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laid with rails and sleepers by the Public Works Department between the date of seizure (25th May, 1895) and February, 1899. Springfield to Patterson's Creek. As testified to by Mr. James Burnett, Inspecting Engineer for the New Zealand Government Railways, the line was in very fair order as far as Otarama, the extent to which the permanent-way was laid. The sleepers were of birch, and had then a life of about eight years. The line had previously been maintained for the company by the Government—viz., from 1892 to 1895. The buildings were in good condition. The company had no rollingstock upon the line. We estimate depreciation of buildings and fences at this date at £392. 4. " The condition of the said permanent-way, rolling-stock, and buildings at the date when the said lines of railway became legally vested in Us." Answer. Stillwater to Reefton and Brunnerton to Jackson's. The rails were in good order; birch sleepers and birch bridges were rapidly decaying ; ballasting was in arrear. During the period of seizure, we are informed, instructions were issued to keep working-expenses down, and consequently the upkeep has not been on as liberal a basis as prevails on Government lines. To resleeper and reballast the line a large sum will be required, estimated at £9,344 (see Exhibit No. 19). The buildings were, allowing for fair wear-and-tear, in good order. The rolling-stock was in fair order (see Exhibit No. 18). For depreciation of rolling-stock value see Exhibit No. 140. For rollingstock built and placed on line subsequent to seizure see Exhibit No. 14. The fencing and buildings at this date had, we estimate, depreciated from original cost by the sum of £8,492, and the rolling-stock by £10,160. Belgrove to Norris's Gully. The line was in fair order, but required more ballast. The buildings were in good order, and the rolling-stock—ten four-wheeled high-sides and two covered goods-wagons (Exhibit No. 14) —was in fair working condition, being practically new, having been constructed since the date of seizure. The fencing and buildings at this date had depreciated from original value, we estimate, by a sum of £503 10s. Springfield to Patterson's Creek. This line was in very fair condition. The sleepers are birch, and as such are not of long life. The buildings were in good order. There is no rolling-stock on this line. We estimate the depreciation of buildings and fences at this date at £759 from original cost. 5. " The annual gross earnings of the lines of railway from Springfield to Patterson's Creek, from Stillwater to Reefton, and from Brunnerton to Jackson's, during the period ending with the date when the same were taken possession of by the Governor of our said colony on our behalf." Answer. Springfield to Patterson's Creek. & s. d. (Exhibit No. 113.) Year ending 30th June, 1893 ... 13 0 11 1894 ... 83 14 0 „ Ist July to 27th April, 1895 ... 48 8 11 The above represents 40 per cent, of the gross earnings, the balance of 60 per cent, being retained by the Government to cover transportation expenses, which service was performed by the Government Railways Department. The company was responsible for maintaining the line—viz., the track —at its own cost. Stillwater to Reef ion and Brunnerton to Jackson's. & s. d. (Exhibit No. 111.) Ist August, 1889, to 30th June, 1890 4,069 10 0 Ist July, 1890, to „ 1891 9,144 2 1 1891, to „ 1892 12,948 18 1 1892, to „ 1893 12,752 0 5 1893, to „ 1894 15,051 12 9 „ „ 1894, to 25th May, 1895 13,475 11 2

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