I.—"11

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A 2.—Eetuen showing the Expoet of Timber from the Port of Greymouth from the opening of the Company's line in 1888 to the Year 1899. Superficial Feet. Up to the end of 1891 ... ... ... ... ... Nil. For the year 1892 415,820 1893 2,095,839 1894 6,766,865 1895 8,679,769 1896 10,890,274 1897 ... ... ... ■•• 10,473,574 1898 12,099,809 1899 13,494,815 Total exported 64,916,765 The New Zealand Midland Eailway Company (Limited), Noeman H. M. Dalston, General Manager. Wellington, 14th September, 1900. %

A 3. —Statement showing Diffeeence to the Colony between—(l.) If the colony had completed the uneonstructed portion of line in five years from 1895, time it seized it, to 1900. (2.) If company had completed it by 1900. (Worked out on Crown's own figures.) & Total estimated cost of whole line ... ... • ... ... 2,830,000 Government says work done up to 1895 ... .. ... 605,685 Balance to complete ... ... ... ... 2,224,315 Hence, if Crown completed, it would have cost it ... ... 2,224,315 But, if company completed, Crown says land-grant would be equal to 60 per cent, of cost of construction. Hence Crown would contribute to company's construction 60 per cent, of ... 2,224,315 Land-grants equal to ... ... ... ... ... 1, 334,589 Hence portion of cost borne by company, or 40 per cent, of the whole cost ... ... ... ... ... ... 889,726 But, if Crown constructed, line would belong to Crown. If company constructed, line would belong to company, as well as landgrants. Hence, if company constructed, it would cost Crown before the line could become Crown property—(l.) Cost of line, including 5 per cent, as provided by statute (saying nothing of interest) on cost of construction ... ... ... ... ... 2,335,530 But to this must be added what Crown would have already given in land on grants ... ... ... ... ... 1,334,589 Total cost to Crown to acquire if company constructed ... ... 3,670,119 Cost if Crown itself had constructed ... ... ... ... 2,224,315 Gain to colony by itself constructing since 1895 ... .... 1,445,804 But to this gain must be added what is saved to colony by escaping the locking-up of the lands. If Crown had determined contract 1895, as it might have done, and broken up reserved area, it would have had the gain of five years' freedom of about 6,000,000 acres. What is this worth— £ Fifteen years equals ... . , ... ... ... 500,000 Five years... ... ... ... ... ... .. 170,000 £ Thus ... ... ... . . 1,445,804 Add 170,000 1,615,804 Gain to colony if it constructed, instead of company, the portion remaining uneonstructed in. 1895, £1,615,804.