19

H.—44,

increasingly common feature. Such organizations, with lower overhead costs, reduced costs of purchase and distribution, and new methods of sale and delivery, have proved in many cases that reduced prices are still consistent with a reasonable margin of profit. While, therefore, it cannot be denied that in some instances what appears to be uneconomic pricecutting has been indulged in for competitive or other reasons, yet in numerous other instances it is equally undeniable that such tactics must more correctly be called " price competition," and must be regarded as a perfectly legitimate form of competition due to the adoption of improved methods of distribution. Economic progress demands constant improvement in all stages of production, and " production " is not completed until the goods arc in the hands of the ultimate consumers. That is to say, the remedy for price competition is the adoption over the whole field of retail trading of more rational methods of distribution. Persistent price-cutting, however, in contradistinction to price competition, must eventually lead either to retirement from the field of commerce or to the Bankruptcy Court. Timber. Production of Timber. The production of the main varieties of timber in the Dominion for the past eight years (ending at 31st March) is given in the following table : —

I I I I I I I The statistics for the sawmilling industry continue to evidence the depression that has been experienced by this industry for some years past. The decline in production figures for 1928-29 compared with that of the previous year is comparatively small, but when compared with the year 1926-27 the decrease is appreciable, amounting to no less than 35,000,000 ft. A still more serious decline is shown when comparison is made with the figures for 1925-26, which show a decrease of 83,000,000 ft., or 23 per cent. The number of sawmills engaged in the production of rough sawn timber shows a shrinkage of twenty-four, the relative figures being 316 in 1927-28 and 292 in 1928-29. Employment figures are equally disconcerting, as shown by the following : 1924-25, 7,377 ; 1925-26, 8,511 ; 1926-27, 6,996 ; 1927-28, 6,423 1928-29, 5,757. With a lessened demand for timber the year just ended is likely to show further depression in the industry, and consequently a further decrease in the number of employees. The decrease in the production of native timber is in a large measure due to the substitution of other materials for timber in constructional work. Plaster and wall boards have made serious inroads in the quantity of timber previously used for rough lining, tongued and grooved ceilings, &c., and the increasing use of concrete for floors and flat roofs are also serious factors in a movement towards the diminishing use of timber in building. This fact is borne out by returns furnished by the building and construction industry for the year ended 31st March, 1929. The figures show that while there was an increase of £1,256,735 in the cost of materials purchased (including payment to sub-contractors) the sales of timber by sawmillers declined by £34,135. The export trade of the year under review showed a substantial increase of 4,000,000 ft. in quantity, and £62,375 in value, compared with that of 1928. The relative figures show the position as follows : 1928 —quantity, 34,970,773 ft. ; value, £376,967. 1929—quantity, 39,102,831 ft. ; value, £439,342. In addition to internal competition the miller has faced increasing competition from overseas. The following table shows in thousands of superficial feet the quantities of timber that directly compete with New Zealand native timber : —

Total. Kauri. J llimu. White-pine. Matai. Totara. J Others. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. 1922 .. 314,972,310 21,435,728 157,345.928 68,486,633 24,830,368 19,570,561 23,303,092 1923 .. 304,351,877 22,460,759 155,627,936 66,088,219 23,747,049 20,843,718 15,584,196 1924 .. 317,069,216 19,743,196 181,093,581 56,699,443 24,326,148 18,904,361 16,302,487 1925 .. 344,094,874 22,891,535 195,572,705 65,572,439 23,947,707 18,509,551 17,600,937 1926 .. 353,224,196 22,765,877 195,451,758 75,634,869 26,141,027 14,109,576 19,121,089 1927 .. 305,675,258 18,474,981 170,498,282 65,490,059 19,380,469 14,179,462 17,652,005 1928 .. 269,783,000 15,874,000 156,314,000 53,736,000 15,207,000 15,728,000 17,924,000 1929 .. 270,214,420 10,742,967 156,239,992 56,790,306 15,752,744 8,610,639 22,077,772

| 1926. 1927. 1928. 1929. I I ] (1,000ft.) (1,000ft.) (1,000ft.) (1,000ft. Cedar .. .. .. .. 8,905 2,390 2,066 1,336 Oregon .. .. . 16,937 17,638 16,713 16,188 Hemlock .. .. .. 4,278 2,207 4,903 4,108 Redwood .. . .. 3,500 7,583 7,478 11,678 Butter-box shooks . .. 1,648 1,807 2,006 3,147 Cheese-crate shooks .. .. 856 1,433 785 1,373 Total .. .. .. 36,132 33,058 33,951 37,830