E.—B.

Mr. Allison D. Smith to the Hon. the Minister for Public Woeks. Sie, — Locomotive Department, Christchurch, 17th July, 1880. In obedience to the direction contained in a telegram received from the Under-Secretary for Eailways, I have the honor to forward, for your information, a full account of every particular, within my knowledge, in connection with the wagons referred to in my evidence before the Civil Service Commission. On 4th December, 1878,1, instructed Charles Abel, our Car and Wagon Inspector, to proceed to Dunedin to inspect a travelling saw-bench and a circular saw-bench that had been offered to the Government for sale by Messrs. Gibbs aud Clayton; he was also instructed, while in Dunedin, to look through the several factories and shops, in order to note if any suitable machinery could be procured to assist us in building some stock in Christchurch. On the return of our Inspector, he informed me that while in Messrs. Guthrie and Larnach's factory he saw a large quantity of timber being cut for railway-wagon building, which was of the kind known as striiigy-bark or swamp gum, from which, as the saws passed through the timber, water was oozing out. He also informed me that he saw the same class of timber being built into wagons in the Hillside Workshops, and that, from inquiries he had made of the men in Messrs. Guthrie and Larnach's factory, he knew that it w ras the same that they were cutting. Not being satisfied with a merely verbal statement, I got him to put this in writing, and his report was recorded in my office on the 10th December, 1878. This report (record No. 2054) I forwarded to the Commissioner on the 11th December, 1878, asking him to look into the matter, and explaining that the major portion of the cost of repairs to wagons was caused through unseasoned timber being used in their construction. Shortly after this, the Besident and Locomotive Engineer from Dunedin was on a visit to Christchurch, and in going through the yard with him and the Commissioner I referred to this matter, and the Engineer then characterized the Inspector's report as being a falsehood, saying that " he knew what stringy-bark was, and how wagons should be built." The Commissioner at the same time said that this was the best timber that could be obtained. During the month of February several of these new wagons arrived in Christchurch in a miserable condition, which attracted considerable attention from the employes in the shops, and they were rebuilt at this time, or, say, about six weeks from the date of their construction, and I then wrote the following letter to the Acting Commissioner for Eailways, Middle Island : — "Sie,— "27th February, 1879. "In my record No. 2054 of the 11th December, 1878, I had the honor of directing the attention of the Commissioner to the loose manner in which some of the rolling-stock (notably wagons) had been made in Dunedin. " The Commissioner at the time felt somewhat inclined to disbelieve the statements made, and, in justice to the Inspector, I now have the honor of forwarding you a sample of tenoning taken from wagon Nd. 1402, recently built in Dunedin, which will give you a fair idea whether the statements made were not accurate. This wagon was taken off the road unfit for traffic, as it was literally tumbling to pieces, and no alternative was left but to rebuild it. Another wagon, No. 1602, in a similar condition, has just been specially brought under my notice. This is also from Dunedin. "In advising you of above, I may mention that these instances are not exaggerated in any particular, and by no means singular. I would therefore respectfully direct your attention to the advisableness of steps being taken to insure better work being turned out, as it is nothing less than a waste of time and good material in placing wagons on the road in such a slipshod manner. " Allison D. Smith, "Locomotive Engineer." My letter of the 27th February having been sent to the Besident and Locomotive Engineer, he wrote to the Commissioner disclaiming any connection with the stock referred to, and stating that it was built by the Public Works Department, and that he could not be held responsible. He concluded his letter with a very personal attack upon myself. The Besident and Locomotive Engineer's letter was indorsed to me by the Commissioner, and, having noted the remarks, I attached the following letter and returned the correspondence:— " Bad Workmanship in Otago Wagons. "The Commissioner of Eailways, Christchurch. "I have, to thank you for giving me an opportunity of answering the letter of the Besident and Locomotive Engineer of Dunedin, in reply to my report of the 27th February, on the subject mentioned above. "The object of that report was two-fold: firstly, to do an act of justice to our Inspector; and secondly, to take steps that would lead to the proper construction and conservation of valuable Government property. "Of course, I was -not in a position to say exactly by whom the stock was built; but as the Engineer is responsible for the maintenance of the stock, it was clearly his duty, in the interests of the department, to see that the wagons were well constructed before he accepted and passed them into traffic on behalf of working railways, no matter from where or whom they came. "The argument advanced about not being responsible is absurd, for no engineer can be forced without strong protest to accept bad work, and, if this protest was made, then what has become of it? " In any case the fact of the Engineer in Dunedin accepting bad work cannot compel me to receive it second hand from him without reporting the matter. "To speak in stronger terms than the wording of my last report, I now beg to inform you that the majority of Otago wagons that have come north since the opening of the through line have been in a simply disgraceful condition, and the state of things is notorious, and a by-word amongst the employes in the shops. " It was the knowledge of the condition of the Otago stock that caused me to object so strongly at

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