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Friday, 15th Septembee, 1893. Mr. J. P. Maxwell, Bailway Commissioner, examined. 1. The Chairman.] The report that we have had from your department, Mr. Maxwell, is, so far, conclusive; but the Committee wish to know if you can give any further information relative to taking over the land in the first instance ? —About taking over the land? No ; Ido not know. I think the report contains all I can say about it. The line was constructed by the Public Works Department, and I have only hearsay evidence about it. This is the evidence, which I will read:— " The Fernhill coal-line was constructed under the powers of the Public Works Act, which were improperly exercised in this respect for a private railway. The Fernhill Company paid the Government for making the line. The Government Eailways Department has always worked the line from the first opening. By reason of "The Government Eailways Act, 1887," the line became vested in the Bailway Commissioners in common with other railways constructed under the Public Works Act. For some time the coal-mines were closed, and the line was then no longer worked by the Government railway authorities. In February last, the Commissioners received intimation from their local officer that the mines were to re-open, and asked instructions as to working, which were duly given. It was subsequently found that a Mr. Gray, who had started working the mine, was interfering with the line by running trollies upon it, and in other ways. As the line was vested in the Commissioners, they could not allow this interference, and, after considerable trouble with Mr. Gray, they prosecuted him in the Eesident Magistrate's Court, and he was fined £3 and costs. It was proved at this prosecution that the railway vested in the Commissioners, and they are, therefore, responsible for its proper control and working. " The account given in the petition —clause 26 —that the Bailway Commissioners' action arose from communications from Sir Bobert Stout, is incorrect. The incident arose from Mr. Gray's having started to run trollies on the railway, and to operate upon it in other ways, which, as it is vested in the Commissioners, could not be pertnitted. " The Commissioners consider the situation eminently unsatisfactory. They think that they should, be divested of the line outside the limits proper of the main line of the Government railway, and that it ought to vest absolutely in the persons who are equitably entitled to it, and they have advised the Government to that effect; but who the parties are who are entitled to it the Commissioners do not know. It is most undesirable that the colony should purchase the line, or be in any way responsible for its control or working. The General Manager of railways protested against the objectionable legal status of this line so far back as 1883. " The Commissioners hope that the proper legislation may be passed removing this line from the category of Government Eailways." All this information has been obtained from documents from time to time. Ido not know it absolutely from my own knowledge. The Bailway Commissioners have always worked the line from the time of their appointment. The Fernhill Company expected the Government to work the line. I gathered at the time that the railway was constructed in order that the Government might work it, and one of the reasons for the Public Works Act was that the Government should have the necessary powers for working it. It was not a reasonable thing for the Government to do, for it merely had the effect of causing expense to the Government to get traffic from this line, which they had before without this expense. The company previously brought their traffic to the Government railway-line and put it on the trucks there at its own cost. After the line was constructed, the Government had to go to the mine and get the coal, which was an extra expense, and which was unsatisfactory. The Government continued to work the line in this way for several years, running their trucks and locomotives up to the mine ; and the line was not a useful possession. I do not profess to be able to give an opinion as to how the property was vested at first; but when the Government Eailways Act came into operation, then there was no doubt as to how the line then became vested. The Commissioners had to take it, and were responsible for everything that took place upon it. They have worked it since they took office. It is merely a coal siding. There is no other traffic upon it. As is stated in the report, early in the year, the coal-mine having been shut up, some one communicated' to the local traffic manager that they wanted to work the mine again. The traffic manager applied for instructions, and we gave them. We put the line in order at a cost of £200, or a little more. We had some difficulty with Mr. Gray, whom we found working upon the line. He was not authorised to work upon it, and we had to turn him off and prosecute him. That is the whole account that I have to give of it. 2. The Chairman.] Could you inform the Committee who issued the instructions to construct the line in the first instance ? —No. ■ It would be between the late Mr. Blair and the Minister for Public Works of the day. Who that Minister happened to be I do not remember now. Mr. Blair was the officer engaged in dealing with this business at the time. 3. When the Act came into force, did any one make a claim to the Commissioners for compensation or right in this line ? —No; we have had no questions raised about the working of the line until February last. 4. Can you tell the Committee what amount has been spent on the line for the recent repairs? —A little over £200. That has been spent since January last. 5. Can you tell the Committee about what amount the line realises per month in rates?—No; we can assign no fair amount of revenue to the line. The market for the coal is Dunedin, and within a certain range we charge Is. 9d. per ton—namely, ten miles. The Government did not get any more for working this line, and that is what I mean by saying we were put to additional expense ; for, formerly, the railways got this traffic put on the railway, and charged the same rate. 6. This mine, then, is within ten miles of Dunedin?—Yes ; it is only about five or six miles distant from the town. 7" Mr. Moore.] The land having been taken, you mean, under the Public Works Act? —-Yes.