Your 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 January next. Several witnesses and some of the Commission have urged the expropriation of the N.Z.A.S.M. by the Government. Your Commission, however, for several reasons known to them, and after same have been communicated to those members of the Commission who wished to urge the expropriation of the N.Z.A.S.M., do not at the present moment desire to urge expropriation provided by the other means terms can be secured from the Company so as to obtain the reduction at present urgently required on the basis as above set forth.