whole position—viz., the command of the outport. This the Company have not been slow to recognise, and negotiations are now, I believe, in progress for the purchase from the State of the twenty miles of line from Walkaway to Geraldton which the latter have made to meet the Company's line at Walkaway, at a cost of some £60,000. As money is not too plentiful, the Government may also find it to their advantage to hand over to the Company the construction of the projected line to Mullewa, which would tap the rich pastoral districts of the Upper Murchison, and for which a sum of £100,000 appears in the loan schedule already referred to. The main argument in favour of leaving the work to the Company is that it will mainly run through land which the Company meditate taking up under their original concession. It may be said that the tide of opinion in the abstract is against land-grant railways, and that they are objectionable in principle as tending to aggregate too much territory, and, par consequence, too much power, in a few hands, as has been done with such undesirable results in the United States. On the other hand, the indisposition of English investors to take up colonial loans is bound to have the effect of compelling the Australian Governments to look elsewhere than to public borrowing for the construction of railroads which they deem necessary to provide means of transport and to open up the public domain, whilst it would be by no means impossible to introduce clauses into these land-grant concessions rendering alienation in moderate blocks compulsory within a reasonable time.
The harbour at Geraldton, though little more than an open roadstead, is not a bad one in moderate weather, and when the £25,000 which is placed on the loan estimates for its improvement, on the lines suggested by Sir John Coode, has been expended, it will satisfy all reasonable requirements in fair weather for many years to come, though there are not wanting sanguine persons who already regard the advent of ocean mail steamers and the establishment of a large export trade in frozen meat as amongst the possibilities of the not distant future. I bore an introduction from the Premier to the Government
