may mention that there is by no 
means a consensus of opinion that the 
sransfer of stock is always economical; 
prominent pastoralists have told us 
that the true method of dealing with 
the contingency of a drought is to 
stock lightly and so to have pasturage 
in reserve, and we have ourselves made 
a suggestion that an alternative 
method of providing against the 
offects of drought is by insurance, 
sither under a definite insurance 
scheme (if that should prove prac- 
ticable), or, alternatively, by a small 
annual levy (a few pence) on each head 
of stock, to provide funds out of which 
losses due to drought may be met. 
10. Before we deal with the major 
subject of unification of gauges, we 
would state an emphatic opinion that 
sven if it should mean drastic 
sconomies, or the raising of railway 
rates, the State railways should be 
made to pay their way, and give a 
fair return on their capital as business 
undertakings, and that to this end the 
actual management should be placed 
entirely outside the sphere of political 
interference. Further, we think that 
there should be built up by annual ap- 
propriations from railway revenue de- 
preciation and betterment funds of a 
sufficient amount to cover entirely all 
future replacements as and when it is 
anticipated that they will have to be 
made. If in any case it is clear that 
a line is, as a mere railway proposi- 
tion, uneconomical and would be dis- 
continued if it were a business under- 
taking, the result of working it should 
se clearly shown apart from that of 
the rest of the railway system, in order 
that the public may know the amount 
of the loss and realize the subsidy 
which they are thereby providing for 
the benefit of the persons using the 
ine. 
11. It is an essential of railway 
management that there should be as 
close a co-ordination in the control of 
linked lines as is practicable, and 
although this is largely effected under 
the present system there undoubtedly 
remains a tendency to regard each 
State railway as a separate under- 
taking. As an illustration of what we 
mean it is only necessary to refer to 
the preferential railwav and wharfagce 
ates which a State gives within its 
wn borders, but does not give in 
‘espect of goods coming from other 
States and passing over its lines. 
12. It is apparent that any such 
righly desirable co-ordination of uni- 
ied control as we have referred to can 
nly be fully effected by means of uni- 
ication of the railway gauges. So 
ong ago as the year 1883 the then 
Chief Commissioner for the New 
South Wales Railway urged the great 
1eed for this unification, saying, 
“The adoption of a universal gauge 
's absolutely necessary looking at the 
‘uture growth of the country and the 
wnnually increasing intercourse of the 
seople and the exchange of goods,” 
ind yet it was not until 1920, although 
n the interim frequent conferences 
1ad been held from time to time to 
onsider this question of unification, 
shat at a conference of Commonwealth 
md State Ministers a definite step was 
;aken. At this conference it was 
resolved— 
“That this Conference is of 
opinion that two experts from out- 
side this country should be. ap- 
pointed, along with one Australian 
outside the railway services of the 
Commonwealth and the States, to 
consider and report upon the 
unification of the gauges, the 
question as to what gauge it is 
desirable to adopt, and the gques- 
tion of the cost of conversion. 
“ That the Commonwealth and 
the Premiers of the States agree 
to appoint a Railway Commission, 
and affirm that the Ministers for 
Railways of New South Wales, 
Victoria, and the Commonwealth 
shall select the two members of the 
Commission who are to be ap- 
pointed from outside. 
“The Commonwealth and the 
States agree to abide by the deci- 
sion of this tribunal. 
“The Commonwealth to bear 
one-fifth of the total cost, and 
four-fifths to be borne by the five 
States concerned on a ner capita 
basis.” 
13. A Royal Commission was set up, 
and its report was submitted in 1921, 
and considered at a conference of the 
Prime Minister and Premiers ip