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a dividend for the current year. The cause of the reduction in prices is that there are too many firms at the same trade, and the market is overstocked, compelling reduction in manufacture and prices. We make a much superior article in drain-pipes in every respect to the imported article, as we have shown you by samples ; but when the Drainage Board of Christchurch called for tenders the importer obtained the contract at about 8 per cent, below the lowest colonial tender, and we are given to understand that the importer is able to secure a profit at these prices. The starting of this industry in the colony has been the means of reducing the prices paid for the imported article very considerably, and for a long time no drain-pipes were imported into Christchurch ; but the depression in trade in Britain, and the reduction of freights, has enabled the importer to successfully compete with us, particularly in cases where freights have been accepted at lower rates than those advertised or generally paid for dead weight. This refers generally to all our goods. I wish to say here that our workmen have up to the present time met us fairly in reducing wages ; but whether we can obtain any further reduction at present is doubtful, although we fully believe the price of labour must be reduced. In the meantime, were 10 per cent, or 15 per cent, duty placed upon drain-pipes, and 20 per cent, on pottery goods, until the labour question were settled, we think we could carry on; also £2 per thousand on imported firebricks. Our reason for asking for duty on firebricks is that we are given to understand that firebricks are often carried in ships from Britain at little or no freight, being taken as ballast, thus interfering with legitimate trade. At present the only fireclay at our disposal we procure from the Malvern District. It would materially assist us if the rates now chargeable for the transit of this article over the Government railways were reduced by a halfpenny per ton per mile. We consider that Government would be no losers by this reduction, as a very much larger quantity would be carried on the railway than is now done. This also applies to the transit of coa[ from the same district. 11. B. Kibe, (for Austin, Kirk and Co.)

No. 87. .Report of Mr. WooDNORTit, Pottery Works, Waikiwi, Southland, to Mr. Commissioner J. W. Bain. 23rd April, 1880. Me. Woodnortii reports that the industry was first attempted on a small scale by Mr. Louis Longuet, of Invercargill. During the past three years Mr. Woodnorth and his two sons have been carrying on the manufacture, but they complain that they have not sufficient capital to extend the trade in order to make it profitable. Several attempts have been made to float a joint-stock company to work the business ; but, owing to the existing depression in trade, it has not been found possible to obtain the necessary support. Mr. Woodnorth and his sons have consequently been struggling away with their own labour, and are making steady progress; but this is naturally very slow, owing to the absence of ready money to increase the production. The clay to be obtained on the ground is the same as that used at the Miiton Pottery Works, and the superior character of the crockeryware turned out shows that it is thoroughly suitable for the manufacture of articles of every-day use. Drain-pipes of a large size, sound, and well glazed, are being regularly manufactured, and a good demand is springing up for them. Indeed, Mr. Woodnorth experiences no difficulty in disposing of all his manufactures, as they have been very favourably received in the local market. He is therefore quite satisfied that the industry could be successfully established on its own merits, provided a little capital (say £1,000) could be found to develop the trade. Manganese, plaster of Paris, zinc, and feldspar are the only imported articles used in the manufacture, and some of those ought to be procurable in the colony. Mr. Woodnorth has had samples of a beautiful white clay, suitable for making porcelain, sent to him from the Waikato District. If he could only get assistance, Mr. Woodnorth would guarantee to turn out a superior description of chinaware. Appended is a certificate from Mr. A. Anderson, general grocer, Harrisville, near Invercargill.

Mr. A. Anderson to Mr. Commissioner J. W. Bain. Sir ,— 19th April, 1880. I am a buyer of the goods made here by Woodnorth, and I can testify that his sewage-pipes, flower-pots, teapots, dishes, &c, are good, ana more reasonable in price than the imported goods of the same class. I have watched the progress of these works for upwards of two years, and lam sure they have shown great perseverance and industry in bringing their earthenware to its present state of perfection. I have, &c, A. Anderson.

No. 88. Evidence of a Deputation from the Christchuecii Native Industries Association, Christchurch, 23rd April, 1880. Present: The Chairman, Mr. Bain, Mr. Stevens, and Mr. Burns. Mr. Allan laid before the Commission copies of the proceedings of the Association. He stated that drainage-pipes had been left free in spite of the recommendation of the Association, and that in consequence a contract of £8,000 had gone to Glasgow instead of to a Christchurch firm. He attributed this to the prejudice of engineers. It was the Drainage Board who had issued the contract. He considered they were part of the Government. Mr. Bain pointed out that the Government had no control over the Board. Mr. Allan: The Drainage Board played into the1 hands of the importer. They called for delivery of the pipes all at once within eighteen months, but not for nine months from the date of tender. Mr. Bain : Was the quality of the local article equal ? Mr. Allan explained that importers had some of the most important parts of the piping — the junctions —made on the spot.