Page 702
the estimate for Facing and Widening being less). Mr. Logan on
the other hand appeared to base his proposal on the grounds
that the supervising staff is insufficient, and the work could
be done more cheaply and more rapidly if it were increased. On
this point Mr. Ives said that some critics thought the Staff
already too large, that the Crown Agents objected to its in-
crease, and that Mr. Waite considered it alone right.
Mr. Ives, in his letter attached distinctly favours
this proposal and submits certain contractual stipulations,
which, however, are in my view very far short of covering the
ground. The first and most important question is has the Chief
Resident Engineer lost confidence in his own ability, that he
should concur that the work can be done more cheaply and more
quickly by another, or alternatively does he think that another
would work free from conditions which increase both cost and
delay? It was useless to ask the first question so I confined
myself to such questions as might throw light on the second.
They revealed practically nothing. The proceedings of the last meeting show that I am making efforts to reduce such difficulti-
es as exist re accounting and audit, and also to enlist the Public Works Department in effective co-operation in the making of contracts, which will be a saving of office work to the Railway. As the contractor must still be under the control of
the Colonial Government and of the Consulting Engineers and
both must be fully informed of the progress made &c., I do not
see that in these circumstances any very appreciable saving
can be made in office staff. The discount on explosives cannot
be of sufficient moment to cover a decrease in cost and also contractor's profits. Before dealing further with this proposal
I would wish to make
(a) it clear what its basis is. The plant erected, the petty tools and timber at site, most of the quarters al-
ready erected, and the coolies (whose passages have been paid) are all to be taken over free of charge, the residue of material property being handed over to Government again on completion.