B,—No. 3a.

B. Approximate Assets on 31st January, 1865.

Railway System and Accounts. In addition to the sum due by the Proviucial Government of £29,676 11s. 6d. on account of the Retention money, and payments to be made for works already completed, there appears to be required to complete the Railways, the following sums, viz. ; Bluif and Inyercargill Railway (11) about £12,721 7 0 Oreti Railway (11) 23,317 3, 3 £36,071 10 3 Independently of a probable claim for compensation of £5,000 0 0 In order to explain the Railway .System of Southland, it may be said that the two Railways above referred to, form one continuous lino, commencing at the Bluff Harbor and extending through Invercargill towards the Lake Gold Fields, in the Province of Otago ; being about is or 20 miles on each side of the Town. The Bluff and Invereargill line is constructed on the usual double headed Iron Rail system, of which the half, commencing at die Bluff, is finished ; and the remaining half in different states of progress. The Oreti line is constructed after Davies' patent, with wooden rails, capable, if desired, of being used by the carriages of the Bluff line, through the application of iron plates to the present wooden rails, at an additional expense of about £13,000. (11) About one half of this line commencing at Invercargill is also finished, and considerable progress is made in the remaining half. There is a branch of the Bluff line diverging to the New River at Mokomoko, where an expensive pier has been erected at the cost of £23,735 ss. 7d. (13). This loop line, which strikes the Bluff line at a distance of about 11 miles from Canipbelltown, is partly formed. The Bluff line has cost considerably more than was originally estimated, owing chiefly to the Railway embankments, when crossing estuaries, being protected from the action of the sea by a double revetment of planking —it being designed at some future time to fill in the interval with ballasting. The Oreti line though only designed to last but a short time, will scarcely realize the expectations of its originators, as there is reasonable doubt whether the material used will bear heavy trauie, and it is said that a large quantity of the material laid along the line for the construction of the remainder, being chiefly composed of white pine, has warped and scaled, and may be regarded as unfit for use. The embankments on both lines, being composed of loose material, would appear likely to call ior considerable repairs at some future time. The carriages on the Bluff line are standing exposed to all the changes of weather, and are likely to become seriously injured from this exposure ; the carriages of the Oreti line are in the RailwayStation shed. It may not be unnecessary to mention that there runs, parallel with the Bluff and Invercargill line, at a varying distance of from 20 to 300 yards, a gravel main road, following the natural surface of the country; but which, from the nature of the material used, and the low lying character of the land, (though made at an expense of above £3000 a mile), is not likely to be of much benefit in bad weather, as it has to be supported in many places by fascines of scrub. Should Government design taking any steps towards aiding in the completion of one, or both of these lines, or taking them as collateral security for any pecuniary liability which it may incur in connection with them, it is highly desirable that every part of the work completed, the material provided for completion, and the terms and conditions of existing contracts should undergo a careful scrutiny by an Officer specially appointed for the purpose, before any legislative or administrative action is taken. It would also be expedient to ascertain through a Marine Engineer, which of the two harbors, the Bluff or the New River, is best adapted for communicating with Invercargill. There are conflicting opinions on this subject; and grave doubts have been thrown out as to the wisdom of having constructed the Mokomoko pier. It may be a question whether, at the present time, with a trade of an insignificant character, it would be expedient

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PAPERS RELATIVE TO THE

Amount. Total. Jnauthorised expenditure for which future provision will be made... ... ... ... ... j Amount in hand of the London Agent on 30th June, 18G4 joan to Town Board immigrants Bills overdue ... 10,598 13 0 7,494 1 10 9,138 10 8 7,634 0 0 34,865 8 (> £34,805 8 6 No notice is taken of llailway and rolling Stock nor of the Provincial landed estate.