r A. E. GRAHAM.

I.—lo

24

the line twice over, and the State would still have its capital intact. That is, the State would get the Putaruru line out of the investment of the profits of the sale of half of its (c.) Thirdly, the line would greatly increase the value of the State freeholds in and around Taupo The State owns the freehold of the greater portion of the sights in the Taupo district, nearly the whole of Taupo Township, and about 400,000 acres of Crown lands as well, so that by permitting the railway or acquiring it the State is directly enhancing the value of its own assets Mr. Raw, in his evidence (page 12), states that as far as the attractions of both places Taupo and Rotorua, were concerned, they did not feel the competition, and were not frightened of the competition of Taupo with Rotorua. If that is so (and it is the evidence solemnly given by the principal objector) I fail to see how the Putaruru line can depreciate the value of Rotorua. And I would further point out that, even if it did, it must not be forgotten that the State has only a landlord interest in Rotorua. The State land has been parted with on a ninety-nme-years lease for which the State gets the absurd nominal rentals of about £15 a section on an average, the goodwill of which sections even off the main streets of Rotorua running into £400 Hence the State interest in Rotorua is really small at the present time, and the Rotorua people should not forget that the goodwill practically amounts to the huge unearned increment obtained by them from the assistance given by the'State to the town, and they should under these circumstances be only too glad to assist in the development of other districts instead of adopting a dog-in-the-manger policy, (d.) The Putaruru line will benefit the settlers of the district by givV them direct communication with the Waikato and Auckland, increased facilities for importing fertilizers, implements, fencing-materials, goods, &c, and exporting produce, and give a direct impetus to the progress of the country, (e.) The Putaruru line will vastly increase the tourist traffic of the Dominion, and so increase the revenue of railways and other Departments of the State Page Bof the Rotorua pamphlet admits the opening-up of Taupo will vastly increase the tourist traffic—a source of great benefit to the whole Dominion. And, again, I cannot do better than quote Mr. Raw, the leading objector, who, on page 11 of his evidence, stated that " The knowledge that the whole of the thermal region of New Zealand was made so accessible <bv railway to Taupo) to visitors from Australia and overseas would alone induce them to come in ever-increasing numbers." It is universal!,- admitted that the attractions of ;the Taupo and Wairakei district are far superior to those of Rotorua, therefore it is m the interests of the Dominion that railway communication should be established with Taupo at once. In fact, we contend that if the tourists could get to Wairakei ami Taupo by railway, then nearly every visitor to Rotorua would visit Taupo as well, and consequently more money would be left in Se Dominion Furthermore, the visitors would be far more satisfied with the thermal wonders than theaVe at present, and would in themselves be the means of advertising the Dominion EISsHHxt J££E£ -Sri? fe^Hc dstrifro Id be penalized and kept stagnant for fear that its development might injure another two miles of railway from Putaruru to ™»™_ j; J ; " the £ co ™ -ith the opposition of from Rotorua to Taupo a present nojhe^. liM1iM W the Putaruru line 0-) A K thp very arg commer cial success of the undertaking doubt on the nuahty of the land m the »«* ana* - enterpr ; se t o construct the railon the other hand, the enterprise succeed. the g«Mrt can taK provisions interests of the State can be -^ardedj, by |king over the line enabling the State to aonuire the line aianr_t,rne at a v-a . maxl - murn scale of a reasonable time. The interests of he settle « b ; ■ fr . M cliareeg should aT)proacn freight and passenger charges, fto. Tn this respect the scale of a Government line for provision should be made to Putaruru line is the opemng-up ol ho +o«r lP t ,e «i « w& . T people that, to my mind, call for any