production of milk, cream, and butter in the South-West exhibits a gratifying increase. We express the opinion here that it is to dairying that the country must look for its real future. With a world's market available for butter and beef, the possibilities are only limited by the ability of growers to produce profitably on an export basis. As with fruit, the principal assistance that the State can give is fast railway transport of cream, and cool storage at ports. But in dairying, the adoption of the Commission's previous recommendations for the subsidised purchased of female stock, the leasing of bulls, and the testing of dairy herds, is also eminently desireable. The State has already subsidised the Bunbury factory, and erected factories at Busselton and Denmark. There can handle the probably output for years to come. The main obstacles to dairying are the absence of regular summer rains, the profitableness of sheep, the high cost of clearing and developing the land, and the milking of the cows, for which necessary labour is almost unprocurable.

Incidental to dairying, the production of bacon, cheese, and allied products will all greatly extend as the parent industry expands.

The City Milk Trade.—Between Armadale and Brunswick is a district capable of supplying large quantities of milk for Perth, the supply of this milk is being wholly a matter of transport. When the railways can devise a fast service which will land that milk in Perth before 8.30 p.m. at night and 9 a.m. in the morning—returning the empties promptly—the settlers will lay themselves out to send as much fresh milk to Perth as that market will take, for every sufficient reason that the price of fresh milk is better than its equivalent value as cream for the butter factory. We have no suggestion as to what the train service itself should be, nor if it is possible; all we are pointing out is that the trade, given quick transport is there, and that, if encouraged, the freight to the railways will increase as a matter of mathematical certainty, while the development of a large pure milk trade to grower and consumer will alike beneficial.

Sheep and Wool.—Wherever established, the growers are doing well, and need no assistance beyond protection from vermin.

General.—Having reviewed the principal industries, we should add that, for the immediate future, the question of markets must be the all-important factor governing the operation of the South-West landowners. The growth of export apples, we are told by every authority, is a thoroughly sound proposition to those who can wait for the return of normal shipping conditions. We see no such certainty, but only a probability, of an export future for citrus production, and less for potatoes and onions. Dairying, on the other hand, has a large and profitable local market, backed up by a certain export demand for butter and beef at prices which will pay local growers when they are established. It is to dairying, the growth of sheep and wool, and to export apples, that the future appears to point. Ahead of these industries there is a room for a very large population to find scope for its energies.

MARKETING AND TRANSPORT FACILITIES.

Central Markets for Perishable Produce.—We can only deplore the fact that the State is unable to deal with this all-important matter. It is simply impossible for any country to progress in the absence of proper trading facilities, and the State occupies an enviable position in that, in this respect, it is in a worse position than any other Australian State. Pending the erection of markets, the trade considers that only by supplying a separate Perishables Shed in the Perth Railway Yards for the handling of perishables alone, can the gluts in the soft fruit season, which must again occur, be handled without ruinous losses to growers. The trade also consider that the install of rollers, both at Perth and Fremantle Goods Sheds. are necessities for the expeditious handling of fruit from truck to lorry.

Railway Transport.—This is an intricate subject on which we can only lay down general suggestions by which the railways can encourage and build up the vital industries. They are—

(1.) Three fast trains weekly, Bridgetown to Perth, during the fruit season, with which branch services can connect. All fruit should be conveyed in louvred vans. All fruit to arrive in Perth at midnight and to be delivered by night staffs to reach the selling market by 7.0 a.m.

(2.) One fast train weekly, Bridgetown to Perth and Midland Junction, to deliver stock to the selling agents before 5 a.m.

(3.) Provision by which a full truck of fruit from one consignor to one consignee can be delivered off truck and not ex shed to the consignee.

(4.) Delivery at Perth and Fremantle of perishables conveyed for railway convenience by passenger trains to approved ledge accounts, without the necessity of first obtaining a "goods" order.

(5.) Cream to be carried at gallon rates throughout. The effect of the present system is that the farmer must hold his cream till he accumulates a quantity, which must infallibly arrive in poor condition, capable only of producing inferior grade butter. The economic loss to the State is out of all proportion to any loss which the railways may directly sustain by the suggested alteration, and your Commissioners feel assured that it would have the effect of encouraging the infant beginning of dairying to the future profit of both the railways and the individual.

(6.) More loading stations in the Albany district—not necessarily sidings—to pick up fruit and vegetables, which it is more or less impossible to carry over the very heavy sand tracks in that district—the worst we encountered in the whole of our travels.

(7.) Faster transport of perishables—Albany to Kalgoorlie.