To His Worship the Mayor, and Other Promoters of the Proposed "Oamaru Stone Quarrying and Export Company."

Your Committee at once placed themselves in communication with such professional men and others as they considered best qualified to afford the most satisfactory and reliable evidence, and they have now the pleasure to submit herewith the result in extenso. They are gratified to be able to produce such a mass of evidence by so competent persons, which they cannot but regard as perfectly conclusive, and it now remains for them to submit the following summary, in the order of the questions referred to them:—

I.

The whole country extending from the Kakanui to the Waitaki River, a distance of more than 20 miles, and covering a vast area, of not less than 100 square miles is composed entirely of this stone formation, which crops up above the surface in almost every field, and rises—as at the Fortification and elsewhere—into vast ridges of incalculable quantity. The stone varies in quality, not only in each locality, but even in each of the quarries now being page 4 worked, but on all hands it is acknowledged that this vast area abounds in deposits of the best description of stone, and the number of quarries which may be developed may be multiplied ad infinitum. This district, besides the main trunk line of railway, is traversed by three branch lines.

II.

Some of the quarries are still in the hands of the Corporation and Government, and the right to work such reserves could easily be secured on advantageous terms. As regards the numerous quarries in the hands of private individuals, some of which at least any Company formed would require to secure, your Committee are of opinion that no difficulty whatever will be experienced in concluding satisfactory arrangements for their acquirement or use with the proprietors.

III.

The cost of stone from the quarries now being worked at Weston is from 6d. to 8d. per foot, and at Mount Taipo 9d, per foot, delivered at the wharf. The proprietor of the latter, however, expects, with his improved appliances, to reduce the cost to 7d per foot.

IV.

(1). The cost of quarrying under present circumstances, is 4d. per foot, and at Mount Taipo, where the proprietor has just introduced improved appliances, he anticipates being able to reduce the price one half. (2). The freight to Oamaru is 10d per truck per mile, or 6s. 8d. from Mount Taipo. A truck carries 5 tons, or 110 feet, being about ¾d. per foot. Weston is about half the distance, and consequently the freight thence would be considerably less that from Mount Taipo. (3). The export of stone to Melbourne for some time has been almost nil, but by sailing vessels 25s. per ton appears to have been the ruling rate, and by sailing vessels to Port Chalmers, thence per steamer to Melbourne, 28s. per ton.

V.

That the present methods of working the quarries admit of vast improvement is universally acknowledged. The recent invention of Mr Munro, which so far warrants the belief that the cost of quarrying will now be reduced one-half, is one step—only one—in the right direction. In carrying on operations on a more extensive scale, it is impossible, however, to estimate the extent to which steam power and other improved appliances may economise labor. Your Committee have, however, had abundant evidence, that at every stage, from the quarries to its final destination, the larger operations of a Company, with improved methods, would materially diminish the cost of the material.

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.

VII.

Your Committee having regard to the necessity of large supplies at the Melbourne depot, and the large preliminary outlay on trucks, machinery, and other improved appliances, besides the great importance of starting with sufficient capital at the disposal of the Company, recommend that the capital of such Company should be £25,000. They are, however, of opinion that not more than half this amount need be called up before the Company becomes self-supporting.

In conclusion, your Committee would desire to express their great obligation for the cordial response to their enquiries, by so many professional men, and others, so well qualified to judge; eliciting so large an amount of valuable information respecting our stone industry. They desire specially to refer to the very satisfactory evidence which has been forthcoming as to the extreme durability of the stone itself, its great strength and other serviceable qualities, its great purity and beauty, and the extraordinary facility with which it can be wrought into the most elaborate designs. Its great economy, moreover, in the cost of workmanship as compared with all other stones whatever is very remarkable, it being 50 per cent, less on ordinary buildings, and in highly ornamented buildings shown to be only one-third of that requited in working other stones. If, moreover, it be borne in mind that so far as your Committee's enquiries have extended the price of Oamaru stone in Melbourne has hitherto been from 4s 6d to 5s per foot, and that any stone with which it would be brought into competition commands about the same price in the market, it will be sufficiently apparent that a large reduction in price, stimulating the demand and largely increasing the consumption, may be effected, and the undertaking nevertheless remain an exceedingly profitable one.

Your Committee are therefore clearly of opinion that a large and profitable trade awaits the formation of a Company, which will develope this valuable industry on a scale commensurate with its vast importance.