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Enclosure 3. I attach a minute in which I have examined the figures under each head. At the end of this minute I have shown to what extent the original Estimates have been increased by items not originally estimated for, from which Your Lordship will observe that with the exception of the large under-estimate for the Tunnel, the gross increase is entirely due to the inclusion of items not previously included. I shall be glad to have the authoritative confirmation of the Consulting Engineers for the present Estimates. My minute upon them, together with the information it has elicited

Enclosure 4...

from the Chief Resident Engineer whose Memorandum I attach will, I hope, be of use to them in this connection. I consider that when the Chief Resident Engineer submitted his revised Estimates of February, 1908, he ought, with more than a year's experience of the work, to have been able to approximate more nearly to the expenditure involved, more especially in the case of the big Tunnel. I find that when I laid this report and estimate before the Council, I was completely misled by Mr. Eves's comparison (on page 2 of Report) of the cost in 1907 and in 1908 per lineal foot of Tunnel and his statement that "the cost of Tunnel driving was very much reduced in 1908 owing to better organization"

... SoC ...

I am under the impression 200 from remarks which he made

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