I.—B

6

Tuesday, 21st August, 1894. (Sub-committee.) Present: Mr. Graham, Mr. G. Hutchison, Mr. Tanner. Minutes of the previous meeting read and confirmed. A letter from the Under-Secretary, Public Works Department, dated the 21st August, 1894, enclosing copy of letter from Mr. Wilson, dated the 20th August, referring to the completion of the Belgrove Section, was read. The Committee then adjourned until the 22nd August, 1894. Minutes confirmed.

Wednesday, 22nd August, 1894. (Sub-committee.) Present: Mr. Graham, Mr. Fraser, Mr. G. Hutchison, Hon. Mr. Seddon, Mr. Tanner. The minutes of the previous meeting were read and confirmed. A letter from the Under-Secretary, Public Works Department, dated the 22nd August, 1894, giving estimate of cost to complete the line to junction of Norris Gully with Motueka Valley was read. After some discussion, Mr. Eobert Wilson was asked to attend the Committee, and, in reply to the Chairman, he stated that, with a view of arriving at a settlement as mentioned in his letter of the 20th instant, he would be prepared, as a further concession, to complete the railway to the junction of Norris Gully with Motueka Valley, and, when completed, to hand it over to the colony without receiving any further land-grant. Mr. Wilson then withdrew. The time having arrived for the meeting of the Committee, the further proceedings of the sub-committee were suspended. Minutes confirmed.

Wednesday, 22nd August, 1894. Present: Mr. Fraser, Mr. Graham, Mr. Guinness, Mr. G. Hutchison, Mr. McGowan, Hon. Mr. Mitchelson, Captain Russell, Mr. Saunders, Hon. Mr. Seddon, Hon. Sir Eobert Stout, Mr. Tanner, .Hon. Mr. Ward. The minutes of the previous meeting read and confirmed. The two letters from the Under-Secretary, Public Works Department, dated 21st and 22nd August, were read by the Clerk. Mr. G. Hutchison made a verbal statement of what had been done by the sub-committee. After some discussion, Mr. Eraser proposed, " That, whereas the company has admitted that it is unable to carry out the original contract, and whereas it further admits by its present proposals that it is unable even with the aid of the concession offered by Parliament last session to raise funds sufficient to carry out its obligation with the colony, the Committee is of opinion that it is not in the interests of the colony that any further negotiations based on substituting colonial bonds for land-grants should be entered into with the company for the completion of the Midland Eailway or any portion thereof." The Hon. Mr. Seddon moved, by way of amendment, " That the Committee recommends that the resolutions of the House of last session be adhered to, with the exception of the variation made by the Committee on the 15th August instant. The Committee, being satisfied that the company cannot raise the capital necessary to complete the several railway-works enumerated in the original contract, resolves that it is necessary to confine future negotiations to the railway between Springfield and Jackson's, the Belgrove Section being arranged to be completed to a point at the junction of Norris Gully with Motueka Valley." Upon the question being put, "That the words proposed by Mr. Fraser stand part of the question," a division was called for, and the names were taken down as follow : — Ayes, 6: Mr. Fraser, Mr. Graham, Hon. Mr. Mitchelson, Captain Eussell, Mr. Saunders, Hon. Sir E. Stout. Noes, 6: Mr. Guinness, Mr. G. Hutchison, Mr. McGowan, Hon. Mr. Seddon, Mr. Tanner Hon. Mr. Ward. The votes being equal, the Chairman gave his casting-vote with the " Ayes." So the resolution passed in the affirmative. Words retained. The Hon. Mr. Mitchelson moved, That the following words be added to the resolution proposed by Mr. Fraser, "Except that the contract be varied so as to relieve the company from further work on the line between Belgrove and Eeeftou." Upon the question being proposed, " That the words proposed to be added be so added," a division was called for, and the names were taken down as follow :— Ayes, 8: Mr. Fraser, Mr. Guinness, Mr. G. Hutchison, Mr. McGowan, Hon. Mr. Mitchelson, Hon. Mr. Seddon, Mr. Tanner, Hon. Mr. Ward. Noes, 4 : Mr. Graham, Captain Eussell, Mr. Saunders, Hon. Sir E. Stout. So it passed in the affirmative. Words added. Mr. Fraser proposed, " That the resolution as amended be agreed to." Upon the question being put, a division was called for, and the names were taken down as follow :— Ayes, 2 : Mr. Eraser, Hon. Mr. Mitchelson. Noes, 10 : Mr. Graham, Mr. Guinness, Mr. G. Hutchison, Mr. McGowan, Captain Bussell, Mr. Saunders, Hon. Mr. Seddon, Hon. Sir R. Stout, Mr. Tanner, Hon. Mr. Ward.