1.—9.

559. And also having some export trade in the shape of cattle, flour, and grain to the west coast of the South Island ?—Yes. 500. Would not New Plymouth also be similarly handicapped?— Yes. From Inglewood to Patea is fifty miles—that would be two stages —-and from Inglewood to New Plymouth is seventeen miles, or about a third of the distance, and would be also two stages. That is, produce would be carried as cheaply for fifty miles as for seventeen. 561. The trade is at present tending to these two ports of New Plymouth and Wanganui ?—Yes. 562. And this stage-system would tend to divert it to Patea, which is an inferior port, and has a smaller population ?—Yes; that would be the effect. 563. Could yon say that that would in any way assist in developing the country ?—I do not see that it could be of any possible advantage to the country. 564. There would only be disadvantage to the railway in carrying a longer distance instead of a shorter to the existing centres ?—Yes, that is so. 565. Can you give us any other cases? —I have a few cases on the Hurunui-Bluff line. From Gore to the Bluff—the natural port of that part of the country—would be charged as seven stages, and from Gore to Dunedin would be only six stages. 566. How do you get.these stages ?—I have taken them from Mr. Vaile's memorandum which is before the Committee ; not from the diagram, which he has stated not to be quite correct. Then, the distance from Kingston to Dunedin is 175 miles, and would be charged as seven stages; and from Kingston to the Bluff is 104 miles, and would also be seven stages. There is a large quantity of grain grown in the Lake district, and the cost of conveying it to Dunedin would be much more to the railway than of bringing it to the Bluff. 567. Is there not a cattle-market for the Invercargill district at Wallacetown? How would that market be effected ?—The distance from Dipton to Wallacetown is thirty-two miles, which would be charged as five stages, Wallacetown being the sale-yards for Invercargill; and from Dipton to Gore via Waimea Plains line, where there is also a sale-yard, is fifty miles, and would be charged as three stages; so that it would cost very little more than half the amount to take stock to Gore than to Wallacetown. 568. And that would act prejudicially on the Wallacetown market, which has been recently started ?—I imagine it would. 569. It has the effect of fencing off the place from the country, as far as I can make out?— Yes; and it would have the effect of preventing stock being sent from the north side of Invercargill to Wallacetown, as it would naturally go the other way, where there are no stages. 570. How would Dunedin be affected in this case?— Well, from Palmerston to Oamaru the distance is thirty-eight miles, and would be charged as three stages ; to Port Chalmers, which is really the port, it is thirty-five miles, and would be charged a stage more : that would divert the trade now going from Dunedin to Port Chalmers, and send it to Oamaru. Take from Waikouaiti to the Dunedin sale-yards, thirty-five miles, or six stages, and from Waikouaiti to Oamaru it is twelve miles farther, and only three stages: that is to say, a farmer could send stock to Oamaru at half the cost he could send it to the Dunedin sale-yards, which is the natural place for him to dispose of his stock. 571. Then, not only would the Burnside market be injured, but, of course, the seller at Waikouaiti would also be injured by being kept out of the market? —That would be so; at least, if he went to the market he would have to pay double the cost. 572. How would Canterbury be affected ?—From Ashburton to Timaru is forty-eight miles, and would be three stages; from Ashburton to Lyttelton is fifty-nine miles, and would be six stages. All grain from that district practically goes to Lyttelton now, and pays full rate. Under the stage-system it would cost twice as much to take grain from Ashburton to Lyttelton as from Ashburton to Timaru. 573. This would, of course, be prejudicial to the trade of Lyttelton. Do you consider that would be any advantage in that district ?—I cannot see any possible advantage. Another instance is : From Fairlie Creek to Washdyke, thirty-six miles, would be charged two stages; and from Makikihi to Washdyke, only twenty-two miles, would be three stages. That is to say, a farmer in the neighbourhood of Makikihi, much nearer the Timaru sale-yards market, would have to pay a half more than a farmer on the Fairlie Creek Branch. There is even a worse case : From Eakaia to Christchurch sale-yards is only thirty-four miles, and would be five stages ; but the farmer at Eakaia could send his stock to the sale-yards at Timaru, three stages, for 40 per cent, less, and it is about double the distance. There would also be a considerable differential rate between Oamaru and Timaru. They have their trade pretty equally divided. From Waihao to Oamaru is only twenty-two miles, and there would be three stages, but between Waihao and Timaru, which is nine miles farther, there would be only two stages. This would, of course, act against Oamaru. 574. Mr. Macandrew-.] Assuming that the charges under Mr. Vaile's system were regulated to yield as much revenue, would you consider the system preferable?—No ; I do not see any kind of advantage in it. 575. Would it not be simpler?—No; of course Mr. Vaile himself has said that he has not gone into details; but there is nothing I can see in the general plan to make it simpler. 576. I understand, then, that not only would there be no advantage from the change, but you are of opinion that there would be a decrease of revenue?— That would, of course, entirely depend upon what the rates were ; but I think there would be a decrease of revenue. 577. Have you any idea what the decrease would be ? —Not the slightest. 578. In your opinion the result can only be ascertained by experiment ?—lf the passenger-rates are to be those stated by Mr. Vaile, I certainly think the revenue is not likely to be so good as at present. The goods-rates he has stated distinctly that he has not fixed, therefore it is impossible to say how they would turn out.

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