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circles and in the public Press. It is represented that huge profits have been made—profits far in excess of any legitimate reward of the capital, labour, and enterprise invested in the industry. It is stated that if business had been carried on direct between Australian producers and the War Office much more economical terms could have been arranged, and large sums of money thus saved by the Imperial authorities. 8. Mr. Barton has reason to believe that a communication has been addressed to Lord Kitchener, drawing attention to the fact that the prices paid by the American army authorities in the Philippine Islands for supplies of Australian meat are very much below those which have been paid by the Imperial authorities in South Africa for supplies of similar commodities, and this although the circumstances of the respective situations have been largely similar. 9. In a letter recently received from a responsible firm in this community it is stated that an offer could be made to supply, monthly, 2,000 tons of frozen beef, mutton, lamb, &c, ex storeship at Durban or Cape Town, at a price of 6|d. per pound all round. It has been announced that the firm in South Africa who have supplied large quantities of frozen meat for the use of the army there have been receiving 9id. per pound for mutton, so it is clear that the price quoted woul.i represent a substantial reduction and consequent saving to the War Office. 10. Mr. Barton would, therefore, strongly urge that the foregoing statements be taken into consideration by the Imperial authorities, and ventures to express a hope that the result of such consideration may be a wider distribution of contracts and a more direct and economical method of business trading. 11. Mr. Barton desires to invite attention also to the question of supply of horses for use in the South African war. Paragraphs frequently appear in the public Press notifying that large shipments of horses have been made from America, Eussia, and other countries to South Africa. These paragraphs excite comment and cause inquiries to be made as to why the number drawn from this country is, comparatively, so small. Mr. Barton has received a communication on this subject from a responsible firm which states that an offer was made through the Premier of Queensland some time ago to supply 600 horses per month for six months, and so far the offer has not been acknowledged, and is resultless. It is represented that the reason for this is not one connected with the price, as the price of the horses has not even been discussed between the syndicate responsible for the offer and the War Office. Mr. Barton is informed that the difficulty in the way is with respect to the form of contract proDOsed. The tenderers desire that the contract should be c.i.f., but the W 7 ar Office authorities insist that all business connected with the shipment of Australian horses to South Africa must be done f.o.b. 12. Mr. Barton will be glad if it can be represented to the War Office that, in the opinion of Ministers, the c.i.f. form of contract would produce more satisfactory results both to Australian merchants and to the War Office. The multiplication of contracts entailed by the f.o.b. system cannot be conducive to economy, and, further, the employment of the c.i.f. method would lead to the business being carried out by shipowners employed in the regular trade between Australia and South Africa, and whose vessels have been built and fitted expressly for such trade. 13. Ministers are desirous of encouraging by every means in their power the increase in the number of regular traders between Great Britain, South Africa, and Australia. It will be of great advantage if encouragement can be afforded to such companies, in preference to having business done by occasional tramp steamers belonging to firms which have no settled interest in the Australian trade. 14. In connection with this question of the respective merits of the two forms of contract, Mr. Barton suggests that a reference be made to Colonel Hunt, who has been for some time in the Commonwealth employed on duties in connection with the Bemount Department of the army in South Africa. That gentleman has been long enough in Australia to become fully acquainted with her conditions of trade, and he is consequently able to speak with authority as to the respective advantages for the Imperial authorities of the two methods of contract under review. 15. Mr. Barton is pleased to observe from the much fuller information afforded by the Admiralty that considerable portions of supplies required for the navy are being purchased in Australian markets. He notes, however, that invitations to tender for preserved canned meat for the navy generally are apparently issued only to Australian firms who have accredited agents in Great Britain. If that practice could be altered, so as to arrange that when invitations to tender for supplies were issued in England similar invitations might at the same time be publicly announced in the Press of the leading cities of the Commonwealth, Mr. Barton thinks that the obtaining of suitable supplies would be greatly facilitated. 16. Mr. Barton trusts that the experience of the Admiralty in connection with the supplies of Australian and New Zealand salt pork, and salt beef, delivered in Sydney for the use of His Majesty's ships on the Australian, East Indian, and China Stations is sufficiently satisfactory to induce them to widen the area which Australian merchants can supply. He believes that if such a course is followed much general good feeling will be created in Australia, and complete satisfaction afforded to the Admiralty and to the consumers of the goods in question. Mr. Barton will be pleased if early consideration could be given to the subjects dealt with in this minute. Melbourne, 16th December, 1901. Edmund Barton. Sir,— Sydney, 28th November, 1901. We, the undersigned, producers and exporters of New South Wales, beg to draw your attention to the fact that we do not consider the War Office are drawing a fair quantity of the supplies required for the use of the army in South Africa from Australia. We think