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down their line the system should be made as perfect as possible ; that every thing should be done in the most perfect manner? lam speaking now of Dunedin : whatever arrangement may be made is it too much to ask that the return-circuit should be made as perfect as modern experience requires ? —I do not think that the company in question, with the reputation which they have, would do anything else than put down the best' system. 34. All your evidence goes to negative the liability to danger; and, where accident or damage has occurred, you say that they could have been avoided if ordinary precautions had been taken ?— Yes. 35. Mr. Lake.] Assuming an electric tram, established according to the orders of the Board of Trade, it might be impossible to run such tram so long as the Government claim that there should be no interference with the telephones ?—Yes, possibly. 36. However good the return, the telephones would be affected by the induction, and they would have to have a return-wire to them ?—Yes; if they wish to possess an efficient service. 37. But you assume that the present service will not be much interfered with?— Yes. 38. The Chairman.] In that Parliamentary Committee Eeport a cardinal point was made in connection with the recommendations that the electric companies should have time to protect themselves by insulation ?—Yes. 39. Do you think that it could be managed in less time—two years ?—Yes, certainly; the probability is that the clause was framed to apply to large cities; but in such places as Dunedin and Wellington, or in any part of New Zealand, where there are so few telephones comparatively, I do not see why the whole thing could not be done in a year ; in the meantime the tramway line could be under construction.