D.—2

1883. NEW ZEALAND.

MIDDLE ISLAND RAILWAY EXTENSION. REPORT OF COMMISSION APPOINTED OCTOBER 24, 1882.

Presented to both Souses of the General Assembly by Command of Sis Excellency,

To His Excellency Sir William Francis Drummond Jervois, G.0.M.G., Governor of New Zealand, &c, &c. May it please Your Excellency,— Having received the Commission directing us to make inquiry into " the " probable cost and economical value of the several lines proposed for the extension " of the main trunk line through the Middle Island, northwards from Canterbury, " and further to make inquiry whether any other line would be less costly and " more advantageous to the colony than any one of the lines herebef ore proposed," our first duty appeared to be, to gain by personal observation a general knowledge of the character and the apparent or probable resources of the country affected by the several lines mentioned. We have, accordingly, traversed as closely as practicable the route of the proposed Central line from Blenheim vid Tophouse and Tarndale to Waikari and Christchurch, and similarly have followed the course of the proposed East Coast line from Waipara by way of Cheviot, Kaikoura, and Elaxbourne, to Blenheim. We have held public sittings at Christchurch, Kaikoura, Blenheim, Nelson, and Wellington, and have taken all such evidence, oral and documentary, relative to the subject committed to us, as was obtainable at each of these places; notes of all of which, together with the original documents, are respectfully presented . herewith. We have everywhere met with frank assistance in the prosecution of our inquiries, and have received and recorded information which we hope will be found to be valuable. We would refer especially to the evidence collected at considerable expense by the Committee of gentlemen who interested themselves in the railway question on behalf of the people of the Provincial District of Nelson, and which may be regarded as having importance from a general as well as a local point of view; and to the report of Mr. C. Y. O'Connor, which deals with the present and prospective values of the various routes, in a lucid and comprehensive manner. The expression " economical value of a railway " means, we presume, its value as a work directly reproductive, or as giving promise, within a reasonable time, of returns sufficient to defray working expenses, together with some margin of profit to represent interest on cost of construction; or, indirectly, as opening large areas of lands available and fit for settlement; or as giving facility of communication with a market to a population already settled and producing, or likely soon to produce, commodities which would serve to make traffic for the line ; or as affording facilities for a large passenger traffic not otherwise provided for. If we are right in thus interpreting the terms of our Commission, it is our duty to report that we have not found any of these conditions actually existing, or