1.—12.

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[a. neighbours.

vitrifies under a low heat, and is consequently adapted for hardware-manufacture. We can make jars and fancy goods. The lack of shipping facilities, however, has crippled the work. To the Chairman: I will endeavour to obtain for the Committee the rate per ton charged by the company. The company can ship pipes by the thousand from Dunedin and compete with us To Mr. Veitch: The price of our pipe is the same as that manufactured in Dunedin. They can bring pipes from Dunedin and sell them here at the same price as our pipes. The boats take coal round, and would come back empty if they did not bring the pipes. William Wilmott, Potter, examined. I have had forty years' experience in clay at Home, in Australia, and in New Zealand. I have seen a good deal of the clays of Australia and New Zealand, and am surprised at the qualify of the West Coast clay. It is capable of making first-class drainage pipes and excellent conduits. It will also make fine bricks, and I doubt if a better brick could be made in New Zealand. Roofing and ridging are also made; also tiles, garden decorations, Bristol ware, and other things. As far as I can see there are millions of tons of this beautiful clay.- The goods can all be manufactured at a reasonable figure, but we cannot get the transport facilities. There is also excellent clay along the Buller River. T. Fairhall, Labour Agent, examined. In order to establish any industry on sound lines the Government ought to set up a Board of Research, to consist of a scientist, a skilled expert, and three business men of proved capabilities —for preference men of ripe experience who have retired. Under the advice of this Board any suggested entry into business could be proceeded with on sound lines, and if supported by a bonus or direct grant from the Government the Board should have power to inspect, alter, or condemn any project if not being carried out in a systematic manner. It might be advisable for the Board to travel to other countries to learn the means adopited to deal with raw material. With regard to coal, there is anthracite coal to be found near Brighton, about twenty-five miles distant from Westport, in a southerly direction, and connected by a good road. It is country where a railway could be cheaply constructed, as it presents no difficult engineering problems. It would be a good paying line, and the timber within its scope would pay for the cost of construction. It is a sound business proposition that the Government should commence without delay, as from Charleston and many' miles beyond there are vast deposits of lignite, a good household coal, with surface workings, which could be loaded into trucks by a mechanical shovel or grab, and placed on the markets in the principal towns at a very cheap rate, which would suit all classes of Hie community and lessen the cost of living. From it useful oils can be extracted, but it would suit a greater purpose by letting the people get it as fuel. It is undoubtedly one of the best enterprises that the State could take up, and by using lignite for household piurposes it would conserve our better classes of coal for more useful purposes, such as steam for manufacturing, &c, A number of men are employed on the co-operative system at Seddonville and Upper Mokohinui, about thirty miles in a northerly direction from Westport. There are many other places in the same locality that could be worked on similar lines, and all that the Government should be required to do is to erect bins and put down sidings for loading the coal into the railway-trucks. The railway is adjacent to several places that could be profitably worked, and it would provide remunerative employment for a large number of men. No doubt many of our returned soldiers who are returning in good health and have been mining in the past would gladly avail themselves of the opportunity. There is land of fair quality in the district which could bo taken up, and on which homes under the provisions of the Workers' Dwellings Act could be erected. Such a proposition would place more coal on the market, as well as get coal that would not pay a large company to open up, provide revenue by way of freight on the railway, and furnish royalty of so-much per ton to the Crown. In connection with this work of coal-mining we desire to point out to the Committee that in gold-mining the Government make grants of so-much per foot in putting in a, prospecting-tunnel, and assist in making roads as a means of ingress and egress, and it is hard to understand why no assistance is given to the coal-mining industry, more especially when it is a party of working-men who are endeavouring to develop the country. It is a matter to which the Government may well give favourable consideration. They would get a return from the royalty that is paid on every ton of coal produced, as well as freight on the railway, and the greater the output of coal the larger the revenue. Since starting, about three years and a half ago, McGuire and party have produced 9,704 tons of coal, giving by way of revenue in royalty nearly £250; the railage has amounted to £1,940, and harbour-improvement rate £121. If they as a party had not started this would have been a direct loss to the country, as well as the railway-line being practically idle. The average number of men employed has been seven, with dependants making twenty-six. McGuire and party have taken in two returned men as soon as they were discharged from the Forces, and in future when adding to. the party preference will be given to returned soldiers. It has been necessary to hire from the Mines Department tubs and rails, which, were in use in the State mine, on which they pay a rental based on the capital value of 10 per cent. And what assistance do they get from the Government? None whatever, as the following facts show : Previous to this year the rails were valued at £4 per ton, on which the rental was based; now a fresh agreement has been made valuing the rails at £15 per ton. Why the increase? Surely with four years' wear-and-te'ar the rails have not increased in value! Similar rails are being sold locally 'at £8 to £10 per ton. In respect to the tubs, they were valued at £4 each, and have still the same value placed on them. Why, the Mines Department themselves write down for depreciation annually 10 per cent., which is customary in all concerns. Is such treatment any encouragement to the worker? The increased capital value placed on the rails makes the annual rental £52 18s.,