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363. The Chairman.] Have you seen anything of tobacco growing in Australia ?—I know very little about it. 364. Is it grown most by Europeans or Chinese? — The Chinese have grown considerable quantities of it in the very hot climates. 365. Is there any danger of its falling into the hands of Chinese here ?— I should not think so. 366. Is there not some prejudice on the part of the New Zealand farmer against taking it up? —My opinion about the New Zealand farmer is that he would very gladly take up anything he was going to get any money from. At present he does not get any money. 367. Do you think the present depression would make farmers willing to try the experiment?— I think, if properly handled by a man who understands the business, and they knew they could get a market for it, they would jump at the chance. 368. Is there anything in the culture of tobacco which renders Asiatics more adapted for it than Europeans? —I should say certainly not. It requires attention. I know of no reason why European labour should not be employed. Dear Sirs, — Wellington, 23rd March, 1895. Thinking over our conversation of last night, re the establishment of the tobacco industry in New Zealand, it has just occurred to me that more than ten years ago a small portion of my old farm, " Thurlby Domain," in the Wakatipu district, was leased for a number of years to a party of Chinese for tobacco-growing which was very successful, but had to be abandoned when the farm was sold. The tobacco plant grow beautifully, and came to perfection, and I should say fully fifty people were employed on a few acres. I think the difficulty thoy had to contend with was to find a market, there being no inducement offered by the Government; and I also think the Chinese were not up to the process of manufacturing. But I venture to say tobacco-growing will do well in New Zealand, and I think especially on the heavy land in the Wellington and Taranaki Districts. You will know that Germany is one of the largest exporting countries in cigars and tobacco. Of course the Government there has only placed a small duty on tobacco-leaf from Havana, which is used with the native-grown article. This, though Germany is a much colder climate than New Zealand, does well, and is a profitable branch of mixed farming. I have no doubt our Government will grant facilities to parties embarking into manufacturing, who, with a good knowledge of the trade and with sufficient capital, ought to have a good future before them; and I feel sure it will be a great boon to many of our farmers. Wishing your Mr. Philips a safe and pleasant passage to Australia, I remain, &c, Messrs. Philips and Pike, Customhouse Quay. B. Haleenstein. (7.) John Newton examined. 369. The Chairman.] What are you, Mr. Newton ?—A soap-manufacturer and maker of soda crystals at Kaiwarra. I have been in business for forty years, nearly ten years of which has been in this colony. I employ six persons—five men and one lad. The labour element is very small in soap-manufacture. 370. What are the average wages of the men ?—£2 a week. 371. For an establishment of that size, what is the required outlay in plant ?—My plant is perhaps worth £1,800 and buildings £1,500. We turn out 40 tons of soap per month and 30 tons of soda crystals. I presume this information is not for publication ? 372.. We have not published any evidence so far, and yours will not be published in the papers if you object. It will be submitted to Parliament. What is the average value of soap per ton ?— £15 10s. We make soap as low as £12 a ton and as high as £25. The value of soda crystals is £5 10s. per ton. 373. How does the present tariff affect you, and what do you propose ?—lf I had my way I should simply abolish all duties on articles imported from the Old Country connected with my business, either the raw material or manufactured article. 374. In connection with soap, what are the articles you require to import ?—Palm-oil, which is free already; palm-nut, sometimes called "palm-kernel oil"—that comes under n.0.e., but I was mulcted in 6d. a gallon duty for it because it was a vegetable oil. Cotton-seed oil is also charged 6d. a gallon, and also cocoanut-oil. Ground-nut or " arachis " oil would, I presume, also pay 6d. Vegetable tallow, resembling cocoanut, is an East Indian production, and would also pay 6d. 375. Mr. Mackenzie.] Do they come in by weight, the vegetable tallow and cotton-seed oil? —They have not been imported much hitherto ; only the last few years, as we find it necessary to use some of these vegetable-oils. Formerly tallow or lard was used. 376. The Chairman.] Is this vegetable tallow in a liquid state ?—ln hot countries it is. Palmoil on the west coast of Africa is quite liquid. When it reaches England it is almost as hard as butter. Here it is as hard as butter. Then, we have caustic soda and resin, which are free. These are the articles we require in soapmaking. Essential oils as a rule are free of duty; but there is one oil we require for a cheap popular soap. It is called "terebene," and some time ago I brought in a small quantity. I contend it is an essential oil, but the Customs levied a duty upon it because it is used in medicine. In making soda crystals we only import soda-ash, or carbonate of soda. It is sometimes called " pure alkali." The duty on it is £1 a ton. Duty was charged on cotton-seed oil, because it is a vegetable oil, which is charged 6d. a gallon, but palm-oil is free. It is a vegetable oil, and why should it be free when cotton-seed oil is charged 6d. 377. The Chairman.] I presume it is because palm-oil has been specified and the other oils have not ? Mr. Glasgoio : Yes. Witness : The article I imported is fit only for soapmaking, and cannot be used for anything else. It is rancid in taste, while cotton-seed oil is refined for culinary purposes. 378. The Chairman.] What is the difference between palm-nut oil and palm-oil?— The one is oil from the fruit, the other is oil from the nut. Cocoanut-oil is subject to duty, I presume, in the