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understood Mr. Bruce to mean was that it would be better able to pay that duty when times were flourishing. I was asked whether I could go into the argument—to explain my views upon a policy of that kind. 82. The Chairman.'] He appears to have got you to say whether the colony would be obliged to pay 20 per cent, more for these goods, in order to enable the manufacturer to pay three times as much wages as are paid at home ?—What I thought was that I was willing to put on this 20-per-cent, duty to assist the industry; but I did not mean to say for a moment that that 20 per cent, would be put on the price of goods to the consumer. 83. Would you raise your price to the consumer? —I believe the price would not be raised; the competition would so regulate the prices that the consumer would pay very little more than at present. 84. You said that 85 per cent, was the proportion of wages paid for an engine to cost £100 made in the colony ; does that include the manufacturer's profit ?—lt includes the maker's profit. 85. Mr. Garrich.] Do I understand you that, when speaking of 20-per-cent. duty, you would have nothing differential as regards the material used, such as nuts and bolts; would you impose the duty upon everything but nuts and bolts, or would you put the 20 per cent, on everything ? — My own feeling would lead me to think that nuts should be admitted free; coach and engineers' nuts and bolts to a certain size should be admitted. 86. For the reason, I apprehend, that it would cost more to produce them here than the article is worth ?—Yes ; considerably. 87. Now, as between the prosperity of four or five years ago and the depression of to-day, is there any depreciation or reduction of the rate of wage to the skilled workman ?—There is no material depreciation ; there has been, in some cases, a slight reduction, but for a short time only; but an inappreciable reduction. 88. Skilled mechanics, practically, refuse to work for any depreciated wage, without regard to time?— Yes ; the facilities open to them to go to Victoria, where the wages are high, enable them to carry out their views with regard to the rate of wage. 89. May I infer from that that skilled mechanics would rather be out of employment on what is called " strike " than consenting to any lowering of wages, as a rule ?—I rather think they would ; but for some years there has been no disposition to interfere with wages at all, but on some slight cause the men have left their work. 90. Is there any differential rate between the Government workshops and private establishments ?—Wages are about the same; if anything, they are a little lower in the Government shops. 91. Have you taken into consideration at all, in allowing for the operation of causes which have led to the present depression, the inability to employ capital in productive industry ?—Yes ; I think that is one cause, and perchance the high rate of wages in the colony is a great bar to more capital being employed in manufactures : but this is beyond our control. 92. In there any recognized rule of profit in your trade similar to those under which mechanics contend for a certain rate of wages :is there any certain rate of profit ? —I may say there is not. Formerly we had what is termed rates for labour, that is, if we sent a number of men to a place there was so much for them per day. But the system of contract has produced such competition that we are contracting at the lowest prices and cutting down to iess and less, while wages keep at the old. standard. 93. Three or four years ago was there a recognized ratio of profit, and, if so, has it become less now ?—To all intents and purposes the ratio of profit varies, while the rate of wages remains the same. Ido not think that 20 per cent, will increase the charge to the consumer. I think it will rather have this effect: that persons, instead of sending Home for goods, will get prices in the colony, and that competition will regulate the prices. If we had sufficient work, at a little advance on present prices, we should do very well. We are suffering more from want of sufficient work than from the low rates. 94. Would not that want of work arise from the fact that persons cannot get a return for their capital ? —lt does not so much apply to our trade. 95. What do you consider, in your trade, is the cost attached to importing an article?—Do you mean to include freight and charges ? 96. Everything? —I should say that in our line of business it would be from 15 to 20 per cent. 97. More than that, would it not be?—l think not for heavy machinery, which does not take up much room. 98. What is the freight on boilers—heavy boilers ?—That is different. Boilers take up a great deal of room, and most large boilers are made in the colony. May Ibe allowed to explain that the effect of competition on prices is to leave-little or no profit attached to the article. This competition is brought about, to a large degree, by the small amount of trade doing. 99. Mr. Peacock.] In the event of 20 per cent, being put on, you say that competition would bring down prices, that the consumer would not have to pay more ?—He might have to pay a little more, but he would not have to pay 20 per cent. 100. Twenty-per-cent. is looked at as a large duty, larger than we have been accustomed to ?— Yes. Hitherto we have had no assistance at all. 101. Suppose that, by putting on a large duty, you stimulate your trade, and competition becomes brisk, then, you say, that the result of that competition will be to bring the prices to nearly what they were before the duty was put on: would not that lead to a further duty, in order to keep up the rate of profit ?—I do not think that prices would be brought back to what they were before the duty was put on. What I say is that there would be a great deal more work to be done. There might be a small increase in price, but the increased amount of work would give the engineer his profit. 102. If a duty were put on so as not to cause undue stimulus, what then would be the effect ? —I think if you put on anything less than 20 per cent, the importation will be as large as it is to-day.