1.—7.

523. The railway passes altogether through private estates ? —Altogether. 524. And the Crown land is only fit for grazing, is at an elevation of from I,Booft. to 3,000ft., and would not carry a large population ?—No ; only fit for grazing. 525. Mr. Wilson.] What kind of pastoral country is it ?—Very good on the tops of the hills. 526. How many acres to the sheep ?—I think it would carry a sheep to the acre, if fenced and subdivided. 527. That is very good?—Very good; with that qualification, that it would require to be fenced off, It would be merino sheep. Its value would be from £1 to £1 10s. per acre, carrying one merino sheep to the acre. 528. It is not doing that now ?—lt could do that if fenced off. 529. A lot of money would have to be spent on it before it was in that position ?—Yes. 530. Mr. Barron.] You have been over that land three months ago ? —Yes. 531. You noticed the whole traffic was met by three trains a week ? —I ascertained that by inquiry ; the train only runs on Saturday and one other day in the week. 532. And much likelihood of an increase of traffic soon?—I think not. 533. If the traffic were doubled, to run six trains a week, that could not bo looked upon as a profitable line for the country ?—No. 534. Mr. Cowan.] Is trie pastoral country held by those who have also the lower country?— Yes; a considerable portion is held by Mr. Campbell, by the New Zealand Land Company, and a small portion of it is held by the Waihorangi Company; and also, I behove, by Mr. Studholme. In other words, all the land has been bought up to the base of tho hills, and the tops are the fragments of the old runs. 535. And the tops are depreciated on that account? —Yes; but there are sheltered areas among the hills, and if the country was carefully cut up it would bo suitable for sheep-farmers in fifteen-hundred-acre farms. 536. Are you aware what time the cutting-up would be possible ?—lf the Land Bill passed it would be possible at once, but if not, then not till 1890. The clause providing for the partial resuscitation of the pastoral deferred-payment system is to provide for this sort of country. Trie Waimate people are urging the matter very much. 537. Dr. Newman.] From the character of the country, would it cost much to extend this line ten or fifteen miles? —Yes; it would cost £5,000 or £6,000 a mile. 538. Supposing it were extended twenty miles, is there country beyond that ?—No ; you come to the base of the hills. 539. Then, there is nothing to justify its extension?—Not much. The Duntroon and Hakateramea Bailway. Mr. McKerrow examined. « Mr. McKerrow : The Duntroon and Hakateramea Bailway, so far constructed to Kurow, runs up a flat of the Waitaki. This flat is gravelly soil, but the ridges running down to it from the Otago side are partly limestone, of a very good quality of soil, and trie country is capable of carrying a large number of settlers. At present, however, a very considerable portion of it is rield in one large estate —the Hon. Eobert Campbell's land. The line runs almost entirely through private lands. At Kurow there is a large extent of pastoral Crown lands, of a very good quality, of which about six thousand acres is to be cut up next season for tho purpose of settlement. Beyond Kurow and up the Waitaki Valley there is a very large extent of purely pastoral country, held in large runs. In the Hakateramea Valley, on trie Canterbury side of trio Waitaki, and connected to trie railway by a bridge over that river, there is a very large extent of good agricultural land, capable of growing wheat to great perfection, but tho land is mostly held in large estates. 540. The Chairman.] Trie original intention was to make the line forty-one miles in length ?— Up Hakateramea Valley. 541. Only sixteen miles have been made?—lt has been carried to Kurow. 542. Would its extension be likely to increase production and settlement ?—lt might be likely to do so if wdieat were at a paying price. 543. To any extent? —Triat depends on wdiether the largo estates—Mr. Campbell's and the Australian and New Zealand Land Company's—whether they were cut up. If wheat wore at such a price as to pay for cultivation, it might be better to cultivate the land than keep it for sheep; but that is all problematical. 544. Has there been any effort to subdivide it and sell it ?—Not that lam aware of. lam aware of this, that several people who bought land during the Canterbury land mania are now unable to sell. 545. Do you think the land would be saleable if the railway were extended ?—Not at the present prices of grain. Trie price of grain would riave more to do with the settlement of the country than the extension of the railway. The wheat land is now within carrying distance of Kurow. 546. Mr. Dargaville.] Is this a district that we might describe as a progressive one?—Not very ; it was checked by the fall in the price of wheat. It was just beginning to progress very well; triey were growing wlieat, and had great yields, but the price fell, and nipped the progress in the bud, I may say. 547. I will put it in your own language :if trio colony is likely.to 3progress at all, is triat a district triat is likely to progress? —I should say so. It has the elements in it of progress. 548. You stated the line ran through private land —large estates?—Yes. 549. Mr. Montgomery.] Would Mr. McKerrow show us on the map?—lt would be more accurate to say it ran alongside large estates.

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