TIMBER TRADE

Timaru Herald, Volume XIIC, Issue 13597, 18 May 1908, Page 6

TIMBER TRADE

AMERICAN COMPETITION STRONG.

CHEAP STEAMER FREIGHTS

Mr Morris, chairman of the West Coast Sawmillers' Association, has addressed a lengthy letter to Sir Joseph Ward, wherein he states: —"The members of the West Coast SaM'millers' Association desire to avail themselves of this opportunity to bring before your notice the serious inroads against our trade which are being made by large importations of Oregon pine into the Dominion. This timber is being landed in New Zealand ports for Is 6d per 100 ft less than our red pine. I would respectfully point out that this timber is produced under conditions such as do not obtain in this country, as nearly all the unskilled labour employed « Asiatic, at about 75 per cent, less than the wages ruling in the timber trade here. Besides, the shipping facilities are such as to minimise the cost of handling to the lowest possible extent,' and thus enables the freignts to be cut below anything obtainable in New Zealand, as it carried by ocean tramps manned by Asiatic crews at incredibly low rates, which no company trading in New Zealand waters could for a moment entertain, and which secures to the Oregon millers at once an average advantage of 6d per 100 ft. Comparisons of sea freights areGreymouth to Wellington, 2s 9d; Greymouth to Dyttelton, ss; Greymouth to Timaru, 3s 3d; Greymouth to Dunedin, 3s 6d; America to New Zealand ports, 2s 6d. The present selling price of our timber —first-class ordinary building "quality—is 8s f.0.b., and is the same to-day as it was in 1901. During the interval prices fluctuated to the extent of 6d, but have never been increased beyond the 8s now ruling. From the price list "an ordinary trade discount of 2j per cent, is allowed the buyers, a. further 2£ per cent, is absorbed in the management of the company's shipping business and distributing to the company's clients in Wanganui, Wellington, Christchurch, Timaru, and Dunedin. Ihis would leave the sawmillers about 7s 7d were the output all of first-class, 0.8. qualit v. Experience demonstrates that about" 15 per cent, of the- produce has to be sold as second-class, at a reduction of Is 6d to 2s 6d per 100 ft, and the net result to the sawmiller is very little over 7s per 100 ft. From this sum the sawmiller has to provide royalty, 6d; railage (average on this section Is Id); wages 3s 6d; rents, interest on capital, accident insurance, county rates, horse feed, wear und tear, and general depreciation, say Is. This leaves lid per 100 ft out of which to provide for the erection of mill and sinking fund for their removel when the bush attacked is cut out. I submit that by no stretch of imagination can this be considered an excessive remuneration, bearing in mind the risks attendant upon the business, especially those losses from flood and fire which are greater in the timber business than obtain in any other industry in the Dominion. Into these figures I court the fullest investigation, and while freely admitting that some millers favourably situated may show better results, the figures quoted give the average returns to the West Coast sawmill owners, as stated above. In addition to the foregoing '! would respectfully point- out that the railways are now drawing £2OOO per month from the carriage of timber, and its handling at the shipping ports employs ;t. number of men; consequently every million feet of Oregon timber imported into this country means curtailing the employment of our people and reducing the earnings of our railways and ships. For the reasons advanced I therefore pray that you will favourably consider the advisability of increasing the import duty on all foreign timbers which come into competition with the local product."