The practice in Western Australia of charging discriminating railway rates in favour of her own productions and against the productions of the other States was conversationally discussed at last week's Cabinet and I expressed the opinion that the legality of this practice might if necessary be tested by proper proceedings in the High Court although no Inter-State Commission was established.

I adhere to the opinion I then expressed-the practice is in my judgment a violation of section 92 of the Constitution establishing interstate free trade. It does not come under the provisions of section 102 which deals with preferences or discriminations adjudged undue and unreasonable by the Inter-State Commission.

[Vol. 4, p. 492]