THE TIMBER COMMISSION.

Gisborne Times, Volume XXVII, Issue 2462, 29 March 1909, Page 5

THE TIMBER COMMISSION.

EVIDENCE OF SOUTHLAND SAWMILLERS’ ASSOCIATION.

(Press Association.)

INVERCARGILL, March 27. - The Timber Commission took evidence to-day. E. A. Leary, secretary of the Otago and Southland Sawmillers’ Association, said the association was formed in 1907 with 15 members, representing 21 mills, out of a total of 73 mills district. One object of the association was to maintain uniform prices. Now there were 18 members. There were penalties for breaches of rules. The association had never asked outside mills to Join. There had been resolutions limiting the output, which lately had been cut down one-third or more, the mills being overstocked. It was not done for the purpose of raising prices. The association did not work in concert with northern bodies. J. Hensley, managing director of the Southland Timber Company, said 'the cost of production varied according to the nature of the country. The cost averaged 8b to 8s fid, 50 per cent representing -wages. -The difficulty was that the life of the bush areas was short, and the depreciation considerable. The average life was six years with the area allowed. The cost of a mill to cut 100,000 feet per month was £4OOO. The value of the plant was £7OO after six years’ use. Discounts varied. Timber delivered in Invercargill sold at 7s 9d nett. This was rough. The first class average nett selling price was 9s to 9s 6d, including timber of all classes. The wreat bulk of the timber of the western district was birch, which was difficult to sell. There was a duty imposed by the Commonwealth. His company had paid a fair interest last year. The price of timber in 1907 showed an average increase of 9d per 100 ft, or 10 per cent. Wages rose higher in proportion. The price was raised because or the increased cost of production. Wages formed the main item.. Oregon pine did not affect Southland to an appreciable extent. The inactivity of the building trade was largely - due to tightness or the money market. Millers got a profit of Is per 100 ft, which was not sufficient considering the risk run. _ Timber was brought from the Baltic for the same freight as timber was earned from Riverton to Mosgiel.