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1890. NEW ZEALAND.

MIDLAND RAILWAY. PAPERS RELATIVE TO THE CONSTRUCTION AND LEASING OF GREY-HOKITIKA AND BRUNNER RAILWAYS BY THE COMPANY.

Belurn to an Order of the Souse of Bepresentatives dated 25th June, 1890. Ordered, " That there be laid before this House all papers and correspondence that have passed between the Government and the Midland Railway Company re the construction of the Grey-Hokitika Railway and leasing of the Brunner Railway by the said company."—(Mr. Seddon.)

No. 1. The Under-Secretary for Public Works to the General Manager, Midland Eailway Company. Sir,— Public Works Office, Wellington, Ist October, 1889. With reference to the conversation which you and Mr. Scott had with the Premier and the Hon. Mr. Mitchelson on Saturday last on the subject of the completion of the Greymouth to Hokitika Eailway, and of your proposal, arising therefrom, that your company should get a lease of the Brunner Eailway in the event of your taking over the Greymouth to Hokitika line, I have the honour to inform you,— (1.) That the Government does not consider that your proposal to reduce the agreed-upon expenditure on the Midland Eailway at Springfield and Belgrove by £40,000, in order to put you in funds towards the carrying-out of the Greymouth to Hokitika line, can be assented to. It would therefore be necessary to provide for the construction of the Hokitika line in some other way. (2.) As regards the leasing of the Brunner Eailway, the question is one of so much importance, and surrounded with so many intricacies, and there are so many separate interests involved, that considerable time and care would have to be taken before any definite conclusion could be arrived at as to whether or not the Government would be justified in giving you a lease of this line as requested ; and in the meantime it is suggested, in order that the matter may be properly considered, that you should submit a definite proposal as to the terms upon which such lease could reasonably be granted, and that in this proposal you should set forth how all the many interests involved may be properly conserved, and how the conditions of rental, &c, can be fixed in such a way as to do justice to the Government and the company under the many variations through which it is possible that the traffic of the future may pass. I have, &c, C. Y. O'Connor, Under-Secretary for Public Works. E. Wilson, Esq., C.E., Midland Eailway, Christchurch.

No. 2. The General Manager, Midland Eailway Company, to the Under-Secretary for Public Works. Sir, —■ Christchurch, 3rd October, 1889. lam in receipt of your favour of the Ist instant. I regret that the Government do not see their way to temporarily reduce the amounts to be spent at the Springfield and Belgrove ends of the line, as this would have materially expedited the construction of the Greymouth-Hokitika line. At the same time, lam prepared to submit a proposal for leasing the Greymouth-Brunner-ton section if you will supply me with statistics of the cost of working the line, and also of the cost and method of working the harbour, as I presume the lease would have to include bo.th railway and harbour. I have, &c, Eobert Wilson. C. Y. O'Connor, Esq., Under-Secretary for Public Works, Wellington. I—D. Be.