The Commission's Finding.

The Commission's report, dated 23rd October, 1868, gives a comprehensive review of the matter under investigation, and is supported by appendices showing the various items of expenditure in detail. It explains that the important character and extensive scope of the enquiry caused the proceedings to be of an arduous and protracted nature. The investigations connected with the engineering division of the enquiry were rendered especially complicated owing to the large expenditure incurred without any regular contract or agreement, and in many cases without drawings or specifications, also owing to the difficulty in obtaining the detailed statements originally appended to the vouchers. Many of these statements appear to have been mislaid or lost. Oral evidence was, however, obtained from several gentlemen, who, from their official positions or immediate connection with the construction of the Railways, were most conversant with the circumstances and arrangements. Members of the Executive Government also gave every assistance and facility.

The report states that the first agreement, dated 1st June, 1861, for the construction of six miles of line for the sum of £240,500, the work to be completed in five years from the date of agreement; that is, before 1st June, 1866. The formal contract in the same terms was signed on 2nd April, 1862. In addition to the main line, sidings were to be provided at three stations. The contract covered all works except the station buildings, and provided for the maintenance of the line and works for twelve months after completion. Subsequently it was agreed to pay £5,000 additional for the work required, to give at the Lyttelton end of the tunnel, a straighter entrance than that shown in the contract plans. The line was not opened for traffic till December, 1867, and the work was not entirely completed when taken over by the Provincial Government on 31st July, 1868.

The Commission stated the actual expenditure on the line (omitting interest and the cost of raising debentures, and the revenue obtained from leasing) as follows:—

A total of (say) £348,312.

The Great South line to Selwyn cost £186,758, including extras of £15,008, chiefly the cost of rebuilding the Selwyn Bridge after it was demolished by flood.

The Ferrymead Branch cost:

The Ferrymead Branch was not a portion of the original contract. On the resolution of the Provincial Council that the line should be constructed from Christchurch to Ferrymead, the Super-intendent agreed with the contractors to pay for the branch portion at the schedule rate for the main line. A contract was let for the wharf, and certain buildings in connection with it, for £6,000.

A sum of £12,341 had been spent upon the Lyttelton to Christchurch line before Holmes and Co. undertook their contract.

With regard to the buildings, it was pointed out that with the exception of a goods shed at Christchurch, built under contract by Bailey and Henwood, all the main line stations and buildings had been built by Holmes and Co. without formal contract. No plan for stations and buildings had been adopted at the outset. The works were executed piece by piece on no uniform system, and only as urgently required. For some portions the Government page 51 accepted a price offered by the contractors, and for others paid on a basis of 15 per cent. in addition to the outlay. In this way the cost of the works was increased extravagantly.

The rolling stock was obtained through the contractors, and for this also a charge of 15 per cent, in addition to the landed cost was made. The Commissioners considered this charge excessive, and illustrated that view by quoting the cost of three locomotives supplied on 30th June, 1868, viz:—

To this was added merchant's advance 10 per cent., and engineering supervision 5 per cent., in England and contractor's commission 15 per cent., bringing the price up to £10,694 17s. 5d. The total cost of rolling stock was £43,435.

After referring to the various points of view from which the value of the Railways might be considered, the Commissioners gave a general estimate of value of £456,200 for works which, according to the returns, had cost £520,455. Reference was made to various matters requiring attention. The bridge over the Heathcote, at Opawa, required protection, the piles having been scoured, the Christ-church yard required to be drained, lifted, and ballasted, and the South line had been damaged by running engines weighing over 30 tons on the 65lb. rails. It was recommended that a lighter type of engine be run on the South line.

The station and jetty accommodation at Lyttelton was stated to be inconvenient and inadequate, and until means were provided whereby the cargoes of foreign ships and steamers could be discharged and received direct into and from trucks, the benefits of the railway could not be fully developed. The present incomplete arrangements led to heavy expense in working and added indirectly to the working expenses of the whole railway system.

The engines and carriages were stated to be in fair order, but the wagon stock was urgently in need of overhaul, some of the wagons being hardly fit to run at ordinary speeds. The Commissioners referred to the absence of suitable workshops and machinery for undertaking repairs, and recommended the provision of same at a cost estimated at £2,500.