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with the proposed grading. All the exporters were represented at the meeting and were unanimously against any such grading. They claimed that neither they nor the manufacturers abroad had asked for it. The attitude of the exporters, briefly, was that each of them had his own system of grading, which was recognized and acceptable to their customers in Europe and America, and to set up a, system of Government standard grading, although not compulsory, would have a detrimental effect on their business. As a result of this stand taken by the exporters the setting-up of a Government grading has been set aside for the present. It was not recommended by the Commission, and not intended by the Government, that the Government grading should be compulsory. It was therefore futile setting up standards and engaging a grader when the exporters would not avail themselves of his services. The following are the draft regulations prepared by the Department, and subsequently discussed by me with the exporters in conference : — Proposed Regulations foe Tim Grading of Kauri-gum. 1. For the purposes of these regulations— " Grader " means any grader of kauri-gum appointed under the Kauri-gum Industry Act, 1908 : "Owner" means any owner, shipper, exporter, or consignor of kauri-gum, and includes the agent of any such owner, shipper, exporter, or consignor, and also includes, in the case of a company, the managing director, manager, secretary, or other principal officer of the company in New Zealand : " Foreign matter " means any material other than kauri-gum. 2. Any owner of kauri-gum may apply to the Grader to have his kauri-gum graded, in the manner hereinafter prescribed, prior to its being exported. 3. Among the various classes and subclasses into which kauri-gum is put up prior to export, the following classes and subclasses may be recognized by the grader in any grading carried out pursuant to these regulations : —■ Class I. — White Range (him, (1.) Dial or bright gum. . (7.) (Jut or clean chips. (2.) Rcscrapcd. (8.) Cut or clean seeds. (.'!.) Seven-eighths scraped. (9.) (Jut or clean dust. (4.) Three-quarter scraped, or No. 1 ordinary. (10.) Diggers' chips. (5.) No. 2 ordinary, including good hard nuts. (11.) Diggers' dust. (6.) No. 3 ordinary. Class 2. — White Swamp Gum. (1.) Bold (with heart). (4.) Chips. (2.) Nuts (with heart). (5.) Seeds. (3.) Weak. ((i.) Dusk Class 3. — Black Gum. (I.) Rcscrapcd. (7.) Cut or clean chips. (2.) Bold unscraped. (8.) Cut or dean seeds. (3.) HI scraped. (9.) Cut, or clean dust. (4.) B2 scraped. (10.) Washed chips. (5.) Bl uuscraped (including nuts). (11.) Washed seeds. (6.) B2 unscraped (including nuts). (12.) Washed dust. Class 4. — Bush Gam. (1.) Rcscrapcd limb bush. (3.) Ground bush and garbs. (2.) Limb bush " all in," or graded Nos. 1, 2. (4.) Bled bush " all in," or graded Nos. 1, 2, 3, and chips and dust. 4. (a.) In grading kauri-gum, other than chips, seeds, and dust referred to in clause 5 hereof, the following sha," be the maximum number of points for allotment with respect to the following characteristics thereof : For size> 20 points ; for hardness, 20 points ; for colour, 20 points ; for cleanness, 20 points ; for freedom from foreign matter, 20 points. (6.) A separate marking shall be made by the Grader in respect of the characteristic of " dryness," the maximum number of points therefore to be 20. (c.) The following shall be the standards in accordance with which the various grades of kauri-gum referred to in this clause shall be determined : Grade " excellent," 110 to 120 points (both inclusive) ; grade " superior," 100 to 109 points (both inclusive) ; grade " very good," 90 to 99 points (both inclusive) ; grade " good," 80 to 89 points (both inclusive) ; grade "fair," 70 to 79 points (both inclusive) ; grade " common," 60 to 69 points (both inclusive). 5. (a.) In the grading of kauri-gum chips, seeds, and dust that will pass through a sieve of Jin. mesh the following shall be the maximum number of points for allotment with respect to the undermentioned characteristics thereof : For size, 20 points ; for hardness, 20 points ; for colour, 20 points. (6.) A separate marking shall be made by the Grader in respect of the percentage of the real gum content of such chips, seeds, and dust, and such marking shall be based on a test of such chips, seeds, or dust made, by the Maclaurin salt-vacuum process, giving the quantities per centum of the following constituents : (1) Moisture, (2) real gum content, (3) organic matter other than gum, (4) mineral matter. (c.) The following shall be the standards in accordance with which the various grades of such chips, seeds, and dust shall be determined : Real gum content—-Grade A, 80 to 100 per cent, (inclusive!) ; grade B, 70 to 79 per cent, (inclusive) ; grade C, 60 to 69 per cent, (inclusive) ; grade D, 50 to 59 per cent, (inclusive) ; grade E, 40 to 49 per cent, (inclusive) ; grade F, 25 to 39 per cent, (inclusive) ; grade G, under 25 per cent. 6. No grader's certificate as provided for in clause 8 hereof shall be issued in respect of any lot of kauri-gum which has been adulterated or mixed with any other gum, or with any material not naturally associated with kaurigum in the soil from which it is removed. 7. The charge for grading kauri-gum hereunder shall be such fee, or at such rate, as the Minister of Lands may from time to time approve as being reasonable, and shall be payable by the owner on demand to the Receiver of Land Revenue for the district of North Auckland. 8. As soon as possible after grading any kauri-gum, the Grader shall stamp, or cause to be stamped, each package thereof with a mark in red colour (hereinafter called a "grade-mark"), as shown in diagram No. I of the Second Schedule horeto, indicating the grade of such kauri-gum as determined in accordance with the provisions of these regulations, and shall deliver to the owner thereof a certificate in or to the effect of the form No. 2 sot out in the Second Schedule hereto for each separate grading indicating the grade of such kauri-gum, and setting forth the points allotted therefor.