From G. L. Dennston, Merchant, Dunedin.

In response to your request for an expression of opinion as to the merits of Railway Management for this Colony by a non-political Board versus management by the Parliament and Ministry of the day. I have no hesitation in recording my opinion in favour of the former. I look on the Railways as a huge business, the most important and representing the largest investment of capital in the Colony. To manage this business so as to realise the best results requires a combination of expert knowledge and knowledge of general business principles, which while difficult or impossible to find in one man can be combined in a Board. When this combination has been secured the business should be managed with the single aim of making it efficient, giving to the public the maximum service at the least expense. This can only be accomplished by excluding every disturbing element, and I cannot conceive of the political element being introduced unaccompanied by such disturbance. Managed under the existing system there is no temptation to run the business otherwise than on the strictest business principles, and the reputation of the managers is concerned to show the best possible result. Under a political system the temptation to exercise patronage without regard to efficiency, and to secure political support by placating present supporters and endeavouring to gain fresh or dubious votes by the granting of railway favours is almost too difficult to resist. Politicians have been agitating for a change on the ground that the people desire and claim the direct control through their Representatives of every department of public business. I do not believe that such a feeling is general, and except for the gratification of this sentiment I have heard of no argument on the other side I see much to lose and risk and nothing to gain by a change, and am sure the common sense of the country is against it.