Problems of Empire/Studies in Australia in 1896

by Thomas Allnutt Brassey

STUDIES IN AUSTRALIA IN 1896.

Paper read at the Royal Colonial Institute, February, 1897.

So many papers on various questions connected with Australia have been addressed to the Royal Colonial Institute, that it seemed to me that it would be more useful to discuss some of the questions of which I made a special study during the time recently spent in Australia, than if I attempted to give a general review of the position there, which many of you are much more competent to do than myself.

AUSTRALIAN DEFENCES.

Garrisons for Coaling stationsThe first question to which my attention was devoted was that of Defence. I travelled to Australia by way of Canada, in order to see the naval station of Esquimault, the defences of which were being completed. It is interesting to note that the nucleus of the garrison for this coaling station is furnished from the Royal Marines, but is paid by the Dominion Government the only instance in which this system obtains, though, for reasons which will be given later on, it might be usefully imitated in the case of Thursday Island and King George's Sound. I should like also to say a word on Messrs. Huddart's Canadian-Australian line. The service is maintained by two excellent boats of about 3500 tons, which are well found in every respect, and are exceedingly comfortable from the passenger's point of view. They are capable of a sea-speed of about fifteen knots. A third boat is shortly to be added to the service.

Special studies in Australia. To return from this digression, while in Australia I visited the forts at Port Phillip Heads, Victoria, at Sydney Heads, New South Wales, and at Largs Bay, South Australia, the naval establishments in the three Colonies, and the ships belonging to the different Colonial navies.

Naval defence of Victoria. The naval forces maintained by the Colony of Victoria include the turret-ship Cerberus, which is still armed with her old 10-inch muzzle-loaders. The similar ships, Magdala and Abyssinia, which are stationed at Bombay, have been rearmed with 8-inch breech-loaders. Besides the Cerberus there are two first-class torpedo boats, the Childers and Countess of Hopetoun, and two small second-class boats. The gunboats Albert and Victoria are for sale, or have been sold. The wooden line-of-battle ship Nelson is still kept in commission, and is used as a barrack ship. The dinner given on board the Nelson on the anniversary of the battle of Trafalgar, was attended by Commander Pascoe, the son of the flag-lieutenant of the Victory who hoisted the famous signal.

Personnel of the Victorian Navy.The personnel of the Victorian Navy now consists of 177 men in the permanent force (reduced from 232), and of 152 men in the Naval Brigade or Naval Reserve (reduced from 342) a total of 329 men. The complements required for the Cerberus and the torpedo-boats only amount to 232 men, so that the margin is ample. The torpedo depôt is in excellent order, and the torpedo-boats are frequently exercised at steam tactics and in running torpedoes. The Cerberus is also in good condition. The personnel is, on the whole, good and efficient; but the reductions in its numbers, as well as in its pay, in common with other branches of the public service, and the consequent uncertainty as to the future, must tend to have an adverse effect on efficiency.

Fortifications—armaments—garrison.Upwards of 900,000l. have been spent on fortifications and their armaments by the Colony of Victoria. Port Phillip, like Port Jackson, has been made one of the most strongly defended ports of the Empire. The entrance is narrow, and a vessel must pass for several miles along a channel commanded on both sides by the guns in the forts; mining defences are also provided. The forts are manned by 288 Permanent Artillery—a very fine corps—who would be supplemented in wartime by 675 Garrison Artillery Militia, a large proportion of whom are recruits. The total military force of Victoria, including the above, numbers about 5000 men—of whom 2985 are militia, 775 are volunteers in the Victoria Mounted Rifles, and 899 are in the Victorian Rangers.

Defences of New South Wales.In New South Wales no ships are at present maintained by the Colonial Government. There are two partially paid naval forces. The naval brigade consists, for the most part, of ex-seamen, whose duties in case of war would apparently be to assist in manning the forts. The Naval Artillery Volunteers would man the torpedo-boats. The guns in the defences of Sydney Heads are mounted at a good height above the sea, and are well distributed. I must leave it to experts to say whether Sydney or Melbourne is the more strongly defended. The permanent forces of New South Wales include over 600 artillery, and a few submarine miners. Besides these there are 800 cavalry, 500 artillery, and 2500 infantry—either militia or volunteers. The peace establishment of the New South Wales forces is nearly 6000 men.

Defences of Queensland.The Queensland Navy includes two gunboats of 450 tons, manned by the naval brigade. The actual strength of the military force is over 3500. The permanent artillery number only 174. The strength had been so much reduced that it was impossible to provide reliefs for the garrison of Thursday Island, and to maintain it at its proper strength; some steps have recently been taken to remedy this evil. A battery of garrison artillery militia is being raised at Cairns.

Defences of South Australia.The South Australian Navy possesses one heavily-armed little cruiser, the Protector. The permanent crew only numbers seventeen, including officers, the complement being completed from the naval brigade. When my father and I went on board, the ship was under way. We steamed out to sea, dropped a target, and gunnery practice was gone through while steaming at the rate of seven or eight knots. Though the bulk of the naval brigade men had only been on board a few days, the practice was in most cases extraordinarily good. We were very much struck with the efficiency displayed. At Largs Bay there are small forts, the main purpose of which appears to be to protect Adelaide from bombardment. The military forces of South Australia have recently been reorganized, and now comprise about 1200 men. The number is small, having regard to the size and population of the Colony. By the Act framed in December, 1895, every male inhabitant of the Colony between the ages of eighteen and forty-five is liable for service; and the military forces may be called upon to serve in any part of Australia and Tasmania.

Defences of Western Australia.In Western Australia the military force is small. The garrison for the defences of the important coaling station of King George's Sound—which must be the base for the cruisers protecting the trade approaching Australia via the Suez Canal or the Cape of Good Hope is much below the required strength. Part of the garrison is to be provided by South Australia, but the growth of Western Australia should obviate the necessity for this inconvenient arrangement.

Tasmania.The military force of Tasmania only numbers 800 efficients, and does not seem to be in a very healthy state.

To sum up. It may well be doubted whether the money spent by the Colonies on their local navies is in all cases well spent. In South Australia the Protector is so cheaply maintained that the expenditure is justified. In Victoria, owing to the large extent of open water inside the defences at Port Phillip Heads, it is desirable that there should be some floating defence for Melbourne. The Cerberus and the torpedo-boats are sufficient for the purpose, and would probably act as a greater deterrent to hostile cruisers than the forts at the Heads. They could be kept available for emergencies with a very much smaller expenditure on permanent staff. It is not clear what service the Queensland gunboats could render in case of war.

Lack of military organization in Australia.The military forces at present maintained are, with some exceptions, insufficiently trained, and are unprovided with equipment to enable them to take the field. The militia and volunteers, who constitute the bulk of these forces, have only a few days' continuous training during the year. Even the camps of exercise, which do so much to promote the efficiency of both officers and men, have been often abandoned in these bad times. There is plenty of good material in the Colonial forces, but it certainly needs to be better trained and properly equipped. Though some steps have been taken in this direction, the Federation of Australia is especially necessary for the purpose of defence. Were Australia federated it should be possible to effect considerable economies in the permanent staff, and at the same time to obtain greater efficiency.

The Australian Auxiliary Squadron.Against a serious attempt at invasion the defence of Australia rests on British fleets many thousands of miles away. Against attacks on commerce and raiding expeditions (viz., two or three cruisers and one or two transports with troops) the best defence is an active naval defence by ships which are able to pursue and fight the cruisers of the enemy, wherever they may be found. This active naval defence is partly provided for by the Australian auxiliary squadron, which, by an agreement entered into in 1887, is equipped, manned, and maintained, at the joint cost of the Imperial and Colonial funds. The squadron consists of five cruisers and two torpedo gunboats, three cruisers and one gunboat being always in commission, and the remainder in reserve. The cruisers are satisfactory little vessels of their type, and well fitted for their work, except on the southern coasts of Australia, where larger and more powerful vessels are needed. The torpedo gunboats belong to a class which is singularly ill-adapted for service on the Australian station. The contribution paid by the several Colonies under the agreement is 126,000l., 35,000l. being supposed to represent interest on first cost, and 91,000l. being for maintenance. A reference to vote 16 of the Navy Estimates shows that, in addition to the 35,000l. an annuity of 60,300l. is paid by the British taxpayer.

Localisation or squadron a mistake.One point in this agreement demands special notice. By article 4 the vessels shall be employed beyond the limits of the Australian station only with the consent of the Colonial Governments. The localisation of the Australian auxiliary squadron, in deference to the wish of the Colonies, is a mistake. I gave an illustration of this in an address in the Melbourne Town Hall last October, and the question is so important that it will bear repetition here. During the troublous times of last year it seemed quite possible that we might have found ourselves at war with France and Russia. The naval force maintained by these powers in waters in the neighbourhood of Australia is absolutely insignificant compared to our own; but in China the Russian and French squadrons were equal, if not slightly superior, to the British squadron, much as it has been strengthened in recent years. If the British-China squadron were to be defeated in battle the command of the sea between Cape Horn and the Suez Canal would be temporarily lost, British commerce would be interrupted, and Australia would be liable to invasion by Russian troops from Vladivostock, or French troops from Saigon. The squadron now in Australian waters would be powerless to prevent it. If the British-China squadron were reinforced on the outbreak of war by ships from the Australian or Pacific stations, it would have a reasonable prospect of defeating, or, at any rate, holding in check the combined squadrons of France and Russia. It is certain that the vessels used for this purpose would do more under present circumstances to defend the coasts of Australia and Canada in Chinese waters than they would ever do if they remained in Australian or Canadian waters. I do not wish to be understood to suggest that the squadron in Australia should be reduced and that in China strengthened in peace time.

Against raiding expeditions accompanied by a few troops which might escape our cruisers, Australia must be prepared to defend herself by maintaining a military force, not necessarily numerous, but certainly efficient and capable of taking the field against disciplined troops. An efficient military force in the Australian Colonies would not only render them secure against attack, but could also give valuable assistance to the common defence of the Empire by capturing the naval bases of the enemy in neighbouring seas.

Appreciation by the Government of the Australian Auxiliary Squadron. Though the agreement as regards the auxiliary squadron is only made for ten years, it will not terminate, except on notice being given by the parties to the agreement. In a recent speech delivered before the British Empire League, the Duke of Devonshire said: 'I may say that Her Majesty's present Government attach the greatest importance to the renewal in some form or other of that agreement.' From the Imperial point of view, a contribution of 135,000l. a year is a very small item in Navy Estimates, which amount to 22,000,000l. At the same time this contribution is valuable as the recognition of a principle, and as an earnest of what our fellow-subjects in the Colonies may some day be prepared to do.

The burden of Imperial Defence.At the last meeting of the Institute at which I was present, when Sir George Clarke read a most valuable paper on Imperial Defence, the discussion which followed turned largely on the relative responsibilities of the mother country and the Colonies in this matter. In the period of growth of her Colonies it seems to me clearly the duty of the mother country to undertake the main burden of defence. In the present circumstances of the Australian Colonies—which, excepting Western Australia, have been passing through a period of severe depression—it is impossible to expect a serious money contribution to the defence of the Empire, and we have no right to expect it until we are prepared to give them a constitutional voice in the control of that expenditure. When the Colonies no longer require such a large proportion of their resources for the development of their territory, we may surely hope that the Colonial taxpayer will be prepared to stand shoulder to shoulder with the British taxpayer in bearing the common burdens. We have been able to hold our own well up till now against our probable enemies, but the history of the past year must impress every Englishman with the conviction that other countries are growing increasingly jealous of our greatness. Before long the British Empire may have to fight for its very existence. May the struggle be long deferred, but when it does come we shall need all the help our Colonies can give us.

A Colonial Naval Reserve.Under present circumstances it is impossible to expect any substantial help in the way of money, but I believe the Colonies could give us, with mutual advantage, very considerable help in the way of men, on the lines suggested in the discussion already referred to. In Canada I obtained some valuable information, and in Australia my father and I took every opportunity of discussing the possibility of establishing branches of the Naval Reserve in the Colonies. We had conferences of shipmasters at Government House. I met representatives of the steamship owners both in Sydney and Melbourne, and representatives of the Seamen's and Firemen's Union in Adelaide and in Sydney, and I received many letters of warm encouragement from all classes of persons, including Swedish and Norwegian captains who had served in British ships. The results of these inquiries are embodied in an article in the Nineteenth Century of December last, and may be briefly summarised here. About 5000 men are employed in the inter-colonial trade and in fishing. A large proportion of these are foreigners, and comparatively few are Colonial born. The foreigners are principally Scandinavians or Danes who are naturalised Australians, who look upon Australia as their home, and would be ready to serve her in case of emergency. There seems no doubt that the high rates of pay attract the pick of the seamen from British ships, and that there exists excellent material for the Naval Reserve in the Colonial Marine. The shipowners of Victoria assured me that they would give every facility to Royal Naval Reserve men in their employ to perform their drills, and would not fill their places during their absence. They are exceedingly anxious to have a supply of Colonial-born young seamen coming forward. Their ships are all steamers, and they recognise that they cannot train seamen for themselves.

The training of a Colonial Naval ReserveThe only solution of the difficulty is on the lines I have suggested elsewhere, for dealing with the dearth of British seamen in the British Mercantile Marine. Some of the fine sailing-ships trading to the ports of Melbourne and Sydney should be subsidised by the Colonial Government to carry a certain number of Colonial boys. After three years in these vessels these lads would have a fair acquaintance with seamanship. They should then serve a year in a sea-going man-of-war, at the conclusion of which they would be eligible for the first-class Naval Reserve, and would enter the Colonial Mercantile Marine as A.B.'s. The present retaining fee of a first-class Naval Reserve man is 6l. per annum. To attract and hold Colonial seamen in sufficient numbers in the Royal Naval Reserve the retaining fee would probably have to be raised to 10l. The Colonial Governments might fairly be asked to provide a proportion of the increased fee. The Australian Naval Reserve man, in case of need, would be utilised, in the first place, to make up the complements of the ships of the auxiliary squadron, which are kept in reserve, but he would also be liable to serve, like the Naval Reserve man enrolled in England, in H.M.'s ships in every part of the world.

IRRIGATION COLONIES.

Irrigation trusts.During the last ten years large sums of money have been spent in Queensland, New South Wales, South Australia, and Western Australia, on artesian boring, on the whole with conspicuous success. The water so obtained is used for watering stock, but there is, I believe, only one place—a small settlement in the neighbourhood of Bourke—where artesian water is used for irrigation. In Victoria numerous irrigation trusts have been formed to utilise the waters of the Murray River and its tributaries. These trusts have been unsuccessful financially, and the Government has hitherto obtained but a small proportion of the interest due to them on the money advanced. The principal causes of failure are, first, extravagance in construction, and secondly, the fact that the farmers would not buy water from the trust in a season when there was a fair rainfall. The irrigation trusts of Victoria must therefore be mainly regarded as an insurance against drought. It would be impossible, within the limits of this paper, to review the whole question of irrigation and water conservation, which is of such vital importance to the whole of Australia. I will content myself with saying that I fear the possibilities of developing the interior by irrigation are not so great as I estimated them to be seven or eight years ago. That the possibilities are considerable is evident from the present position of the two large irrigation Colonies of Renmark and Mildura.

Mildura.So little is known in this country of the true history of the enterprises associated with the names of the Messrs. Chaffey; so much abuse has been heaped upon the promoters and others connected with these enterprises; the opinion is so generally held that they have been absolute failures, that it will not be out of place if I ask your attention for a few moments to the subject. I shall deal principally with Mildura, because it has been recently the subject of inquiry by a Royal Commission which only reported last September, and having spent three days there, I am able to speak with some knowledge of its past history and its present position.

Terms of the with Messrs. ChaffeyAfter extensive inquiries prosecuted by Mr. Deakin into the systems of irrigation of California and India, an agreement was concluded in 1887 between the Government, of which Mr. Deakin was a member, and the Messrs. Chaffey, by which the latter acquired 250,000 acres of land on the river Murray. The principal points in the agreement were as follows:

1. A licence to occupy 50,000 acres for the term of 20 years. Crown grants of this land to be issued to the Messrs. Chaffey at the rate of one acre for every 5l. expended on irrigation works and permanent improvements on ordinary land and for every 2l. expended on land subject to flooding.
2. A licence to occupy a further area of 200,000 acres of land, Crown grants on this being issued at the rate of one acre for every 1l., expended on improvements and for a payment to the Treasury of a further £1 per acre.
3. A total sum of 300,000l. to be expended by licensees and their assigns within 20 years.
5. The licensees not to be allowed to sell more than 80 acres of fruit-growing land or 160 acres of agricultural land to any one person, or to retain in their own hands more than 5000 acres of irrigated land.

It has been asserted that the Government drove a hard bargain with Messrs. Chaffey. It was clearly favourable to the former. If the scheme were carried out in its entirety, the Government would receive 200,000l., or 16s. an acre, for land which but for the expenditure of the licensees was practically worthless. The Chaffeys had no sooner obtained this concession from the Victorian Government, and a similar concession from the South Australian Government for land at Renmark, than they formed the Company known as Chaffey Bros., Limited.

Floating of the Mildura scheme.The financial management of the company from the outset was hopeless. The Chaffeys had a very small amount of capital of their own. They no doubt thought that they would be able to raise sufficient capital in the open market, but in this anticipation they were grievously disappointed. The shareholders' capital subscribed is stated in the report of Commission to have been 70,000l., of which nearly 30,000l. belonged to the Renmark undertaking. This amount was obviously quite inadequate to carry through an enterprise of the magnitude of that at Mildura. Various expedients were resorted to for raising money, such as the issue of debentures, loans from banks, &c., a high and increasing rate of interest being paid for the accommodation. Land was sold either for cash or on the instalment principle, the payments being spread over ten years. Large sums of money were derived from this source. In the year 1891 alone over 100,000l. worth of land was sold, and after the initial stages of the undertaking the settlement was largely carried on by the money derived from land sales. As soon as the influx of new settlers ceased, the financial resources of the company became to a great extent dried up. An unsuccessful attempt was made to raise money by a fresh issue of debentures on the London Market in the spring of 1894. Shortly after this the company had to go into liquidation, and its unpledged assets are now the property of the debenture-holders.

Criticism of the Mildura scheme.The management of those departments which were in the hands of Messrs. Chaffey is almost as unfavourably criticised in the report of the Royal Commission as the financial management. 'Foremost among the causes of failure,' it says, 'must be placed the grave errors made in laying out the settlement and in making provision for the supply of water for irrigation purposes.' It is quite certain that the undue spreading-out of the settlement, which now covers over 50 square miles, was one of the principal causes of failure. At Renmark the land was settled block by block owing to the wise control exercised by the Government; the South Australian agreement with the Messrs. Chaffey containing the important provision—which is not to be found in the Victorian indenture—that no grant should issue until water has been laid to some point suitable for the irrigation of each 500 acres proposed to be conveyed. At Mildura the Colony was kept fairly compact at first—that is, as long as settlement went on gradually. But in 1890 and 1891, in response to the extensive system of advertising adopted, a tremendous rush of settlers took place, eager to take up land at the apparently high price of 20l. an acre which the Chaffeys were asking for it. For many months, sales went on at the rate of 10,000l. a month. It is not in the least to be wondered at that when sales were going on at this rate the Messrs. Chaffey should have allowed settlers to take up land more or less where they pleased in Blocks A and B, and should even have sold land in Block C, eight or nine miles from the river. They naturally thought, as most of us would have done, that if settlement proceeded at the same rate the intervening blocks would soon be taken up. They also were, no doubt, influenced by the hope of being able to sell these intervening blocks at an enhanced price. A further reason for the spreading out of the settlement arose from the fact that people would ask for a number of contiguous blocks to be reserved for themselves and their friends, and after the land had been reserved for them, only one or two blocks were taken up or cultivated. This Mr. Chaffey stated in his evidence before the Commission, as well as to me personally, and the statement is corroborated by Mr. Salmon, a valuer, who reported adversely on Mildura as an investment for his clients. Which of us, if we had been in the position of men desirous of making money for the company, would not have been influenced by the same motives? It is very easy to be wise after the event, and to say that every block in each square mile of land should have been taken up before settlers were allowed to select land further out.

The supply of water.To describe the arrangements for the supply of water for irrigation purposes would take too long. There are four separate pumping plants raising water from the river, the most important of which is that known as the Billabong system, and which utilises a creek or billabong as a reservoir. From the Billabong the water is lifted by successive stages into the 50 foot channel, thence into the 70 foot channels, and thence into the 85 and 90 foot channels centrifugal pumps being used. There are 127 miles of main channels and 250 miles of smaller subsidiary channels commanding 33,000 acres of land, over 31,000 acres of which are attached to the Billabong system. When the financial resources of the company became straitened the pumping machinery was allowed to get into a bad state of repair. At the same time from various causes the channels became incapable of conveying the water pumped into them. In certain portions it is estimated that as much as 50 per cent, was lost.

Disadvantage of the Billabong system.On a general review of the management of the Chaffeys, as far as concerns the selection of the pumping plant and the construction of the channels, it seems to me that it is not open to the severe criticism which has been frequently passed upon it, notably in the report of the Royal Commission. They have made mistakes, it is true, and they themselves are ready to admit it. Whether the pumping plant, the machinery and boilers, were of the best kind for the work which they had to do may be open to question, but there is no doubt that they were the best of their kind, and capable, if kept in good order, of supplying sufficient water for the land they were intended to irrigate. That the plant and the power might have been differently distributed with advantage is very possible. The great fault in the Billabong system is that there is no reserve in the event of a breakdown, and that the working of the whole system depends on the weakest link in the chain. That the channels were in many cases hastily and therefore imperfectly constructed is probably true; but I do not believe that any one could have foreseen the excessive leakage and damage from seepage, which did not occur until some years after the channels had been made. The evidence is not conclusive as to the cause of this leakage. It may, however, be due to the boring of crayfish.

Error of judgment in stocking the property.Two other mistakes have been made, for which the Messrs. Chaffey, and particularly Mr. W. B. Chaffey, may be held partly responsible. In many cases the wrong sort of trees were planted to suit the particular soil, that is to say, apricots were planted on soil more suited to lemons, and vice versâ, the consequence of which was that many blocks have had to be replanted. Another mistake was, that many of the trees supplied to the settlers were not true to name, and had afterwards to be rebudded or replaced. It is difficult to see how the first error could have been avoided until actual experience had been gained of the capacity of the various soils on the Mildura settlement. For the second error the nurserymen who supplied the trees are mainly to blame. Both these misfortunes have greatly retarded the progress of Mildura. Future settlers will benefit by the experience of their predecessors.

Opposition to new settlers.Prominent among the causes for the failure of the company must be placed the action taken by the settlers themselves in 1892–93. Though the Engineer of Water Supply reports that he found the majority of the settlers were satisfied with the management of the Messrs. Chaffey, there was a strong hostile minority, some of whom claimed to have water supplied to them free, as it had been during the first three years after the settlement was started, though in the advertisements issued by the Chaffeys it was stated that the water rate would probably be about six shillings an acre. This rate was levied in 1890, but in 1891 a very much higher rate was levied. The principal complaint was not so much that the water rate was too high, but that the water supply was insufficient for irrigating the land already planted, owing to the leakage from the channels. The original settlers became apprehensive that if new settlers kept coming in their own plight would become worse. They therefore took steps to deter new settlers from taking up land, and they did in fact succeed in putting a stop to settlement. Their action was perfectly natural under the circumstances, but it dried up the resources with which the Colony was being carried on, and brought about the failure of the company. Had settlement continued at the same rate as in 1891, funds would have been available for lining the channels where necessary, the vacant blocks commanded by the channels would have been settled up as anticipated by the Chaffeys, and the company might have pulled through.

The Government should have retained rights of supervision.If the Chaffeys failed to do their duty in certain respects, ought not the Government in the first place to have seen that the enterprise had a fair chance of being started with sufficient capital? In the second place, ought they not to have exercised some supervision over the progress of the settlement? The Commission hold that the statement that Mildura and Renmark were under the supervision of the Governments of Victoria and South Australia, which was so extensively advertised, and was the means of inducing the majority of the settlers to take up land, was justified by the wording of the indentures. No supervision or control was attempted at Mildura, though numerous official and semi-official visits were paid to observe the progress of the settlement. In South Australia there was some attempt at official control, which was at any rate effective in preventing the spreading out of the Colony.

Fruit-growing at Mildura may be profitable.So far we have been dealing with the questions affecting the settlement as a whole. We must now inquire, What has been the result to individual settlers? In the first place, it is generally acknowledged that the climate and most of the soil of Mildura is admirably adapted for growing fruit under irrigation. There are great varieties of soil. The bulk of the land is mallee scrub. There are, besides, pine ridges and box flats; the soil on the pine ridges is generally considered the best. Fruit trees are said to make more progress in five years at Mildura than they do in other parts of the Colony in seven. Vines, apricots, lemons, oranges, peaches, pears, olives, are amongst the principal trees grown. Lemons are the most paying crop, apricots probably come next. Olives can be grown on the inferior soil—even on that which is affected to some extent by seepage. Fruit-growing at Mildura has been carried on, as we have seen, in spite of many initial difficulties, such as want of a proper supply of water, want of knowledge of the proper trees which were suitable to the different soils, and the dishonesty of nurserymen in supplying trees not true to name. Yet the statements made to the Commission undoubtedly show that, in spite of these drawbacks, fruit-growing at Mildura can be made an exceedingly profitable business. In some cases the returns are extraordinary. Mr. T. Wilkinson, an old Lincolnshire farmer, who had been many years in New Zealand, received in 1895–96 742l. for the produce of eleven acres of vines on his twenty acre block—the net return being about 340l. Mr. Mitting from nine acres of raisins netted 362l., but this apparently does not allow for the value of his own labour. Another witness gives 80l. as the net return from one and a half acres of peaches not yet four years old. The returns from lemon-trees, as given by Mr. Pickering, Lord Ranfurley's manager, and Mr. Levien, are the most remarkable of all. Mr. Pickering gives 740l. as the net return from 20 acres of lemons. Deducting cost of cultivation at 6l. an acre, which is apparently not included, the net return is reduced to 620l., or 31l. an acre. Mr. Levien gives 149l. as the net return from two and a half acres (quarter acre being affected by seepage), after deducting all expenses of cultivation, &c. This is equivalent to a return of considerably over 60l. an acre. To the objection that the returns which have just been quoted are not the average results from land at Mildura, it may be fairly replied that many successful settlers whose land is mortgaged would obviously be reluctant to publish the profits they are realising; and that the settlers who were examined before the Commission, with but one or two exceptions, expressed themselves as exceedingly hopeful if not as confident of success. The favourable opinions expressed as to the future of Mildura are always subject to the provision of a proper water supply, for which many said they would be willing to pay twice or three times the present water-rate of 1l. an acre.

Markets for the Mildura products.Melbourne is at present the principal market for Mildura produce, which is carried by river to Echuca (past Swan Hill) and thence by rail, at 37s. a ton. In 1895 the prices obtained for certain fruits, notably for raisins, were low, owing to individual growers throwing this produce on the market at the same time. In 1895, the prices obtained were 1½d. to 2d. per lb.; in 1896, 3½d. to 5d. per lb. A considerable proportion of the fruit is now dealt with by the Mildura Fruit Preserving Company, and by the Mildura Fruit Growers' Association—a co-operative society of the best kind, which has already done a great deal (as is apparent from the figures quoted above) to secure better prices for its members. The Commission came to the conclusion that the market prospects for Mildura fruits, both green and preserved, are decidedly favourable. Mildura has not yet overtaken the local demand for lemons, oranges, raisins, and dried fruits. In the home market, and in the markets of the world generally, Mildura can only hope to compete, under present conditions, with other fruit-growing countries in lemons, dried apricots and peaches, the best sort of raisins, and olives. Great improvements have already been made in methods of production. It is certain that, as time goes on, the cost of production will be considerably diminished, and further improvements will be made. The fruit-preserving companies are capable of dealing with a far larger quantity of fruit than they deal with now, which means a reduction in the fixed charges which each pound of fruit has to bear. It would be unwise to extend the cultivation of raisins and currants beyond the amount necessary to supply the home demand. The same may be said of oranges. In canned fruits California at present holds the pre-eminence; though it is possible that Mildura, with a diminished cost of production, may be able to compete with her in the future. There is little evidence that the vignerons can compete successfully, with the assistance of irrigation, with wine-makers in other parts of the Colony under natural conditions.

Lack of capital a handicap to development.I have said sufficient to show that Mildura has a great future, provided that she is able to overcome her present difficulties, viz., the defective water supply, and absence of funds to make it efficient. With regard to the former, the principal causes are the condition of the channels, and the bad state of repair of much of the pumping plant. To these may be added the costliness in some respects of raising the water to the land, and the fact that, under the present arrangement of the pumping stations on the Billabong system, a breakdown in one may mean the stoppage of the water supply for the whole area irrigated. What steps are to be taken to remedy the defective supply of water?

Suggestions for the remedy of the water supply: (a) Mr. Tolley's scheme.Mr. Tolley, the Secretary of the Trust, proposes to abandon the whole Billabong pumping system, and to erect a new concentrated station at Red Cliffs, quite outside the limits of the existing settlement, and to improve the Town and Homestead pumping plants. The chief features of his scheme are that the water would be raised in one lift by Worthington pumps into a 70 ft. channel and a 90 ft. channel, and that these are to be connected with the existing channels by the construction of ten miles of new channelling. He also proposes that thirty-four miles of the existing channels and distributories should be lined in the worst places with cement concrete, at a cost of 25,000l. The total cost of the scheme is estimated at 68,000l.—less proceeds of sale of Billabong plant—and the annual working expenses are estimated at 7110l., as compared with 11,000l. under the present system, the saving being chiefly in labour and fuel. Interest and sinking fund would absorb 3732l., so that there would be no immediate relief to the financial strain on the settlement. The advantages claimed for the scheme are: that it would irrigate the whole of the sold land, 15,000 acres, in the time that it now takes to irrigate 4000 acres; that reserve power is provided in case of a breakdown; and that it is capable of easy expansion with the needs of the settlement. Mr. Anderson, (b) Mr. Anderson's scheme.whose report we have already referred to, considers that the better course is to improve the existing system, and to wait till the settlement grows in the direction of Red Cliffs before erecting a new plant at this place. The Commission adopt Mr. Anderson's view. They recommend that a loan, not exceeding 30,000l.—to be expended in lining the channels where required, and in the improvement of the pumping plant, under the supervision of a Government officer—be made to the Mildura Irrigation Trust; and that a further advance of 400l. a month from October 1896 to April 1897 be made, so as to subsidise the work of distributing water for the coming season. Though they recommend an immediate advance of 5000l., to form part of the loan, for carrying out Mr. Anderson's recommendations as to the plant, they apparently do not adopt these in their entirety. Mr. Anderson's proposals are estimated to cost 32,000l., and the lining of the channels 25,000l., or a total of 57,000l. A Bill to give effect to the recommendations of the Commission was about to be introduced into Parliament when I left the Colony at the end of November. By last mail I heard from my father that the Bill had become law. With this assistance from the Government I believe that Mildura will be shortly self-supporting, and will become again a profitable field for settlement. Except in the market gardens in the neighbourhood of Paris, I know of no place where so much money is to be made out of the land. It is an excellent place for any colonist to settle on who has a small amount of capital, and it offers special advantages to a man with a family, as the labour of every member is valuable at picking time. A great influx of settlers at the present moment would be undesirable; but, as the carrying capacity of the channels is increased, it is to be hoped that new settlers will gradually take up the land already commanded by the irrigation system.

The temporary failure of Mildura really an error of judgment.In conclusion: reviewing the whole history of Mildura, there seems to me little occasion for accusing any of the promoters of culpable dishonesty. Great mistakes have been made, it is true, but these are inseparable in a new enterprise of this magnitude. To the Messrs. Chaffey are, at any rate, due the thanks of the Colony for showing that it is possible to turn almost worthless land into a beautiful fruit-garden.

RAILWAYS.

Breaks of gauge a drawback to inter-communication.Before discussing the railway systems of New South Wales, Victoria, and South Australia, a few remarks may be made on Australian railways generally. The first and most obvious point that arrests the attention, as well as the progress of the traveller is, that no less than three different gauges are in use on the Australian continent. Western Australia, whose railway system is detached by over 1000 miles from those of the other Colonies, has adopted the 3 ft. 6 in. gauge. South Australia has both the 3 ft. 6 in. and 5 ft. 3 in. gauge. Victoria has the 5 ft. 3 in. gauge throughout. New South Wales has adopted the standard gauge of the world, viz., 4 ft. 8½ in. Queensland utilises the 3 ft. 6 in. gauge on the various separate systems running inland from Brisbane, Rockhampton, and other ports along the coast. A traveller landing in Adelaide and wishing to proceed to Brisbane by rail would travel from Adelaide viâ Melbourne to Albury on the Victorian border, on the 5 ft. 3 in. gauge; from Albury viâ Sydney to Jennings on the Queensland border, on the 4 ft. 8½ in. gauge; from Jennings to Brisbane on the 3 ft. 6 in. gauge. These breaks of gauge are a great bar to inter-communication between the Colonies, and must lead to considerable loss of economy in working and equipment. It is certain that the breaks of gauge at Albury and Jennings divert a large portion of the passenger traffic between Melbourne and Sydney, and between Sydney and Brisbane from the railways to the steamers. It is satisfactory to know that the subject is engaging the attention of the most capable railway administrators in the Colonies.

Mr. Eddy's scheme of the unification of gaugesThe lines on which reform should proceed were laid down in a letter from Mr. Eddy to the Minister for Railways in New South Wales in 1889. The main principles of his scheme were: (1) That the cost of adopting a uniform gauge shall be borne by the whole of the Colonies affected; (2) the decision must be come to from the standpoint of which gauge (the 4 ft. 8½ in., or 5 ft. 3 in.) can be adopted at the least cost and inconvenience; (3) the whole of the railways in New South Wales and Victoria, the railways in South Australia now laid to the 5 ft. 3 in. gauge, as well as the line to Broken Hill, and all lines in Queensland, south of Brisbane, leading to New South Wales, shall be altered to the standard gauge.

Unprofitable linesA glance at the railway maps of the different Colonies, provided that the inquirer has some knowledge of the physical features and the productive possibilities of the various parts of the continent, will give the best answer to the question whether the railways have been constructed on the best lines for opening up the country, and at the same time giving a fair return on the capital invested. It would be answered in the affirmative as far as the Queensland, New South Wales, and, in a lesser degree, the South Australian railways are concerned. Even in Victoria it might have been answered in the affirmative up to the year 1884. But since that time large sums of money (7,500,000l. under the Act of 1884 alone) have been expended on the construction of lines which do not pay working expenses, much less the interest on capital cost; do little to open up the country; and the principal effect of which has been to take away traffic from previously existing lines. The Age newspaper took a leading part in resisting this reckless policy of railway construction, and in a very strong article published on November 24th, 1896, urged that the non-paying lines should be made to cover their working expenses or the traffic be discontinued.

I do not propose to discuss the railway systems of Queensland or Western Australia, as I had no opportunity of visiting those Colonies.

New South Wales railway statisticsThe New South Wales railways were by the Act of 1888 placed under the control of three commissioners, who are practically independent of Parliamentary interference, as far as the internal management of the department is concerned. Mr. Eddy is the chief commissioner and the responsible head of the department. The Act expired in 1894, but after some discussion was renewed. The following are the principal statistics of the railways for 1895 as compared with 1888. It must be remembered that the returns of 1895–96 suffered considerably from the general depression which still overshadowed all the eastern Colonies; from the drought which caused a loss of 13,000,000 sheep and lambs; from the coal-strike in Newcastle; and from floods at Bourke, which swept away several miles of line.

	1888.	1895.
Miles open	2,114	2,531
Cost per mile	13,114l.	14,538l.
Gross earnings	2,295,124l.	2,820,417l.
Net earnings	764,573l.	1,268,529l.
Working expenses of gross earnings	67%	55%
Capital	28,600,000l.	38,287,090l.
Rate earned, on capital	2·85%	3·44%

Reduction of working expenses on the trunk lines.The high capital cost—14,000l. per mile—of the New South Wales railways is in great measure due to the difficult country through which the lines have been constructed. The worst grades are unfortunately on the trunk lines. Considerable sums of money have been spent in recent years in reducing the steepest gradients, and in lengthening the radius of the sharper curves—a policy which has already led to great economy in working, and is being vigorously continued. The worst difficulties of railway construction in New South Wales have already been surmounted. Future extensions of the system must be mainly over the great western plains, where railway construction presents few difficulties, if we except the bridging of the Darling and its tributaries, which are liable to floods. Lightly built extensions of existing lines are projected at a cost of 2000l. a mile; but even were these lines substantially built for heavy traffic the capital cost per mile of the New South Wales railways should become very materially reduced.

New South Wales—unprofitable railways.New South Wales is not without its burden of unprofitable lines. No less than 1117 miles of line fail to earn their interest charges, though with the exception of the connection between Murrumburrah and Blayney, and that part of the Northern Railway between Armidale and the Queensland border, all lines pay their working expenses. The capital cost of the lines at present unprofitable amounts to 13,300,000l. The loss on the through line to Queensland should be materially reduced were a uniform gauge adopted, giving better facilities for traffic. The opening of the new sulphide works at Illawarra should make a great difference to the receipts on the line from Sydney to Nowra, and many of the at present unprofitable branches may be expected to pay as the country becomes settled up.

Means by which economy is being effected.The principal causes which have led to the improved position of the railways since they came under the present management are: (1) Improvements in the permanent way by a reduction of gradients and curves. (2) Use of the best materials in the repair of the permanent way, and consequent reduced cost of maintenance. (3) Use of much more powerful locomotives and better rolling stock. A very powerful engine has recently been designed in the Colony, embodying the best features of English and American locomotives. The Commissioners estimate that the saving per annum by the reduction of gradients, and the introduction of more powerful locomotives amounts already to 100,000l., and that as the traffic increases in volume, so will the annual saving be increased. Important as the above causes have been in contributing to the improved position of the New South Wales railways, nothing has probably contributed more to this result than the increased efficiency of the staff, and of the labour employed. Mr. Eddy has striven hard to create amongst the New South Wales railway employés the same esprit de corps which exists amongst the employés of his old service, the London and North-Western Railway Company in England, and there is good evidence that his efforts have been attended with success. The average rates of pay of nearly every class of employés in the New South Wales railways were higher in 1894 than in 1888, which may be directly attributed to the increased efficiency of the labour.

South Australian railway statistics.The following are the principal statistics of the South Australian railways (excluding the Palmerston line) in 1887 and 1896:—

	1887.	1896.
Miles open	1,220	1,722
Passengers carried	3,366,000	5,436,000
Tonnage of goods carried	782,000	1,057,000
Gross earnings	550,000l.	986,500l.
Working expenses	350,000l.	583,000l.
Percentage of working expenses to gross earnings	67%	59%
Capital cost	8,461,274l.	12,583,443l.
Interest earned on capital	2·52%	3·21%

Costs.Of the miles at present open for traffic 493 are of the 5 ft. 3 in. gauge, 1229 of the 3 ft. 6 in. gauge. Of the broad gauge lines, the Midland system cost 14,000l. a mile, the Southern system cost 9700l. a mile. The narrow gauge lines have cost from 4300l. (South-Eastern system) to 5400l. (Northern system). There is thus a great saving on first cost by the adoption of the narrow gauge, but there is no subsequent saving in working expenses, as compared with the broad gauge. The Northern line has recently been carried to Oodnadatta, 686 miles from Adelaide. The railway in the Northern territory is narrow gauge. Its present terminus is Pine Creek, 147 miles from Palmerston. The extension of the Northern line for 250 miles from Hergott Springs has been a great burden on the Colony. It passes through desert country. The traffic upon it is practically nil, and only one train is run a fortnight. From four stations fairly distributed along the line the traffic was as follows:—

—	Cattle.	Sheep.	Wool.	(Tons.)	Tonnage forwarded.	Tonnage received.
Oodnadatta	20	23	13	—	62	538
Anna Creek	—	—	—	—	5	19
Strangways Springs	—	—	—	—	6	23
Stuarts Creek	—	—	—	—	8	19

It is difficult to understand why, when the Government decided to make this extension, the railway was not carried up the eastern instead of the western side of Lake Eyre, which would have brought it 150 miles nearer the Queensland border. A considerable portion of the traffic from the back stations on the Barcoo and the south-western corner in Queensland passes to South Australia at present viâ Hergott Springs and Farina. In 1895, 15,000 cattle and over 56,000 sheep were shipped from Hergott Springs alone. As the Southern Queensland line extends westward the whole of this traffic will gradually pass to Brisbane. The South Australian railways would have been enabled to keep this traffic very much longer, and would probably have been able to extend it for a time had the line been carried as I suggest. The only possibility of the Northern line ever becoming remunerative is through the discovery of a rich mining district in the centre of the continent. The idea of ultimately extending the line right across the continent deserves a passing notice. The present termini at Oodnadatta and Pine Creek are over 1000 miles apart; the country between them is a desert. The line would cost at least 5,000,000l. to construct, and would not under any at present conceivable conditions be valuable for through traffic. It is obvious that no goods traffic would pass this way from the southern parts of Australia, on account of the cost of carriage by rail as against the cost of carriage by sea. Little passenger traffic could be expected. Port Darwin is 3000 miles from Colombo, Albany is only 3350 miles, and Adelaide 1000 miles further. It is safe to say that few travellers would prefer the certain discomfort of a journey across the central desert of Australia to the possibility of a rough passage across the Bight without a very substantial saving in time. There would be none at the present rate of railway travelling in Australia.

Railway finance.The rate of interest earned on capital for the year 1895–96 has already been stated to be 3·21 per cent. The actual interest charges amounted to 468,374l., and there was a deficiency of 64,896l. to be made good from the general revenue. Though this result compares favourably with the position ten years ago, it is very much less favourable than it has been in many of the intervening years—the principal reason, of course, being the construction of new and unprofitable lines. For the five years 1888–92 inclusive, the net return on capital was never less than 4 per cent.; in 1890 it was 5 per cent.; in 1891 it was 5·3 per cent. The returns for 1895–96 were affected by the unfavourable season. The present season is even worse. Stock has suffered severely, and the wheat crop has almost been ruined by drought. The coaching traffic, as in New South Wales and Victoria, shows a satisfactory increase, and helps to reduce the loss. The cost of maintenance, renewal of way works, &c., for both gauges has been reduced from 85l. per mile in 1892–93 to 71l. per mile in 1895–96. For the broad gauge the reduction is from 141l. to 104l. per mile, for the narrow gauge from 58l. to 56l. per mile.

Short time for workmen.There are 3600 employés on the South Australian railways. Short time was worked by traffic and locomotive running employés for nearly four years, and was only abolished at the close of the year 1895–96. Short time still continues for the men employed in the workshops. As there is no immediate prospect of there being sufficient work to employ these men full time, the Commissioner recommends that the numbers shall be adjusted to the requirements. 'The continuance of short time,' he says, 'is demoralising to the men, and does not tend to economical working.' The locomotive engineer's report is even stronger on this point. He says: 'The system of keeping men on short time for several years tends to demoralise, engenders a spirit of dissatisfaction and discontent in the minds of those called upon to suffer, and it is not to be wondered at that work costs more to execute under such conditions, and that discipline is undermined and rendered difficult to maintain.' Short time is not the only cause which militates against the efficiency of the staff. 'In a few years,' says the locomotive engineer, 'all the present graded enginemen and firemen will be receiving the maximum rates of pay irrespective of the value of the work performed.' This system also obtains in other branches of the service. The Commissioner last year proposed a scheme by which the system would have been gradually altered without reducing the pay of any man then in the employ of the department; but, though the new regulation was actually gazetted, it was subsequently ruled to be invalid.

Victorian railways.My remarks on the railways of Victoria will be exceedingly brief. Mr. Mathieson has only recently come from Queensland to take up the Herculean task of reorganizing the Department, and reducing the deficit which has to be met out of the general revenue of the Colony. Criticism would therefore be out of place.

The following is a summary of the present position of the railways as compared with 1890-91:—

—	1890-91.	1895-96.
Miles open	2,471	3,122¼
Gross earnings	3,298,567l.	2,401,392l.
Net earnings	987,922l.	854,917l.
Working expenses of gross earnings	70·05%	64·4%*
Deficit	332,116l.	583,685l.
Capital	—	38,108,151l.
Rate earned, on capital	2·72%	2·24%
* Includes pensions and gratuities.

Heavy deficit to be met.Though 650 more miles of line were open at the end of last year than were open in 1890, the gross revenue was 800,000l. less, and the deficit to be made good from the general revenue had risen to nearly 600,000l. This is constituting a heavy burden on the resources of the Colony, and I have already mentioned the chief cause, viz., the construction of new and unprofitable lines.

Causes which led to the disorganization of the railway system.That unprofitable lines are not the only cause of the deficit on the Victorian railways was brought out very strongly in the Report of the Railway Inquiry Board of 1895. The Report speaks of the whole service as disorganized if not demoralised. Each branch was independent of higher control, the authority of the administrative officers was weak, political influence was contributing to destroy discipline, the salaries of officers in responsible positions were low, while the wages paid to artisans and labourers were higher than those ruling outside the Department. The abuse of the system of free passes, the successful competition of teamsters for the carriage of goods from Ballarat, Bendigo, and Goulburn Valley to Melbourne, and the want of proper accommodation for travellers, are other points alluded to in the Report. Steps have already been taken to remedy this unsatisfactory state of things. Mr. Mathieson, since he entered upon his duties last July, has been occupied in the classification and general regrading of the staff, in the revision of fares and freights, and in the reorganization of the stores and other branches of the service. Better passenger vehicles are being provided, and I speak from experience when I say that on some of the lines the carriages are as good as can be wished for. Provided that political interference is rigidly excluded from the internal management of the Department, Mr. Mathieson should be able to effect a great improvement in the financial position. He has, however, to face a most serious loss in goods traffic for the current year, owing to the drought, from which many parts of the Colony have suffered.

I had intended to discuss the village settlements of Victoria, South Australia, and New South Wales, and to give some account of that most interesting and successful experiment for dealing with the problem of the unemployed at Leongatha, but time will not permit.

Two remarks I would like to make in conclusion. In the first place, I think the Governments of the various Australian Colonies, more especially those of New South Wales and Victoria are deserving of the very greatest credit for the heroic efforts they have made to produce an equilibrium between revenue (which has suffered so much from the depression) and expenditure.

Growth of loyalty in Australia.In the second place, it is my profound conviction that the sentiment of loyalty to the mother country is far deeper in Australia to-day than it was when I was there ten years ago. Just as we in England have come to recognise, so have our fellow subjects in the Colonies become convinced, that their future greatness depends on our remaining firmly united under the British flag.