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any such methods provided the principle laid down is fully effected. The Railway cannot, however, claim any part of the fares of passengers who are not proceeding by Rail nor is there any legitimate ground for increasing the tolls in respect of that class. How then discriminate?

To allow Ferry Companies to issue Railway tickets in conjunction with ferry fares, would be ineffective as it would be to their interest to issue ferry fares only and so save refund. Discrimination seems to me impracticable. The alternative if Government does not establish one or more Railway Ferries is to levy an indiscriminate toll on all passengers (limiting the Companies to certain fares) and to credit the proceeds to General Revenue and not to Railway. Hon. the Colonial Secretary in discussion with the Director of Public Works will please submit a proposal for discussion, stating amount of tolls or licences proposed, legislation required &c. Meanwhile the size of the Railway Wharf should be settled to enable Chief Resident Engineer to complete his Estimates. That is Hon. the Director of Public Works' view on this?

2.

The Chief Resident Engineer repeated a statement regarding Sub-Contracts (at my request) which he had made to me at Taipo. It was to the effect that the Railway accepts a tender with a Contractor, on certain specifications. Profiles of earthwork &c. are put up, but when the work is handed over it is rarely in accordance with the contract. The earth is not faced up to the Profile &c. so that invariably the Railway has to complete the "finishing touches", and deduct the cost from Contractor. Me in his turn sub-lets his contracts, and the sub-contract is again and again re-let till the final sub-contractor is a mere coolie, who has a verbal understanding and completes his work accordingly. Then the fine is imposed on the original contractor it is the final sub-contractor who is not paid for work done. This causes great discontent, and in one case the coolies threatened to pull down all the work. They are too illiterate to make written contracts, and as the work lies among illiterate villagers

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