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Copy of Mr. H. M. Williams's Estimate for Kaihu Valley Railway. Grading. —Wharf, station - ground, earthwork, bush-felling, level crossings, fencing, &c. ... ... ... ... ... ... £29,494 1 & Permanent-way. —Ballast and sleepers on 19£ miles and 1£ miles of sidings ... 17,269 0 0 Buildings. —Stationmasters' houses, engine-sheds,.goods-sheds, stations, platforms, coal-sheds, carriage-sheds, water-supply, smithy, crane, turn-table, weighing-machine, and tools ... ... ... ... 5,354 0 0 Bails and Fastenings. — 531b. steel ... ... ... ... ... ... 16,800 0 0 Points and crossings ... ... ... ... ... 480 0 0 Surveys and management ... ... ... ... ... 4,500 0 0 Boiling-stock. — 3 locomotives ... ... ... ... £4,500 0 0 2 first-class carriages ... ... ... 600 0 0 3 second-class carriages ... ... ... 800 0 0 1 composite smoking carriage ... ... 250 0 0 2 second-class smoking carriages ... ... 220 0 0 60 timber-trucks ... ... ... 4,800 0 0 16 low-side wagons ... ... ... 1,280 0 0 6 high-side goods-wagons ... ... ... 480 0 0 2 goods-trucks ... ... ... ... 184 0 0 2 covered goods-trucks ... ... ... 184 0 0 2 cattle-trucks ... ... ... ... 160 0 0 Tarpaulins ... ... ... ... 300 0 0 13,758 0 Q £87,655 1 6 No. 9 of printed correspondence D.-sc, memorandum from Chairman of railway: He gives my estimate at £59,000, which is asserted to be incorrect, and says Mr. Williams's estimate, after survey, is £87,000. Mr. Williams's estimate was not made after survey; it was made before July, 1883, and although three years have elapsed, and £10,649 have been spent in wharf extension, &c, the surveys are not finished yet. Mr. Knorpp, in March, 1885, as stated in his report (No. 8, D.-sc), was unable to get sufficient information to enable him to go into earthwork quantities. In No. 10 of printed correspondence, D.-sc, I see you have been led to conclude that I have made an incorrect estimate. I would submit that this is not the case. A good line for timber trade could have been made for the £60,000 if the directors had laid it and the money out economically. 531b. steel rails, wharf extensions, and the largely excessive amount of rolling-stock they proposed to purchase for the 19-J miles, was not the way to do this. Herewith also I enclose you a copy of revision of my original estimate that Mr. Dargaville asked for (see his telegram) in June, 1883. In fairness to myself I trust that you will see your way to lay this communication with it enclosures upon the table of the House, in continuation of the paper D.-sc, which, without th fuller information herein contained, does not fairly represent my position in this matter, and th instructions upon which my estimate was framed. I have, &c, The Hon. the Minister for Public Works. James E. Fulton.

Authority : Gjsobge Didsbuby, Government Printer, Wellington.—lBBs.