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incomplete and abandoned state of the Road of the "Lady Barkly" engine, although of an improper gauge.

The little damage that would be caused to such a road by Rolling Stock constructed in the manner of the engine which was converted into a Locomotive in Invercargill, was sufficiently exhibited during its use previous to the breakage of the crank-axle.

The Earthworks northwards from the present terminus of the portion opened for traffic are in a more complete and finished state than those on this portion itself, but the impassable state of the Public Road has subjected them to damage from trespass, which could not be prevented under existing circumstances. The Ballasting for this northern portion will also be more readily obtained. The Level Crossings are generally completed so far as the Earthwork is concerned, but nothing has yet been done towards laying the Permanent Way over this portion, although a great deal of the material is provided. The Longitudinal Timbers of the Permanent Way over which the traffic has been carried have been greatly injured from the high speed at which the Locomotive was at first driven over them whilst the Works remained in the Contractor’s hands, and by faulty arrangements in the vertical play allowed to the Guide Wheels in consequence of their attachment in slides from the frame of the Carriage, but the experience obtained of this application leads to the conclusion that, as a preparatory step to an Iron Railway, laid at the earliest practicable time on Longitudinal Bearers, similarly laid down, and with Rolling Stock prepared, with such alterations as experience shows to be necessary, such a roadway may be used with advantage for any speed not much exceeding 12 miles an hour, until the Iron Rail can be laid, when, of course, the speed of any other Iron Railway of similar construction could be maintained.

In a Rolling Stock so prepared, the Guide Wheels should be attached as a fixture to the axle-box in the manner now adopted, so that they may be entirely free from all connection with the frame of the Engine or Carriage, as the case may be, and be merely rolling flanges with no bearing on the surface of the Longitudinal Bearer.

The Locomotives constructed in Victoria require considerable alterations to render them suitable for the road, and another pair of wheels for coupling with the driving wheels should be added. As stated under heading VI. one of these is at present in use over the road.

I consider the short rails to the carriages, which greatly increase the cost of their construction and the multiplicity of springs and bearings, to be also objectionable in practice, and would recommend their being gradually replaced by thorough axles having one wheel left free for slip, as arranged for the Locomotive recently constructed.

I would recommend that as soon as practicable a light Iron Rail as sketched should be laid on the longitudinal bearers, secured at the joints by bolts screwing into the Rail, as trapped to receive them; and I consider the successful application of the flat rail to depend greatly on this character of attachment being provided.

This rail being added, and the Railway ballasted, I am of opinion that even those longitudinal bearers which have been injured by the traffic, can, in their present state, be so made good underneath the Iron Rail by hard-wood packing as to render them available without that entire renewal which would otherwise be necessary.

VIII. — ESTIMATED COST OF COMPLETING THE RAILWAY.

The cost of completing the nineteen miles of Railway, and the Rolling Stock, exclusive of the Iron Rail recommended, will be about £24,000; this Iron Rail can be laid complete for £14,000, and a sum of £2,500 should be provided for the necessary Station arrangements at Winton, and intermediately between Invercargill and Winton.

GENERAL SUMMARY.

The appliances and tools provided for the repairs of the Rolling Stock on the Bluff Harbour and Invercargill Railway are applicable for any repairs of Rolling Stock on the Oreti Railway.

The payments made for the locomotives constructed in Victoria have not passed through this department, and no record exists in it of this item of expenditure.