J. G. HARKNESS.j

21

1.—13.

14. Mr. Hockly.] In regard to the charge of £3 a week for a boy, that includes his keep ? —Yes. He distinguishes between the man who is paid £3 10s., and makes an allowance of £1 10s. for his keep, but with the boy he includes bis keep in the £3. 15. Mr. McCombs.] The first statement is, " The figures hereunder arc based on the value or cost of the land required to carry one cow as being .£120." Will you tell us how many acres there are in connection with, thai farm?— That 1 could not answer. The position in connection with that is this: probably Mr. Morton may be taking that farm at a value of, we will say, £50 an acre. He says that practically 3 acres have to carry a cow, so that you have got to take three times fifty to make £150. He puts it down at £120. The best land in New Zealand to-day is selling at probably £160 an acre, antl it will take an acre of that land to carry a cow all the year I h rough. 16. Mr. Poland.] Mr. Morton says £250? —To carry one cow —not £250 an acre. He says, " It will be found, however, that in a great, many of our principal dairying districts this amount is altogether too low, the prices now being paid being in many cases up to £250." It is not £250 an acre, but £250 a cow. 17. Mr. McCom,bs.] He first of all puts before us an estimate of the value of land at £120 to carry one cow, and on that basis it is to cost 2s. Bd. per pound to produce butterfat. If his second statement is correct that prices are now being paid in many cases up to £250 —more than twice the amount—it would be interesting to know from you what you think it would actually cost to produce butterfat—something like 6s. Is the Committee to believe that there are some people in the Dominion who are paying such a price for land which would warrant 6s. per pound for butter? —No, it would not work out at that. 1 would point out to you that in giving the figures of his farm Mr. Morton values his land at £120 as being ample to carry a cow. He states that some other people are buying land to-day which he believes in some districts will take £250 to carry a cow. That is almost double; and double 2s. Bd. is not 65., or it was not when I went to school. That is only charging up the interest on the land. It does not follow that all the other charges are proportionately high. I would say this, speaking from experience: that in working a small farm of 50 acres of good rich land the expenses are proportionately higher than they would be if you were working a 100-acre farm. 18. Tlie Chairman.] The expenses would remain the same while the land might be more?— Yes. Mr. Singleton: I might mention that where Ihe £250 per acre has been paid for the land the yield of the cow would be greater on the average on the better land. It grows better grass and the cow gives a better yield. 19. The Chairman.] Then you have a statement from Mr. Motion?— Yes. 20. Is that statement prepared from actual experience in connection with his own farm?— I understand so. He prepared it while in Wellington. Mr. Motion's statement is as follows : —

" Average Cost of Production of Butter in the Waikato.

" Expenses. £ Interest .. .. . ■ •. • • • • • ■ • • 329 Depreciation .. • • • • ■ ■ • ■ • • • ■ 95 Maintenance—Shoeing, £15 ; repairs, £5 ; repairs fences, £10 ; repairs, sundry, £10 40 Manures—B tons at £10 .. .. .. .. .. •. 80 Labour—One man at £3 10s. = £182 ; one lad at £2 10s. = £130 .. .. 312 Rates and taxes .. .. .. • • • • • • ■ • 30 886 Income to be deducted - Pigs .. .. .. .. .. .. 100 £786 £786 for 6,300 lb. butterfat (35 cows at 180 lb. per year) = 29-9 d. per pound.

" (100-acre farm, fully improved, valued as a ;omg conci :rn. Capital Cost. Depreciation j Interest at at 10 per Cent. ,6 per Cent. 100 acres at £45 35 cows at £20 1 bull 7 pigs (s.iy) 2 horses at £30 Spring dray and harness Separator Implements — S.F. ploughs, £7 ; disks and harrows, £15 ; harness, &c, £7 Top-dresser Sundries £ 4,500 700 20 50 60 4:5 45 29 £ s. d. 70 0 0 2 0 0 6 0 0 4 10 0 4 10 0 2 18 0 i J £ 270 42 13 4 30 21 3 0 0 2 2 0 5,500 95 0 0 329