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Mr. JJobson. 329. Is that all the evidence of title the contractors had ?—Yes. I should think it is evidence . enough. 3rd ~D,c, 1877. g 3O s U pp oS i n g the tunnel had gone through a coal mine, would the contractor have had the right to the coal he brought out?— Certainly. 331. Is such a specification usual?— Yes; unless there is a special provision. 332. Supposing a contractor comes across a gold mine?—l believe gold is reserved to tbe Crown ; but when a contractor comes across ordinary material, whether it be valuable or not, he has a right to it under the common law. If tbe stuff turned out to be sand and mud, be would have to dispose of it; and if it were good stuff he got the benefit of it. 333. If it hid been sand and mud, would be have been allowed to put it into the harbour?— No. 331. And he would have had to provide other stuff for the reclamation?— Certainly. 335. Mr. Swanson.] There were progress payments on the tunnel work?— Yes. 336 Was there any in respect of this embankment in dispute?—No; because the claim was not recognized. In the first place, however, tbe contractors did not ask for money for some years, and when they did, the claim was not recognized. 337. What was tbe percentage paid on the contract?—9o per cent. 338. When was the first claim made in respect of the work ?—ln 1865. 339. How much of tbe work was then done ?—About two-thirds. 340. Was two-thirds of the other work done before any money was asked for ?—Yes. 341. Was it not calculated to be a surprise for the Government? —I think that is a question you should ask the Government. 342. Were you not at that time tbe brains and eyes of tho Government, and did it not come as a surprise upon you ?—lt did. 343. The Government had no chance of coming to an understanding with tbe contractors I —Well, I did not want to stop tbe work. So long as the contractors would give us good stuff for nothing. I did not object to it. 344. And did you warn tbe Government of what was going on ?—No. 345. Did you consider tbey were doing right I —Yes. I thought the more tbey did for us on such terms the better. 346. Do you think tbey are entitled to anything extra?—l think they have a legal right. 347. Do you not think it was your duty to have warned the Government—to have told them these contractors were doing so and so, for which they had no authority, but might want payment by-and-bye? —I do not think it was my duty. I did not know then there would be any demand for payment, and as theywere doing us good, I did not object. 3 18. But supposing a man, unasked, does you a good deal of good, and then pops in a bill, what would you do ? Would you pay him ?—lt would depend upon circumstances. I should examine into the claim, and see whether it could be legally claimed or not. 349. Would it not have been better for you to say to the contractor, " Well, you are doing this, but I never asked you to do it, and lam not going to pay you for it?" Would it not have been better if you, as acting between the Government and the contractors, bad bad an understanding on the subject ?—No. If a contractor likes to put bis spoil where it will do me good, I am perfectly satisfied. 350. But supposing he comes afterwards, and wants money—would you be satisfied then ?—I am satisfied in this case that tbe contractors ought to be paid something. 351. Hon. Mr. Richardson.] You said just now, in reading the specification, that we were to be supplied with land upon which to put this material ?—Yes ; that is so. 352. As we were not stopped from putting material upon that land, had we not a right to suppose that the Goverument had no objection to our using it?— Temporarily, but not otherwise. 353. Exactly. Was it during your time, or was it during tbe short interval that Mr. Aiken had charge of the harbour works, that we were stopped from selling ballast?—l think you were stopped from selling ballast just before tbe wharf contract was made. 354. Do you recollect that we were selling ballast, and that we put a small jetty up I —l do not know about that. I know Mr. Holmes asked me if you might sell ballast, and I said, " No." 355. Are you not aware that we did sell a considerable quantity before we were stopped ?—No. I believe you sold some, but I do not know this from personal knowledge, and I have no idea of how much was sold ; but Mr. Holmes told me be was selling ballast. That was just about tbe time tbe wharf contract was being let. I then took a stand, and said I could not let any more be sold. 356. Do you remember Mr. Holmes saying we had an offer for tbe whole of tbe surplus material from Mr. Wright?—l do not. 357. You did not know that Wright offered us a price for tbe whole of the stuff ?—No. 358. It was after that date, was it not, that we sold the Government some of the stuff for the Christchurch yard ? —Yes. You did not soil any of the stuff till the station was fit to be opened. 359. Was it sold at a price which would merely pay for tbe labour of handling it, or at tbe ordinary market price for such material ?—lt was simply sold at the ordinary market price. There was no consideration as to where the stuff came from ; it was simply a question as to what was the value of broken metal. 360. Do you remember that, after the work was finished, tbe Government invited us to tender for the supply of some of tbe material in Lyttelton ?—[ think there was some correspondence on tbe subject. 361. We did tender, and our tender was accepted ?—Yes. 362. It has been repeatedly said that the £5,000 agreed upon to be paid was to cover the whole of the work. I want to ask you this—Was it ever intended to cover tbe cost of reclamation ?—Not in my mind. Almost immediately after I received verbal instructions from tbe Executive I made out working plans, and then submitted them to you, in order that there might be no mistake as to what was to be done for the £5,000. 363. And there was nothing about reclamation in them ?—No. My idea was that the line was to run straight out.