or contents would be approximately 25 per cent. more than for the structure in respect of concrete silos.

8258. By Mr. HARRISON: You are able to make better terms with the Government for fire cover on account of not having to employ anyone to secure the business?—Yes that is one of the main factors.

8259. By the CHAIRMAN: Did the Wheat Scheme officials ever ask you for prices?—No. The only communication I have had in connection with this matter was with the secretary to your Commission.

8260. By Mr. HARRISON: Has the Scheme yet taken out cover for the wheat stored?—Quotations have been given, but it has not yet been covered, only the buildings.

8261. By the CHAIRMAN: Then the statement handed in by the Scheme official regarding insurance on wooden and concrete silos is wrong?—Yes. The Government officials should have known better, because they are always doing business with me.

(The witness retired.)

The Commission adjourned.

TUESDAY, 5th NOVEMBER, 1918.

Present:

Hon. W. C. Angwin, M.L.A. (Chairman).

Hon. J. F. Allen, M.L.C. | Hon. R. G. Ardagh, M.L.C.

S. M. Brown, Esq., M.L.A. | T. H. Harrison, Esq., M.L.A.

JOHN SCADDAN, Flour mill manager, sworn and examined:

8262. By the CHAIRMAN: I may state we decided to call you some weeks ago, but we were informed that the millers entered into some agreement, and then we thought it unnecessary. However, there is a notice to-day that they have not entered into an agreement. Has your firm entered into an agreement?—Not yet.

8263. It is stated in the Press to-day that letters have been sent to the Miller's Association, specifying the rates at which they are asked to grist. There is a graduated scale according to the size of the mill. Have you received one of the letters?—May I explain? We are not members of the Miller's Association, and were not consulted. That applies to the first agreement as well as to the present one. Nothing was done so far as concerned us until such time as some agreement was made with the association.

8264. You had to accept the rates?—The first intimation we had was correspondence received form the Scheme advising us that they had been in communication with the Flour Miller's Association and had written to them and enclosed copies of the letters written to the association, and the replies received from them, which went to show that they were unable to agree, and then submitting the Scheme's proposal which was tantamount to saying that no further negotiations would take place. I do not know whether I ought to admit, knowing what transpires in these matters, but we did not take it seriously and sat down waiting developments. The next development was a verbal communication stating that agreements were being made with the individual mills.

8265. So that the assosication is out as far as you are aware?—Yes.

8266. You had 7d. a bushel last time?—Yes.

8267.And 7s. 6d. for bags in addition?—Yes.

8268. There was a special provision for other bags for export flour?—I am not quite certain on the question of export bags. The Commission are aware of the conditions under which wheat is gristed for export. I do not think it includes payment for bags in that case.

8269. Where there is a different class of bags used?—There are the local 50 and 25lb. We do not sell on behalf of the Scheme. We purchase the wheat form the Scheme and grist it. We put it into our export bags, the Scheme paying us the market price for the bran and pollard. But I have not taken that as meaning they will pay us for bags.

8270. The whole of the flour exported, as far as you are aware, has been gristed out of what was purchased by the mill?—That is the term of the agreement and the only way we have done so.

8271. The agreement provides 2½ per cent. commission on flour exported to Java and Singapore?—Yes.

8272. That would not apply to any purchased wheat?—I think it does. The Scheme is paid 6d. 4½d. per bushel f.a.q. I have taken it that the bags must be provided by the mill. special bags they pay for and 2½ per cent. on, and the market rate here, not on the export price, the local market rate which would be a very different matter, and they pay us for the bran and pollard.

8273. So they do pay 2½ per cent. commission?—I take it they do. That is a term of the agreement.

8274. Mr. Thomas, of Adelaide and Northam, told us they never made any demand for the 2½ per cent.?—We have only just sent our first shipment to Java. I take it from the agreement they will pay 2½ per cent. on the local rate, which is £11 a ton. The export price would be probably over £15 a ton f.o.b. due to the price fixed for the wheat.

8275. In regard to the system adopted according to the Press this morning, for gristing next year, do you think that is as good a system as by the bushel?—It depends. I see difficulties in connection with it. for instance, I have taken the object of the Wheat Marketing Committee in providing that the millers shall do the gristing on their behalf, is to enable them to insist on the mills gristing wheat which has been affected by weevil. It is quite natural that the mill purchasing wheat would not accept what is partly destroyed wheat. It was compel the millers to grist on their behalf and sell the product on their behalf. Under the new agreement they are paying on a flour ton basis. I may say, one-third of the wheat if they sent us the same sample as was sent previously.

8276.If, as Mr. Keys states, they intend to insist on the terms of their agreement that each bushel of wheat must turn out a certain quantity of flour, that means the millers could not guarantee to turn out that quantity of flour on the quality of the wheat supplied?—That would be impossible. I think Mr. Keys could not have meant exactly what he said, because he knows that it takes a fairly good wheat to produce 42lbs.

8277. On the returns for the ten months of last year the great majority of them turned out over 40lbs. That ought to afford a criterion as to what the wheat will turn out in the future?—Yes.

8278. You have seen some of the stacks?—Yes.

8279. There is not likely to be much difference in the quality of the wheat to be received during the next three or four months?—I do not think so.

8280. They will have to bring your flour up to 5lbs.?—The difference in our case has been that we have practically not rejected anything. We read the agreement literally. Any rejections at all have been because there was little or no berry left sound.

8281. Then if an agreement is entered into on the flour ton basis there will be the possibility of some litigation?—I can see possibilities of endless disputes. Under the existing arrangement the Scheme does not require to keep anyone continually at a mill sampling wheat, but under the new arrangement it may be essential to do that, or alternatively to accept the samples taken by the mills.

8282. Last year only two mills turned out 42lbs.?—They must have been getting decent wheat.

8283. You saw the announcement in this morning's paper that the prices are fixed at 29s., 31s., and 33s. per flour ton?—Those were the prices stipulated in the correspondence.