VI.

In endeavoring fairly to estimate the extent to which the cost of production and distribution may be effected by a Company with the beat appliances at its command, and carrying on an extensive trade, there can be no doubt that increased competition would considerably reduce the freight to Melbourne, the largest item entering into our estimate. 20s per ton, or less, is the estimate of Captain M'Laren, provided always the Company had proper appliances at both ends, and there is other evidence to the same effect. Nor is there any reason to doubt that the Melbourne steamers, with sufficient inducement, would be prepared to carry stone as cheaply from Oamaru as from Port Chalmers. And there is yet page 5 another route, viz., via Newcastle; which would appear to afford the prospect of still further reductions. While, therefore, your Committee refrain from offering any estimate of the minimum price at which in a short time the stone may be delivered in Melbourne, they are within safe limits in stating that at once it may be placed in that market at a price which, while leaving a large margin of profit to the Company, will still be considerably below that of any other building stone of anything like equal recommendations.