A. —4b.

Mr. Meredith.] Which of your stations is the biggest ? Do they vary in size ?—Yes. Where do you get the biggest proportion of your copra from ? —We get a lot from Satalo, classified on that schedule as a B district. The other traders equally have stations spread about the island like yourself ? —Yes. There is only one price paid for copra throughout the Islands of Western Samoa, and the same price is paid by all traders ?—As far as I know. Surely you know. You suggest that you do not know whether you are buying better or not ? —How do I know ? Surely in business with others you know what the prices are ? Judge MacGormick: For which locality ? The Chairman.] I understand that the traders get together and agree upon a price ?—Yes ; the price in each district is agreed upon by the traders. Mr. Meredith : Then you do know ? Judge MacGormick: The price is agreed upon by the traders for each district. Mr. Meredith.] I take it that the traders pay the same price in each case, and that the price is worked back from the f.o.b. price in Apia : is that the idea ? —Yes. And in fixing that price do you allow no profit to yourselves on the cost of getting it in ? —I take it that you mean— —■ What price do you charge in your books—your landed cost or your actual selling-price here 1— I have based it on the actual landed cost here. There is, of course, a profit on the freight ?—Up to the end of August we made a profit of £100, which will be more than offset by repairs. That freight is the agreed price for all launch-owners operating in Apia ? —Yes. Do you suggest that all launch-owners have agreed upon a freight list that does not show a profit to themselves ?—I cannot answer that question in the way you put it. All copra in Samoa is not equal in quality ? —No. But you do not vary the price paid by yourselves ?—No. Then, do you pay more than the value for the poor quality or too little for the value of the higher ? On what do you fix your price, the lowest or the highest price ?—We fix our price 011 the general average quality as passed by the Government Inspectors. You admit that it is desirable to improve the quality ? —Yes. It can be done if care be taken ? —Yes, I take it so. If that object were achieved, the value would be greatly increased ?—-I would not say " greatly." It would be increased ? —Yes. If an increased price were paid to the Natives it would be to the benefit of the Natives ?— Naturally. If the traders got it, it would be to the benefit of the traders. If the traders paid no more for the increased quality of the copra and got more for the sale of it, the traders would get that, would they not I—Yes.1 —Yes. You know that the Natives have been complaining for some years past that they have not been getting fair treatment from the traders ? —I have seen it referred to. If the Natives choose to accept advances from the Government, and ship in that way, what objection can you have to it ? —The objection that we have is that we have been put to considerable expense in the erection of the trading-stations and catering for the Native requirements in the past; and, furthermore, we consider that the advance is far too high, and does not allow for the expenses we have to incur. Your objection is that it hurts your business ? —Yes. So you do not mind whether it is to the advantage of the Natives or not, so long as it does not hurt your business % —I do not say that. That price of £26 2s. 6d. you have quoted : what date is that ? About a week ago. Have you a copy of that cable with you ? —No ; it is a press message. Well, I put it to you that we have a copy of a press message here, dated the 19th of this month, saying that New Zealand Reparation Estates copra sold at £27 7s. 6d. : how do you account for that % —That is quite a different quality of copra to what we have to deal with. In what way ? —That is a standardized copra -hot-air kiln-dried copra. It is quite clear that if copra is standardized here there is going to be an appreciable difference in the price ? —Yes ; that is, if it is a standardized quality hot-air kiln-dried copra. I defy any one to get a standard quality right throughout the districts of Samoa, taking into consideration the weather experienced. You told us, Mr. Brady, that the price paid to the Natives was really based on the f.o.b. price Apia ? —To get at the price paid to the Natives we base it on the f.o.b. price Apia after taking into consideration the market price. You work back from the f.o.b. price Apia to see what you would give the Natives in the respective places ? —We work back from the c.i.f. value in London. To get back to Apia. Then you go back to what it costs to get it from the various places to Apia (f.0.b.), and then you give the Natives in the particular localities what you consider it right for them to get % —Yes. That is what I understood you said this morning. | Here followed a discussion on the figures in the schedule handed in by Mr. Brady.] Well in certain districts you actually deduct more from the Natives than you actually pay in transport ? —Yes.

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