SUMMARY. FOR EUROPE AND AMERICA.

Lyttelton Times, Volume XXX, Issue 2376, 4 August 1868, Page 1 (Supplement)

SUMMARY. FOR EUROPE AND AMERICA.

A quaint writer has said " there be

| periods when great things are a-doing, I and others when great things are 1 a-hatching." The past month has been I of the latter sort, and when we come i to reckon up the items we find that | there is very little to record. i Giving the precedence to matters of j colonial interest, we have to note the I opening of the usual sesiion of the | General Assembly on July 9, The ! Governor's speech will bo found in I another column, and those whg are sufficiently interested in New Zealand politics to read it will perhaps find some curious specimens of English grammar; more than this, we cannot promise them. Several questions are conspicuous because they are not even alluded to, and others are dealt with in f a manner eminently characteristic of the Premier. Among those wholly omitted, the Native question is by far ; the most prominent, as will be tully understood when we come to speak of the position in which Native affairs now stand. As the Governor's speech indicated no general outline of a policy which the Ministry were prepared to staud or fall by, as in the debate which took place when the address in reply was under consideration, they still gave no sign, it is not surprising that membersbegan to manifest considerable impatience, and to ask what Mr Stafford intended to do. It was not till after Mr Fox's arrival at Wellington that the murmurs of impatience took definite shape. The Opposition members were waiting for their chief, who did not take the oaths and his seat till the Assembly had been in session nearly a fortnight. Meantime the Government had brought id several bills of no great importance, if we except the Eoads Bill, which has been very aptly described as the ghost of the measure brought forward last session under the title of the Local Government Bill. Mr Fox had taken his seat in time for the motion to proceed to the second reading, and was able to secure its relegation to a Select Committee. The appointment of this committee forms an episode in the history of Colonial Government which it is necessary to record. Mr Stafford proposed a committee which included twelve names. Ten of these were known adherents of the Government; and, as the Bill in some way involves the points at issue between the < Central and Provincial parties, this attempt to pack the committee in favour of the views held by the former was very properly resented. Both Mr Stafford and Mr Hall admitted that certain prominent men of the Provincial party had been purposely excluded particularly Messrs Dillon Bell and Yogel. Ultimately, the committee was fixed on by ballot of the House, when it was found that these gentlemen stood respectively first and second on the list. In this manner did the House shew its determination to have both sidesrepresented, and its strong condemnation of Mr Stafford's attempt to stifle the voice of the Opposition. Unless we greatly overrate the importance of certain events in the North Island, the colony is agaiu entering on another war with the Natives. A week or two ago we were Btartled by the intelligence that the Natives had murdered several Europeans in the Patea district, between "Wellington and Taranaki. It was only those that had watched closely the policy of the Government who were aware that Patea was the place at which Colonel McDonnell with a considerable portion of the Armed Constabulary was stationed; that it was, in short, a military outpost on the borders of settlement, in the very heart of a disaffected district, and upon a portion of the confiscated lands. The murders we have referred to were followed by a more serious manifestation of Nativehostility and daring. Colonel McDonnell, on application to the Government, was authorised to raise about three hundred volunteers for special service. A Binall party of these men, stationed in an outlying redoubt in the Patea district, were surprised by a band of Natives in the grey dawn of a Sunday morning, and nine of their number, including the officer in command, were butchered and mutilated. A few escaped to a neighbouring redoubt, and the position was gallantly defended by four men till assistance arrived. While these events were taking place in the Patea district, news was received that the Hau-liau prisoners, who were supposed to be in safe keeping on tl.e Chatham Islands, had effected their escape and reached the mainland somewhere in Poverty Bay. Such was indeed the case. So far as we are informed, it appears that these men overpowered their guard, seized a schooner lying in the adjacent harbour, and compelled the European crew to set sail for New Zealand, which was reached in due time. Altogether, about 200 prisoners are supposed to have escaped. On landing, they entrenched themselves in a strong position, and it appears that they had somehow contrived to secure a full supply of arms and ammuition. How they came by these is yet unknown, After remaining a day or two in the stronghold they had selected, the runaways endeavoured to move inland, with the view, probably, of quietly dispersing. It appears that they were successively attacked by two detachments of the Colonial Defence Force, assisted by some friendly Natives, and we fear it will turn out that the

fugitives lmd tlio best of the light on both occasions.

Lite almost simultaneous occurrence ot these events, and the rumour that a Native outbreak was also expected in the Waikato district, naturally lod to questions in the House as to what policy the Ministry intended to adopt ■ 111 dealing with the Maoris. No satisfactory answer was received, and on lhursday last Mr Fox moved a resolution in which the House was asked to declare that it is inexpedient to proceed with minor business till Ministers have declared their intentions in regard to constitutional reform and Native affairs. The debate on this resolution is still pending, having been adjourned from Friday last till this evening. In moving the resolution, Mr Fox pointed out that the Government have no policy beyond the hour, that the colony is drifting no one knows whither, and that Mr Stafford and his colleagues have adopted the common trick ot seizing the name of their opponent's policy, and carrying out, under it, a totally different one. There is actually 110 policy before the House. Mr Stafford replied to this, denying that lie had attempted to sap the power of the provinces, and appealing to the Superintendents in the House to bear him out in his assertion. He would not attempt to revolutionise, but, by dealing with the altered requirements of the colony gradually, put a pillow under the dying provinces. He declined to say what his Native policy was, on the plea that the Natives would become acquainted with it in a few days and so shape their own course, but he wound up in a strain which smacks strongly of war. So matters stand for the present. The result of the debate will no doubt be transmitted to England by the Panama steamer leaving Wellington on Saturday next.

The Provincial Council met for a short session on the same day that our last summary was printed. There was very little business to transact, aud members were released in less than a week. Last Panama pail would convey to our English readers the news that Messrs Holmes and Co. had deemed it necessary, for the protection of their own interests, to close the t-unuel at a very short notice. Those who are sufficiently interested will find the reasons for this in the correspondence between the Government and Messrs Holmes, and it is not necessary that we should deal with the subject farther than to say that the tunnel having been satisfactorily finished in the interval, was again opened for traffic on July 28, The railways were finally handed over to the Government on August 1, and the outstanding claims of the contractors will, it is hoped, be amicably arranged. The Canterbury Financial Eeform Association, about which we have spoken in former summaries, held a public meeting in the Town Hall on July 6, when a very elaborate report on Colonial finance was submitted by the working committee. In this report the actual financial position of each province, so far as it could be ascertained, was clearly exhibited, and certain recommendations were made for a re-adjustment of the financial relations between the General Government and the provinces. The report has been well received by the public, aud it is not improbable that it may form the basis ot beneficial reforms, when the time shall have come for these to be carried out.

The Waimakariri has agaiu tlireafctened to pay Christchureh a visit, and Dr Hector, Colonial Geologist, was sent for to add to the number of prescriptions on this troublesome subject. In a very sensible and business-like report, he pointed out that Christchurch is iu imminent danger, and that tho protective works already erected are insufficient. He recommended Ihe construction of additional embankments, and it is understood that the Government have practically adopted the plan laid down in the report. One suggestion made by Dr Hector deserves to be specially noticed. Ho advises the formation of what In? calls a storm-channel along the North Town Belt, hatwgen the Avon mill and the Church of England cemetery. By placing a sluice-gate at the former point, a great portion of any surplus water which found its way into the Avon from the Waimakariri could be prevented from flowing into the heart of the city, and by this means the damage resulting from inundation would be avoided. The Borough Council have not yet attempted to discuss the subject, and it is probable that nothing further will be done till the General Assembly has disposed of a Bill sent up by the Provincial Government, in which the question of river conservance, as it affects tho province generally, is dealt with. We are sorry that we cannot report favourably on the subject of pleuropneumonia. Cattle continue to die, or to be killed in the infected district, and it is feared by some that the disease will extend to other parts of the province. -Meanwhile, the Government are doing their utmost to localise the disease, and to prevent it spreading,

The news received from the Auckland goldfields, from time to time, has had the elFcct of decreasing our population very slightly. There can be no doubt that unusually rich quartz reefs are spread over a large area of the Auckland province, and it is probable that Yictorian miners will flock thither in considerable numbers. There is, however, a counter-attraction for these in some recent discoveries in the neighbouring colony of Queensland, and the sanguine expectations of those who look to a large digging population as the sure prelude to the revival of Auckland may not be realised.

SOCIAL SUMMARY. A fire broke out at Aknrna on July 7, which resulted in the totul destruction of the dwvlling-hmisc anil store occupied by George Porlor, at Duvaucliello Buy. The total population of tlie Colony, as estimated by tlio Registrar from the census of 1867, is 218,637, including natives. The number of sheep in the colony is nearly eight millions and ut half. On July 28, the works in the tunnel having been finally completed, the line was thrown open to the public, and traffic was resumed. Six trains each way are now running between Lyttelton and Christchureh. On Sunday, July 19, the Rev W. J. Ilabens addressed an audience in the theatre, Christchurch, Ilis subject was, " Turning over a new leaf," and the discourse was listened to with attention by upwards of three hundred persons. It is the intention of the Government, after the arrival of the next batch of immigrants at the barracks, to exclude employers for at least two clear days, in order that the immigrants may have time to recover from the effects of the voyage.

The supply of the paper mills in Sydney and Melbourne with New Zealand flax for conversion into printing paper, is receiving considerable attention in Auckland. The Provincial Gazette contains letters on the subject, showing that the raw material can be supplied at a price which will command the markets referred to.

On July 23 a ploughing match came off at Prebbleton. There were fourteen entries and prizes, amounting in the aggregate to nearly £SO, were distributed in the following order : —First class, J. Pannett, 0. Taylor, J. Middlemiss, T. Stokes, "W. Brooke, E. Button. Second class,—G. Taylor, J. Mathews, E. Jiles, G, Marsh, and J* Kerboy. The body of the unfortunate man Ross, drowned in the Waimakariri, on June 12, has been discovered in a very decomposed state, upon a spit in the rivet', upwards of a mile below where the accident occurred. An inquest has been held, and a verdict returned of " Found Drowned."

On July 28 a stock driver named George Mansfield, recently in the employment of Mr Grigg, was found in bed with his throat cut, The result of the Coroner's inquest was, that the deceased committed suicide whilst labouring under temporary insanity. The deceased was a native of Hobart Town.

A new Land Building and Investment Society has been formed in Christchureh, and the rules of the previous society adopted with some slight amendments. About 300 shares have been taken up, and the following officers were appointed: Trustees—W. Wilson, Col. Packe, 11. E. Alport, John Anderson, E, W. Bishop, and John Ollivier. Treasurer—W. G. Brittan. Secretary—C. Allison, senr. The additions to the school building at Kaiapoi are now completed and render the school about double its original size. The new portion appears to be well and substantially built, and will doubtless add very materially to the comfort of the children during the ensuing summer. The additional part is divided from the original building by folding doors, and will enable the school to be kept on the ' separate' system instead of ' mixed' as formerly. The Sunday School Teachers of Lyttelton have agreed to form an Association for mutual conference, prayer, aud help in their work, Monthly meetings for these purposes have been resolved on, and are to be held on the sacond Friday in each month, at each of the several schoolrooms in rotation, In addition to this, a short course of lectures is to be delivered during the present winter, primarily for the benefit of the Sunday School teachers, but offering free admission to all wlii feel interested in the subjects. The annual meeting of the congregation of St Andrew's church, was held on July 22. The statement of accounts by the'treasurer, Mr Gourlay, was received, and an abstract of it ordered to be printed for circulation among the church members, A cordial vote of thanks was passed to Mr Edward Reece for the liberal terms on which he had provided and set up the gas fittings for the church. The former financial committee was reappointed, with the addition of Messrs R. Black and Irvine,

The annual meeting of the Akaroa Literary Institute was held on July 1. I'he accounts were passed, and the balance-sheet shewed a balance in hand of £3O lGs sd. The total number of books in the library was 820 vols, and the total number of subscribers 4;, The following officers were then elected for the ensuing year, as follows, viz : President, Mr S. Watkins; vice-pre-sident, Mr James D. Garwood; committee, Messrs R, C. Latter, C. L. Wiggins, C.W, Bridge, W. fimms, Jns. Murray, J. B. Chadwick ; secretary and librarian, W. M'Donald. Oil July 31 the annual ploughing match took place at Kaiapoi. There were twentythree competitors, and nine of the ploughs of a local manufacturer—Keetley, were used against seven Ilornsby's, four Barrowman's, two Grey's, and one Anderson's. The prizes were awarded as follows Champion Swings —J. Scoon, Keetley plough, gold medal. Champion Wheels—lvlussen, Hornsby plough, gold medal. Wheel class.—Ladbr'ooke, 1; Judson, 2 ; Braddick, 3 ; Hornsby ploughs, Swing class.-W. Birnie, 1; G. Traill, 2 ; Barrowman's ploughs; I), Coutts, 3 ; Anderson plough, Boy's class.—Bnrnett, 1; A. Ellis, 2 ; Bergan, 3 ; E. Duffal, highly commended.

The Provincial Treasurer's statement of accounts for Ihe quarter ending June 30, has just been pnblishe I. The receipts during tlie quarter amounted to £260,315 9s -id, inchl'l ing, among many small sums, £+f,lo6 Is on account of land revenue, £5592 on account of Westland contribution, and £190,000 on account of tho Canterbury loan of 1862. The expenditure during the quarter amounted to £27,672 10s sd. To this must be added £11,943 3s 3d, balance against the province at the Bank of New Zealand on March 31, 1868, now repaid. The balance in hand, on June 30, was £182,546 6s Id. But this balance is reducible by £51,929 17s Id due to the Bank of New Zealand. Payment of this is deferred until a vote of the Provincial Council has been passed, The half-yearly meeting of the brethren of the Ancient Order of Foresters was held at the Foresters' Hall, Lyttelton, on July 7. The district officers present were H.C.11. Allwright, D.S.C.It. Pine, D.T. Crooks, and D.S. Allison. Credentials were handed in by delegates 2309 P.C.I!. Hobbs, and C.li. Hudson, and 2703 PD.C.H. Willeox, and 1'.0.U. Sutton. The application of Court Pride of the West, Ilokitika, to join the district was duly accepted. The treasurer read his financial report of goods sold and in stock, and also a list of goods required. He was instructed to forward the sum of £6O to the Executive Council of the High Court of Kngland by next mail for goods required. A Iter some other business of an unimportant nature had been transacted, the D.C.H, closed the ('ourt in the usual manner.

On July 21, (>ii(! of the workmen employed by the Borough Council in clearing the river, discovered the body of a man lying fine downwards in about four feet of water, immediately below Stevens' mill, nc:ir the Carlton hotel. Prom enquiries, we learn that the deceased's name was Arthur Watts, and that up to Friday lie was employed at the mill above-mentioned. On that day whilst at work, his hat was blown oft by the wind, and he was seen to Hollow it, which ut the Inst known of him alive, lie did not return to tho mill, but being often in the habit of going away for a day or two together Ho inquiry was made for him. We understand that he has been but a few months in ihe province, and is a married man. When found, his trousers were rolled up to the knees, and his shirt-sleeves up to the elbows, just as they were when he was at work. At the inquest held on the following day a verdSeo of' Found Drowned' was returned.

An ornamental lamp has been erected at the junction of Casliol and High streets. The design o£ the stonework is triangular, and consists of a foundation about IS inches in height, from which rises a pannelled base of about five feet, having a lion's head emitting a strcnm of water on tlio north sido, the whole being surmounted by a projecting cornice in the centre of which the lamp is fixed. It was designed by the City Surveyor, and with the exception of the lamp post appearing somewhat too massive, and a lion's head being scarcely so suitable as would that of a dolphin for a fountain, may be pronounced very satisfactory. The whole cost of the stonework lias, we understand, been £44105, which the immediate residents have subscribed,

The labour gang are proceeding very rapidly with the straightening of the north bank of the river Avon between Victoria and Colombo street bridges, Almost the whole of the projecting portion has been levelled to within a short distance of high water mark, and the new slope of the bank is being sown with Knglish grass, a proceeding calculated to greatly improve not only its appearance, but also its capabilities of resistance against any scouring of the river. That portion of the bank nearest Victoria Bridge has been faced with the stone granted for that purpose by the Government, and is so formed as to direct the stream into the intended channel without any abrupt turn or projection. From what is now visible the work, when completed, will greatly improve the appearance of the river,

From several cases which have come before the Resident Magistrate lately, it appears that attempts have been made to defraud the Government, by bringing out from England married as single women. The mode of procedure appears to be this, Some person in the province applies to have A, described as a single woman, brought out. The application is granted, and, in two cases at least, it has turned out that the single woman had a husband along with her, who has very properly been compelled to pay the passage money of his wife. The Government bring out single women to the province free, and these" dodges" are resorted to for the purpose of securing a passage for nothing. We do not, of course, say that the persons making the application to the Government here, were aware that the',persons ong whose account they applied were married. The Rev. James i-tack, from Woodend, has recently delivered a lecture on the Maoris, at the district school, Fernside. A series of diagrams served to make the lecture understood, and also added to its interesting and instructive character. Mr Stack state I that the Maoris are a combination of the Mongolian, Malay, and Papuan races, and he pave several of their legends relative to their settling in the islands of New Zealand, He then passed on to their religion, shewing that they were not image-worshippers, They had no knowledge of the Supreme Being, but believed in a variety of spirits having to do with all the matters of life. He then gave a description of the characteristics of the Maoris, their useful qualities ajid power* of mind, and the missionary labours amongst them. He dwelt much on the ruinous and pernicious effects the vices of Europeans had over the natives, and expressed his belief that in 50 years few, if any, of the Maoris will be alive.

On August 1 the recently started Poultry Association held their first show in the Town Hall. As a first attempt it exceeded the utmost expectations of the projectors in the number and variety of the exhibits. The following prize list will shew to what extent the importation and breeding of poultry has been carried in this province :—DorkingsMr Potts; coloured, G. A. Reade, 1; A. M. Johnson, 2. Game-Black-breasted red, E. Ikes, 1; E. ftees, 2; brown-breasted red, R. Fulton, 1; R, Boswell, 2. Duckwings.— Mrs E. W. Fereday. Sydney blue, J, Andrews, 1. Blue dun, Mrs Chudley, 2. Gamecocks of any variety,-T.Haskett, 1. Spanish, R. Clark, 1; G. Gould, 2. Cochins, buff, Mr Chegwodden, 1; Mrs Hornbrook, 2. Brahmas, L. G, Cole, llaijiburghs, pencilled, Donaldson, 1; J. Todd, 2. Golden spangled, L. G. Cole, 1 ; Donaldson, 2. Polands, silverSpangled, Miss Onne. Crevecasurs, W. Reeves, 1; J. M. Hey wood, 2, Barndoor Price 1, T. J. Boys 2. Bantams, game, J. Williams 1, J. E. Davie 2. Any other varietv, W. G, Walker 1, J. Wliliams 2. Turkeys, black,-Potts; white, C. C. Aikman. Ducks, Aylesbury A. M. Johnson 1, C. Wright 2; Rouen, G. Gould 1; P. Papperill 2. Any other variety, 11. Tubman. Pigeons, Jacobins, T. Williams; Fan-tails, Miss Orme. Any other variety, T. Williams. Canaries, R. Clark and J. Williams, Rabbits, French', HL Howell, Any other variety, Dr Foster. A return has been laid on the table of the Provincial Council, of the amount of Crown Lands sold by the Canterbury Waste Lands Board from the Ist April, 1868. to the 6th July, 1868, inclusive. This return is divided into two parts, the one showing the quantity sold to the north, and the other to the south of the Rangitata. The sales north of the Rangitata have been-in April, 1064 acres, realising £2128; in May, 1755 acres, realising £3510; in June, 1997 acres, realising £3994; total, 4816 acres, and £9632, The sales to the south of Rangitata have been—in April, 601 acres, realising £1202; in May, 1251 acres, realising £2502; in June 1300 acres, realising £2600; total, 3152 acres, realising £6304. So that the sales north of the Rangitata have been 1664 acres more than those to the south, and have realised £3328 more. The totals of the two portions of country amount to 7968 acres, and £15,936 Of this Messrs Holmes and Co. purchased 533 acres at the price of £1066, A return has also been laid on the table of the Crown Lands sold by the Waste Lands Board, from Ist April to Ist July, 1868, distinguishing the land bought by Messrs Holmes and Co, Land sold, exclusive of that purchased by Holmes and Co,—April, 1665 acres, realising £3330; May, 300G acres, realising £6012; June, 2764 acres, realising £5528; total, 7435 acres, realising £14,870. Land purchased by G. Holmes—May, 533 acres, realising £1066. Grand totals, 7968 acres, realising £15,936.

Some apprehension having been caused by the discolouration of the Avon, it was ascertained to be due to a small portion of the Waimakariri overflow making its way through the old breach in the upper embankment, and flowing thence into the northern branch of the river. There was no water proceeding from the lower embankment, neitiier had there, us many said, been a breach made in it. A trilling stream of water was milking its way from Hie new point of overflow near M'Lean's homestead, but thin swopt round above the Hurewood Church, and joined the river Styx. The overflow from the upper embankment followed the old course past Templar's, a little below which place it was only half a chain wide by eighteen inches deep, and the stream from M'i can's wan only twelve feetwide, and six inches deep at a point just above the church, Works are now in course of erection to obviate any further danger from the first-named point of overflow, and others are under consideration for restraining the river at M'Lcnii's. The first will consist of the embankment being extended by about one third ita present iengtli, the new work being erected at a slight angle with tho old, ami in such a maimer that its end will rest against a terrace. Its height is to be three feet above that of the heaviest overflow, the present embankment being raised in proportion where the two join, but gradually falling away to one foot at the end nearest the river. The protective work at Mr Mo' Lean's is also to consist of an embankment for the construction of whioli, tenders are now invited by the Government. Both will be completed before any heavy fresh is likely to come down, and such other measures will no doubt be taken by the Government as to secure something like immunity from further flood.

SCHOLASTIC, Akaroa, School,—An examination was held by tho committee on the 9lh ultimo, The examiners expressed themselves highly gratified by the progress made, and the marked improvement in the school since tho previous examination, and awarded prizes for proficiency to the following children : Ist class, Isabella Sunekell, John Sunckell, Daniel Brown, Charles Watldns, and Thomas Checkley; 2nd class, Julia Morgan, Frank Watkins, Jonathan Checkley, Alfred Morey, and Elizabeth Pcnlington ; 3rd class, George Morgan, Jane Sunckell, and Georgina Jlodrigues. Upper lleatiicote School,—On July 17, the Rev. Mr Bowcn and the Chaiman of the School Committee, examined the various classes at considerable length, in reading, spelling, arithmetic, and Scripture knowledge., Mr liowcn expressed himself highly satisfied with the general appearance of the school, of which Mr Donald Davidso'n is master. The following obtained prizes:— Ist class: Arthur Dixon; 2nd class, William Hubbard ; 3rd class, Jane Blake; 4th class, Charles Seager and John Smith ; arithmetic anil map drawing, John Low; regular attendance, Gilbert Dixon and Ulizabeth Low; cleanliness, good behaviour, and general attendance (by votes of the children), Arthur Dixon and Fanny Seager. CjiuisTCHtineii High School.—There was no half-yearly examination at this school, 1 the numbers being carried on to that which will take place prior to the Christmas vacation. The attendance has been 111 for the last quarter. About 51 are in classics; about 40 in French, 33 in drawing, and 12 in the higher mathematics. Mathematics and the higher English are under Mr Charles Cook, the rector; the classics and English literature are at present in charge of the ! Kev Charles Fraser; the junior departments are temporarily in charge of Mr William Joyce; Mr Bellemin is teacher of drawing and French; Lieutenant Swinley gives instruction in military drill; and Mr Dayrell Keed teaches instrumental, and Mr E. Long vocal music,

Halswxl School —.The scholars were examined on July 6, by the Government Inspector. The first class answered badly in the geography of New Zealand and in English history before the Conquest, but displayed considerable knowledge of the subsequent period, while the mental arithmetic aud tables were creditable. The arithmetic proper was not so good as might have been expected. The copy-books were found satisfactory. Ellen Lee, Alfred Brake, and James Gordon evinced a considerable degree of proficiency on Scriptural subjects. The Inspector placed the children as followslst class: James Gordon, Alfred Brake, John Lee. 2nd class: Edward Clark, John Burrows (rending), John Bearman, Sarah A. Saley (Bible), Margaret Moffet, Edward Clark (spelling). 3rd class: John Gordon, (spelling and reading), Samuel Burrows, John Gordon, Frederick Campion (arithmetic), 4th class: Henry Walker (reading), Mary A. Fleet, Charles Roskruge (tables). St. Luke's ScnooL.—The half-yearly examination at this school evinces very satisfactory progress on the part of the scholars, and reflects great credit on Mr Gee, their master. The Rev, E, A. Lingard, Incumbent of the parish, distributed the prizes as follows: —First class: General improvement, George Ritchie; Scripture history, Mary St Quentin; geography, George Ritchie; Knglish grammar, George Ritchie; reading and spelling, Jane Ansley and George Ritchie (equal); arithmetic, William Pepper;'writing and dictation, Jane Ansley; mental arithmetic, Charles Piper. Second class: Scripture history, Grace J, Robinson and Louisa Webb (equal); reading and spelling, Mary Newsome; arithmetic, Louisa Webb; writing, Henry Piper (Mary Newaome, honourable mention.) Third class: reading and spelling, Annie Hitching and Martha Tankard (equal); arithmetic, Alice Lawrence; multiplication tables, Alice Lawrence; writing, Kmma Griffln, Extra Prizes: drawing, Walter Baker; sewing (class 1.), Rosa Perkins, 1; Jane Ansley, 2; (class 2), Mercy Webb, 1; Matilda Cass, 2; spelling, (given by Mrs Young)-class 1, Albert Isles; class 2, Mary Newsome.

St. John's School.—The children attending this school were examined by the Revs. F, Knowles and J. O'B, Iloare, and the result ou the whole, was satisfactory; the reading, arithmetic, and history especially so, but there is room for improvement iu grammar and writing. On the day following the examination, the elder classes were invited to tea by the Rev. J, O'B, Hoare. The whole of the day and Sunday-school scholars afterwards assembled to enjoy a large Christmastree, provided by the ladies of the parish and other friends. At half-past seven o'clock the prizes were distributed by Mr W, J, W, Hamilton, as follows:—Boys: first class, Ist prize, William Mould ; 2nd, Burton Pye; 3rd, (extra) William Edgar. Second class: Ist prize, William Dempsey; 2nd, George Jones. Third class: Ist prize, Abraham Parish; 2nd, Percy Collins. Fourth class: Ist prize, Frederick Boot; 2nd, Frederick Simmons. Fifth class: prize, Richard Blanchard; extra prize, (scripture), William Mould. Girls—First c\nss: Ist prize, Kate Frow; 2nd, Harriet Erskine, Second class: Ist prize, Eleanor Gee; 2nd, Eliza Parish, Third class: Ist prize, Mary Mayne ; 2nd, Maria Edgar. Needlework: Ist prize, Emma l'iper; 2nd, Margaret Parkinson,

The Government Scholarships.—'This year's competition lias resulted in the two open scholarships feeing awarded to Hartland find Gibson, both of Christ's College. There were six competitor;!, and the number of marb obtained by e.tch was as follows Hartland, 243; Gibson, 221; Dixon, 144; Reece, 13G; M'Cormick, 136; and Waters, 125. The examiners were Messrs Edward A. Worthy, iu classics and alieient history; Thomas William Maude, in English composition, geography, and modern history; and T, Nottidge, in mathematics and sacred history. There were eighteen competitors for the four scholarships open to boys attending district schools aided by the Government. The examiners were the Rev E, A. Lingurd, in Scripture history, English grammar, geography, reading, and spelling; and Mr James George lJawkes, in writing, dictation, English history, and arithmetic, Mr Litigard, iu his report, states that on the whole, lie considered the results of the examination were satisfactory ; and Mr J. G. Htiwkes says that lie "noticed a marked general improvement in the acquirements of the candidates Jince lur-t year." The scholarships were gained by Alfred Dawson, Prebblelon school; Alfred Morton, Hangiora school; A. J. Purson, Cliristchurch Weslcyan school; and Waller S. Bean, Kaiapoi Church school. Alfred Brake, of the ffalswell school, and William Ileney of the Kaiapoi school, were recommended for extra prizes. The standard number of marks was 900, and the following was the result of the examination (100 being the highest number of marks which it was possible to gain in any ono subject) Dawson, 714; Morton, 680; Parson, 641; Bean, 623; Brake, MIS; Ileney, 578; Lawrente, 496; Kitchingman, -JB7; Cole, 450; Prudhoe, 445; Uartrmn, 44i!; Bean, 438; Tomlmsmi, 432; Seager, 429; Melbouvn, 378; Carmiclmel, 371; Webster, 3M); Schumacher, 317. Lincoln Cottage Pukvaiutory School. —Tlio boys attending this school were examined by the Very Kev the Dean of Christchurch, and the Kev Henry Torlesse-, the former taking the religious knowledge of the whole school, the reading, spelling, and English history of the first class, and the English history of the second ; and the latter most of the other branches in the upper classes, whilst the lower classes were examined chiefly by the teachers themselves. It may he mentioned that the murks obtained by the boys during the previous quarter arc taken with those obtained at the Midwinter examination, to decide to whom a prize was

to bo given, so that attention and industry during the quarter are placed on an equality with promptitude and proficiency at the examination, The following is a list of those to whom prizes were awarded:-First class • first prize, G. Dcamcr; 2nd do, 11. M'CardelL Second class: Ist prize, J. Frost; 2nd do, It, Hamilton. Third class: first prize, W. Wood; 2nd, A. Alabaster. Fourth class: class prize' J. Moore. There were also two extra prizes given for pood conduct daring the quarter. The first, given by Mr J. G, Hawkes, was obtained by W. Wood ; and the second, given by Mrs Alabaster, was obtained by 11. Deamer, The prized were distributed by the Dean on the 24th June, Mr Torlesse also being present, The Dean addressed a few admonitory remarks to each boy as he took his prize, and afterwards said in the course of his address to the boys that it was always a very great pleasure to him to be present at the half-yearly distribution of prizes at this school, but circumstances had prevented his attendance on several provious occasions; lie hoped, however, to lie able to come regularly in future. He expressed his gratification at the proficiency of the pupils in the subjects on which he had examined them, and mentioned particularly the reading and spelling. Tboir knowledge of Knglish history, too, was very fair on the whole, George Deamer had surprised him by the accuracy and readiness with which he had answered every question put to him. Mr I'orlesse then addressed the boys, He wished to draw their attention to the fact that nearly all the open Provincial Government scholarships had been obtained by boys who had been taught at this school, and considered it a proof that any boy moderately attentive and industrious had it within his power to become thoroughly grounded in the usual branches of education, He believed one of the greatest advantages a school could have was possessed to some extent by this school, in having a history : boys could be referred to by others who had preceded them, and had made themselves conspicuous by their abilities elsewhere. He, too, had been very much pleased at the answers given to his questions, and amongst others, Frapk Hawkins had answered in one or two subjects with great intelligence. He concluded by complimenting the teachers on the success which had attended their efforts. Christ's College Grammar School.— The midwinter examination commenced on Monday, June Bth, and terminated on Tuesday, June 16. The upper forms were examined by the following gentlemen:—l£. A. Worthy, Esq., 8.A., in daasios; the Rev. W. W. Willock, M.A,, in mathematics; H, J, Tancred, Esq., in French and history; the Head Master in Divinity. The lower forms were examined by Captain Simmons in arithmetic, and by the fiend Master in all other subjects. On Thursday, June 18, the governing body of the College met to receive the examiners' reports, and to distribute the prizes, Shortly after 12 o'clock they proceeded to the Great Schoolroom. The chair was taken by the sub-warden (the Very Rev. the Dean of Christchureh), who, after commenting briefly on the results of the examination, and the reports of the examiners (which were generally very satisfactory), presented the prizes in the following order:— Classics—sixth form—G. N. Willmer,G.Harper, Latin prose; fifth form—T. S. Foster; fourth form—Restell, and J. Maefarlane (bracketed); third form—ll. Bridge, Hill, major (first in examination); second formJ. H. Twentymau; first form—J. B, Lee, French; sixth form—llo prize; fifth form— T. S. Foster; fourth form, no prize. Mathematics, first division, J, Gould; second division (upper), A, Stiffe; (lower) W. B, Willock, Whiteombe major (bracketed) third division, Merton; fourth division, Hill, major; Gould, second prize; fifth division, E. Hawkes, V. Hamilton (bracketed); sixth division, J. Hawkes. The following is a list of head boys from the commencement of the school to June 1868 :—Benjamin Thornton Dudley; Christmas, 1856, Herbert John Matluas; Midwinter, 1857, Herbert John Mathias ; Christmas, 1857, Midwinter, 1858, and Christmas, 1858,n0 record; Midwinter, 1859, Alfred Thompson; Christmas, 1859, George Harper; Midwinter, 1860, no record; Christmas, 1860, George Ilarper; Midwinter, 1861, no record; Christmas, 1861, George Harper; Midwinter, 1862, Henry Thornton Dudley; Christmas, 1862, Arthur James Cotterill; Midwinter, 1863, no examination—school dismissed shortly after Easter, on account of fever; Christmas, 1863, A. J. Cotterill; Midwinter, 1864, A. J. Cotterill; Christmas, 1864, A. J. Cotterill; Midwinter, 1865, A. J. Cotterill; Christmas, 1865, T. D. Condell; Midwinter, 1860, T. D. Condell; Christmas, 1866, T, D. Condell; Midwinter, 1867, D. W. Harper; Christmas, 1867, G. N. Willmer. Senior Somes Scholars:—A. Thompson, elected September, 1858 ; G.Harper, March, 1*61; 11, T. Dudley, June, 1862 ; S. J. Stedman and F, G. Brittan (bracketed), December, 1863 ; A. J. Cotterill, March, 1863 ; T, D. Condell, December, 1864 ; G. N. Willmer, December, 1865 ; W. Ilarper, December, 1866. Junior Somes ScholarsG. Sefton, T. S. Poster, March, 1866; W. Psrcival, June, 1867 ;T, Hill, January, 1868. Godley Prizes—English Essay:—l. H. T. Dudley; 2. A. J. Cotterill, December, 1864 ; 3. T. D. Condell, June, 1866 ; 4. T. D. Condell, June, 1867 ; 5. G. N. Willmer, April, 1868, English Poem :—l. S, J. Stedman ; 2. f\ J. Stedman, December, 1864; 3. not awarded; June, 1866, discontinued. History Prizes:—l. W. P. Reeves, June, 1867 ; 2. 11. C. Lowther, T. S. Foster, W. P. Reeves, April, 1868.

AMUSEMENTS. What we have to say under this head has exclusive reference to amateur talent, for during the past month we havo not had a visit from any artistes in a professional capacity, The main features of the month have been the establishment of popular entertainments on the penny reading principle, and the almost universal interest which has been expressed in behalf of the local charities of this city. Never before has the spirit of voluntary benevolence so largely manifested itself, alike on the part of those who compose the amateur circle, and the great body of the population. In the early part of July, Madame Carandini, by way of acknowledgement o£ tlie unprecedented support which she and her daughters had received from tho people of Christchureh, gave a performance at the Town Hall in aid of the Feni'le Home, Orphanage, and Lunatic Asylum, tht net proceeds of which amounted to something over £42. The Licensed Victuallers' Association gave their annual performance at the Theatre Koyal on July 7, in aid of the Widows' and Orphans' Benevolent Fund, Pit, stalls, and circle were crammed, and tho performances were a (trait success, of course not strictly in the critical sense of tho term. At tho instance of the Mayor another performance was given on behalf of the local charities, which realised £2G IPs 7d.

Although not strictly coming under our present heading, it may not altogether be out of place to mention that the Kev. Mathew Baxter, of the St. Asaph street Methodist Church, has delivered two lectures ou " Sam the Major and the Sam the Minor," n subject which occasioned considerable conjecture, and necessitated some prefatory explanation. It turned out that Sam the Major was the great critic Johnson, and that Sam the Minor was his contemporary Parr. Tho proceeds have been devoted to the Benevolent Aid Society, an institution, whose operations ever since its foundation have been of great benefit.

The popular entertainments mentioned in our last summitry appear (o have hit the taste of the public d merveille. The two of the series which have been given attracted between 700 and 800 persons on each occasion, and there is every reason to believe that those to come will be equally well patronised, There was some little delicacy at first, but

now that the system lias been fairly launched, all our amateur celebrities have volunteered their services, The managing committee are thereby enabled to present programmes of a most diversified character. To his Honor Mr Justice Gresson the task of deli vering the {inaugural address was entrustedand in appropriateness it could not have been, excelled. The second entertainment was opened by Rn address from the Rev Charles Eraser, in the course of which he pointed out the beneficial results that were likely to accrue from the movement. The largeaudiencies which hare assembled in the Town Hall were not composed of any one section only ; there was a general admixture of all classes, a fact which proves that the movement has met with universal approbation, This evening, the third entertainment will take place, and the Very Rev the Dean of Christchurch is tO ) deliver the opening address. The Rev J. O'B. Hoare will have a similar duty imposed upon him on Tuesday next. The members of the Widow and Orphans' Fund* in connection with the Ancient Order of fcoresters, held their annual supper on the 271 h ultimo. A balance of between £6O and £7O remains to the credit of the fund. A company named " The Coloured Variety Troupe"of serenaders,appeared at the Theatre Royal on Saturday and last evening, and both performances were pretty largely attended. ACCLIMATIZATION. Ihe new council of management have fairly settled to their work, and taken vigoutous steps for promoting many desirable measures in connection with the position and management of the society. In matters bearing more immediately upon the practical promotion of the society's objects, salmon still occupies the largest share of attention. Ihe last batch of the ova, procured from Otago,_ were removed from the hatching boxes ia the early part of the month, all efforts to bring them to life having failed. •Nothing daunted, however, the society have sent to Tasmania for a further supply, and four modes of packing having been provided for, it is hoped that the hitherto disastrous effects of sea transit will be fully guarded against. Apropos of the first named experiment, it may be remarked that the Otago Acclimatization Society has also faied to hatch any of the English ova, but upwards of 500 young fry have been hatched out in the Government ponds at Waiwera, and are now thriving rapidly. In addition to this province, Kelson, Southland, and Otago have also made arrangements for obtaining ova from iiobart Town, and at least some portion of it must now be on its way to this colony. Beyond the introduction of fish, the only step taken by the Christchurch society during the month towards practical acclimatization lias been the planting of trees for the reception of the ailanthus silkworms, a supply of which has, since the last monthly meeting, keen arranged for.

THE VOLUNTEERS. There is not much of general interest to record in connection with this body during the month. Rifle clubs bare Jjeen organised which promise to become useful auxiliaries to the movement. The Engineers and No. 6 Company C. li. V. are the only contingents who have yet adopted the system, Two competitions for the Cavalry Cup have taken place, and, after live failures to reach the minimum number of points, it has at length been won. Cornet Slec was the fortunate competitor. A match has been fired between the Cavalry and Engineers, but the scoring is not worthy of notice. The conditions for Mis Weld's Cup, against tlie stringency of which so many complaints had with reason been made, have, at the solicitation of the llifle Association, been amended, and now meet with general satisfaction. A new Orderly room has been erected by No. 6 Company, and inaugurated by a dinner given by Captain Hawkes. The General Government District Prizes were presented at the last battalion parade by Major Wilson, C.B. An Artillery corps having been formed at Timarn, No. 7 Company of liifles has been disbanded, but notwithstanding the entire absence of drill instruction, the remaining outlying companies continue to exist, and hold their weekly parades. The formation of an Irish company of rifles has for some time been in progress, and over 50 names having been obtained, the application for enrolment will be forwarded to Wellington by the next mail. As a part of the Volunteer force, the Cadet Corps claim some notice. Several of these have been recently formed, and the boys enter most zealously into their duties. For completeness of organization and acquirement of drill the foremost position must be awarded to the St John's, which has established a band of its own, and musters upwards of 60 regular atteuders id parade. Mr C. Trevatt, the originator of the corps, has been gazetted to the command. None of the corps have yet received Governmentaid, but considering the beneficial results the movement must have on the boys, it is to be hoped that this will boou be extended to them.

NEW ZEALAND FLAX.

The preparation aud utilization of the fibre of this plant, so abundant over the whole of the colony, has recently attracted no small share of attention. The manufacture of rope from the fibre by a company, under a patent process, has been going on some time, and the operations have lately been extended. The subject, has also been taken up by other persons, and an application for another patent has been gazetted. That we possess an immense stock of an article capable of being used for many manufacturing purposes is not denied, and that ere long an export trade in it will spring up is not improbable. On July 25, a number of shareholders and others of the Halswell Flax Company inspected the additions to the works that have recently been carried out by Messrs Ninnis and Co. The new machinery was made at the foundries of Mr John Anderson, and Messrs Newton and Barnes, aud erected at the mills by Ninnis and Co. The shareholders expressed their entire satisfaction at the manner in which :t had been executed. At the present time the work of flax dressing is being carried on by the company, and the manufacture of rope by Messrs Ninnis and Co.; and between the two a large number of persons And employim-nt. The speculation has been so far remunerative that it is intended to increase the sphere of operations; and by the time the proposed extensions are completed the company will be in a position to afford employment to a considerable number of boys as well as men.

Wo lmve receive;! a sample of flax prefixed by the machinery for which Mr E. W. Trent Ims applied for a patent. It is the production of six blades of flax, from five to six feet long, cut green from the bush, and put through the process without nny previous preparation. As compared with oilier samples of riwrmium teiiux which have been submitted as the results of other modes of preparation it does not present a very favourable appearance, but the object of Mr Trent is to produce an exportable commodity .capable of receiving the finishing touch by the more elaborate machinery used in England and elsewhere, and thereby make a very material difference in its cost. The machinery he has constucted has nothing pertaining to the beating or percussion principle attached in it, and by this means the natural strength o£ the fibre is said to be better preserved. The sample wo have received is mid to have been prepared -drying excepted—in less than thirty seconds, and the coat of the flax and tow together is estimated at about £ls per ton, or tow alone A' 9, £1 per ton being allowed for cutting the material. The machinery is so constructed as to produce fine long flax and tow, or the latter separately,

OANTEEBUEY RAILWAYS. The following is the correspondence which has passed between the Government and Messrs. Holmes and Co. in reference to the Lyttelton and Christchurch Railway dispute. From tlio limited space at our diiposal, we have been compelled to omit signatures, titles, &c. All tlio dates are given. The letters from the Government are indicated by the letter [G]; those from Messrs. Holmes and Co. by the letter [II.] [g.] March 31, 186 S. I have the honour to request that you will be good enough to inform the Government within what time you will be prepared to complete the tunnel, and hand over the Lyttelton and Christchurch Hail way to them in accordance with, and in satisfaction of, the terms of the specification, and also on what terms yon will be prepared to carry on the trallle on both linos, until such time as the Lyttelton and Christchurch lisihvay is completed.

[li] April 1, ISGS. Wc have the honour to acknowledge the receipt of yours of yesterday's date, and beg to state that wc shall not be in a position to reply fully to it till after the railway onginecr has examined the work. We have now the honour to request that a portion of the seawall, which is apparently completed, may bo handed over to the railway for immediate use, and that instructions be Riven to erect the large crane now lying at the railway station in Lyttelton. This is more urgent as, by the next vessel to arrive from England, there are three locomotives, which cannot belauded without this or some similar crane,

April 2,ISGS.

Sir,—l have the honour to inform you that Messrs Holmes and Co. have been requested by the Government to state within what time they will be prepared to band the Lyttelton and Christchurch Uailway over to the Government, in accordance with, and iu satisfaction of, the terms of the specification, and to request you to be good enough to examine the line, and report to me as early as possible what length of time you consider the contractor might be reasonably evpected to finish the work in, and hand over the line. F.DWD. Joluk, Secretary for Public Works. To E. Dobson, Esq., C.E.

Christchurch Station, May 2, ISGS,

Sir,—ln compliance with your instructions dated as per margin, I have (hi honour to report upon the prisent slate of the works under contract upon the Lytteiton and Christchurch Railway, and upon the time in which " the contractors may he reasonably expected to finish the works, and hand over the line to the Government." The work remaining to be done is as under: —ln Lvttelton—Painting the iron work to Girder Bridge. Completing the painting to the retaining walls at the tunnel mouth. Completing the metalling of the approach road. In Ileathcote ValleyTrimming the floor and slopes of the cutting At the tunnel mouth. Boxing up the permanent way in the Ileathcote Valley station. Trimming and making up the slopes of the embankment. Trimming the railway ditches, and planting quicks at the foot of the embankment. Making up the metalling at some of the accommodation crossings. The whole of the above-named work may be done at any time in a fortnight of fine weather. In the tunnel the following work remains to be done:—To bring the permanent way to its permanent level, and substitute new sleepers for all that are damaged, or of insufficient length. To arch over tlie shafts. To wall up the cases at 81 chains. To arch the roof at the 9th chain, To put in side walls and archins; at the 40th chain. To ditto ditto at the 113 th chain. To widen the tunnel at a few places between the 20th and 54th chains. I do not think it practicable to bring the permanent way to its proper level, and to ciase the shaft, without shutting up the tunnel for eight clear days; but every other part of the work may be done without stopping the traffic. Ido not think, however, that under these circumstances it could well be completed in less than six to eight weeks, from the present time, without serious risk of accidents. If, upon the other hand, the Government are prepared to close the line for a short time, the whole of the tunnel work might be completed in three weeks from the time of stopping the traffic, provided the requisite arrangements were previously made for a proper supply of labour and materials. E. Dobson, [g] May 9, 1868. I have the honour to enclose for your information a copy of a report addressed to me by Mr Dobson upon the present state of the works under contract upon tha Lyttelton and Christchurch Railway, and upon the time within which the contractors may be reasonably expected to finish the works and hand over the line to the Government. The Government are anxious that the works along the line should be proceeded with as rapidly as is consistent with safety; and, with that view, I am instructed to request that you will inform me:—lst. At what time you will guarantee to deliver the Lyttelton and Christchurch Railway over to "the Government in a finished condition, trains running as at present; and 2nd. At what time you will gnarantee to deliver it over, supposing, as Mr Dob.'on suggests, the traffic were stopped for eight days. I have also been instructed to ask what allowance your firm will make in regard to the works still unfinished if the Government should take the railway off the contractors' hands in an unfinished condition—say at the end of this month. [u] May 12, 1868. We have the honour to acknowledge the receipt of yours of the 9th instant, enclosing the Engineer's report on the present state of the works of the Lyttelton and Christchurch railway. In reply, we arc desirous to carry on the works as rapidly as possible to an early completion. In the Engineer's report we see nothing to object to except one point —that is, if the Engineer is determined to change the present gradient in the tunnel (which is a very good one for all practical purposes), it will take at least a month, with the staff of miners at our disposal; and, further, the traffic must be entirely suspended during that period. As to the other portions to be completed; as far as we can judge, the time specified by the Engineer is sufficient. In reply to your question No I—lt will take, as nearly as we can estimate, from eight to ten weeks to finish the works in the Engineer's list. In reply to your question No 2—Jiy stopping the traffic for eight days, we could finish a fortnight sooner than the time before mentioned; hut v/e will not guarantee to deliver over the works in a finished condition while the maintenance of the line is in our hands. If the Government should desire to take the works o(f our hands at the end of this month, we should expect payment in full of all moneys due to date ; also payment for claim sent in by us on 19th December, 1805, for filling up Station ground at Lyttelton, with interest added. We should also expect 0 be paid the per-centage money retained by the Government on the original contract, and payment for further extras. Details and particulars to be submitted. Also compensation for obstruction from traffic, and other matters. As it would require :i considerable time to measure up anil furnish the necessary details in works of such magnitude, before an adjustment can he arrived at, we shall commence to do so at once, if the Government so desire it, and comply with the wishes of the Government to terminate our contract-; and agreements as soon as it can possibly be done. [<;] May 13,18C8. I have the honour to acknowledge the receipt of your letter of yesterday's dato in reply to mine of the 9th inst. With reference to the last paragraph but one, in which you state'Mf the Government should desire to u-.kc the works off our hands at the end of this month, we should expect payment in full of all moneys due to date; also payment for claim sent in on the 19th Dee., IBGS, for filling up station ground at Lyttelton, with

interest added. Wc .should also expect to he paid tlm per-ceutnge money retained by thu Government on tlio original contract, and payment, for the extras, details, &c,, Id Ijo submitted. Also compensation (or obstruction from truffle and other matters," the Government request yon will, furnish a detailed statement of all moneys which von claim under contract or otherwise. With reference to the Inst paragraph, (lie Government would l)e glad if you would, as suggested, measure np and furnish ihe necessary details o( nil works completed or now being executed by you on their behalf, with a view to the adjustment, at as early a dale as possible, of all contracts and agreements existing between you and themselves.

[a] May 15,18(58. We have the honour to acknowledge the receipt of yours of the l.'lth inst. In reply, wo shall, at the request of the Government, furnish the details necessary to the adjustment of our accounts; but, as we before stated, it will take some considerable time lo measure all the works executed by us from the commencement to dale, and this we shall do as soon its wc possibly win.

[»] May 18, lSfii, As the Government is desirous of an early adjustment, of our accounts on the Lyttelton mill ClirLstcliiireh liiiilway, we have the honour lo submit an abstract of the following claims. We take these hurried steps in order to show the Government it i.s our wish to meet their view of the matter, and to avoid nny obstruction in the way of a settlement. At the same time wc ourselves would piofer having a sufficient time—say live or six weeks—to tile matters in detail, in making this oiler for a dual settlement between the Government and ourselves, we do so without prejudice to any other steps we may deem necessary to take hereafter, in case the Government may not accept our offer. Ist. Kxtra work in filling up station ground at Lyttelton, including the claim sent in by us in 1865—in all 40,1)00 cubic yards, at as per cubic yard, £IO,OOO. 2nd. Extra expenses caused by opening tunnel for tnitlic in November last, preventing our contract j work to date, £SOOO. 3rd. Kxtra works on three miles twenty-two chains of the Uiristchureh end of the Lyttelton and Christchurch railway, caused by the Government ordering that portion of the line to be made in when materials and labour were largely in excess of what, such work would cost if executed in ISG7 or ISGB, oiio ; extra on rails, chairs, bolls, &e, including lighterage—4oo tons, at £2 per ton, £BOO ; extras on sleepers, timber, posts and rails iu gates and in bridge work, £2ouo ; extras on ballasting line which could now be obtained from tunnel, 12,000 cubic yards, at ss, £">000 ; extra on price of biicks ami slotie ill culverts, additional labour in carting materials oil to works, &c., £ISOO ; total, £22,1)00. It will be seen that the per-ceutage retained, amounting to ten thousand additional, is not included, if this amount be paid to us at the same time. We are willing to hand over the line to ilie Government in its present state we also desire to make a fair allowance for its completion, as well as for the maintenance for the next six months. ,For these works we consider the sum of five hundred pounds sufficient. Having bricks, stone, and timber on theground sufficient to complete the works, these materials we would hand over to the Government free of charge. There is one claim which requires explanation, that is, the ballast put to out "spoil" at llentlicote Valley. It will be seen wc havj charged the Government with 12,000 cubic yards of ballast in this account, the remainder in "spoil" belongs to us, as we substituted a clay embankment, and paid for its execution without any cost to the Government.

[g] June 17,1868. I have the honour to inform you that the Provincial Council will be called to meet on 3rd July. As the Government will require vote 3 to be taken for all such sums as may be due to you on the railway contracts, I have to inform you that I shall require your claims to be sent in, pursuant to your letter of 12th May, and my answer thereto of the 13th, in detail, including balance on contracts and other claims mentioned in your correspondence of 18th May iast. All these claims will be brought before the Council, and I shall be prepared to pay the amounts voted immediately after the Appropriation 'Act is passed. I have further to intimate to you that the arrangement now existing for the working of the line will cease on the 31st July, and that the Government will take the line into their own hands from that date. From the terms of your letter of the 12th May, I apprehend there will be no difficulty in carrying out this arrangement, as you say, "If the Government should desire to take the works off our hands at the end of this month, we should expect payment in full of all moneys, &c." This, of course, the Government are prepared to do to the extent of all claims that the Government and the Provincial Council can admit as justly due; should there be any difference with regard to these claims, the Government are willing to leave the same to arbitration, or to b» settled in any way that may appear to bs most convenient to you and the Government. In conclusion, I have to impress upon you the necessity of having your claims prepared in time for the meeting of the Council, otherwise, as the session will be very short, they will have to stand over until a future session, as no amounts that are not already voted can be paid without an Appropriation Act. The Government will also feel obliged by your furnishing a schedule of all property belonging to you now on the line, with a view to purchasing such as maybe wanted,should you be disposed to part with_ them. As you havo fixed the time at eight to ten weeks from the 12th May as sufficient to complete the work in the Engineer's list, you will, I hope, have ample time by the 31st July to carry out the works referred to. The Government considers it expedient that the wholeof the men employed in conducting the traffic of the Canterbury Railways should be servants of the Government, and be paid directly by the Provincial Treasurer. I should therefore feel obliged if you will furnish to the Government a list of the names of those men now employed on the railway willing to transfer their services to the Government.

[»] June 19, 1868. We have the honour to acknowledge yours of the 17th instant. In reply, we regret and wc*re surprised to find the Government have not made any reference to the offer made by us on the 18th May last. We now beg to withdraw tlmt offer, and should not have made it then, if not led to infer from the previous correspondence of the Government, that they were desirous of a settlement at the end of May last, which we find not to he the case. In our anxiety to have the matter settled, and to shew the Government our desire to meet them fairly, and to arrive at a conclusion, we made the oiler referred to. Several large items have been omitted, which for want of time and details could not he condensed into the abstract of the 18th May, We again have the honour to request that our letter of the 18th May last is not to be furiher considered, nor any portion of it, mk the proposals it contained were made without prejudice for a settlement of accounts, This opportunity for a settlement of accounts having passed, we shall immediately take steps to measure up, and send in our claims to the Government. We beg to accept the proposal of the Government to leave to arbitration any difference that may arise between the Government and ourselves with regard to our claims. We further beg to state that the Government in not replying to „nr letter of the Ifith May till before the 17th June, have not shewn any desire to bring matters to a speedy conclusion. We think it is not possible to have details and proper accounts furnished before the 3rd July next. It might have been done hud we sufficient notice, or bad the Government intimated their rcijutHl a for (night agn. [n] June lit, IfifiS. In yours of the 17th instant, adverting to the traffic " arrangements will cease on the "Ist of July, and that the Government will take the line into their own hands from that date." We beg most distinctly and respectfully to state that we will not give up possession of the line nor any portion of it during

the time tho responsibility of maintenance is in our hands, bill at the same time wo shall oiler no obstruction to the Government working the line, and with an little interference an possible, except what is caused by necessary repairs and adjustments for the safety of tlio public. Again—" The Government considers it expedient that tlio whole of tlio mou employed in conducting the trallle of the Canterbury Railways under your mnnngement should be servants of the Government., and be paid directly by the Provincial Treasurer." This proposal cannot, be entertained by us. Our stall! is not a mere Iriuixfcrablo mercantile commodity. We have the honour to state that the expense of taking most of tlicin from other colonies, an well us the technical training tlicy havu had, in no instance at the expense of tlio Government ; further, we are humid by agreement to (jive them three mouths' notice. This we shall do at once. After that lime limy are at liberty lo btwomu " servants" of the Government, or at least some of the!::. Wo may mention thai the Government works on the West Coast road have caused us a pecuniary loss in the tunnel contract by intoi'loring our stall', and we trust the Government will sco thu direct injury we sustained by such interference, mid of which wogavo the Government ainplo notice at tlio time.

[«,] June 22, 1808,

11l reference to your letter of the 191 li instant, iu reply to mine of the \7th instant, 1 have, on behalf of flic Government, to express great regret that you should so far have misunderstood the purport of the correspondence Its to have conic to the condition that the Government do not desire lo arrive at a settlement with you, So far from this being the case 1 have to assure you that the Government consider that any longer delay in the completion of the railway, and the Inking possession of the whole line into their own hands, would bo productive of very serious losses to the community. Jn my letter of the 13th May, 1 requested you to furnish me with a detailed statement of all claims yon might consider you had against tho Government. On the 18th you wrote in roply thereto, making claims to the amount of £22,3011 for work alleged to have been done by you, and not included in the contract J'or the construction of the railway, but you did not give particulars, previously asked for, from which the Governnu nt would form im opinion of their validity. As soon as the very voluminous correspondence on the subject could be copied and carefully examined, so that the Government could be in a position to form an opinion on the merits of tlio case I wrote to you on the 17th instant again, requesting you to furnish particulars (which bad lint been received in the meantime, though asked ior on the l.'Jtli of the previous month) of all claims sent in, that the same might be laid before the Provincial Council at its meeting in July, and I stated at the sruic time the course which the Government were willing to recommend for adoption. You now state emphatically that you withdraw the offer contained in your letter of the 18th May, and that you have further claims which you will insist on being paid by the Government. I have therefore again to ask you to furnish to me, as soon as possible, a full and complete statement in detail of all claims you intend to make against the Government, and on receipt thereof the Government will givo the same immediate consideration, and will communicate their decision to you without delay ; but I wish you to under:tand distinctly that as you have withdrawn the claim put forth in your letter of 18th May, with the view, as you state, of furnishing additional claims, that portion of my letter which suggests a mode of settlement which you seem to have construed into an offer to arbitrate, must be considered as withdrawn, and tho question of the method of adjusting any differences which may arise must be in abeyance till after the sitting of the Provincial Council, In reference to that paragraph of your letter, in which you state that you will not give up possession of the line, or any portion of it, during the time the responsibility of maintenance is in your hands, I have only to repeat that the Government propose to take over the line at the time mentioned, viz., the Ist of August next, and with respect to the responsibility of maintenance they are prepared to enter into any arrangement to relieve you therefrom on equitable terms. With regard to your statement that the proposal of the Government, that the men employed in conducting the traffic of the Canterbury Hallways should be servants of the Government, and be paid directly by the Provincial Treasurer, cannot be entertained by you, on the ground, as you state, that your staff is not a mere transferable mercantile commodity, I have lo inform you that the' Government will make such arrangements for their payment while jou continue to be Traffic Managers, as may be satisfactory to you and to the Provincial Auditor. I cannot but remark, however, that the Government were of opinion that your convenience, as well as the advantage of those employed by you, and of the public generally, would be consulted by the adoption of the course they proposed. I can now only express my regret that you should view the matter differently, It will, of course, be the duty of the Government to make arrangements for obtaining the necessary staff "in time to take oyer the line on the Ist of August, and as it would appear only just to give a preference tD those men who are now employed on the railway, and are thoroughly efficient, I think it right to ask you if you have any objection, in consequence of a previous engagement to yourselves, to any of those men applying to or being employed by the Government. I have only to add the conviction of the Government that your claim can be quite as conveniently settled whether you are in possession of the line or not, mid unless the Government take over tlio.whole of the lines as intimated, very serious losses may be occasioned to the public. In couclusion, I beg again to assure you lhat it is the earnest wish of the Government to have nil these matters settled amicably, and with as little delay as possible. Trusting that you entertain the same feeling, &e,

[ii] June 24, 1868. We liave the honour to receive yours o£ the 22nd inst. In your lctlors of the 9th and 13th May last, the Government requested tlmt all claims by us against the Government under our contracts and agreements should be furnished nt as early a date as possible, and in yours of the 9th May, you suggest with a view to the settlement, "say at the end of this month," This request was perfectly impracticable to comply with on so short a notice, as it embraced the measurement and valuation of all works on the Lyttelton and Cliristehurch Kailway mid Turn el, £e. The measurement and valuation of all timber and materials, workmanship, Sc., nil Hie Kelwyn Viaduct, also »n the engine-shed and on tin; three locomotives now being ereeM, the rolling stuck in course of construction, and other works. In fact, we understand the Government to mean all theso works were to lie paid for l.y them on the ;ilst May, deductions being made by us for their completion, tin; Government taking all these works into their own hands to linish. That is the only inference we could draw from your letters of the iith and Kith May last, Wis replied to those lottery offering the Government, a hasty approximate claim oo one contract, at the same time taking steps lo measure up and value other claims in the various contracts and agreements between the liovernment .tod ourselves. In yom- | ( .|( lT ol the ITtli June, a similar request to thai, mentioned above is innde, cxleiiiiing the time to the ilrd tJilly, lor details. Wo can put no o'licr coiistriieiion on this eont!:;poiidenei> limn the one re!erred to, We have already tohl the <iovi■rnmeiii, :w near as we ronl'd eslimate, the time it would take to finish tlie works, and until these works are llnisheil, we eannot supply a ilelailcil account of our I'lainis. In your letter of Ihe 22nd instant, yon s;iy that tin- Government propose (o (nkc oyer ihe lines at Iho time mi ntii.ueil viz., Ist August next. Wo eertainlv made calculations to finish most of the works in hand by that lime, mid we expect, if nothing mi foreseen happens, to arrive at or near n eo.iiph linn, excr;t the maintenance, We trust the Government will see Ihe impracticability of furnishing the details called for before the completion of the works. At the best, we could only semi in

an approximation similar to that of the ltHli May, a litt| () moro extended, with several ouiissioiiH added. Tho correspondence may be admissible if tho Government can show in any w«y Wu „ ru n()t with the works as flint as the circumatances will permit, with due regard lo tho permanency as well as the safety of the public. We cannot understand tho policy of most of this correspondence, iw it is not businesslike nor yet reasonable to make demands which cannot he complied with. We have tried to explain why we cannot supply the Government with tie required mat.ter; if we had lo ileal with those whose intimacy with technical matters eiiubled them to understand the position of I' lo works, it would savo much time and complicity. Adverting to a portion of the letter ot 2'Jn,l .June, "that any long delay in the conipli iion and the taking possession into their own hands would be a serious loss to llio community," this implies that something m wionj.;, Hueli an imputation is not fair Inwards us. it i 3 a atatemeut which requires experience l in .such matters to prove, 'he Government cannot deny that we have been put lo great' inconvenience by tho instructions imposed on us by opening the Tunnel for traffic, and at the name time to carry on our works to completion—this too with tho disadvantage 01 not having a niilllcicnoy of rolling stock o do tho work properly. We cannot 'el llUK!l1 surprised lit such vague statements as the above, for tho conclusion to lie drawn is that it is merely a doubtful comprehension of the technicalities of the ease. Such remarks can in no way have a beneficial effect. Under the circumstances we did our bent, and we believe the public generally and farmers particularly have received it direct benefit from the course pursued. Willi regard to otir staff, it has been no easy matter for us to collect, and in many instances for us to train. When the proper time comes, the Government will see till! difficulty. As tlio terms oil which we engaged many of them were for a period which the Government may not feel inclined to guarantee; this wc hud to do as well as to give increased salaries from year to year. We arc not in the position at present to suggest to the Government any mode of procuring a staff, whose duties arc so responsible, and the public as a general rule have confidence only m tried anil experienced men. We may also mention that wc have to keep for our own purposes the nucleus of a staff, in fact wc could not part with some of our hands, except an offer be made to raise them above their present position—in such a case wc think it wrong to object. In conclusion,'wc beg to State that we are inclined to meet the Government fairly. If any claims be disputed, wc are willing to have them adjusted in the most amicable way, as we have so far conducted our business, without having reference to higher tribunals than the contracting parties themselves for a period of sixteen years, wc sincerely trust that this will not be an exceptional case. Wc desire to have an early settlement, and shall use all possible speed to obtain that end.

[o] June 25, 18GB. 1 have the honour to acknowbigc the receipt of your letter of yesterday's date, explaining the view which you had taken of the purport of my previous letters, and stating that until the works now in hand are finished, you cannot supply a detailed account of your claims. 1 gather, however, that you anticipate no difficulty in arriving at p. completion by the time mentioned in my letter, as the date at which the Government will take over the lines—viz., the Ist of August. In the absence of the details for which I have asked, I have no further remark to make on the early portion of your letter; but with regard to the construction which you put on the sentence of my letter of the 22nd instant, which states that any longer delay in the completion and taking possession of the lines would be a serious -oss to the community, I must iu justice to myself and my colleagues, entirely disclaim any intention of implying that anything was wrong, The sentence as written by me, had no other meaning than to convey the conviction of Government, that it would be greatly to the advantage of the community that a work, which, from previous causes to which it is needless to refer, has ken protracted over a \esy long period, should be wrought to a conclusion as soon as possible. Your present letter implies a similar belief on your part, and I have every confidence that, acting in the spirit of the last paragraph of your letter, both parties may arrive at a satisfactory conclusion. Jn relation to what you say about your staff, * nave to observe that it is because the Government recognises the pains which you havo bestowed upon their selection, and the efficiency which has been attained, that it is desirous of taking no step that can be avoided, which mi'jht result in unnecessarily depriving the public of a continuance of their services; or, which may seem to overlook the claims, which men brought from a distance with a special object, would have for consideration iti any new engagements which may be made, Understanding from your present letter that there are conditions under which you are not disposed to raise any objection to a transfer of the services of some portion of your staff, I should be glad prior to taking other and immediate steps for securing competent men, to learn from you whether your convenience would be interfered with by the Government taking over the engine drivers, if willing to come, and what terms you would consider it right they should obtain to justify their requesting to be released from their present engagements.

To Messrs Holmes and Co.

Contractors for the Lyt telton and Ciiristcluirch liailway. I, William Kolleaton, Superintendent of the province of Canterbury, hereby give you notice, pursuant to clause 22 of the Contract for the construction of the above line, that after the expiration of 0110 month from ihe service of: thin notice upon you, possession will he taken liy me of the liailway, Works, &c., in terms of the said section and that the full terms of the said section (:i copy of which is hereunto annexed), will be carried out.

Clause 22. Power to Suspend Works. Should the contractor not make the stipulated progress with the tunnel, or conduct the work generally in an inefllcient or improper manner, the Superintendent of the province shall have the power on giving one month's notice to that clFcct, in writing, to employ such additional assistance as the may think requisite, or to take the works, with thecontraetor's tools, material, and plant, into his own hands, and to employ other pmims to complete the contract, the Superintendent paying the contractor for the value of Hie plant and materials so taken frmihim; mid Ihe o mtrador glial) forfeit all clii'ir; in iVipwt ol any further payment for Iho work already done, and shall further lie liable to indemnify for any expenses over and above the amount of the contract which may he reasonably incurred in completing the works in consequence of his negligence,

[o.] June 20, 1868. In order to prevent any misapprehension or question which nii»ht nri.io mm to the rivlil of the Government to enter upon the railways in accordance with the intention notified in previous letters addressed to yon on the 17th and HL'iid instants, should the works lie incomplete, I liii vi: to i;i\'o you notiee, under the ":!nd clause of the contract specification, of ihfi intention of the Government, alter the I'ip-ii! of oho month from the .'Kith day of June instant, to enter upon the tunnel works, ill consequence o! the stipulated pro);re<s with the tunnel not h iving been made in tenon of tlm contract. Memo, for Mr Pol),ion, June 27, i am desirous of plaeim: before the Provincial Council when they meet on KriJiu next, the latest information in reference to the progress of the railway works in the tunnel, I shall therefore he uliul if you can furnish mo with a report statin;; ihework necessary to hu done to the Hour ; the nature and extent of the work still required on the roof; the length of time which the latter will take to complete at the present rate of progression ; llie length of time the trallie will require to he slopped in order to complete the roadway,

anil the probable cost of completing the whole of the tunnel works according to the contract. 1 shall be obliged if you can let me have the report not lutor than Thuriday, July 2. blown, Joixin, Secretary for Public Works, Memo, for Mr Dobson, .June 27,1808. I shall bo obliged by your informing me before tlio 2nd of next month what your estimate is of the expenditure required to place the railways iu your engineering charge iu proper working order, Knwi), Jolmb, Secretary fur I'ublic Works. [»] June 2!), 1111)8, The Omeo being about to leave for Melbaurnc, 1 have the honour to request that you will be good enough to inform mc this morning whether I he engine-drivers employed by you on tho railways will lie allowed lo transfer their services to the Government on tlio Ist August next, and whether they ure willing to do so. It is important that I should receive an answer at once, so that in the case of your not agreeing to such transfer it is the intention of the Government to obtain engine-drivers from Melbourne,

[u] June 29, 18G8, We have the honour to receive yours of the 2fllh instant. In reply we have to stato that we are desirous of assisting the Government in every possible way. The correspondence has hitherto led to no practical result, mid we agree with the Government in wishing that some settlement might be come to. In our letter of 18 th May, written without prejudice, we made proposals for a settlement. These proposals remained unanswered for one month. On the 17th June wc received n letter from the Government ignoring these proposals altogether. Under these circumstances, the Government can hardly be surprised that we withdraw our proposals. We imagine that in business where an offer is made and signed, the person making the offer is fully justified in withdrawing it. The letter, however, of the Government contained the following passage:—"Should there be any difference with regard to these claims, the Government are willing lo leave the same to arbitration, or to be settled iu any way, &c." The construction wc put upon the passage was what wc believe every unprejudiced person would put lip ili it, that the Government fiad offered to submit any difference that might arise between ourselves and the Government to arbitration in the usual way ; and if we did not assent to this course, then that some other mode of settlement should be come to. In our letter of the 19th instant, we accepted this proposal. In your letter ot the 22nd instant, we were surprised lo find the following paragraph : 11 That portion of my letter which suggested a mode of settlement which you seem to have construed into an offer to arbitrate, must he considered ns withdrawn," &c. It must be clear that there is a vast difference in withdrawing a proposal made without prejudice, and ignored by the Government for a full month, and in repudiating a proposal not made without prejudice, and accepted forthwith. We are sure that the Government will by no means decline to fulfil the engagement they have entered into. As requested by the Government, we are making out in detail a full statement of our claims, and the same will be in the bands of the Government at the earliest possible period, If the Government wili repeat thoir assurance that any difference that may arise between ourselves and the Government in respect of these claims, shall be settled by arbitration, in the same way, ve shall not only be prepared in every way to further the wishes of the Government in giving them every possible facility, but will use our best endeavours to induce our etaff to enter the Government service.. It must be distinctly understood that this is written without prejudice, and that an answer is given | without delay.

[o] July 1, 1868. I have the honour to acknowledge the receipt of your letter of the 29th ultimo, and to thank you for the assurance of your desire to assist the Government in rvery possible way. In referenca to what you say on the subject of arbitration, I have to remark that it would be impossible for the Government in the absence of a definite statement of your claims in excess of the contract, to pledge itself to the course it would adopt for the settlement of differences which might arise hereafter. It is,' obvious that there might be claims which the Government could not admit to have any validity, and which it would be bound to decline to entertain. I mar, however state that the sentence quoted by you from my letter of the 11th of June, was not intended to do more than convey an expression of a general disposition on the part of the Government, to recommend to the Provincial Council the adoption of such a mode of settlement by arbitration or otherwise, as might be agreed on by the parties; and the Government is still prepared to act in the same spirit; but neither then nor now has there been any intention to prejudice or bar such action as might be determined upon by the Provincial Council when the subject was brought before it. I therefore thought it right at once to prevent any misapprehension on your part, of the intentions of the Government. It now remains again for me to point out that it rests with you by supplying details of your claims, and giving a statement of the grounds ou which voil prefer them, to enable the Government to take action for their settlement. In conclusion, I may ray, that the Government intend independently of any correspondence that has passed between us, to recommend to the Council that all such claims as the Government think urniht to be submitted to arbitration should he so referral, mid it was with that object that I have repeatedly pressed upon you the necessity of furnishing full details of all the claims you intend to make,

[u] July 2, lStiS. We have the honour to acknowledge tlio receipt of yours of Ist July, and in reference to it wo observe that' we regret that its terms seem to us couched in such studied ambiguity that- wc feel Hint there is not that sincerity on the part of the Government which is necessary us the basis of any negotiations for the settlement of our claims; and that, consequently, wc wish you to consider such negotiations at au end.

[n] July 2,15C8. We Ix-R to acknowledge the receipt of your memorandum No. (i2S, conveying notice of the alleged intention of the Government to take possession of (lie railway works, in terms of section 22 of nnr contract, and to inliinalo that we deny (lie loit.tlity of sc.eli intended action. liuiin order to the proleelion of our own intere'ts, and the eirtain completion of the work, we hep to mlvin* you that \vl> shall not from this date allow'the use of the railway from the Perry mead junction to Lyttoiton, until the wliol# is llnislied.

fit] July 3,1808. | In consequence of the "losing of the line for completion from the Ferrynicad Junction to Lyttelton, wo desire instructions as to whether the Government wish us to continue running the trains from Christeliiireh to the JAirryniead. July 3, ISM. Memo, for Mr Doh-on, 1 am instructed to request that you will inform Messrs Holmes and Co, tliat (lie Goveroiuent waive their rii;h! to ult r the present gradients of the tunnel. KllWt). Jot,l, IK, Secretary lot' Public Works/ Memo. j„ly ;i, tsi;?. Will Mr Dolwon he good enouj;h to state whether the Nlopimjje of the trallie on the. line is necessary to enable the contractors to complete the works in the tunnel before the end of the month, provided it is not necessary or advisable to take up the floor. \VM. HUM.kston. Memo. July ;t, lStig. 1 do not consider it advisable at the pr«Bent time to disturb the lloor, but' Bhould

prefer lowering il by degrees, us suggested in my report 16-2.7 05. If the Hour is not disturbed, I think the contractors would have no dilllculty in completing the rest of the tunnel work during tho current month without cloning the tunnel for tralile, K. Doiison, Kailway Kngineer.

Railway ofllccs, Christehurch Station, -July 7,18(18.

Sir,-In accordance with your verbal instructions of tli" 4th instant, that I should report upon the time required to complete the tunnel, Hiave the honour to slate, that with the additional staff placed upon the works since the closing ol the line, the contractors ouijht to have no difficulty in completing (he brickwork and masonry, the closing of the up-east shafts, and the boxing up of the road by the 181 h instant.

I ho only works then remaining to he done ill till) tllilliel will he some slight frimmiii" to the si do walls and drains, the lowering ofthe gradient in places, and the substitution of full length sleepers for Uiohc put in under the contract length ; all of which works can lie done tit any time, without interruption to the truffle. 1

I have the honour to be, Sir, Your obedient servant,

K. Donso.v, Hail way Kinjincer, The Secretary for Public Works. &e. &e.

Chrifltchurcli, Gili July, 1868.

Sin,—WiMi reference t i our conversation this morning, when 1 was asked by you to state my recollection of what took'place at the time when the Incentive, of which I wa-, then a member, agreed to the alteration in the LyHelton end of IJIO tunnel, viz., that of adopting a straight line instead of the curve as originally contemplated. I have the honour to inform you that the total sum then named, viz,, five thousand pounds, v.as taken to include all cost, of any kind whatever, of the alterations above mentioned; and that the Executive of that day, advised to this effect by Mr IJoljeoii, tho Kailway Engineer, gave authority to that olhcer to order the work to be carried out on these terms. 1 have the honour to be, Sir,

Your very obedient servant, Thomas W. MAI;I>;; His Honor the Superintendent.