E.—B

2

Say £113,000, or about £7,800 per mile. The remainder of the line, from the Tokomairiro River to the Township of Kaitangata, a distance of 15f miles —cost of construction, including bridge at the mouth of the Tokomairiro River, permanent way, ballast, fencing, &c, £79,800 ; or a sum total from the Taieri River to the Township of Kaitangata of £192,800. If to this be added £75,000 (including permanent way, land, rolling-stock, &c.) for the line from Green Island Branch to Taieri River via Kuri Bush, it will make a grand total of £267,800 required to construct and equip the loop from the Green Island Branch to Kaitangata, a distance of 45;; miles. I find, by taking Dunedin Station as a starting point, and Stirling Station as the terminating one, that the loop line is about 5} miles longer than the main line. Before concluding this report I deem it my duty to express an opinion with reference to the prospect there is of this line paying. I have now made myself thoroughly acquainted with the country along the coast from Green Island to Kaitangata, and also that portion lying between the coast and the main line. Witli the exception of a narrow 7 slip of agricultural land, averaging not more than 10 or 50 chains in width, along the coast, I can truly say the country between this and the Taieri and Tokomairiro Plains is very broken and nearly unfit for agricultural settlement. Certainly, here and there small farms are to be found, but as a whole the laud is only suitable for pastoral purposes. I am irot aware of any Crown lands of value that would be opened up, nor any large tracts of timber country. Coal, doubtless, may be found along the route of tho proposed line, but this, together with the probable grairr traffic, would not, in my opinion, justify the construction of the railway for many years to come. 2. — Oittram to Clarendon. This line, you will perceive from Ihe enclosed tracing, leaves the Outram Branch at " Shand's," and follows ou'direct till the main road is reached. From here to the Township of Berwick the line generally follows the road, with the exception of one or two places where detours are necessary. Prom Berwick to Clarendon tho line follows pretty generally the shores of Lakes Waipori and \\ ailrola, with the exception of that portion opposite the Township of Waihola, where it is a mile inland. The remaining portion along the lakes decs not average more tharr 20 or 30 chains from the shore. The total length of the line, from Shand's to the junction at Clarendon on the main line, is 18 miles, and no engineering difficulties whatever are met with. The grades throughout will be particularly good. I may say that, with the exception of a few places between Berwick and Clarendon, the country is comparatively level. Ido not think it advisable to bring the line round by the Township of Outram, as by so doing a very unnecessary detour worrld have to be made, thereby lengthening the line and materially increasing its cost, on account of the country iv this portion of the district being more difficult than that where the litre is shown. The country between Outram arrd Berwick is one of the best: fanning districts in Otago, but that from Berwick to Clarendon is much broken, and, with the exception of the portion just adjoining the lakes, the land is much more suitable for grazing purposes than agricultural. By reference to the tracing you will observe that the proposed line does not irr any place exceed a distance of 31 miles from the main line, and in many places it is within 2 miles; in fact, I may say the line throughout dues not average this latter distance from the main line, the whole of the country between them, with the exception of that about the Waihola Lake, being a plain. My approximate estimate for forming, fencing, laying permanent way, rolling-stock, &c, is, in round numbers, £95,000, or, say, £5,200 per mile. I do not think the prospect of an adequate return is sufficient to justify at present the expenditure of so large a sum of money as is required in the construction .of this railway. 1 have, &c, E. R. Ussher, The Engineer in Charge, Middle Island. District Engineer. By Authority : Gkorgk Diuseurv, Government Printer, Wellington.—lB79. Price 3d.]