1.—9.

The explanation now given of what Mr. Vaile understands to be "differential rating" is quite at variance with his definition given in evidence (101). The results he describes are quite imaginary. The rating is under the control of a responsible Government, and alterations in rates proposed by local officers are fully considered, and such abuses as Mr. Vaile imagines are not possible. The remark that the officers of the department first stated that differential rating was necessary to insure equality is incorrect. Mr. Vaile fails to understand the point at issue. He is evidently capable of writing and saying hard and bitter things about imaginary evils. Mr. Vaile's insinuation that the errors he has made in the distances of the Springfield coal-mine to Eiccarton, Selwyn, Eakaia, Chertsey, and Ashburton are owing to the omission in Bradshaw to show that the line to Oxford was open is most remarkable. The members of the Committee are doubtless all aware that Oxford is not on the Springfield Branch, and that the route via Eolleston has been open for the last ten years. The deduction in Mr. Vaile's pamphlet that the Minister has omitted to include the valuation of the provincial lines in the cost of opened railways for the 31st March, 1885, is untrue. I will now proceed to remark on the return for the Auckland section got out by the instructions of the Committee. The return of passengers for the Auckland section for the year ending the 31st March, 1886, showing the journeys between all stations, has been compiled for the line between Helensville, Auckland, and Morrinsville, to show a complete year's traffic; the portion from Te Aroha to Morrinsville and Oxford is omitted by arrangement with Mr. Vaile, as it was only open for a few weeks before the close of the year. Onehunga has been treated as one stage from Auckland, although outside the Penrose ticket-station, it being understood that such was Mr. Vaile's intention. The number of passengers at Mr. Vaile's fares is 'arrived at by dividing the revenue from the first-class passengers in each case by 6d., and the revenue from the second class by 4d. In the course of evidence Mr. Vaile has said he considers that he will get at least as many first- as second-class passengers. This would affect the numbers shown as passengers at Mr. Vaile's fares, making them somewhat less :' the average stage-fare being sd. instead of about 4fd. It will be observed that the summary shows much the same results as that for the Hurunui-Bluff section. The greater proportion of passengers travel ten miles and under; but the revenue they bring is less than one-fourth of the total revenue. It is to be noted that more than one-third of the revenue is derived from passengers travelling distances over fifty miles. If the anticipation of the witnesses is realized, that but little increase in numbers can be expected under ten miles, and if, as Mr. Vaile's witnesses surmise, the numbers beyond ten miles increase to three to one, it is clear that no increase in revenue can result, and that the average fare must fall below Is., while, if Mr. Vaile's anticipations are realized, and much increase occurs below ten miles, the average fare will sink still lower. According to the views expressed by Mr. Edmonds (No. 999), the proportionate increase of passenger-revenue due to the Auckland section should be about £23,000, that is, from £39,903 to about £63,000. This witness states he was unaware of the proportions of revenue derived from the different distancss travelled. In the absence of such information it is not surprising that he should have fallen into the error of adopting the calculation described by him (No. 1001), giving an average of fare of Is. 3d. The actual average is about 10-Jd. It is certainly quite clear from the summary now presented that three passengers to one over the longer distances (1026, 1062) are most unlikely to produce as much revenue as now, instead of an increase of £23,000 which he anticipates, and with the increased expense of carrying such numbers the profits arising will fall far below the present profits. Mr. Vaile's views as to the increase in numbers are so varied and seem so visionary (35, 50) that it is no use commenting upon them. Those who are acquainted with the district will, by examining the details leading up to the summary, be able to judge whether it is at all probable that, the number of travellers will be likely, in any moderate period of time, to increase to the extent necessary to bring the same gross revenue as is at present obtained. The following table will show approximately the increases in passengers required in many cases: — Auckland-Frankton —Number required about 6 times. „ Te Awamutu „ 6 „ „ Cambridge „ 6 „ Pukekohe-Erankton „ 20 „ Mercer-Te Awamutu „ 11 „ Hmntly-Frankton „ 8 „ Ngaruawahia-Cambridge „ 5 „ Frankton-Te Awamutu „ 6 „ Te Awamutu-Frankton „ 6 „ „ Ngaruawahia „ 5 „ Hamilton-Cambridge „ 6 „ „ Morrinsville „ 7 „ Cambridge-Auckland „ 6 „ „ Hamilton „ 6 „ Morrinsville-Auckland „ 6 „ „ Cambridge „ 10 „ „ Tuakau „ 12 „ Cambridge-Pukekohe „ 14 „ Te Awamutu-Pukekohe „ 14 „ Frankton-Mercer „ 16 „ Ngaruawahia-Mercer „ 12 „ Tuakau-Cambridge „ 13 „ Pukekohe-Te Awamutu „ 14 „

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