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are before the Committee, and I do not think it is necessary for me to add anything to what has been put before previous Committees on this question. The question appears to me now to be, first of all, as to the advisability of that fifty-seven miles of line being completed. If you think it is advisable, the next question is as to what will it pay the colony to give for the completion of the line. In considering this, you should not forget the position of trust in which the colony now stands, and the legal position in which it stands under the contract with the Midland Eailway Company of 1888 in relation to the land-grant, and also the award of the arbitrator in pursuance of the terms of that contract. I do not think I need say any more ; but, should the Committee require any information which may have escaped me, I shall be happy to supply it. Hon. the Chairman : Did it ever occur to you to call as a witness the late Agent-General in reference to a portion of your statements. He is in the colony, if not in Wellington. Mr. Harris : Yes, he is m the colony. If the Committee wish it I will call him, but I think we are prepared to stand by the evidence that is already printed. 76. Hon. the Chairman.] Could you tell the Committee, Mr. Dalston, what fees the directors drew; or can the information be got from Mr. Labatt ?—I think he could give it to you. 77. Will you be good enough to ask him to make a memorandum of it. You say that if the proposals now before the Committee are accepted, you could carry out and complete the works ? —lf these proposals are entertained we could raise the necessary funds. Mr. Blow said this was a mere statement. I make the statement because I have received a letter from the chairman of the board of directors, authorising me to make the statement that if these proposals are accepted the necessary funds can be raised. 78. You have no doubt about that ?—I have no doubt; I make the statement on the authority of the company.

Saturday, 22nd August, 1896. Mr. F. H. Labatt sworn and examined. 1. Hon: the Chairman.] The last time you were before the Committee in regard to the payments to the chief engineer of the Midland Eailway Company, you promised to give the Committee a return of these and other payments ?—Yes. 2. That was for the portion of the time that Mr. Wilson served the company? The payments commenced from the 11th November, 1889 ?—Yes ; from the 11th November, 1889. 3. The company had been in existence for some years before ?—From the 17th April, 1886. 4. Could you furnish any particulars of such fees paid before that time?— There were certain fees paid in London, and which appear in the company's books. There were other fees charged to construction ; but there is nothing to show that these fees were paid to Mr. Wilson. 5. Are you able to supply the particulars to the Committee ?—I could supply you with the total amount of engineering fees paid, a portion of which are not included in the statement handed in. 6. Will you do that ?—Yes. 7. You furnished a return of fees paid to directors up to the 30th June, 1887 ; those, I presume, were the first fees paid. On the 30th June, the return furnished by you shows up to that date £4,083 6s. Bd. ?—That amount appears in the balance-sheet as part of the expenditure, from the date of the incorporation of the company, 17th April, 1886, to 30th June, 1887. 8. That is, the actual fees paid to the directors ? —Yes ; the fees to 30th June, 1888, £3,500; to 30th June, 1889, £3,500; to 30th June, 1890, £3,500; to 30th June, 1891, £3,500; to 30th June, 1892, £3,125; to 30th June, 1.893, £1,799 4s. 5d.; to 30th June, 1894, £1,750 : making a total of £24,757 lis. Id. paid by way of directors' fees on behalf of the Midland Eailway Company. [Exhibit B.] 9. Then, these are all the moneys, to your knowledge, that have been paid in directors' fees ? —I have come across other amounts that would come under the heading " Fees"—not directors' fees, but committee fees ; there were certain gentlemen in New Zealand who acted for the company in the colony. 10. Not included in the directors' fees paid in England?— Yes. 11. Will your furnish a return of those also? In fact, returns of all fees other than commissions? —Yes; other than those paid to the directors. Mr. Button: They should be distinguished. 12. Mr. Hogg.] There were two other engineers—Messrs. Carruthers and Bell?— Mr. Bell was one of the company's engineers. 13. Will you furnish them separately ?—I have no information about Mr. Carruthers in connection with the Midland Eailway Company; there is nothing in the company's books to show any transactions between Mr. Carruthers and the company. 14. Mr. Napier Bell was an engineer for the company ?—Yes. 15. Dr. Newman.] Will you tell us who constituted the New Zealand board : you told us there was a board of advice ?—I do not know how many there were on the committee, but the following gentlemen were members : The Hon. C. C. B°wen, Mr. Frederick Banks, of Christchurch, Mr. Sclanders, of Nelson, and, I think, Mr. Fell, of Nelson, was also a member of the committee. 16. Hon. the Chairman.] You will furnish the names of all the officers and directors, and the fees paid to each, outside the returns you have already given ?—Yes. [See Exhibits F, G, and H.]

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