H.—4,

8

Summary of Findings. Summarized, we respectfully beg to return, the following answers to the questions addressed to us in Your Excellency's Commission :•— 1. The extent of the traffic which may reasonably be expected to be conveyed over a railway between Rotorua and Taupo, or the vicinity thereof (connecting with the present Government railway at Rotorua) if such mentioned railway be constructed, we estimate as sufficient to produce a revenue of £61,492 per annum provided the railway is completed and opened for traffic within the next ten years. If not then completed the available traffic .would require to be again reviewed. 2. We consider that there is under present or probable conditions no likelihood of such railway (if constructed) returning sufficient revenue from the working thereof to meet the expenditure incurred in and by such working, together with interest on .the cost of construction of such railway, assuming such interest to be charged on such cost at the rate of 4 per centum per annum. 3. The extent of country which would be served by such a railway (if constructed) we estimate from the information obtainable at approximately 1,250,000 acres. Of this area the quantity proved to be suitable for settlement is very limited. In our opinion further investigation is necessary to determine the suitability for purposes of settlement of the great bulk of this country. 4. The route (generally) which should be adopted for the construction of such a railway (if such construction should be decided upon) is from Rotorua by way of Hemo Gorge to Waiotapu, and. thence keeping to the right bank of the Waikato River to Taupo Township generally, as shown on a plan forwarded herewith. (The route has not been surveyed in detail). 5. The various matters which we considered relevant to the question as to whether it is desirable and warranted in and by the public interest that a railway should be constructed between Rotorua and Taupo as aforesaid have been set forth in a foregoing portion of our report, and it is not necessary to recapitulate them here. Conclusion. In conclusion, the Commission desires to express its thanks to those gentlemen who appeared as witnesses for the valuable assistance given, and also to Sir John Findlay, K.C., and Mr. E. E. Vaile for their able and instructive addresses. Your Excellency's Commission is returned herewith. We have the honour to be, Your Excellency's humble and obedient servants, H. Buxton. G. T. Murray. L. Maclntosh Ellis. Wellington, New Zealand, John D. Ritchie. 24th August, 1922. H. Munro.

ROTORUA--TAUPO RAILWAY COMMISSION. Auckland, 29th August, 1922. The Commission's report reached me yesterday under cover of your memorandum of the 26th instant. Referring to order of reference No. 1, " Probable Traffic " : As stated in my memorandum to you of the 27th instant, and again during my conversation by telephone to-day, I disagree with the statement contained in the last sentence of the reply to this question. I am. still of opinion that the main purpose of an extension of the railway fro'fti Waiotapu to Taupo would be to serve the indigenous forests, which would provide traffic for a period of fifteen to twenty years, after which this section of line would either have to be abandoned or operated at a heavy loss. I am convinced that the increase of traffic during the fifteen to twenty years which would be required to cut out the indigenous forests would not be anything like sufficient to make good the loss of traffic which would result from exhaustion of such forests. lam signing the report subject to my signature being accepted with the above reservations, and conditional on a copy of this memorandum either being attached to the report or otherwise forwarded to the Hon. Minister with the report. LL Munro. H. Buxton, Esq., Chairman, Rotorua-Taupo Railway Commission.

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