the sties . I have to purchase wheat and pollard for their keep. Of course I also feed with the butter milk from the factory. I have several breeds, the object being to see what particular breed suits the district. This has not yet been determined . I run jersey cattle with a Guernsey bull. Three tears a go they had a mixed lot of cows here. Altogether we have four bulls , two on the farm and two are let out to settlers. A fee of 2s. 6d. is charged and the same fee for the boars. When I came here I was loaded up with pigs. In the six or seven months I have had 120 pigs landed on me from the BRUNSWICK State Farm without notice. About 12 months ago I had 80 or 90 sent me by the department and unfortunately I was not able to make any provision for them.

11559. What do you pay farmers for their cream ? — I am paying 1s. 5d. for butter fat. We have paid 1s. 7d. We are making 1,200 lbs. of butter per week, but the last nine weeks we are getting about 900lbs. I cannot give you any fuller details at present as the books are in perth , where they were required by the accountant in regard to the operations of the factory.

11560. Is the butter factory paying ? — Yes, on an average of 900lbs. of butter manufactured per week. I must say , how ever , we are working under great difficulties. The factory is run by novices and the farm men have to come in and do the butter making between other work twice a week. The wages, of course , under this system are charged to the farm in the same manner as the wages for the general farming operations.

11561. Bacon curing is suspended , I Understand during the summer months ? — yes. We resume bacon curing on the 3rd April next. We closed down in the middle of December.

11562. Do you undertake both operations? — yes, I handle both the bacon and the butter making.

11563. What class of bacon do you make ? — the class of bacon turned out is very good. Both Messrs Foy & Gibson and Boan Bros. will take all I can make. I have been sending them from 20 to 30 sides at a time. The quality is good but I must say the condition of the pigs varies very considerably. I can make a high quality bacon from pigs that are not topped off with grain. It is now under consideration as to whether we shall buy pigs and get them in condition for bacon. Settlers believe that pigs are often ready for treatment whereas when they arrive they are not much class. I consider that settlers are beginning to become educated in this direction , however. They were inclined to treat the factory as a hospital and when they had a pig they did not like the look of they sent it to me to convert into bacon. A refrigerating plant is not all that is required for the proper equipment of the factory. The situation is bad for a bacon factory. Last year we had six feet of rain. The atmosphere is therefore bad. the boiler capacity is insufficient and the whole plant would have to be remodeled. It appears to me that a better mode of procedure would be to have a central factory in Albany. Here we have to resort to an artificial method of drying. The river is salt and we have not a sufficient supply of suitable water.I understand the factory was only erected tentatively and that once it had been demonstrated that settlers could grow pigs here , the actual curing was to have been done in Albany. Cases arise where I am implored to take pigs for monetary reasons on the part of the settlers. We take them and do the best that we can with them. I am paying settlers 6d. dressed weight and getting 11d a pound for it cured. I was paying 7d. when Katanning was only paying 4½d. On the butter fat also I was paying 1½d. more than the landed cost of Victorian butter. (Witness retired)

FRANK BAYLEY , on behalf of Bayley Bros.,Farmers, Denmark.

11564.To the CHAIRMAN : I have been six years on the land in this district. I came from England. I was a postal clerk there. We have 160 acres. The Government charged us £ 8 for the suburban block. It was originally £ 160 and then was reduced to £ 120. The rest of the land , 142 acres, is a free homestead block. The suburban block is within a mile of the railway and the other block three miles from the railway station. We have 16 acres cleared. the suburban block is fenced. We have a house of four rooms. I am a single man. We have 13 cattle , one horse and eight pigs and three acres of orchard. We started without any capital and have borrowed from the Agricultural bank £175. We have no other liabilities. Our living is made from dairying mainly. We also go out and work. At present we make about 30s. a week from the farm. We are satisfied that if a better market is found for our produce, and with more clearing , that we can make a living. The agricultural bank will advance for partial clearing I understand , and this is what they will have to do. We cannot make it pay by clearing right out. We want a traction engine for tree pulling here to assist us.

11565. To Mr VENN: Some of our homestead land is good country. Forty to fifty acres is no good but the rest is worth cultivating. I consider this a very good dairying distrcit. Cows milk well provided we can get sufficient area here. We can grow grasses, maize, lucerne, etc. We intend to put up a silo as in the spring we cannot use all the feed and later on there is a shortage of natural fodder. From January to February we are often short of green feed , and in the cold winters the feed does not come well.

11566. By the CHAIRMAN : Are there any special matters that you wish to bring before the Commission ? — We are breeding pigs but dare not go in for breeding any large quantities as the factory cannot take our pork. the Albany market is a very poor one for pigs. There is only a limited demand and they give us whatever they like in the matter of price and not what the pigs are worth.

11567. To Mr VENN: The cattle in this district do not suffer from rickets. There are no diseases in the stock here that i am aware of.

(The witness retired)

JOHN BARRIE, Farmer, Denmark , sworn and examined:

11568. To the CHAIRMAN : I have been for three years on the land in this district. I came from Glasgow, Scotland. I was a steel worker. I have 21 acres of land ; it is a leasehold town block valued at £94 and I am paying £2 14s. rent per annum. It is