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the company by the colony is the same ; only under these proposals the purchase-money is retained, and doled out to the company in instalments every six months, the Government giving the company the benefit of the interest upon the money they are holding, and, as security for that, having the expenditure on construction of the line, and the land as well. Ido not think it really is so very involved. 270. It would be very simple if you had constructed the line and earned the land-grant ?—- Yes. 271. There is no mortgage on the land until you have made the line? —It is in pawn under the contract as long as the contract holds good. And in principle, morally speaking, the Government have parted with this land to the company. 271 a. They have not parted with it. They have only parted merely with certain portions, which particular portions have not been defined ?—No, but they have parted to the extent of £618,000 of the total value. 272. Mr. Tanner.] But then only conditionally?—lt is more than that. Not only have they parted with it morally in a measure, that is to say, pledged £618,000 worth, but they are pledged that the company may take any part of that £3,000,000. It has given the company not only the right of getting its £618,000, but also of taking the pick of the very choicest pieces of land. So that we really give back £618,000, and our right of choosing that which is most valuable, and will probably sell for more than the £618,000. That, I think, is an important concession on the part of the company. 273. The Chairman.] I see you value the land at £2,960,000 ; that is the reserve area ?—We do not value it. That is the Government valuation. 274. Hon. Mr. Seddon.] You forget what your proposals are leading up to —that is, that the colony is expected to relieve you of the construction of a portion of your line from Belgrove to Beefton ; with regard to which probably, for a number of years, there would be very great risk as to its being payable ?—I want to point out, Mr. Seddon, the land-grant on that basis is smaller in proportion than on any other section. It is £330,000 only. It was allocated to the different sect-ion-s in proportion, and on the Belgrove Section it is only £330,000. 285. But you told the Committee last year, if they insisted upon you making that piece of line at once they would cry a " go"?—My opinion has been strongly confirmed by the reports of the Commissioners you have received as to the Belgrove district. 276. There is that view of the question : Parliament may say, keep to the contract as a whole? —You must remember the company do not refuse to make the section. 277. Mr. Guinness.] I would like to ask a question on that point. What would be the value of the land-grant the company would earn if they completed the line from Belgrove to Eeefton ? I think it is £330,000 ?—Yes, about £330,000. 278. That would be £670,000 cost ?—The statutory cost, the estimated cost is £793,000. 279. Mr. Wright.] That is very much below the mark? —It is a long way below the mark. 280. Mr. Guinness.] But that is the statutory estimate ?—Yes. 281. For completing the link between Eeefton and Belgrove ?—Yes. You would only have to pay half statutory cost as the land-grant. I may mention, in the contract the estimated cost of the line was £2,500,000. The Government original estimates give over £3,000,000. The former were under-estimated, and admittedly so. This cost of £2,500,000 was only taken for land-grant purposes. I think the estimated actual cost was £3,382,000. 282. Mr. Tanner.] Do I understand you, Mr. Wilson, these are the only alternative proposals the company are in a position to make ? —lt is so. 283. On the basis ? —On the basis oE deferred payments. 284. No matter in what way the arrangement may be ultimately come to ?—That is the only way in which the company can see its way to get the money at present. 285. What is the difference : If the Government give you a sum of money in three years, what is to hinder you receiving that and spreading it over the time you want it ? If you receive it, why can you not spread it over ?—I agree with you we should gain more in actual money value, but it is in a form the financiers will not take. It would not matter to us if we could only raise the money. 286. A higher price would have to be paid if you get the money?— That is it. The London money-market will lend at 1-J-or 2 per cent, less to a Government than they will to a private company. The company cannot get over that fact. 287. Mr. Guinness.] The one is for the longer term and the other is for the shorter period ?— Yes, and that makes a great difference. 288. Hon. Mr. Seddon.] Why could not it be a stipulation that the Government should pay this money into the funds, with all the provisos you are putting here, the Government to pay in ten years ? —We must have the money available for interest purposes. Hon. S%r J. Hall: That would not be any better for the Government. 289. Hon. Mr. Seddon.] But it puts it in a concrete form? —After all it is a question of book entry, is it not. Suppose you agree to these conditions. That becomes an account as any other disbursement account would be, and the thing is ended and closed at the end of ten years, just as any thing else would be. Suppose it was three years, it would make no difference to the Government : for this reason, time must improve the company's property. The company in the meanwhile cannot remove any of its property. It stands as an important asset in the colony. The Government have got the advantage; they have our lands for security, and they have the money for the lands to use in the meantime. So, of course, the Government is in an absolutely sound and safe position. They can pay the instalments without the slightest risk. With us it is a question only of how we can get our capital. In no other way than that stated can we get it, so far as I am aware.