Hawke's Bay Herald TUESDAY, MARCH 12, 1837. THE PATENT SLIP DISPUTE.

Hawke's Bay Herald, Volume 11, Issue 834, 12 March 1867, Page 2

Hawke's Bay Herald TUESDAY, MARCH 12, 1837. THE PATENT SLIP DISPUTE.

Among the passengers from Wellington to Auckland by last trip of the Lord Ashley was Mr. H. J. Kennard, of the firm of Kennard Brothers, the contractors with the Wellington Provincial Government for the erection of the patent slip in Evans' Bay. We have to thank Mr. Kennard for a printed copy of the correspondence upou the subject of the slip, from the execution of the original contract to the present time. From this we are pained to learn that the long-pending dispute has not been settled, but that, on the^ contrary, negociations between the Provincial Government and the Messrs. Kennard have come to an unpleasant termination. Although we have read over the cprrespondence^in question, we can scarcely say tfilt we have mastered the subject so ftffas to write confidently about the original dispute ; but it is evident on the face of the papers that the Messrs. Kennard had been misled as to the nature of the strata upon which the foundations of the slip had to be raised ; and that the case was eminently one for friendly compromise. Upon the extent to which the contractors should be reimbursed, however, a wide difference of opinion would seem to have existed between the two parties. This is greatly to be regretted. Wellington, through the delay in gettiug the slip erected, is suffering an incalculable extent of injury ; and it is lamentable to think that the consideration of a few thousand of pounds should have been allowed to interfere with the rapid construction of a work so much needed in the peculiar commercial position which Wellington occupies. But whatever the merits of the oz*iginal dispute, or whatever the proper course for the Provincial Government to have pursued, communication between the parties concerned has been summarily stopped, and, ere this, Mr. Kennard has probably been received with open arms by the people of Auckland, who will fully appreciate what Dr. Feathetstou has cast from him. We regret to say that the ground upou which negociations have been finally broken off, would appear to be that the Wellington Provincial Government has intimated its intention of repudiating the validity of the contract upon the ground of a technical omission. If so, this will have a serious effect upon the commercial standing of the provinces generally. We trust that the fact is not so j but, in the following circular letter, addressed by Mr. Kennard to the members of the Provincial Council of Wellington, it is broadly asserted that such is the case. At a future time we may further extract from the papers before us : — Wellington, New Zealand, February, 1867. Sic, — Herewith I have the honor to enclose you copies of official documents and the correspondence, so far as itis material, that has taken place on the subject of the Patent Slip Contract and dispute. I will refrain from making any remarks, as I believe that the documents themselves are sufficient to enable any unprejudiced person to arrive at a conclusion on the subject. When I arrived in this country I arranged the basis of a settlement with His Honor the Superintendent, subject to the approval of his Executive Council, The Council did not approve of the arrangement, and the Provincial Solicitor informed me (for the first time) that the late Executive Government had omitted to take the necessary legal steps to finally bind the Province to the Contract made on their behalf by their Agent, and that if I did not agree to the terms they then proposed, he would raise a technical objection to any proceedings I might take against the Government. In short he., maintained " that the Contract not having been legally adopted by the Superintendent and Executive Conncil, was not binding in law on the Province, and therefore there was no Contract between us." On this point, I have taken the best Counsel's opinion I could procure, and have been advised, " that looking at the subject in its strictly legal bearing there might in law be a possibility of such a technical defence being admitted, but the Courts in New Zealand exercising an equitable, as well as a legal jurisdiction, would probably order the Superintendent to cause such acts to be performed aa would render the Contract legally binding on the Province." I have however been informed that an Act has been passed by the General Government (which since the execution of our Contract has come into* operation) which prevents a creditor of a Province from enforcing judgments, leaving it entirely in the hands of the Provincial Council whether they will, or will not, satisfy the judgments that may be obtained against the Province by refusing to appropriate necessary funds. I cannot, however, believe

' that the Provincial Counoil of Wellington i will allow the Provincial Solicitor to shel^r himaeii under a W, wti^L whß Certainty never intended to enable a Government/ to defraud its creditors, nor do I think that the Council will be in any way a party to an aot of repudiation, as it would be, were it to refuse to give me facility for placing, my firm in precisely the same legal position/ as we should have been, had the late Government done those things, whioh morally and equitably they were bound to do. It is evident that if the Provincial Council would allow their Solicitor to repudiate the Contract by resorting to the technical defence I have mentioned, they would take advantage of the Act referred to. I do not for one moment accuse the late (government of having wilfnlly omitted to do such acts as would legally bind the Province for the purpose of taking advantage of a contractor who they were well aware was acting and relying on the Contract; such proceedings would have been positive fraud, for which they would have been personally liable. But I submit that it would be as criminal to take advantage now of what was doubtless originally a mere accident. 1 You will perceive from. the correspondence that the Superintendent and Provincial Solicitor abstain from committing themselves in writing to a defence amounting to repudiation, although they have verbally informed me that " this " was the technical defence to which they intended to resort. It would be waßte of time, under these circumstances, and a useless expense, to take tedious legal proceedings which would bring me no nearer an adjustment of my claims than I am at present. In any case, it is my intention, before taking legal proceedings, to petition the Provincial Council, at whose hands I feel perfectly sure of obtaining justice. The good faith of this Province, which has hitherto been unstained, was my security when I undertook to employ a large amount of capital at the Antipodes. Trusting that I may rely on your support, I have the honor to be, Sir, Your obedient servant, H. J. KENNARD.