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return will then, after deducting 460 acres, No 2, Kairanga — 244,502 acres, which is the area valued by Mr. Liuton and myself. (See accompanying report by me to the Minister of Lands, dated 4th January, 1882) : — The valuation by Mr. Linton and myself ... ... ...£116,708 The valuation by return in possession of Mr. Travel's for company ... ... ... ... £139,007 Deduct No. 2, Kairanga ... ... 690 £138,317 Therefore the valuation in possession of the company is greater than the award by ... ... £21,609 I have explained as fully as I can about the return in possession of the company, not that I think any importance attaches to it, but because of the importance given it in my examination before the Committee. In my evidence before the Committee I stated that Mr. Linton and I had not valued the land on the east side of the Tararua Range. I find, however, on referring to my report of 4th January, 1882, already referred to, that we did value the land in question; and I furnish copy of the three divisions of land included in that valuation, and numbered 27, 28, and 29. The fact of our having valued these three areas, had entirely gone from my memory when I was before the Committee, due, I suppose, to Mr. Linton and myself agreeing to value the land in the office, we both having known it before ; also to the fact, strong in my recollection, that Mr. Rolleston would never hear of giving that land to the company. I have, 4c, James McKebeow, The Chairman, Waste Lands Committee. Surveyor-General.

Letteb fbom Mb. Lewis relative to his Evidence given Session 11., 1887. Sic, — Native Land Purchase Office, Wellington, 22nd June, 1888 Referring to the report of the Waste Lands Committee dated the 21st December, 1887, on the petition of the Wellington and Manawatu Railway Company, and to questions Nos. 253 and 264 to 275 in the minutes of evidence thereto appended, I have the honour to state for the further information of the Committee — 1. That the agreement in respect of the sale of 4,000 acres of the Horowhenua No. 2 Block to the Crown is of even date, 19th July, 1887, with the deed of transfer to Her Majesty. 2. The total area of Tuwhakatupua No. 1 Block is 1,687 acres, of which 1,026 acres have been vested in freehold tenure in Her Majesty by an order of the Native Land Court, made at Palmerston on the 7th June, 1887. 3. The Government has not purchased any portion of the Tuwhakatupua No. 2 Block. I have, 4c, T. W. Lewis, The Chairman, Waste Lands Committee, House of Representatives. Under-Secretary.

The Chaieman, Wellington and Manawatu Eailway Company (Limited), to the Hon. 11. A. Atkinson. Wellington and Manawatu Railway Company (Limited), Sir,— Wellington, 13th February, 1882. I have the honour to acknowledge receipt of your letter of the 10th instant in reply to application made by the directors of the company for a grant-in-aid of £26,430 in lieu of deficiency of endowments. I am sorry the Government have been unable to see their way to the providing for the same in the contract, and would venture to point out that throughout the negotiations between the Acting Minister for Public Works and the directors of the company, for the purpose of completing the contract, it has always been conceded by him that this company was entitled to, and should receive, all the concessions that the Government could legally concede under " The Railways Construction and Land Act, 1881." Believing that such is the intention of the Government, and that they are willing to assist and foster the interests of the company in any way which would be found to be practicable and within the law, I beg to suggest that the following clause be added to the contract, as a substitution for the grant-in-aid : " That whereas the land set apart to be dealt with in a manner respectively provided by Part V. of ' The Railways Construction and Land Act, 1881,' on valuation being made in accordance with the said Act, it is found to be of the value of £116,708 only, less land taken from schedule at request of Government, £20,138, leaving for the company selection £96,570 only : And whereas the company is entitled to an endowment under the Act equal to 30 per cent, on 84J miles at £5,000 per mile, making a sum of £421,250, the percentage on which is equal to £126,375, leaving a deficiency in value of land-endowment of £29,805 : It is agreed that the company shall have power to select, under the Act, lands to the value of such deficiency, viz., £29,805, out of any lands the Government may become possessed of on the western side of the forest reserve within five years from date of contract, the time allowed for the construction of the railway." The directors being anxious to proceed with the work, an early consideration and reply will be esteemed a favour. I have, &c, The Hon. H. A. Atkinson. J. E. Nathan, Chairman.

Repobt of an interview with the Hon. the Minister for Public Works and the Deputy-Chairman and Directors of the Company on the 21st September, 1882; Mr. Levin, Mr. Johnston, Mr. Plimmer, and the Secretary being present. Mb. Levin introduced the subject of the interview, which was relative to the deficiency of endowment of lands referred to in contract clause No. 11. He stated that the directors were