our Commission desire further to observe that it is not clear to
them, judging from the published accounts of the South African
Explosives Company for 1895 and 1896, that the Government receives
the proportion of surplus profit secured to it under the contract,
viz., 20 per cent., and would strongly recommend, in accordance
with Article 6 of the contract, an immediate investigation of the
Company's accounts by qualified accountants, in conjunction with the
financial adviser of the Commission, in order to find out what amount
is still due to the Government under this head.

As to railways:--

Your Commission have followed with great attention and interest the
evidence and statistics submitted on this point. From those it
appears that not only are the tariffs charged by the Netherlands
Railway Company such that by the reduction of the same the industry
would be considerably benefited, but that such a reduction would
necessitate that the neighbouring States and Colonies would also have
to reduce their tariffs considerably.

Your Commission have come to the conclusion that, taking into
consideration the evidence submitted to them, and taking the gross
revenue of traffic of goods at about L2,000,000 (as in 1896) it would
be desirable to recommend so to regulate the tariff that the gross
revenue for 1896 would have been reduced by L500,000, equivalent to
an average reduction of 25 per cent. Further, your Commission deem it
desirable that the Government shall make such arrangement as will
secure to them in the future a voice in the fixing of the tariffs of
the N.Z.A.S.M., and express their confidence that as soon as
prosperous times will warrant such a course a further reduction in
tariffs will be effected. Your Commission wish to recommend that the
reduction will be chiefly applied to traffic of coal, timber, mining
machinery, and foodstuffs, according to a scale to be agreed upon
between the Government and the N.Z.A.S.M. Your Commission are of
opinion that in this manner the industry will be met in a very fair
way. Your Commission wish to express the opinion that it is
absolutely necessary that the reduction in all local tariffs will be
brought about as speedily as possible, while they express the hope
that where the co-operation of the neighbouring States and Colonies
is required, negotiations will be initiated and carried out so
speedily that the reductions to be so initiated will come into force
not later than 1st Jan