J.— lc.

o. a. piperJ

19

they put on another steamer they would have to increase their capital, and their earnings would be cut down to 4 per cent. 58. In the assets of the company, as shown in their balance-sheet, did they include an item for goodwill of some £5,000? £5,300, I think it is. 59. Was that a proper item to take credit, for in a balance-sheet for an open business like that which was available to any one? In my opinion, it was not. It struck mc when I saw it at firs! that it was rather an uhustlal thing. 60. Well, they included in the.value that item of £5,300 for goodwill? —Yes. 61. Hon. Mr. Hall-Jones.] I understand there were some complaints from people living in the locality with regard to the conduct of this service under the company, and they desired a change? — That is so. 62. What were the complaints? —They were made before I went to Invercargill, but generally they were to the effect that the company granted to certain people certain concessions which they did not grant to others, and that they took their own time to ship goods; and it did not suit a number of people, because the bulls of the stuff that goes to Frankton is for the interior of Otago, and five years ago it used to go to Cromwell, Clyde, Bannockburn, Wanaka, and other places. There were general complaints all through, but that was the principal cause of their complaint, and 1 suppose, of course, complaint was made as to the charges they made. 63. Assuming there was the differential treatment such as was suggested, was that detrimental to the interests of the settlers in the district? —Well, the opinion seemed to be that the company did not treat everybody alike. It was detrimental to the interests of the district to this extent: that the people were certainly paying very high rates. 64. What were the fares charged then and now —take the passenger-fare from Kingston to Queenstown? —We are charging now 4s. saloon between Kingston and Queenstown, and half a crown steerage. 65. What was the old charge? —Twenty-five per cent. more. We reduced everything —pas-senger-fares and rates on parcels and goods. We made the reduction all round. 66. Supposing the company had not sold their concern to the Government, and the Railway Department had put on steamers to provide the necessary conveniences for the settlers, carrying at the rates you are now carrying at, what would have been the position do you suppose? —The company would have had nothing to do. 67. You think the Government steamers would take the whole of the traffic? —I think there is no doubt about it. 68. But the company might have come down to the same rates as charged by the Government? —What might have happened is what did happen to the same people themselves when they entered into competition before with each other. There were two companies in existence, and they finally merged into one company with a capital of £15,000. I do not know the date of it, but there were two distinct companies on the lake at one time. 69. Supposing the Government had run steamers to meet the requirements of trie railway traffic, they would have carried nearly the whole of the passengers and goods, and the earnings of the company would have been reduced to a very low amount? —Yes, reduced to nil practically. 70. And in that case there would be no goodwill? —That is so. 71. Would their fleet then have been worth the amount paid by the State? —Not at all. The old boat, the "Antrim," is about thirty-five years old; the "Mountaineer" is about twenty-six years old, and the " Ben Lomond " was there before it. The " Antrim " was the first boat on the lake, and she is really of no value. She is all right as a cargo-carrying boat, and may hang out for a few years. 72. You believe the company got a very good price for their undertaking? —Yes, in my opinion, a very good price. 73. Mr. R. McKenzie.] How many shareholders were there in the later company? —I really could not say. I should say, from memory —I saw the list some months ago —there were about fifty in the last company. 74. That is when the Government bought them out? —Yes. 75. Do they mostly reside in the Wakatipu district? —The bulk of them did. 76. So that the shareholders would be the principal customers of the boats? —That is so. 77. Then, how could the Government control the whole of the traffic? Do you not think these shareholders would have supported their own boats ? —ln a sense they would; but one of the largest shareholders was Dr. Douglas, who is not a farmer, and he would have no goods to carry at all. Another large shareholder is Mr. Mcßride, who has a sheep-run ; and there is another large shareholder who lives at the head of the lake and runs sheep. These shareholders would not have much goods to carry. The bulk of the traffic is in stores, and so on, for such places as Cromwell, Wanaka, Bannockburn, Clyde, &c. That is where the bulk of the stuff went to, and not to the shareholders. 78. Supposing the Government started its own steamers, would the Railway Department book (he traffic right through from Invercargill ? —That would be a matter for the Department to decide. 79. I want to know how you are going to take all this traffic? —It would depend upon the policy of the Government as to what profit they wanted to get out of it. We book through traffic at one charge to Kingston. 80. You do not give a railway ticket right through to Queenstown ? —The passenger actually books right through, but the fare is made up, say, from Dunedin to Kingston. 81. Does the passenger get one ticket? —Yes; he books right through by railway to Queenstown, but he pays two fares. 82. Where does he pay them? —At Dunedin. He gets one ticket to take him right through. 83. Had you the same arrangement with the company? —I do not think so. lam not quite sure on that point, because I have only been at Invercargill for three years.