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there onwards has less local traffic, as well as having been partially metalled, it is in better condition and more easy to maintain than the Taihape-Turangarere Road, so that better progress should be made in the future, even if unfavourable weather is experienced. The formation-works between Turangarere and the commencement of the central section are very actively in hand, nine hundred men being employed at the southern end of the line. ..■■• The present position of the works may be summed up thus : — Mile*. Total distance, Auckland to Wellington ... ... ... ... 426 Already constructed and open for daily passenger and goods traffic ... 335 Rails laid on a further ... ... ... ... ... ... 37 Formation practically completed on a further... ... ... ... 8 And in hand on a further ... ... ... ... ... ... 33 Untouched (except that the bush has been felled) ... ... .... 13 Total ... . ... ... ... ... ... 426 Most of the untouched portion is left untouched merely because the works upon it are of an easy and unimportant character, and can readily be finished by the time the heavier work now in hand can be done. Probably all the earthworks will be finished as soon as the large viaducts are ready, so that on the completion of these structures really depends the date of the opening of the railway for through traffic. The contract time for the completion of the last of the viaducts expires in February, 1908, so that I can confirm my previous prediction that the rails between Auckland and Wellington will be connected by the end of that year. Besides the operations on the railway, a very large amount of work has been done in connection with the roads giving access thereto, as without these latter the formation-works on the line could, not have been proceeded with. In addition to branch roads connecting with main roads, where such existed, a service road has been constructed, alongside the line as nearly as possible, practically throughout its entire length. Every effort is being made to put this road, between the rail-heads at the northern and southern ends, into practicable order for summer coach traffic. The rail-heads are now about fifty-four miles apart, but this distance is decreasing month by month, and will be materially reduced before next winter. The expenditure on the line last year, exclusive of the value of permanentway materials supplied, was £220,519, or including the latter materials, £243,694. A vote of £300,000 is proposed for the current year. Blenheim -Waipara . Considerable progress has been made with the earthworks on the first three miles and a half beyond Seddon, the construction of the Hog Swamp Bridge has been begun, the formation of the Blind River Station-yard put in hand, as well as the rather heavy work between Blind River and Lake Grassmere. At the southern end the section between Scargill and Ethelton—nine miles in length —was opened for public traffic on the Ist November last, and the further section to Tormore, three miles long, is now available for goods traffic, and will be opened for regular passenger traffic in a few days. The work between Tormore and Domett is well in hand and making good progress, and this further section will, I hope, be available for traffic early in the new year. Last year's expenditure on the Blenheim-Waipara Railway amounted to £34,552, and for the current year a vote of £45,000 is asked for. Midland. At the Nelson end of the line the section to Tadmor, 10 miles 29 chains in length, was opened for traffic on the 7th August last. The whole of the bush on the Manu Section, 10J miles, has been felled, and formation-work is well in hand, the first two miles being nearly complete.

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