THE RAILWAY COMMISSION REPORT.

Globe, Volume XXII, Issue 2004, 27 July 1880, Page 3

THE RAILWAY COMMISSION REPORT.

[Br Telegraph.] [from our own correspondent.] WELLINGTON, July 26. After some introductory remarks, the Commissioners say : —“ We could not hope in the limited time which we considered ourselves at liberty to devote to the purpose, to follow tho entire route, and still less the various competing routes, of every projected line of railway in both islands, of which flying surveys had been made ; but we hoped to gain, and we venture to believe that we have gained, by our personal observation sufficient knowledge of the general character of the various districts of the colony through which it is proposed to construct railways, to enable us not only more clearly to understand and more thoroughly appreciate the weight of evidence of the settlers in localities interested, and the information contained in their evidence and the reports of the colonial engineers and other officers, than wo otherwise could have done, but also to justify us in forming, in the majority of cases, an independent opinion based upon that observation. It was our earnest desire to obtain in every part of the country which time allowed us to visit all the information which the residents were able and willing to give respecting the lines of railway in which they were respectively interested, and with this view we took care to have our future movements, so far as they could be definitely arranged, communicated to the newspapers in all parts of the colony through the Press Association, so that full time should be given for the collection and arrangement of evidence which it might be thought desirable to submit to us. In addition to the notice thus given, we intimated generally two or throe days in advance, by telegraph, to members of the Legislature and heads of public bodies tho day of our intended arrival at each place, and the hour at which we should be prepared to receive evidence. With two or three exceptions the pnblio responded heartily to these invitations, but unfortunately it happened on the exceptional occasions wo refer to that want of alacrity on the part of leading men of the districts, in preparing and bringing before us the information we had asked for, compelled us, in order to keep our engagements injother localities, to pursue our journey without taking all the evidence that might have been offered. In these oases, however, we requested that all information which had not been supplied might be put in writing and forwarded to us in Wellington, a request which has been courteously complied with. In some, indeed in many instances, the opinions and recommendations which we shall submit to your Excellency in this report are at variance with the tenor of the evidence taken in the districts interested in proposals for the construction of a railway. Settlers in all parts of the colony take especial and not unnatural interest in their own particular district and tho progress it has made, and are proved to attach greater value to its existing resources, and take a more sanguine view of its future, than can be acquiesced in by dispassionate and unprejudiced observers. At the outset of our investigation we were met by the fact that the already constructed railways of New Zealand do not, as a whole, yield returns sufficient to pay half the interest upon their cost, and we felt it necessary before we could take upon ourselves the responsibility of recommending an extension of existing, or tho construction of new lines, that we should endeavour to learn the causes to which this unsatisfactory state of things was attributable, and the extent to which the causes may be prevented or the operations modified. One leading cause was sufficiently apparent, and can only be remedied by time and the gradual progress of settlement, which tho resources of the colony will undoubtedly secure. We refer to the making of railways in some -parts of tho colony far in advance of existing settlement, and consequently of an amount of traffic adequate to their support. The extent to which this fatal mistake has been made may be in some degree realised by a comparison of the relations between the railways and population in this and other countries. In Great Britain the population to each mile of railway is 1961, in the United States it is 800, New South Wales 1108, Victoria 924, While in New Zealand wo have only a population of 362 to each mile of railway already made. It should, however, be borne in mind, in consideration of these figures, that our exports per head of the population are much larger than those of the neighboring colonies, and that the country traversed by the railways of New Zealand is generally of a more fertile character than that served by the lines of Victoria and New South Wales, and is therefore calculated to provide a greater amount of traffic per mile of railway, although more thinly peopled. In search of other and more immediately removable causes of the unprofitable results hitherto obtained from our constructed railways, we availed ourselves of the authority contained in our commission to take evidence upon the actual working and cost of the lines of railway already constructed. From the evidence thus taken, and by our personal observation and experience upon almost every mile of railway now open for traffic in the colony, we are led to the conclusion that the present expenditure may be largely diminished by converting many small and unremunerativo stations to flag stations, by greatly reducing the train mileage on many lines, and smaller branches especially, and by making the rates of wages more in accordance with those paid by private employers of labor in the colony. All the heavy and almost all the paying traffic of the branch lines in purely agricultural and pastoral districts is confined to the grain and wool seasons, which are almost concurrent, and during what may be termed the dull season, comprising about six months in each year, trains running during three or four days in each week would in our opinion meet all the requirements of the traffic, and would neither materially affect tha receipts nor cause any serious inconvenience to the inhabitants of the districts affected by the change. Our recommendation in reference to train mileage in short amounts to this : that the running of trains should everywhere be reduced to a number that will actually pay, and good results would bo found, not only in reduction of what is strictly speaking current expenditure, but probably still more in tho diminution of wear and tear of the permanent way and rolling stock of the lines thus relieved. It is only right that we should say that action has recently been taken in some of tho directions wo have above indicated, and with good effect, but much more remains to bo done. We have thus pointed out in brief terms the leading reforms by which, in our opinion, the current expenditure of our working railways could be safely reduced, apart from the question of reduction in the number and pay of officers employed in tho service, in reference to which we have not felt it to bo within tho scope of our Commission to make other than incidental inquiry, and we content ourselves with respectfully requesting your Excellency’s attention to such portions of the accompanying evidence as relate to the subject. The receipts of revenue upon the working railways are an element in the question of profit or loss of not less important bearing

than the expenditure, and we felt it to be our duty to give to that branch of the subject at least a fair amount of consideration. On com--1 paring the railway tariff of New Zealand with those of the other Australian colonies as regards the chief items of traffic, wo find that while the average of rates charged upon the Australian railways for haulage of wool and agricultural produce is somewhat lower than the rates on those commodities current in New Zealand, on the other hand the average Australian rate for minerals (a term which serves to include coal, building stones, hones, bricks, clay, lime, and road metal) is higher than the New Zealand rate to the following extent: —First 10 miles, 80 per cent, higher; from 10 to 50 miles, 9 per cent.; from !50 to 100 miles, 47 per cent.; from 100 to 150 miles, 80 per cent.; or taking coal itself the first 10 miles, 16 per cent, higher; from 10 to 50 miles. Hi per cent.; from 50 to 100 miles, 33 per cent; from 100 to 150, 68 per cent. Without further enquiry we are unable to form a decided opinion whether the New Zealand lines are carrying on this important part of their business at a heavy loss, or whether the other colonies are deriving from it an exorbitant profit, but we have little doubt that a closer investigation than we have been able to make would prove that the New Zealand taxpayer is the sufferer. With respect to the other leading branch of the tariff, timber, the evidence wo have taken leads irresistibly to the conclusion that whenever that product is carried under the existing tariff for a distance exceeding seventy-five miles it is so carried at an absolute loss, and when at the same time the haulage is over heavy grades the coat to tho colony amounts to 50s for every 20s received to the credit of the railway account. Having thus drawn attention to some of the main features of the tariff now in force on our railways, we refrain from going into further details, but desire to express our firm conviction that the maintenance of uniform scales of charges applicable to every railway in every part of the colony, without regard to the amount of business to be done, cost of service performed, or amount and nature of the competition to bo overcome is absolutely incompatible with favourable traffic. We urge, therefore, most strongly that the system of uniform tariffs should be abolished, and the railways conducted upon commercial principles—that is to say, by charging for each class of service upon each rate proportionate to the cost of that particular service upon that particular line, varied from time to time as competition shall increase or diminish. By this system some approach would be made to the spirit of tho original proposal that every district through which a line was taken should make up by local contribution any deficiency arising from any insufficiency of traffic to support the line and pay interest on its cost. There is one other point in connection with the economical value of the constructed railways to which wo feel bound to call attention. From the evidence of Mr Lowe, engineer in charge of constructed railways in the Middle Island, there appears too much reason to believe that even the unsatisfactory contribution which the railways in operation are shown by the public accounts to make towards the interest upon the cost of constructing, is not wholly substantial, and that no inconsiderable portion of that contribution should in prudence be placed to the credit of the depreciation fund. It may be urged that by the time that the present cost of repairs and renewals shows an appreciable increase traffic will have so far extended that additional ex. penditure will not be felt. We trust that this may be the case, but in considering the economical value of our railways at the present time the matter cannot altogether be ignored. The question of the administration of the constructed railways is one upon which your Excellency has not commanded us to enquire and report, but as it has been strongly impressed upon us in the course of our lengthened enquiry, that many of the evils which it is our duty to point out are remediable, such as a uniform tariff, maintenance of unremunerative stations, running of unremunerative trains, and the adoption of a scale of wages above current rates, and the great extent of the political pressure, both upon tho Minister and upon tho Commissioners of Railways for the North and Middle Islands, we venture to make a recommendation upon the subject. We are of opinion that the constructed railways of New Zealand should not continue to be as at present under the management of Commissioners, subject to the control of the Public Works Minister, and we recommend that in place of that system a Board be appointed, consisting of men of knowledge and business habits, free from political influence, and having as nearly as may be the same status and holding the same lowers and exercising the same functions as a !Board of Directors of the English railway companies. We now submit for consideration our opinion and recommendation upon each line of partly constructed and proposed railway in this colony. Kawakawa to Deep Water —A portion of this line has been constructed under a somewhat loose agreement with the Bay of Islands coal company. The quality and quantity of the coal are sufficiently proved to justify the completion of tho work by continuing the line to Deep Water, subject to a condition that the guarantee of the company be extended to cover 6 per cent, interest upon the whole expenditure. By the original agreement the guarantee is limited to interest upon £42,000, while the estimated cost of the work when completed to deep water is £92,000. As this line is not only the outlet to that coal field, but, moreover, the key to the country between Xawakawa and Hokianga, we are of opinion that the colony should retain the right to resume possession at any time, and there should be no further expenditure until an agreement containing those stipulations is executed by the Bay of Islands Company.

Kawakawa-Hokianga Extension.—The line towards Hokianga is desirable when the district is occupied by a European population, but there is not sufficient settlement to justify its present construction.

Whangarei-Katno—Expenditure and liabilities to the extent of £35,634 _ have been already incurred on this line. It is expedient to complete it at once as far as Limeburners Creek, at which point vessels of moderate size can be loaded from coal shoots, but we recommend that no further extension be entertained until the coalfield is more extensively developed, and in the meantime the charge for haulage be fixed at a rate sufficient to pay interest on the cost of the work. We are unable to support the proposal for a branch line to Whangarei town wharf.

Auokland-Riverhead.—The construction of the line from Helensville to Riverhead is justifiable, as a means of improving communication between Auckland and the whole Kaipara district, but in view of good water carriage between Riverhead and Auckland, and taking into account fie poor character of the intervening country, the expenditure between Newmarket and Riverhead is unwarranted. However, as it has advanced so far, that must be continued until the work is completed, but it is advisable to close that portion from the junction to Riverhead wharf, except for the haulage of baulk timber, as we are convinced that the line is unable to compete successfully with water carriage. Helensville to Kaukaupakapa and Whangarei.—The estimated cost of this lino is about £BOO,OOO. The character of the country is unfavorable for railway construction from an engineering point of view, the ruling grades being one in fifty throughout, and still more so as regards the prospect of settlement upon the land. The lino, moreover, will have to be worked in competition with good water carriage on both sides of the route. We do not, therefore, recommend any expenditure upon it. Auckland Station Reclamation. We do not consider this work necessary for station purposes. It is, however, so far advanced that we can only recommend it to be finished to the extent of the original proposal, in the least expensive manner practicable. Pukekohe-Waiuku.—Ordinary road making is difficult and expensive in this part of the country, owing to the absence of metal, while railway works are not of a costly natnre. There is considerable existing population, and the lino would servo a fair extent of country both North and South. We recommend it for construction when further funds are available.

Harailton-Te Arch a.—The district through which this line passes is but recently in the occupation of Europeans, and the existing population is small. The work as a whole is premature, and wo can only support the present construction of three or four miles towards Morrinsvillo, which forms part of the line to Cambridge. The remainder may well stand over for some time, but if during the next two or three years the anticipations of a large increase of settlement, now entertained by those interested in the district, are realised we recommend that the work be proceeded with as soon as funds are available.

Hamilton-Cambridge.—The country between these townships has long been settled with a considerable resident population. There is also a large extent of back country to support a railway, which we recommend for construction. Grahamstown-Te Aroha.—Good water connection between these two points makes railway communication unnecessary in the present state of the district as regards [settlement. It is matter for regret that the reclamation at Orahamstown and Shortland has been entered upon before the construction of the railway itself, and we think that expensive reclamation for two station sites close together was quite unjustifiable. To Awamutu—New Plymouth. —As the country through which it is projected to carry this line is all in the hands of tho Natives, and little or nothing is known of its character from an engineering point of view, wo do not advise it to be proceeded with. Tauranga to the Lakes.—This line at present is quite out of the question. The country for the most part is in the hands of tho Natives, and the existing traffic is almost entirely confined to tourists. Taupo-Murimoto.—This is also a line the future construction of which must be preceded by European settlement, Kopua-Makotoko.—This is so nearly completed, that wo can only recommend that tho work bo finished as soon as practicable. Makotoko-Woodville.—This should stand over for the present, and all the funds available for the Wellington-Napier lino devoted to tho completion of the Wellington-Wood-villo portion, with a view to open communication with Wellington and the West Coast, as well as subsequently Wellington and Napier. We are confirmed in our recommendation by the fact that the land between Woodville and Makotoko is for the most part Native property. Napier • Wallingford. This line runs through difficult country along the Coast, where there is very limited settlement. It is inexpedient to construct it, as it will be in competition with tho trunk railway from Wellington to Napier. Napier-Taupo.—Altogether premature. Napier-Gisborne.— The country is very rough, and but a limited extent of Crown lands has been surveyed in it. We see nothing to justify recommending its construction.

Stratford-Hawera.— This is part of the main line from Foxton to New Plymouth, now in progress, and as it will open a large extent of land suited for settlement, we advise its early completion.

Hawera-Waverley.—This line passes through good country, but is more expensive of construction than that between Stratford and Hawera, and there is already a good dray road. Wo recommend that contracts be not called for until tho more northerly section is completed and open for traffic. Wavorloy-Kai-iwi.—This is an important portion of the main line, of which a large part is already completed. The remainder now in progress should be finished and opened for traffic as soon as practicable. The land it passes through is good, and there is already a large amount for settlement. Normanby-Opunake. A branch line through Waimate Plains to the Coast, with little population to support it. It should be postponed until the main lines connecting the East and West coast with Wellington are completed, Feathorston-Maslerton.—The contracts are approaching completion, and the line opens up a district supporting a large population, long settled, and will be the means of increasing traffic upon the portion now open, Masterton to Opaki and Mauriceville.—lt is desirable to proceed with this without delay, as it will make available a large extent of bush lands suitable for small farm settlement. It also taps a considerable block of good Crown land, a groat part of which is limestone formation. Mauriceville-Woodville. This should be one of the first proceeded with when funds are available. It intersects a large block of good Crown land, and will add materially to the traffic on the line now in operation.

Woodville-Bunnythorpe,—The line runs through Manawatu Gorge on the north bank of the river, and will form the connecting link between Wanganui and Wellington, Napier and Wanganui. The cost, however, is heavy, the estimate being £139,000. We recommend that it be not proceeded with until communication between Wellington and Woodville is established.

The Wellington-Foxton line would be in direct competition with that which would be constructed by way of Manawatu Gorge. Apart from that we consider the proposal premature, on the ground that a large part of the country it would open up is still in the hands of Native owners, and it is inexpedient, on tho ground that the value of the land which the line would servo is greatly overrated. The undertaking would be unprofitable, and one that the colony would not be justified in enteringjupon. The expenditure now going on at the Wellington end should at once be stopped, and the labor employed upon the Masterton and Mauriceville section. Greatford-Bulls.—A short branch of four miles. This would be expensive to work, and the district is already fairly supplied.

Bulls-Sandon—We cannot recommend this. Petone-Waiwetu.—This , was designed to meet the traffic of the Hutt racecourse for a few days only in each year. We cannot advise that it be constructed.

Opawa-Blenheim,—This line is nearly completed, and will be the means of improving the returns of the original section from Pioton, of which it should have formed part. Blenheim-Awatjre. The land is good enough, both in quality and quantity, to ■justify the expenditure, but the district is wholly in the hands of a few large holders, and not settled to any extent. The work should he preceded by increased settlement, or by subdivision of the properties. Subject to this condition we recommend its construction when funds ore available.

Awatere-Hurunui. —This is only justified on the ground that it might form part of a future main trunk railway, as it would open a very limited area of agricultural land in proportion to the cost of the work. The proposal is altogether premature. Blenheim-Boundell.—Neither the extent of agricultural land in the district which it traverses, nor the prospect of increased settlement from its construction, is sufficient to recommend the expenditure. Eoxhill-Bellgrove.—This will render more available a moderate amount of bush country sufficient to justify the cost of the work. Bellgrovo-Roundell.—Except as part of a trunk lino from Nelson to Qreymouth this section would not yield a return sufficient to warrant the construction, which wo cannot recommend.

Boundell-Nelson Creek, between Roundell and the Hope.—There is no inducement to agricultural settlement between Hope and Nelson Creek. Although the district is wealthy in minerals, the industry connected therewith does not afford sufficient traffic to warrant the large outlay required for the construction of the line. Owing to the great extent of hush land which is now opened by railways throughout the colony, there is not sufficient inducement to make a railway on account of timber. The West Coast of the Middle Island does not offer much inducement for agricultural settlement. This is patent from the fact that notwithstanding a large population employed in gold mining for the last fifteen years, and the consequent demand for agricultural produce at extreme prices, the total area of land cleared for farming purposes during all those years is very limited. The character of the country is difficult throughout, and a portion of the work between Hampden and Inangahaua Junction very costly. Length, 140 miles ; estimated cost, £1,200,000.

Nelson Greek, Brunnerlon —Would form the key to the traffic of the whole mining districts of the Grey Valley, and would improve the receipts of the existing section. We recommend its construction without delay. Nelaon-Motueka. —This runs many miles through poor broken country, and is rendered less necessary by direct communication between Nelson and Motueka by water. Westport-Inangahaua. —This line would be exceedingly costly, and affords no present prospect of a reasonable return. Westport-Ngakawho.—ln our opinion this line should not have been begun until the coal owners were in a position to put traffic upon it. "We think the haulage rates should be charged on a scale calculated to meet, as far as possible, the interest on the large cost of construction.

Greymouth-Hokitika.—There is not a prospect of sufficient traffic between the two ports to justify proceeding with the work. The traffic of the route by way of Kumara is carried on between that place and Greymouth by a tramway, and the present wants of the district are thereby provided for. The traffic to the townships of Goldsborough and Stafford is not enough to call for railway communication.

Hokitika to the East Coast by Brown’s Pass ; Brunnerton to Oxford and Greymouth to Amberley,—The large cost of either of these lines, [and tho limited traffic, make it necessary to postpone the construction of every one of them for some years to come. When the condition of the colony makes railway communication between the East and West Coast feasible, further exploration is essential before the route is finally decided. Ambcrley-Waikari. The portion from Amberley to the foot of Weka Pass should be opened for traffic as soon as possible, and an effort should be made to finish the remainder in time for next grain season, Waikari-Hurunui.—This would serve about 190,000 acres of agricultural land north of tho Harunui, and probably cause a large portion to be brought under cultivation. The lino would carry tho trade, both import and export, of an area of 1,395,000 acres. We recommend its early construction, as the Harunui is already bridged for dray traffic. The terminus of this section should be on the south bank of the river.

Lincoln-Lake Forsyth should be completed to tho end of the seventeen miles now under contract. It will bring Akaroa within easy distance of Christchurch, and probably take tho greater part of the passenger traffic which now goes by sea. Lake Forsyth-Little River. —This will be more expensive than from Lincoln to Lake Forsyth, and would not add materially to its traffic. It is not desirable to continue the line beyond the last-named point. Little River- Akaroa.—This line is generally expensive, and involves the construction of a long tunnel. There is not sufficient prospect of a remunerative return to induce us to recommend it. Tinwald-Mount Somers. —The cost will be small, and it will serve a large agricultural district and open out a coal mine and stone quarries at Mount Somers, which will bring considerable traffic to the line. The country to which it will afford improved means of communication consists of 120,000 acres of agricultural and 530,000 of good pastoral land, a large portion of which is still in the hands of the Crown.

Albury-Fairlie Creek.—This is also in course of construction. The section already opened is one of the most profitable in the colony, and the extension will pass through an agricultural district which will rapidly become settled. The Crown land served comprises 54.000 acres agricultural and 1,000,000 open pastoral land, in addition to 210,000 acres freehold agricultural and 100,000 acres freehold pastoral land. Fairlie Oreok-Burke’s Pass.—The extension to Fairlie Creek will sufficiently servo the agricultural country to the entrance of the Pass. The further extension will be of little value unless continued through tho Pass into the Mackenzie country. At present the progress of settlement in that district does not justify the expenditure. Waimate Branch extension to Waihoa Valley.—This could be worked at a very small increase on the cost of the present service, and the quality and quantity of land served, with the advanced stage of settlement in the district, induce us to recommend its construction as soon as possible, A survey has been already made at the cost of the residents, and a site promised free of charge. Coalgate to Eakaia Gorge.—The line from Home Bush to Hororata cannot be recommended as part of the proposed Canterbury interior main line, which as a whole we cannot recommend, but the extension of the White Cliffs branch to the Gorge of the Bakaia hereafter is desirable, with a view of the ultimate continuing to a rich coal field, which is the most valuable yet found on the eastern side of the Middle Island, As regards alternate routes by way of Waiwera Valley and Hororata Downs, the balance of advantage and disadvantage is nearly equal. Tho Hororata route will serve the largest number of settlers, and bo cheaper. The Waiwera Valley is shorter, and opens seams of brown coal the same quality as at Glentunnel. The latter is tho preferable route, but we do not recommend the early construction of either line.

Ferry Mead—Sumner.—We'reoommend this for early construction. A portion is already made and lying idle. When completed it will bring in handsome returns, and also add considerably to the traffic on the main line. Southbridge to Eakaia and Waterton. — This would involve groat expense in bridging the Bakaia and Ashburton rivers, while it would compete for traffic with the main line. On these grounds we do not think the work should be undertaken. Cave to St. Andrews.—The district is already provided for by the main lino and the Albury branch. Sheffield-Waianui. —This would be merely a connecting link between two short branches. It would be difficult to construct, and has nothing to recommend it. Oxford-Sheffield.—This line would supply the railway system north of well as the inhabitants of North Canterbury, with cheap coal. Bridges are already built, as well as stations at each end. The train mileage and maintenance would be the only additions to the existing expense of the Railway Department. We recommend the early completion of this section, but the junction with the Springfield line should be at Sheffield, and not at Waddington, in case of the abandonment of tho interior main line.

Ooalgate to Temuka. —This is generally known as the Canterbury interior main line. Its construction would entail heavy expenditure in bridging the Selwyn, Rakaia, and four branches of the Ashburton, Hinds, Bangitata, Orari, and minor streams. The traffic would not, in'our opinion, be ample in proportion to the cost of the work and the districts through which it would pass are already to a great extent served by the existing branch lines. The further development of these districts' would be more economically and efficiently promoted by the formation of other branch lines, and the extension of existing ones, as the expenditure becomes warranted by the progress of settlement in the back country. Orakei-Eakahu. —Not required at present.

Sheffield-Hawkins. —This is proposed as a means of opening up coal and pottery works. We recommend its construclion on the terms usually imposed for the accommodation of a siding, but with the condition that all excess over the usual cost of the siding be paid by the proprietors of the mine. Duntroon to Hakaterameo.—This will be inexpensive and desirable in view that it will serve a large agricultural district and receive the traffic of the Upper Waitaki. If this line is not completed in the meantime under the District Railways Act, Government should, when funds are available, endeavor to finish the works already in progress, and between the present terminus and Duntroon. Windsor-Livingstone. —The completion ten miles beyond Windsor will meet present requirements. Palmerston-Waihemo.—This should be continued to the most convenient point, near Jordan’s. At present there is a large traffic by waggons to the interior by this route, and a considerable agricultural population is settled in the Waihemo Valley.

Shag Point,—There is no reason why the Government should not purchase this line* The rates and haulage should be raised to cover the cost of working.

Otago Central. —The requirements of the colony do not warrant the construction of this costly line, for which the engineer’s estimate is £1,100,000. There is a very small proportion of land fit for agricultural purposes, and it is far too limited to afford encouragement for an expenditure so large. The works through the Taieri gorge district for over thirty miles are of a very difficult and expensive nature, consisting of a succession of curves through rock cuttings, and with no access from the country on either side, tthe line must remain totally unproductive. When there is a necessity for a railway to tap the Maniatoto Plains, Ida Valley, Dunstan district, and Upper Clutha, a carefnl survey should he made to find a cheaper and shorter route, and one which will pass through a small extent of unprofitable country. Special attention should be given to the survey of the country between Livingstone and Naseby, as the line by this route will bo much shorter. We express regret that so much money has already been spent between Hindon and Mosgiel. Prom examination we can come to no other conclusion than that it is far the best for the colony to abandon it. The entire undertaking is uncalled for, and should not have been commenced.

Lawrence-Tapanui. —Would pass through a difficult country, destitute of _ population. There is nothing to lead us to think that the communication will be required for many years. Waipahi-Kelso—Known as the Tapanui line—lt would servo a good country and should be completed without delay. Kelso-Switzers. —It is desirable to make a section of this line about four miles from Kelso towards Switzers. bb it would pass through agricultural country, and to some extent increase the

value of Crown lands. The extension would make the total length of the Waipahi-Kelao branch about twenty miles and add little to the working expenses. We do not recommend further extension towards Switzers. Kelao-Waikaka.—We cannot recommend the construction of this line, as Waibaka is situated within eight miles of the Waimea District Kailway and ton or twelve from the main trunk line.

liawrenoe-Koxburgh. The unprofitable results obtained from the branch from Clarksville to Lawrence, end the broken character of the country beyond, form the grounds on which we decline to recommend the proposed extension.

Balclutha-Gatlin’s River. The limited amount of settlement in the district, and the fact that the land it would serve is chiefly bush, and the expense consequent upon the rugged character of portion of the route, compel us to recommend that it be not constructed at present. As regards the timber traffic, water carriage would compete successfully with railways. The section to Owake was the least expensive portion, but it is too short to give a fair prospect of paying working expenses.

Wakatipu-Lake McKerrow.—lt is not prudent to incur this expenditure unless a large development of mining industry on this part of the West Coast should afford a prospect of a remunerative return.

Green Island-Kaitangata.—This is a coast line, only a few miles from the main South line, and running parallel. We are unable to recommend its construction. Outram-Olarendon.—This is a scheme to convert the Mosgiel and Outram branch into the loop line from Mosgiel to Clarendon. No portion would be more than six or seven miles from the main line. We cannot recommend the expenditure. Kingston-Cromwell.—lt would have to be taken along the rocky and precipitous shores of Lake Wakatipu, and compete with cheap water carriage between Kingston and Queensaton. We do not think it would be remunerative, and we do not recommend its construction.

Edendale to Toi-toie.—We recommend an extension of eight miles along the left bank of the Mataura to a point from Toi Tois. The district accessible would be productive of better financial results than working this short line now in progress by itself. Invercargill-Seaward Bush.—Seaward Bush is tapped by tramways from the main line, so that reasonable means of transport for timber are already provided, and as the terminus would be five miles off the main line with which the whole section runs nearly parallel, we do not recommend it to be constructed.

Riverton-Orepuki.—Six miles are already nearly finished, which are of little use unless extended to the timber, coal, and oil shale deposits at Orepuki. With a considerable area of good agricultural and gold mining industry, the district affords a prospect of a satisfactory return upon the cost of the extension to Orepuki, which we recommend be made. The line, moreover, tends to promote the settlement of the Waiau Valley, which, as well as Orepuki, is at present completely isolated. Otautau-Nightoaps.—Four miles are nearly completed, and wo do not recommend further extension until the extent and value of the coal field at Nightcaps has been more fully ascertained, especially as the supplies of coal for railway purposes can be obtained at Orepuki, if our recommendation in reference to that line be acted upon. From an agricultural point of view this district is sufficiently served by the four miles section referred to. Marawa-Otautau.—The country is rugged, and occupied only as a sheep run. The line would not be remunerative, and we do not recommend it to be constructed.

Waimea Valley.—The line passes through a large extent of very fertile land, but the district is devoid of population, and we cannot recommend the work to be pursued by the colony. Winton-Nightcaps.—There is not sufficient reason for the construction of the line between these two points, and we cannot recommend the expenditure. Lumsden-Marawa. Notwithstanding the expenditure already made upon the work, the paucity of population and limited area of land under cultivation induce us to recommend that no further outlay be incurred, but that the railway bridge over the Oreti be decked and thrown open for dray traffic,” The recommendations are finally classified under four heads—(l) be proceeded with at once ; (2) when further funds available ; (3) postponed ; (4) not recommended. The last includes the Otago Central and Canterbury Interior. Voluminous evidence is appended, and 212 pages of tables will follow when ready. The report is signed by the five commissioners —Messrs Oswald Curtis, J. M. Clarke, Edward Pearce, John Reid, and Edward G. Wright.