D.—l

VIII

funds are available for the purpose, and during the ensuing recess detailed information as to the possible traffic results will be obtained, and, should this prove satisfactory, a Bill to authorise the extension will be introduced next session. It is also proposed to have a detailed survey made of the Lawrence-Rox-burgh line. Catlin's River. This railway was completed and opened for traffic to Owaka on the 22nd June, 1896. As promised in last year's Statement, a reconnaissance survey has been made to ascertain the best route for a line to connect the Catlin's River and Seaward Bush Railways. The report of the engineer shows that the line would be nearly 60 miles in length, and would not be an easy one to construct. There are four saddles to surmount, the total height to rise in going from Owaka to Waimahaka being 1,626 ft., with 1,580 ft. to fall. There would be numerous gradients, ranging from 1 in 50 downwards, one of the steepest grades being over 5 miles in length. There would also be two tunnels of a total length of over half a mile. As only a reconnaissance survey was made no reliable estimate of cost can be given, but it is tolerably safe to say that a substantial railway along this route, according to present standards, could not be constructed for less than about £7,000 per mile. Seaward Bush. The formation-works on this line have proceeded steadily during the year. The work might have progressed more rapidly had there been any likelihood of the large bridge over the Mataura River being finished anywhere near the contract time for its completion, which expired more than twelve months ago. The bridge is now at last nearing completion, however, and the remaining works between the bridge and the terminus of the line at Waimahaka will then be energetically proceeded with, with a view to the line being opened for traffic as early as possible. The expenditure on this railway last year amounted to £10,856, and liabilities existed at the close of the year to an additional amount of £6,009. The vote asked for this year is £10,000. Forest Hill. The formation of the extension of this line from the .end of the previouslyconstructed section to Macdonald's Corner is now practically completed and ready for rail-laying. The previously-constructed section of the line, which had for some years been in use as a coal tramway, but which was not at all up to the general standard of the Government railways, is being overhauled, and the light and partially-rotten sleepers are being taken out and replaced with new ones of standard size, and the worn and crippled 281b. rails are being replaced with new or good second-hand 40 lb. rails. The work is being proceeded with as rapidly as circumstances permit, but, as the obtaining of the second-hand 40 lb. rails is dependent on the relaying of the main lines, it cannot be carried out faster than this latter work proceeds—nor, indeed, as fast, as many of the rails taken out of the main line are not considered sufficiently good to lay in this branch line, which is intended to be worked in the future by the ordinary rolling-stock in use on the main line be ween Invercargill and Winton. No expenditure was actually brought to charge against the vote of £3,000 taken for the work last year, but considerable expense has been incurred since the commencement of the current year. A renewal of the vote of £3,000 is asked for this year. Midland Railway. Construction-works on this railway have been carried on throughout the year at the Jackson's and Belgrove ends of the line. At the Jackson's end a considerable quantity of work has been done. The operations now extend over a length of about 12 miles, and consist' of bushfelling, earthworks, masonry culverts, &c. The formation of the line is well advanced, a considerable portion