THE SOUTHERN TRUNK RAILWAY.

Otago Witness, Volume 25, Issue 1004, 25 February 1871, Page 7

THE SOUTHERN TRUNK RAILWAY.

Dunedin, February 15th, 1871. Sir — "We have been instructed, by the gentlemen forming the Company for the construction of the proposed Souths m Trunk Railway, to forward th© enclosed correspondence, with a request you will publish the same for general information. — We hate, &c, E. De Cable and Co., Agents to the Company. Dunedin, November 26th, 1870. To His Honour the Superintendent and Members of the Executive Council. Gentlemen — On behalf of our principals, we beg to offer for your consideration, as follows : — To construct the proposed railway from Dunedin to the Clutha for a sum not to exceed L 400,000. Debentures, say, of LlOO each, to be issued by the parties advancing the money (principal guaranteed by you) ; coupons attached to bear interest at the rate of 8 per oent. per annum, payable half-yearly in Dunedin, London, or Melbourne, and signed by the Superintendent. Term, 15 years (or for a longer period, if thought preferable). The L 400.000 to be deposited with the Provincial Government before the issue of the debentures. We undertake to get the above offer carried out, and to have the railway started, say, within three months of notification of acceptance.— We have, &c, E. De Carle and Co., as agents. Land and Works Office, Dunedin, 7th December, 1870. Gentlemen — I have the honour to acknowledge the receipt of your letter of the 26th ultimo, in which you submit a proposition to the Government, on behalf of your principals, to construct the proposed railway from Dunedin to the Clutha. In reply, I have to state that the Government is prepared to favourably consider your proposal — as a condition to which, however, it desires to be informed of the names of the individuals or Company whom you represent. I have to regret the delay that has taken place in replying to your letter.-— 1 have, &c., D. Ruin, Secretary for Land and Works. Dunedin, Bth December, 1870. The Secretary of Land and Works, Sir — We are in receipt of yours of 7th inst., No. 10861-44, and in reply would state our principals are prepared to carry out the proposition of the 26th ult, or will, if preferred, hand over to the Government on the issue of debentures, L 400,000, they carrying on the proposed railway works. Our principals cbject to being brought forward prominently in the matter, unless there is a -guarantee that the transaction will be carried out by the Government. We may state that on receipt of an agreement to either ef the proposals, the money will be at once forthcoming.— We have, &0., B. De Cable and Co. Land and Works Office, Dunedin, 9th December, 1870. Gentlemen — I have the honour to acknowledge the receipt of yours of the Bth inst., in which you inform me that your principals are prepared to carry out the proposition contained in your letter of the 26th ult, or will, if preferred, hand over to the Government on the issue of debentures, L 400,000, the Government to carry out the proposed railway works. In reply, I have to inform you that the Government is prepared to close with your offer sb soon as you signify your acceptance of the following terms, viz :—: — Ist. That the Company be immediately constituted and registered under the provisions of "The Joint Stock Companies Act, 1860," for the purpose of constructing a railway from Dunedin to the Clutha. 2nd. That a deposit of LlO,OOO be made as a guarantee of good faith, which deposit will be returned, together with interest at the rate of 5 per cent, per annum, as soon as labour and materials to the value of LlO,OOO shall have been expended upon the works. 3rd. That the Government shall have power to purohase the railway on behalf of the province, at any time after its completion, at a price which shall be fixed by arbitration, provided that such price shall not exceed L 400,000. 4th. That the conditions and agreement for constructing and working the railway shall be those issued under the hand of His Honour the Superintendent, under date November, 1869, with certain i alterations noted on copy enclosed, which conditions shall be signed by the Company. I shall be glad to hear that you are prepared to comply with the above eon* ditlow, m 4 will leave tht nuttt* optn

until Thursday, the 15th inst. — I have, &0., D. Reid,

TO THE EDITOR.

Secretary for Land and Works.

Dunedin, 13bh Dec, 1870. The Secretary for Land and Workß.

Sir — Owing to unforeseen events, and our requiring to leave town on business, we have been unable to arrange matters in connection with, the proposed railway | offer as we wished, and would request an | extension of time, Bay for a week or ten ' days. — We have, &c, E. De Cable and Co. Land and Works Office, .Dunedin, 14th Dae., WO. 1 Sir — I have the honour to acknowledge the receipt of your letter of the date quoted in the margin, in which you | request an extension of time in connection with the proposed railway offer for a week or ten days, and to acquaint you that the Government has no objection to offer to such an arrangement, but wishes you to understand that it does not consider itself bound to your principals, should an eligible offer be made for the construction of the railway during that interval. — I have, &a, D. Reid, SeoretaTy for Land and Works. E. De Carle, Esq., Princes street.

Dunedin, 19th December, 1870. The Secretary for Land and Works. Sir — We have now the honour to submit the following propositions, either of which we are prepared to carry out at once, viz. :—: — To construct a substantial line of railway to the Clutha, the Government undertaking to purchase the same for L 400,000, Bay within five or ten years, 8 per cent, interest to be guaranteed. The line to be kept in good repair ; maintainanoe to be a charge as working expenses, Or, let the Government have L 400,000 on debentures for fifteen years, payment secured by mortgage on pastoral rents, or other equally good security.— We have, &0., E. Db Carle and Co.

Land and Works Office, Dunedin, December 21st, 1870. Messrs E. De Carle and Co., Dunedin.

Gentlemen — I have the honour to acknowledge the receipt of your letter of the 19th inst., in which you submit further proposals for the construction of the Southern Trunk Railway.

In reply, I have to inform you that the Government cannot accede to either proposal in its present chape, but should a Company be duly formed and registered in terms of the Ordinance, the Government will be prepared to give an undertaking to take over the railway within five or ten years at any sum which shall have been actually expended in constructing the line, and will also agree to allow the promoters, in addition to the guaranteed interest of 8 per cent, a reasonable per-centage on its cost to reimburse them for the expenses incident to the formation of the Company, and the management of the undertaking. Should you feel.disposedto accept these terms, and to comply with the other conditions embodied in my letter of the 9th instant, I shall be glad to learn what would be the lowest per-cenfage on which you would be prepared to commence the undertaking. — I have, &0., D. Reid, Secretary for Land and Works.

Dunedin, 23rd Dec. 1870. The Secretary of Land and Works, Sir — We beg to acknowledge the receipt of your letter of the 21st inst., on the subject of proposals submitted by us for the construction of the Clutha Hailway, and have laid the same before our principals, who have desired us to state that while being most anxious to enter into an arrangement with the Government for the work referred to, they cannot see their way to acceding to the first proposal contained in your letter ; in fact it would be impossible to form a company under the terms suggested. The Government is no doubt aware that a good line cannot be built for much, if anything, under L 400,000 ; and besides, it would be manifestly to the interest of the promoters to | build a good lino ; and it seems to us ' that if the Government got such a line made and handed over to them in firstrate working order, it would be as good a bargain as the province could expect to make— indeed for a less sum than its cost has ever been properly estimated ; and we feel sure that no one who has bona fide Intentions of carrying it out could make a better offer. We, therefore, trust the Government will reconsider the matter, and find it to the public interest to accept the offer contained in our letter of the 19th inst., which we are prepared to undertake at once. — We have, &c, E. De Cable and Co.

Provincial Government Offices, Dunedin, 29th Deo. 1870. E. De Carle, Esq., Princes street. Sit— l &m dimtfft te *c]wowl<tfga s*

ceipt of your letter of the 23rd ins'ant, on the subject of the proposed Southern Trunk Railway, and to acquaint you in reply, for the information of your principals, that the Government adheres to the terms as set forth in the letter of the Secretary for Land and Works, of the 21st, and will be glad to receive an offer in accordance therewith for the construction of the railway. — I have, &c,

Alex. Willjs, Clerk to the Executive Council.

Dunedin, 30fch December, 1870. The Secretary for Land and Works. Sir — I am in receipt of yours of 29fch* inst., No. 10861-53. Owing to the approaching departure of the mail, and the New Year holidays, I shall be unable to have the matter sufficiently matured to arrive at a definite offer as to commission, &c. , before Wednesday next. I feel certain, however, that I shall then be able to meet your viewß with reference to the carrying out the Clutha Railway. — I have, &c, E. De Cable. Dunedin, 31st December, 1870. The Secretary for Land and Works. Sir — An advertisement appears in the Evening Star of last evening calling for tenders for a portion of the Clutha Bailway, and signed by W. N. Blair, engineer ; a P. S. to an address from Mr ! Macandrew, stating that official intimation has been received from the Colonial Government to proceed with the railway immediately, &c. , &c. We -would feel exceedingly obliged by your informing us as early as possible whether the statement of Mr Macandrew is warranted, and also if our negociations (now pending) will be in any way prejudiced. — We have, &c., j E. De Carle and Co. Land and Works Office, Dunedin, stk January, 1871. Gentlemen — I have the honour to acknowledge receipt of your letter of the 31st ultimo, enquiring whether the action of the General Government in calling for tenders for carrying on the Clutha Kailway will in any way prejudice your negociations with the Provincial Government for the same work, and in reply to inform you that the negociations are not prejudiced by the fact of tenders having been called for by the General Government. If Messrs De Carle and Co. will submit an offer within the powers of the Government, or in accordance with my letter No. 10861-51, of the 21st ultimo, it will be favourably considered. In the event, however, of the works being let by the General Government before Buch an offer is received, it would be inexpedient on the part of the Government to entertain any further proposals. — I have, &0., D. Reid, Secretary for Land and Works. Dunedin, January 6th, 1871. The Secretary for Land and Works, Dunedin. Sir — Referring to our various correspondence and interviews on the subject of constructing the Ciutha Railway, we now have the honour to advise you that, after consultation with our principals, we are prepared to submit the following offer :— 1. That guarantee be at the rate of 8 per cent, on the total cost of the work (not exceeding L 400,000). Such cost to include all expenses — forming the company, its management during construction, and after purchase of land, repairs, &c. ; and management to be counted as working expenses. 2. That the Government undertake to purchase the line at the end of 5 years, but it shall be optional with the promoters whether they sell to the Government at the end of 5, 6, 7, 8, 9, or 10 years. At the end of i 0 years, the Government must buy and the promoters must sell. If the promoters wish the Government to take the line at any time between 5 and 10 years, they must give the Government 12 months' notice. The price to be paid by Government to be cost, as provided in Ist condition. 3. That the promoters shall construct the line in such manner as they may thiuk proper, under certain general conditions to be agreed upon. All lands which are now, or which niay be hereafter, the property of the Crown or province, and through which the line may pass, to be conveyed to the promoters in fee simple, including stations, &c. 4. That the Government pay the promoters the sum of LI 5,000 by way of commission, independent of the cost as before stated. Should the above terms be approved of by the Government, we will at once undertake to have them carried out on the part of our principals. — We have, <fee, B. De Carle and Co. Donedin, 13th January, 1871. The Secretary for Land and Wprki. Bir^l tort rent » tele£T*m to fo%

addressed Tokomairiro, haying underB'ood you left here this morning for that township. 1 was under the impression, after the interview between you, Mr Gillies, and myself, yesterday afternoon, that a definite reply would have at once been sent to my letter of the 6th inst., agreeing with the offer made as to the construction of the Clutha Railway, subject to the modifications suggested, viz., as to transfer of the land and mode of construction.

I stated the result of the interview to my principals laßt evening, and requested them to meet this morning, but owing to your reply not having reached, was unable to proceed in the matter. I am very sorry any unnecessary delay should have occurred, and would feel exceedingly obliged by your earliest attention to the subject. — I have, &c. , E. Db Cable.

Tokomairiro, January 14th, 1871. E. De Carle and Co., Dunedin.

See Duncan. Mr Reid and I left our views in writing. We could not get hold of him night before last. Too late to telegraph list night. Will be in on Monday.

Gillies.

Dunedin, January 13th, 1871. Reid, Esq., Secretary Land and Workf,

Tokomairiro.

Referring consultation yesterday. Promise immediate reply, offer construction Clutha Railway. Astonished this morning. Willis no instructions. Understood offer accepted, subject modifications. Transfer land. Mode construction. Reply, delay decidedly unadvißable. Edward De Cable.

Dunedin, 17th Jan., 1871. The Secretary for Land and Works. Sir — Referring to the various correspondence and interviews that have taken place between the Government and ourselves on the construction of the Clutha Railway, we must express our surprise that we have received no reply to our letter of the 6th inst, although you were good enough to state to our Mr De Oarle that the Government consented to the proposals therein contained, with the exception of free grant of land and mode of construction, and promised that we should have a reply on the 14th inst. Our principals, who have acted from first to last in a business-like and bona fide way in the matter, feel that they have a right to a direct reply to close the matter, more particularly after the telegram we received from Tokenaairiro.— We have, &0. ,

E. Db Cable and Co.

Provincial Government Offices, Dunedin, 18th January, 1871. Messrs E. De Carle and Co., Dunedin.

Gentlemen— l have been directed to acknowledge the receipt of your letter of yesterday's date, and to apologise for the delay that has arisen in replying to your previous letter of the 6th instant. That delay has arisen from the peculiar circumstances of the case. You are aware that the General Government has apparently resolved to take np the work of constructing the railway, and were the Provincial Government satisfied that it would be bona fide proceeded with, then, of course, they would be bound to decline your offer — an offer which they have always looked upon as bona fide. After enquiry, however, into all the steps taken and proposed to be taken, the Provincial Government is not satisfied that the General Government are in a> position, or are likely to be in a position, to proceed with the work, and have therefore resolved to close with your offer generally, the details to be more specifically set forth in a deed of agreement to be prepared by the Provincial Solicitor, such deed to contain the various modifications agreed upon at the interviews which the Government have had with your representative, Mr De Carle, the principal of which were as follows, viz : — Ist. Line to be constructed according to the printed conditions, with the exception of the gauge, which, may ba altered to 3ft 6in.

2nd. That such Crown Lands as the Government have power to deal with be leased to the Company. 3rd. The Government reserves to itself the right of purchase in five years. 4th. That the proposed deposit of LIO,OOO be made at once. — I have, &c., Alex. Willis, Clerk to the Executive Council

Dunedin, January 19th, 1871. The Secretary for Land and Works. Sir— ln reply to letter No. 16861-67, of the 18th instant, we have laid the same before our principals, who instruct us to state that they are willing at once to enter into the arrangement, and request the Proviuoial Solicitor will submit the dralt of the proposed agreement fear the perusal 9! tht mwajwri of tht Company,

The LIO,OOO will be deposited on the draft agreement being agreed to and signed. The commission matter mentioned in our letter of the 6th instant was not alluded to in your reply, but we take It for granted it is agreed to. — We have, &c, E. De Cable and Co.

Provincial Government Offices, Dunedin, January 19th, 1871. Messrs E. De Carle and Co., Dunedin.

Gentlemen — In reply to your letter of this date on the subject of the Southern Trunk Railway, I am now instructed to say that the Provincial Solicitor will be instructed to prepare the deed of agreement, but that to enable him to do so, it will now be necessary for you to disclose the names of your principals, in order that they may be embodied in the deed.

I am to add that you are correct in supposing the commission referred to in your letter of the 6th inst. was agreed to. — I have, &C.

AiEX. Willis, Clerk to the Executive Council.

Dunedin, January 21, 1871. The Secretary for Land and Works. Sir — In reply to your letter of tbe 19th lnst., we beg to refer you to ours of Bth December last, in which we declined to give the names of our principals until an agreement had been definitely arranged for the construction of the Clutha Railway. To this the Government consented, since when negotiations have been carried on leading up to the agreement referred to, which when completed will take the place of all that has preceded it. You only do us ordinary justice in saying that you have always considered our negotiations as bonafide, and we freely accord to the Government a desire to act with the same good faith towards us ; but, at the same time, and without wishing to imply that the fault lay with the Government, our principals are aware that former negotiations have not been brought to a sue* cessful termination ; besides which, you admit in yours of 18th insfc. that there are peculiar circumstances connected with tho present negotiation ; therefore, we think that we cannot be fairly asked to give the names of our principals at this stage, but, we can assure the Government this much, that we are both ready and willing to complete the matter, and that the moment the agreement is settled on the basis of negotiation to this point we will give the names of our principals and pay the deposit of LlO,OO0 — this latter condition will prove our good faith, and is not expected until the agreement is ready for signature. We do not see that the names of our principals are at all necessary to enable the Provincial Solicitor to prepare the deed of agreement, as they can easily be left blank until the deed is finally settled. As we are anxious that there Bhould be no delay, please instruct the Provincial Solicitor in the matter, and we will ab once place ourselves in communication with that gentleman and press it on as faat as possible. —We have, &c, E. De Carle and Co. Provincial Government Offices, Dunedin, 25th January, 1871. Messrs. E. De Carle and Co., Dunedin. Gentlemen — I am directed to acknowledge the receipt of your letter of the 21st inst. , in reply to my mine of the 19 th, on the subject of the construction of the Southern Trunk Railway, and to acquaint you that the Government declines to inbtruct the Provincial Solicitor to proceed with the preparation of the deed of agreement until it ib in possession of the names of the gentlemen for whom you are acting. — I have, &c, Alex. Willis, Clerk to the Executive Council. Dunedin, January 25feh, 1871. Secretary for Land and Works. Sir—We beg to acknowledge receipt of letter No. 10861-71, of this day's date. Our Mr De Carle stated the result of his interview with Mr Gillies in his j official capacity yesterday to our princi« ! pala, who replied they would immediately have a draft agreement drawn for the purpose of submission to the Government, and wish to know whether it will fee received without the names of the individuals forming the Company being given, and if (satisfactory, will the Government eloße for the undertaking ?—I have, &c.j E. Db Cable and Co. Provincial Government Offices, Dunedin, 30th January, 1871. Meßttß E. De Carle and Co. , I Dunedin. Gentlemen— l have been directed to acknowledge the receipt of your letter of the 25th inst. in reply to mine of the name date, and to acquaint you that the Government declines to submit any draft deed of agreement that may be submitted to them for the construction of the Southern Trunk Railway to the Free Tinciil Solicitor, nnlem the named of

your principals are included therein. — I have, &c., Alex. Willis, Clerk to the Executive Council.

Dunedin, February Ist, 1871. The Secretary for Lands and Works. Sir— ln reply to letter No. 10161-76 we have to state that, owing to the departure of the mails, we have not been able to have sufficient communication with our principals, but will be prepared either to morrow or the next day to lay the matter fully before you. — We have, &c. E. De Cable and Co.

Dunedin, Feb. 2nd, 1871. To the Secretary for Lands and Works. Sir — In accordance with ours of yesterday's date, we have now the honour to hand you the names of the gentlemen forming the Company, and they desire ub to request you will have tho kindness to at once instruct the Provincial Solicitor fco have the draft deed prepared in accordance with the proposed agreement, with as little delay as possible. — We have, &o. E. De Cable and Co. Mr M'Neill, of the firm of Messrs Briscoe

and Co. Mr W. H. Reynolds. Mr C. Stewart, of the firm of Driver, Stewart, and Co. Mr W. Branton, O.E. Mr H. Driver, of the firm of Messrs Bri-

ver, Stewart, and Co. Mr A. R. Ure. Mr J. Mitchell, of the firm of Messrß Fergusson and Mitchell. E. Db Caele and Co., Agents.

Provincial Government Offices, Dunedin, 3rd Feb. 1871. Messrs De Carle and Co., Gentlemen— l have been directed to acknowledge receipt of your letter of the 2nd instant, giving the names of the gentlemen for whom you have been acting in the matter of the Southern Trunk Railway, and to acquaint you that the Provincial Solicitor has been instructed to prepare the deed of agreement, for the perusal of the solicitor to the proposed company. — I have, &c, Alex. Willis, Clerk to the Executive Council.

Dunedin, February Bth, 1871. To the Provincial Solicitor.

Sir— We had a letter of the 3rd insi, from the Government, stating you had been instructed to prepare a draft deed of agreement for submission to the Company for the Southern Trunk Railway. Our principals are desirous to have the same for their perusal with as little delay as possible. We therefore beg to request that you will favour us with the said draft at your very earliest convenience. — We are, E. De Casle and Co., agents.

Referred to Provincial Secretary. — B. C.

Haggitt. —February Bth, 1871. February 9th, 1871. It is not desirable, on the very eve of a possible change in the Government, that the matter should be hurriedly rußhed through. A delay of a week or two cannot be of such importance as it would have been were Meaßrs De Carle and Co. agents lor Melbourne people as he at first repeatedly intimated to the Government. So many members of the Government are absent, I do not feel justified in rushing the matter through with undue haste. JohnL. Gillies, for Provincial Secretary. Forwarded for the iuformation of Messrs B. De Carle and Co. B. C. Haggitt, P.S., February 9 th, 1871.

Dunedin, 11th February, 1871. The Secretary for Land and Works. Sir — On the 2nd inst. we wrote to you giving you the names of the gentlemen proposed to form the Company for the construction of the Southern Trunk Railway ; and on the 3rd mat. we received a letter from the Clerk to the Executive Council acknowledging the receipt of ours above referred to, and acquainting us that the Provincial Solicitor had been instructed to prepare the deed of agreement for the perusal of the solicitor to the Company. Wishing to avoid delay, we addressed the Provincial Solicitor on the Bth inst., asking him to furnish us with a draft of the agreement. Much to our surprise, on the following day he returned our letter, with a memo, to the effect that it is not desirable, on the very eve of a possible change in the Government, that the matter should be hurriedly rushed through.' We are much surprised — and in which the gentlemen interested quite concur — that the Government Bhould at this stage of the negociations have discovered that the matter has been pushed through with undue haste, seeing that the Government has from first to last pressed upon us the neceßsity'of completing the agreement before the time arrived for acceptance of tender by the General Government. By » pmruiwl of the corre»pQad«no.a jbe-

tween us, it will be seen that we have been urged on by the Government, and no delay on our part has taken place. The memo, of the Provincial Secretary seems to us now to indicate a different policy, and the gentlemen named wish us to state that unless the Government are prepared at once to sign, or before Tuesday next to furnish a draft agreement, they will he very reluctantly compelled to withdraw from the undertaking. — We have, &0. , E. De Cable and Co., Agents to the Company.

Provincial Secretary's Office, Dunedin, 11th February, 1871. Messrs E. De Carle and Co. , Dunedin.

Gentlemen — I have the honour fco acknowledge the receipt of your letter of this date on the subject of the negociations that have taken place relative to the construction of the Southern Trunk Railway, in which you state that your principals take exception to my memo, of the 9th instant, endorsed on your letter addressed to the Provincial Solicitor.

In reply, I have to observe that in * matter of such importance it would be unfair to the Provincial Solicitor, as well as to the absent members of the Government, to hurry it through with such undue haste as is proposed, and you will of course understand that I have no desire to make use of the proposal in any way or for any other purpose than simply to meet the earnest desire of the Government to have the railway constructed on a fair and equitable basis. — I have, &c, John L. Gillies, For the Provincial Secretary.

Dunedin, February 11th, 1871. To the Secretary for Land and Works.

Sir — With reference to a remark in the memo, from the Provincial Secretary to the Provincial Solicitor about our acting for Melbourne people, we beg to state we have always informed the Government the money would come frem Melbourne, and had it not been that the Railway Act required a Company of not less than seven to be formed under the Joint Stock Companies Act; we should have been able to give you the names of the Victorian capitalists who have been from the commencement of the negotiation, and are still, ready with the money for the construction of the Southern Trunk Rail-way.-—We have, &c,

E. De Cable and Co.

Provincial Government Offices, Dunedin, February 14th, 1870. Messrs E. De Carle and Co., Dunedin. Gentlemen — I have been directed to acknowledge the receipt of your letter of the date quoted in the margin (Uth February, 1871), on the Bubjqct of your relations with "Melbourne people" as connected with the proposed Company for the construction of the Southern Trunk Railway. — I have, &c., Alex. Willis, Clerk to the Executive Council.

Dunedin, February 16th, 1871. The Secretary for Land and Works. Sir — Owing to the draft deed of agreement not having been submitted for the perusal of the Company formed for the construction of the So\ithern Trunk Railway, as desired by the Company on Tuesday last, they have come to the decision to abandon the undertaking, and our instructions to hand over the whole of the correspondence to the Daily Times (by them) has been done. — I have, &c,, E. De Cable and Co.