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ROLLING-STOCK, The rolling-stock is well maintained, and generally is suitable for the traffic. It should be borne in mind that for vorking the curves of small radius nothing but bogie stock should be used. The wheel base of " A " class engines (5 ft. 1\ in.) is too long for curves of 100 ft. radius, and it would be hotter to limit the wheel base to something like 4 ft. 6 in. The Heisler engine seems a good type for the purpose, but has the drawback of being rather too slow for a passenger service. Four engines are in use for working the traffic between Mokai and Putaruru, two of the Heisler and two of the New Zealand Railways class " A " type. There are two composite vans to carry passengers and goods, and twenty-eight " U" wagons for timber traffic. BUILDINGS AND MACHINERY. The shed at Mokai stables two engines. The machinery consists of a wheel lathe and wheel press in the running-shed. In the machine shop there are two lathes, one shaping-machine, one drill, emery grinders, and small tools. These are driven by the mill engine and electric motors. In the blacksmith's shop are three forges and an annealing-furnace. There is sufficient machinery in thoroughly good order to enable all reasonable repairs to rolling-stock to be carried out on the company's works. The value of the rolling-stock, machinery, and buildings has been written down in the company's books, an allowance for depreciation having been. made. WATER-SUPPLIES. Provision for watering engines has been made along the route at nine stations besides the termini, and with the exception of during specially dry seasons the supply is ample. To get over the shortage in very dry weather it is proposed to make some additions at two or three of the stations. STOPPING-PLACES. There are ten recognized stopping-places other than the termini. RECOMMENDATIONS AND SUGGESTIONS. Taking the whole line throughout, the track is well maintained, and, with the exception of the sharper curves, which will regulate the speeds, is quite fitted for twenty miles an hour, which is fixed by the Order in Council. It is possible that, should the company apply for a license to carry passengers, a slightly higher standard of maintenance might be looked for, and it would be necessary to consider a daily inspection, instead of an intermittent one as at present. Another surfaceman, or, at the outside, two men, would be all that would be wanted. Now the inspection is made only in rough weather, and when damage to the track may be anticipated. The Order in Council does not seem to demand any standard of efficiency as regards the permanent-way even should passengers be carried on the line. The facing-points at sidings, where wagons may be left standing, will need to be locked, and stopblocks provided to prevent wagons fouling main line. On many of the curves the cant is excessive and should be reduced. It is only necessary to provide cant for the maximum speed to be run : this need not exceed 1 in. on the sharpest curves. Excessive cant, especially when irregularly distributed, is a frequent cause of derailment. On the sharp curves slack to the extent of J in. should be allowed. Guard or check rails should be maintained where already existing, and should be provided on all curves of 3 chains radius and under. All engines should be fitted with gear for watering rails. This should be kept in good order, and always used on curves, as both wheels and rails reap the advantage of such lubrication. The original specification provides that the sharp curves should be so laid that they could be easily improved. It is eviderft that this has been done in some cases, but, without an inspection of the plans and sections of the- line as completed, it cannot be said that the condition exists throughout. I propose, when I can make an examination of the drawings, to send a further report on this point. The permissible speeds around the curves might vary from eight miles an hour on the sharpest — 100 ft. radius —to" twenty miles an hour on the flattest—Boo to 1,000 ft. radius. With fair maintenance these speeds would be well within the limit of safety. I am opinion that had the banks been originally constructed to the full width of 10 ft., with \\ slopes, they could not have weathered to their present width, and it will be necessary to widen them before applying for a license to carry passengers. The work is not a heavy one, and I think the whole of the banks could be made 8 ft. wide at formation-level for an expenditure of from £300 to £400. I am of opinion that, for safe working, it is unnecessary to make them more than 8 ft. wide, although a wider bank makes it easier for maintenance. On the New Zealand railways the standard bank was originally made 10 ft. wide, they were subsequently widened to 12 ft., and the present standard width is 14 ft., and it was for the reason given above that the existing width was adopted, not on the grounds of safety. I recommend that the upper surfaces of the arches of the Waikato River Bridge be tarred and well sanded. If properly done and maintained, it will add to the life of the structure, and minimize the danger of fire from engine-sparks. Should it be decided to apply for license to carry passengers, shelter and accommodation may be asked for at some of the stopping-places. The cost of this need not be large : I estimate that £25 to £30 would be sufficient for each place.