouring work they would have to bo content' wijh half that sum. Ho asked the Government to give favourable consideration to the representatives of the employees , because the interests of the employees lied employers were inseparable on ‘ this occasion, though tho representations' he was putting forward wero only, pnlhohalf of the workers in the Wellington industrial district, they could bo urged with . equal force by employees'in every part of the Dominion. Tho trade union’s representatives had stated that if it was found that a monopoly had been created within tho Dominion the Government could very easily break it down by increasing the number of Slate mills; MV Gardner. Taihapf,' ompbosised tin seriousness of the position, stating that ninny mills wore working shortliondcd end short hours, the men thus receiving, smaller remuneration. "Oregon pine is taking the bread and -butter out of the mouths of our wives and children," ho declared. THE MILLERS’ VIEWS. Mr W. H. Field, M.P., sa id that it had (icon .'impossible for other members— Messrs 0 uiuness, Seddou, and Jennings particularly—who hud taken a. keen interest in the matter lust session to be present. No doubt the present position had been aggravated by . the shortage of money, but tho millers found it ahso Jutely disastrous owing to depression end the importation of Oregon pine. They might have been able to keep the nulls going, but for tho competition by imported timbers. He had urged lost session that if Oregon pine came in tho same as it threatened to come in, the, industry would have to close up, but they had all the more reason to fear that such would bo tho -care now. Closing down would mean loss of capital sunk in tho industry, the throwing of hundreds of men out of employment,-.a diminution of traffic on the -railways, and tlie country would Ire at the mercy of a foreign monopoly, which, instead of soiling cheap timber would sell inferior timber at high rates. Last session but few-mom-bers were alive to tho seriousness of the position. Some had advocated that instond of the duty Ixsing increased it should lie taken off. ,Unfortunate!v. T ? &P if" ’-u 1 up the- cudgels on, oeha.f of millers had not received much assistance from other members. It was, a gjeat pity That tide was the case. ns something .of - a vital character might have been, done at that time. It hud become not merely a question of oawmillers losing their money,: vbut a no/tional question.

A NATIONAL DISASTER. It would bo a national disaster if the industry were to go down—as it inevitahly must do under present conditions. Mills were closing down -all over the country, and men were being thrown out of work by hundreds. He was intimately associated with a company which had s PS?' fc .- £2 0.pM m erecting, an up-to-date mill in the Raotihi district. It had only got ready to start when the dieaster commenced. ■ A number of the Bnareliolclors had Bunk every poixnv tJiey possessed in the world in the undartakmg. Only 100,000 feet of timber had been out, and now the mill was going to close down unless something was done. I# the present condition continued much longer the company would have to go into liquidation, when, instead of share, holders receiving a dividend, they would get something less thah .Ss in tho .£1 for what they had invested. Last session the millers had made a fair proposal to the Government. They had oilered to submit their books for inspection, whon if it were found that they were making exorbitant ■ profits, affecting the larger proportion of the population, they considered it would have been fair for tha Government to step in by establishing State mills. He was one of those who did not believe that any serious monopoly existed. No doubt when tho demand had been in excess of the supply some merchants had taken advantage o'f it and charged high prices for inferior timber, hut he did not think there woro many cases. So far as the millers were concerned, during the last'six years, the prices obtaining for ordinary building timber had not increased by more than Is per 100 fcet —which had been necessary owing to increased difficulty in obtaining tho timber. The duty should bo increased on imported timber of smaller sizes, thereby encouraging the employment of labour in cutting the smaller sizes. Unfortunately this could not b r: done until Parliament met, and the Government should consider in the meantime what other steps it could take to remedy the existing unfortunate state of affairs. ' FACTS AND FIGURES. Mr W. A. B. Bailey (Eangitikei) said they would not have some there but for the position having become very acute They wanted the Government to hurrv the Royal Commission up. During the last three years tho Manawatn Timl>er Company had not paid a dividend. He was not speaking only for the company. but also for the mesa. At present, in Taiphape there were 240 mon, averaging £. 12 a month, out of work.- At Danncvirke in October- last year 24 million feet of timber was exported; thia vear only li million feet. Seven mills wore closed, one was discharging 200 men, and all the others were working short time. On tho ; West Coast ten mills were closed, the balance were work-

/ng an average of , four days weekly, principally for thu n.-iLiiilxaii .speculative Hade. All the* mill.t there, uxucqit live, ivuro closing from tim middle of matt mouth until this middle of February. The loss of workers’ wages now ruprvfienUxl .1; 15110 per mouth. lluprussion alone could not account for tins position,. In other places many sawmillurs wore only waiting for ChrioUmio to close down for u cousidorahhi time. They might have hold their own hut for the iinportnliun of Oregon. In his district most of the mills worn cutting on settlors' ground, and had a lime limit. If the Uin her was not cut in the lime Stipulated it would prohahly all go up iu smoke. It ivan of the utmost importance that they should ki-ep on working ■tin account of Uio time rislrtelioji. SUFFERING FROM JJUMITNG.

Mr VV. A. Kllis, Waikato, pointed out that they represented tin- biggest industry iu Hie nonunion, and lln-ro had not been it single protesting voice raised nl a suggested tlovuniiiiuiiUii limitation of profits or the iqqiointmeul of a Royal Conuim-Mon, _ Tills showed, that tile millers were not alraid to have their position inquired into. They we.ro suffering from '■dumping.’' The Oregon being iuj[Mjrtod was only third and fourthelans. It had been on the Australian market for liitoen years, and white, piuo —which would nut he land for building purposes liorc-wau bringing a far higher pnoo there than Oregon. Jfo did not know whotJier, the Omindiuii timher fiue.sl.ion .effected any _ commercial treaty with Canada, If lin i protectants eon id prove that the position was due to dumping tin* Government would bo ahlo to deal with it without opening up the larger question. The millers m the .Northern districts paid nominally .010,000 por annum in freight to the railways, which ’would Ixi lost if the in ills wore closed. lln referred to the cliiasi/icntion of tho railway rates, which had not been altered for twenty or thirty years, and pointed out a number of anomalies which existed. Ho usked for tho enlargement of class 0 bo that timbers suitable for casks, crates and othor similar artickls could Ixi carried at tho same rates as mining and fencing timber, A PROTEST.

Mr McLaron hero handed in a protest from tho Wellington Trades and Labour Council to tho action of tho Wellington Land Board in offering for calo timber on Crown lauds, as tin) time had am-mil when tho Government should establish sawmills mid work all timber on Crown lands. This showed the minds of tiro wage-oarnrirß on tho question. Mr if. Jensen, Hawke's Bay. said the gawm Biers !iad not created the present jicwition. Oregon pine oamo into the Dominion for His 5d ndt. cash. Out of that 7e lid )vont bock to America. Tliat money belonged to tho workers of tho Dominion. Now Zealand mil loro warn landing timber at tho Wellington railway station—a suxierior class of timber —at 10a 9d per hundred. Tlio price of tho timber merchant was lie, less 2j per cent., making a difference of -Id in Die oosfc of the two timbers. Yet Oregon timber was sold for 2s 3d more than our own Umber. If 13a was thd price of Now Zealand ordinary building timber. Oregon was sold at las and 15s lid. “What bunoiit is this?" he asked, "to tire poor man of the Dominion or anybody else, but tho American importer, thd American workers, and the slapping companies?" borne eight million foot of Oregon had been lauded in tho Dominion during tho last four months, meaning that .£32,000 had left hero in cash. Out of that the Government railways had lost .£12,000, and the workers .£20,000. Tlio Government had received back a small proportion in duty. If tho present position continued all tho miilere would bo ruined., Hrt asked that tho duty on Oregon should bo increased to 4a per hundred feet, and tho importation of battens, scantlings, and ordinary boards bo prohibited.

Mr Win. Bailor (West Coast) who hae j list' roturndd from a visit to America, said ho had investigated tho mills and their methods. Bo had then forecasted tho position which had come about, from tho same judgment, uuloas thoro was some alteration in local conditions, tho position would got infinitely worse,. Tho American millers worked under such superior conditions to those hciro that wo could not hope to compete with them. They had larger holdings, nominal rentids, and taxes, carried on on a larger plan, had cheaper freights and labour— Japanese and Hindoo. Tho question' should ho approached on tho broadest economical linos, _ us it affected tho interests of tho millors and tho country universally. IN SYMPATHY. Mr Hopldrk, on behalf of tho timber merchants, said they we.ro in sympathy with tho millers. Ho denied that there, was any monopoly, and that more than living profits wore made. Mr Coradino (Wairarapa) said the millers were lighting for their very existence. Tho Government should make inquiries from the heads of Departments and see whether or not Oregon pino was being need in Government works when other timbers could bo bettor used. Ho alleged that it was. THE PREMIER IN REPLY A EOYAL COMMISSION. In reply tho Premier said that a JSoyai Commission was to bo sot up to inquire into tho position without delay. Ho wan only waiting—as they must reoogniso—until tho changes in tlio Ministry worn made to appoint the Commisaion. Ho liras not quite certain whether ha could SCO his way to recommend his colleagues to agree to tho appointment of a Commifisiou before tho essential readjustments in tho Ministry took place, Tho steamship sorvioo running to Now Zealand, and which hod been mentioned in connection with tho timber trade, had been entered into so far as New Zealand was concerned with the object ■of trying to assist producers 'to get an output trade to Canada. Tho Canadian Government paid tho whole of the subsidy (.£10,000) to Now Zealand, and the Government had agreed to pay JTfO.OOO jv year from Now Zealand to Canada in order to develop trade. It was not at that time contemplated that timber would form a portion of tho trade between Canada and Now Zealand by this service. None of tho steamers had at Erst, or for a considerable tbno after Die commencement of tb© service, carried timber. Tho date of tho expiry of tho subsidy, bo far as Now Zealand was concerned, was April 2Gth next. The Government was not prepared to subsidise any lino of steamers to carry timber against tho interests of tho people 'working in this country. (Applause.) When the subsidy was originally started they had never contemplated that tlio American timber business was going to bo developed. Ho also wanted to say, to remove an impression that existed, that thoro was no trading treaty with Canada and no preference of any sort on tho question of timber. There was no special treaty in connection with any matter with tho United States. PLAIN TALK. Ho desired to talk plainly—because until they knew tho whole of tho ins and outs of tho position from investigation, they all thought they wore in a position to judge, when in reality they were not. This was a groat responsibility on tho shoulders of everyone. First of all they wanted to find out what was wrong. When they know what was wrong they could dflect a remedy. His own opinion was that it was not tho sawmillers who were the cause of any large wideness of prices in connection with the business. If tho merchants selling the timber had come along in tho way of a deputation to him and hud intimated that they were prepared to do tho same as tho millers —allow thdir books to be examined—ho was not at all sure that it would have been necessary to set up a Royal Commission. Even on tho figures supplied him that day —and ho did not want to prejudice anybody; ho simply wanted to arrive at the truth —ho could not shut ills eyes to tho fact that if the figures woro right somebody was making about 15 por cont. upon the prices of timber

as landed in Wellington. That was tho difference between the cost of the timber and the selling price, if that was so ho had not the slightest hesitation in saying that it was an extortionate prolit for any person to he making out of limber. If Oregon timber was admitted for 10s 5d and sold at I as, it did not require much calculation to sec that there win a profit of 50 per cent. If the same margin existed between the price of tile local article and the price to the purchaser, he wan hound to say—making all propei’ allowances for bud debts —that it appeared to him to be a wide margin.

ISAII. WAY CON CESSIONS. In the meantime he would do the only thing ho could until Parliament met. Cabinet had no power to dual with the question of duty. The only way in which he could, temporarily assmt them until they had the opinion of tho Commission was over tins railways. He was quite* ready to look into Uio mutter without any delay in order to see w hether he could help Uio industry temporarily by , giving reduced rates, (Hear, heard He thought fill might bo able to give wine temporary relief in this connection which would prove of material ascisiaince to enable those in New Zealand to carry on business against competition from outside. lie would also look in to the. question of long-distance rates. Although some people advocated an increase in the railway rated, ho thought tho sensible tiling was to favour reduced rates wherever it was practicable in the interests of Uio development of the country. ENCOURAGING HOME TRADE. So fur as ho was concerned he would far sooner help in every possible way tho local timber industry than do anything to encourage any external trade or anything elso which came hero and interfered with trade. Hut while ho was doing that, what lie wanted to ensure was that there was prompt co-operation on ail sides so far as possible by not putting up the rates, so that there would be no restriction of trade. Ho wanted to be sure of doing the thing in a broad-minded way, and on practical lines. This was ono of tho dangers connect'd with the matter. When the last deputation had interviewed him there were a large number- of members in the House —ho was not easting any reflection on them—who wore strongly opposed to putting up tho price of timber by way of the suggested increases in duty. In a matter which affected large remissions of duty, tlie Government must not only know their opinion, but must also bo backed up by public opinion to warrant tho course taken. “1 would not hdsitate,” ho said, “so long as I was satisfied that it was right, to adjust tho timber duties so as to make it more equitable for local people to carry on business by tho spending of money on their employees and in utilising The public services. X am just as anxious as you to try and bring this about." THE MONEY MARKET. He did not know how far the position had been brought about by any tightness iu tho local money market. It had been breathed very strongly for some time past in certain quarters that wo were going to have severe financial times. Indirectly such statements must have an dffect on everybody who had an interest iu tho country. He thought himself that probably there was now no such thing in the air as a difference of opinion on n political contest, and tiiat all recognised that it was in the befit interests of tho country for all people to sink their differences and work to bring about a condition of affairs so as to have the trade and bo able to grapple with the position if there was trouble to come. He had no hesitation in saying that tho statements had caused a tenderness and doubt in quarters where it was of vital consequence to business. Eor his own part ho could only hope that if this had led to tho present position it would soon disappear. STATE SAWMILLS. Ho believed in using local timber _ in Government works wherever possible. Ho was not in favour of starting State sawmills because they were; not.in the position to do it, and in the second placo because it was not desirable to do so beoauso there were as many mills as consumers could take tho products of. It they established State mills to get over the jiresent difficulty it would result iu the closing of a number of the mills in existence. This would mean a diminution in tho number of men employed over the whole of the Dominion. If they could ensure that the mill proprietors were getting a fair return for tho money they had invested it would bo wiser in the interests of the country, so long as the business was conducted fairly and the people, were not handicapped by excessive charges, to allow tho present .system to remain. Ho was fully impressed with the necessity of seeing tho matter dealt with as soon as possible, and an effective remedy devised. Mr G. H. Chapman, Wellington representative of the ikiutli Island West Coast millers, has written to tho Premier pointing out that the suggested remissions of railway rates will only affect North Island mills, and asking that somo special consideration bo given, if possible, to tho millers In the South Island.