COUNCIL PAPER—No. 1.

Lyttelton Times, Volume XXIII, Issue 1407, 1 June 1865, Page 5

COUNCIL PAPER—No. 1.

CONTRACT For the Construction of the Great Southern RAILWAY, FROM CIIRISTCIIUKCH TO THE NORTH Bank of the Rakaia. Articles of Agreement made and entered into this twenty-ninth day of May, one thousand tight hundred and sixty-five, between Samuel Bealey, of Christchurch, Esquire, Superintendent of the Province of Canterbury, New Zealand, of the one part, and George Holmes and Edward Richardson, carrying on business as railway contractors, under the name and style of " George Holmes and C 0.," in the said Province of Canterbury, and hereinafter called the contractors, of the other part. 1. The contractors agree to construct a line of railway from a point situated on the eastern boundary of Colombo street, in the city of Christchurch, in the province aforesaid, where ifc bounds the western end of the land reserved for the Christchurch station of the Lyttelton and Christchurch Railway, marked A on a certain general plan, prepared by W. T. Doyne, of Christchurch, aforesaid, civil engineer of the said line of railway, to a point on the northern bank of the river Rakaia, in the province aforesaid, marked B on the said general plan, being a total distance of thirty-three and a-luilf miles or thereabouts, including sidings in accordance with the section, plans, and specifications, prepared by the said W. T. Doyne, as engineer of the said line of railway, subject to certain modifications hereinafter mentioned.

2. The contractors agree to construct the first section from Christchurch, of thirteen miles in length, in twelve months, and the remainder to the said north bank of the liaakia in two years from the day of the departure from Lyttelton, in the province aforesaid, of the first English mail after the execution of this contract, at and for the total sum of two hundred and one thousand pounds sterling. 3 The contractors agree to execute the whole of the works named in the said specifications, and shown in the drawings prepared by the said W. T. Doyne, in accordance with the said specifications, and subject to certain general conditions drawn up by the said W.T. Doyne, and annexed to these presents with certain modifications, as aforesaid, and to furnish and supply the following rolling stock, that u to say, two locomotive engines, similar in all respects to those now at work on the said Lyttelton and Christchurch Railway, seven passenger carriages, of mixed classes, to be specified by the said W.T.

Doyne, or the engineer of the said line of railway for the time being, and fifteen goods vragon*.

4. The Contractors agree, if required by the Government, to work each section of the said line of railway for traffic for six months after the completion of the same, and to supply all necessary station arrangements, to enable the traffic for that period to be conveniently conducted, and to run not less than two passenger trains each way per diem, at such hours as the Government of the said province may from time to time approve, and at a rate not exceeding sixpence per mile for each passenger, and to carry all goods that the convenience of the public may require at a rate not exceeding two shillings and sixpence per ton per mile, forty cubic feet being considered a ton of measurement goods, and to receive and take the said tolls in consideration of the working expenses. 5. And the said Samuel Bealey, for himself and his successors, agree to make payments to the contractors monthly, on the certificate of the said W. T. Doyne, or the engineer of the said line for the time being, estimated from a schedule of prices to be agreed upon between the engineer of the said line for the time being and the said contractors, on the basis of the said sum of two hundred and one thousand pounds sterling, in the following manner, namely—one-half in cash, one-fourth in waste lands, estimated at the rate of two pounds per acre, and onefourth in provincial debentures, estimated at ninety pounds, in respect of one hundred pounds of nominal value, and bearing interest at the rate of six pounds per centum per annum: Provided always, and it is hereby agreed, that the Government for the time being of the said province shall have power to buy back and redeem the said debentures at the said price of ninety per centum, from time to time, within twelve months from the issue of the same, and the said contractors shall at any time within twelve months as aforesaid, upon payment of the value of such debentures at the price aforesaid, produce and hand over the said debentures to the said Government. The said monthly payments shall inelude the value of all works executed, and all materials delivered for foreign materials, the first payment to be made on account when delivered into depot at Christchurch aforesaid, and the second payment when laid in the work; and, for local materials, the first payment to be made on delivery at the spot where they are to be used, and the second payment when laid in the finished work.

6. In lieu of clause twenty-five of general conditions annexed to the specifications aforesaid, the following shall be substituted:—The Government may retain in their possession the whole of the debentures coming due under the above-named conditions of payment, until the completion of the contract, but shall pay to the contractors the interest on the same as it from time to time becomes due.

7. The following modifications in the clauses of the said general conditions shall be made:—ln clause six, for the word " engineer " shall be substituted the words "arbitration in the usual manner;" in clause 12, for the words "if the Government in its discretion shall think fit,' shall be substituted the words, "if it shall so be settled by arbitration;" in clause 23, for the words " the Provincial Engineer for the time being," shall be substituted the words, " arbitration in the usual way." Notwithstanding anything to the contrary in clause 26, no payment after a certificate for the amount has been given as aforesaid, shall be withheld or delayed a total period of one calendar month, and in case payment shall not be] paid within! that period, damages for such delay shall be assessed by arbitration in the usual manner.

8. To clause 53 of the specification the following proviso shall be added :— Provided always, that in the use of the line by the Government for such purposes, the contractors shall not be subjected to any inconvenience that may interfere with the progress of the works. In clause 2, the words " with the exception " to " permanent way " shall be expunged.

9. Clause 16 of the general specification shall be expunged, and the following substituted The contractors shall supply all the materials of every description for the permanent way, including all the rails, fish-plates, bolts, and screws." Clause 18 of the general specification shall be expunged.

10. And it is hereby further agreed by and between the said parties hereto that the provision hereinbefore contained for the payment of a portion of the said gum of two hundred and one thousand pounds in waste lands, shall be subject to the approval of the Provincial Council; provided always, that in the event of the said Provincial Council, not approving of the said pay ment in waste lands as aforesaid, the said contractors shall receive the said portion from time to time in cash. But the contractors agree in the meantime to proceed with the construction of a portion of the line extending from the said terminus in Christchurch, to a convenient and suitable point in the neighbourhood of the George and Dragon Inn, being about six miles in length, the payments for which shall be made in accordance with a schedule of prices agreed upon between the said Superinten. dent and the contractors.

11.—In the event, of payment not being made as aforesaid in debentures or in event of such debentures being redeemed as above provided, other security, to the satisfaction of the Government, shall be furnished by the said contractors.

12.—The contractors hereby agree not to demand, during the first six months after the commencement of the said works, more than one thousand pounds in cash in each month, such commencement to be determined by a certificate, signed by the said W. T. Doyne, or the engineer of the line for the time being.

13. It is hereby further agreed by and between the said parties hereto, that in case the financial position of the Province should at any time be such as in the opinion of the Government to require a modification in the terms of this agreement, the said Samuel Bealey and his successors shall hare the power of extending the said term of two years to any period not exceeding in the whole four years, from the commencement of the works as aforesaid, or to stop the works completely at any stage; provided that the contractors shall be paid in full for all works actually executed, and for all materials ordered, prepared, or contracted for, with the sanction of the engineer for the time being, on delivery to the Government. And the contractors hereby waive all claim for damage on account of such extension of the time or stoppage of the works as aforesaid ; and after such stoppage of the works, in case the Superintendent of the said province for the time being shall think it desirable, within the said period of four years, to resume the works, the said Samuel Bealey, for himself and his successors, hereby agree to give such further execution of the works to the contractors on the same terms as are herein expressed ; and the contractors hereby agree to undertake such execution, provided that the estimated period for the completion of such works so stopped :tnd resumed, shall not exceed the said period of four years, commencing as aforesaid.

14. And in case the said period of two years shall be extended as aforesaid, the said Samuel Bealey, for himself and his successors, hereby agrees to pay to the said contractors, at the end of two years, commencing as aforesaid, fifty per cent, of the debentures held as security as hereinbefore provided, and the remaining fifty per cent, on the completion of the works, should such completion take place before the end of the third year ; but should the works not be completed at the end of the third year, then twentyfive per cent, shall be paid at the end of the third year, and the remaining twenty-five per cent, on the completion of the works.

15.—And it is hereby agreed by the said con-

tractors, that the rolling stock and iron-work for the permanent way to be provided by the said contractors under this agreement, shall be manufactured, and the contract for them let in such a manner as the engineer for the time being may approve; and that such rolling stock and permanent way shall be subject to such system of inspection, and such reasonable tests, at their own costs and charges, both at the place of manufacture and after arrival in Christchurch, as the said engineer for the time being shall direct; and in case any of the said rolling stock and iron work shall be, in the opinion of the said engineer for the time being defective, the contractors shall supply fresh materials to the satisfaction of the said engi-

neer. 16.—And it is hereby lastly agreed and declared by and between the parties hereto, that in case any dispute or question shall arise with respect to any matter or thing concerning or relating to the execution of the works connected with the construction of the said line of railway, or with respect to the interpretation of the clauses of these presents, or of the said general conditions and specifications, such dispute or question shall be referred to and be decided by two indifferent persons, one to be named by the said Samuel Bealey or his successors, and the other by the contractors, and in case of difference between them, then by any third person, to be by the said two persons named; and the opinion of such two persons, or of such third person, or of any two of them, shall be binding and conclusive upon the Superintendent of the province aforesaid for the time being, and upon the said contractors, and by them submitted to accordingly, without further controversy, and which said submission shall be by mutual bonds and such other reciprocal stipulations as are usual and proper in such cases: provided always, and it is hereby expressly declared that nothing in this clause shall in nny way invalidate any stipulations contained in the said general conditions and stipulations, as modified by the clauses to that effect in these presents. In witness whereof the said parties to these presents have hereunto set their hands the day and year aforesaid. , S. Bealey, Superintendent. Edward Richardson. I Signed by the said Samuel Bealey, and sealed with the seal of the province of Can- | terbury by the Keeper of the Public Becord, and signed by the said George Holmes and Edward Richardson, the words "if required by the Government" having been previously interlined between the eighteenth and nineteenth lines of the first page hereof, and the words •« with the sanction of the engineer for the time being " having been previously interlined between the nineteenth and twentieth lines of the second page and the words " with the sanction of the engineer for the time being " at the twentyfirst and twenty-second lines of the second page having been stiuck out, in the presence of