—still prefer to have a factory here, on account of their being small producers. They have a factory at Albany but they cannot support it. They do not produce milk sufficient to keep their factory going. The Denmark factory is also going to serve those people who will be settled to the west of Denmark. The milk going to the Albany factory is produced in districts far distant from that centre. Why not have a factory in the district where the milk is produced? The small factories, in districts where they have been established, have created a certain circulation of capital. Another feature not inconsiderable at this particular time: a number of men have left for the front on active service, on the understanding that these factories will be here available for them to pursue their occupations, on their return. We have weighed the question very carefully and at the present time no doubt the cash prices inclines one to believe that a better price might be obtained in Albany, but, nevertheless, consider that, once it is assured the factory will be maintained here, pigs will be produced in such quantities that it will be possible to pay good prices for the raw article and still make it up. I consider this district is essentially a dairying and pig-raising district and the time will come when a factory will have to be established here of a size capable of coping with the production. There are lots of inquiries for land in this district and I know that it is due to the fact that these factories are here now. If the factories were removed today many settlers would be disheartened.

11576. By Mr Paynter: Since the factory has been established here, has it ever had to close on account of a shortage of pigs? -No. A lot of capital has been invested in this district, and they value of the capital is not at present in the blocks. We have had to pay for our experience here, and the amount of money allowed to settlers by the Agricultural Bank has to be considered. The question, then, is what position is the Agricultural bank in if the factories are removed, they will be forced to give up. If these people go, the land will revert to scrub, and the Agricultural Bank security is lost. The people at Katanning and Narrogin are now sending their cream to this factory, and I consider these people would also send their pigs here once the railway service is improved. (The Chairman pointed out that it would probably be necessary for the Government to equip the factory at Albany for the export lamb trade, and it would be an advantage to have these industries adjunctive to those works.) We can now keep these two factories going here, and have proved that we can keep a larger establishment going in this centre as we are now over-producing. We want, therefore, to ask the Commission to endeavour to have the question decided as to where the factory should be in the future; and, in doing so, to take into consideration the needs of the district at the present time, the fact that we are over-producing, and must have a local market for the disposal of our supplies. We are induced to come here on the understanding that the necessary facilities would be provided. The factory as it is now cannot, I think, take more than four to six pigs per week, and if you will look up Mr Sutton's report, you will find this confirmed. They kill in one room, and they have to dry in the room where the pigs are salted and cured. Farmers can cure here for themselves in the winter, but in the summer it is impossible, and they close the factory from November to April. A lot of us, when we were informed that the factory was going to be established, went in for pigs, and now we have no way to get rid of them. Even temporary conviences would suit the needs of the district until it is decided where the proper factory is to be established.

11577. To the Chairman: How many pigs are there in the district now? -The figures have not been tabulated yet, but they are being collected and will be supplied.

11578. To Mr Venn: The Agricultural Bank has advanced up to £10 per acre in the country which Millars cut down. I do not consider the jarrah and red gum country is being properly handled by the Agricultural Bank. They require that we shall grub out everything under two feet in diameter.

11579. To Mr Paynter: This country requires liming. We are strongly of opinion that time is required. There is lime in the district, but it cannot be got at. It has not been made available for settlers.

11580. By the Chairman: Do you go in for cropping? -There is a certain amount of oats and hay produced here. We use super at the rate of a cwt. to the acre in order to get a decent return. We have grown crops of two tons to the acre, but the average is about one ton. Peas do well. We can get 25 bushels to the acre. They can be grown all the year round. Peas are worth 10s a bushel here today. Dunn's do best, and the Partridge also does well. Settlers also grow crops of peas and barley fodder.

(The Witness Retired.)

John Mazzoletti, Farmer, Denmark, sworn and examined:

11581. To the Chairman: I have been on the land in this district for 6½ years. I have 18 acres on the estate and 300 acres outside the estate. I am paying £7 per acre for the 18 acres. In the 300 acre block there are 160 acres homestead and the balance conditional purchase at 16s 3d per acre. The 18 acres is half a mile from the railway, and the other is 11 miles. I have 15 acres of the 18 acre block cleared. It is all fenced and subdivided into nine paddocks. I am married man with six children. I have a four-roomed house, cow shed, stables, pigsty and feed sheds. I have two horses, six head of cattle and 19 pigs. I started with £400 capital. I have borrowed from the Agricultural bank to the extent of about £200, and I owe storekeepers about £50. I have cleared only one acre of the 300 acre block. My living is derived from cows and pigs and the production of a few vegetables. I can make a bare living and that is all, but I consider that I can get established in the future.

11582. To Mr Venn: I intend to go in for more cows. The result I have obtained from my cows equals £3 per month per cow all the year round. I do not employ labour. I grow clovers, roots including mangolds and peas. Cows milk well on swedes pulped and mixed with bran and oats besides the green feed. The cattle which I turned out do not get rickets. There is a lot of country being—