corded the wheat received, the equivalent due in product, and the deliveries as made.

Deliveries.—There is a good deal of work entailed through the delivery of grist lots: all bags are marked with the initials of the farmer and siding.

Accounts.—All transactions are entered in detail in "gristing books," separate entries being made for "cash grists," "credit grists" and "outstanding grist accounts," the latter referring to transactions where the farmer does not take the whole of the "product due" at one time.

Bags.—The miller has, as a rule, to supply bags other than the standard sacks. In some cases flour is supplied in bags of 25lbs., 50lbs., and 100lbs., and in other cases sacks are supplied containing less than the standard quantity of 150lbs., this last necessitates independent packing and weighing up.

4250. Do you have many applications from farmers for gristing ?—A good many.

4251. By Mr. HARRISON : They would be mainly applications from farmers under the Industries Assistance Board ?—Yes. There was another point raised by Mr. McGibbon, as to the 2½ per cent. commission on sales to Java and Singapore. Mr. McGibbon raised the same point at a deputation to the Attorney General, and he was told then that no sales had been authorised to Java or Singapore and that it was not likely any would be permitted, and that therefore that part of the agreement would not come into operation.

4252. But he was complaining about the power to grant commission ?—It was explained to him that the provision was not likely to become operative. I could not deny that under the letters which passed between the Minister and the millers the latter had that right, but I worded that particular portion of the agreement so that the right would never come into operation.

4253. Has no flour been sent to Singapore and Java ?—Yes; but the millers have to buy that from the Scheme in the ordinary course of business. The Scheme are not sending flour to Java or Singapore, but sell the wheat to the millers to make the flour.

4254. At present you are not balanced up with any of the millers ?—In regard to the old contract wheat, no.

4255. Do you think it would be possible to get a clean up with the millers about, say, Christmas or New Year ?—We shall get a clean up as regards the current agreement before then; but as to old matters I do not know when we shall clean up. There cannot be a clean up as regards them until the final dividend of the 1915-16 Pool is paid.

4256. By Hon. J. F. ALLEN : And all disputes are settled ?—Then all disputes will be settled.

4257. By the CHAIRMAN : Reverting to the gristing, you will have noticed that Mr. Murray, in his evidence, Question 2979, makes a strong complaint that he could not get gristing receipts ?—Probably that portion or Mr. Murray's evidence has some justification. This gristing business was not provided for in the agreement with the millers. It was only when I took the management over and went into this matter. I saw that if we compelled the farmers to send their good wheat to the millers to be gristed, it would defeat the object of getting the weevilly wheat gristed. So we arrived at the plan of getting the farmers to deliver to the Scheme's ordinary acquiring agents and obtaining gristing receipts, which the farmers sent on to the mills. Then we had to prepare that form of gristing receipt. We fixed up a form, and got some books printed. The clerk-in-charge of stationery at that particular time had, I believe, 125 printed. Whether he got them printed without consulting anybody, or whether he consulted the Westralian Farmers, I do not know. At any rate, he got that number, and sent them along to the Westralian Farmers; and I understand they told him that they required some more. No responsible officer of the Scheme was told for some time that more gristing books were needed. So probably they were a bit short. But, had it been my business, and if I had had only half the number of books I required. I would have ripped the books in halves; or I would have typed out a sample receipt and send it to the agent with an intimation that until the printed books arrived he would please give receipts as per this type-written sample. But, apparently, the Westralian Farmers' management had no initiative at all in this respect.

4258. But Mr. Murray pointed out also that you wrote to Thomas & Co.?—Probably one of the staff wrote. I did not know that they were short of gristing books.

4259. He said in his evidence :—

On the 14th January, nearly three weeks after the arrangement had apparently been entered into with the mills, Mr. Keys wrote to us that 
Thomas & Co. were complaining that the Westralian Farmers had no knowledge of the gristing arrangements.?—The arrangement was published in the newspapers at the time. I do not know that a letter was sent to those people officially notifying them of the completed arrangement.

4259a. Then he goes on to point out that while they made application repeatedly for these gristing receipts right on to the 21st February, when they wrote a letter and up to that date no more gristing receipts were supplied. He says we were constantly asking for receipts and constantly being put off. Four letters were written, he says, to us, calling on us to carry out our instructions ?—I personally did not write the letter, but somebody on my behalf. I know there was a delay on account of the clerk not supplying sufficient gristing receipts. What really happened was this: the stationery clerk took the first batch of gristing receipts to the Westralian Farmers himself, and they told him they would require more, and he promptly forgot all about it. It was not till some time that we were aware they wanted more books.

4260. The awkward position you are placed in is this, that the letters are signed in your name ?—Things like that will happen. You cannot expect the ordinary clerk to be trained on all points of business procedure.

4261. But you have not a large number of clerks ?—According to Mr. McGibbon we have 60, but as a matter of fact we have 40 all told.

4262. But you have only a certain number of clerks on work of this description ?—Yes.

4263. And you do not allow many clerks to use your signature, the rubber stamp ?—There are only three there who do that. In that particular case they probably did not use the rubber stamp with my signature.

4264. They said the letter came from you ?—Any letter that comes from the Wheat Scheme is from Mr. Keys.

4265. By Hon. J. F. ALLEN : If the rubber stamp was used they would initial it ?—Yes, but they do not say "written on behalf." As a matter of fact Mr. Keys writes very few letters.

4266. By the CHAIRMAN : At the same time, whether you write them or not, they should not send a letter out with your name on unless you have sighted it ?—I would not have the time.

4267. Then you should make them sign the letter themselves ?—In that case you get disputes. The accountant writes about a lot of items, and there would be a lot of disputes if he signed his own name. You would get letters asking whether the letter signed R. S. Child, accountant, has been authorised.

4268. But you would not dream of sending out a letter signing Mr. Baxter's name to it ?—No, I would not.

4269. What more right have they to sign a letter with your name than you have to sign Mr. Baxter's name ?—They generally sign it "per" so and so.

4270. It would take an expert to find out what the initials are ?—Letters should be signed on behalf of the general manager, but I am told it does not conform to Government ideas.

4271. I do not know whether it has been the practice or not, or whether it conforms with Government ideas, but it would be a better practice and I do not know what the members of the Commission think, but I think no letter should go out under the manager's name unless he has had an opportunity or perusing the letter ?—There would not be the time.

4272. By Hon. J. F. ALLEN : As a matter of fact I suppose there is a certain amount of red tape in your department ?—There is a certain amount of red tape in all businesses, private and Government.

4273. By the CHAIRMAN : It leads to this position, that you are likely to be condemned for some action which has been taken and which you know nothing about ?—That is so. I was dealing with the millers' agreements, and this agreement was primarily entered into for the gristing of weevilly wheat. In the past the mills bought the wheat from the Scheme at a fixed