l>.— 4

6

Enclosure 2 in No. 5

No. 6. The Geneeal Manager, Midland Eailway Company, to the Hon. the Premteb. Sic, — Christchuroh, 14th June, 1892, In further reference to the proposals to modify the present contract submitted by me on behalf of the company in letter dated the 6th June, I have now the honour to submit, on separate sheets, detailed estimates of traffic on the East and West line, which will, I think, fully sustain the figures relative to traffic given in Statements A and B attached to that letter Sheet 1 gives details of estimates of traffic for the East and West line made up by me for Statement Aof former letter I wish to point out that the figure assumed for local coal-traffic is the same as that calculated by the Eoyal Commission of 1882. The figure which I give as coal for shipment is one which I have assumed as resulting from the development of the Blackball Coal Company and their arrangements with the direct shipping companies. The rates for coal are taken at such a figure as will compete with sea-borne coal to Lyttelton Harbour I will again draw your attention to the fact that the sum of £70,000 in Statement A of former letter is made up of £60,000 from the East and West line, and £10,000 from the Eeefton line traffic. Sheet 2 shows traffic estimated to meet figures in Statement Bof former letter This does not allow for any shipment of coal from Lyttelton, but deals simply with local consumption. Sheet B allows a gain for £10,000 from Eeefton line, Sheet 3 is the estimate of prospective traffic developed some years after the line is opened. Sheet 4 is the summary of estimates of traffic which are tabulated in the "History of the East and West Coast and Nelson Eailway," published by the Eailway League. I have given at the foot the average of all these estimates, and also the average net sum available for interest purposes. Sheet sis the detailed estimate of the cost of working the East and West line. This is based on the estimate made by Messrs. Higginson and Maxwell of the cost of working the incline and the short adhesion section included in the proposed deviation at Arthur's Pass. This method of estimating the cost will no doubt meet with your approval, as you mentioned it was likely the estimates of cost of working would be referred to Mr Maxwell.

End if Year. Capital. Interest receivable. Receipts from Traffic. I 3 per cent. Amount payable Interest pay- Govcrnm^nt from able. Sales of Lands. Balance. 1 2 3 4 5 £ £ £ £ £ 300,000 12 000 Traffic receipts 55,500 S 256,500 10 260 for three years 55,500 £ 211260 3 452 55 500 ] 164,212 6 568 the £745,000. 55,500 1 115,280 4,612 30,000 93 000 56,892 2 276 34,000 93,000 £ 256 500 211 260 164,212 115 280 56,892 168 £ 256 500 211 260 164,212 115 280 56,892 168 Government to purchase half of £745,000 debentures = £372,500. Land £618,000 Debentures 372,500 t, , , (£245,500 Balance above .. j £168 6 7 8 9 10 11 12 13 14 15 16 17 245,668 40,000 | 74 125 34,125 i 211,543 45 000 74 125 29,125 : 182,418 50 000 74,125 24,125 158,293 56,000 74,125 18,125 : 140,168 61,000 74,125 13,125 127 043 71,000 74 125 3 125 : 123,918 82,000 74,125 131,793 .. 92 000 74 125 149 668 97 000 74,125 ! 172 543 100 000 74 125 198 418 100,000 74 125 ! 224,293 100 000 74,125 ! 211,54E 182,416 158,29E 140,16£ 127,04E 123,918 131,79c 149,666 172 54« c 198,416 224 29E 250,166