is our principal objective. We do not expect to make much profit out of lime. The people I am negotiating with are probably the only people in Australia who have a Portland cement plant of any size available. I am going East next week, and I hope to conclude the negotiations. There is no reason why this Portland cement plant should not be a going concern to see achieved within 12 months. In the meantime I am prepared to make any reasonable arrangement with the Government for the supply of lime for agricultural purposes. I can give the Commission a copy of the proposition I put up to the Government. I have in mind another proposition to put up in regard to the railway. We want the railway to be a Government line instead of a private line. Huge quantities of lime will be carried over the railway and therefore it is essential that the railway should be worked in conjunction with the Government system, for the benefit of ourselves, of the public and of the Railway Department.

11938. What length of line is required?—Fifteen miles. It would come in to the Waroona station.

11939. Do you think the line would be payable from the jump?—We have offered to guarantee the interest and a sinking fund to pay for the line during the term of our lease, and to guarantee working expenses. Alternatively, we are going to offer to construct the line ourselves, providing the Government will do those things for us.

11940. How long after the establishment of your plant would agricultural lime be available?—The lime in its present state is in the best condition for application to the land. I have here a small sample, part of a bulk sample, taken over a length of three miles by Mr. Malcolm, the Curator of the Kalgoorlie School of Mines Museum and lecturer in geology at the school. (Sample produced.)

11941. By Mr. PAYNTER: There would be considerable leakage in our existing railway trucks if this line were sent loose?—That difficulty could be overcome. My proposition was that the Government should carry the lime free. In New Zealand the Government carry the lime free, because it pays them to do so. It is burnt lime, and I do not think it is possible for them to put it into trucks at under 30s. a ton. but all the same they carry it hundreds of miles for nothing. I put in the report of Mr. Larcombe, B.Sc. (Report handed in). This deals with the Lake Clifton deposits, and different limes and their application.

11942. You say that your concession starts 12 months after the declaration of peace, the obligation on the part of the Government being to hold the deposits to you order for the time being in return for this what you give to the State?—Not exactly. From the day of the passing of the Bill. I have to pay rent to the extent of £200 a year. The Act was passed 18 months ago. The term of the lease is not to start until 12 months after the declaration of peace.

11943. You are not compelled to carry out the obligations imposed by the contract until after the war?—I am not bound to, but hope to make arrangements shortly to start. We asked the Government to carry this lime free and to take a certain quantity. I produce a copy of the offer. (Document handed in.)

11944. By the CHAIRMAN: Your offer is conditional on the Government carrying the lime free or at a nominal rate over the State railways?—That was only the basis of the negotiations. We practically make the Government the gift of a railway under these conditions.

11945. The reduction to 6s. is contingent upon your present negotiations for a cement plant for immediate erection?—Not exactly. There is a further condition. The offer was not accepted.

11946. Does the Act lay down any time at which you will guarantee to commence operations?—Twelve months after the declaration of peace I have to sign an agreement and find the necessary bond, and within two years thereafter have to complete the railway and supply lime at Waroona for 10s. a ton unscreened, and 12s. screened. We commenced negotiations before the war, and have had to modify our first offer. It is impossible to get cement machinery, and it was considered to be a reasonable proposition to give us until after the war to do so.

11947. In what year were your negotiations with the Government concluded?—In December, 1916. Before that we had an agreement which was subject to ratification by Parliament, and this hung us up for 12 months. The lease was to commence 12 calendar months after the declaration of peace, or at such earlier date as might be agreed upon by the Minister or the intended lessee, who in the meantime was to pay to the Minister the rent stated from the date of approval by Parliament, in half-yearly payments in advance.

11948. It would seem that the community must look for its supply of lime to Lake Clifton?—We are trying to make arrangements to start these works sooner. The people I am negotiating with have cement works and equipment to spare. It is the only plant in Australia that is available, and if we could get this plant there would be no chance of working the lime for fertilising purposes until after the war. These people are prepared to go on with the erection of this plant.

11949. The concessionaire gets 10s. per ton on trucks at Waroona under the terms of the Act. That is the guarantee?—That is our obligation. We must supply up to 50 tons a day if necessary. We only look upon the lime as a side line to the cement business. We do not consider that lime can be supplied at a profit, even at that price. We concluded that lime at 10s. per ton with freight added over hundreds of miles puts it out of the reach of the farmer. Nature has placed this deposit in the best possible position for the supply of the South-West. If the lime was carried free by the Government it could be used in large quantities. There is no question as to what it will do. I have put lime on a bare sandy patch on my own place, and the grass has grown better there than anywhere else and has remained there. The lime will have to be pumped up because it is under five feet of water.

11950. Your costs would be the pumping, loading on trucks, interest on capital, and working expenses?—Yes, and the lease rents.

11951. By Mr. VENN: The Government would not entertain the new proposition?—No. They said they could not do it in the present circumstances. Mr.