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laid before me by the Chief Resident Engineer as a serious and important matter. In effect it amounts to this:- The Chief Resident Engineer after a year's work on the Tunnel during which time a proposal to let the whole thing on contract was raised and abandoned, now suggests and supports a proposal that a working Engineer without substantial capital, and with no experience as a Contractor should take over the job as it stands, using all the plant and employing all the supervising and other labour now employed on the Tunnel (as apart from the rest of the Railway). He seemed to infer that such a man would complete the work more rapidly than he can himself, though he has had absolutely carte blanche as to the Staff, labour, and plant he desired. Mr. King he said was willing to contract to do it in two years though he expostulated with him, urging that it was impossible and he would lose money. (That it appears to me is Mr. King's affair). He himself estimates that it will take him 2¼ to 3 years to finish. And in respect of cost Mr. King's estimate is apparently lower than the Chief Resident Engineer's, Even more striking was the enquiry whether it would be allowable for Mr. Logan (one of his Executive Engineers) to tender in opposition to Mr. King. In reply I told Mr. Ives that such a proposal was one which I should require time to consider, and I was not prepared to express a view off-hand one way or the other. In the meantime I would desire to make a few points more clear to myself.
(a) On what grounds did he think or did the Tenderers think that the work could be done more rapidly and at less cost (since their estimates are lower, and their own profits have to be made) than under the present regime. As regards cost, he said in reply that Mr. King looked to save money by reducing the office staff since he would not have to make so many returns to Government and to England. He hoped also to secure a discount on explosives which the vendors will not allow to Government (yet, it is noteworthy that his estimate for explosives was higher than that of the Chief Resident Engineer)