found, however, that Mr Watson's statement as to the con ditions upon which the concession of L2OO was made was not born out by- his own letter. Although he made the concession he was a gainer by it to. a considerable ex tent. Hq, (Mr Jowitt) had ■ always con sidered that Mr Watson was only entitled to 50 per cent, on the value of the ma terial on the ground. Oapt. Mackenzie had understood that the cylinders were to be allowed to stand against the L3OOO advanced by the Coun cil, until the contract was completed. Mr Mosley said he believed Mr Watson could legally claim 50 per csnt., on the cost of the cylinders so soon as these were laid on the ground. Mr Clarke said Mr Watson had already been paid not only 50 per cent. on the cost of the cylinders, but also 50 per cent, on the sum paid for carriage. The Chairman said Mr Watson, by letter, agreed to pay L2OO on the Council becoming security for payment of the cost of the iron. Instead of the Council be coming security the Council paid the money, and the majority of the Council understood that when the iron arrived it would be subject to the terms of the con tract as to progress-payments. This was all he had explained to Mr Higginson. Mr Watson contended that the L2OO was given on condition that the L3OOO would be given by the Council till the completion of the contract. He had not come to meet the Council or taken up the ground he had taken without proper ad vice, and he was determined to fight for his rights under his contract. He wished to continue on< amicable terms with the Council, but he would have his rights. He had received in all L 3381, and he was now entitled to receive a certificate for Llsoo— the 50 per cent, that was being deducted. j Mr Watson then retired. Mr Clarke said the Council could only endorse the action of their Engineer. Mr Scott thought the. Engineer should be asked to re-consider the matter. Mr Mosley would strongly advise the Council not to cripple the contractor. He would give him a little. 