B. W. HOLMES.

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3. Hon. Mr. Fraser.] Was that report made since last year, or xvas it the one vou put in last year?—l did not put one in last year. It is dated the 4th May, 1912, and is as folloxvs :— The Hon.. Minister of Public Works, Wellington. Sir, — Taupo Railway. I have the honour to inform you that, pursuant to instructions, I have examined the country over which the various proposed routes xvould pass to connect Taupo xvith the existing railxvay system, xvith the object of reporting upon the relative merits of each route, and noxv begto do so as folloxvs :— The country around Rotorua, thence to Taupo and back across to Putaruru, is, on the xvhole, inferior, from xvhich a heavy farming traffic can never be expected. There are several areas of limited extent of native forest, xvhich xvill provide a traffic of only a temporary nature, as the native forest is practically non-regenerative. The Prisons and Forestry Departments are planting with suitable forest-trees large areas between Rotorua, Waiotapu, and the Kaingaroa Plains, xvhich will afford with reafforestation a perpetual source of revenue to a. railway. At Rotorua, Waiotapu, Tarawera, Wairakei, and Taupo are thermal districts, of which Rotorua attracts by far the largest number of visitors oxving to its facility of access by existing railxvay communication. There is no doubt but that a great many more of the Rotorua visitors would proceed on to Waiotapu and Taupo if they could do so in less time, at less expense, and more conveniently than is possible at present. It is on the excursionist as distinguished from the tourist that a railway to Taupo must depend for a considerable part, of its revenue, and it is this traffic that will probably decide xvhether a line can be worked at a profit or loss. Considerable importance must therefore be giveu to this traffic in deciding upon the best route to adopt. It is probable that the sources of traffic xvill relatively range as folloxvs: (1) Passengers; (2) timber ; (3) farm-produce. The passenger traffic xvill always be a constant source of revenue, increasing as time goes on. The native-timber traffic xvill only be temporary, but the forests being planted xvill yield a constant traffic. The farm-produce traffic will depend entirely upon xx-hether or not it is possible to successfully cultivate the volcanic lands throughout the xvhole district. As it has been already demonstrated that introduced forest-trees groxv xvell, it remains to be demonstrated xx-hether forestry or farming xvill be the more remunerative; on this will depend their relative values as sources of railway traffic. It appears that only such parts of this country as can be cultivated will ever be susceptible to sufficient improvement to enable farming to be carried on; the remainder, consisting of the parts which are too rough or absolutely too poor io cultivate, can be remuneratively dealt xvith by afforestation ; and, as such areas exist along all possible routes for a railway, there is no doubt but that in course of time, when a perpetual timber industry is established, more than one railxvay xvill be required. The practicable routes are shown approximately on the accompanying map, marked P.W.D. 31678, and are briefly described thus: (1) Putaruru to Taupo via Oruanui; (2) Putaruru to Taupo via Atiamuri; (3) Rotorua to Taupo via Orakeikorako; (4) Rotorua to Taupo via Waiotapu. 1. Putaruru to Taupo via Oruanui. Over a considerable part of this route the Taupo Totara Timber Company's private line is workino- —viz., to the peg. This line was primarily constructed for the conveyance of timber from the company's sawmill at Mokai to the Government railxvay at Putaruru, and not for passengers, consequently the class of construction xvas cheapened as much as possible. From Putaruru to Lichfield the line was constructed by the General Government, but abandoned xvhen the Rotorua Railxvay was constructed. The formation is noxv occupied by the company's private railxvay, the distance being about 5 miles. The route then folloxx-s the private line to the 464-miles peg,*xvhere it diverges to Oruanui, thence passing through Wairakei to Taupo. From Lichfield to Kopoko, at 23 miles, the private railway can be easily and cheaply improved to Government railway standard, but thence to 46 miles the greater part xvould require entirely reconstruction on improved location. From 464- miles to Taupo at 67 miles, a distance of 20| miles, a survey of a line has been made by the Taupo Totara Timber Company along a practicable route xvith a minimum radius curvature of 5 chains, and maximum grades, 1 in 38 and 40 on straights. Both the curves and grades are worse than the Government standards —viz., 7£ chains and lin 50; there is nothing, however, in the configuration of the country preventing the adoption of the better location, at the cost] however, of greater length, but not necessarily much increase in cost per mile. The Taupo Totara Timber Company's line has curves of a minimum radius of H chains, and maximum grades of 1 in 47. The xvidth'of formation is about 13 ft.; the sides of the cuttings are generally nearly vertical, which is the best form in pumice ground. The rails weigh 301b. per yard; the o-auge is 3 ft. 6 in., Government standard. The line is ballasted xvith pumice, and on this account the sleepers are placed closer together than is usual on Government standard construction, where heavier rails and superior ballast are used. The light rails and sharp curves xvould prevent Government locomotives travelling on this line, while the steep grades and sharp curves xvould prevent any but a very slow train service being run. For dealing xvith the traffic at present arising from the class of country between Putaruru and Taupo the company's line is no doubt suitable, but as a through passenger line to Taupo it is not suitable; and it can be taken for granted that, if it were adopted as part of the Govern-

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