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* For 43 weeks only; mine opened 24th August, 1885. List of the Proprietors in the Nightcaps Coal Company: William Handyside (managing partner), Invercargill; William Johnston, farmer, Nightcaps ; William Murray, merchant, Melbourne ; John Eoberts, merchant, Dunedin; John Dalgliesh, merchant, Invercargill ; Charles Edward Twining, mining engineer, Dunedin. — William Handyside, Managing Partner. (Memorandum.) Public Works Department, Engineer-in-Chief's Office, Wellington, N.Z., 15th July, 1886. —In reply to your inquiry, made through the General Manager, Eailways, re extension of Nightcaps Eailway, I have to state that the line has a gradient of lin 407 on a 20-chain curve for 44 chains. It can be reduced to lin 50, without altering the alignment, for about £900 ; and by deviating the line the cost may possibly be made a little less. There is no necessity for altering the gradient at present, as it is in favour of the mineral traffic ; but it will be desirable to do so if ever the line is extended for any considerable distance. —John Blackett.—F. J. Moss, Esq., M.H.E., Chairman, Public Accounts Committee. The Seceetaey, Dunedin, Peninsula, and Ocean Beach Eailway Company, to the Chaibman, Public Accounts Committee. Sir, — The Dunedin, Peninsula, and Ocean Beach Eailway Company (Limited), Dunedin, 9th July, 1886. I have the honour to acknowledge receipt of your telegram of to-day's date, and, in reply, advise you that the only revenue of the company has been the net amount received from the Government, after deducting charges for repairs, maintenance of line, and hire of rolling-stock, the smallness of this amount—as mentioned in my letter of the 9th June to the Hon. the Minister for Public Works —being caused by the want of the terminal site in the city, the heavy Government charges, and the fact of the line only being used on public holidays and race meetings, it being absolutely impossible for the company to work as a private concern for the convenience of the public with the ordinary daily traffic without the said terminus. I have, as you are aware, forwarded with above-mentioned letter a statement of the gross takings of tho company, as supplied by the Government. The railway was valued by Messrs. W. N. Blair and H. P. Higginson, in December, 1878, at £17,000, as per copy enclosed; and, again, by Mr. Blair, in April, 1881, at £18,000, the difference being the increased value of the freehold ; but since then the population all along this line of railway has increased to an enormous extent, and at the St. Clair end, where in 1881 there were only two or three houses, surrounded by fields, there is now a very large population. On every afternoon, Saturdays and holidays especially, the beach is thronged with pleasure-seekers, most of whom would go by the railway, if running. To give you an idea of their numbers I have the honour to hand you an in* stantaneous photograph, taken on a Saturday afternoon. As instructed, I beg to hand you certified list of shareholders. I have, &c, Montagu Pym, Secretary, Dunedin, Peninsula, and Ocean Beach Eailway Company (Limited), F. J. Moss, Esq., M.H.E., Chairman, Public Accounts Committee, Wellington.

Dunedin, 24th December, 1878. —The Chairman of the Dunedin, Peninsula, and Ocean Beach Eailway Company.—Sir,—l have the honour to hand you herewith the valuation of your railway made and certified to by W. N. Blair, Esq., and myself.—l have, &c, H. P. Higginson. Certificate: We, the undersigned, having duly examined and measured the works and appurtenances of the Dunedin, Ocean Beach, and Peninsula Eailway Company, hereby declare the value to be £17,000. In addition to the works in the main lines and sidings, this valuation includes the siding to Musselburgh Quarry, the permanent-way material in stock, and the land occupied by the railway through the Township of Musselburgh. It does not, of course, include tho preliminary and legal expenses, which are also chargeable to capital account. —H. P. Higginson, and W. N. Blair.—Dunedin, 24th December, 1878. Dunedin, 28th December, 1878. —The Chairman of the Dunedin, Peninsula, and ; Ocean Beach Eailway Company. —Sir, —With respect to tho valuation of the above line, I have the honour to send you tho separate amount arrived at under the following different heads: Earthwork, including formation, ditching, and pitching, £5,231; bridges, culverts, level-crossings, and fencing, £973 ; permanent way (material only), £2,876 ; ballast, sleepers, and platelaying, £3,780; stations, platforms, &c, £2,300; sand, £1,000; engineering supervision, and contingencies, £840: total, £17,000.-1 have, &c, H. P. Higginson, C.E. Extract from Mr. Blair's report of the 7th April, 1881.—•" From recent examination and measurement I estimate the value of the Dunedin, Peninsula, and Ocean Beach Eailway at £18,000. —W. N. Blair, M. Inst. C.E." List of Shareholders in the Dunedin, Peninsula, and Ocean Beach Eailway Company (Limited), all fully paid up : William McLauchlan, 1,350 shares, £1 each ; John Fergusson Harper, 7,384 shares, £1 each ; David Proudfoot, held by C. C. Kettle, 508 shares, £1 each; E. B. Cargill, Dr. T. M. Hocken, H. Bastings, and others, 1,800 shares, £1 each ;T. M. Hocken (Dr.), 1,592 shares, £1 each : total shares, 12,784. Mortgage of £4,500, at 9 per cent.—Tho above is a correct list of the shareholders in the Dunedin, Peninsula, and Ocean Beach Eailway Company (Limited). — Chaeles C. Kettle, Notary Public, Dunedin, 9th July 1886.

The TJndee-Seoeetaby for Public Works to the Chairman, Public Accounts Committee. Ec Ocean Beach Railway. Sib, — Public Works Department, Wellington, 10th August, 1886. In reply to your questions of yesterday's date, as per copy of your letter attached, I have the honour to state as follows :—■ I. The railway was constructed under the authority of the fourth section of "The Eailway Companies Act, 1875." The Governor's assent to the construction of the railway was given on the 27th June, 1876. 11. When the railway was authorized, no conditions as to maintenance and running trains were stipulated for, as the Act provides that the Governor may from time to time prescribe regulations fixing tolls, fares, minimum number of trains per diem, and quantity and quality of rolling-stock to be used on such railway. The Act also provides for the Governor appointing an officer to inspect the railway at any time, and for compelling the company to keep the line in repair. 111. The termini of the line, as authorized by the Governor, were as follows : 1. Junction with Government line, 57-70 chains from south end of Dunedin passenger-platform. 2. At Hastings, close to Forbury Eace-grounds. 3. Anderson's Bay.

Ietubn o: !oal 'bafeic Erom 'hauwhau, Shag-point, 'eenhilij, am 'ightc. .PS, Erom Mine. 1880-81. 1881-82. 1882-83. 1883-84. 1884-85. 1885-86. Total. Tons. Tons. Tons. Tons. Tons. Tons. 10,290* 6,448 7,500 7,852 Tons. 10,290 99,845 41,870 38,855 Whauwhau Shag-point Fernhill .. Nightcaps 6,490 22,840 4,045 335 18,298 3,383 8,311 20,214 9,047 10,623 360 11,405 11,734 Total 38,175 27,220 29,992 39,884 23,499 32,090 190,860