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