article, however, costs 50s. for a 5-gal. can, and Wildridge and Sinclair, in the Eastern States, quote 38s. 6d. for the same article. it is a pity that the local manufacturers cannot make them cheaper and better. In connection with the price of butter, the maximum price of the local article, as compared with the imported , is 1s. 7d., against the Eastern States at 1s. 8d. This is for first grade butter. Boans' consider that our first grade butter is as good as the imported article and it was selling at 1d. per lb. cheaper than the imported. The cost of production, however, is greater in this country than in the Eastern States. We are really working the factory on the over-run. Our costs are less in the summer time than in the winter, but, unfortunately, I cannot give you definite figures now. The over-run is 16 per cent. and the costs vary. I will obtain details for you. It is unfortunate that there is no hope of farmers here getting a bonus such as was given to dairy farmers in the Eastern States. As this cannot be done, I consider that the freight on the cream should be free. The empties are free on the return journey, but to encourage the industry I consider the cream should be carried by the railway free of charge. During the time that I have been at the factory a good many of the settlers have asked me whether the Agricultural Department or the Agricultural Bank would supply cows to approved settlers, in the same manner as they supplied horses and machinery to farmers in the wheat belt. Another point : I maintain that there are a good number of cows being milked which are not paying, and I would recommend that testing be undertaken. I have no time myself to undertake this, or I should be only too please to do it. My idea is to weed out the unprofitable cows, and in this manner the farmer could see the breeds that are most profitable and the foods most suitable for feeding to their stock. I consider that an expert should be appointed to visit the farmers on their own holdings and endeavour to save them from the many mistakes that are now interfering with their progress. I suppose I have visited 2,000 farmers in the past two years, and I find that the majority of the dairy farmers in this district are very ignorant of up-to-date methods of dairying. I should like to point out that there are big areas of land lying idle. These estates I think should be repurchased by the Government and cut up into small holdings where a man could keep, say, four or five cows. For instance, such properties as those of Mr Gale, and Messers. Locke and Newton, all of whom have areas that should be under intense culture. a lot of this land is quite near town. I would also recommend that where a supply of fresh milk is possible a cheese factory should be started. The farmer is getting 1s. 5d. for his butter fat ; this is worth from 71/8d. to 8d. per gallon for his milk. By turning this into cheese instead of butter I could give him up to 1s. per gallon for his milk. The plant for soft cheese-making would cost very little. I have advocated this to the department. Messers. Boan Bros. have advised me that they will take any quantity of soft cheese. There is one man at Gosnells who is making it, and Boans' take all he can produce. It takes anything from three days to three months to make soft cheese. You require , of course, pure sweet milk, and it would need to be produced near the factory. We are turning out just under two tons of butter per week. The weekly average output for the year would be about 2½ tons. In October and November we were doing 3½ tons. I consider that the new factory in the height of the season next year will do five tons per week. I have explained that the conditions under which we are now working are very bad, and expensive. We are employing four men now, including myself. I consider the new factory can be run with three men. The new place was estimated to cost £2,000, but I consider that it will cost £2,500 before it is finished. The churn they have supplied is too small for my use, and it is not what I ordered. I do not believe in pasteurising cream for butter. We only make one grade of butter at the factory, although I propose making two grades. Farmers will be paid according to the grade of cream they supply.

11122. By the CHAIRMAN: What percentage of the factory output do you consider will be first grade?—Judging by the quality of the cream that has been sent in until the last few weeks I consider that we should be able to produce, with a better train service, 80 per cent. of first grade butter. Our biggest supplies now come from Capel. I should say about 60 per cent. is received from this source. The local supplies equal about 10 to 15 per cent. The cream which arrives in the worst condition is that from the Preston line. As soon as the Margaret River railway is opened this will be a good centre for receiving cream,

11123. By Mr PAYNTER: Do you find the farmers respond to the advice given them?—Farmers are anxious to get advice, and are taking a lot of notice of any information supplied to them.

1124. You are, I presume, a practical man?—I learnt my business in England. Here are my testimonials (produced).

11125. By the CHAIRMAN: Are the number of suppliers increasing?—Yes. When I took the factory over from Macfarlane there were 75 suppliers: now there are 165.

(The witness retired.)

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