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thirds will be absorbed by working-expenses. Based upon these conclusions, the Commissioners find the selling-value of the line to be £192,833, which, in their opinion, is all that could be realised under the conditions set forth in this paragraph. 9. " The value of the said portions of railway from Belgrove to Norris's Gully and from Springfield to Patterson's Creek, estimated in the same manner, but having regard to the fact that they were constructed as continuations of, and are continuations of, lines of railway then existing, and also having regard to the fact that the expense of their construction was borne partly by the company and partly by the Government of our said colony." Answer. Belgrove to Norris's Gully. This line, as will be seen from the traffic and expenditure returns (Exhibit No. 2), does not nearly earn the very moderate working-expenses incurred ; and, even if the traffic were to increase by 5 per cent, per annum, it would take many years before the working-expenses were recouped. We are of opinion that the section of railway from Belgrove to Norris's Gully, if put up for sale subject to the conditions imposed by " The Railways Construction and Land Act, 1881," would not find a purchaser. We therefore find that, in terms of our Commission, it has no selling-value. Springfield to Patterson's Creek. On the basis as submitted to us in our Commission, this line has no commercial value whatever. Any one owning the line subject to the conditions imposed by "The Railways Construction and Land Act, 1881," would have to spend a great deal more in workingexpenses than the line can possibly bring in ; consequently the line, under the conditions set forth, has no selling-value. 10. " The total sum realised by the company and the said Receiver as the proceeds of the sale of lands granted by Us to the company pursuant to sections 7 and 8 of ' The East and West Coast (Middle Island) and Nelson Railway and Railways Construction Act, 1884/ and the present value of such of the said lands granted by Us as have not yet been sold by the said company or the said Receiver, and the value of the lands provided by Us and upon which the railway is constructed." Answer. £ s. d. (Exhibit No. 1.) Total sum realised from sale of land* ... 312,505 0 0 (Exhibit No. 109.) Cash given by Crown in lieu of land ... 5,000 0 0 (Exhibit No. 1, and evidence, page 16.) Westport sections unsold ... ... ... ... ... 640 10 0 (Exhibit No. 1, and evidence, page 68.) Cobden sections unsold 626 5 0 ( „ ~ „ 70.) Ahaura sections unsold 575 7 6 ( „ „ „ 101-102.) Canterbury lands unsold ... ... ... ... ... 7,208 15 11 £326,555 18 5 (Exhibit No. 62.) Value of land provided by Crown for Springfield line ... ... ... ... ... 32 15 8 (Page 10, evidence.) Value of land provided by Crown for Belgrove line ... ... ... ... ... 30 8 9 (Exhibits Nos. 30 and 16, and page 66, evidence.) Value of land provided by Crown for Reefton line ... ... 1,316 7 6 Land-claims still unpaid by company ... ... ... 750 0 0 Total ... ... ... ... £328,685 10 4 Deduct cost of land-administration by company ... ... 15,625 5 0 £313,060 5 4

* Tirid amount should be reduced by the cost of administration and land-grant expenses. Exhibit No. 163 givea details of this expenditure, but as the Commissioners consider that several of the items should not be included they have allowed 5 per cent. (£15,625 55.) on the gross receipts of £312,505 as an adequate charge for the disposal of the land.

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