L-7.

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t>BAB Sib,— Wellington, lOfch August, 1881. In reference to our claims against the Government in respect of the Invercargill and Mataura Bailway, we wish to retain you as a witness for us, and herewith send you a cheque for £10 as a retainer. We do not object to your giving Mr. Higginson any information he may require as to the measurements. Yours truly, W. E. Brunton, Esq., 0.E., Oamaru. John Beo&den and Sons. Also a telegram dated the sth August, which says,— By all means give Mr. Higginson all the information he wants. We shall rely upon you for our compensation claims. —Alex. Bkogden. It appears, therefore that you did retain Mr. Brunton, but consented to his giving information to Mr. Higginson. You know, of course, that Mr. Marjoribanks is dead? —No, Ido not. Do you know that he was one of the Engineers on the Taieri contract ? —No ; he was only an Inspector. Do you know that Adam Johnston, who was employed on the Taireri contract, is dead ?—There were two Johnstons, but I do not know which of them is dead. You knew Mr. 11. Johnston, who was in the employ of Mr. Stout ? —No. You know that he is no longer in the colony ? —I am not aware that that is the case. All I know is that he disappeared from Dunedin just at the time when we wanted him. Do vou not know that Mr. Darnell had been absent in England ? —Yes. Do you know when he returned ?—No; he came down from Auckland with me, but until then I did not know that he had been absent from the colony. You have given us some instances of certificates being unpaid. Now, take the Invercargill certificate. Is that a "progress" or a "final" certificate?—lt was not final, inasmuch as we left some items unadjusted, but, as far as the measurements go, it was a final certificate. But I want to know definitely whether it was a final certificate? —I went to Invereargill for the purpose of settling the measurements, and the matter was final, as between the Engineer and myself, as far as the measurements were concerned. Are you not aware that the certificates had to be revised by the Superintending Engineer for each Island ? —Yes, as a matter of account only. You were paid £1,153 10s. sd. ?—Yes. You were paid the instalment which was certified to be due ?—Yes ; but that was only a parb of the amount certified by Mr. Blackett. Are you not aware that the balance shown upon this is a balance only of progress payments, which were afterwards found to be overpayments ?—No. If upon the making up of the final certificate it is ascertained that you have been overpaid, does not that mean that the amount of the progress certificates exceeds the sum which is found to be due to you on the final certificate? —Yes; but this certificate is given three or four months after the Government have taken over the work, and after we had been told that the progress certificates had been properly revised. You have omitted to state that you have been paid the full amount which Mr. Blackett had certified you were entitled to ?—We were paid £1,153 ; but it is shown upon Mr. Blackett's certificate that there is still a balance of £1,487 ss. Id. due to us, which is retained by the Government for alleged overpayments. The certificate which you tell us you received for the supply of water-pipes on the Auckland Railway was, of course, a progress certificate? —No; the certificate was given for work executed in 1874, and it was not a progress payment. When was the Auckland and Mercer Railway completed ? —ln 1875. And how do vou know that this sum has not been included in the final certificate?—Because I have looked through all our books and have found that it has not been paid. Do you say that after looking at your own books ?—We have a copy of what purports to be Mr. Stewart's final certificate. It is not included in that for the reason that a small portion of the account was in dispute, and he sent the voucher direct to head-quarters to have the disputed portion settled. You cannot say that that sum was not included in the final revise of 1879? —No; I cannot say that; but at any rate I can say that we have never received that money. Then you say it was not included in the balance which was paid to you in 1879?—"We have no details in connection with that payment, and therefore I cannot say positively; but lam quite certain that we have not had the money. Then, if you found that you had received the money you would be surprised ?—I have no doubt when we do get the detail showing how the amounts in the February statement have been arrived at we shall be very much surprised. You say you have not been allowed or paid 10 per cent, on the reductions ?—Yes ; this voucher of Mr. Blackett's shows that. Then you, standing here as the representative of Messrs. Brogden, tell the Committee that you have not been paid 10 per cent, on the value of all works which were deducted from your contracts ? > I say we have not been paid the 10 per cent. And you say that you have only been allowed the 10 per cent, for the telegraph on the Wellington and Hutt Railway ? —Yes. And the Wellington and Hutt Railway is the only one which has actually been settled for with you by the Government ? —That line is still as open to dispute as any of the others: no final receipt has been given. It has been understood that the Wellington and Hutt line has been finally settled for ? Yes, practically it is. We have made no claim, nor do we intend to do so. And you find that you have been paid 10 per cent, for the telegraph line and 10 per cent, also upon all deductions ?—We received 10 per cent, for the telegraph, but I am not sure about 10 per cent, on the deductions.