6911. There is not the least doubt that the bags had been thoroughly wetted and were stacked in that condition. If that wheat becomes musty it will be lable to spoil the whole stack? —It may spoil a few bags.

6912. In regard to gristing, we find that you have made different conditions. Some of the mills are gristing while others are buying the wheat?—The only mill buying the wheat is that at Bunbury. It did not pay us, and the mill was not particularly anxious to get the gristing arrangement. Of course, if the Bunbury. Mill had insisted, we would have been making a bad deal, Mr Forrest has been particularly decent in his treatment of the scheme, and has had a lot of wheat more or less weevilly sent to his mill, yet I do not know that he has asked for any dock in connection with the wheat we have tendered to him has been slightly better, on the whole, than wheat tendered to other mills. He has had opportunity, before taking wheat, of having a look at it in the yard. that is not to say that he takes his pick, but where we find a miller helps us, we try to be reasonable with him.

6913. The Scheme is selling him only f.a.q wheat?—We get f. a .q price for it.

6914. If he says that he is getting only f .a. q. wheat will you be satisfied with that?—Yes, but I know it is not true, at all events, it was not true a little while ago.

6915. You are aware that the bags are picked and that the balance, not being f. a. q. are sent to Perth?—No.

6916. Mr Forrest says he is getting only f.a.q. wheat, while weevilly wheat is sent to Perth?—It is news to me.

6917. If Mr Forrest is getting f.a.q. wheat at 4s, 9d., is he not in a better position, than the other millers?—Yes, up to the capacity of his mill, which is only a small one.

6918. He has the scheme as customer for his flour?—For the greater portion of it, yes.

6919. You take it at a price fixed. Can you give us that price?—I will forward it to-morrow.

6920. And tell us at the same time how much flour has been taken from the mill?—Yes.

6921. I think you will find that it works out for gristing nearly 50 per cent, higher than you are paying the others?—Is that so?

6922. Seeing that exceptional conditions have been set up in respect of the Bunbury mill, why cannot the same be applied to the poultry farmer and the grocer?—It was the policy decided upon by the board. Their idea was that under f.a.q. wheat—it is provided in the Act—should be sold for poultry and f.a.q. wheat should be reserved for local consumption. Of course we have gone one better, or worse, by insisting that our weevilly wheat should be sold for local consumption through the mills, except in regard to the Bunbury mill. It seems a hardship that those consumers of wheat, who have their own private gristers, should have to use under f.a.q. wheat, but it has been pointed out that there is a certain quantity of f.a.q. which gets on to all the markets in an indirect way. For instance, certain merchants are also farmers and it is most difficult to prevent those merchants from selling their own wheat retail to consumers. In that way a good deal of f.a.q. wheat is sold direct to the consumer.

6923. Direct from their own farms through their stores?—Yes.

6924. We Have it in evidence that those merchants and grocers who have not their own farms, by being compelled to purchase your weevilly wheat, are spoiling their other stocks liable to weevil?—I do not know that they are absolutely compelled to buy weevil wheat because not all inferior wheat is weevilly. but I suppose they have to take what they can get if depleted in their stocks.

6925. Could nothing be done to assist them?—it would be difficult but something might be devised, I have brought it up continuously might be devised. I have brought it up continuously but it is impracticable in so big a scheme, because it is only a few bags after all, and it opens a loophole for other wheat to be put on the market. It is worse now than ever before inasmuch as there is so much weevil about.

6926. And the Board is afraid to risk that?—I would not like to say that, It is a point that could be considered in connection with the new seasons wheat.

6927. Have the Board ever considered any scheme of carrying out the whole of the acquiring and handling of the wheat themselves?—Quite recently the board had an estimate prepared by the general manager as to the cost of the wheat being handled by the schemes officers. that is the only time during my association with the scheme.

6928. That was the estimate which Mr. Keys gave us? —Yes

6929. The board must have discussed that question?—I do not know that they did. they asked for an estimate. They got that estimate, but the matter remained in abeyance.

6930. Would not the board have discussed the matter prior to asking for the estimate?—It depends on what is meant by " discussing." They had a few words about it before they asked the general manager to prepare the estimate. Some were not favourable to the idea, others said "Let us get an estimate, anyhow." I think that was about the extent of the discussion.

6931 The manager prepared an estimate and that estimate was laid before the board?—Yes.

6932. But no further action was taken?—Not by the board, so far as I know.

6933. Do you mean to tell me that the board discussed that matter and as a result instructed the manager to go to the trouble of preparing an estimate, and then, after getting the estimate, the board took no further action whatever?—No further action was taken as that particular time. That is not to say, of course, that it is not going to be discussed.

6934. The manager was asked to prepare an estimate, but owing to the work entailed on the manager, through this commission, he had not time to prepare the estimate at once and it was postponed for a week?—Yes, I believe.

6935. And when the board got the estimate they decided to ask for questions?—Yes, I think so.

6936. Was not the matter discussed before they decided to ask for quotations?—I do not remember any discussion.

6937. Was it not referred to in any way?—Yes, in this way: there were such remarks as, that is astounding, and That is something to explain."

6938. They thought the saving was astounding?—They thought the saving was astounding?—They thought the estimate was remarkable.

6939. that refers to the difference in the amount between the acquiring agents and the scheme in the handling?—Yes.

6940. The outstanding part was the smallness of the estimate compared with what they were paying?—Yes.

6941. If a statement had been made by an influential member of board in the press that no such scheme had ever been discussed or proposed by the board, that would not be correct?—If those words were used they would be correct.

6942. Or any statement of a similar character?—I have in mind a statement that neither the Minister nor an officer of the Scheme has ever suggested that the Scheme should do its own handling. Officers put up what they were told to put up, but did not suggest any handling.

6943. The suggestion came from the Board?—The suggestion for the estimate did.

6944. The only loophole is that the Board considered the matter instead of a Minister or officer?—Quite so.

6945. Was the minister present when the price for the scheme doing the work was submitted to the Board?—He was not present when the general manager tabled his statement showing the estimated cost of handling by the scheme, but the statement was on the table when the Minister entered the meeting at a quarter to twelve. it was after the minister entered at a quarter to twelve that the acquiring agency conditions for 1918 were discussed. that was on the 18th July.

6946. The manager, at the request of the board, submitted a scheme at a meeting at which the Minister was present at some time or another?—Yes.

6947. When arrangements were being made to ask for quotes, the scheme put forward by the manager