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railways pass should be made available ; and no prejudice on the part of the engine-drivers, or demand for the exercise of a little extra pains and trouble, should stand in the way of what would bring so much benefit to various localities in the employment of labour and the development of useful enterprise, especially when accompanied by considerable saving in cost to Government. I have, &c, E. B. Cargill, Chairman of Directors, Walton Park Coal Company.

The Commissioner of Railways, Middle Island, to E. B. Cargill, Esq., Chairman of Directors, Walton Park Coal Company. Office of Commissioner of Railways, Middle Island, Sir,— Dunedin, 17th April, 1880. I have the honor to acknowledge your letter of the 15th instant, enclosing report from Mr. Erank Petre with reference to the suitability of Walton Park coal for locomotive purposes, remarking upon some of the trials made with this coal and upon opinions expressed by Mr. Armstrong thereon, and urging the importance of using for railway purposes the coal produced in the localities through which the line passes. I concur in much that is stated in your letter, and I have directed Mr. Armstrong to give the Walton Park coal a fair and proper trial on the south line, and to do his best to make it available for locomotive purposes. I have, &c, William Conyers, Commissioner of Railways, Middle Island.

The Chairman, Walton Park Coal Company, to the Commissioner of Railways, Middle Island. Sir,— Walton Park Coal Company's Office, Dunedin, 15th May, 1880. I had the honor to receive in due course your letter of 17th ultimo, which was the occasion of much satisfaction to the directors of this Company, as they were led by it to believe that the coals of the Company would be immediately taken into use for locomotive purposes. I regret to have to say that your promise to that effect has not been carried out. Up to this date the total quantity of coal taken for the railway amounts to not more than 21 tons. It is plain to the directors that, notwithstanding the successful trial of these coals, and the clear proof that they could be advantageously used at very considerable saving of expense to the public, the determined prejudice of the employes has proved of greater weight than any regard to the public interest. I have to slate that it is the intention of the directors to memorialize the Government, laying before them the whole of the reports and correspondence, I have, &c, E. B. Caroill, Chairman of Directors, Walton Park Coal Company.

No. 80. Evidence of Mr. James Archibald Mcllraith before Mr. Commissioner A. J. Barns, at ilomebush, 28th May, 1880. Mr name is James Archibald Mcllraith. I have been twenty-four years in New Zealand, and resided all the time in this district. 1 have been managing the Ilomebush Estate for the Deans trustees ; and during these years have developed several industries in this district, the principal being coal-mining and brick-manufacturing. In the year 1872, in company with Dr. Haast, several seams of coal and beds of fireclay were discovered on the estate, also glass-sand and pigments. These deposits are not confined to the Deans estate, but have been discovered for many miles and on many properties in the Malvern Hills ; marble and other valuable building-stone being found in large quantities. I had the pleasure of this day showing you several industries in active operation, and pointing out places where industries were likely to be started at no distant date. I have discovered outcrops of coal from Sheffield to the Rakaia Gorge at distances of not more than one mile apart, thereby proving that this valuable and indispensable mineral to man's comfort and use is to be found in large deposits for the whole of that distance of twenty-four miles ; also, that the fireclay beds have been traced for the whole of that distance. You yourself have seen a number of these outcrops to-day, and can so far testify to my statement. The railway from Christehurch to the White Cliffs was opened for traffic about the Bth November, 1875. In order to show the increasing development of the industries that have been started on the Deans estate, I may state that in the month of May, 1876,1 sent over the White Cliffs Railway 86^ tons of coal, and sold otherwise 50| tons during that month. The output of coal continued steadily increasing until May, 1879, when 383 tons of coal went over the railway in that month alone, and 49| tons of coal were sold otherwise; and iv May, 1880, 560 tons of coal were sent by the railway, and 99 tons of coal were sold otherwise. I may hero state that, had this railway not tapped this district, these valuable coal and fireclay deposits were practically valueless. You have today visited the manufactory of Messrs. Ford and Ogden, and can fully estimate the energy there displayed in manufacturing the fireclay into drain-pipes and bricks, and many other useful articles of pottery; also, the terra-eotta manufactory of Mr. Condliffe. These industries employ a large number of men, wrho are consumers of farm and other produce, and have gathered round them a population in a district that a few years ago was a wilderness, or only travelled over by a few shepherds in charge of their flocks. I ascribe the starting and fostering of these industries entirely to the fact that the White Cliffs Railway runs into the heart of those valuable deposits already mentioned. Still, notwithstanding that the White Cliffs line and the Sheffield line tap those deposits at two separate points, yet any one who has given coal-mining any consideration can well understand that something more than merely tapping these deposits at two points is required. lam therefore of opinion that, to more fully develop those valuable deposits, another line of railway is required to run between Sheffield and the Eakaia, in such a direction that the various proprietors may develop those deposits which are now practically valueless. If these deposits were developed a large and increasing number of settlers