when at my place in the Ranges, I went, at the request of the man working for me there, to have a look at the wheat. Two bags were open, and they were dirty, black stuff, not fit for poultry. The third bag had burst and was lying about the floor. I took a shovelful of it, which I brought down to town and showed it to a number of my friends, all of whom were agreed that it was not suitable for poultry feed. Members of this Commission saw this wheat, and it almost puzzled them to know what it was; it was in such a bad state. I complained to Mr. Seymour, of Dalgety & Co., and told him of the transaction, and he said that so as to avoid a monopoly, it had been sold to a firm named Hatch Bros., who were selling that parcel of wheat. I returned the two bags which were untouched to Hatch Bros., and as a result of the telephone message they acknowledged receipt of the damaged stuff. Nothing was done until quite recently, weeks afterwards, when I paid a visit to Hatch Bros. They sent to me, carriage paid to Bickley, two bags of fairly good wheat.

3248. You placed the order with Dalgety's?—The first order, and they supplied direct. The second they handed to Hatch Bros. I am not suggesting that Dalgety & Co. had any interest in the transaction. The fact remains that was the mode of procedure.

3249. By Hon. J. F. ALLEN: What date was that?—I was not aware that I was to be called before the Commission this afternoon, and I could not tell you the date, only approximately. I should say it was about the beginning of March.

3250. By the CHAIRMAN: You were under the impression that Dalgety & Co. were sole agents for the sale of this wheat?—I was told so by the Honorary Minister when I gave the order for the first five bags which they supplied.

3251. You expected that the second order would come from the same source?—Yes. Relying on the strict fairness of Mr. Seymour in charge of the wheat to send me good wheat suitable for poultry, and in consideration of the fact that I paid him 9d. per bushel more for the second lot—2s. 9d. for the first lot and 3s. 6d. for the rubbish.

3252. There is another matter I would like to speak to you about. You attended a deputation to the Minister with certain wheat agents recently in regard to the question of letting last year's contracts?—I introduced a deputation to the Honorary Minister about the 2nd November last representing the wheat agents who were desirous of making further explanation in regard to the zone system.

3253. We have an extract of the report of the deputation—as far as we can gather no report was taken—and I will read the extract to you for your information to know if it is correct. The deputation waited on the Minister on Friday, 2nd November, and the report says;— At the conclusion of the conference Mr. Baxter stated that he had given the four shipper agents an opportunity to come in on a competition basis, and was very disappointed that this offer has been turned down; there was, however, still an offer open for their consideration as to which he awaited their reply. Mr. Keys then stated that he understood if the other agents withdrew from the business now it would mean that the Westralian Farmers, Ltd., would have a monopoly, but he took it that in that case it was not proposed to pay that company the price agreed to be given under competition. Mr. Baxter replied in the negative. Mr. Keys said that in that case he presumed the business would be given to the agent who could quote the cheapest crate, since the first consideration was to obtain the best possible terms for the Scheme. Mr Baxter replied that as already stated his first aim was to get the best possible terms he could on behalf of the scheme. Mr. Keys then rose to conclude the meeting, stating that the offer contained in the letter received from Mr. Baxter would be again considered and a reply handed to the Minister during the day. I ask you is that extract of the conclusion of the deputation correct?—When the deputation waited on the Honorary Minister on Friday morning, 2nd November, a price had been fixed by the Government, together with the duties which would be expected of the parties handling the wheat. The wheat agents were not satisfied with the conditions under which the offer was made by the Government, being anxious that should be handled in the districts under what is called the district or zone system. The Minister, it appears, had laid down those terms, and the terms were a certain price with competition and a different price without competition. So far as my memory serves me the agent's representatives were not agreeable to enter into competition only on the zone system, and again if my memory serves me right, the final remarks of Mr. Keys, representing Dreyfus & Co., were to this effect: that if that was finality, then the Minister was practically driving out of the country firms with capital, who had handled successfully the wheat during the past season.

3254. I want to know if that is a correct report?—It is quite possible Mr. Keys did make that statement, but at the same time it was generally understood by those agents that the Government or the Minister had practically committed himself to the Westralian Farmers with a certain reservation. The reservation I refer to was that, prior to this, the Minister had given the agents until half-past four in the afternoon of Friday, the 2nd November, to accept or reject the price the Government offered, a price with competition or a price without competition.

3255. Then you consider, as far as your memory carries you, that when Mr. Keys left the Minster he could not have any other opinion than accept or reject the offer?—The price was practically rejected when the deputation met the Minister in the vicinity of 10 o'clock that morning.

3256. By Hon. J. F. ALLEN: The business was practically closed?—Yes, that was the impression I received, and I have good reasons for giving expression to that opinion. That is the impression I received when we left the office that morning, that so far as the agents were concerned, all arrangements were closed.

3257. By the CHAIRMAN: Would you not leave under the impression that it was open to you to submit another price, if necessary?—No. I have no hesitation in what I am stating. 3258. I want you to read that minute?—(After reading minute.) I have absolutely no recollection whatever—the faintest—that that was made by Mr. Keys. I would be nearly positive in saying it was not made by Mr. Keys when we left. Had it been so, how would I come to the conclusion that the whole thing was off?

( The witness retired)

The Commission adjourned.