manufacture of ice for sale, as much as 15 tons having been manufactured in one day. Pasteurisers, manufactured by Bell & Co., are in use. The milk is pumped to the second storey, where it is heated in the pasteurisers up to 140 degrees. One Simplex churn has been installed, which is used for large lots, and a small hand churn is in use for smaller quantities. It was noticed that the milk cans being used by supplies were imported from the Eastern States. The factory manufactures two grades of butter. The best grade is sold as "Bunbury" butter and the second grade as "Koombana." The buildings are situated on half an acre of land, with space adjoining for possible expansion. The factory abuts upon the railway, the railway platform being alongside the factory. The factory recommenced working in August of last year. The bulk of the butter is sent to Watson & Co., of Perth, when the output was large, but there was only sufficient at the time of the Commissions' visit for local demands. The output declines very considerably towards the end of the summer. The factory pays on the butter fat basis. One hundred pounds of butter fat will make like 115lbs. of butter. The factory is paying at the present time 1s. 6½d. per pound of butter fat. Each sample of cream is tested. Very little first-grade butter is made.

HARRY ST. BARBE MORE. Inspector of Agricultural Bank and Lands Department, Bunbury, sworn and examined:

11014. To the CHAIRMAN: I have been for four years in the Bunbury district. Before then I was for 9 1/2 years on the wheat belt.

11015. What opinion have you formed since you have been here as to the class of settler in the South-West?—My district is such a varied one. It is half the size of Ireland. It extends from Perth to the South coast and to the other side of Marradong, and nearly to the Williams. Taking it all round, the settlers are not a very experienced lot, but they are a good type. There are good and bad amongst the old settlers and amongst the new ones also. As a whole, they are good, but they are often working under very trying conditions.

11016. How do you think they are progressing?—They are not progressing well except in favoured places such as the Blackwood, between Nannup and Balingup, the Preston and Ferguson Valleys, Thomson's Brook, St. John's Brook, and the Upper Capel, where good natural feed follows ringbarking, also on the Stirling Estate, and in other well-grassed neighbourhoods, and localities noted for good swamps. I attribute this lack of success not so much to the settlers, as to the want of sufficient directing help and organisation by Government departments. I go to a lot of places where I find that Agricultural Bank money has enabled a considerable amount of developmental work to be done, especially where the land is only suitable for winter cultivation, and the settlers have no idea what to do in order to get returns. There should be much more production in proportion to the expenditure. The settlers' efforts require supplementing by departmental instruction and aid. The Margaret country is handicapped in a particular way. Most of the settlers there are ready to start dairying, but cannot get their cream to the Busselton factory. Mrs. Terry and Mr. McLeod were both making about 60lbs. of butter a week each last winter, but had to stop when that hot season set in and the Keenans, Miss Bussell, and others were milking larger herds than were justified by the encouragement they were getting. Others are still awaiting transport, and have to go out and work instead of remaining on their selections. Many are Agricultural Bank clients.

11017. Would it not be possible to give them a motor service?—I wrote to Mr. Paterson suggesting this a few weeks ago. I proposed that a motor vehicle should be supplied to run between Busselton and Augusta and pick up cream cans and carry other produce and goods. At present a settler's daughter, Miss Smith, is collecting the cans from only a little south of Yallingup, via Quindalup and Newtown, into Busselton. The distance extends to 27 miles from Busselton. People take their cans to depots and Miss Smith picks them up, starting at about 14 miles from Busselton. I believe the charge is 2s per can, of which the Government pays 6d. per can. Six weeks ago 30 cans were going to Busselton by this means weekly. The Minister turned the project down. I think that there would be very little loss on it.

11018. Are the settlers down here heavily in debt?—The average indebtedness down here is very small compared with the similar early period on the wheat belt. Before the war commenced the settlers had the timber industry to fall back on, and that assisted settlement tremendously. When I came here first I was struck by the fact that when I wanted the occupation certificate or lease to get measurements from, it was originally forthcoming, whereas on the wheat belt it was almost invariably in the bank's hands. Down here the settlers can grow more of their food.

11019. What has been the Agricultural Bank's lending policy down here?—The bank holds some very poor securities.

11020. Why did the bank appoint an inspector in this district?—Up to 1907 the inspecting staff was attached to the Lands Department and did all the work for the Lands Department and Agricultural Bank. In March, 1907, because the manager of the bank was dissatisfied with some of the inspectors or the system, he was authorised, I suppose by Mr. Mitchell who then came into power, to put on his own men under the temporary clause of the Public Service Act, the staff inspectors remaining under the Lands Department. The combined inspectors numbered 31, and on the 30th October 1915, they were reduced to 15 (there may be more now), and with those 15 the old arrangement was reverted to except that we are now attached to the Agricultural Bank.

11021. Which do you consider the best districts in the territory you traverse?—The granite country is the easiest to make a start on because it yields such good pasturage after ringbarking. But one summer a man took £600 off six acres of swamp. I should not like to specify any particular districts. My idea of the opening up of the South-West is, with a few reservations such as the ranges, that it should be dealt with in blocks so that settlement would be kept compact, and railway, medical, postal, and other facilities could be provided better than is the case now. The large timber concessions and reserves would modify that method, but there is no reason why settlement should be so scattered as it is. The soils of the jarrah, blackbutt, and red gum lands, when first cleared, have certain toxic