THE CHRISTCHURCH RLECTRIC TRAMWAYS.

Otago Daily Times, Issue 13543, 16 March 1906, Page 5

THE CHRISTCHURCH RLECTRIC TRAMWAYS.

(Pes TJkited Press Association.) OH'IIISTCHUECH, March 15. At a meeting of the Tramway Board this afternoon the question of tho completion of Iho Electrical Construction Company's contract, was brought up bv a letter from Mr Chamberlain, the board's engineer, who was appointed arbitrator between the hoard and tho company in the event of any dispute occurring. Mr Chamberlain stated that lie had sent the following letter to tho Construction Company:—"l am directed by tile board to call your attention to clause 32 of the general conditions of contract, especially that part which provides that progress payments shall cease when they amount to 10 per cent, of the amount ultimately payable under the contract. The amount already raid you by tho hoard is over 70 per cent, of the contract amount, plus extras. I am now further directed to inform you that no further progress payment will ho made by tho board, and also that the board claims to deduct tho follow, ing penalties in terms of the contract from any further moneys becoming due to you —viz.: Section L 2, clause 10, to February 6. 1906, £9150; and also until completion at the rate of 5150 per week unless you complete the remaining lVart of trio work at the rate (specified. Section L 2, clause 30, at £50 per week from March 12, 1906, until completed. Section M. clause 30, at £50 per week from March 12, 1906, until completed. I shall he glad to hear from you whether or not you dispute tho right, of the hoard to take up the position abovementioned, as, if so, it will be necessary for jw.t to take such action as you may bo advised is proper in the circumstances." Mr Stead said the board had no power to discuss the matter., as the engineer was in tlie position of arbitrator. The letter was received without comment. Tlfc> board accepted the tenders of Messrs Packer and •loncs at £415* for earthed extensions, and that of Rabcoek and Wilcox for a tubular boiler. Chamberlain's letter in brackets.

Section L 2 covers tho whole of the permanent way work under the contract. Clause 10 fixes the rate of progress at half a milo per week, and specifies tho penalty for non-compliance. Clause 30 imposes a separate penalty in the event of non-fulfilment of conditions. Section M., clause 30. refers to overhead wire work. It is probable that litigation will follow the notification of the penalties.