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property, loss through absence of the worker on account of drunkenness, petty theft, pillage of cargo, &c. Those were among the items which occurred to the Committee when considering the question of what obligation should be imposed upon the union in return for this great consideration of preference. There is nothing more that the Employers' Association have to suggest in regard to the preference clause. The next clause we have to deal with is clause sof the new Bill—" The registration of industrial unions." You will notice that in subclause (3) of main clause 5 there are enumerated a considerable number of rules running as specified from (a) to (k), which the Act stipulates shall be incorporated in the rules of any industrial union desiring registration, whether of employers or workers. My committee think it would be a good plan that these rules should be added to in the direction that the union, whether of employers or employes, should guarantee all its members to be bond fide tradesmen in the business or trade represented by that union, so that there shall not be a mixture of men of all classes in a union—that is, for example, that the members of the Bootmakers' Union shall all be bootmakers, and the members of the Grocers' Union shall all be grocers, and so on. 9. The Chairman.] We understand that the position taken up is that the union shall be open to any men who like to apply for membership. Is that so ?—We would like that stipulation qualified to the extent that the words " any men," which you have just quoted, shall be bond fide tradesmen of their particular union—that is, a plumber shall be ineligible as a member of the Grocers' Union, and a printer shall be ineligible as a member of a plumbers' union. 10. The Chairman.] You mean the union shall not be open to any but competent tradesmen of a particular trade? —Yes, so long as the said tradesmen are actually engaged in that line of life. 11. Mr. Lewis.] So as not to inflate the membership?— Yes; and also various other reasons that will suggest themselves to the Committee. I think it is a reasonable suggestion. Another suggested rule is that any worker proved to be dishonest should be expelled from the union to which he belongs. Assuming that a man has committed a theft, he should not be eligible as a member of the union, seeing that preference is to be granted, and an employer may thus be compelled to accept the services of this man whom he knows to be dishonest. 12. The Chairman.] Before we leave this particular point as regards unions being open to only bond fide tradesmen, if that clause which you propose should be put in, how do you propose to deal with unskilled labour ? —ln the case of casual and unskilled labour special provision would have to be made. 13. You would confine that clause which you suggest to skilled tradesmen alone ?—Yes. Unskilled labour would have to be ranked and regulated in a different manner from skilled trades. Mr. Ballinger : I have also a suggestion to make—" that all members and officers of unions be bond fide members of the trade they represent," should be added to Mr. Morpeth's amendment. Mr. Morpeth: Yes; I have it here in a separate manner in regard to officers—"That the officers of one industrial union shall be ineligible to hold office in any other union." If it be inserted, " officers and members only be bond fide tradesmen," that will cover it, I think. Begarding clause s—registrations—registration —" any society consisting of not less than five persons," &c, : We would suggest that " two " should be substituted for " five." For instance, take the bacon-curers. There is, in this line, one factory in Wellington City and another in the province, but not in the city. There are no others in Wellington Province; they would be debarred from registering as an industrial union under this clause. 14. The Chairman.] Have you anything more to say in regard to this clause, Mr. Morpeth ? — No, sir. Mr. Ballinger : I have a suggestion to make in connection with clause 11, subclause (2) —that the word " Court " should be substituted for " Board." 15. Mr. Morrison.] " Board " occurs three times; do you object to it in every case ? Mr. Morpeth : Yes; we think the appeal should be from the Eegistrar to the Court, and not from the Eegistrar to the Board. In regard, to subsection (2) of clause 12, the Association thoroughly approves of this, but they would like to have it made a little clearer. 16. Mr. Hutcheson.] You want the words "of workers" inserted?— Yes; "of workers"—• " an industrial union of workers " : the object being that a man must be clearly ranked on one side or another. Either workers or employers must be meant, and in our opinion the words "of workers" should be inserted; otherwise the clause is approved of by the association, but they would like it to read more strongly and more clearly—" that an industrial union of workers registered under the Act shall be debarred from carrying on, trading," &c. 17. Mr. Morrison.] Did you say " shall be debarred " ? —Yes ; "An industrial union of workers registered under this Act shall be debared from carrying on, trading, manufacturing, or mercantile operations, or any operations for pecuniary gain." 18. Would not the word "prohibited "be better than " debarred " ?—Yes, perhaps so. Under the Companies Act, or some other vehicle such as that, the resolution to so carry on must be made in the union if the workers desire to engage in business. The point is that whilst registered as workers they shall not occupy the position of masters. Clause 17 is the next one I propose to deal with: " Industrial unions to send half-yearly lists of members and officers to Eegistrar." If you turn over the page you will see that subsection (4) states " a penalty be imposed not exceeding £2 " ; and under clause 6, " Proceedings for the recovery of such penalty shall be taken in a summary way." I may say at present notice is given by courtesy to members of unions. If this clause is to be complied with, we would suggest that it should be inserted in the clause that it be part of the duty of the Eegistrar to give, say, two weeks' notice. Clause 21 is the next amendment —" Industrial associations." This reads, "Any council or any other body, however designated, representing not less than four industrial unions of either employers or workers, may be registered as an industrial association of employers or workers under this Act." The old Act says, " That any number of industrial unions may be registered as industrial associations of employers or workers." This is a point we think should be considered. In a district where there are a lesser number than four they would be debarred from forming an industrial association. It becomes rather important when only the

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