F. G. DALZIELL. 1

39

I.—lo.

6. You might have got an option conditionally on certain things being done ? —That is what I think we shall have to do. We were in this position : this capital is available now—that is, assuming we can comply with requirements. The reason why we brought this matter before the House this session is that we cannot hold that capital until next session. We shall probably lose the opportunity if we have to wail until after next session. That is the reason why we were forced to bring the matter before the Bouse. It was necessary to come before it this session, and our purpose in bringing the matter before the Committee and the House is that we might ventilate the whole of the proposals in the hope that it would facilitate a fail arrangement. 7. The Chairman.] Following up what Mr. FraseT has said, if you build the proposed line as laid down, will not that almost naturally increase the value of the land through which is passes I—Which1 —Which ii serves, certs inly. 8. Would it not be better for the company to purchase the land before putting down the line ? — Our proposal is to purchase this 200,000 acres. 9. Will that be the firsi step yon will take ?—Yes. l<). Four intention is not to put the line down in order to tap the thermal regions ? —No, sir. Our purpose is to make our own present line have a permanent value —that is, the Taupo Totara Timber Company's line. It is a purpose we have been trying to find some means of carrying out for many years, and it is only by reason of the recent attention that has been drawn to the pumice lands and their suitability for farming that we have arrived at the conclusion that we can carry out that project. 11. Has your present line no value unless this proposal is granted ? —lt has a value, but what we anticipate is that in the course of fifteen years possibly our timber will be cut out. At the present time il pays us to run our railway for the purpose of carrying our timber. What we hope to arrive at is, when our timber is gone, to find some other traffic for the railway which will enable it to be run as a paying concern. Therefore, if we can yet the line completed to Taupo, the better it will be for us and the better for the whole community, because the whole of the community will hnv a daily railway service to Taupo. 12. Have you entered into any negotiations at all with the Maori chiefs in connection with this land ? —I have in this way, that I have discussed it with Heuheu and one other of the Native chiefs. Vmi can hardly call it negotiating, because one cannot enter into any formal commitment. 13. Has any suggestion been made as to any probable price you will be asked to pay for the land % —No. In the past, when the Government has purchased, the highest price paid has been 4s. 6d. an acre. We do not know what we shall have to pay for this country. It will have to be a price equal to the Government valuation of it. whatever that may be. 11. Yon have secured options over all the places in the thermal regions ?— I have options at Wairakei, Taupo. and the Terraces. I include the Spa in Taupo. 15. Suppose you suggest Is. (id. as the highest price to be paid for the land, and the Maoris decline to take anything like that sum, what would become of the scheme ? —lf they ask a reasonable price 1 presume we shall pay it. The echeme has to be a payable proposition or it will not be taken up, of course. Not only that; I suggest it lias to he not only a payable one. but a very tempting one, owing to the conditions that exist there. 16. The present Taupo Timber Company. I ;im led to understand, is not in a nourishing condition \ You cannot say that. Il is making a substantial profit for a concern like that. It is purely ,\ question of how much timber yon have. At the present time we have a substantial profit. 17. Did you not lead the Committee to understand that the timber in the bush was two-thirds less than yon anticipated ? —lt is only a third of the original amount we expected. It will result in a loss of capital. You cannot say it is not in a good financial position : that means that yon arc hampered for finance. That is not so OUT finance is in a very good condition to-day. IS. Unless this proposal :s granted, I understood, the company will be financially unsound, and the present line will be practically useless when the timber is cut out ? —No, it will not be useless. The company owns 50,000 acres of hind. The line will be there and available for use by the Taupo people if Taupo develops sufficiently to make it pay working-expenses. But our suggestion, which I say is in the interest of the whole community, is to complete it at once and maintain it as a permanent railway.