CORRESPONDENCE RELATIVE TO PREMIUMS ON NEW INDUSTRIES AND MANUFACTURES IN THE COLONY OF VICTORIA.

Appendix to the Journals of the House of Representatives, 1869 Session I, D-23

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CORRESPONDENCE RELATIVE TO PREMIUMS ON NEW INDUSTRIES AND MANUFACTURES IN THE COLONY OF VICTORIA.

PRESENTED TO BOTH HOUSES OP THE GENERAL ASSEMBLY, BY COMMAND OP HIS EXCELLENCY.

"WELLINGTON. 1869.

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No. 1. Inspector-General of Customs to the Hon. Commissioner of Trade and Customs. Department of Trade and Customs, Sir,— Melbourne, 15th May, 1868. In accordance with instructions received from the Hon. Mr. Francis (dated the sth instant), I, in conjunction with the gentlemen whose names appear in the margin, proceeded on the 12th instant to the premises of the Victorian Woollen and Cloth Manufacturing Company, at Geelong, for the purpose of inspecting certain cloth which the Company had manufactured, and reporting upon the quality and quantity of the same for the information of the Government; and I have now the honor to hand you a report containing full particulars of our inspection. In thus placing before you the result of our visit, it may be expedient that I should briefly state the circumstances which induced your predecessor to issue the instructions above alluded to. As you are aware, the sum of £5,000 was granted by the Legislature in 1865 to the Government, for the encouragement of novel industries, and a Board was subsequently appointed by the Governor in Council to consider applications and recommend premiums in cases which they considered deserving of assistance. The labours of the Board are detailed in a report dated 19th June, 1866, of which I attach a copy, and the regulations will be noticed which were framed for the guidance of the Board. Among the applicants were the Victorian Woollen and Cloth Manufacturing Company. At the time of their request to be included in the list of applicants for assistance from the novel industry vote, they had not manufactured any cloth, but expected to be in a position to do so before the middle of 1866, as their factory was in course of erection, and the requisite machinery had been ordered from England. Under these circumstances, and recognizing the vast importance to the Colony of the proposed industry, the Board awarded £1,500 for payment to the Company on fulfilment of the following conditions, viz.: —" There must be produced on or before the 20th December next (1866) not less than 5,000 yards of woollen tweed, of a good quality, fit for ordinary clothing, or not less than 2,000 pairs of blankets of good average quality and size. It must be understood that the quality of both or either production must be to the satisfaction and subject to the judgment of the Board." The decision of the Board was communicated to the Company on 29th May, 1866, and in a letter dated Ist June they expressed their hopes of being able to comply with the terms and conditions required by the Board. In October following a letter came to hand from the Secretary expressing his regret that, from advices which had just been received from England to the effect that the machinery would not reach Victoria before the beginning of December, there was no probability of the Company being in a position to fulfil the conditions imposed by the Novel Industry Board, and requesting, in consideration of the many difficulties they have to contend with, &c, that the £1,500, which would necessarily lapse into the general revenue on the 31st December, would be placed on the estimates for the following year. This request was submitted by your predecessor for the consideration and decision of the Cabinet, and the award appeared in due course on the Supplementary Estimates of 1866. On the 19th December, 1867, a letter was addressed by direction of the Hon. Mr. Francis to the Company, inquiring the extent and description of the manufactures actually produced at their establishment, and a reply was received that they had commenced the manufacture of woollen tweeds early in October, but an accident had unfortunately occurred on the 25th of that month, which delayed their operations until the 21st December, when work was resumed. In this communication it was mentioned that a deputation from the Board of Directors would be happy to wait upon the Hon. Mr. Francis, to enter into the actual extent of their operations. They were informed that it was considered preferable, instead of a deputation waiting on the Commissioner, for the Company to furnish a statement containing full particulars concerning the industry, which could be placed on record for further reference. This suggestion was acted upon, and the requisite information was furnished in a letter dated 31st December, 1867, respecting cost and description of machinery, buildings, &c. In this communication allusion was made to the untoward accident which occurred on 25th October, namely, the breaking of the pinion of the main shaft; and the Directors were of opinion that if it were not for this mishap they would have had some thousands of yards of cloth made and finished before the end of 1867. On the Bth April the Directors informed the late Commissioner that the machinery was in full working order, and that they had 3,000 yards of cloth ready for the market. On the 15th idem a further letter was received, requesting to be informed if the Government desired to have the cloth inspected before the same was sold, as the Company proposed to place 4,000 yards in the market shortly. This inquiry was made, to use the words of the Secretary, " with respect to the vote of £1,500 in this Company's favour for first manufacture." An answer was sent in reply based upon a minute of the Hon. Mr. Francis —copy attached. Shortly after, the Directors intimated that they had the required quantity of cloth ready for inspection, and a Board was nominated, whose report is attached.

P. T. Sargood, Esq. Thomas Alston, Esq.

23rd December, 1867.

CORRESPONDENCE RELATIVE TO NEW INDUSTRIES AND MANUFACTURES IN VICTORIA.

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In placing before you the above particulars of the action taken by the late Novel Industry Board and the Hon. Mr. Francis, in regard to the application of the Victorian Woollen Company, I may be permitted to hope that the Government will favourably recognize the industry and perseverance which have so successfully surmounted difficulties of no ordinary description, and firmly established an industry so advantageous to Victoria. I have, &c, The Hon. the Commissioner of J. Gutheie, Trade and Customs. Inspector-General of Customs. Copy of Minute by the Hon. J. Q. Francis. « Without expressing an opinion binding on the Government, or even implying assent of the Legislature to any premium at this late date to the applicants, the Commissioner of Customs must decline instructing an official inspection of a quantity of woollen tweed or other cloth less than the 5,000 yards mentioned in the Board's final report, dated 19th June, 1866. " 16th April 1869. " " J. G. F."

Enclosure in No. 1. Department of Trade and Customs, Sib, — Melbourne, 22nd May, 1868. We have the honor to state that, in compliance with the request of your predecessor, the Hon. J. G. Francis, we visited the establishment of the Victorian Woollen and Cloth Manufacturing Company, at Geelong, on the 12th instant, for the purpose of inspecting certain cloths which the Company had manufactured, and reporting relative thereto for the information of the Government. It now affords us considerable pleasure to be able to state that, both in quality and colouring, the cloths submitted to us far exceeded our expectations, and are, in our opinion, well adapted for general use, and likely to be in great demand if produced at a moderate price. We measured 5,343 yards of various makes which the Company had ready for the market, and in addition there was a considerable quantity in course of manufacture. In furnishing particulars, we conceive from the tenor of our instructions that we have fulfilled the object of our mission; still it may not be considered out of place if we here give a few particulars connected with this highly interesting establishment. The works are situated on the banks of the Barwon, about a mile from Geelong, and at the time of our inspection were in operation. They appear to be in excellent order, well arranged and well managed. The operations of spinning and weaving are carried on by a beautifully-constructed engine ■of twenty-five horse power. The production of the factory at the present time is about 1,000 yards of tweed per week, but when in complete working order, and the persons employed have been accustomed to the work, a much larger quantity will be made. This establishment, it may be observed, gives employment to seventeen men, twenty-four women, nine boys, and two girls, who earn fair wages, viz., men, 355. ; women, 17s. 6d.; lads and girls, Bs., per week. The Company have incurred great expense in establishing this industry, and the outlay on factory buildings, machinery, &c, amounts to £15,717 13s. Having given the foregoing brief particulars, we now beg to record our opinion that the Victorian Woollen and Cloth Manufacturing Company are entitled to much commendation for the enterprise and perseverance evinced in establishing among us so important an industry, and we consider they are highly deserving of the sum of £1,500, conditionally awarded to them in June, 1866, by the late Novel Industry Board. We have, &c, R T. Sargood, Thomas Alston, The Hon. W. Bayles, J. Gutheie, Commissioner of Trade and Customs. Inspector-General of Customs.

No. 2. Mr. J. Gtjtheie to the Hon. the Chief Secretary. (C. 69-147.) Department of Trade and Customs, Sir,— Melbourne, 21st April, 1869. In returning to you the accompanying letter from the Hon. the Chief Secretary of New Zealand, requesting information respecting local industries in Victoria, I am directed by the Hon. the Commissioner of Trade and Customs to forward to you, for the information of the New Zealand Government, the enclosed copies of Eeports of Boards appointed to deal with applications for rewards for new manufactures and industries, which will show the course adopted by this Government, and the enterprises to which rewards were given. With respect to the last paragraph of Mr. Eolleston's letter, I am to request that reference may be made to the letter and report enclosed with respect to the Victorian Woollen and Cloth Company, by which it will be seen that the manufacture of tweed cloths has been successfully established. The Company has not yet commenced to make blankets, but intend to do so shortly, and another factory is now being erected at Geelong, the machinery for which has been ordered expressly for the purpose of blanket making. As regards beetroot sugar, though prizes have frequently been offered by Agricultural Societies, and large sums have been spent in the endeavour to establish the manufacture, it has not succeeded in this Colony. I have, &c, J. Giithbie, The Hon. the Chief Secretary. Inspector-General.

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Enclosure 1 in No. 2. Regulations for expending the Sum of JPive Thousand Pounds, voted hy Parliament in the Year 1864 for the promotion of New Manufactures and Industries. 1. The Governor in Council shall appoint a Board, to whom shall be referred the consideration of all claims for premiums or rewards under the above grant. 2. Such sums as may be recommended by the said Board shall (subject to the approval of the Governor in Council) be paid to the persons or company who shall first successfully establish in Victoria any new manufacture or production. 8. Precedence of claim will be given to the following items, and the reward measured by the excellence and extent of the manufacture or article produced: — Woollen Goods. —Blankets, rugs, flannels, cloth, or other woollen fabrics of general use. Papbe.—Wrapping, printing, or writing. Glass. —Sheet or plate glass, tumblers, wine glasses, or bottles. Ceockeey.—China, porcelain, or any of the finer classes of earthenware. Leathee. —For excellence in the manufacture of leather for other and higher purposes than the sole and kip leather now produced. Olive Oil. , —The produce of trees grown in Victoria (the quantity not being less than 100 gallons). Flax. —Not less than one ton, properly prepared for manufacturing purposes. Flax (oe Linseed) Oil.—Not less than 100 gallons, properly prepared for manufacturing purposes. Hemp.—Not less than one ton, properly prepared for manufacturing purposes. Cottohv —Not less than one ton, properly prepared for manufacturing purposes. Hops.—Not less than one ton, properly prepared. Silk. —Not less than one cwt., the produce of silkworms bred in Victoria. 4. It shall be competent for the Board to receive, and, if approved of, to recommend rewards for other articles of local manufacture or production, or to offer and publish such special rewards or premiums as it may think fit; and also to refuse reward or premium to any new article of growth or manufacture, if it is not considered to be of merit and usefulness sufficient to entitle it to favourable consideration.

Enclosure 2 in No. 2. Department of Trade and Customs, Melbourne, 30th December, 1864. The Board appointed by His Excellency the Governor in Council, to consider claims for rewards or premiums out of the vote of £5,000 granted for the promotion of new manufactures and industries in accordance with the [Regulations submitted to Parliament on the Ist June last, have the honor to submit the following Eeport :■ — The Board held their preliminary meeting on the 7th July last, when Mr. Francis, the Commissioner of Trade and Customs, was elected Chairman, and Mr. Greville, Secretary. It was resolved that a notice should be published in the Government Gazette requesting persons, deeming themselves entitled to rewards or premiums under the Eegulations, to forward their claims to the Secretary, and directing particular attention to the 4th clause of the Eegulations. In accordance with that decision, a notice, accompanied by a copy of the Eegulations, was duly published in the Gazette, and copies were also forwarded to the Mayors of all the boroughs in the Colony for exhibition in their respective Town Halls. On the Ist November the Board held another meeting, at which it was resolved that further public notice should be given through the newspapers; that, with the view of enabling all persons desirous of making application for rewards or premiums under this vote to prefer their claims, applications would be entertained up to the 30th November (after which date none would be received), and that a meeting of the Board should be held on the Ist December to consider all claims previously lodged. It was further resolved that the consideration of all applications should be postponed to the date specified. In conformity with the above resolutions, the Board met again on the Ist December, when all applications previously received, fifty-eight in number, were considered. The Board resolved that the application of the vote of £5,000 must, under its terms, be limited to new manufactures and industries which had been or might be initiated or perfected since the vote received the sanction of Parliament. In arriving at this decision the Board were actuated by what, it is understood, was the intention of the Legislature in passing the vote, and by the 2nd clause of the Eegulations, which provides that " such sums as may be recommended by the said Board shall (subject to the approval of the Governor in Council) be paid to the persons or company who shall first successfully establish in Victoria any new manufacture or production." The Board then decided that thirty-five of the applications were prohibited under the resolution above referred to, or for other reasons which were carefully considered in each individual application, as not coming within the intention of the vote ; that the remaining applications should be reconsidered ; and that the applicants should be requested to furnish more detailed information as to the date of commencement, the quantities manufactured, the prices wholesale and retail, the number of persons engaged in the manufacture, and the periods during which they had been or were to be employed. On the 15th December the reserved applications, twenty-three in number, were reconsidered, and it was decided that eight of the number were prohibited for similar reasons to those given with respect to the claims disallowed on the Ist instant. It was also resolved that Mr. Thomas Kenny's claim, with respect to the manufacture of paper, could not be acceded to, as, although extensive preparations in plant and machinery are in progress, the actual production of paper has not yet been accomplished.

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CORRESPONDENCE RELATIVE TO NEW

The Board then proceeded to the consideration of the remaining applications, and resolved that the manufactures and industries of the following applicants were worthy of rewards or premiums : — Mr. J. Miller.—Eope. Mr. J. Politz. —Cigars from Colonial leaf. Messrs. Uric, Munn, and Young.-—Starch and Maizena. Mr. J. Bosisto.—Essential oil from the " Eucalyptus odorata." Mr. P. Fordhan. —Oilman's Stores. Mr. W. R. Blazey. —Pianos from Colonial "Woods. Mr. "W. Sloggatt. —Thumb, Prussian, and Ultramarine Blue. Messrs. Boardman and Slater. —Cultivation of Peppermint, Lavender and Hoses for Distillation. Mr. J. Zevenboom.—Brushware. The further consideration of other claims was postponed in the absence of samples and information, which were requested to be furnished at next meeting. On the 21st December another meeting was held, when it was resolved that the white soft-soap, manufactured by Messrs. Hood and Co., and the soda crystals, made by Messrs. Clarke, Hoffman, and Co., were worthy of rewards or premiums. The Board then proceeded to the consideration of the premiums to be awarded to the successful applicants, and they resolved that the manufactures and industries should be divided into three classes —those of the first class to receive a premium of £100, those of the second of £50, and those of the third of £25. After careful examination into the comparative merit and public utility of the respective manufactures which the Board had decided were worthy of premiums, it was agreed that the manufactures and industries of Messrs. J. Miller, J. Politz, and Uric, Munn, and Young, should be placed in the first class ; those of Messrs. Eordham, Clarke, Hoffmann and Co., Hood and Co., and Bosisto, in the second ; and those of Messrs. W. E. Blazey, "W. Sloggatt, Boardman and Slater, and J. Zevenboom, in the third. The Board would here exjiress their regret that no claims have been substantiated for any of the ai'ticles specified in the third clause of the regulations, and to which it was provided that precedence should bo given. Under these circumstances, they are of opinion that the intentions of Parliament would be best promoted by disposing of only a small portion of the £5,000 granted for this year; and it is this consideration that has led them respectfully to submit, for the approval of His Excellency in Council, that only the rewards specified, amounting in all to the sum of £600, should be awarded to the manufactures and industries before enumerated, as being of comparatively minor importance. They would, however, suggest respectfully to the Government, that a similar amount to that granted for the present year should be placed upon the additional estimates for 1865, as there is reason to believe that several undertakings of great promise, calculated to afford a large amount of employment, and to be of great service to the community at large, will be successfully established during the ensuing year. In support of this view the Board may be permitted to remark that it was with great regret that they felt compelled to disallow several of the applications submitted to them on account of the incompleteness of the undertakings. In particular they would mention the claims of the following applicants: —■ Mr. Thomas Kenny. —This gentleman has leased the premises known as Dight's Mill, and has ordered the requisite machinery for the manufacture of paper from England. Messrs. Oasassa, Ravenna, fy Co. —This firm has imported a quantity of a peculiar description of wheat, as the best material from which the articles they manufacture are made. This wheat is now sown in various localities in the Colony, and, it is stated, could not have been procured here. Mr. A. Martelli. —Mr. Martelli has imported hemp seed and Eussian wheat; and seven-years-old properly grafted mulberry trees from Italy, with a view to sericulture. The Board have become aware that the narrow limits of the present vote have prevented applications to promote the development of industries or productions which it is most desirable should be early established in this Colony. By order of the Board. Chalonee Geetille, Secretary.

Paper. Macaroni and Vermicelli. Russian Hemp—Mulberries.

Enclosure 3 in No. 2. Additional Report of Board appointed to consider claims for Rewards or Premiums for New Manufactures and Industries. Offices, Custom House, Melbourne, 4(;h September, 1866. The Board appointed by the Governor in Council, on the 2nd October, 1865, to consider claims for rewards or premiums for the promotion of new manufactures and industries, in accordance with the Regulations submitted to Parliament on the 12th of the previous i uly, iiave the honor to submit the following Report in addition to that furnished on the 19th June last: — It will be noticed, on reference to the Eeport alluded to, that an award of £200 was made to Mr. D. McAndrew, of Drysdale, conditionally on his producing one ton of flax before the 31st August. Although more time was actually allowed to Mr. McAndrew than he had applied for to bring forward the quantity named, it came to the knowledge of the Board last month that, owing to circumstances over which he had no control, he would be unable to fulfil the condition specified. As Mr. McAndrew would unquestionably have obtained a premium if he had not undertaken to produce a ton of flax, as mentioned in the 3rd clause of the [Regulations, the Board considered that a hardship would be inflicted if he received no recognition at their hands, especially as to his enterprise in establishing steam machinery for the preparation of flax is attributable the large breadth of flax-seed now sown in the neighbourhood of his mill. A special meeting of the Board was therefore held, on the 31st ultimo, to

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consider this case, and after due deliberation it was unanimously resolved that a special premium of £100 should be awarded to Mr. McAndrew, under the 4th clause of the Eegulations, for the establishment of steam machinery for the preparation of flax. Appended hereto is an extract from the Board's previous Eeport relating to Mr. McAndrew's establishment. J. Gr. Feancis, Chairman.

Extract alluded to. Mr. McAndrew, of Bellerine, is a grower of flax, and has fitted up machinery for scutching. He occupies the old Bellerine flour mill, which he has had fitted up with flax-dressing machinery. The machinery was at full work in May last. It is driven by a sixteen-horse engine, and consists of one set of flax-breaking rollers and two scutching-wheels, with provision for extending shafting so as to employ full power of engine. In consequence of the successful starting of the machinery, the neighbouring farmers and others have applied to the Board of Land and Works for leases of the reserves for flax culture. Applications have been made for 2,000 acres, in allotments of twenty acres each. Independently of these applications, there is a very general intention among the neighbouring farmers to put a considerable breadth of land under flax this season. Mr. McAndrew himself intends to sow forty acres. He will shortly be in a position to claim the reward for the production of one ton of flax.

Herniations for expending the sum of Five Thousand Pounds, voted iy Parliament in the year 1865 for the promotion of New Manufactures and Industries. 1. The Governor in Council shall appoint a Board, to whom shall be referred the consideration of all claims for premiums or rewards under the above grant. 2. Such sums as may be recommended by the said Board shall (subject to the approval of the Governor in Council) be paid to the persons or company who shall have, since the Ist January, 1864, first successfully established or may hereafter first successfully establish in Victoria any new manufacture or production. 3. Precedence of claim will be given to the following items, and the reward measured by the excellence and extent of the manufacture or article produced : — Woollen" Goods —Blankets, rugs, flannels, cloth, or other woollen fabrics of general use. Papee.—Wrapping, printing, or writing. Glass. —Sheet, or plate glass, tumblers, wine glasses, or bottles. Ceockeey.—China, porcelain, or any of the finer classes of earthenware. Leathee. —For excellence in the manufacture of leather, for other and higher purposes than the sole and kip leather now produced. Olive Oil. —The produce of trees grown in Victoria (the quantity not being less than 20 gallons). Flax. —Not less than one ton, properly prepared for manufacturing purposes. FiiAX (ob Linseed) Oil. —Not less than 50 gallons, properly prepared for manufacturing purposes. Hemp.—Not less than one ton, properly prepared for manufacturing purposes. Cotton. —Not less than one ton, properly prepared for manufacturing purposes. Hops.'—Not less than one ton, properly prepared. S ILK —Not less than half cwt., the produce of silkworms bred in Victoria. 4. It shall be competent for the Board to receive, and, if approved of, to recommend rewards for other articles of local manufacture or production, or to offer and publish such special rewards or premiums as it may think fit. And also to refuse reward or premium to any new article of growth or manufacture, if it is not considered to bo of merit and usefulness sufficient to entitle it to favourable consideration.

Enclosure 4 in No. 2. Report of the Board appointed iy the Governor in Council to consider Claims for Bewards or Premiums for the Promotion of New Manufactures and Industries. Offices, Custom House, Melbourne, 19fch June, 1866. The Board appointed by the Governor in Council, on 2nd October, 1865, to consider claims for rewards or premiums for the promotion of new manufactures and industries, in accordance with the Eegulations submitted to Parliament on 12th July last, have the honor to submit the following Eeport: — With the view of giving every publicity to the Eegulations, it was resolved that'they should be inserted in the Government Gazette, the Melbourne daily and weekly papers, also in several of the country journals, with a notice to the eifect that all persons who might consider themselves entitled to rewards or premiums under the Eegulations, should send in their applications to the Secretary on or before the 15th November. Copies of the Eegulations and notice referred to were also forwarded to the presidents of shires, chairmen of road districts, mayors, with other officials, and also to postmasters, with a request that they would cause the same to be exhibited at their several offices, &c. Prior to the expiration of the date specified (15th November), it was considered expedient to extend the time for receiving applications to the Ist December, and a notice to that effect was accordingly advertised. In all their proceedings, the Board have adhered to the Eegulations, which they consider it advisable herewith to reprint; their functions necessarily being limited to obeying the directions assented to by Parliament.

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CORRESPONDENCE RELATIVE TO NEW

Regulations for Expending the sum of Five Thousand Pounds, voted oy 'Parliament in the Tear 1865 for the Promotion of New Manufactures and Industries. 1. The Governor in Council shall appoint a Board, to whom shall be referred the consideration of all claims for premiums or rewards under the above grant. 2. Such sums as may be recommended by the said Board shall (subject to the approval of the Governor in Council) be paid to the persons or Company who shall have, since the Ist January, 1864, first successfully established, or may hereafter first successfully establish, in Victoria, any new manufacture or production. 3. Precedence of claim will be given to the following items, and the reward measured by the excellence and extent of the manufacture or article produced : — Woollen Goods. —Blankets, rugs, flannels, cloth, or other woollen fabrics of general use. Papetj.—Wrapping, printing, or writing. Glass. —Sheet or plate glass, tumblers, wine glasses, or bottles. Ceockebt. —China, porcelain, or any of the finer classes of earthenware. Leatiibh. —For excellence in the manufacture of leather for other and higher purposes than the sole and kip leather now produced. Olive Oil.' —The produce of trees grown in Victoria (the quantity not being less than twenty gallons). Flax.—Not less than one ton, properly prepared for manufacturing purposes. Flax (ob, Linseed) Oil.—Not less than 50 gallons, properly prepared for manufacturing purposes. Hemp.—Not less than one ton, properly prepared for manufacturing purposes. Cotton".—Not less than one ton, properly prepared for manufacturing purposes. Hops.—Not less than one ton, properly prepared. Silk. —Not less than half a cwt., the produce of silkworms bred in Victoria. 4. It shall be competent for the Board to receive, and, if approved of, to recommend rewards for other articles of local manufacture or production, or to offer and publish such special rewards or premiums as it may think fit; and also to refuse reward or premium to any new article of growth or manufacture, if it is not considered to be of merit and usefulness sufficient to entitle it to favourable consideration. It will be seen, firstly, that under the foregoing Regulations the Board are precluded from allowing premiums to any person who may have commenced the establishment of a new manufacture or industry before the Ist January, 1864. The principle may, at first sight, appear objectionable, as, of course, the earlier the commencement, the greater the merit of the promoter; but, as it would be difficult, in the state of the colony, to be retrospective, the fixing of a determinate and recent date has, in the opinion of the Board, been wise. The result, however, has been, both in this and the preceding year, to exclude a considerable number of meritorious applicants, which the Board regret but cannot remedy. It will be seen, secondly that the terms of Regulation No. 2 preclude the Board, in most cases, from offering any premium for articles which were inchoate, but not completed. This restriction has been peculiarly tested during the present year. A considerable number of the applicants have been desirous to obtain advances upon the strength of undertakings which are only just commenced or half carried through. This is the case with the two most important and, prospectively, most successful industries, paper making and woollen goods. In the first case a large portion of very valuable machinery has actually arrived, and an expenditure of some thousands of pounds has been already incurred; in the latter, an amount of machinery nearly, equal in value has been commissioned to be purchased in England, and is probably by this time on its way out. The sum which the Board have allotted respectively to each, subject to conditions hereinafter specified, is £1,500, absorbing three-fifths of the entire grant; but they have felt themselves legally precluded from advancing any portion of the same, as will be noticed in the conditions referred to, until an actual sample, of adequate quantity and quality, corresponding with the Regulations, has been produced. The above applies to the various articles of agricultural produce, of which, in most cases, no samples have been forwarded, or imperfect ones. Mr. McAndrew, ex. gr., can only receive £200, prospectively upon the production, within a specified time, of one ton of flax. Should the present grant be extended for the year 1867, it is almost certain that a very considerable quantity of at present incompleted work will have become eligible for reward. The only discretionary power which the Board have possessed has been under the 4th clause of the Regulations. The language of this clause has enabled them, in certain cases, to extend a limited assistance to enterprises precluded under the 2nd and 3rd clauses. The first meeting of the Board took place on the sth day of October, 1865, when five members, Messrs. Anderson, Francis, Harrison, Reeves, and Riddell, were present, by whom the Hon. J. G. Francis, Commissioner of Trade and Customs, was elected Chairman. The minutes of the proceedings will be seen, in a condensed form, in Appendix B. At the next meeting, which was held on the sth December, sixty-seven applications, which had been received on or before the Ist idem, were laid before the Board, and at that meeting, and those which, subsequently took place, were carefully considered in their order of receipt. The following is the list of the applications in question: — HST OP APPLICATIONS FOE EEWABDS OE PIUSHIUMS JOB THE ESTABLISHMENT OP KEW MANtTFACTUBES, INDUSTEIES, ETC. No. 1. Loughnan, Brothers, Melbourne. —Causing the cultivation of tohacco, and successfully establishing its manufacture in Victoria. No. 2. Q-. F. Chapman, Carloton. —Inventor of a certain description of medicine. No. 3. P. O. Grady, Kilmore. —Cultivation of tobacco, and erection of machinery for the manufacture thereof. No. 4. A. Cornwell, Brunswick.—Manufacture of chemical ware, &c. No. 5. H. Watts, Warrnambool.—Being the first person who has grown flowers, and distilled them for their essences, for perfumery. No. 6. E. M. Meyer, Ballarat.—Manufacture of chloroform, essences, &c.

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No. 7. J. C. Lyons, Ballarat. —Manufacture of manure from ligneous potash deposits. No. 8. E. McD. Miller, Eitzroy.—Establishing a cartridge manufactory, and for quality of cartridges prepared thereat, requesting premium for manufacture of pistol cartridges. No. 9. L. E. Keogh, Hamilton (Wannon Woollen Mill Company).—Manufacture of woollen cloth. No. 10. Uric, Young, and Co., Melbourne.—Bequest reconsideration of claim for reward made in 1864, for establishing a starch and maizena manufactory, &c. No. 11. E. Brandt, Sandhurst. —Manufacture of shingles and for shingle machinery. No. 12. Pansacker and Evans, Melbourne.—Manufacture of trunks, portmanteaus, &c. No. 13. E. Eordham, Melbourne. —Preserving fish, manufacture of pickles, and canister fruits. No. 14. W. Sloggatt, Malvern Hill —Renewal of claim made in 1864, for manufacture of thumb-blue. Has commenced to make dark thumb-blue. No. 15. G. E. Dodson, East Collingwood. —Establishing a manufactory of male and female axles. No. 16. E. Davies, Brunswick. —Colonial kid, for upper part of boots. No. 17. J. Clarke, Camberwell. —Paperhangings. No. 18. Stone and Zevenboom, Melbourne. —Brushware. No. 19. James A. Kidd, Eltham. —Preparation of flax, &o. Wo. 20. Honnens, Voekler, and Co., Maldon. —Manufacture of glue. No. 21. A. Douglass and Co., G-eelong. —Manufacture of certain descriptions of leather. No. 22. Michael Donaghy, Geelong.—Manufacturer of Manila rope cables, also of flat ropes. No. 23. John Martin, "Australasian Patent Blast Compound Company," South Yarra. —Patent safety compound, a nonexplosive substitute for blasting powder. No. 24. R. Allison, Diggers' Rest Station. —Firebricks, and fire-resisting material (patented). No. 25. Wilkie, Kilner, and Co., Melbourne. —Manufacture of pianos. No. 26. E. Hughes, East Collingwood. —New invention in treatment of antimony, &c. No. 27. E. Chambers, Carleton. —Manufacture of bellows. No. 28. Campbell and Vaughan, Beveridge.—Establishing a tobacco manufactory, and working their own leaf. No. 29. Secretary, Victoria Woollen Cloth Manufacturing Company, Geelong.—Manufacture of tweeds, rugs, and blankets. No. 30. N. Chevalier, Melbourne. —Chromo-lithographs. No. 31. Gγ. P. Steiling, Richmond.—Crockery. No. 32. G. Tolhurst, Prahran. —Composition of the oratorio " Ruth," and other works. No. 33. W. Blazey, Richmond.—Manufacture of pianos; first to introduce musk wood into manufacture of pianofortes. No. 34. J. Craig, Moolap.—Manufacture of flax. No. 35. W. S. Round, Ballarat.—lmprovement in manufacture of wrought-iron chains. No. 36. Nil. No. 37. W. Hutchison, Melbourne.—Patent colonial ovens. No. 38. Secretary, Chesterfield Pottery Company, Eootscray.—Pottery. No. 39. W. Stanway, Melbourne. —Invention of a new method of constructing easy chairs. No. 40. E. Nightingale, Melbourne. —Manufacture of fancy boxes. N0."41. E. D. and E. Mealy, Etzroy.—Straw-plaiting, manufacture of straw hats. No. 42. Emma Beddison, Eitzroy. —Coach and railway carriage trimmings. No. 43. James Nelson, Hastings Salt Works, Western Port Bay. —Erst person who made salt by evaporation from sea water. No. 44. Rowden Brothers, Melbourne. —Galvanizing iron. No. 45. W. Gγ. Haughton, Richmond. —Perambulators, additions and improvements introduced. No. 46. Isaac Phillips, Etzroy. —Manufacture of boys' suits from second-hand clothing. No. 47. Lecroissette and Bates, Melbourne.—Crystallizing fruits, &c. No. 48. Robert Amos, Melbourne. —Manufacture of iron; about to erect a two-ton steam-hammer. No. 49. Gγ. W. Prangst, Melbourne. —Manufacture of stearine candles. No. 50. G. M. Stone, Collingwood. —Discovery of a material in 1862, near Geelong, adapted for the manufacture of cement; manufactured some. No. 51. E Skinner, Melbourne. —Crinolines. No. 52. J. S. Rhodes, Brunswick. —Crockery. No. 53. A. Martelli, Lillydale. —Cultivation of hemp. No. 54. Ditto. —Cultivation of hops. No. 55. Ditto. —Cultivation of Russian wheat. No. 56. Ditto.—Cultivation of mulberry. No. 57. Tredinniek and Corin, Ballarat.—lntroduction of a machine called a " buddle," for saving fine gold from stamped tailings, &c. No. 58. W. Evett, Emerald Hill.—Manufacture of gold-leaf. No. 59. Smith and Son, Melbourne.—Superior description of biscuit. No. 60. George Encham, Richmond. —Organ-building, and manufacture of materials connected therewith. No. 61. James Mill, Melbourne. —Rope; has manufactured £18,000 worth during last twelve months. No. 62. Thomas Kenny, Melbourne. —Paper. No. 63. J. Mealy, Eitzroy. —Straw-splitters. No. 64. Clark and Co., Melbourne. —Manufacture of chemicals. No. 65. Pedro Nisser, Melbourne. —Invention of an improved powder for ordinance and blasting purposes. No. 66. James Earral, Melbourne. —Leather. No. 67. D. McAndrew, Drysdale.—Competitor for best ton of flax, &c. No. 68. A. M. Hutchison, Melbourne. —Substitute for embroidery or braiding. "With regard to many of the claims, it may be remarked that the applicants failed to supply sufficient data to enable the Board either to form an estimate of the value or utility of the industries, on account of which the claims were preferred, or to decide whether they could be dealt with under the Regulations. In these cases the applicants were written to for the required information, viz.: —Date of commencement of manufacture; price at which produced; number of persons employed, &c, &c. In reference to some of the manufactures, it was resolved (instead of trusting wholly to correspondence) to appoint members of the Board, and other gentlemen, to visit the establishments for inspection, and report, the Board being of opinion that such a course would place them in a better position to form a correct estimate of the value and usefulness to the Colony of the undertakings referred to. The Board in several instances, it may be here remarked, considered it their duty to obtain, for their better guidance, the opinions of competent judges relative to some of the industries on account of which claims were made. The Board having obtained all the required information to guide them in forming their decisions, the applications were examined, and the attached schedule shows the result of their deliberations. ..>

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CORRESPONDENCE RELATIVE TO NEW

PREMIUMS AWARDED BY BOARD.

* The machinery must be able to produce ten tons at least of paper, weekly. The quality to be good brown, wrapping, printing, grocer's or draper's papers. No pecuniary assistance can be granted until the goods are produced, which must not be later than the 20th December next. t There must be produced on or before 20th December next, not less than 5,000 yards of woollen tweed, of a good quality, fit for ordinary clothing, or not less than 2,000 pairs of blankets, of good average quality and size, it being understood that the quality of both or either production must be to the satisfaction, and subject to the judgment of the Board. % On production of one ton flax before 31st August next. It is to be regretted that the following applications only reached the Secretary subsequent to the Ist December. The Board were unable, in consequence, to consider the same for premiums. APPLICATIONS AITEB DATE, AND CONSEQUENTLY DECLINED. G. Tolhurst, Prahran. —Lithographing music. M. Murphy, Melbourne. —Portmanteaus. H. Robottom,* Melbourne. —Chasing. H. Venables,* Warrnambool.—Growing and curing madder, &c. George Heath, f Inspector of Distilleries.—Spirits made from saccharine matter extracted from grass-tree, and freeing the spirit from a resinous and offensive smell, which appeared in the course of manufacture. J. G. Miller.—Deep-sea fishing by galvanic currents. E. Geach, Richmond.—Gentlemen's ties, &c. J. M. Greathead, Carleton. —Bonnet shapes. S. Henderson, Melbourne. —Crinolines. The total number of meetings has been twelve, of which nine have been fully attended, and three have lapsed, owing to a majority of the members being connected either with Parliamentary or official duties. The duration of the meetings has averaged three hours and a quarter. The number of letters received has been 230, and the answers and circulars returned amount to 1,070. The number of visits of inspection made has been twenty-eight, of which eleven have been in the country districts. In the other cases, the Board has decided according to the samples sent in ; but in no instance have they given a decision without a visit of personal inspection, or a satisfactory exhibition of samples. The Board have now the honor to report their opinion upon the general result of the Government premiums, without touching upon the vexed questions of fiscal policy. The result of their experience is, that a considerable number of new industries and manufactures are rooting themselves in the country, which, in process of time, and at no distant date, will be self-sustaining. They may be considered under two heads. (1.) Agricultural or the Production of Baw Produce. —The tangible result shown in the growth of

* Mr. liobottom forwarded a well-executed piece of silver chasing for the inspection of the Board. Mr. Venables, of Warrnambool, claimed a premium for having grown and prepared the first crop of madder produced in Victoria. t A very excellent sample of spirits, made in July, 1864, hy Mr. Heath, Inspector of Distilleries, from the saccharine matter extracted from the grass-tree, was forwarded for inspection and the Board consider that Mr. Heath, who, it is believed, was among the tirst, if not the first, to make spirits from (until recently) this apparently useless tree, deserves great credit for the successful result of his labours.

Industries. X antes and Addresses. Premiums awarded. Paper* Woollens + Kenny, T., Melbourne ... Victoria Woollen and Cloth Manufacturing Company, Geelong McAndrew, D., Drysdale Dodson, G. E., East Collingwood Martelli, A., Lillydale ... > tions specified at £200 ) foot - £200. £200. Flax, &C.J .... Axles, male and. female Hemp, Russian wheat, and seedling mulberries Crockery, &e. Leather Organ-building, manufacture of metal pipes Stearine Candles Chesterfield Pottery Company, Footscray Farrell, J., Richmond Tannery Fincham, G., Richmond £100. £100. £100. Crockery, &c. Chemicals Crockery, &c. Flat ropes Leather Gold-leaf Flax, &c Pistol cartridges Galvanizing iron Perfumery Coach and railway carriage trimmings First to introduce musk wood into the manufacture of pianofortes Flax Preserving fish Canister fruits Glue Patent colonial ovens Crystallized fruits ... Blasting compound —a non-explo-sive Straw hats, &c. Straw-splitters Prangst, G. W., engineer and manager, the Melbourne Patent Stearine Company Steiling, G. P., Richmond Clark and Co., Melbourne Cornwell, A., Brunswick Donaghy, M., Geelong Douglass, A., and Co., Geelong... Evett, W., Emerald Hill Kidd, J. A., Eltham Miller, F. McD., Fitzroy Rowden Bros., Melbourne Watts, H., Warrnambool Beddison, Emma, Fitzroy £100. £100. £50. £50. £50. £50. £50. £50. £50. £50. £50. £25. Blazey, W., Richmond ... £25. Craig, J., Moolap Foi'dham, F., Melbourne Fordham, F., Melbourne Honnens, Vocklcr, and Co., Maldon ... Hutchison, W., Melbourne Locroissette and Bates, Melbourne Martin, J., South Yarra, Manager of the Australian Patent Blasting Compound Company Mealy, E. D. and E., Fitzroy Mealy, J. £25. £25. £25. £25. £25. £25. £25. £25. Connected with previous application, and considered therewith. £25. Crockery, &c. Rhodes, J. S., Brunswick

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raw vegetable produce Las been much less than might have been- expected ; but this arises from intelligible causes. Of the several subjects especially selected for reward, olive .oil, flax, linseed oil, hemp, cotton, hops, and silk, the only specimens actually forwarded have been of flax and hemp, and the Board have been able to award only one premium, and that conditionally, under the 2nd and 3rd clauses, though they have considered themselves justified, under the 4th clause, in awarding to Mr. Martelli, Mr. Kidd, and Mr. Craig, the amounts previously specified. With regard to the experimental farm of Mr. Martelli, the following particulars relative , thereto were furnished for the information of the Board :— The farm in question is situated three miles beyond the little village of Lillydale, on one of the two roads to the Gripps Land diggings in the Tering Valley. A stream of very pure water flows down it, on its way to the Yarra. This stream, which used to flood the contiguous lands, Mr. Martelli, in conjunction with Mr. Castella, has conducted into an artificial channel, of about eight feet broad by four in depth, which gives the means of irrigating effectually about 3,000 acres of land. The flow is sufficient for working either an hydraulic ram or a turbine. From this main current Mr. Martelli has made a series of cuts, dividing the lower land into rectangular blocks of fifteen acres each, each of which, by the application of a few simple wooden gates, can be flooded. It is, in fact, simply the Italian irrigation system, well carried out, but the only specimen, it is considered, of the kind, thoroughly done, that has yet been seen in Australia. The total property consists of 320 acres. Of these, the upper half is poor thin soil; as the land slants, the soil becomes loamy, passing, in the bottom, into the richest alluvial mould. Upon the two last-mentioned soils the following crops are growing : — 1. Silk mulberry trees (six in number), seven years old, imported a year ago from Italy. These are very flourishing, but, being few, their chief value lies in proving that it is possible to bring out nearly full-grown fruit trees, with success, all the way from Livorno (Leghorn) to Melbourne. 2. Eleven thousand silk mulberries (seedlings). This is the one case, it is thought, in which the silk mulberry has been raised from seed in Australia ; the others are from cuttings. The difference is, that the seedling grows slower, but lasts nve-and-twenty years ; the other goes off at about the twelfth. These plants will be able to give three pounds of leaves next year—equivalent to the production of about a ton and a quarter of raw silk. 3. Odessa wheat (six acres). This is the " grano duro," alias hard grain, which makes both macaroni and vermicelli. The common wheat is useless for the purpose. The ordinary consumption of macaroni is not sufficient to make this, as yet, a matter of consequence for the colonists, as the sale of Colonial-made macaroni has been so limited that Messrs. Cavassa who have tried it, found it a failure, and had to leave for California. But there is no doubt that there will be a considerable demand for it with the increase of the population, and the introducer is pro tanto a benefactor, though hitherto an unsuccessful one. 4. Hemp (Italian). The difference in price between the common Kiga hemp and the Bologna (Italian) averages about one-third in favour of the latter —that is to say, in the rough. If Eiga be worth £40 per ton, Bologna is worth £60, which is the price that Mr. Miller will give for it. Hemp, ■unlike flax, requires a very rich alluvial soil, and Mr. Martelli, having grown a portion of his upon the upland (excellent for flax, but not rich enough for hemp), and having reserved a very large portion for seed will not have more than, at most, seven cwt. to show. What there is, however, is of excellent quality. 5. Hops. These are flourishing, but not sufficiently advanced to require special notice. It will be seen, from the above brief resume, that at least three thoroughly new productions— namely, seedling mulberries, Odessa wheat, and Bologna hemp —have been introduced by Mr. Martelli, of which the third is very important, the first ivill be so, and the second may be so. The most important innovation of all, however, is the perfect system of irrigation carried out, which Australia so grievously wants. Mr. Martelli has expended £1,300 on this work.

With reference to Mr. Kidd's piece of ground, cultivated for flax-growing, at Eltham, it is only a patch of indifferent soil; but, as flax will grow on nearly any soil, the fibre is not affected as to quality; and that which was seen by the member of the Board by whom the farm was visited, appeared to be particularly good as to quality. The quantity did not, however, exceed from four to five hundredweight. Not only has good flax been grown on this farm, but Mr. Kidd has converted a portion of it into first-rate flax-cotton, which, being something quite new, comes under the 4th clause of the Regulations. The great difficulty of growing flax to a profit in Australia is the price of labour. Some new machinery however, has been recently invented in America, which will rectify this. Mr. Kidd understands this, and is ready to import, at his own expense, if he could, upon arrival, receive a portion of the cost. It may be mentioned, that his taking the initative has induced many of the small farmers in the neighbourhood to commence growing flax next season. The Board received the following particulars relative to the farms of Mr. Craig and Mr. McAndrew :— Mr. Craig occupies an allotment under the 47th clause of " The Land Act, 1862," for the express purpose of cultivating flax. In December last he had six acres of growing flax, besides a quantity of the previous year's crop in his barn; at a subsequent visit to his farm it was noticed that he had gathered his crop, but had no machinery either for preparing the flax or expressing the oil from the seed, of which he had saved a large quantity. Mr. McAndrew, of Bellerine, is a grower of flax, and has fitted up machinery for scutching. He occupies the old Bellerine flour mill, which he has had fitted up with flax-dressing machinery. The machinery was at full work in May last. It is driven by a sixteen-horse engine, and consists of one set of flax-breaking rollers and two scutching-wheels, with provision for extending shafting so as to employ full power of engine.

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CORRESPONDENCE RELATIVE TO NEW

Li consequence of the successful starting of the machinery, the neighbouring farmers and others have applied to the Board of Land of Works for leases of the reserves for flax-culture. Applications have been made for 2,000 acres, in allotments of twenty acres each. Independently of these applications, there is a very general intention among the neighbouring farmers to put a considerable breadth of land under flax this season ; Mr. McAndrew himself intends to sow forty acres. He will shortly bein a position to claim the reward for the production of one ton of flax. JSTo specimens of silk have been sent in ; and the Board are decidedly of opinion that it will be desirable, in future, to reduce the quantity, and multiply the number, of premiums for silk, a production for which the soil and climate of Victoria are peculiarly adapted. Olive oil is equally unrepresented, which is to bo regretted, as the olive grows very freely in the Colony, and the produce is valuable. Cotton can probably only be grown profitably in the Biverina region, requiring heat, and no considerable quantity can be expected for some time to come; but it is very evident that flax-growing is beginning to take root. In the various localities indications of enterprise in this direction are apparent; and it appears to the Board that while no further reward is required for the growth of the flax plant, encouragement should be held out for new applications of the fibre, for the production of linseed oil, which commands an immediate sale, and the difference of freight, insurance, and leakage, will probably be a sufficient natural protection to make it a self-supporting industry. The Board are pleased to find that in one locality at least—on the farm of Mr. Martelli above referred to —hemp of an excellent quality is being grown. The returns of the rope factories established at Melbourne and Geelong show that the only drawback to the establishment of rope manufacture in the Colony is the price of hemp. That of Manilla is at present, and is likely to continue, extremely high, having risen from £28 in the past year to £45 in the present. The Melbourne market is notoriously uncertain, as Calcutta lines have recently sold at £36 ; but the average rise is undoubted. The volcanic soils, as well as the alluvial, are pre-eminently adapted for growing hemp. It is probable that no crop will be more remunerative, and it is therefore satisfactory to find that, in this direction at least, a satisfactory commencement has been made. It is known that hop-growing is, in various localities, progressing successfully in the Colony (it has been prosperous at New Norfolk, in Tasmania) ; and is to be regretted that no specimens have been forwarded for inspection on this occasion. This most valuable industry is apparently at a stand-still. The Board are inclined, in this instance likewise, to be of opinion that the chief obstacle lies in the quantityrequired by the Eogulations —namely, one ton —and would recommend, prospectively, a considerable reduction. Several articles not specially mentioned appear to the Board to be worthy of particular encouragement. To mention one, bees-wax. Australia being a country particularly adapted for the cultivation of honey-flowers, a very large and increasing quantity of wax may be expected to be annually exported. As the present European price ranges from £7 to £9 per cwt., the profit upon this export must be considerable, and, since it can be easily raised by any small proprietor, the Board would recommend it for future encouragement. (2.) With respect to manufactures, properly so called, the number of samples sent in has been satisfactory, showing a decided, and, in most cases, a judiciously directed industrial movement; and in two instances {i.e., for the manufacture of paper and woollens) the extent of the operations is considerable. In both these cases, however, as has been before stated, the stringent conditions of the 2nd and 3rd clauses of the have precluded the Board from granting any pecuniary reward until an actual result has been produced. In the manufacture of pottery much progress appears to have been made, although, none of the specimens submitted to the Board, come under the definition of " china, porcelain, or the finer classes of earthenware." The manufacture of drain-pipes, flower-pots, and brown ware was long ago carried on in the colony ; but the samples submitted by the Chesterfield Company, Mr. Steiling, and Mr. Cornwell, combined novelty with excellence, and they have accordingly been awarded premiums under the 4th clause. Mr. Bhodes submitted a variety of samples which, although possessing no merit as articles of utility, were of interest as being the result of experiments on various kinds of clay, and he also had a small jjremium awarded him. In the finer classes of leather, very excellent samples of calf, kid, and kangaroo, dressed, coloured, and grained, for bookbinding, upholstery work, &c, were exhibited by Mr. Farrell and by Messrs. A. Douglass and Co., for which premiums have been awarded. From what has come under the observation of the Board, there can be little doubt but that the importation of the finer classes of leather will be to a large extent rendered unnecessary. The application of Mr. Fincham, for organ building, was entertained under the 4th clause, on his showing that some of the materials used by him were of colonial produce, the metal pipes being his own manufacture. The stearine candles for which the Melbourne Stearin c Company made a claim, and have been awarded a premium, were superior to any description of candles previously made in the Colony ; but a still further improvement must be made before the imported article can bo driven out of the market. A great variety of chemical products were exhibited by Messrs. Clark and Co. Those upon which they principally rested their claim, and for which a premium was awarded, were the white oxide and red and yellow sulphuret of antimony, and the sulphates of copper and iron. The products of the antimony were in the form of paints. The manufacture of gold leaf, of excellent quality, by Mr. Evett, was deemed by the Board well deserving a premium. The use of imported cartridges has been already nearly superseded by those of Mr. Miller's manufacture, and a premium has accordingly been awarded him. Among the minor industries which the Board considered worthy of reward are —carriage trimmings (Mrs. Beddison) ; the use of muskwood in making pianofortes (Mr. Blazey) ; preserving fish in oil and fruits in canisters (Mr. Fordham) ; crystallized fruits (Messrs. Lecroissette and Bates) ; glue of very excellent quality, equal to the best imported (Messrs. Honnens, Vockler, and Co.), and which would have merited a higher reward if the manufacture had been commercially established; blasting compound (Mr. Martin), of the excellence of which very satisfactory testimonials were produced, and of the merits of which, in at least one respect, that of safety, there can be no doubt.

INDUSTRIES AND MANUFACTURES IN VICTORIA.

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The following observations relative to Mr. Kenny's establishment may prove interesting:— Mr. Kenny's paper works are situated at Dight's Mills, on the Yarra. In establishing a new industry, the principal question appears to be, whether it can so thoroughly xoot itself in the soil as to be able to stand, after a brief period, without artificial assistance, and it is considered in the present instance (i.e., of paper) that it can ; for these reasons. The difference of price of the raw material. In Victoria, rags are obtainable at about an average of £7 per ton ;in England, they cost about £11, speaking in the rough. But this does not represent, by any means, the total monetary difference. The English rags are commonly worn to the stump, and are really rags, in the full sense of the word. Those collected in Australia are simply half worn out dresses, which the high wages, and consequent extravagance of the working classes cause to be thrown away, when, in any other country, they would be carefully repaired. The Australian rags— thus representing a difference in price of 100 per cent., which must necessarily disappear in time, but in the meantime, subsists—have in this alone a powerful protection. To this must be added freight—that is to say, two freights, out and back—insurance out and back, and the expense of bales, costing Bs. or 9s. each. There is noticeable, likewise that, as Indian corn, or maize, grows so freely in Australia, and its leaves and straw make excellent paper, there is a vegetable supply at hand which must necessarily increase with the increase of population and cultivation. The difficulty in the way, therefore, of the production of paper seems to be very small, if the requisite capital be forthcoming. There will always, however, be the same obstacle as attends all infant industries connected with countries of limited population, which are offshoots of such an inexhaustible producer as Great Britain, that the quantity there created being periodically in excess, the Colonial manufacturer will never, for years, know precisely how he stands, as he will be liable to be swamped by a sudden heavy importation of goods, which will be sold, not at their legitimate value, but at cost price, and very often greatly under the cost price. There cannot be a better situation than Dight's Mills for an undertaking of this nature. There is a sufficient head of water as it is—a fall of say five feet; and if the opposite cliff were blasted, which could be easily done, the fall could be doubled. The Varra floods, however, would, of course, endanger any very strong embankment. Por the purpose of the paper manufactory, however, this is not necessary, as the motive-power is a turbine, the best of all water-engines where an overshot-wheel cannot be used, as it can work with a very slight fall—say three feet. This is the second one inVictoria. Pure water is necessary for making any but coarse paper, but the adequate purity of the Tarra water, at Dight's Mills, is doubted. The machinery imported is of the very best description. It certainly must have cost from £7,000 to £9,000. It is desirable to notice that the upper compartments, into which the pulp first flows, are to be floored with Victorian slate—a decided improvement, and tending, though infinitesimally, to push on a new industry. Notwithstanding all the above-mentioned favourable accessories, this spirited undertaking must stand still for the present, unless more capital be forthcoming. The work cannot be done under £20,000. Likewise, in the teeth of the stringent language of the 2nd clause of the Begulations, it will be impossible to make pecuniary advances to Mr. Kenny until a requisite amount of marketable paper of the coarser kinds be produced. The under-mentioned particulars, furnished for the Board's information, relate to other establishments, on account of which premiums were applied for. As regards the male and female axle factory of Mr. Dodson, to whom a premium of £200 has been given, the accompanying particulars were supplied : — The proprietor has been engaged in manufacturing and erecting his machinery for the last two years, and has now successfully established the manufacture. He at present employs ton men and two youths, and pays in wages £30 per week. He states that the addition of two lathes would enable him to employ thirty men and ten boys, and that a ready market could be found for all he could produce. He is at present prevented from putting up additional machinery for want of funds. He has realized on his real property to the extent of £1,000, and not wishing to raise money on his working premises and machinery, is prevented from fully carrying out his enterprise. It was reported of Mr. Donaghy's rope establishment, at Geelong, that — The hemp used in the establishment is the ordinary Manilla. That the work seemed to be very well done, and that there is no question as to the immense value of manufacturing our own ropes, as it not only keeps money in the country, but indirectly stimulates the growth of hemp. The Board, it will be noticed above, have awarded Mr. Donaghy £50 for the manufacture of flat ropes, which are extensively used in mining operations. Bespecting the perfumery establishment of Mr. Watts, at Warrnambool, the following particulars were reported: — The premises used are his own residence. One room, part of the cellar, and a small outhouse, are devoted to the manufacture of perfumery, bottling, and getting up for sale. The still (two gallons) is in the out-house. The garden is barely a quarter of an acre in extent, and mostly planted with lavender. He depends almost entirely on other gardens for his flowers. The applicant, his wife, and one child, are all who are permanently employed, and in the season he has employed as many as twenty children to gather blackwood and wattle-blossom in the bush. The establishment is on a very limited scale; but it is considered that Mr. Watts understands his business. It was also reported, that during 1865, twenty-five gallons of spirits were used by Mr. Watts in the manufacture of perfumery. Applicant has been awarded £50. The Board received the subjoined information respecting the tannery of Messrs. A. Douglass and Co., of Geelong, on account of which a premium of £50 was awarded to that firm : — The Barwonside tannery is situated below the breakwater on the Biver Barwon, and about three miles from Geelong. It has been formed within the past year. A large quantity of skins were on the premises, consisting of calf, kangaroo, sheep, goat, and dog skins—in the various stages of conversion into morocco and other fancy leathers, prepared in the German and Prench styles, under the superintendence of artizans from those countries. The kangaroo skins make a very soft and beautiful

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leather, and appear equal to the finest kid; they also take the various dyes in a very favourable manner. The various kinds of calf are prepared to the satisfaction of the Government, which has just accepted a tender from the firm for the supply of calf and fancy leathers to the value of nearly £800. The water required is pumped by a small windmill into a tank, which provides the necessary supply. The works are extending, and new pits have just been erected. The number of men now employed in the various departments is twelve, whereof the greater part are foreigners ; and this number will be augmented when the order for the Government is in hand. The following particulars relate to the establishment of Messrs. Eowden Brothers : — The establishment of Messrs. Rowden Brothers is for the purpose of manufacturing galvanized iron. The iron at present is chiefly used for the manufacture of coal-scoops, nails, spikes, buckets, and earth-closets. The price at present of the manufactured article ranges from £30 10s. to £44 per ton. Respecting Mrs. Mealy's establishment — Mrs. Mealy is employed in converting refuse straw into straw-plaits, bonnets, &c. The straw used is that of the red Tuscan wheat and rye, and is shown in various plaits, bleached and unbleached, plain and fanciful, and some interwoven with velvet, for trimmings. Six young persons work with her, who would otherwise have had no employment. This is a most valuable industry, (1) as it utilizes what would otherwise be lost, and (2) as it gives the means of respectable subsistence to precisely the class whom it is most desirable to keep respectably employed in such a place as Melbourne. The following relates to Mr. Hutchison's colonial ovens : — Mr. Hutchison at the present time gives employment to ten hands, who can be considerably increased in number with an increase of capital. The ovens, as constructed appear to be fully equal to those imported ; the price is slightly cheaper, namely, from 345. to £2 10s., with a deduction of 20 per cent, to the trade. The material used is the best pig iron. In concluding, the Board would express generally their approval of the Regulations, and at the same time record their opinion that, if the vote for the year 1865 be continued for the year 1807 —as is most desirable, and better still, doubled in amount —the extent of applications for new industries and manufactures, actually realized and made effective, will probably absorb the whole. Edwd. Black, Jajies G. Eeancis, Secretary. Chairman.

APPENDICES. Appendix A. BOAED APPOINTED BY HIS EXCELLENCY IN" COUNCIL TO CONSIDER CLAIMS FOE ReWAEDS OE Pbemiitms, &c. [Extracted from the Victorian Government Gazette, of 6th October, 1865, 'No. 139.] Promotion of JSTeiv Manufactures and Industries. Tee Governor in Council having appointed the Hon. J. G. Erancis, M.P., Commissioner of Trade and Customs; the Hon. R. S.Anderson, S. H. Bindon, Esq., M.P., James Harrison, Esq., William Lyall, Esq., J. G. Reeves, Esq., J. C. Riddell, Esq., M.P., J. Sherwin, Esq., M.P., J. J. Stutzer, Esq., to be a Board to consider claims for rewards and premiums for new manufactures and industries, in accordance with the Regulations submitted to Parliament on the 12th July last, all persons who may deem themselves entitled to rewards or premiums under the Regulations referred to, are requested to forward their claims to Mr. Edward Black, Secretary to the Board, Custom House, Melbourne, on or before the 15th November next,* after which date none will be received. A copy of the Regulations is attached, to the 4th clause of which the Board desire to direct particular attention. Department of Trade and Customs, Jas. G. Ebancis, Melbourne, sth October, 1865. Chairman of the Board. Regulations for expending the sum of Five Thousand Pounds, voted hy Parliament in the year 18C5 for the Promotion of New Manufactures and Industries. 1. The Governor in Council shall appoint a Board, to whom shall be referred the consideration of all claims for premiums or rewards under the above grant. 2. Such sums as may be recommended by the said Board shall (subject to the approval of the Governor in Council) be paid to the person or company who shall have, since the Ist January, 1864, first successfully established, or may hereafter first successfully establish, in Victoria, any new manufacture or production. 3. Precedence of claim will be given to the following items, and the reward measured by the excellence and extent of the manufacture or article produced : — Woollen Goods. —Blankets, rugs, flannels, cloth, or other woollen fabrics of general use. Papee.—Wrapping, printing, or writing. Glass. —Sheet or plate glass, tumblers, wine glasses, or bottles. Ceockeet. —China, porcelain, or any of the finer classes of earthenware. Leathee.—Eor excellence in the manufacture of leather for other and higher purposes than the sole and kip leather now produced. Olive Oil. —The produce of trees grown in Victoria (the quantity not being less than twenty gallons). Elax. —Not less than one ton, properly prepared for manufacturing purposes.

* Period afterwards extended to Ist Decemher.

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Flax (or Linseed) Oil. —Not less tlian fifty gallons, properly prepared for manufacturing purposes. Hemp.—Not less than one ton, properly prepared for manufacturing purposes. Cotton. —Not less than one ton, properly prepared for manufacturing purposes. Hops.—Not less than one ton, properly prepared. Silk.—Not less than half cwt., the produce of silkworms bred in Victoria. 4. It shall be competent for the Board to receive, and, if approved of, to recommend rewards for other articles of local manufacture or production, or to offer and publish such special rewards or premiums as it may think fit. And also to refuse reward or premium to any new article of growth or manufacture, if it is not considered to bo of merit and usefulness sufficient to entitle it to favorable consideration.

Appendix B. Minutes of Meetings held at the Custom House, Melbourne. sth October, 1865. —Members present: —Mr. Francis, Mr. Anderson, Mr. Harrison, Mr. Beeves, Mr. Biddell. Mr. Francis having made a few observations as to the action taken by the last Board, and the Regulations under which it is proposed to expend the present vote, called upon Mr. Black to read the Order in Council appointed by the Board. Order in Council read accordingly. Resolved — (1.) That the Hon. Mr. Francis be chairman of the Board. (2.) That four members form a quorum, and that all notices of meeting contain an intimation of the more important business to be brought forward. (3.) That Mr. Edward Black be appointed secretary. (4.) That an advertisement be inserted in the Government Gazette, and occasionally in the leading town and country newspapers, requesting persons deeming themselves entitled to rewards or premiums under the Regulations to forward their claims to the Secretary on or before the 15th November next, after which date none will be received; and directing particular attention to the 4th clause of the Regulations. (5.) That measures be taken to exhibit the Regulations at such places as may be considered desirable by the Commissioner of Trade and Customs. sth December, 1865.—Members present:—Mr. Francis, Mr. Anderson, Mr. Riddell, Mr. Bindon, Mr. Harrison, Mr. Lyall, Mr. Reeves, Mr. Sherwin, Mr. Stutzer. Submitted —Whether the application of D. McAndrew, dated 30th November, for the manufacture of flax, be received, the same not having reached the Custom House until the morning of the 2nd instant. Decided —That the application in question be received, as it arrived in the Melbourne Post Office on the Ist idem. Submitted —Whether the application of Mr. Hutchison, for the manufacture of a- substitute for embroidery, &c, be entertained, the same having only been delivered on the morning of the 2nd instant. Decided—That the application be open for future consideration. That the application of the Victorian Woollen and Cloth Manufacturing Company, Geelong, and that of Mr. Kenny, for the manufacture of paper, be entitled to rewards, contingent upon the production, within a specified time, of a certain number of blankets and a certain quantity of paper. That Messrs. Bindon, Harrison, and Stutzer be nominated a sub-committee to visit the following establishments, and report upon their extent and excellence, viz.:— J. A. Kidd, Fltham —Flax; J. Craig, MooJap —Flax ;A. Martelli, Lillydale —Hemp, hops, wheat, mulberry ; D. McAndrew, Drysdale, Flax. That a sub-committee, consisting of Messrs. Anderson and Reeves, be appointed to visit the following crockery establishments, and report to the Board upon their extent and excellence: —■ A. Cornwell, pottery, Brunswick ; Gγ. P. Steiling, pottery, Richmond; Chesterfield Pottery Company, Footscray ; J. S. Rhodes, Brunswick. That renewed claims from applicants who were awarded out of the vote for 1864 be laid aside until other claims are considered ; such renewed applications to be dealt with before money is divided. 12th December, 1865.—Members present: —Mr. Francis, Mr. Anderson, Mr. Reeves, Mr. Stutzer. Resolved —With regard to the applications for rewards for the manufacture of tobacco (those of Messrs. Loughnan Brothers, Messrs. Campbell and Vaughan, and Mr. P. O. Grady), that the same cannot be entertained under clause 2 of the Regulations. That the following applications cannot be acceded to under the Regulations:—Chapman— Medicine ; Tolhurst —Oratorio; Round —Improvements in the manufacture of wrought-iron chains; Stanway—Australian patent easy chair; Phillips —Boys' clothes ; Skinner —Crinolines ; Tredinnick and Corin —Machine called a " buddle," used in saving fine gold from stamped tailings and sludge ; Smith and Son—Biscuits. 19th December, 1865. —Members present: —Mr. Francis, Mr. Anderson, Mr. Harrison, Mi , Lyall, Mr. Reeves. The Chairman having brought the applications of Messrs. Loughnan Brothers, P. 0. Grady, and Campbell and Vaughan under notice for premiums for the manufacture of tobacco, with the view to their reconsideration, it was resolved —That the decision arrived at by the Board at their previous meeting, in reference to these applications, be confirmed, viz., that they cannot be entertained under the 2nd clause of the Regulations.

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Letter submitted from D. McAndrew, of Drysdale, requesting that he may be allowed two or three months to enable him to bring forward a ton of flax. Bequest acceded to. Letter submitted from M. Murphy, requesting premium for manufacture of portmanteaus. Resolved—That it be not entertained, the same having only been delivered on the 12th instant. Further letter from Mr. Hutchinson (manufacture of a substitute for embroidery), explaining the reason why his original application was not delivered on Ist instant. Resolved—That the application be considered in its turn. Application from Mr. Tolhurst read, requesting a premium for lithographing music. Resolved —That the same cannot be entertained, as it was only delivered on the 14th instant. Resolved —That the following applications be laid aside for reconsideration : —Martin —Blasting compound ; Chambers —Bellows ; Hutchinson —Ovens ; Mealy —Straw hats, &c.; Lacroisette and. Bates —Crystallized fruits ; Prangst —Candles. Resolved —That the following applications cannot be entertained : —Clarke—Paperhangings ; conditions of Regulations not having been complied with. Wilkie, Kilner and Co. —Pianos ; not having sent in a claim in 1864, which another firm did, and a premium having been awarded to the firm in question. Resolved—That a sub-committee, consisting of Mr. Francis and Mr. Stutzer, visit the premises of the following applicants:—Chambers —Bellows ; Hutchison —Ovens ; Rowden Bros.—Galvanizing iron. 2Stli December, 1865.—Members present: — Mr. Francis, Mr. Anderson, Mr. Bindon, Mr. Harrison, Mr. Reeves, Mr. Stutzer. Letter read from Mr. Stanway, requesting reconsideration of his claim for the invention of the Australian patent easy chair. Resolved —That the letter be laid aside for consideration at a subsequent meeting. Application for a reward from Mr. H. Robottom, for silver chasing, was read. Decided—That the application was received too late to be entertained for a premium. Letter from M. Murphy read, relative to refusal of Board to entertain his claim. Resolved —That the establishment be visited. The claim of Mr. "Watts, of Warrnambool, for a premium for the manufacture of perfumery, read. Resolved —That a report be obtained from Mr. Musgrove, Collector of Customs, and other gentlemen residing in the neighbourhood of Warrnambool, in reference thereto. The following applications submitted—ordered to be laid aside for the present:—Miller—Pistol cartridges ; Fordham —Preserved fish and fruits ; pickles. [The applications for pickles not to be entertained for a reward, a premium having been awarded last year.] Beddison —Railway and coach trimmings; Evott —Gold-leaf; Clark and Co.—Chemicals; Hutchison—Substitute for embroidery. That the establishments of the under-mentioned applicants be visited by members of the Board : — Pansacker and Evans —Portmanteaus, &c. ; Donaghy, Geelong —Rope. That the following applications be laid aside for reconsideration : —Allison—Firebricks; Chevalier— Chromo-lithography ; Stone —Cement; Nisser —Powder ; Mealy —Straw-splitters. 3rd January, 1866. —Members present: —Mr. Francis, Mr. Bindon, Mr. Reeves. No quorum. 6th February, 1866. —Members present: —Mr. Francis, Mr. Bindon, Mr. Harrison, Mr. Lyall, Mr. Reeves, Mr. Riddoll, Mr. Stutzer. Resolved —That the following applications be laid aside for the present:—"Watts—Perfumery ; Honnens, Vockler and Co. —Glue ; Fincham —Organs, and manufacture of materials therewith. That the application of E. M. Myer, of Ballarat, for the manufacture of spirits of wine, chloroform, &c., be laid aside for reconsideration. That J. C. Lyons be requested to furnish additional information relative to his patent manure. That the following applications of the under-mentioned persons cannot be acceded to : —E. Brandt —Shingles and shingle machinery ; E. Nightingale —Fancy boxes ; J. Nelson—Salt. That the following applications cannot be entertained, the same not having been received until after the expiration of the time fixed for receiving claims: —Geach —Gentlemen's ties, &c.; Greathead— Bonnet shapes ; Venables —Madder. 15th February, 1866. —Members present: —Mr. Francis, Mr. Harrison, Mr. Reeves. No quorum. 20th February, 1866. —Members present: —Mr. Francis, Mr. Anderson, Mr. Reeves, Mr. Stutzer, Mr, Harrison, Mr. Lyall. The following applications for rewards having been submitted for reconsideration, it was resolved that they cannot be acceded to : —Meyer —Ether, chloroform, &c. ; Lyons—Patent manure ; Allison— Firebricks ; Hughes —Treatment of antimony ore ; Chevalier—Chromo-lithography ; Haughton— Perambulators ; Amos—lron ; Stone —Cement. To be laid aside for further consideration: —Nisser—lmproved powder ; Dodson—Male and female axles. Stanway's renewed application for a reward for the invention, &c, of the Australian patent easy chair, resubmitted for consideration, in accordance with resolutions adopted at a meeting held on the 28th December last. Decided —That the claim cannot be entertained under the Regulations. Resolved —That, out of the vote of £5,000, the sum of £2,500 be set apart in equal proportions, as a reward for the manufacture of woollen goods and paper, i.e., £1,250 to each; and that a subcommittee be appointed, consisting of Messrs. Anderson and Reeves, to report relative to claims for rewards for manufacture of woollens, and to suggest conditions upon which premiums should be granted and a sub-committee, consisting of Messrs. Stutzer and Harrison, be requested to make a similar report, &c, concerning the application for premium for manufacture of paper. Resolved—That the other applications considered worthy of premiums be divided into eight classes,

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as under : — lst class to receive £300 ; 2nd class, £250 ; 3rd class, £200 ; 4th class, £150; sth class, £100; 6th class, £75 ; 7th class, £50 ; Bth class, £25. That the tanneries, &c, of the under-mentioned applicants be visited and reported upon by the following gentlemen :—E. Davies, Brunswick, and J. I'arrell, of Richmond, by Messrs. Anderson, Eeeves and Lyall; A. Douglass and Co., G-eelong, by Mr. G-uthrie, Inspector-General of Customs. That the claims for rewards for the manufacture of crockery, &c, be deferred until a larger meeting of the Board takes place, and that they be then considered in connection with the reports of the subcommittees. That the next meeting of the Board take place when all the reports of sub-committees are in the hands of the Secretary. That the Secretary be authorized to have certain lists of applications printed for distribution among the members of the Board. Bth May, 1866. —Members present: —Mr. Francis, Mr. Harrison, Mr. Eeeves. No quorum. 15th May, 1866. —Members present:—Mr. Francis, Mr. Harrison, Mr. Lyall, Mr. Eeeves, Mr. Eiddle, Mr. Stutzer. Letters read from the Eev. J. J. Bleasdale, D.D., and Mr. Eichard Shepherd, requesting reconsideration of decision arrived at in Mr. Chevalier's case. Decided—That fresh evidence produced aftbrds no reason for altering decision. Similar letters from J. C. Lyons, Ballarat, and E. Brandt, Sandhurst, submitted. Decided—That no sufficient reason is shown to induce Board to alter decision. Letter road from Mr. George Heath, Inspector of Distilleries, submitting sample of spirits made by him from the grass-tree. Decided—That the thanks of the Board be convoyed to Mr. Heath for his communication. Application read from Mr. J. G-. Miller, applying for a reward for discovery of an invention for " deep-sea fishing by galvanic currents." Decided —That Mr. Miller be thanked for his communication, and to be informed that the time for receiving applications for rewards closed on Ist December last. Mr. Keogh's application for a reward for the manufacture of woollen cloth submitted. Decided—That the claim for a premium is not sustained. Applications of the Victorian Woollen and Cloth Manufacturing Company, G-eelong, and of Mr. Kenny, on account of his establishment for the manufacture of paper, having been considered, it was decided —That the sum of £1,500 each be set apart for these industries (instead of amounts specified in a resolution arrived at at a meeting held on 20th February last), subject to the fulfilment of certain conditions prior to 15th December next. Mr. Stutzer invited to draw up conditions suitable to those cases. The applications of the following applicants were next considered, and it was decided that none but the finer articles of earthenware are entitled to a premium ; and the specimens forwarded for the inspection of the Board not fulfilling the requisite conditions, the applications are consequently declined: —Cornwell, Brunswick; Steiling, Eichmond; Chesterfield Pottery Company, Footscray; Ehodes, Brunswick. Decided —That the three applications for the manufacture of leather stand over until next meeting; meanwhile J. Farrell to be requested to forward samples of his coloured roans for inspection. The following rewards, subject to revision, were agreed to, for the manufacture of flax: —Kidd, Eltham, £50, 4th clause; Craig, Moolap, £25, 4th clause; McAndrew, Drysdale, £200, 3rd clause, subject to his producing the ton of flax required by the Eegulations. Mr. Martelli's applications having been submitted, it was decided to grant £200 to him under the 4th clause. Decided —-That the applications of Pansacker and Evans, and M. Murphy, for the manufacture of portmanteaus, &c, stand over, pending inquiry into same by Mr. Stutzer. The following rewards, subject to revision, were next set down for the applicants named hereunder: —Dobson, axles, £200 ; Prangst, stearine candles, £100 ; Watts,perfumery, £50 ; Evett, gold-leaf, £50; Martin, blasting compound, £50 ; Miller, pistol cartridges, £50 ; Eowden Bros., galvanizing iron, £50 ; Honnens, Vockler, and Co., glue £25; Clark and Co., chemicals, £25; Beddison, railway trimmings, £25 ; Lacroisette and Bates, crystallized fruits, £25; Mealy, straw-plaiting, straw hats, &c, £25 ; all being under clause 4. The amounts awarded to Mrs. Mealy disposes of her son's claim for manufacture of straw-splitters. The following applications were next submitted, and dealt with as under: —Donaghy, manufacture of rope, declined, not having established a claim; Hutchison, patent ovens, not sufficiently novel tomerit a reward ; Fordham, preserved fruits and fish, declined for same reason ; Hutchison, substitute for embroidery, not entitled to a premium ; Fincham, organs, not entitled to a premium ; Nisser, patent gunpowder, not approved for a reward. The following applications from persons who received premiums out of the 1864 vote, requesting additional rewards out of the amount voted in 1865, were next submitted, and the following decision in reference to the same was arrived at: —That it is inexpedient to interfere with the decision of the 1864 Board. Applications cannot, therefore, be acceded to. —Uric, sToung, and Co.—Starch and maizena; Sloggatt—Thumb-blue ; Stone and Zevenboom —Brushware ; Miller —Eope. In the case of Mr. Blazey, who was a recipient of a premium from the vote of 1864, it was decided that he should receive a reward of £25, he having been the first to introduce musk-wood into the manufacture of pianos. 17th May, 1866.—Members present:—Mr. Francis, Mr. Harrison, Mr. Eiddell, Mr. Stutzer. Memorandum of condition, drawn up by Mr. Stutzer, under which a reward will be payable to the Victorian "Woollen and Cloth Manufacturing Company, Greelong, submitted and approved; Secretary instructed to communicate same to Mr. Sayers, secretary to the company.

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The following rewards were agred to: —Manufacture of leather, A. Douglas and Co., G-eelong, £50; J. Farrell, Eichmond, £50. Decided —That the application of C. Davis be laid aside, the committee directed to visit his tannery having reported their inability to find him or his establishment. That M. Murphy's application for a reward for the manufacture of portmanteaus cannot be acceded to, his application having been received too late. That Pansacker and Evans' request for a reward for manufacture of portmanteaus, &c, cannot be granted, as they are not the first persons who manufactured those articles in Victoria. 12th June, IS6G.—Members present:—Mr. Francis, Mr. Harrison, Mr. Reeves, Mr. Riddle, Mr. Sherwin, Mr. Stutzer. Minutes of previous meeting read and confirmed. Letter addressed to Mr. Kenny read, intimating conditions under which the premium of £1,500, set apart for his paper establishment, will be paid. Letter read from the Secretary of the Victorian. Woollen and Cloth Manufacturing Company, Goelong, to the effect that he hoped his company would be in a position to comply with the terms and conditions required by the Board. Letter read from Mr. Gγ. P. Stieling, of Eichmond, requesting reconsideration of Board's decision, in reference to his claim for a reward for the manufacture of crockery. After discussion it was decided that, although the articles forwarded for inspection do not come within the definition specified in the 3rd clause of the Regulations, as china, porcelain, or any of the finer classes of earthenware, still, being of good composition, and considering the quantity of pottery clay and koalin, procurable in Victoria, the industry is deserving of every encouragement, and that consequently Mr. Stieling's application be considered in connection with those of the Chesterfield Pottery Company, Footscray ; A. Cornwell, Brunswick; J. S. Rhodes, Brunswick. Applications reconsidered accordingly, and resolved that the following premiums be awarded to each under the 4th clause: —G-. P. Stieling, £100 ; Chesterfield Pottery Company, £100 ; A. Cornwell; £50; J. S. Ehodes, £25. Letters read from Mr. Q-. Fincham, of Richmond, requesting reconsideration of Board's decision as regards his application for a reward for the manufacture of organs and materials connected therewith. The Board were informed that since the date of his application in November last he has commenced to manufacture his own metal pipes—an industry, it is believed, not previously attempted in Australia. Awarded £100. Letter read from Mr. Hutchison, requesting reconsideration of decision in reference to his claim for the manufacture of the Australian Patent Ovens. Additional information having been supplied to the Board concerning this industry, it was resolved to give applicant £25. The Board next reconsidered the applications of the following persons, together with additional particulars furnished in regard thereto, and arrived at the following decisions: —That F. Fordham be awarded £25 for preserving fish, and £25 for canister fruits ; that J. Farrell receive £100 instead of £50 as previously awarded for manufacture of leather; that J. Donochy, ropemaker, Geelong, be awarded £50 for the manufacture of flat ropes ; that Clark and Co., for manufacture of chemicals, receive £50 instead of £25. Letter read from J. A. Kidd, Eltham, relative to amounts respectively awarded to him and Mr. McAndrew. Decided —That previous decision in Mr. Kidd's case be confirmed. i Secretary instructed to have an amended draft-report ready for consideration on Thursday next, the 14th instant, at 4 p.m^ 14th June, 1866. —Members present:—Mr. Francis, Mr. Bindon, Mr. Harrison, Mr. Eeeves, Mr. Stutzer. Minutes of previous meeting read and confirmed. On revising the premiums, it was decided that the amount awarded to J. Martin, on account of the blasting compound be reduced to £25, the industry in question not having been yet successfully established. Draft report submitted by Secretary ; ordered to be reprinted for circulation among members of Board. 19th June, 1866. —Members present: —Mr. Francis, Mr. Bindon, Mr. Harrison, Mr. Lyall, Mr Stutzer. Minutes of previous meeting read and confirmed. Eeport of Board considered, amended, and signed.

Appendix C. Repoet on Antimont, in re Me. Hughes's Peocess. Melbourne, 15th February, 1866. I have the honor to report the following results of investigations which, in accordance with the instructions of the Honorable Commissioner of Trade and Customs, I have made into the claims of Mr. Edward Hughes to a reward for the introduction of the manufacture of antimony. I have analyzed the two samples submitted to me, viz : — No. 1. The ore operated on ; No. 2. The regulus of antimony produced ; and I have also examined the specification of Mr. Hughes's patent, to compare it with the processes in common use here and elsewhere. The sample is a remarkably fine specimen of the tersulphide of antimony, free from gangue, and consequently superior to much of that which will come under treatment. It contains 710 per cent.

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of antimony ; the remainder, with the exception of a fractional amount of impurity —less than a per cent. —being sulphur. The regulus is conseqixently nearly pure; the impurities being in very small amount, and of the common kinds. I inquired the percentage of yield which Mr. Hughes professed to obtain, and was informed that he got from GO to 65 per cent. This is a usual proportion to obtain from ordinary rough ores, but is less than that obtainable if it were all like the sample sent. Five per cent, is enough loss to allow. So far, then, as to the efficiency of the process. Next, as to the novelty. I have already stated, in a memo, submitted immediately on the arrival of the samples, and before I received my final instructions to proceed with the investigation, that the reduction of antimony had been introduced here several years before Mr. Hughes appeared on the scene. The question then turns on the novelty and originality of his process. I am not in a position to state what process was employed by the Messrs. Cairns, for whom 1 experimented in 1859, or by other firms, but presume that it was one of the ordinary methods, which vary from each other only in details of manipulation. I cannot, therefore, pronounce of Mr. Hughes's process, whether he was the first to employ it here ; but it is an ordinary mode of operating on the ore, as I will endeavour to show. Mr. Hughes first roasts his ore, to drive off some of the sulphur, and then introduces it, with fluxes, into a chamber of fire-clay, round which is a furnace-flue. The chamber is perforated at the bottom, and the metal, when reduced and melted, flows through into a receptacle placed beneath. In the old process, which this resembles, the crucible is perforated at the bottom, and is built into a furnace, instead of the furnace being built round the crucible, as by Mr. Hughes ; the crucible not being a common melting pot, but just such a close chamber as he describes. The furnace and treatment are essentially the same, and the fluxes are identical. But, in the old method these crucibles were used first to melt the crude mineral, and to separate it from the gangue and from such other impurities as are thus separable; and the roasting and fluxing followed. Mr. Hughes roasts first, and then charges his crucible with the material, gangue and all. This, then, is the only difference I am able to detect. The answer to Mr. Hughes's claim will then depend upon the reading which the Board thinks proper to put on the word " novel." To make the matter more clear, I sum up briefly the facts of the case, as follows : — 1. Antimony was manufactured here several years ago. 2. Mr Hughes produces a sample of regulus, good in quality, and passable in proportion, from the ore, but not remarkable in this last respect. 3. I see no novelty or peculiarity in Mr. Hughes's " original " process. 4. Mr. Hughes speaks of fire-clay which he has found (this is valuable) ; and of sulphur, and white paint—which he states that he can make (not has made) —samples of these are not submitted. Sydney G-ibbons, F.C.S., Analyist.

Appendix D. I beg to submit a brief expression of opinion upon the present subject of the agricultural premiums. I think that the Board would act unwisely if it continued to offer premiums for undertakings that cannot possibly, until a certain lapse of time and alteration of cirumstances, be realized. I refer to the following instances: — (1.) Silk. —In Australia there are few or none good silkworms ; but if there were it would not much alter matters. It is impossible to reel silk properly without a proper instructress, and she must be brought from Italy or the South of France. I have never yet seen any really marketable silk (reeled) in Australia; but, upon the whole, in spite of the inferiority of the worms (which, by importing from Japan or Persia, the two best countries for the purpose, can be easily rectified), there is no question that first-rate cocoons can be produced. I think that Australia will be the great silkgrowing country of the world, as its climate, from the dryness and purity of the air, is greatly superior to that even of Italy. The white mulberry (mortis alba), grows here like a weed, and Australian silk ought to fetch the same price as that of Auvergne, namely, from 40s. to 60s. per lb. But J cwt. cannot be produced here for two or three years, and, if it could, would be unsaleable. I beg respectfully to recommend, supposing, of course, the Government grant to be extended to the coming year, a premium of £20 for every thirty pounds weight of marketable cocoons, and a premium for every five hundred white mulberry trees planted. (2.) The above remarks apply considerably to the olive. What is the practical use of giving a premium for a ton of olive oil, when there are no olives in Victoria, as the olive does not come to maturity, fit to produce oil, under six or seven years ? I recommend, instead, a premium on every two hundred healthy olive trees. (3.) A large premium is offered for flax grown for linseed oil. Flax will pay, because the leakage out of the casks, plus freight and insurance, is a natural protection to the Australian grower. But it will not pay to grow for fibre, and any one who so grows it, in the teeth of the European competition, will find himself a loser. (4.) It is futile to grow cotton in Victoria, because both climate and the price of labour are against it. The sea-island cotton (as the name shows) will only agree near the sea, in an equable climate and on sandy soil. The Victorian climate is immensely variable, and the soil of the sea-board unsuited. Biverina may grow New Orleans cotton, but even there a large importation of either Coolie or Chinese labour is indispensable. I should respectfully suggest, therefore, that the vote for cotton be entirely abolished. J. J. Sttjtzee, M.A.