5

I.—7a.

a rate. The company did not propose what the amount should be, but simply asked him for directions to raise the rate, and he instructed an auditor to examine the company's accounts, which was done. The auditor examined them and reported to the Minister. The auditor discarded certain items, and, instead of being for the deficiency shown in the balance-sheet, it was for a less amount. We proceeded with the rate, and did all things necessary to comply with the statute ; and then we came to the point where we recovered the rate in the Eesident Magistrate's Court, and the judgment was successfully appealed against. With reference to the certificate for £108,713, the company desired to raise money for the issue of debentures, and could not do so without a certificate from the Minister for Public Works showing the cost of the line. An estimate of the cost of the line whan completed and fenced throughout was made by the company's engineer and sent to the Minister for Public Works,'Mr. Macandrew. Mr. Macandrew referred it to Mr. Blair. Mr. Blair approved of it, and Mr. Macandrew issued a certificate for £108,713. Naturally enough, when Mr. Macandrew's successor had to issue the certificate he would inquire what was the cost of the line; and the only certificate being that for £108,713, he naturally concluded that was the correct amount on which to base his calculation of the rate, and, in doing that, instead of taking the £101,000, which was what, according to the Judge's decision, we should strike the rate on, he took the larger amount. We want a rate that the law authorizes us to get, no more nor less. If we were only entitled to rate on £101,000 we will take it, and, if entitled to the larger amount, we will take that; but all we want is that the shareholders should receive what they are entitled to. They have had their money altogether out for six years, and never received one shilling interest. It has been stated that the Waimea Plains Railway and the New Zealand Agricultual Company are identical. As a matter of fact, only one shareholder in the agricultural company owns shares in the railway company ; and the agricultural company, out of the four thousand seven hundred odd pounds, had as its share to pay about three thousand; and it is the influence of the Agricultural Company that we have been fighting all along: they are supplying the means to enable the Defence Committee to resist the Eailway Committee at every turn, and this is a company which above all others has obtained advantages by the construction of the line. Of the first rate £3,000, the second £2,530, and the third £2,483 falls to their share, and they are thus indebted to the railway company upwards of £8,000. We want to get relief this session, and are advised that this can be effected by the insertion of a clause in what I understand to be the Special Powers Bill. We want to recover what we were debarred from by what was no more than a clerical error. Instead of giving a certificate for the proper sum it was given for too large a sum, and if we get the smaller we will be content. 5. Major Atkinson.} As the law is at present, the Minister is unable to issue another certificate? —We cannot raise another rate. 6. The time has passed; you want the Minister to issue another certificate, and give the company power to levy on the other certificate ? —ln lieu of the one already levied. 7. You want power to levy the rate? —Yes. 8. Mr. Cozvan.} You are aware that the estimated cost of this railway line was £101,000 ?— Yes ; without land. The certificate states that at the foot of it. I did not know till I came to Wellington that the cost of the land was not included. 9. This paper you have given me is a true copy of the original estimate ?—lt is a copy in brief; I have contracted it a little. It is not a true copy in every particular : Mr. Higginson's signature is not there. 10. But the figures are the same?—Yes. 11. Would you inform the Committee what amount has been expended on the railway line?— £109,048 Is. 7d. 12. The first item of this list is £14,000 for grading, earthworks, and formation; how much of that has been expended ?—We did not class our work in that way. Bridging, culverts, sidings, plate-laying, ballast, and grading, we put all that down as permanent-way, and our expenditure on permanent-way has been £42,267 2s. 4d. ; the estimate was £32,100. 13. Fencing and level-crossings £10,500 : how much of that has been expended ?— The levelcrossings are included in that £42,000. As far as we are concerned we put the level-crossings down to the permanent-way. The fencing has only cost us £2,828 13s. 6d. Ido not know what proportion of the £10,000 estimated should represent the fencing and crossings, but I have put the level-crossings along with the rest of the earthworks in the classification of expenditure. 14. The next item is fifty-two miles permanent-way ironwork, £25,900 ; how much of that has been expended ?—We have expended £30,266 7s. lOd. 15. Sleepers :no sum opposite it here ?—£7,875, that was the estimate ; actual cost, £12,054 11s. Bd. 16. Then, the equipment; how much of this is for rolling-stock ?—The estimate for two locomotives was £3,000 ; the cost was £2,410 6s. 7d. The cars and trucks, estimated at £5,360, which we have not purchased, we are hiring from the Eailway Department. The land has cost £3,686, and is not included in the estimate of cost. We have paid in excess £22,914, and less than on the estimate £14,689, a net result of £8,045 above the estimate. 17. With regard to the land, how much of that is paid for?—A little over £3,000 is owing. 18. There are two items—general contingencies, £9,000; engineering, £4,765 ? —£13,765 on the estimate. We have expended £14,281 14s. sd.—namely, engineer's charges, £2,703 17s. 4d.; advertising, £395 12s. 3d. ; law charges, £333 2s. 7d.; stationery, telegrams, printing, and sundries, £900 Is. 6d.; directors' fees, £165 Bs.; loan charges, £2,100; interest paid during construction, £7,683 12s. 9d.: total, £14,281 14s. sd. I may explain that the advertising and law charges were necessary in consequence of the Act requiring certain things to be d»ne—notifications and so forth, and the advertising for tenders, and the advertising the notices.