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stated in paragraph 4. When I found that I had been misled by the words quoted from Mr. Eves's report (an impression shared by the Colonial Secretary) I informed him that I should correct my observations at the next meeting of Council, and he was asked whether he would wish to despatch his letter to the Consulting Engineers or to hold it over. He preferred to take the latter course. His revised letter, dated 24th June, 1909, to the Consulting Engineers has been forwarded by the last mail and he states in it (with reference to this matter) that he had made a statement (in his report) that the Railway was getting better value for $1 in 1908 than in 1907 and hence it was cheaper.
A reference to the report will, however, show that no such statement was made, the contrast being made between the cost per lineal foot under each heading in the two years, without any qualifying statement that the figures for 1907 included the entire cost of construction lines at both faces, accumulation of timber and materials, and erection of machinery. The letter of 24th June also refers to a letter written by Mr. Logan, protesting against the statement that the Tunnel work had been cheaper since he had ceased to have control of it, and enumerating the difficulties due to lack of Staff, and Plant under which he