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18. Do you think the agreement is still to the advantage of the Company? —It has that advantage to the Company, that they are not obliged to run stock of their own to get their coals away; but there is also some advantage to the Government—not much, but some advantage in getting the line there. 19. Does it pay working expenses?— Taking the line as a whole it does. 2 Not only directly but indirectly, in consequence of the traffic given to the Government lines?— I should say it does; and it is also an advantage to the district, a public advantage. 2 I. Does it pay more than working expenses ; say ,4 per cent on its cost?—No; I do not think so ; perhaps the fairest way would be to get out the expenses and receipts of the branch line, and then we could see what proportion is due to this piece. 22. Mr. Cowan.] I understand that the line costs £7224; do you think that 4 per cent, on that sum could be obtained by the Government from the traffic on the line?— That would be £288; I certainly think it is worth that to the Government; as far as I can see now I should say it is worth £300 to the Government. 23. You think a purchase at that figure would be a judicious one?—l do not say that it would be judicious, as we get the use of the line at present for nothing; whether it would be equitable or not is another question. 24. The Company are anxious to get rid of the line at that price? —It is a matter entirely for equitable consideration. Ido not think the Company has any rights; they are completely in the Governments hands; therefore it is entirely a question of equity, 25. You have said that that district is not dependent on that Company for its supply of coal ; you are aware that there is only one other coal pit in the whole of Southland which is available for supply?— No; the Kaitangata Company also sends its coal to all parts of that district. 26. But it is a very long distance from Kaitangata to Invercargill; it cannot compete with the Nightcaps coal? —I think it does; but I mentioned that the fact of having coal from Nightcaps was no special advantage to the railways, as, if we did not carry it from there, we should from some other point on the railway. 27. What is the excess of distance between Kaitangata and Nightcaps, as regards Invercargill?— About 45 miles. I cannot speak of the present decidely, but up to a few months ago, I know Kaitangata did send coal to Invercargill. 28. Does Kaitangata compete with Nightcaps in supplying coal for the locomotives?— Yes; they are both contractors for the supply. 29. For the Invercargill district?—No; Invercargill is supplied by the Nightcaps Company, and the other Company takes the Dunedin district 30. Is it not a fact that the additional haulage rate on this line enables the Kaitangata Company to compete with this Company ?—No; they have both similar rates —there are special rates from all the brown coal mines in the south to the principle centres, and they are all on the same basis. 31. Is the price of supply any different?—Kaitangata is 9s. 3d. and Nightcaps is 9s. per ton. 32. Have you any knowledge of the likelyhood of the supply continuing in the Nightcaps mine ?— None. 33. It is stated in the correspondence that large quantities of wool are carried over this line ?—I cannot tell you the quantity, but will furnish the Committee with full particulars of the goods carried. 34. Dr. Newman/] This line has been worked by the Government for the past five years —do you see any advantage to the Colony in their baying the line now ?—No; I do not see any advantage to be gained. 35. Is there any advantage to counterbalance the loss of interest on the purchase money ?—No ; I do not think so; as I said before it is a matter of equity—the Government has found it convenient to work the line, and it is certainly to the advantage of the district that trains should go up to the Nightcaps terminus. 36. I presume that it is also an advantage to the Company ?—To some extent I should say it was, but of course I cannot speak as to that absolutely. 37. Has the coal traffic been increasing during the five years which the Government have been working the line ?—No ;I do not think it has—l think the competition of other coal in the market has kept it from increasing. 38. Four or five years ago did it carry as much as it does now ?—I should think it did, but cannot say without reference to statistics. 39. Mr Gore.] What is the length of the line ?—2 miles and 24 chains. 40. Is there any other traffic on it besides coal ?—Yes ; passengers, and wool and general merchandise —the terminal station is pretty well used by all the district. 41. And the line is of use apart from the question of carrying coal ?—Yes ; it is undoubtedly of use to the district 42. Mr. Peacock.] It seems that the grades of the line are an objection to the Government department ?—We have not found them objectionable as far as traffic is concerned at present. I think it is iv this way, thae the Public Works Department are desirous of getting the line of a uniform grade if it is extended, which is desirable. 43. We read in one of the letters " We understand that any objection you had to the purchase of this railway was owing to the steepness of the inclines on one portion of the line only," and in a subsequent part of the letter, " We would respectfully request that you would again consider the advisability of your Government purchasing the line, less the cost of making the necessary alteration in the grade?— I believe that is in connection with the extension of the line. 44. Have you a.ny idea what it would cost to alter the grades?—l do not know. 45. It is stated that 35,000 tons of coal has been carried since it was opened—is that an average amount ?—I suppose that is the amount for the whole five years. I will supply the whole figures, since we begun to work the line.