H.—24.

8

[j. HENSLEY.

158. Mr. Lei/land.] In fixing the post of production, which you say is from Bs. to Bs. 6d., I take it that that is an average of the whole cost of the log ? —Yes, irrespective of classification. 159. Although you did not mention the fact that you had 40 per cent, less in conversion, that has been allowed for ? —Yes, that is right. 160. Your production is Is. 3d. second class : what is the price of first-class beech ?—First-class beech is Is. less than first-class red-pine, which is Bs. 6d. 161. And yet it costs more to produce ? —They have no sale for the second class, and consequently the loss in conversion must be greater than in rimu. 162. Can you tell us the percentage of first-class heart of rimu fit for joinery, &c. ? —ln Southland here we do not pay any attention to the heart, except in rare cases. We very rarely have an order for heart-wood. We just cut the log up. 163. Do you find a difficulty in supplying heart ? —Yes. 164. Have you allowed for the whole of depreciation in the estimate ?—Yes, we have. We have allowed a sinking fund at the rate of 6d. per hundred for depreciation. 165. I think you would find it difficult to tell the Commission what would be a fair proportion of interest for depreciation in the matter of maintenance, accidents, for felling as distinct from cutting or sawing, &c. You do not keep your books so as to give that information ? —No, we could not give you that. 166. With reference to the importation of timber, do you know the amount of Oregon pine that has been delivered at Dunedin ? —No. 167. Do you know the amount of New Zealand timber sent into Dunedin ? —No, I have no idea. 168. Do you think it is 5 per cent ? —I could not say. 169. Now, there is the tariff: if we adopt the policy of reciprocation shall we not be losers ? —The New Zealand Government imposes a tariff of 2s. per hundred : would it be beneficial to New Zealand to do away with the 2s. duty imposed in order to get federal duty removed from beech ?—I would not like to say that the birch is of such importance as that. 170. In reference to the falling-off in the demand for timber, do you not think that this is chiefly due' to the falling-off of our exports, and not to the importation of timber ? —I would not like to say that. It is due, I think, to half a dozen causes. 171. Bearing in mind that the importation of timber is less than 5 per cent, of our output, how do you think it affects the millers ?—Speaking personally, it does affect them. 172. It cannot affect them more than proportionately ? —Yes, that is so. 173. Do you not think it is a small factor ?—Yes. 174. So you think it is infinitesimal as a factor in producing the present falling-off ? —I am not prepared to say, as I have not made a study of Oregon. It does not seriously affect us in Southland. 175. Will you tell the. members of the Commission what you wore offered Oregon pine at ?— 1 think it was 7s. 9d. f.o.b. Dunedin. 176. Suppose you had a yard in Dunedin, it would have to be taken to your yard ? —Yes. 177. The first cost would be wharfage ?—Yes ; which is 6d., I think. 178. That brings it up to Bs. 3d. Then there is 2s. duty, together will) the cartage and stacking, which would cost another Is. or Is. 6d., bringing the total up to 11s. 9d. ? —Yes. We sell red-pine in Dunedin at 11s. 4d., less 1\ per cent. 179. It is not quite correct then that you had it offered at less than you were prepared to supply rimu in Dunedin ? —ln Oregon there are big widths. 180. Coming to the butter-box question, do you think the importation of Oregon has had any affect on that ? —I could not say, because there is no analogy between the two timbers. 181. You stated that the capital of your company was £5,000, and the cost of one of your mills was £3,000 ; consequently the item of interest is an important point ?—Yes, that is so. 182. Therefore, although your output has fallen off, the item of interest is continual ? —Yes. 183. You say you paid a dividend ?—No, I did not say so. We reserved our dividends. 184. Would it be criminal to pay a dividend ?—No ; it would delight their hearts. 185. Mr. Clarke.] I should like to ask you with regard to your orders : do they come mainly from timber-merchants or from builders ? —Both. 186. Do you charge exactly the same price to builders as you do to timber-merchants ? —No ; there is a considerably bigger discount given to them. 187. Then, supposing your customer, who is a builder, is sound in finance, does he pay more than the timber-merchant ? —Yes. 388. With regard to the item of decreased freight, you thought the customer got the benefit of that ?— Yes. 189. Has the retail price been reduced to the general public ?—No ; prices are the same. 190. In what way then does the consumer get the benefit ?—The freight three months ago was ss. ; probably it would be 6d. or 4d. less now. 191. Is that 4d. taken off the retail price ? —No. 192. Then it is simply the middleman who gets it ?—No ; the customer at the other end gets it. 193. Roughly, could you give the Commission any idea how much per hundred the cost of machining and moulding runs into % —I should think it would run from 9d. to Is., ordinary dressing, per hundred feet. 194. Can you supply long lengths of timber for such purposes as beams, &c, at short notice ?— What would you call " long lengths " ? 195. Anything up to 30 ft. ?—Yes, we can supply them. 196. Mr. Morris] You mentioned that the cost of logging is from Is. 6d. to 2s. ? —Yes. 197. Does that cover the total cost of putting logs into the mill ? —Yes, but not tramways.