28 



and the timber were marketed, by the direct agency of the Forest Depart- 

 ment. It would bring that Department into closer touch with market condi- 

 tions and would enable it to take a more active part in bringing to notice 

 and finding uses for the less well-known timbers of the Colony, and in 

 developing an export trade in surplus timber : it would almost certainly prove 

 more profitable to Government than most of the concessions now in force. I 

 am not, however, prepared to recommend that this work should at present be 

 undertaken by the Forest Department, partly because it would involve large 

 capital and recurring expenditure which can hardly be justified in the 

 existing state of the Colony's finances, and partly because the energies of the 

 Department will be fully taken up for some time to come in placing the 

 management of the forests ton a sounder footing. It is true that forest 

 exploitation could be entrusted to a special staff, but this would not relieve 

 the senior officers of the Department from considerable extra responsibility and 

 work at a time when other more pressing work remains to be carried out. 



Provided Government makes a reasonable profit on its forests, and so long 

 as their exploitation by private enterprise is carried out efficiently and timber 

 is placed on the market in a proper condition, at a reasonable price, and with 

 due regard to the development of trade in new timbers, then there is no par- 

 ticular reason why the Forest Department should take a direct share in 

 exploitation work where this would involve undue competition with private 

 enterprise. These desirable conditions, however, are at present not so much 

 in evidence as they might be, and it may yet be necessary for Government to 

 protect its own interests and those of the community in general by under- 

 taking the exploitation of a certain proportion of its forests. In this case the 

 necessary capital could be provided most suitably by means of a loan. 



29. DEFECTIVE EXPLOITATION. There are at present in force between 

 30 and 40 timber concessions, held under leases, licences or otherwise. Timber 

 conversion is carried out almost entirely at saw mills, most of which are 

 situated in or near the forests. I have had an opportunity of inspecting the 

 lumbering work done and visiting the sawmills operated by several of the 

 concerns in question. In a few instances the work in all branches was being 

 carried out as efficiently and economically as circumstances permitted, wast- 

 age in logging as well as in conversion being reduced to a minimum and run- 

 .ning expenses being kept at a reasonably low figure. In certain cases, 

 however, the work left much to be desired, the wastage in logging being 

 nothing short of culpable, and little attempt being made to economize by intel- 

 ligent conversion in the sawmill. Allowance should, no doubt, be made for 

 the fact that in some instances the work is not yet properly organized, the 

 country is sometimes difficult, labour is by no means skilled, and in the case 

 of cedar particularly, there is often much unsoundness to reckon with during 

 conversion. Nevertheless, after making all allowances there should be no 

 excuse for leaving large quantities of utilizable timber lying in the forest, as 

 has been done in some cases. It may be argued that as the trees are paid for 

 standing the purchaser and not Government is the loser. There can, how- 

 ever, be no excuse for wasting the natural resources of the Colony, while in 

 any case Government will be an ultimate gainer by increased production, 

 which means a lowering of the working costs, cheaper prices for timber, and 

 a healthier commercial outlook. As a proof that such waste is inadmissible, 

 it may be mentioned that one small but efficient concern recoups all its forest 

 expenditure as well as the running expenses of its break-down mill from the 

 utilization of outer flitches and branch-wood alone, products which in many 

 cases are wasted. 



But, perhaps, the most glaring cases of defective exploitation are to be 

 seen in the manner in which timber is too often handled after conversion. Xo 

 timber can acquire or maintain a good reputation if placed on the market in 

 an unseasoned or otherwise defective condition, and it is largely on this 



