J. A. WALLACE.I

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have been discovered in the Mount Arthur district, Wo have, received reports from firms manufacturing asbestos goods in New Zealand, and they have assured us that the quality of the goods is good. I understand that Mr. John Hutcheson, of Wellington, has given evidence to the Committee on this point-. We have had a man prospecting for some nine months of the year for some five or six years past, We arc satisfied with the result. Last year about 45 tons were packed down on horseback at, a cost of £9, £10, or £11 a ton, according to the weather. A good deal of it was tested and manufactured at Christchurch, with the result that the demand has increased. We cannot go on with the pack-work. With the freights from Canada reduced we are on the market with Hie rest of the world. We desire help from the Government with regard to road facilities. There is already a decent, graded track to the mine. If we get help in that, respect I think we can dispose of thousands of tons of asbestos yearly. Asbestos a few years ago was only valuable in the long fibre, but asbestos tiles arc now manufactured extensively, and another grade of asbestos can be utilized. We have three grades; the manufacture I have referred to brings second- and third-grade stuff into a marketable commodity-i-grades that a few years ago were considered valueless. We do not, profess to have large quantities of highgrade fibre; but we can only sec what is on the surface; mining is required. We understand that in the case of asbestos the farther you go down the better it, becomes —that'the length of the fibre usually increases by external pressure. It varies from -J- in. to about 2$ in. in length, 3 in. being very rare. We quarry the second- and third-grade out of the hillside, similar to loading a dray from a gravel-pit. It is suitable for asbestos-sheet making. The land has timber upon it, and the land itself is suitable for closer settlement; it is good grazing-country. Our company is quite prepared to help in the construction of the road. We have an order for 3,000 tons if we can execute it, provided it is according to sample. The length of the road would be fifteen or sixteen miles. The price offered for the 3,000 tons would be a payable one. We cannot export asbestos until there are decent facilities for bringing it out. So far as we know we have got an unlimited supply. The order was given in 1913-14, before the war. To Mr. Hornsby: The grade of the track is good; it only needs forming properly. To the. Chairman: The local bodies are anxious to assist us in connection with the road. Roughly, we estimate that, the road will only cost about £2,000; there is only one small bridge to build, and there is plenty of metal. I would like to correct a statement made by Mr. Reed, Inspecting Engineer of Mines, in Wellington. Since his report was made some years ago we have been prospecting vigorously. This asbestos is in bush country. We know the value of the asbestos there by constant, prospecting. I think Mr. Reed should have qualified his statement by saying that his report was eight years old. The Chairman: Mr. Reed's statement was "Asbestos exists here, but not in payable quantity." Mr. Wallace: I-saw Mr. Reed last week; he is satisfied that his report is an old one. Such a statement circulated throughout New Zealand is calculated to do harm to our company. Our company' is being formed at the present moment; a meeting is to be held in Christchurch next week. 7(3 Mr. Craigie: With proper access to the mine as far as we can see we can compete quite well with the outside market. We have everything in our favour; we have cement close by, and I think the labour is available. j J. Watt, Gas Engineer, examined. I thank you for the opportunity have so kindly afforded me of trying to place before you a few facts in reference to the immense value of a few of the unlimited undeveloped resources, mineral and otherwise, of the district, I may,here explain that I have no ulterior motive, material personal interest, or connection with any company, body, or syndicate, nor can or will I derive any personal money benefit by the establishment of any of the industries which I advocate; my only motive is that it seems a pity —almost bordering on a crime—to allow such vast resources of mineral wealth that lie at our very door to remain undeveloped. Wo have the minerals, and we have the means here in New Zealand—here in Nelson —where by the practical application of applied science we could not only revolutionize the industries of the district, but materially benefit, the entire Dominion by millions of pounds. Yet, strange as it may appear, no one seems to have the courage lo take the initiative, and those into whose hands were placed in trust for that sole purpose—viz., scientific research —the enormous fortune of some £250,000 absolutely- refuse to spend a single penny of what was given in sacred trust some three years ago for the benefit of those to whom it was bequeathed, the people of Nelson District. The only ones that have benefited have been the lawyers engaged in litigation and the trustees who employed them. Therefore every one who has the interest and prosperity of the country at heart must welcome the present action of (he Government in appointing an Industries Committee of gentlemen well qualified by their large and varied experience and business ability and practice, their knowledge of the various industries of the country, to examine, inspect, receive and take evidence and facts of the unlimited wealth in the undeveloped resources of the country, and giving special attention to those particularly favoured places, such as Nelson, where, lying at our very door, so to speak, we have immense deposits of iron-ore, copper, chrome, barium sulphate, scheelite, and asbestos. &c. First, for example, we have the actual outcrop of the iron-ore deposit at Parapara, estimated by the Government Inspector of Mines as over 60,000,000 tons. 1 am quite aware that thousands of pounds have been spent or squandered, and all to no practical purpose, not so much in trying to demonstrate its practical value as an iron-producer, or to establish an iron industry, as to puff its exaggerated imaginary claims and possibilities as an iron-producer in order to induce some far-away syndicate or speculator to invest and find out its actualities for themselves; whereas if half the money expended had been spent in proving its actualities the iron industry would have been an accomplished fact to-day; and