2nd. By a tabulated Estimate of the
minimum of work that would be necessary,
and a schedule of prices for all works
required over and above the specified
quantities.

To have adopted system "I" where
the Contractors were men of limited
resources, over such a country where
the Contingencies were of a very heavy
character, would have resulted under
favourable circumstances in a heavy
sacrifice to the Province in favor of the
Contractors, who would have secured
themselves by providing amply for
contingencies under any contemplated
circumstances and under unforeseeable
circumstances, in subjecting the
Provincial Government to all the delay and
loss which would arise from having its
Railway in the hands of an embarrassed
contractor.

In either case there would be no
advantage to the Government in adopting
system I. System 2 was the one
therefore adopted, and the contracts were
prepared for the execution of certain
specified quantities of work at certain
scheduled prices, and for the execution of
any further work required at the same
scheduled rates.

Reference to the discrepancies between
the tenders sum for the contracts so
prepared (heading 6) is sufficient to show
how very wild the figures of any
contractor’s estimate for possible extra
requirements over such ground would
have been.

IV.—Works of Construction to be
Executed within the Province.

These were let by public tender; Camp-
belltown and Mokomoko Pier Contracts
to James M’Kenzie & Co.

Contracts Nos. 1, 3, and 5, to Mr. J.
B. Davies.

Contract No. 2, to J. A. Ross & Co.

Contract No. 4 (the Invercargill Sta-
tion), only a portion of which is debited
to this Railway; to Messrs. E. V. Carter
& Co.; and the contract for the supply
of sleepers to Messrs. Manning and
Whitton.

These works were designed by me, and
so far as completed, executed under my
control; subject to instructions received
from time to time from His Honor the
Superintendent, and to the approval of
Mr. Dundas, the Consulting Engineer to
the Provincial Government.

V.—Supply of Permanent Way and
Rolling Stock, Including Freight
and Landing Charges for the
Same.

The supply of permanent way material
and rolling stock was contracted for in
England on general specifications, and
particulars prepared in this office, and for-
warded from the Superintendent’s office,
with instructions from His Honor to the
Provincial Agent in London.

The arrangements in connection with
these were never subsequently referred to
this office.

VI.—Contracts, Estimates, Tenders
and Expenditure for Specific
Works to be Executed within the
Province.

The Campbelltown and Mokomoko
Piers were let by public tender on 16th
July, 1863, to James M’Kenzie & Co.;
there were eleven tenders for these Piers,
the highest tenders for the two Piers
being £59,632 15s. 8d., and the lowest
£34,122 0s. 0d., my estimate for the
specific work being £33,421 0s. 0d.

These works were let for the sum of
£35,850, and were completed in June,
1864, at a total cost of £38,476 2s. 0d.

Contract No. 1 of the R. H. and I.
Railway was let by public tender on 22nd
August, 1863, to Mr. J. B. Davies; there
were five tenders for this work, the highest
being £57,407 10s. 4d., and the lowest
£36,076 14s. 0d., my estimate for the
specified work being £38,497 0s. 0d.

This work was let for £36,076 14s. 0d.,
and operations having continued to 20th
May, 1864, were then entirely suspended,
when the works were within about two
months of their completion, and the pay-
ments on the works executed to this date
amounted to £44,476 8s. 6d.

Contract No. 2 was let by public tender
on 15th October, 1863, to Messrs. J. A.
Ross and Co.; there were five tenders for
this work, the highest being £32,888 7s.
6d., and the lowest being £24,149 12s.
6d.; my estimate for the specified work
being £27,810 0s. 0d.

This work was let for £24,918 0s. 0d.;
operations were restricted to an expendi-
ture of £2,000 per month in May, 1864,
and the contract was proceeded with to
its completion, except so far as regards
work intended for gradual execution by
Maintenance Gang, after the Railway
was opened to traffic.