THE WINTON RATLWAY ARBITRATION.

Tuapeka Times, Volume V, Issue 226, 30 May 1872, Page 7

THE WINTON RATLWAY ARBITRATION.

The following extracts from the report of the select committe appointed to consider and report upon the contracts, papers, and other documents .connected with the Winton Railway, show how the public revenues were sacrificed by the incapacity of the members of the Executive of the time concerned in the affair, viz., Messrs. Gillies and Duncan' :-=- The correspondence which has been at the disposal of the Committee abundantly proves that Mr. Dundas, the engineer, from the time of his appointment, on 31st March. 1869, evinced great prudence and constant vigilance in seeing that the terms of the contract were fully carried out; and throughout the whole of the negotiations for a reference to arbitration between the Contractors and the Provincial Government, strongly discountenanced (and even after a reference to arbitration had been agreed upon Mr. Dundas protested in strong terms against), the departure in any way from the provisions of the contract. There can be no qu?stion that if the powers conferred upon the Engineer (Mr. Dnndas) had been duly respected by the Provincial authorities, the Province would have been spared the unnecessary burden of at least £11,000. The contract admittedly made it a condition precedent to the right of the Contractors to claim payment for work done, that the Engineer should certify his approbation of the claim made. It is equally free from doubt that it was the intention of the contracting parties to invest the Engiueer with au absolute and uncontrollable discretion in deciding upon all questions arising under the contract, including claims for extras, and the enforcement of penalties for delays. Mad the Provincial Executive of Otago seen fit to leave the powers conferred upon the Engineer by the contract unfettered and intact, as the late Superintendent and Executive Council of Southland very strongly recommended, the result would have been that the Province would nothtve bean called upon t<> pay more than £16,153. Whereas the award of the arbitrators has mulcted it in a sum of £23,452, to which must be added from £3,000 to £4,000 for costs already recognised, and for legal and other expenses still contingent. 1869, April I.— Winton Railway Contract — Amount of Contract - . price . . £17,402 9 6 1870 — April payment on certificate . . 3,837 6 0 Balance (exclusive of extras). . . £13,565 3 3 1871, June 14— Claim of contractors (exclu- - sive of current interest . . . £32,230.16 5 „ June 21 — Valuation of Engineer . . £16,151 6 8 „ December 20- A ward of Arbiters . . £23,452 2 0 Exclusive of one-half Arbiters' fees, £1437 16s. lOd. . . H8 18 5 Law coats, witnesses and expenses, &c, estimated . . 3,000 0 -0 Probable cost to the Province . . £27,170 0. 5 Note. - In the valuation of the Engineer, he gives particulars of a total charge of £3,561 17s. 4d., which, under a rigid construction of the terms of the contract, might have been deducted by the Government from the amount of his valuation stated above. It has not been shown to the Committee that any satisfactory reasons exist, or ever did exist, for the voluntary extinction by the Executive of the Engineer's powers under the contract, or the suppression of some of its most vital terms, or the surrender and abandonment of the public rights. The chief reasons urged in favour of the course taken by the Kxecufor the time were — (1) That the Engineerand his officers had been committed for trial for taking forcible possession of the railway line ; ami (2) that the local residents were anxious to have the line opened. Before passing any remark upim these topics, it is desirable to notice th.it Mr. -Duncan clearly admitted that if he had had any idea the award of the arbitrators would have at all approached the sum finally allowed by them, he would never have agreed to a referenae.

The Committee cannot recognise as valid either of the reasons assigned by thp la<e Executive for agreeing to a refe- . rence. While, undoubtedly, Mr. Dundas and his officers had been placed in a very unenviable position by the commital of the local Magistrate, it appears to the Committee that the result wa3 in a great measure brought about by the action taken by the Executive. No donbfc the residents located on the line of railway were anxious to see it opened for public traffic. But the question is whether for the sake of a few mouths' delay, the Executive were justified in agreeing to a course which has resulted in charging the province with an addition of not less than 70 per cent, upon the amount which, according to the Engineer's view, would alone have been payahle to the contractors.