550

.a.—24.

[H.VALDEE.

Office,— s- d - s - d - Freight and selling-expenses ... ... ... ... ... 2 B'6B Bad debts ... ... ... ... ... ... ... 0 1-44 -1 10-12 Total ... 9 11;35 Costs of securing bush, also food and iire risks, are not included in the above. 1 should further like to state that it is the opinion of the man in the street that the sawmillers have grown very rich during the past few years on account of the high prices they have been charging. I should just like to say that in the district served by the Auckland section of the railways 1 know of at least two companies, with a capital amounting to nearly £100,000, who arc in liquidation. A third company of sawmillers admit having lost £150,000, and I know of four other companies which have started during the last five years who have not paid one penny of dividend. Therefore it does not look as though the sawmillers in this district are making the money they are generally supposed to make. 2. Mr. Mander.] In computing the cost of this timber delivered at the mill, do you add to the expenses insurance, depreciation, repairs, maintenance, interest on capital, and all the rest of it? —Yes, but not interest on capital. 3. If you added interest on capital would it not increase the price of your production? —I am taking the actual working-costs. 4. Does that give a fair idea to the general public of what the timber costs you: Is it not right to add the interest on capital to the cost of production? —Personally,'l should say not. I think it is a moot question. 5. How can you compute the exact cost of production if you do not compute the interest on capital?—l do not think it should be added to the cost of production. 6. How do you charge interest on capital?—We do not charge it to anything. 7. Do you not think you ought?—-No. 8. If you sold your timber at what it cost you you would be losing money '! —No, we should not be making interest. 9. Interest is money, surely?—lf you make it it is, but not otherwise. Of course, this is a matter of opinion. 10. I mean it does not give a correct idea to the general public : if you do not charge interest the public will leave it out of their calculation altogether, but you have to think about it? —Quite so. I should like to explain that I have taken these figures from our balance-sheet, and naturally we do not charge interest on capital in our balance-sheet. 11. What would interest on capital be per hundred feet if you charged it with these items? —The capital of our company is £75,000, and at 5 per cent, it would amount to a considerable sum. 12. How much per cent, would that add to the cost of production?—lt would have to be figured out. It would add considerably, undoubtedly. 13. Do you think the cost of production has gone up during the last eight or ten years?— Yes, but I have not taken out any actual comparisons to show for that period. 14. What do you consider is the biggest item in that increase?— The cost of wages and cost of materials. 15. Have you any experience of the life of Oregon as compared with rimu timber?—l have no personal experience at all of Oregon. 16. Have you had any lengthy exj3erience as to the life of rimu timber I —l cannot say I have. 17. You do not think rimu put fresh from the saw into a building would drop in about ten years?— Certainly not. 18. Now, in regard to the importation of this Oregon timber, do you think that at the present time —that is, so far as you know—Oregon ha,s reduced the cost of building for the workingman?—l should say it has made no difference to that. I understand the price is slightly higher than rimu. 19. In what way will it affect 3'ou if the price is higher than rimu?—lf it comes into the Dominion and if it is used it must take the place of local timbers. 20. Why should people use rimu in preference to Oregon if Oregon is slightly dearer?—l think that is a matter of opinion. One man would prefer Oregon and another rimu. 21. Do you suppose the builders would be in favour of Oregon in preference to rimu?—l have heard builders say they prefer Oregon and others that they prefer rimu. 22. Generally you suppose that, in consequence of Oregon timber being lighter to work and easier to drive nails in, the builders would give preference to it?—l believe that would have some weight with them. 23. You do not consider they would consider the durability of the timber at all?—I think they would give consideration to all points. 24. Do you consider that Oregon which grows in twenty-five or thirty years is likely to be equal to timber that takes thousands of years to grow?—ln my opinion it is not equal to those timbers. I have some samples here of our timbers, and a sample of Oregon. The one is much more open-grained than the other. In my opinion a timber such as that would shrink between the grain, and I cannot see how it is as good as timber with a close grain. I cannot tell heart from sap in Oregon. I have no knowledge of Oregon timber. 25. Is it not a fact that Oregon has soft-grain in it?— Yes. The soft grain shrinks away. It is not fit for fine work, although it can be dressed.