THE COLONIAL INDUSTRIES COMMITTEE.

11

H.—No. 7.

would come within the Pelorus Sound District. The boats would have to go outside to fish. Taking everything into consideration, Stewart's Island is best adapted for the establishment of fisheries. 85. Has anything been done in consequence of the report of the Fisheries Committee made two years ago?—No. 86. There has been a Bill passed to protect fisheries to a certain extent ?—Oyster fisheries. 87. Did the report make any other recommendation I—lt1 —It recommended legislation for the purpose of preventing nets being used of small meshes. In using nets to catch flounders, they take all the fry in. I think it would be desirable to procure by legislation some right or protecting claim over banks at a greater distance than three miles ftom shore. 88. The Chairman.] It is questionable whether the Legislature has the power to do that ?—1 understand a Bill is in preparation to deal with this. I have been told that the Legislature can deal with the matter as regards anyone in New Zealand, but could not affect foreigners. 89. Mr. Creighton stated that in different parts of the Province of Auckland oysters are lmrnt for lime, and, in fact, the greater portion of the lime used in Auckland is made from oysters. Thursday, 14th September, 1871. Mr. J. Macandrew, M.H.R., in attendance and examined. 00. The Chairman.] Can you give the Committee any evidence with regard to the efforts which have been made towards the establishment of paper manufactories?—That is a sibject in which I have taken very great interest for some years, and it is now six or seven years ago when, as a member of the Provincial Council of Otago, I was successful in getting a resolution passed authorising the Government of that Province to offer a bonus. Unfortunately, the resolution did not define the amount, and the Government only offered .£1,500. I have reason to believe that had they doubled that offer at that time a paper mill would have been in existence now in Otago. I am induced to believe this from correspondence which I had at the time with parties who were in a position to have gone into the manufacture. The matter has never been taken up there since,but I haveno doubt if the Colonial Government were to offer a suitable bonus, perhaps £5,000 or less, the thing would be taken up at once by parties in Dunedin, as I know that Mr. M'Glashan, of Dunedin, has been, and is now, in correspondence with parties at home upon the subject; andhe shewed me the last letter he received, from which it appeared that a complete paper mill could be established for about £8,000. That is, a mill suitable for turning out printing paper. 1 may say that Mr. M'Glashan proposed not to use flax, but a species of grass which is very plentiful in Otago, and which is known as snow grass, and supposed to be superior to Esparto or Spanish grass. The Provincial Government is now sending home one or two tons of that grass to the Paper Makers' Association in England, for the purpose of ascertaining whether it would pay to send it home in the raw state. I have seen half-stuff manufactured from it, and it certainly seems very superior to either the Esparto or the flax. The snow grass has been manufactured into half-stuff in Dunedin on u small scale, and there is no doubt whatever as to its suitability for the purpose of paper making. Therefore, I think that with that material and the flax there is an unlimited supply of the raw material. 1)1. Mr. Acland.~\ Was the snow grass sent home unprepared?—lt is being sent home unprepared, and merely cut and dried. It is supposed to be worth at home, according to the report, about £22 a ton. 92. The Chairman.] Do you know whether anything has been actually done in Otago ?—Mr. M'Glashan has been endeavouring to form a Joint Stock Company. He has obtained very accurate and full information on the matter, and correct data as to the cost of everything connected with the manufacture of paper. However, he has not succeeded yet in forming a company. 93. Do you know whether he has tried any actual experiments'!—He has imported a machine for converting the flax into half-stuff or pulp, which he intended to send home dried and in a pressed state, and I believe the engine has been in operation, but I have not seen it. I think he has only sent home small parcels of the half-stuff, want of funds, I believe, preventing him from entering into the thing largely. 94. Have you any information as to the cost of the machinery I—Mr. M'Glashan, who is coming to Wellington, is in possession of specifications and all particulars, and he will probably bring them with him. I have reason to believe that for the sum named, £8,000, a very fair manufactory could be erected. 95. Mr. Lightbancl.] Is there no other material in Otago, such as bags and roping, which could be used for the purpose of making a coarse article ?—Nothing could be got cheaper than flax or snow grass. Of course rags could not be obtained in sufficient quantities. In Melbourne I understand they use rope to a certain extent, and you could get a larger quantity of old rags, rope, and canvas in Otago than anywhere else in New Zealand, but there would not be sufficient to keep a paper mill going. 9G. Mr. Holmes.] With regard to the cost of the raw material, do you not think that flax cut on the spot or close at hand would be as cheap or cheaper than rags ?—I decidedly think so. 97. Are you of opinion that the offering of a liberal bonus would be better than giving encouragement by way of protection, even for a limited period ?—ln this particular case I don't think that any amount of protection would have the effect of starting a paper mill. 98. You said a few days ago that a distillery had actually cost the country 15s. a bushel for the grain used during the year. Would it not have been better to have given a bonus for a distillery, and have done with it?—Yes, I think so. 99. Are you not of opinion that the material we have on hand would make the very finest paper? —Yes, either flax or snow grass would make the finest description of paper. Paper has been manufactured from flax which so resembled the paper in a bank note that it was impossible to tell the difference. Flax, I think, is too good for paper making, and yet it is the cheapest material we can get for the purpose, and hence the great advantage New Zealand would have in the foreign market. 100. The Chairman.] Is not the gum an objection?—Of course, the sheets in my possession which were manufactured from flax were much mottled and wavy owing to the gum, but I believe, if a suitable