acres, including town and suburban lots—the rural locations are valued at £14,674 6s. 9d., and the town lands £5,855 9s 3d., making a total of £20,529 16s.

12071. What are the arrears of instalments to date?—On rural lands £1,633 2s. 8d., town lots £667 9s. 7d.

12072. What is the reason why so many blocks have been abandoned?—I should say the heavy expense of clearing and high price.

12073. By Mr. PAYNTER: Those blocks are now again open for selection?—Yes. Many have been retained for repatriation purposes. On this plan (produced) the blocks coloured yellow have never been selected. Those with the blue circle represent the better blocks which were set apart for repatriation purposes, and those coloured green were sold. These blocks—Locations 2,110, 2,085, and 2,002, left white, are freehold and do not form part of the estate.

12074. By Mr. VENN: When was the reduction in prices made?—Our report is dated 27th November,1916.

12075. By the CHAIRMAN: Have there been any subsequent requests for reduction?—No. I have met a number of men and they are of the opinion that their claims received reasonable consideration. Personally, I think their position is now assured. If they make an effort they will succeed; it was impossible before.

12076. Have you been over the estate?—Yes, I spent six weeks there. The land cleared some years ago and since abandoned, is now carrying a far worse growth than in its natural condition. The firing put potash in the soil, and to-day some of the scrub is so dense that were we sitting in it as we sit here, we would not see each other. That scrub is 10, 15 and 20 feet high, and amongst it is some very big karri. I am certain that none of the land could be cleared for less than £20 per acre, and this would only effect partial clearing in some cases.To make a thorough job of it would probably cost £30 per acre, and in some instances £40.

12077. You have reported on the Denmark Estate?—Yes, and will furnish you with a copy of the report, if you wish.

12078. What proportion of the unsold land do you consider is good country suitable for selection? —In most cases it is disappointing country and costly to develop.I am spending my own money on a property in the Warren district, which is in many respects similar to the Denmark district.However, with the right class of settler,given a reasonable amount of capital with which to establish himself, I think success on the land can be secured. Generally speaking, it is hopeless for the ordinary settler, especially if he is without experience, which is one of the most important factors.

12079. How much of the unsold portion of the estate is bad land and would not be selected?—The quality of the land varies very considerably. In each block various qualities of soil are found. The most promising land is that carrying karri, consisting of a rich red loam. There is lighter country growing red gum and a little karri: this soil makes good orchard country, but I question the possibility of successful fruit growing in country which costs £30 an acre to clear, especially when a man has to wait five years to get even a small return. It is impossible to say definitely the country is uniformly good or uniformly bad; there are patches which from a productive point of view are worth three times as much as other patches in the same block. I should say 20 per cent of the land may be regarded as fit for cultivation given the necessary capital for development.This would not show an immediate profit; the first settlers might live a life of toil and only keep body and soul together; their successors would probably reap the reward.

12080. How is the district served in the matter of roads? —It has advantage over any other area of similar country that I know of. In their milling operations, Millars Company had tram tracks laid down and graded; these have made excellent roads. Many roads which have been surveyed are not opened up. Some of them are impassable. A fair amount of country is served by the tram lines which afford excellent means of access.More country is served by these routes than is utilised.

12081. Unless roads are made in this country it is inaccessible?—Yes

12082. You think that the major portion of the estate is well served with roads?—I should say an area approximating half is reasonably served with suitable means of access.

12083. By Mr. VENN: Is there good land on the Crown areas surrounding that estate?—There is a great deal of rubbishy land, with some inferior and good intermixed.

12084. You were very sweeping in the reductions you made? —Yes, but they were fully justified. Anyone who has experience of that class of land will agree with the reductions made. It is ridiculous to contend that land is worth £10 an acre which costs £30 an acre or more to clear.

12085. How much of the £29,000 spent in clearing has been effective?—About five per cent. There has been some good fencing erected, which is to-day of value, but the cost of scrubbing is absolutely lost.The only value I can see as a result of the original expenditure, is in the fencing, and in the one or two cases settlers are hanging on to the land carrying a charge for improvements and they are responsible for, and as a result of the reduction in the price, I think they will make good.

12086. By Mr. VENN: The estate is cleared principally along the Scotdale-road?—Yes. On one occasion it took me 2½ hours to walk three-quarters of a mile through one block. Location 505 was cleared and scrubbed and some of the large timber pulled down by machinery. It was then burnt. I am assured by local people that at a later date after the Government goats had been kept thereon, it became absolutely a dust-patch, nothing remaining on the land other than standing karri trees, and it was possible to see all over it. Today there is no denser jungle in the whole estate; young karri 30 feet high is now growing thereon. They (the goats) had eaten it bare.

12087. By Mr. CLARKSON : Were they the goats Mr. Mitchell sent there?—Yes. I think the experiment would have given good value if it had been properly handled. The expenditure which was incurred by the State originally would have secured good results if steps had been taken to attract a desirable type of men from Gippsland. An agent ought to have been sent there to point out that we had certain areas of land where dairying pursuits could be embarked upon, that a certain expenditure