tion of land values, and we have petitioned the London Board as well to the same effect. This is the reply we received from the Board:— Your letter of the 19th August and the petition which it enclosed has had the careful consideration of my Directors who, before replying to it, have found it desirable to make further inquiries through our representatives on the other side in regard to the whole situation. In addition to this, the lamentable illness of the Chairman of this Company, which, to the profound regret of us all, ended fatally on the 10th inst., has been a further cause of delay. My Board have now before them all the information from the other side which they require, and after full consideration of the whole matter, have instructed me to reply to your letter as follows:- The Directors do not see that any useful purpose would be served by entering into a controversial correspondence, but I may say that they are astonished at the proposals which have been submitted to them. Neither the Government Board appointed to inspect and report on the question of the reclassification of Government land in 1914, nor the Minister of Lands, considered that the prices previously fixed for Crown lands were excessive, but for other reasons altogether it was decided that the reduction in value of land in certain zones should be given effect to, as an act of grace, to their settlers who had experienced adverse seasons. Such an attitude may be a commendable one for adoption by the State, possessing sources of revenue derived from the whole community, and thus able to make good shortage in any particular direction. A company has no such means of making good losses by an assessment of the taxpayer. It is, therefore, wholly unreasonable to ask them to alter existing contracts, and so dispose of their lands below their fair value, because of two exceptionally bad seasons. This would be equivalent to treating an exceptional period as if it represented conditions that are normal. The difficulty is a temporary one, and any remedy should be temporary also. My Directors cannot entertain the proposal to institute a re-valuation of the holdings of the petitioning settlers. They do not accept the view that the lands were at all over-valued; and they are not prepared to set aside the terms of the contracts between the settlers and the Company as suggested in your letter. the injurious effects of bad seasons, and of war conditions, are not restricted to the purchasers of farms. The Company has also suffered heavily. The Directors do, however, recognise, and deeply regret, that great hardship has befallen many of the settlers through the failure of the crops in two successive seasons, a condition of things which could be neither foreseen nor prevented. This calamity is the main source of the embarrassments which are pressing heavily on many of those who have taken up farms of the Company. That my Directors have not been unsympathetic is sufficiently proved by the fact that, for several years, they have not pressed for the payment of either the principal or interest in cases where helpful leniency was justifiable. They have now again considered very carefully the situation, and have had before them full reports from their representatives in Australia. In order to enable those settlers who have this suffered to go forward with confidence, my Directors have given full instructions to their management in Perth as to the concessions they are authorised to make to settlers who need such assistance, and who satisfy them of that fact, and whose misfortune is due to the failure of the seasons and not to negligence. No general concession to settlers en bloc can be entertained; every case will be considered on its own merits. The assistance which, in approved cases, we are willing to give is of temporary character to meet a temporary calamity. We hope and expect that the present season, and future seasons for some time to come, will be so good as to remove all the discouragement resulting from the two abnormally bad seasons that have been so hurtful to agricultural interests in Western Australia. While we hope for this good result from the average of the future years in the Midland area, my Directors desire me to point out that no amount of good seasons will bring good returns to the settler without the unremitting and skilful application of his own exertions. The failure to obtain the services of a medical man has been a cause of great disappointment to us. We settled the terms with the Government, in conjunction with the settlers, and engaged a doctor, who, unfortunately did not remain. Our superintendent of farms has been repeatedly instructed to follow the matter up, but so far, all efforts, owing principally to the war, have failed to secure a medical man. The Company will continue to do all in their power to secure the services of a doctor. From the latest advices, the promise of a good harvest seems practically assured for the current season, and I trust that nothing will happen to alter this. Again expressing the hope that not only this year but each of the coming years will be so favourable as together to remove all difficulties and embarrassments, I am, yours faithfully, A. J. Barber, Secretary.

Our Association consists of 22 members, and the Company is doing all it can to break up the Association. Some of our members have two and three farms each. Here is a letter I have received from Captain Jensen of Coorow, showing that he has been approached by the Perth agent with a view to securing his personal figures. We pay 5½ per cent. interest, and now the Company propose to charge six per cent on deferred payments. The Company charged me £295 16s. 1d. for seeding and harvesting 121 acres. Here are the details of the account rendered me: To cost of seeding 121 acres £189 16s. 10d. To cost of harvesting 121 acres, £45 7s. 6d.; cornsacks, £24 14s. 3d.; cornsacks for re-bagging, £1 17s. 6d.; twine, £2 0s. 6d.; carting, £16 9s. 6d.; insurance, £14 10s.; re-bagging and twining bags, £1. By part proceeds of 659 bags as per Government certificate, £259 12s. 7d.; balance, £36 3s. 6d.; total, £259 16s. 1d. Mr. Jensen's letter reads as follows:-

As soon as you receive my letter please advise me what you think I should do towards