I.—la.

14

[h. j. h. blow.

Besides the probable coal traffic, there would be, as an additional source of revenue, all the ordinary traffic which would arise from the settling at Ohai of the large number of miners and their families, together with the additional population which is required to supply the wants of the primary producers. There would also be the output of dairy-produce from the Birchwood Dairy Factory, and all the wool and fat sheep which would be derived from flocks of at least thirty thousand sheep, all of which would be trucked at Ohai, were the railway to reach that place. The Wairaki Settlement, an old-established community, who in the past have carried out cropping (notably potatoes) with success, but have of late years been forced to abandon this by the almost utter impassability of the road, would no doubt resume the more agricultural and less pastoral mode of farming. Further, the advancement of the railway to Ohai would probably lead to further subdivision of both the Birchwood and the Mount Lynton estates. To serve the country, both agricultural and mining, of which Ohai would be to some extent the centre, the proposed line shown by the black and white line on the map herewith would be a very suitable route. It would be a very difficult matter to extend the Nightcaps line to take in this coiintrv. owing to the fact that it has run up a ridge all the way from Wairio, from which ridge it would require to again grade down and then rise again steeply in order to reach Ohai. Also, the grading would probably carry the line over the worked-out coal area, which is undesirable if it can be avoided. The Wairio Birchwood tramway of Messrs. More Bros, could be extended to approximately the same point ; but it would not be so suitable, neither the grades nor the alignment being as favourable. Then , would be two grades, I in 50 and 1 in 40 approximately, both against the traffic ; whereas on the black and white line, as at present surveyed, the steepest grade would be 1 in 60.