104 TIMBER-PRICES. 
For Kauri, however, figures are available, and we may compare this 
with the timber in the best revenue-producing forests In Kurope—the 
Spruce of Saxony. Saxony timber (market royalty), as will be seen 
in detail under ‘‘ Policy,’’ averages 4s. 2d. per 100 sup. ft. We may 
safely take double this as the after-war open-market value of Kauri 
timber in an accessible well-roaded forest, and this is the class of forest 
that has to be taken for comparison (see my ‘* Journal of a Forest Tour ”’: 
Miller, Cape Town). 
KAURL ROYALTY—PAST AND FUTURE, 
The rise in the value of Kauri royalty or stumpage plays such an 
important part in these estimates that it is necessary to consider it in 
some detail. Originally, as mentioned in the history of the Puhipuhi 
Forest (p. 64), the Kauri royalty was arbitrary, and bore no relation 
to the true value which would be represented by the market value of 
sawn Kauri timber, less costs of logging, sawing, and delivery. 
Royalties in India are framed on the difference between working- 
costs and market prices, with the double check afforded by forest working 
being both Government and contract. This is the only sound principle to 
follow, and should be adopted in New Zealand in place of the nominal 
rates now in force, especially south of Auckland, as the result of political 
pressure and improvident destructive working in the past. 
The present royalty on Teak in Burmah is 6s. 8d. per 100 board feet 
—9'6d. (say, 94d.) per cubic foot. Teak in India is what Kauri is in 
New Zealand. Labour in India is about one-twentieth the cost of labour 
in New Zealand, and it might be argued that with labour so low they 
could afford to pay higher royalties. But the fact is that with the cheap 
Indian labour all other commodities (except imported articles) are also 
very low-priced: so that as prices go in the country the 94d. rovalty on 
Teak is high compared to royalty on Kauri in New Zealand. 
Kaurt—Oup Royatry. 
Forty years ago, when Dargaville was built, Kauri timber was mostly 
used, and the sawn timber cost 6s. per 100 sup. ft.—a price that is now 
less than the open-market royalty. There was not much left for the forest 
out of that! Those were days when Kauri forest, one of the most valuable 
forests in the world, was destroyed for a few pence, ready money, per tree. 
In 1896 the settlers’ ordinary payment for Kauri, either on their 
own or other land, was 4d. per 100 sup. ft. When Ranger Maxwell went 
to value the Kaihu Railway Company’s Kauri his figures were worked out 
on a basis of 4d. per 100 sup. ft. (under $d. per c. ft.). 
It is true that the Government rovalty rate was Is. or ls. 3d. per 
100 sup. ft. Thus in Kirk’s time, twenty-eight years ago, it was 1s. 3d. 
per 100 sup. ft. = 18d. (say, 12d.) per c. ft. But pavment in those 
days was on mill output: thus the actual royalty on logs in the forest 
might not be half this. In practice even these rates were often lower, 
because only a little time was required for a good Kauri forest to become 
a burnt one, with special low rates for the burnt timber ! 
Kavrt VALUE DovupLep Ix FIFTEEN YEARS. 
During the last twenty years there has been a steady rise in the value 
a Kauri royalty or stumpage; and in recent years, when the end of 
he old stock of timber came clearly in sight, a rapid rise. Kauri prices 
