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weffind that at no time the city's representatives went openly and candidly to the borough representatives to discuss the matter ; this we consider an aggravation of the original shortcoming. Finally, and worst of all, when the solicitors for the borough had, quite properly in our opinion, sent back a draft deed of delegation objecting to the inclusion of an entirely new and onerous covenant to be observed by the borough, the City Council by letter cited " the refusal to sign the deed of delegation " as the reason for not proceeding with the extension of the tramtracks. This letter was read in evidence, and speaks for itself. We agree with the contention of counsel for Mount Eden Borough that the new and onerous covenant that was inserted in the draft deed of delegation was inconsistent with the basis on which the previous negotiations had been conducted. Such a happening was bound to make for mistrust and strained relations. (For the evidence on this point see pages 78 and 79 of the Book of Evidence.) General. We have now marshalled the various facts to which we wish to call attention, and on which we rely in supplying a complete categorical answer to the questions submitted. We therefore proceed to supply the answers. 1. Is the Existing Transport System suitable to the said District ? Answer. —The only evidence submitted was that which indicated that, geographically and topographically considered, Auckland and its environs form a locality that lends itself naturally to a system of tramway and motor-bus transport for passengers. On the other hand, the representative of the New Zealand Railway Department, Mr. E. Casey, gives it as his evidence —and it was the only evidence on the point —that it is not particularly suitable for the development of suburban railway traffic, and that his Department bases its policy on that view. Taking all branches of the transport system into account, our answer to this question is "Yes." 2. Are the Existing Transport Services adequate for the Requirements of such District ? Answer. —Our answer to this question is " Yes." This answer is subject to the qualification that the evidence satisfied us that the tramway extensions which in the past have been recommended by the Tramways Committee of the Auckland City Council are justifiable and should be undertaken at once. These are the proposed extensions detailed on page 35 of the Book of Evidence. 3. Is the Present Transport System of the said District Efficient ? Answer. —We would answer that so far as the railway branch of the whole system is concerned the question of its efficiency was neither affirmed nor denied, and we are content to assume that it is efficient. With regard to the tramway service owned and operated by the Auckland City Council, we answer that the evidence has satisfied us that the policy of the Council has been sound, and that it has been on the whole wisely carried out, and has produced an efficient and satisfactory tramway service. We have already in part, in the historical survey which preceded these answers, given some of the grounds on which this answer is based. We beg leave in this connection to refer Your Excellency again to the schedule of figures detailing constructional work and improvements generally (see Appendix G hereto). Many charges were levelled against the city's administration of its tramways, and the investigation of these comprised no small part of our lengthy sittings. We think it desirable that we should state in detail our answers to each of the charges made against the City Council's administration, with a brief setting - out of the reasons that have led to those answers. As this statement must be a fairly lengthy one, we propose to bring it under Your Excellency's notice as Appendix E, so that it shall not interrupt or overload this portion of our report. The charges and our findings in this appendix will be grouped under the headings suggested in Your Excellency's questions — namely, Administration; Equipment; Working and Finance. With regard to the motor-omnibus service it is not so easy to give a

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