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 practicable),
 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 appropriations
 from railway revenue depreciation
 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 proposition,
 uneconomical and would be discontinued
 if it were a business undertaking,
 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 undertaking.
 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 uniied
 control as we have referred to can
nly be fully effected by means of uniication
 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 outside
 this country should be. appointed,
 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 gquestion
 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 appointed
 from outside.
“The Commonwealth and the
States agree to abide by the decision
 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