SETTLEMENT OF THE PATENT SLIP DISPUTE.

Wellington Independent, Volume XXII, Issue 2658, 7 April 1868, Page 2 (Supplement)

SETTLEMENT OF THE PATENT SLIP DISPUTE.

[Independent, March 26.2 The disputes between the Provincial Govetnment and Kennard Brothers are now at an end. After having been constantly before the public for more than two years, the matters at issue between the parties relating to the Queen's Wharf extension, the Patent Slip, and the Wanganui Bridge contract?, have all been amicably settled, and while the Patent Slip is to be erected within twelve months, the construction of the Wanganui Bridge is to be commenced without further delay. The terms on which the Wharf dispute was settled are already known to the public, while we will now state generally how the other two matters have been arranged. In 1865 a contract was entered into between Messrs Kennard Brothers and the Provincial Government, in terms of which the former were to erect a Patent Slip capable of lifting a vessel of 2000 tons, which they were to possess and work, the latter guaranteeing them an interest of seven per cent, on their outlay of £37,000. Everybody is familiar with the history of the dispute which afterwards arose on the question of the nature of the site and foundations, so we will not enter upon that question now. It is sufficient to say that Messrs Kennard made large claims for additional payments on the allegation that the nature of the site had been misrepresented, and that the Provincial Government wisely refused to ratify the contract, subject to the conditions demanded. For months, therefore, matters remained in statu quo ; but the settlement of the Wharf dispute has happily led to an amicable adjustment of the other matters at issue. Several gentlemen resident in Wellington recently made the Government an offer to erect a Slip within twelve months similar to that contracted for on condition that they received a guarantee of seven per cent, on £40,000, being £3000 more than tlie sum on which a guarantee had previously been asked. They further stipulate that they are to receive the sum of £2000 in cash when the Slip is finished, and an additional sum of £1500 twelve months after its completion. These conditions have been accepted by the Government. Messrs Kennard Brothers, on their part, have agreed to sell, and the gentlemen referred to have agreed to buy, the whole plant of the Patent Slip now in the Province, for a sum closely approaching £20,000. The Messrs Kennard Brothers having thus found purchasers for the material and being relieved from their contract to erect the Slip ; on their part release the Provincial Government absolutely from all liability whatsoever in respect to any claim they may have made, either as to the Patent Slip or the Wanganui Bridge. It must be remembered that Kennard Brothers demanded a large sumascompensation and damages for alleged misrepresentation about the foundations of the Slip, and this arrangement amounts to a complete renunciation of all claims whatsoever on their part against the Government. With respect to the Wanganui Bridge, the material has all arrived in the colony, so that the Provincial Government can now proceed with its erection. Hitherto Kennard Brothers, who had the contract for its erection, have declined to give it up, and asserted that they had a claim for damages, though on what grounds such a claim was founded we have never yet been able to understand. It is needless, however, to enquire into that matter now, because everything is settled. We have got the material and paid for it; the Wanganui Bridge debentures have all been taken up, and it now only remains to erect the Bridge itself. We heartily congratulate the Province on the amicable settlement which has been arrived at witb-reference to those important public works. The terms in the case of the Patent Slip are practically little more than those which might have been fairly claimed by Kennard Brothers. It is true' that the Province has to pay an interest on a slightly larger sum than £37,000, and that a small bonus has to be given besides ; but on the other band there are no claims to be met for constructing artificial foundations, and all fclie delay and cost of protracted legal proceedings is avoided. But besides this, it must be borne in mind that a very serious present and prospective loss, was inflicted upon the Province, through the want of a proper Slip suitable for the repair of the Panama, Inter-colonial and Inter-provincial steamers. It has hitherto been a constant and just subject of complaint on the part of the Panama Company that no provision was made for the repair of their steamers at this port. Moreover, Wellington is already the chief centre of steam navigation in New Zealand and when the present temporary commercial depression has passed, away,

the rapid progress of the colony will enormously increase its means of communication, and by consequence, necessitate in the geographical centre, the supply of docks and slips* Unless, therefore, Wellington is to lag behind, the necessity of constructing a Patent Slip in its harbor becomes imperative, and we look upon the assurance, that through the enterprise of some of our fellow citizens Buch an important work will be completed within twelve months, as being a cause for congratulation to the Province at large. __ s — =====: -=-