E.—3

XIV

Shag Point. We see no reason why the Government should purchase this line, and we consider that the rates of haulage should he raised to a point covering the cost of working it. Otag-o Central. We are of opinion that the circumstances and requirements of the colony do not warrant the construction of this costly line of railway, for which the engineer's estimate is £1,100,000. But a very small proportion of the land through which the route has heen surveyed is at all fit for agricultural purposes, and the population spread over the district is far too limited to afford encouragement for an expenditure so large as that proposed for this line. The works through the Taieri Gorge, a distance of over thirty miles, are of a very difficult and expensive nature, consisting to a great extent of a succession of curves through rock-cutting; and, as there is no access from the country on either side this portion of the line must remain totally unproductive. When the necessity arises for a railway to tap that part of the interior of Otago which comprises the Maniototo Plains, the Ida Valley, the Dunstan District, and the Upper Clutha, careful surveys should he made with a view to find a cheaper and shorter route, and one which would pass through a smaller extent of unprofitable country. From the evidence brought before us upon this subject, we think special attention should be given to the survey of the country between Livingstone and Naseby, as a line by this route would shorten the communication between the interior and a port of shipment by many miles. We desire to express our regret that so much money has already been spent between Hindon and Mosgiel, as from our examination of the line we can come to no other conclusion than that it would be for the best interests of the colony to abandon it. The entire undertaking is, in our opinion, uncalled for, and should not have been commenced. Lawrence to Tapanui. This line would pass through a difficult country, destitute of population, and there is nothing to lead us to believe that railway communication will be required for many years. Waipahi to Kelso. This line, commonly known as the Tapanui line, is under construction. It will serve a good country, and should, we think, be completed without delay. Kelso to Switzers. We think it would be desirable to make a portion of this line—namely, about four miles from Kelso towards Switzers —as it would pass through good agricultural country, and would to some extent give increased value to Crown lands. This extension would make the total length of the Waipahi-Kelso branch about twenty miles, and would add little to its working expenses. We do not recommend any farther extension towards Switzers at present. Kelso to Waikaka. We cannot recommend the construction of this line, as Waikaka is situated within about eight miles from the Waimea District Railway, and ten or twelve miles from the main trunk line. Lawrence to Roxburgh. The unprofitable results hitherto obtained from the branch from Clarksville to Lawrence, and the broken character of the country beyond, form the grounds on which we decline to recommend the proposed extension. Balcltjtha to Catlin's River. The limited amount of existing settlement in the district, the fact that the land which it would serve is chiefly bush, and the expense consequent upon the