Abstract: A veneer lathe for peeling a log has a knife carriage and a mechanism for moving the carriage towards and away from the log. There is an electric motor for moving the carriage towards the log at a rate of speed related to the rotational speed of the log so as to peel a required thickness of veneer and a clutch for coupling the electric motor to the mechanism or disengaging the electric motor from the mechanism. A hydraulic motor is connected to the mechanism for rapidly advancing the carriage towards the log or retracting the carriage from the log. A by-pass valve permits free rotation of the hydraulic motor when the clutch is engaged.