be done in these works, provided they were properly equipped and capitalised. There is nothing in the implement to cost the money [, and they could be very greatly reduced in cost as against what we are doing now.

10300. would you find any difficulty in the way of patents in making machinery equal to that of other firms?—I do not think so .As a matter of fact, many ideas which are embodied in farming machinery are said to be patents and the patents. Application is made for a patent, and the patent right is issued, But as a matter of fact they are not patents, and the holders thereof could not substantiate their claim, and consequently they could be over-ridden. I know it is commonly done. I think there would be difficulty in, let us say , a header where we have to use a knife, as I think most forms of motion, reciprocating, semi-reciprocating or rotary are pretty well covered but as far as a harvester is concerned, or a plough, there is nothing in the way.

10301. Prior to the present abnormal times were you finding your order increasing, were new clients coming along?—I was not there pre war, but certainly for the first 12 months of my administration orders very largely increased .the correct figures could be obtain from the official returns.

10302. What do you consider are the most important objects likely to be obtained by the State manufacture of machinery?—The keeping down of any exploitation of the farmers. At the present time probably if we were not there as a check, prices would rise. Again, I believe that in properly looking after that business the State is likely to give the farmer a better deal than he could get from private enterprise. The machines will be well and faithfully built, and any legitimate claims will be sympathetically received and put right. Last but not the least, there is the fact that under State manufacture the machines are made locally, which is a very big benefit directly and indirectly.

10303 .Have you any undue amount of bad debts in connection with the concern?—I cannot say exactly what the amount is , but I do not think it is very heavy. Disputed accounts are referred to me for technical advice; they are very few.

10304. Since taking control of the department have you suffered in any way from political interference?—There has been no political interference either attempted or actual.

10305. Given a complete plant, would you be in a position to carry on all classes of work that might be required of you?—We are rather a complex proposition: we are general engineers and agricultural engineers, and with a proper plant we could meet all demands from both branches.

10306. And that would put in a favourable position to make the works a payable proposition?—Certainly. I have fostered the general engineering side of the business because I realised that it would help me with the financial load I have to carry; that is by getting some of those bigger jobs in general engineering, especially when I was tendering, for knew what I was doing in every case .General engineering has helped us considerably, because in this case I tender with the conditions existing at the moment I tender but with agricultural implements alone it is different, and we may at any moment be filched a bit by having to pay a higher price, and it is not possible half-way through a season to keep on varying prices. Consequently while we cannot make provision in anticipation of an abnormal rise in material, sometimes we get pretty near the mark .As an indication, material which in normal times would cost us 10s or 11s. per cwt.is now costing 33s.; plates which would cost £9 10s or £10 10s. in normal times have been quoted me at £66; galvanised iron, of which we use a lot, and of which I have some in stock at 24s 6d.,was last quoted to me at £98. So it will be seen that if we were to put up the machines pro rata with the price material it would be prohibitive.

10307. I suppose one of the results that would accrue from a general use of state-made machinery is that it would go a long way towards standardisation? -It would be a big factor. There would be no hybrids. There would be one standard right through and parts would be interchangeable for the same machines all over the state.

10308. From your experience are you prepared to say that given a fair chance the Implement Works could be made profitable?—Given proper capitalisation and proper machines that place could be made to pay all over-head charges, interest and depreciation, and on top of that a profit of an ordinary commercial establishment on all machines produced.

10309. By Mr. PAYNTER: Would it be a good policy on the part of the Government to offer bonuses for the improvements of harvesting machinery, for new improvements or inventions furnished from outside the Works?—It would require to be guardedly done. I believe anybody who has any suggestions of value to make should receive some monetary consideration. It would encourage men to put forward their ideas. The wholesale offering of rewards or bonuses would require one department to cope with the suggestions. When I first went down to the works I was inundated with all sorts of ideas, which took up so much of my time, and many were of no value, so that if you offered a reward or a bonus you would have everybody in it. But if a man comes along with a sound proposition, and the Government or their representative think it a fair thing, the man should be paid. If I was remaining there one of the things I had in mind is that I would offer monetary consideration to the men in the works for improvements to be paid for either by small rewards or sums of money. That is a system that is in vogue in many of the big working houses in America with the greatest benefit. In works such as we have there is a large amount of latent talent, and it only requires some consideration to get the men to come out with their suggestions and understand there are many of value.

10310. You naturally welcome suggestions likely to prove of value?—I welcome suggestions of any class. I have always asked for any suggestions whatever to be sent forward. But when you are dealing with some the men who make suggestions things are not pleasant, because you do not always see eye to eye with the men.

10311-12. By Mr. VENN: how much capital and accumulated loss would need to be written off to give you a fair start?—If I was deputed to build a works to the same amount of work I am doing now and employing the same number of men, say 300, I estimate that it would require £40,000 to put up sufficient buildings and the necessary plant; therefore, my product would be loaded with the interest.