6.
675
himself. I questioned him closely as to the grounds on which these gentlemen (and apparently he himself also) considered that they could thus improve on present methods and yet secure a large profit to themselves. In reply he said that Mr. King (he has not, I believe, discussed the matter with Mr. Logan) looked to save money by obtaining a trade discount on explosives which is not allowed to Government by the local vendors. Yet it is remarkable that in this particular matter Mr. King's estimate exceeds the Chief Resident Engineer's estimate, and that it is on the Tunnel facing and widening that it is less. He also hoped to save something on the Office Staff, but since the same control as at present exists by the Consulting Engineers and by the Colonial Government must continue, this would probably be chimerical. In any case, these small savings would not provide Contractor's profits and a saving to Government. I do not trouble Your Lordship with a detailed criticism of the proposal which, even if the tenderer were a man of acknowledged Railway experience, and with adequate capital, teems with difficulties both as regards the control by the Consulting Engineers and the local Government and the question of cost of existing plants. &c., for in the circumstances it does not appear to me to be worth