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39. Are you aware that that is the system in America? —I have read, but cannot verify what I have read, that it has been giveu up. Tickets might be sold away from the station, if sold according to number. 40. I believe that there are certain printed instructions issued to employes on railways?—Tes. Those instructions are in force still. 41. Who is the author of them?— They are the instructions in use over all railways. As to the actual drawing out of them, there was one book in Canterbury, another in Otago—a copy of the Victorian and English rules. These were handed over to Mr. Conyers, or Mr. Pasamore, who collated them. 42. I understand Mr. Conyers or Mr. Passmoro classified the instructions ?—Tes ; I think it was both or either of them ; Mr. Passmore and Mr. Conyers, or Mr. Warner. Ido not know exactly which two of the three. 43. There was one regulation that guards had to stand at breaks to give assistance when necessary. Do you know that it has increased the expenditure ? —lt has involved considerable increase in the expenditure. 44. Do you know the amount? —I do not. Perhaps £3,000 a year. 45. Is that rule in force now?— Some instructions have been sent round during the past few days. 46. "Will you state what steps have been taken ?—The Minister for Public "Works has sent out instructions that those men should do porter's work. No instruction has gone saying that there is not to be a guard to go with a train. Now they will be able to do other work. 47. What other work? —I do not know. I look upon it as absolutely essential that no train should run without a man at the break. Without a guard the train is placed in a dangerous position. Even if it cost £3,000 or £30,000 it should not be discontinued. 48. There was another rule about men being at facing points when a train was passing. Has that been modified ?—No ; I do not think any additional expense is occasioned in consequence. 49. Are you aware that that rule is not being carried out in Canterbury?—l have not heard that it is ignored. I have seen in the papers that it has not been ignored. An engine-driver to run through a facing point without anybody holding it should be dismissed, or reduced in rank. In England, in order to avoid facing points, lines are run in different directions, so that no train will run through facing points. Of course, in single lines the points must face one way. I should certainly recommend the dismissal of an engine-driver who would run through a facing point without some one holding it, especially if there were passengers in the train. I believe that drivers do not run through facing points now, assuming that the facing point was not locked. 50. Did not some managers oppose that rule when it was promulgated ? —No. 51. With regard to the men walking over the lines, what is the length of line to one ganger?— About four miles. 52. Never six ?—Perhaps not; but if it were six miles one ganger would not have to do it. If a man has got six miles to look after, he can send a man to go over each mile. Generally the men have to go over a great deal of it in order to get to their homes. 53. I would like to ask you if you are in a position to state whether there has not been a great falling off in the proceeds or returns of the railways by the adoption of the new system ?—I do not think there has. I have not had time since it came into force to look at the returns. 54. The opinions you have expressed iv the report, and the opinions you have given here are simply those of an Engineer, not a Manager ?—Tes. My experience is as a Civil Engineer. 55. The business of Manager is a peculiar one, is it not. That is to say, it is quite different from that of Constructing Engineer? —Tes. I am not a General Manager. 56. Are you aware that the General Manager of the Great Pacific Railway is not a Civil Engineer ?—I do not know; but on the Galena aud Chicago, the Detroit and Milwaukee, and other American railway lines, the chief man on each was, when I was there, a Civil Engineer. 57. Do you know of any Civil Engineer who is also Manager of a railway ? —I am not aware that any Civil Engineer is a Manager of a railway. 58. Mr. Stevens."] The first question I wish to ask you, Mr. Carruthers, will have reference to the working of the system of audit of the Railway Department. My question is: Does the central system of audit work satisfactorily ?—lt would be an enormous expense if we had a separate system of audit for each railway. 59. Do you consider the present system of audit causes any delay in the payment for stores or things required in the working of the line? —No, not at all. I think there is a good deal of misconception with regard to the working of the system of audit. If there was a separate audit at Dunedin and another at Auckland, the whole of the information sent in to the audit would have to be sent to one place, or the Minister of Public Works would not know what was going on. A dozen more men would have to be employed; and all the data and statistics would have to be forwarded to one head place. The Government must be kept posted up in the information about the statistics. By having separate Audit Offices at each place, officers would require to be paid large salaries, for they must be men upon whom the greatest trust could be placed —men above suspicion. Such men would be required at every central Audit Office. 60. If the Railway Department purchased £1,000 worth of coal, how long would it take before the vendor would get his money ? —I cannot answer lhat question off-hand. 61. Could it be a fortnight?—lt might. 62. Cmild it be a month ? —I cannot say. 63. My object is to ascertain when the money would be paid?—A large item like £1,000 worth of coal would not be likely to be purchased in a hurry. 64. The question is, when the vendor would get his money?—l cannot answer that question. I can give you the information to-morrow. 65. I ask for the information owing to actual facts that have come within my own knowledge. Would it be possible that, owing to delay, a large quantity of coal could actually be consumed before

Mr. Camithers,

17th Aug., 1877,