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Without the slightest desire to damp the ardor of the promoters of the projected railway between Wellington and Masterton, I feel bound to reiterate my opinion that the scheme, if not wholly impracticable, is at any rate one which the Province is not at present in a position to entertain. The promoters have not complied with any one of those conditions which every Legislature insists upon before it gives its sanction to such enterprises. No approximate estimate, nay not even a rough guess of its cost has been vouchsafed. Now we know that the average cost per mile of the railway over the plains of Canterbury has not been less than £6000, (exclusive of rolling stock) and I scruple not to say that no engineer who is acquainted with the country between the Hutt and Masterton and the engineering difficulties it presents would estimate the cost of the line between those two places (exclusive of the cost of the tunnel through the Rimutaka) at less than £10,000 a mile. And most undoubtedly would be a bold contractor who would undertake to construct a line of railway on a permanent causeway in the sea between Wellington and the Hutt, a distance of some eight miles, at less than from £20,000 to £30,000 a mile. In other words, at the very lowest estimate the line from Wellington to Masterton would cost £750,000.

Then with respect to the traffic, the promoters have not even pretended to show, as they were clearly bound to do, both to the Province whose guarantee they seek and to the capitalists whose money they desire to see invested in the undertaking, that the line could under any possibility pay its working or anything like its working expenses. What really are the facts? The population of the Wairarapa and the East Coast sparsely spread over an extensive area is 3000 souls. The chief export is wool—of this at least one half will be always shipped from the coast; of the other half the greatest part will come into Wellington on the flat which it has been placed. The only other exports are timber and dairy produce. A daily coach which does the distance between Wellington and Masterton in some ten hours, suffices for the passenger traffic. As far as the Hutt is concerned, the line what with the expense of repeated loadings and reloadings and unloadings would scarcely be used for the transport of produce. From a return made to me it appears that less than one fourth of the tolls taken at Kaiwarra toll-bar is received from the traffic over the Rimutakas.

From the report recently published of the promoters, it would appear that the settlers in the Wairarapa have come to pretty much the same conclusion as I have, for they say, ‘The settlers in the Wairarapa district in particular would appear to be very lukewarm in the matter, the whole subscription from them (towards the preliminary survey) amounting to £11.’

In the utter absence then of any data furnished by the promoters, and in the face of such facts as I have briefly put before you, I think you will scarcely feel yourself justified in agreeing to the proposal that you should guarantee 7 per cent on £750,000, or it may be £1,000,000 for the construction of a railroad between Wellington and Masterton, or in incurring any expense whatever in respect of it. I also feel assured that before giving any such legislative guarantees you will satisfy yourselves that the Province is and will be in a position to pay it. And in considering this matter you will not fail to bear in mind that your ordinary sources of revenue are already sufficiently burdened—that land revenue is ever a most precarious source of income and that yearly your landed estate is being alienated. And here I cannot help recording my opinion that any system of finance based upon land sales receipts is inherently rotten.

But further, assuming that you gave such guarantee, can you for one moment believe that any capitalist would, after turning over any one year’s estimates of your Provincial Revenue and Expenditure, after taking the most cursory glance of your assets and liabilities, deem the guarantee you offered sufficient or worth the paper on which it was written...

I shall lay before you a memorial numerously signed by the inhabitants of the Wanganui district, praying you to undertake sundry public works, such as roads and bridges, between the Waitotara river (where the purchased land of the Crown terminates) and the Patea river. This memorial forces upon your consideration the important question whether this Province can legitimately be called upon to make roads, or construct other public works, either to or through districts, the lands of which are entirely withdrawn from their control, and from which you have derived no benefit. My own opinion is that you will commit an act of very great injustice towards the rest of the Province, if you even contribute a single farthing towards opening up districts in which the lands have been either confiscated, given away, or acquired from the natives by direct purchase.

Should the Public Debts Act of last session be assented to by the Imperial Government, I purpose requesting His Excellency’s Ministers to offer the holders of the loan of £50,000 known as Gladstone’s Loan to exchange our 8 per cent bonds for Colonial 6 per cent, thereby effecting an annual saving in interest of £1000. Failing their acceptance, then I shall, as I am empowered to do, give notice that the loan will be redeemed at the expiration of twelve months from the date of such notice.

When I mention that during the past year fifty-three miles have been added to the roads, and that of these forty-nine have been made by the District Boards, I am sure that you will contemplate with regret the possibility of your being unable to continue the grants in aid at the same rate as hitherto. As one means of enabling you to do so, I have to suggest that the Town Boards of Wellington and Wanganui should consent to a reduction on this year’s grants to one half.

While I make this proposal with reluctance still I cannot regard it as either unfair or unreasonable, for the Town Boards have undoubtedly during the last few years received a more liberal assistance than the District Highways Boards. The rates levied last year on the City of Wellington amounted, I understand, to about £3000. They received from the Provincial chest £3750, from rents £600, and they had at their disposal on the average some forty prisoners—the value of whose labor can scarcely be estimated at less than £2000. In other words they received grants in aid of their rates to the amount of £6350, and this not merely for the construction but also for the repairs of their streets, whereas the District Highway Boards have never received more than an equivalent on the rates raised for repairs.

The same remarks are applicable to the Town Board of Wanganui. Their rates last year amounted to £1160, their rents to £107, their grants in aid to £1160, and they also had the labor, I believe, of some ten or twelve prisoners. I trust, therefore, that my present proposal will meet with the acceptance both of the Council and the Town Boards, more especially as it is not intended that it should apply beyond the current financial year. And after all what does its adoption involve—simply the postponement to another year of certain improvements not absolutely or even urgently required, for the funds at the disposal of these two boards will still be amply sufficient to keep their thoroughfares in good and substantial repair.

If agreed to, I believe that the two equivalents can be continued to District Boards during the whole year. The Government has, however, while guaranteeing the equivalents in respect of the existing contracts, warned the Boards not to cal...