1.—14.

12

|_M. MCLEAN.

153. And that is all sunk in the tunnel?— Yes, and in the dock. 154. There is a deposit of £s,ooo?—Yes. 155. Was that put in by yourselves?— Yes. 156. It is your joint cheque? —Yes. 157. That money is returnable to you and not to the company?—No, it is returnable to the company. It is assigned. We are liable to the company for it. 158. You say there is a hydraulic brake horse-power of 1,200 horse-power?— Yes. 159. How much will the proposed horse-power provide?—-About 250; but it is in the shape of a Deissel engine, auxiliary power, because sometimes we have dry weather. We have had dry weather for about six weeks. There is 1,200 horse-power available in favourable weather, but there is 250 auxiliary horse-power, which must be obtained to carry out the work economically. 160. Hon. Mr. Fraser.\ It is still required? —It is required as an auxiliary for dry seasons. 161. Hon. Mr. B. McKenzie.] If this power could be used after the work is finished it would be worth something to the Government ?—lt would be worth its full value. 162. Would it be supplementary power?— Yes. 163. How much would it cost you?—l could not give you the figures. 164. Would it cost you £20,000?— With the pipe lines, over £20,000. 165. The Otira and Beailey are objectionable places to work in at all times, but especially during winter-time? —I would not say so. I never knew a more healthy place in the winter-time. It is cold, of course. 166. Do you know whether it is customary for the local bodies and the Government to pay extra wages to the workers in such localities?— The roadmen up there only get 9s. or 10s. a day. 167. Do you know whether the Government are paying higher wages at the Bealey end than at the Otira end ?—I should say they are paying more at the Bealey end. 168. Say the Government are paying 10s. a day, are you paying more than that for your pick-and-shovel men ?—I think the Government are paying more than that now. 169. You ask Parliament to release you from your contract on fair and equitable terms? —Yes. 170. What do you call "fair and equitable terms"? —I am leaving that entirely to yourselves. lam entirely in your hands. 171. Mr. Davey.] Is there any balance-sheet showing the amount of salaries paid outside the wages? —Yes. 172. Have you got it here? —I have not got it here, but we will give you that later on. 173. The Chairman.} Is it not likely that the tunnel-work will be more costly pro rata as you get further in ? —Yes. It will be on account of the transport. 174. What percentage will it be as you get further in?—l would like to go into that very carefully before answering. 175. Are you likely to have more expense on account of water trouble as you get further in? We will at the Bealey end, but not at the Otira end. 176. Which is the faulty end? —There is no faulty end. 177. Do you propose to meet half-way? —We propose to meet where we can. We go right on from the Otira end until we meet the Bealey end. 178. You have the mileage to go on I—Yes.1 —Yes. We will go further into that and give you a state--179. What was the object of proceeding entirely from the Otira end? —The difficulty of the fall and water at the Bealey. In a single-line tunnel you actually do all the work together, as Mr. McKenzie stated. You have to drive your heading for 10 or 15 chains and do nothing else, and then you have to go back and do the widening out and lining. 180. Hon. Mr. B. McKenzie.] Is there any restriction as to how you should carry this work out so far as the engineers are concerned? —No,' I do not think there is any supervision. There is no interference at all. . 181. If you ran your bottom heading right through without widening out, although it might delay the work for a year or so, would it not reduce the actual cost of the work afterwards? —Yes, enormously. . . . 182. You would get rid of the pumping and ventilation, and get all your material right through? Yes, and you would get twice the number of men on, but it would take a great deal longer. 183. Hon. Mr. Fraser.] Would it be safe? —Yes. 184. It is solid rock? —Yes. Occasionally we get some slatey stuff, and then we have to timber it up. . 185. Hon. Mr. B. McKenzie.] I suppose you have to do as much lining as possible to assist your finance? —Yes. 186. The Chairman .] Is not the Bealey end better than the Otira?—lt ia softer, but more costly to work. If you get material moderately hard that will stand without timbering, that is the best. . , 187. You have no trouble so far as timbering is concerned other than what you anticipated at the start? —No. ~,.„... 188. Hon. Mr. Fraser.] You were saying just now that there are exceptional difficulties in working the Bealey end —I do not mean on account of the water or fall, but because there was only a single line,'and after heading a certain distance you have to go back and line: is it not the'same at the Otira end? —No; that is on account of the water. 189. Mr. Veitch.] You will give us an estimate of the salaries and wages mentioned by Mr. McKenzie ? —Yes. 190. Mr. Nosworthy.] Did I understand Mr. McKenzie to say that as a matter ot finance it would be better to take the heading right through?— Yes,