7418. By the CHAIRMAN: Is the condition of your clients at Pintharooka and Morawa satisfactory?—Most satifactory.

7419. To what cause is that attributable?—The firm has been doing business there since 1910. 1911 is the first I went into to any extent. I will leave that report with you.

7420. It shows the early stages of Morawa and Pintharooka. It shows you the people there have progressed. 1912 was a bad season. They did not get things going. They were new chums at the game, although they were all hard workers. 1913 was a little below the average, speaking from memory. 1914 was the disastrous year. The Government came to the rescue. I consulted with my chief and decided I could not supply a single man any further. I then had on my books amongst 40 settlers, a sum of £2,760. I went out to see the conditions and sent a report into the Government, who authorised me to go out immediately, and any man right up against it was to receive bare necessities. That decision saved several of the settlers from going off the land. The Industries Assistance Board started and gave them authority to draw rations to different extents per month. That again kept the farmers on the land and it was not abused in most instances, but they also were allowed to get machinery through the Agricultural Bank and to get extra horses and they got further into the mud, without perhaps being justified in doing so. I consider that the Industries Assistance Board are the trustees of their own assets and of the men's assets. I am a creditor myself. Instead of treating us as they should under the Bankruptcy Act they give men stores and allow them to go for a large amount of unnecessary machinery. There was one instance of a man who had a 1½ bag average and got £150 chaffcutter. He had eight horses. The Industries Assistance Board guaranteed the payment to Wills & Co. This happened in my own case and the farmers to-day have useless machinery because it was only a matter of asking for it and they got it. The Industries Assistance Board have through lack of supervision squandered the assets of these men. The result to-day is that I have to get list after list of statements of dividends paid and in every instance it is "Nil, no surplus." I say this is an injustice not only to the local storekeeper but to the business people generally that lack of supervision meant that every penny was practically wasted. It kept the man on the land but ran him into an enormous amount of debt. Where do we come in who are sitting back all the time; if I threatened legal proceeding it would appear that we had been paid every penny. They owed us £800 and I had great trouble over it but eventually got squared up with. I spent nights and days explaining my account to the Board. They said that if a man got £6 a month he is only to get that £6 a month. I pointed out that farmers came in in some instances 40 miles and spent five to six days in travelling and they should have two months' rations to take out—£12 worth. They pointed out to me that I had given an excess of the amount, but nevertheless the average was right and so I threatened them until they paid up. Everything as regards that is now satisfactory. It is their lack of supervision and I complained of but matter have improved now.

7421-2. Are the settlers of Morawa and Pintharooka improving their positions?—They are bound to now, that is the good ones, but some of do not care. There are some men there who have no right to be on the Board. They are improving their position because they are getting ahead of it. They have inspectors and a general inspector in Geraldton, and they have the supervision that is necessary. That supervision is having good effect, although it has only been going for two or three months. But the proceeds of the crop will still go to the Government. Out of the 40 settlers there, there were one or two who cleared themselves last year but they originally put in a lot of their own capital. There are others through lack of supervision who were enabled to buy things and they are living well now. Some have drawn £14 a month for stores. Their sons go shearing and bring back cheques in their pockets, yet they are still on the Board. There is no attempt made by the Board to see them reduce their expenses.

7423. By Mr. PAYNTER: Although from your point of view the position is better, still they are piling up more debt?—I am in the eight schedule and if the settler could give me 1s. at the end of the year, his position must be improved. All the others have a decent dividend first. If there is 1s. paid in the eighth schedule the position of the settler must be improved considerably. Why should a man on the Board tell me to put in my account which has been owing since 1914? Yet that man is enabled to buy a £33 sulky and he can come to me and say "I want commission out of you for certain business." I said, "The business did not come off, I am not paying you.' He said, "I have £50 to spend on you in law." I said, "Go ahead." In the end I had to pay £20 commission through a technicality. He received the £20 yet he is on the Board. That is one instance of how their position has improved and also of the lack of supervision. If a man could go along without the assistance of the Board, he should not be drawing rations. The idea of establishing the Board was absolutely a good one and it saved the situation, but the administration was so utterly at fault that it would shame a two-penny halfpenny grocer's shop.

7424. Is Sass a good settler?—He may not have the genius for farming but he is not lazy and does not get into debt, so ultimately he should be a good settler.

7425. What about Rodier at Pintharooka?—If he gets it out of his head that he knows all about it and will start to learn he will make a good settler.

7426. What of M. J. Dwyer?—He should never have been on the Board, he has money. He is the man I had to pay the £20 to and he is still on the Board. Apart from that as a settler he is a hard grafter, but his wife did nearly all the clearing.

7427. He seemed to be one of the best settlers out there?—Any why should he be on the Board; he should never have gone on it. In the early days he made a good deal of money contracting for the Government.

7428. By Mr. CLARKSON: We were told that the average out there was nine or 10 bushels?—If that was the average for the first four years it augurs well for the future. They have not had one proper season so far.