awakening has come, and the farmer has discovered himself. He finds that honest toil with his hands does not prevent him understanding and undertaking his own business affairs, but rather that the understanding and undertaking of his own business affairs makes lighter and more profitable the work of his hands. Fortunately for the farmer, fortunately for he industry; fortunately for the State; necessity forced the position. Neither the farmer, the industry, nor the State could stand the drift any longer. As the farmers, to preserve their own existence, have been forced into co-operation in every country in the world, so the farmers were forced here. The farmers' revolt against the condition of their industry and the miserable existence they had submitted to, as evidenced by the co-operative movement, is of immense importance to the State, and deserves the immediate attention and encouragement from not only this Government but from all who desire the country to prosper and progress. The necessity for better farming is readily admitted, so is the necessity for better business, but unless the farmer is to have encouragement by better living conditions, farming is not going to improve, nor is business. The farmer has long been content with the hard work and poorest conditions for himself and his family. He is out to conserve for himself a better share of the wealth he produces, and to enjoy some of the comforts of life, if not its luxuries. He can, by marketing his own products, cut out some of the expensive middlemen, who formerly did his business for him. He can, through his co-operative organisation, procure his requirements and save the expense of armies of competitive agents. He is in competition with no one. All he desires is to handle his own wheat and transfer it to the consumer with the least possible expense. He has combined to secure his requirements as directly as possible from the producer. Competing with the world's producers, the farmer has to work on a narrow margin, and it is imperative for him to combine. In the farming industry is the hope of the State, but unless encouragement be given by better conditions than have prevailed in the past, men will be slow to embark in it. Co-operation is their hope, and it should have the support of all well wishers of the State. One of the chief aims of the Governments of highly civilised white nations should be to keep population on the land, to multiply the numbers of those modest rural homes in which men and women grow up in health, and become furnished with those sober and enduring qualities which have made the greatness of our nation in the past and maintain it now.

5109. By the CHAIRMAN: I noticed that, just before your concluding remarks, you said that in Canada co-operative societies of farmers have been successful in handling wheat by the bulk handling system or silos. Sir Thomas Price, who visited Canada on behalf of the South African Government for the purpose of investigating the subject, made a report in 1911; and I will quote you one or two paragraphs of his report. Having dealt with Canadian companies running bulk handling, and with their charges, be pointed out that—

Owing to the discontent which existed, those companies were followed by a more ambitious scheme, initiating entirely within the sphere of the farmers' influence, in the shape of farmers' unions and unincorporated co-operative unions of the farmers themselves, organised for the purpose of shipping their own products independently of the elevator owners, except insofar that the grain at the elevator points still, of course, had to pass through such elevators. This scheme was launched with great enthusiasm, and for a time was loyally supported by the farmers. Later, however, dissension crept in among themselves, and the scheme had a short life, proving, in the end, very unsatisfactory both financially and otherwise. The next step developing from the farmers' continued conviction that they were not being fairly dealt with was the initiation of local incorporated companies, none but farmers being shareholders, organised for the purpose of building and operating elevators at the home station of the company. The early elevators so built, at the first were most popular with the farmers. They confined themselves to a storage and shipping business, and as they had the loyalty of the local farmers they were largely patronised, and in consequence paid good dividends to their shareholders. These companies multiplied rapidly, until they became a factor in the grain trade. Local dissensions, however, arose in time, and this experiment, like former ones, failed.

Is there a possibility of something of the same kind happening in Western Australia?—There is always a possibility of it. But that is a report of 1911. Since then, we claim, there has been an awakening, not only among industrialists, but also among producers. You will remember the slogan shouted to the workers of the world, "You have nothing to lose but your chains, and you have the world to gain." The workers were urged to unite. Now, the farmers have realised that to stop with the production of wheat, and to leave to others the most profitable part, namely the marketing, is disastrous. Sir Horace Plunkett has told the farmers they must organise for co-operation and improve their business methods. The King himself has preached this doctrine of awakening, and the farmer all over the world has awakened. Fortunately, I have here something later from Canada than your report of 1911. (Handed in.) This is a report of a meeting of the Alberta Farmers' Co-operative Elevator Co., Ltd., held at Calgary on the 21st and 22nd November last. The Canadian farmers have realised that in the past the profits of their business have gone to those who did nothing to earn them. The Canadian farmers have organised, and have formed co-operative companies and co-operative elevators. In spite of what that titled gentleman stated in 1911, very large quantities of Canadian wheat are handled through co-operative elevators, and to the satisfaction of the farmers. I shall bring further evidence to prove that Sir Thomas Price's forecast has not been realised.

5110. It is not a forecast, but a statement of what has actually taken place?—But he speaks of a movement which collapsed, and of another movement then in progress but which showed signs of breaking down. However, there is always some dissatisfaction everywhere with everything. In our case, much of the dissatisfaction that we shall experience will be engendered by our competitors; that is part of the scheme. I have other reports of co-operative concerns in Canada, and in every case I find that the co-operative concern is succeeding there. "In every case" is, of course, a bold statement. One cannot expect perfection in every part of a big organisation. Our own organisation, comprising about 70 companies, which rate as members, is not perfect by a long way. All the 70 companies may not ultimately succeed; they may not all live; some of them may die in infancy, though I do not think so. But if some of them failed, that would not be sufficient to condemn the whole movement here. In every movement there is a proportion of failures. The whole of the 70 companies are built on sound, good, safe lines—lines which have proved successful in Britain and on the Continent. We believe they will succeed here.

5111. I see you give a bonus on the amount of trade done?—Done with us, yes.

5112. The farmer, whether he is a shareholder or not, by letting you handle his wheat will share in your profits?—We have not told him that definitely until this year. The agreement provided that the profits made out of wheat handling should not be distributed; that is, as identifiable profits.

5113. You have not told the farmer that?—We have lately. Previously we could not tell him that, because we were not permitted to distribute wheat profits.

5114. But this year you are doing that?—Yes. Any profits we make, not only out of wheat, but out of wheat and all other lines, will go back to the people who have helped us to earn those profits.

5115. Then any profits of the Wheat Scheme are taken in with the general profits, if any, or losses, if any, and the bonus is on the whole of the transactions of the society and not on one particular line?—Suppose the business as a whole made a loss, while one department made a profit, it would not be possible for us to carry out a promise to distribute profits made in one department only.

5116. Prior to your taking your present position, were you employed here?—Prior to taken on the Westralian Farmers, Ltd., I was a farmer.

5117. You were not employed by any other company?—Wheat company?