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allegations against Inspector Campbell, has been brought under the notice of the Minister, who desires to have a report from you thereon for his information. Will you therefore kindly report on the matter at your early convenience accordingly, after personally examining into the several matters complained of as far as possible, and interviewing the contractors on the subject in the presence of the Inspector. William H. Hales, Acting Engineer-in-Chief.

No. 3. The Resident Engineer to the Acting Engineee-in-Chief. Public Works Office, Palmerston North, 12th May, 1891. The Acting Engineer-in-Chief. Be Mangaonoho contract—complaints against Inspector Campbell: In reply to your memorandum No. 88/1075, of the 14th ultimo, as directed by you, I have personally examined into the several matters complained of in the contractors' letter to me of the 21st March, and interviewed them at length on the subject in the presence of the Inspector on the 24th ultimo. Without going into the detail of the various allegations the contractors were unable to substantiate any of them, and admitted that they had written the letter under the irritation produced by the rejection of their materials. On my pointing out that Mr. Campbell had simply done his duty, they confessed tohaving been hasty in their action, and afterwards wrote me to that effect (see copy of letter herewith). I had, previously to the receipt of your memorandum, satisfied myself that the allegations were groundless, and wrote contractors accordingly (copy of my letter herewith). At the outset of the contract, Mr. Campbell had the unpleasant duty of rejecting materials which were unquestionably bad. This action was resented by Mr. Forrest in a very objectionable manner, hence much friction arose and the contractors' letter. I have found Mr. Campbell to be fair, zealous, and courteous in manner. He has acted with my entire approval, and I have complete confidence in him. G. L. Cook, Eesident Engineer;

Enclosure 1 in No. 3. Messrs. Cleghorn, Forrest, and Magee. Palmerston North, 26th March, 1891. In reply to your letter of the 12th instant, making complaints of Mr. Campbell, the Inspector appointed to supervise your Mangaonoho contract : Haying myself inspected the material condemned by Mr. Campbell I think he was justified in his action, and that you yourselves are solely to blame if you have sustained any loss. In stating that Mr. Campbell has personal bias against Mr. Cleghorn you are entirely mistaken, but in stating that his bearing is tyrannical, abusive, and uncivil, you are making a serious charge against an official of long service and high character, and I cannot but think you have misconstrued his manner and remarks he may have made under irritating circumstances, as I am sure he is incapable of such conduct as you attribute to him, and is actuated by noother desire than to see the contract faithfully carried out. It rests entirely with yourselves that the contract should go on without friction, and this is to be done by carrying on the works in accordance with the specification. I hope you will see your way to meet the wishes of Mr. Campbell in future, as I am satisfied that he will not call upon you to do other than you have bound yourselves by contract to do. G. L. Cook, Besident Engineer.

Enclosure 2 in No. 3. Sib,— Eangatira, 27th April, 1891. Since Mr. Campbell has been regularly upon the works things have been working satisfactorily, consequently we have no desire to press the charges against him further. After more mature deliberation we think we were hasty in making the charges, and, with your permission, we now beg. to withdraw them. Trusting there may be no occasion to cause you further trouble, We are, &c, G. L. Cook, Esq., Resident Engineer, P.W. Cleghobn, Forbest, and Magee. Approximate Cost of Payer.— Preparation, nil; printing (l,:iOO copies), £1 ss.]

By Authority: Geohge Didsbuby, Government Printer, Wellington.—lB9l. Price 3d.]