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to the end. The League, therefore, again refers the Commissioners to the printed evidence of the parliamentary inquiry, and would respectfully ask for a definite answer without further delay as to whether they are or are not prepared to adopt the recommendation of the Committee which reported " That "a trial should be given to the system." I have the honour to enclose a printed reply (Appendix D) to the printed correspondence (Appendix C) you were good enough to forward to the League. On behalf of the Eailway Eeform League, I have, &c, William C. Daldy, Chairman, General Committee.

No. 6. The Eailway Commissioners to the Eailway Eeform League, Auckland. Sir, — Wellington, 10th December, 1889. With reference to your letter of the 30th November, the receipt of which I had the honour to acknowledge on the 3rd instant, I am now directed by the Eailway Commissioners to inform you that it is necessary that they should clearly understand the desires and intentions of the League. The demands at present are now understood to be limited to the passenger business; but what those demands are is not yet made clear by the League. In your letter of the 31st October you state distinctly that the Hungarian Government have adopted the system proposed by the League ; at the same time, you repeatedly refer to Mr. Vaile's system as the one the League advocates. The Commissioners request me to say that these two systems are antagonistic in their objects, and in other respects. It is found from reports that " The Hungarian State railways regarded as the principal object of their reform to draw as many people as possible to the capital in the first place, and to the larger towns which are already centres of commerce or industry in the second." In Mr. Vaile's evidence on his system, the reason he proposed to abolish the mileage system and differencial rating was that, "I believe these are the chief agencies at work in massing up the population in a few large centres and drawing it from the country districts. That I hold to be a great commercial and social evil." If the system proposed by the League has been adopted by the Hungarian Government, as the League alleges is the case, and the report on the Hungarian practice furnished by the League to the Railway Commissioners is correct, the League's proposals are not at all identical with Mr. Vaile's, as expounded by him to the Parliamentary Committee. The Railway Commissioners understand that the Eadway League now asks for a trial on the Auckland railways of a new system of railway passenger-fares. The Eailway Commissioners have assured you that they are willing to give the fullest consideration to any scheme the League may place before them. They beg to repeat these assurances, and to express their hope that the League will agree, upon consideration, that it is necessary the Commissioners should be furnished with the details of the scheme by the League before expressing an opinion upon its suitability. I have, &c, E. G. Pilcher, Secretary.

No. 7. The Eailway Eeform League, Auckland, to the Eailway Commissioners. Gentlemen, — Auckland, 10th January, 1890. I have the honour to acknowledge receipt of your communications of the 10th and 11th ultimo. You are quite in error in supposing that the demands of the League at present are now understood to be limited to the passenger business. The demand of the League is that the stage system investigated and reported upon by the Parliamentary Committee of 1886 shall be applied to every branch of railway traffic. The League is fully alive to the fact that the transport of goods is of more importance to the colony generally than the transport of passengers. The League, however, is of opinion that, as a financial operation, it will be much the wisest plan to commence with passenger-traffic. The reference in my letter of the 31st October to the system adopted by the Hungarian Government was merely made to draw your attention to the fact that this Government had abolished mileage rating, and adopted a stage system ; and, further, that the Hungarian Government holds the same opinion as does the League—viz., that if financial success is to be assured it is necessary to begin by applying this new system in the first instance to passengertraffic. The. League has repeatedly asked you to give effect to the recommendation of the Parliamentary Committee of 1886, and to try the system reported on by that Committee. It is therefore quite impossible that the Hungarian system could have been intended, as that system was not in existence in 1886. Your statement in B. 89/3589/4898, that " Four fares out of the six you direct their attention to are incorrectly stated by lie League," is not' borne out by the Gazette forwarded with your letter. From that document it appears that the present first-class fares for the three miles between Auckland and Bemuera is 7d., and not 6d. as stated, and for the six miles between Avondale and Newmarket Is., instead of Is. 4d. as stated. It is one of the complaints of the League, and of the public, that the frequent changes in fares and rates render it almost impossible for any one to give a correct present rate. This is, however, a very minor point compared with the important subjects

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