1.—7.

They did so when the price of wheat was high in Loudon ; but since trien they have had two disastrous harvests : splendid crops, but the rain ruined them in the stock, and put the district back at present; but it is only temporary. 504. Over a period of seven years from now there is not a likelihood of a greater amount of traffic than in the past years ?—I think not, because, even with a rise in trie price of grain, it might be a year or two beEore the farmers would go in for increased cropping, and tho grain traffic will be much less than for the past two years. Trie line opens out the plain that lies between the Eakaia and Ashburton Eivers. 505. All in small holdings'?—Mixed. When I say large holdings, understand me to mean farms of two to three thousand acres; and small holdings, farms of three to five hundred acres. 506. Dr. Neivman.] Was all this land through which, it runs held in large hands and cut up for the railway ? —No big estates were cut up, so far as I know. ' 5C7. Would this line pay for extension before long?—Yes; it would pay to extend to Alford Forest, a bush about seven miles farther on. 508. And a large pastoral country beyond?—Yes; and it could be easily made. On the whole, is a satisfactory line, Waimate Eailivay. Mr. McKerrow examined. 509. The Chairman.] Give us information of the same description as that you have given us in reference to the Eakaia and Ashburton Eailway? —The Waimate Eailway for the first four or five miles runs through a gorge, it opens then into a nice level country of a very superior quality, and at present, so far as constructed, terminates at the Waihao Forks. Beyond that point there are about fifty thousand acres of very good pastoral agricultural land held mostly in two or three largo estates. About twelve miles from the present terminus triere are about thirty thousand acres of Crown lauds on trie tops of the hills, before you reach into the Hakateramea Valley. As regards the paying prospects of this railway, at present they are not very encouraging, for the reason that there are comparatively few settlers. The railway through its entire length so far as constructed running through Mr. Studholme's estate, although a considerable portion of the land is suitable for cultivation. It is all held principally for pastoral purposes. • 510. Could you tell the Committee why triis line is only eight miles instead of sixteen ?—They stopped at the place called the Waihau Forks, up to which point the formation was easy, and did not go farther on for financial reasons. 511. It is not from anything in the nature of the country ?—No ; it is very easy up to that point, but the difficulties beyond Waihao Forks would not be more than what is usual in railway construction. The gorge near Waimate is to a considerable extent a valley, and the line was one of the easiest to make. I was along it three months ago. 512. And if extended beyond, would it run into good country?—Yes ; it runs into good country. It is an agricultural and pastoral country, a series of flats with hills in between—a limestone country, of admirable quality; but I question if trie extension of trie railway would have much effect on its further settlement. It is nearly all held in large estates. The line is made up to Mr. Douglas's estate, one of the best estates in New Zealand, and beyond that you come to the Waihaorunga estate, which, is now held by the mortgagees. 513. Can you give the Committee any idea of the number of settlers in trie district ?—I do not think there are more than twelve homesteads. 514. Mr. Dargaville.] Has the Crown any land farther on if the line was extended?—lt has the tops of the hills, of an elevation varying from I,Booft to 3,000ft.; very good sheep country ; but would not in any way, or, at all events, in only a small degree, be improved in value by a railway up to it. Trie only products would be sheep and wool, and triey would be driven to market. 515. Did you say there were fifty thousand acres of good soil already alienated from the Crown ? • —Fifty thousand acres of very fair pastoral and agricultural land. 516. And in the hands of how many settlers ? —Twelve at the most, I think. 517. Did you speak of a forest?—No; there is not a single tree, I think, in all that district, except what has been grown by the settlors. 518. This is not a district in whicri settlement is likely to progress at any extent ?—Not unless the large estates got cut up. The country is suitable for it. The Waihaorunga estate, of twenty thousand acres, about seven miles beyond the terminus of the line, was, in 1879, cut up into sixty-eight farms, varying in size from a hundred to a thousand acres, and offered on lease, with, purchasing clause, in Dunedin, but there was not a single offer for a farm. The tide in laud speculation was ebbing before this estate was brought into the market. Land speculation was rampant in Canterbury some little time before, but trie reaction had set in. 519. Those thirty thousand acres in the hands of trie Crown, would they be increased in value, and to what extent, by an extension ? —They would be increased in value so little that I would not make a definite statement or estimate. Pastoral country does not get much advantage from a railway to it. You cannot increase trie product of the country much, and the railway freight on it is but a small matter; and in this case the Crown lands have good roads to them. 520. And beyond the thirty thousand acres, what sort of country is it ? —Tho Hakateramea country is beyond. 521. That valley would bo served by the Hakateramea and Duntfdon Bailway?—lt is at present served by it. 522. Mr. Montgomery.] You said that land was offered for sale and a price per acre put on it: what was triat price?—l could not say. I believe for the Waihaorunga they now want about £5 or £6 per acre,

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