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works costing £400,000, intsead of granting land, would a company make the railway to Wanaka? —It is nearly as broad as it is long. 180. You would not then be " hampered " ? —There is this difference : they would have power to settle the land : if the Government did not settle the land, their money would be thrown away, because there would not be any traffic. 181. The Chairman.] Would it not be to the interest of the Government to settle the land as much as the interest of the company ?—Yes ; but Governments do not always follow their interest or their duty in regard to the settlement of the country. Bat, however, that may be, what can I expect when the Surveyor-General of the colony says here that the interior of Otago ought not to be settled for years to come, but to be left for pastoral occupation. Mr. O'Callaghan : He meant as to the freehold. Hon. Mr. G. F. Richardson : I understood Mr. McKerrow that he did not wish to see the freehold parted with for some time. Mr. O'Callaghan : He meant " settled in freehold." 183. Mr. Karri] Did I understand you, Mr. Byke, to say that there was no gold-mining there : that it is not a mining district ?—No ; there are mines all around it, but none that the lino will touch or interfere with.

Tuesday, sth June, 1888. Mr. W. N. Blaik, Assistant Engineer-in-Chief of the Colony, further examined. 184. The Chairman.] The Committee, Mr. Blair, want you to give some further evidence with regard to the Otago Central Railway. I sent by the clerk a memorandum containing some of the particulars upon which we require information. Have you a reply ready for the Committee ?—I have your memorandum, and can give the items of information to which it refers. [Appendix B, C, D.] Would you prefer that I should give the items separately ? 185. Perhaps it would be better if I should put each clause in the form of a question which you could answer. The Committee w rould then have this memorandum before them. In the first place, I would ask, can you give us an estimate of the cost of construction ?—The total cost of the line—that is, to the 31st March, 1888 —has been £388,143. That has been an. expenditure for grading, bridging and culverts, fencing, engineering and office, land, surveys, and other charges. I shall give you the items separately. 18G. Mr. Whyte.] For how many miles ?—That is for thirty-three miles. 187. Mr. O'Callaghan.] Does that include surveys ? The Chairman : He is giving evidence on totals first; he will go into details afterwards. Witness : I will give you the items, omitting shillings and pence : First there is grading, £247,717; bridges and culverts, £93,318; fencing, £3,249; engineering, £17,125; land, £3,986; surveys, £12,197 9s. 2d.; other charges (platelaying, &c.), £10,548 : total, £388,143. Then, the value of the permanent-way on the ground, that is set down at £18,591. 188. Mr. Whyte.] That is not yet charged? —It is not yet charged to the line, but it is included in the statement showing the expenditure each year, which I think you asked for, and which I produce. It gives you the information you require. It is a schedule of the votes and liabilities, and the amount expended each year since the work began. [Schedule handed in.] 189. Does that amount for permanent-way go outside the thirty-three miles? —No. 190. Then it has to be added ? —Yes. 191. Hon. Mr. Ballance.] Will the £18,000 complete it ? The Chairman : No; that applies to permanent-way on the ground only, which is not sufficient to complete the thirty-three miles. Witness : The total estimate of the line to complete the thirty-three miles would be £501,333. The liability at the end of the year 1888 was £24,540. The estimate to complete the formation to Sutton is £52,350 ; which would make the cost, including the Sutton formation, £465,033. That is the last estimate we have prepared: that is, exclusive of permanent-way materials the cost would be £1,100 a mile. 192. Hon. Mr. G. F. Richardson.] Then what would be required in addition to complete the Sutton would be £33,000 ?—£36,300. 193. Hon. Mr. Ballance] Would that be included in the £52,000? —No ;it i; included in the £1,100 per mile. 194. Mr. Whyte.] Will you be good enough to give us the exact t0ta1?—£501,333. 195. That would be over £15,000 per mile. Can you give us the estimate to Middlemarch?— Yes: to complete the line to Middlemarch, which is seven miles farther, the cost would be £525,683. 197. Hon. Mr. Ballance.] What is the total cost of that seven miles?— For formation and rails the cost would be £24,350. 198. Mr. J. McKenzie.] That portion is easier made, is it not? —Yes; that is on the fiat. The portion below is all gorge. 199. Hon. Mr. G. F. Richardson:] You mentioned a sum of £682,000 to Taieri Lake : that was for sixty-seven miles ?—Yes. 200. Mr. Whyte.] Then there is a sum for surveys: that would be for the line into Hawea ?— Yes. 201. So that the syndicate would have the benefit of that ?—Yes. 202. Mr. J. McKenzie.] What was the first estimate of cost?— The first reliable estimate—that made in 1878 —was for £1,100,000; that was right to the lake. It was for 160 miles ; but the distance is 184 miles. 203 Would you have no separate estimate of the portion of the thirty-three miles constructed 2—l. sa.