pi.—2

LIV

Resolved, on the motion of Mr. Graham, in connection with the same paragraph, That the words " believe that a purchaser might possibly be found to give £190,000 for the property " —be struck out, and the following substituted in lieu thereof: "find the selling-value of the line to be £192,833." The Chairman moved, in connection with question 9 (Belgrove to Norris's Gully), That the paragraph—" This line, as will be j3een 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 Eailways Construction and Land Act, 1881,' would not find a purchaser. We therefore find that, in terms of our Commission, it has no selling-value " —be struck out, and that the following words be substituted in lieu thereof: " This line has not been opened for traffic sufficiently long to give reliable revenue returns for any definite data as to its selling-value based on its present earnings, but, having in view the fact that the country served by this section has been closed to settlement for about fifteen years and is now available for occupation, we are of opinion that the prospective selling-value of this section is £15,000." And the question being put, the Commission divided, and the names were taken down as follow:— Aye, I.—Mr. McKenzie. Noes, 4.—Mr. Fraser, Mr. Graham, Mr. Hudson, Mr. McKerrow. So it passed in the negative. Resolved, on the motion of Mr. Eraser, in connection with question 10, That the words " Add moiety of cost of surveys by Government, £5,183 4s. 1d.," and the words " at the same time the expenditure of the Government (£10,366 Bs. 2d.) on account of the Government surveys on the land selected by the company, less the moiety paid by the company according to contract, should be added," be struck out. Resolved, on the motion of Mr. Fraser, in connection with question 12, That the following paragraph be added to the report: " The Commissioners desire to point out that the investigation of railway profits has shown the fact that the net balance of railway traffic receipts over expenditure is really £19,697 7s. lid., and not £12,366 4s. 2d. as shown in Exhibits Nos. 2 and 153, as during the period of seizure profits were used to provide additional rolling-stock and protective works properly chargeable to capital." Resolved, on the motion of the Chairman, in connection with the same question, That the words " and to which course the counsel for the petitioners has agreed " be struck out. Resolved, on the motion of Mr. Fraser, in connection with the same question, that the words " in the event of the Crown waiving its rights under ' The Railways Construction and Land Act, 1881,' and its ordinary right of priority " be struck out. Resolved, on the motion of the Chairman, in connection with the same question, That the two sums apportioned to the debenture-holders and company be allocated to the debenture-holders, the apportionment to the company being nil. Resolved, on the motion of Mr. Hudson, That the following paragraph be added to the report : "We desire to draw attention to Exhibit No. 139 (Statement of Stores and Material taken over with Midland Railway on 25th May, 1895). The value of these stores has been estimated at £1,747 45., of which stores to the value of £1,200 have, since the date of seizure, been used in the up-keep of this line (vide evidence, page 151, question 598), leaving a balance of stores unused to the value of £547 4s. We desire also to draw attention to Exhibit No. 108 (Pneumatic plant, £509 13s. 6d.), which is now in the custody of the Crown at Stillwater. These two items together amount to £1,056 17s. 6d." Resolved, on the motion of the Chairman, That the report as amended be agreed to. At 3.45 p.m. the Commission adjourned till 4 p.m. on Friday, 21st June, 1901. The Commission resumed the consideration of the report at 4 p.m. on Friday, the 21st June, 1901, when all the Commissioners were present. The report as amended, having been read by the secretary, was then signed. The Commission considered the printed proof of Exhibit No. 176, and the secretary was instructed, on the motion of the Chairman, to authorise the Government Printer to proceed with the printing of this return. Resolved, on the motion of the Chairman, That the index as prepared by the Secretary be printed, and attached to the proceedings of the Commission. The foregoing minutes were then read and confirmed.