I.—6c

28

290. Mr. Wright.'] By means of this extended form it would be, in your judgment, far easier for the colony than the three substantial payments?—lt would be better than the three payments. 291. Mr. Guinness.] What is your opinion, Mr. Wilson, as to the effect of a breach of this contract if it is thrown up?—lt is very simple to see what the effect will be. You must remember these three-quarters of a million debentures are held in large blocks by financial people in England. Our shares and our debentures are held firmly in blocks of £3,000 and £4,000 and much larger sums; these are held by many leading financial people, and many of the big financial houses in the oity hold some of our debenture stock. People having gone into this railway in good faith, on the evidence then laid before them originally, when the new evidence of last session was laid before them, it was a difficult matter to induce them to submit any offer for settlement at all. The company submitted the whole evidence to counsel, and the opinion they got was so favourable that a large section of the debenture-holders said, " We will wait for our interest and fight the Government." Suggestions were made that proposals should be submitted by which we might come to a friendly and satisfacfory settlement, and so get the railway finished with some amount of satisfaction to both parties. The feeling is very strong in London ; you have only to ask the Agent-General and get him to ask his brokers what they think the effect of such a thing would be. It may not seem a very big thing, but it would materially affect for the time being, and probably for a considerable period, the present credit of the colony and cause a strong opposition to any new loans. New Zealand credit has improved this last two or three years very much indeed; you can see that from the Inscribed Stock quotations. 292. Hon. Mr. Sedclon.] How is that?— Whether it is due to the frozen-mutton trade or other causes Ido not know ; but that it has improved, there can be no doubt. And anything happening like a refusal to treat the company fairly, would have a serious effect on the credit of the colony. There can be no doubt about that. 293. Mr. Guinness. ] What number of men would you estimate during the three years and a half would be in employment if worked is pushed rapidly ahead ?—The intention is to let the whole of the works from end to end—to have the whole thing going at once. I should think we should have 1,500 or- 2,000 men on, or probably more. 294. Hon. Mr. Seddon.i Ac all events, Mr. Wilson, you will require an extension of time? — Yes, we ask for an extension. We say nominally five years; but I must show we have ample margin for contingencies, so I ask for five years ; but we should endeavour to finish the work off in three years and a half. 295. Is the colony to understand, unless these terms are met, as to financing and extension of time, that you could not do the work ? —lt would be hopeless, unless we get a modification of our existing contract, including the extension of time. Ido not think there is the slightest hope of our being able to finance on the present contract basis. 296. And without financing the works cannot continue ?—No ; we must have money to carry on work. 297. Mr. Wright.] I want to ask a question, Mr. Wilson, in respect to your statement that you would probably complete the line between Springfield and Jackson's in three years and a half. Will you inform the Committee as to the position of the surveys ? —They are all completed; both the surveys and the quantities are all ready. I could advertise my contracts to-morrow if I had the money. 298. So you are quite ready to put the work in hand at any number of points ?—I could let the whole of the works from east to west. I could advertise them in a week from now. All my plans are ready. 299. Hon. Sir J. Hall.] The bridge plans, and everything?— Yes, they are all ready, excepting some details. 300. Mr. Wright.] You have surveyed and re-surveyed the road called Arthur's Pass ?—My surveys are now complete. There are chain surveys from the point at Springfield to the point at Jackson's. I have complete chain surveys all through. I have carefully altered and adjusted the line to obtain the best possible location. 301. You have made repeated trial surveys ? —I have had parties out for eighteen months. I had the new trial lines run through the gorge, to enable me to fix on the best possible line. The Committee then adjourned.

Thuesday, 7th September, 1893. (A. E. Guinness, Esq., Chairman.) Mr. Thomas Henry Bannehb examined. 1. The Chairman.] I understand you desire to give evidence in regard to the Midland Railway contract and the company's proposals. Where do you reside ?—ln Nelson. 2. Do you occupy any official position in the local governing bodies ?—Not in the local governing bodies, but I am Secretary to the Nelson Railway League. 3. Will you make a statement ?—I wish to point out in regard to the present applications made by the Midland Railway Company, that the people of Nelson —as ascertained in various ways, by public meetings and otherwise—are firmly impressed with the view that the Government should stand to the contract as it exists at present. On the faith of that contract very many engagements were entered into by the Nelson people, and they consider, firmly, that the Government and Parliament should stand by that contract. Otherwise they feel there will be a serious breach of faith. The present proposals in effect give up the land-grant in respect to the Springfield-Jackson's Section, the country being called upon to pay cash in respect to them. I wish to point out that the land in respect to that section is not contiguous to the railway between these two points, and that, consequently, when the line is constructed, the land will not be enhanced in value. With land in such districts, divided by hills and mountains, experience has shown —at all events in Nelson—that the cost of roading and surveying leaves very little profit, or none at all, when the land is sold. We therefore consider that the amount demanded, or rather asked for, by the company of £85,000 a year for ten years, will really have to be found by the colony. The company ask the right, at the