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No. 2. The Chief Engineer to the Geneeal Manageb of Eailways. Chief Engineer's Office, Working Eailways Department, Wellington, 19th March, 1895. (Memorandum.) Maintenance Shops. I have read Mr. Scott's memorandum of the 31st December, 1894, as you requested me. In my memorandum of the 17th January last I have stated the objects in view in keeping the means of doing maintenance work in the hands of the Maintenance Department, and the great objection of making the Maintenance Department entirely dependent on the locomotive workshops for obtaining prepared material for the works. I have no hesitation in saying that Mr Scott has overstated the case. Moreover, while he held office as Commissioner he had many opportunities of representing to me what he has written here, but he did not do so. This memorandum represents his view that the maintenance operations are extravagant in the directions indicated. He never once hinted at such a thing to me, nor suggested the need for an alteration. J Henby Lowe, The General Manager Chief Engineer

No. 3. The Locomotive Supeeintendent to the Genebal Manager of Eailways. Locomotive Superintendent's Office, Wellington, 9th July, 1895. (Memorandum.) Mr. J L. Scott's Beport upon the Locomotive Department. In reference to Mr J L. Scott's memorandum dated the 31st December, 1894, addressed to the Hon. the Premier, it is observed that he is generally complimentary about the workshops, both as to the equipment and character of work done. The conversions of class F locomotives to class F a was decided in 1891 by the Eailway Commissioners. Five were converted in 1892, two in 1893, and two in 1894. When Mr Scott was a Eailway Commissioner he had special control of locomotive matters, and in May, 1894, was informed that five first-class F locomotives were under conversion to F a Had Mr Scott the slightest objection to the type of locomotive, or considered it inexpedient in any way to build such engines, he could at that time have stopped the work. He, however, did not raise any objections, nor did he at any time point out any defect in the design. The engines have been very successful, and have saved a considerable mileage. Similarly the L a locomotives have proved most successful in every respect. Therefore I cannot admit that the department has made any loss on these conversions. Mr. Scott's assertion re " the cost of alteration being out of proportion to the value of the work done," &c, cannot be admitted, and, although Mr Scott claims that the causes are obvious, &c, yet, if they existed, he never pointed them out, nor gave any instructions to have them remedied. The " compounding" referred to was approved by the Commissioners, and I am not aware that Mr Scott ever raised any objection to it. The experiments on M9O have been carried out in a fairly intelligent manner, and Mr Scott appeared to be rather interested in them, and requested that they should be continued. I cannot admit Mr Scott's assertion re the cost of new locomotives. T F Eotheram, The General Manager. Locomotive Superintendent. Approximate Cost of Paper. —Preparation not given; printing (1,400 copies), £2 2s. 6d. By Authority: Samuel Costall, Government Printer, Wellington.—lB9s. Price 3d.]

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