10679. By Mr. PAYNTER: Can you give us any idea of the returns of your orchard?—Over a period of give years my orchard of nine acres would average from 1,000 to 1,200 cases. We can produce a case of fruit, delivered at the siding, including all costs, but without any profit at 3s. Added to this there are the railway freights, commissions on sales, etc., etc. It would pay us to produce fruit at £8 per ton for jam making, but I suggest canning and drying for this district.

10680. What is your opinion of the use of second hand cases?—I do not agree with their use. I consider new cases should be used. When the pine cases were imported we could buy them at 5s. a dozen at Donnybrook.

10681. What price would you expect to get for fruit for canning?—One penny per lb. for canning fruit would pay us; even with the competition from the Eastern States I believe it would pay at that price. If this is not so, those with mixed orchards will have to go out of it.

(The witness retired.)

HENRY LYON, Farmer, Thompson's Brook, sworn and examined:

10682. To the CHAIRMAN: I have been 20 years on the land in this district. I have 530 acres. 160 acres of which is a homestead block and the balance C.P. It is six miles from the siding, all fenced, 90 acres cleared, all of which has been under the plough. I have two acres of orchard, the necessary plant for working my land, five horses, 10 head of cattle, about 200 sheep and give pigs. I started with about £120 capital. Since I borrowed £150 from the Agricultural Bank, but have paid back all but £80 of it.

10683. To Mr. VENN: I go in for dairying which I am able to carry on practically all the year round. This pays as well as anything on the farm. I employed labour one year, but it was not a success and I have done the work myself since. I generally milk about six cows and send most of the cream to the factory. In regard to sheep I find that the cross breds or come-back merinoes do best. Fat lambs about March fetched in the open market £1 last year, although for a better lamb this year I only got £12s. 10d. I grow a few potatoes but not commercially.

10684. Are there any difficulties you are labouring under this district which you think the Government might be able to alleviate?—The greatest difficulty we are faced with is in obtaining a suitable class of labour for clearing. The cost of clearing in the green state was £13 10s. per acre, when I first went out on my land. Last year it cost me £3 17s. 6d., leaving one tree to the acre. This is on the hilly country—red gum and black boy. I think the natural grasses are improving but it is on the ploughed country that stock thrive. The high cost of clearing is a bar to progress and development. I clear with explosives. Clearers will only take small contracts, say five or six acres. The biggest contract here was for 28 acres. Sleeper-cutting is so attractive that men will not take on clearing.

10685. To the CHAIRMAN: I can pay my way alright from the proceeds of the land. Sickness, however, in my family has put me back.

10686. To Mr. VENN: The small farmers seem to be doing well here. There are no properties changing hands. The general complaint is that there is no prospect of getting more clearing done.

10687. Have you anything to say in regard to the fruit factory which was established in Donnybrook?—Yes, I was a shareholder. The trouble was that management was faulty. They took in inferior stuff and made a poor class article. There is no doubt the management was the trouble. The work was not understood. Some of the plant is still here and some has been taken away. The Government took it over on account of advances made. The building is let to a co-operative company. they intend using it as a bulk store.

(The witness retired.)

AUGUSTUS SHARPE, Orchardist, Donnybrook, sworn and examined:

10688. To the CHAIRMAN: I have been settled for 18 years on the land in this district. I hold 27 acres. This is freehold, two miles from the railway station; 24 acres have been under the plough; 20 acres is under fruit of mixed variety. I have all the necessary plant, a good home and buildings, two working horses and two cows. I started with £300 capital. I have had to borrow from the Agricultural Bank £500 and still owe £350. I am satisfied with my prospects and can make a living on my own holding.

10689. You were interested in the Donnybrook fruit preserving company. Can you tell us something about its failure?—I was Secretary of this Company. There were several managers. We started out with the intention of canning and drying only. The year we started was a bad one for soft fruits, and we could only get material suitable for jam making. We had to take what was offering, and unfortunately, the supplies were not even suitable for jam. We returned it in many instances to the growers. Orchardists have not been educated up to the class of fruit required for preserving. We learned in the course of our work that if we had confined our efforts to canning and drying we should have made a success of it. It is impossible to compete with firms like Jones & Co. in the matter of jams. We cannot for instance get the varieties of fruit. We have, however, varieties suitable for canning. The two main varieties are peaches and pears. They are grown here in fairly large quantities. Another reason is that there is not so much sugar required in canning. I consider if we had a ready market at less than 1d. a lb. it would be a profitable undertaking. The matter of £2 or £3 in the price of fruit for canning does not play a big part in the canning industry. I was in touch with the late manager for Swallow & Ariell, in Mildura, and he informed me that the actual price paid for fruit for canning did not play a big part in the matter. This gentleman advised me some years ago that they gave as hig has £12 for Bartlett pears and turned them out at a profit, and then had the handicap