H.--22

70

rich, and is of a softer nature than the hematite; it exists in masses on the surface, and appears abundant; it is chiefly used for the manufacture of boiler-plates, fencing-wire, &c. Grubbins stone: I believe this ore to be equal to any of the same description found in Staffordshire ; it exists in masses similar to the Blue Flats ore, and appears abundant; it is chiefly used for galvanized iron, and also for the manufacture of vessels which require tin coating. The diamond ore crops up from the surface in large lumps ; the mountain on Mr. "Foote's land appears to contain a great quantity of it; it is chiefly used for the manufacture of chains, wire nails, hoop-iron, &c. These iron ores exist within the radius of a mile, as also limestone, fireclay, and water, together with clay for stock-brick in great abundance. It will be observed that Mr. Foote's property contains the whole of the ores, &c, necessary for the manufacture of steel and iron. With all due deference to the opinions of Mr. H. B. Dennison and Dr. Hector, I believe that the ores, when worked, will prove much richer than those gentlemen imagine them to be. 3, In order to work the iron ores it will be necessary to construct a blast-furnace, which must be of modern construction. This furnace, if well managed, would turn out 200 tons per wreck. The puddling-furnace, steam-hammer, forge-train, mill-train of rolls, engine and mill furnaces, &c, must all be of the latest modern construction. By observing this rule the company would effect a great saving in labour, fuel, &c. I must not omit to mention the plant necessary for the manufacture of chainiron, nails, screws, bolts, axles, buffers, and fish-plates. Chain-iron, l|-inch thickness, is worth in the Sydney market about £30 per ton, and I venture to state that it can be manufactured here at a cost of £8 10s. per ton. I estimate the amount required for working the coal mine and manufacturing iron from the ore at £10,000. This amount would include the permanent plant required for the above-mentioned purposes. The most modern way of manufacturing pig-iron from ore is by smelting it with charcoal and powdered coal, which costs a little more, but makes it more saleable for particular purposes. I have, &c, GrEOEGE PEEHT, Late Manager of the following works: Horsleyfield, Wolverhampton, Staffordshire (tin, wire, hoop, and plate works) ; Cramond's Works, Sheffield (armour-plate, gun-iron, Bessemer steel, &c.) ; White Cross Wireworks, Warrington, near Liverpool (for making wire only) ; Robert Heath, Staffordshire Potteries (for making merchant-iron and boilerplate) ; West Strand Ironworks, Preston (for making small guide-iron, large rails, &c).

No. 76. Evidence of Mr. Thomas P. Moodie, G-eneral Manager, Bay of Islands Coal Company, before Messrs. Commissioners Tinne and Burns, at the Kawakawa Coal Mine, 4th May, 1880. My name is Thomas P. Moodie. lam general manager to the Bay of Islands Coal Company ; I have been holding this position for the last eighteen months. The Company employ about 120 hands. The lowest wages paid for boys is 4s. per day; for men, 7s. per day —of eight hours. A good miner can earn, at piece-work, from 10s. to 12s. per day. We have a very orderly lot of men engaged on the works just now; they are very steady and industrious. We average 180 tons per day output; if we had more rolling-stock, a very much greater quantity could be turned out and sold, as the demand is far in excess of the supply. When the railway works now in progress are finished, much more coal can be turned out and at a much less cost to the Company. The present railway from the mine to the place where we load the barges has been constructed with very heavj 7" curves. In my opinion, many of these curves were quite unnecessary. They have added greatly to the original cost of the line, are very severe on the rolling-stock, and greatly increase the cost of maintenance, which this Company has to pay for. Very shortly, the permanent way will require to be relaid. The cost of maintenance and the want of the railway being carried to deep water have been very detrimental towards the Company's success and to the payment of a dividend to the shareholders. Very great and unnecessary delay has taken place in the survey of this line, which should have been now working instead of only being in course of construction; but I consider the survey now adopted to be the best line that could be obtained through the country it has to pass. Looking at the difficulties that this Company has had to contend against, I consider that this field has been worked to greater advantage to the public of Auckland than to the shareholders : in fact, looking at it from a shareholder's point of view, it would have been greatly to their advantage had the field been closed years ago. But, when the increased facilities for a larger and cheaper output are given to the Company, I think the shareholders will benefit by their speculation. Our only requirements are, the railway now being constructed, and some of the worst curves to be taken out of the line now working. The sooner these works are finished, the better for the colony ; as it will be the means of assisting to supply our own market, instead of importing large quantities from New South Wales. As soon as we are able to supply our own wants, then will be the time to impose a duty upon imported coal. The profits derived by middlemen from the sale of imported coal are so great as to make it worth their while to put all the opposition possible in the way of using local coal. lam well aware that better coal can be produced from the New Zealand coal fields than from any other country in the world. I have had large experience in the New South Wales and other foreign coal fields, and can therefore speak from experience as a minemanager in various countries. Thomas Pearson Moodie, General Manager, Bay of Islands Coal Company.