D.—s.

20

transaction, but the reverse ; for, while the cost of construction and plant will compare favourably with other railways in the colony, the extension of railway communication thus made will be of distinct special advantage in securing to the colony the large expenditure which will flow from the influx of health- and pleasure-seekers to the Hot Lake Districts, besides promoting generally the welfare of the colony, by opening up the country and extending settlement. The directors are desirous of completing their negotiation with the Government as early as possible, and they trust that you will, in view of all the circumstances, find it convenient to accede to their desire that no preventable delay may occur. The information required by you, as stated in your memorandum, is supplied in the report of the company's engineers, enclosed herewith. The directors respectfully invite your particular attention to the observations therein, dealing with the exceptionally low cost of the company's works and plant. The original contracts and accompanying plans, &c, are forwarded to you by this mail, under a separate cover. I have, &c, J. Logan Campbell, The Hon. the Minister for Public Works, Chairman, Thames Valley and Rotorua Wellington. Railway Company (Limited).

3. Messrs. Stewart and Hunteb, C.E.s, to the Chairman, Thames Valley and Eotorua Railway Company. Sic, — Auckland, Ist December, 1884. Referring to the memorandum received from the Hon. the Minister for Public Works requesting that certain information relating to the Thames Valley and Rotorua Railway might be supplied to the Government, we have the honour to report as follows : — 1. General plan, showing the position of the railway, is already in possession of the Government, having been transmitted on or before the 20th March, 1883. (See Gazette 22nd February.) 2. The general plan above mentioned shows the intended positions of the stations; and the ground plan proper, or copy of the working plan, is also in possession of the Government, having been given to the Hon. the Minister for Public Works on the 7th June, 1883, on application for approval by the Governor of the railway under the Act. As only two portions of land have yet been acquired by the company we are unable to fully answer this head, but a Schedule, A, herewith is sent to show the approximate land required for the line, stations, and ballast-pits, with claims, or terms of cession so far as are known, and estimated value of such claims. Tracings are also given showing the amount of land proposed to be taken for stations. The land surveys are still in progress, and the above are all that we are able to forward. The title will be either deed of conveyance or under the Land Transfer Act. 3. Longitudinal and cross-sections of the line are also in possession of the Government, having been sent on the 7th June, 1883. 4. Schedule B herewith shows the quantities of work actually performed in the formation contracts of the line. Formation contracts are practically finished. Included also is the number of sleepers delivered to date. No other contracts have been entered into for construction. 5. The length of main line is 41 miles 60 chains. Sidings proposed to be laid extend to 2f miles. 6. The number of points and crossings in hand is sixty, of which twenty are 1 in 9, and forty 1 in 1\ crossings. 7. No buildings or other works enumerated under this head have been erected. 8. Herewith are originals of two contracts —namely, Oxford contract and Lichfield contract, covering the formation of the whole line, excepting some items, principally of drainage, which are intended to be included in the future platelaying contract. Accompanying are statements of additions and reductions effected in carrying out these contracts. 9. The rails are steel, 531b. per yard. Fastenings and improved bed-plates are in accordance with Public Works Department standards. The quantity in hand amounts to about 46J miles in all. The prices, f.0.b., London, are given in Schedule C herewith. 10. The sleepers are heart of kauri 7ft. by 7in. by Sin 11. Herewith is original contract for supply of sleepers to be delivered at Morrinsville at the rate of 3s. sd. each. This contract is being rapidly executed. 12. List of rolling-stock, giving character and class, is given in Schedule D herewith, which also gives prices, f.0.b., London. 13. List of miscellaneous articles herewith per Schedule B. 14. Original estimate, prepared by us in detail, is in possession of the Government, having been sent on the 7th June, 1883, on application for approval of line under the Act. 15. A statement of the actual past, and estimated future, cost of construction of the line, exclusive of interest on capital, is given herewith in Schedules F and G. The scale of station accommodation intended is similar to that with which the Government lines are opened; and the water supply at Matamata, Oxford, and Lichfield is intended to be of a superior class. 16. A statement of interest paid or due on capital subscribed or expended, estimated to time of opening of railway, is contained in the abstract of total cost herewith. 17. The amount of capital subscribed is 120,225 shares of £1 each—£l2o,22s. 18. The amount of capital actually paid up is £55,224 ss. 19. The number of shareholders is 159. 20. The number of ratepayers at the time of gazetting railway district, since which no further information has been received, is eighty-nine. The rate is an acreage one. 21. No mortgages exist on any part of the company's property. In forwarding the above information we think the directors should call the attention of the yernment to the exceptional position of this railway, inasmuch as it is unfinished, and in con-