PAPERS RELATING TO THE CONSTRUCTION OF RAILWAYS.

Appendix to the Journals of the House of Representatives, 1871 Session I, D-06

D.—No. 6.

PAPERS RELATING TO THE CONSTRUCTION OF RAILWAYS.

1.-CORRESPONDENCE AS TO OFFERS RECEIVED FROM ENGLISH AND OTHER CAPITALISTS FOR SURVEY AND CONSTRUCTION.

PRESENTED TO BOTH HOUSES OP THE GENERAL. ASSEMBLY, BT COMMAND OP HIS EXCELLENCY.

WELLINGTON.

1871.

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SCHEDULE OF CORRESPONDENCE.

I.—OFFEES FOR THE SURVEY AND CONSTRUCTION OF RAILWAYS IN NEW ZEALAND, BY SIR CHARLES FOX AND SONS, MR. BROGDEN, M.P., AND MR. BRUNLEES, LONDON.

Wo. Date. From. To. Subject. 1 1870. Sept. 16 Hon. F. D. Bell and I. E. Featherston Hon. F. D. Bell and I. E. Featherston Hon. Colonial Secretary Forwarding letter from Sir Charles Fox and Sons, relative to narrow gauge railways. Enclosing an offer from Sir Charles Fox and Sons for survey and construction of proposed railways in New Zealand. Forwarding proposition from Mr. Brogden, M.P., seeking to bo put into the position of making surveys. Mr. Brunlees will co-operate with Sir C. Fox and Sons. Further correspondence with Mr Brogden. He will send out Mr. Henderson as his representative in January. 2 Oct. 7 Hon. Colonial Secretary Nov. 22 Mr. Morrison Hon. Colonial Secretary Dec. 30 Mr. Morrison Hon. Colonial Secretary 5 G 1871. Jan. 27 Feb. 23 Mr. Morrison Mr. Morrison non. Colonial Secretary Hon. Colonial Secretary Mr. Henderson is ill; cannot leave until February. Mr. Henderson will leavo by March mail via San Francisco. Mr. Broaden has determined to await Hon. Mr. Vogel's arrival before sending out Mr. Henderson. 7 Mar. 17 Mr. Morrison Hon. Colonial Secretary II.—OFFER BY CAPTAIN AITDLEY COOTE, TASMANIA. Aug. 27 Captain A. Coote Hon. J. Vogel If Government will entertain a proposition, during next Session, on the principle of guaranteed interest, for the immediate construction of New Zealand railways, lie is prepared, on behalf of a company of English capitalists, to construct them. In the absence of details, Government are unable to form any definite conclusion relative to his general offer. In the event of his visiting New Zealand, he will no doubt be able to gather sufficient information to determine him as to whether or not he should make such proposal. He must bear his own Oct. 25 Mr. Cooper ... Captain A. Coote Captain A. Coote Mr. Cooper ... expenses. Is instructed by the proprietors of the Tasmanian Main Line Railway Company, registered in London, to make the offer herein detailed. On the faith of his last letter, Government will suspend intention to communicate with London capitalists for one month, hoping that he will be able meanwhile to visit New Zealand. 0 Dec. 5 Dec. 30 lion. Colonial Secretary Captain A. Coote 1871. Jan. 14 Captain A. Coote Hon. Colonial Secretary Is making every preparation to come on to Wellington, but it will be middle of February, or later, before he can arrive. Has arrived in Wellington. Submitting his credentials. Government have perused documents submitted to them, but do not perceive that he is authorized to bind his principals, or at once construct the railways authorized by the Legislature. Will forward any definite proposal to Hon. Mr. Vogel, in London, if he wishes it, so that his principals may be communicated with. Submitting for the approval of Government, terms for immediate construction of railways, and stating that his powers enable him to sign a provisional contract only. Ho is prepared to proceed to England, and there negotiate the railway business, and form a company, to be called " The Grand Trunk Railway Company of New Zealand." Forwards estimate of capital required. Desirable that any further negotiations should be remitted to England. Will leave Wellington to-morrow. His local solicitors will inform Government should any telegrams be received in Wellington addressed to him. Address of London principals for Hon. Mr. Vogel and Dr. Featherston to communicate with. Forwarding copy of correspondence between Government and Captain Coote. Acknowledging receipt of correspondence. Has seen some of Captain Coote's friends, and is to have an interview with others. Meanwhile, cannot discover that he has any other power than that of making provisional arrangements. Mr. Wylie, the Engineer-in-Chief, has arrived in Tasmania, and a Btaff of engineers will follow in six mouths. If desired, one or two of those gentlemen can be sent to New Zealand to report on the lines. Arrangements are being made which preclude the Government entertaining proposals. B .4 Feb. 14 Feb. 16 Captain A. Coote Hon. Colonial Secretary Hon. Colonial Secretary Captain A. Coote Feb. 18 Captain A. Coote Hoe. Colonial Secretary Hon. W. Pox Captain A. Coote 16 Feb. 20 17 Feb. 21 Captain A. Coote Hon. W. Fox 18 Feb. 22 Captain A. Coote Hon. W. Fox 10 Feb. 25 Hon. Colonial Secretary Hon. J. Vogel 20 May 19 Hon. J. Vogel Hon. Colonial Secretary 21 June 24 Captain A. Coote Hon. Colonial Secretary July 21 Mr. Knowles Captain A. Coote 22

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SCHEDULE OP CORRESPONDENCE— continued.

III.—BY A VICTORIAN ASSOCIATION, MELBOURNE. -*fo. Date. From. To. Subject. 1871 April 17 Hon. Colonial Secretary Agent-General Forwarding proposals made by Mr. Dyer, on behalf of an Australian Association, for the construction of railways in New Zealand, on a system perfected by Mr. Fell, and requesting report on the working of a somewhat similar railway in North Lancashire. 23 IV.—BY m: :S8RS. ROBINSON D JANSEN, ENGLAND 1871 24 May 9 Hon. Colonial Secretary Agent-General Enclosing letter from Messrs. Robinson and Jansen, relative to a somewhat similar system to that referred in No. 23.

D.—No. G,

PAPERS RELATING TO THE CONSTRUCTION OF RAILWAYS.

I.—BT SIR CHARLES FOX AND SONS, MR. BROGDEN, M.P., AND MR. BRUNLEES, LONDON. No. 1. The Hons. F. D. Bell and I. E. Featheeston to the Hon. W. Gisbobne. Sib, — London, 16th September, IS7O. We have the honor to enclose copy of a letter from Sir Charles Fox and Sons relative to narrow-gauge railways. As we require the enclosures to that letter for the present, and duplicates cannot be obtained in time for this mail, and perhaps may not be procurable at all, we reserve for another day our own observations on the subject, on which occasion we shall also write to you respecting the Festiniog line. We may briefly, in tho meanwhile, say this, that although of course our own views on such a subject lack the authority which attaches to the opinion of persons skilled in engineering, we may venture to express the confident assurance that the system of narrow gauge is most eminently suited to the circumstances and conditions of a country like New Zealand. And further, that in view of the large expenditure which the New Zealand Government will now have to undertake in public works and railways, it is of the greatest importance that the Government should obtain the services of some engineer of high standing in England for the purpose of drawing up such a general report on tho narrow-gauge system as may convey that kind of precise and detailed information, and that scientific comparison of the merits of the various experiments in cheap railway works now being carried on in several countries, which can alone be put in a thoroughly intelligible form for the guidance and decision of your Government. To do this would not merely require a cursory examination of documents and suggestions, but a careful professional inspection of what has actually been done in England, in Norway, in Russia, in Germany, and in Canada. We have not felt ourselves warranted in incurring without instructions an expense so considerable as this proposal would involve ; but we are certain that in the long run it would be the most economical thing to do ; and if the Government should decide upon doing it, we need hardly say that there would be no difficulty in their obtaining the highest professional skill for the purpose. We have, &c, F. D. Bell, "j I. E. Featheeston >• Commissioners. The Hon. W. Gisborne. (by F. D Bell), )

Enclosure in No. 1. Sir Chaeles Fox and Sons to the Hon. F. D. Bell and Hon. I. E. Featheeston. Gentlemen, — Spring Gardens, S.W., 12th September, 1870. Referring to our interview with Dr. Featherston on Saturday last, we have now the pleasure to hand you the following documents relating to the subject of railways : — 1. Carnatic Railway of India. —(l.) Contract with Indian Government. (2.) Prospectus. (3.) Consulting Engineer's report. (4.) Report of Sir C. Fox on gauge. This railway is a light railway of 5 feet 6 inches gauge. The Government guarantee 5 per cent, on the capital under conditions which are considered satisfactory to investors, and also give the Government full control. This form of contract is one of the best ever devised. 2. Cape Bailway Company. —(1.) Contract with the Colonial Government. (2.) Prospectus. (3.) Report of first General Meeting. These papers are sent as affording an example of an unsatisfactory guarantee. The contract does not give the Government sufficient control, nor does the guarantee extend to the total expenditure on the railwav, lian Railways. —(1.) Prospectus of Toronto, Grey, and Bruce Railway Company. (2.. 'i us of Toronto and Nipissing Railway Company. (3.) Pamphlet on same subject. v - ) . ..in of Directors. The railways are 3 feet 6 inches gauge, thoroughly well construed under our supervision, by capital raised entirely in Canada: one-third by bonus or free gift from municipalities; one-third by shares; and one-third by debentures. The total cost will not exceed £3,000 per mile, including everything. The passenger carriages on this line are 8 feet 6 inches wide. 4. Report on Norwegian Railways. 5. Memorandum and Drawings showing details of four light railways. 6. A Sample Joint of Permanent Way (forwarded to care of Mr. Morrison).* 7. Regulation of Railways Act, containing light-railway clauses for the United Kingdom, inserted chiefly through the exertions of our senior partner. * Tin's car h» seen at the r'e lonial Museum.

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PAPERS RELATING TO THE

We shall hope to have the pleasure of a further interview with you on your return, and after persual of these documents ; and we shall then be happy to submit for your consideration proposals for, in the first instance, making surveys, and thereupon giving an offer for the construction of the railways of New Zealand upon terms which we have little doubt would meet with the favourable consideration of the Government. If you will kindly give us a few days' notice of the date of your probable return, we will have these proposals ready for your consideration. We have, &c, The Hon. the Commissioners for New Zealand. Chaeles Fox and Sons. (Enclosures not printed.)

No. 2. The Hons. I. E. Featheeston and F. D. Bell to the Hon. W. Gisbobne. Sie, — London, 7th October, 1870. We have the honor to enclose a letter which we have only just] received from Messrs. Sir Charles Fox and Sons, containing an offer to the New Zealand Government for the surveys and construction of the proposed railways in New Zealand. We have, <&c, I. E. Featheeston,") n . . The Hon. W. Gisborne, Ac. F D. Bell, { Commissioners.

Enclosure in No. 2. Sir Chaeles Fox and Sons to the Hon. Dr. Featheeston. Sie, — Spring Gardens, S.W., London, 7th October. We have now the pleasure of forwarding to you our formal offer to the New Zealand Government for the surveys and construction of the proposed railways. We need hardly say, that should the Government decide to place the work in our hands, we shall have great pleasure in acting for them, and wc should do all in our power to make the New Zealand railways a credit not only to our professional reputation, but also to the Government itself. We should do all in our power to economize, so far as is consistent with the usual substantial character of the railways we construct; and with reference to our own remuneration, we would say, that beyond what wo have named in our offer for engineering services, we should not receive through other channels any further emolument, but all brokerages, allowances, discounts and royalties, would be at once placed to the credit of the Government. With reference to the probable cost of the railways, wo are of course unable to give an accurate estimate, as it much depends on the amount of earthwork to be executed ; but we could estimate within a few pounds the actual cost of the material required from this country. The question of earthworks will entirely rest upon the engineer who is charged with the making of the surveys; judging, however, from past experience, we think that our estimate of 19th May will not be exceeded, unless the country is considerably broken. The question of gauge would require careful consideration, but, whichever be adopted, we should strongly recommend the " light system." While upon this point, we think it may be interesting to your Government if we enclose photographs of locomotives which have just been built for us. One (the larger photograph) is for the Carnatic Railway Company of India, where the gauge is 5 feet 0, tho engine being specially adapted to a hot climate. The smaller photograph (a duplicate of the one already sent) is for the Canadian railways of 3 feet 6 gauge, adapted to a cold climate. All these railways are upon the light system, thus proving that the principle is not dependent on gauge. In reply to your inquiry, we are of opinion, after consulting with our friends in the City, that upon the Government guaranteeing interest at the rate of 6 per cent, upon the necessary capital, a company could be formed of some of the leading men in London, who would carry out the construction of the railways, subject to the approval of Government. And we also think that this probably might be done on the Indian plan, where one of the directors is the representative of the Government, and possesses tho power of placing a veto upon all acts of the Board. Any further information we can furnish, we shall have much pleasure in affording. In the event of our being desired to despatch our partner as engineer to New Zealand, a payment on account should be made beforehand, to defray expenses and provide the necessary instruments, &c. We are, &c, The Hon. Dr. Featherston, Charing Cross Hotel. Chaeles Fox and Sons.

Sub-Enclosure to Enclosure in No. 2. Messrs. Chaeles Fox and Sons to the Hon. I. E. Featheeston and the Hon. F. D. Bell. Gentlemen, — Spring Gardens, S.W., London, 7th October, 1870. Referring to our former communication of the 12th ultimo, on the subject of railway construction, we have now the honor of giving you, as requested, our views as to the terms upon which we should be prepared to act for the Government, both as regards the surveys and the construction of the lines. We would make our suggestions under the heads of " Surveys " and " Construction."

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Surveys. With reference to these, we would propose one of two courses to be adopted, either —Ist. That one of our partners should visit the Colony for a short time, to advise with the Government upon all points, and to organize the surveys, taking with him one of our chief Assistant Engineers, who would be answerble to us for the correctness of the surveys; thus enabling us to report to the Government accurately as to the total cost of the railways. For this we should charge, for our partner's time, £100 per month absent from England, and all expenses ; and for the Assistant Engineer, £70 per month and all expenses. Or, 2nd. That we should send out a confidential Engineer to represent us, and also to complete the surveys on our behalf. In this case, we should charge for our agent's time £100 per month and all expenses. These charges to include our detailed report and estimates. We would suggest that the Government should provide and pay for the necessary assistants, instruments, horses &c, upon a monthly requisition to be made by our Engineer, and approved by Government, —the staff during the survey being under the absolute control of our Engineer. We need hardly say that our best efforts would be directed to completing the surveys as rapidly and as economically as was consistent with success. Whilst we should be quite ready to agree upon a fixed sum per mile for the surveys and estimates, we believe that the plan proposed will be found less costly and more satisfactory to the Government. If however the Government should think otherwise, our partner, on his arrival in the Colony, would be in a better position to arrive at a fair mileage rate than could bo done here. Construction. In the event of the Government committing to our trust the construction of the railways, we should bo prepared to act as the Engineers of the Government, taking entire charge of the construction of the railways, providing and paying the resident staff, and carrying out all the duties of the London agency, including inspection of materials and engagement of freight and insurance, — 1. If the works are let by contract in the usual way, for a commission of 5 per cent, on the cost of the railway : or, if the Government prefer it, for a fixed mileage rate of £250 per mile, provided in tfiat case that the mileage be not less than fifty miles. 2. If the works are carried out departmentally, which is far more economical (in which case the Engineering staff have to perform the duties of contractor's agents), for a commission of 6 per cent, upon the cost of the railway ; or, if the Government prefer it, for a fixed mileage rate of £300 per mile, provided in either case that the mileage be not less than fifty miles. These rates would represent the total cost to the Government of the engineering and agency. Agency. Although we believe the interest of the Government would be better served by the engineership and agency being combined, we should be willing to act as the Consulting Engineers and Agents of the Government in England, to advise generally, prepare designs for materials to be sent out, let contracts by competition, inspect during manufacture, superintend marking, packing, shipment and insurance, and certify for payment, for a commission of 3 per cent, upon the cost of the materials shipped, including freight and insurance; or, if the Government prefer it, for a fixed mileage rate of £60 per mile, to include all expenses of the London Agency, provided the length be not less than fifty miles ; or, should the Government desire the goods to pass through the hands of their present Agent here, we should have much pleasure in acting in conjunction with that gentleman. The instalments in which the payments should be made, and other matters of detail, to be settled hereafter. Should the Government think fit to appoint us as their Consulting Engineers to construct the railway, we should include our professional charges in connection with the survey in our engineering charge—our expenses out of pocket only for the same being then paid by the Government. Having thus mentioned the arrangements which we think would fairly meet the case, we would remark, in conclusion, that we are prepared to give our best consideration to any modification thereof which the Government may think it right to suggest, and We have, &c, The Hon. the Commissioners for New Zealand, Chaeles Fox and Sons. London.

No. 3. Mr. Mobeison to the Hon. W. Gisbobne. Office of the New Zealand Government Agency, Sie, — 3, Adelaide Place, King William Street, London, 22ud November, 1870. I have the honor to transmit herewith a proposition from Mr. Brogden, M.P., seeking to be put into the position of making the surveys for the proposed railways in New Zealand, with the view to furnish the Government with the information as to the sums at which he will be prepared to construct them, or the conditions necessary to establish them as railways held by an independent company. Regarding it important that without delay the matter should be brought under the notice of the Government, I beg to enclose copy of the telegram I forwarded to the Hon. Dr. Featherston at Suez, in order that he might do this immediately on his arrival. I also enclose copy of my letter to Mr. Brogden in reply to his of the 10th instant, requesting more definite information ; and the attention of the Government is invited to his answer of the 20th, enclosing letter from Mr. Brunlees, dated the 18th instant. I am led to expect a communication to the effect that whether Mr. Brogden's proposition be entertained or no, Mr. Brunlees has arranged with Messrs. Sir Charles Fox and Sons (who have already submitted proposals) to co-operate with them on the terms they have submitted to the

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Government, to which Mr. Brogucn refers in his lotter oi' tho jOth instant; but up to the hour of writing, it has not reached me. I hope to forward it by the despatch of this mail, leaving on the 24th instant. Mr. Brunlees is so well known as the Engineer of the Mont Cenis Railway and other important railway undertakings, that it is superfluous on my part to refer to his standing. It therefore only remains for me to enclose the proposals of Mr. Brogden, and to express a hope that, whether or no the Government see fit to enter into negotiations with him, the Government will at any rate secure for the Colony the united services of Mr. Brunlees and the Messrs. Fox. The Commissioners being well acquainted with the standing and influence of Mr. Brogden, it is unnecessary for me to say anything thereupon. I have, &c, The Hon. the Colonial Secretary, Wellington. John Mobeison. P.S.—Since writing the above, the expected communication has been received, and copy is herewith enclosed. It confirms Mr. Brogden's statement on the 20th instant, as to the co-operation of Mr. Brunlees and the Messrs. Fox.

Enclosure 1 in No. 3. Mr. Beogden, M.P., to Mr. Mobeison. Sib, — 4, Queen Square, Westminster, 10th November, 1870. As you are aware, the war on the Continent so alarmed myself and my friends, that, although at that moment the negotiations for the arrangements for the inquiry into, and, if approved, the construction of the Nelson and Cobden Railway were on the point of completion, yet, under the circumstances, we did not feel that the time was suitable for entering into any new engagements. I perceive now that the Government in New Zealand are proposing to have the railways constructed under guarantees to a certain amount per mile of railway by them. lam not fully informed as to the question whether the railways so constructed are to be the property of the Government, or whether these sums are a contribution pro tanto towards their construction ; but the object of my present communication to you is to request you to inform the New Zealand Government that, having gone already fully into the question of the railway communications about to be established iu the Colony, I should be glad to be put into the position of making the surveys for the lines they determine to have constructed, and upon those surveys to furnish to the Government the information as to the sums at which I will be prepared to construct them, or the conditions necessary to establish them as railways held by an independent company, aided more or less by the amount which the Government are willing to guarantee. If this arrangement is agreeable to the Government, I will instruct Mr. Brunlees, C.E., to send out an efficient staff for this purpose. I remain, &c, J. Morrison, Esq., London. Alex. Beogden.

Enclosure 2 in No. 3. Mr. Mobeison to Mr. Beogden, M.P. Sib,— London, 12th November, 1870. In order that the proposal made by you in your letter to myself on the 10th instant should reach by the earliest means the Commissioners, now on their return to the Colony, and through them the Government of New Zealand, I beg to state that I telegraphed an abstract of your letter to Dr. Featherston, that it may be received by him before leaving Suez. It is also my intention to transmit a copy of it to the Government by the mail via San Francisco on the 16th instant. I regret being unable to give you detailed particulars of the proposed railway scheme; the subject was under discussion in the Assembly when the last mail left New Zealand. But whenever they reach me, I will with much pleasure lay them before you. I am obliged to observe, after maturely considering your letter, that I doubt if the Government will be able to deal with your proposal, unless it is more definite. To have to apply to you for additional information would be fatal to it, as the Government will doubtless be desirous of deciding forthwith, and bringing the service into immediate operation. I therefore invite you to be good enough to consider whether you cannot submit the proposal in such a form that the Government may at once see to what expenses it may be committed by intrusting you with the surveys. In the absence of information regarding the advantages the Government is prepared to offer, I am aware you cannot set forth the terms on which you Will be prepared to construct the lines or form ;iu influential company to do so, inasmuch as such proposal must be regulated by the terms and i ofrlitions which the Government may be in a position to offer; but as I confine my remarks only to the surveys, this may not be difficult to you, and if before the 15th instant you cau favour me with jour views, I will bring them under the notice of the Government I am, &c, Alex. Brogden, Esq., M.P. John Mohkison.

Enclosure 3 in No. 3. Mr. Bbooden, M.P., to Mr. Mobeison. Sib, — Coyhahene, near Bridgend, 20th November, 1870. I enclose you herewith a letter I have received from Mr. Brunlees embodying his proposals respecting the New Zealand railways. Taking this letter and my previous communication, ami reading th«~ia together, you will h_av the proposal I make to the New Zealand Government. If io arra 4»

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ment is made with them for the construction, I shall not have any claim upon the Government for the work done by Mr. Brunlees beyond that contained in his letter. I believe that Mr. Brunlees and Mr. Fox have arrived at an understanding, and that Mr. Brunlees has made his offer in conjunction with Mr. Fox. If therefore there is anything in which the terms offered by Mr. Fox are more favourable, you can accept them as my proposal. I have, &c, J. Morrison, Esq., London. Alex. Beogden.

Sub-Enclosure 1 to Enclosure 3 in No. 3. Mr. Beunlees to Mr. Beogden, M.P. Sie, — 5, Victoria Street, Westminster, 18th November, 1870. I am willing to undertahe the necessary surveys for a system of railways in New Zealand on the following terms : — I will send out to represent me an engineer competent in every respect to advise with the Government authorities as to the system which may be best adapted to the commercial wants of the country and to its physical conformation, —the Government, immediately on the arrival of my representative, to enter upon the consideration of these questions, and to determine, without loss of time, the direction of the lines of railway. The survey of such lines to be at once commenced and carried on at the rate of not less than 200 miles a year, and the completed plans, sections, and reports to be deposited with the Government on or before the expiration of such time from the date of the commencement of the survey. In consideration of this, the Government to pay to me the sum of £65 per mile, such payments to be made on the completion of each fifty miles of survey. It is understood that this price shall include all trial surveys, &c, requisite to determine the best route for one line between the same places ; but should the Government desire the plans and sections of alternative routes between the same places, they shall be paid for separately. In case of the surveys being stopped by the Government, from any cause, the expenses of my staff shall be paid by the Government during such stoppage; and in case the surveys shall not be resumed, their salaries for six months, and the cost of their passage home, shall be defrayed by the Government. Should the Government cause any delay beyond one month after the arrival of my representative in the country before the direction of any line is determined upon, the salaries and expenses of the Btaff shall be paid until such decision is arrived at. It is understood that the total number of miles to be surveyed, at the rate of £65 per mile, shall be not fewer than 250, and that tho Government provides for their prosecution at a not less rate than 200 miles per annum. I shall also be willing, at the proper time, to engage to perform the engineering necessary for their construction, including all expenses, at 5 per cent, on the cost of the works. I have, &c, Alex. Brogden, Esq., M.P. James Beunlees.

Sub-Enclosure 2 to Enclosure 3 in No. 3. Mr. Beunlees to Mr. Fox. Sie, — 5, Victoria Street, Westminster, 18th November, 1870. In reference to the conversation we had the other day with regard to the surveying of lines in New Zealand, I am quite willing .to join Mr. Chas. Douglas Fox (your brother) and yourself in any surveys the Government of that country may intrust to either of us, on equal terms —that is, you take one-half the responsibility and I take the other half. I have, &c, Francis Fox, Esq. James Beunlees. I hereby accept the above for myself and brother, Mr. Charles Douglas Fox. Feancis Fox, 6, Delahay Street.

No. 4 Mr. Mobeison to the Hon. W. Gisbobne. Office of the New Zealand Government Agency, Sie,— 3, Adelaide Place, King William Street, London, 30th December, 1870. Referring to my letter No. 783, of 22nd November, 1870, transmitting copy of correspondence which passed between Mr. Brogden, M.P., and myself relative to the proposal made by him with regard to the surveys for the proposed railways in New Zealand, I have the honor, in continuation thereof, to enclose herewith copies of further letters received from Mr. Brogden. From these letters you will perceive that Mr. Brogden has resolved upon sending out a gentleman to represent him to the Government, and for this purpose has selected Mr. Henderson, who is expected to be ready to proceed to the Colony by the mail of next month. I beg to point out to the Government that Mr. Brogden undertakes this step entirely at his own risk and responsibility, being doubtless influenced by his proposals of the 10th ultimo having met with the approval of the Hon. F. Dillon Bell. I likewise enclose copy of a telegram I addressed to Mr. Bell, at Galle, on the 23rd instant, acquainting him with Mr. Brogden's resolution. I have, &c, The Hon. the Colonial Secretary, Wellington. John Mobeison. 2

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Enclosure 1 in No. 4. Mr. Beogden, M.P., to Mr. Mobeison. Sie, — 4, Queen Square, Westminster. I have to thank you for your letter and the accompanying extract. I will try to send vou to-morrow something of a definite character, to forward by telegraph to Mr. Bell. I have, <&c. J. Morrison, Esq. Alex. Beogden.

Enclosure 2 in No. 4. Mr. Beogden, M.P., to Mr. Mobeison. Sie, — 4, Queen Square, Bth December, 1870. I had expected to have sent you this day the name of the person whom I propose to send out to New Zealand to represent me there. I have been endeavouring to find him all day, and have called at his office for that purpose, but have not been successful. If I hear anything in the morning, I will telegraph you before 12 o'clock. I have, &c, J. Morrison, Esq. Alex. Beogden.

Enclosure 3 in No. 4. Mr. Beogden, M.P., to Mr. Mobeison. Sie, — Ulverstone, 22nd December, 1870. I have selected a gentleman to go out and represent us to the New Zealand Government. It is Mr. Henderson, who has been a long time with us and Mr. Brunlees, and is a Civil Engineer of great experience, and has also carried out very considerable works on his own account. At the present moment he is engaged in making a railway in Germany. His family is over there, and he required a month, at least, to enable him to adjust his affairs ; and I think it will take him fully that time before he can go. About the middle of January I hope he will be prepared to go to New Zealand. I have &c, John Morrison, Esq. Alex. Beodgen.

Enclosure 4 in No. 4. Mr. Mobeison to the Hon. F. D. Bell, Point de Galle. (Telegram.) London, 23rd December, 1870. Me. Beogden has selected representative, to proceed to Colony. He cannot leave before January.

No. 5. Mr. Mobeison to the Hon. W. Gisbobne. Sib, — Office of the New Zealand Government Agency, 3, Adelaide Place, King William Street, London, 27th January, 1871. I have the honor to transmit herewith copy of a letter which I have just received from Mr. Brogden, M.P., stating that Mr. Henderson, who was expected to proceed to the Colony by this mail as Mr. Brogden's representative, as advised in my letter No. 815, of the 30th ultimo, is unable to do so through illness. I have, &c, The Hon. the Colonial Secretary, Wellington, N.Z. John Mobeison.

Enclosure in No. 5. Mr. Beogden, M.P., to Mr. Mobeison. Sie, — 4, Queen Square Westminster, 27th January, 1871. Mr Henderson, the gentleman I had selected to go out to New Zealand, returned from Germany ten days since, but has ever since been confined to his house by a severe attack of illness. I have seen him to-day ; he is better, and if sufficiently well, as these is little doubt he will be, he will be prepared to leave by the next mail, if it is at the end of the month. I have, &c, John Morrison, Esq., London. Alex. Beogden.

No. 6. Mr. Moebison to the Hon. W. Gisbobne. Office of the New Zealand Government Agency, Sie, — 3, Adelaide Place, King William Street, London, 23rd February. 1871. Referring to my letter No. 43, of 27th January, 1871, I have the honor to transmit herewith copy of a letter received this day from Mr. Brogden, M.P., by which it will be seen that his representative, Mr. Henderson, will proceed to New Zealand by the mail of next month via New York and San* Francisco. I have, &c, The Hon. the Colonial Secretary, Wellington. John Mobeison.

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Enclosure in No. 6. Mr. Beogden, M.P., to Mr. Moeeison. Sie, — 4, Queen Square, Westminster, 23rd February, 1871. T regret to say that Mr. Henderson was compelled to go ever to Germany to close some of his old engagements, but promises me distinctly that he will go by next mail, and will go by New York so as to save time. 1 have, &c, J. Morrison, Esq., London, E.C. Alex. Beogden.

No. 7. Mr. Moeeison to the Hon. W. Gisbobne. Office of the New Zealand Government Agency, Sie, — 3, Adelaide Place, King William Street, London, 17th March, 1871. Referring to my letter No. 76, of the 23rd ultimo, I have the honor to transmit herewith copy of correspondence which has passed between Mr. Brogden, M.P., and myself, relative to the departure of his representative, Mr. Henderson, for New Zealand. I have, <fec, The Hon. the Colonial Secretary, Wellington, N.Z. John Mobeison.

Enclosure 1 in No. 7. Mr. Mobeison to Mr. Beogden, M.P. Sie,— 3, Adelaide Place, London, E.C, 10th March, 1871. Although no official instructions have been received from the Government yet I have reason to believe that the Colonial Treasurer, who is in America adjusting the arrangements of the postal service to New Zealand via San Francisco, will be soon in England. His visit may have reference to finance and to the general scheme of public works, but as already said, I have no information on the subject; therefore, all I can do is to bring it under your notice, so that you may consider under the circumstances what is best to be done with reference to Mr. Henderson's departure. You shall have immediate notice of Mr. Vogel's arrival: I will also use my best endeavours to get him to meet you. I have, &c, Alex. Brogden, Esq., M.P. John Mobeison.

Enclosure 2 in No. 7. Mr. Beogden, M.P., to Mr. Mobeison, M.P. Sib, — House of Commons, 10th March, 1871. Thanks for your letter. I should like to see Mr. Vogel before Mr. Henderson goes out, if possible. I see that there has been a change in the departure of the boats from San Francisco, which makes it doubtful if Mr. Henderson goes on the 25th instant, and he cannot be prepared to go out on tho 18th instant. I have, &c, J. Morrison, Esq., London. , Alex. Beogden.

Enclosure 3 in No. 67. Mr. Beogden, M.P., to Mr. Mobeison. Sib, — 4, Queen Square, Westminster, S.W., 16th March, 1871. Mr. Henderson has just arrived from the Continent. Will you please let me know if Mr. Vogel has returned, and if so, when we can see him. I go out of town to-day and shall not return till Monday, but I will arrange my time so as to suit his convenience. I have, &c, J. Morrison, Esq., London. Alex. Beogden.

lI.—BY CAPTAIN AUDLEV COOTE, TASMANIA. No. 8. Captain Audlet Coote to the Hon. J. Vogel. Sie,— Hobart Town, Tasmania, 27th August, 1870. I have the honor to address you with reference to a paragraph in the Australasian newspaper, in which it states that a loan was about to be granted for the construction of railways in New Zealand. I have now the honor to submit the following proposal to the Government, with a view to facilitate the immediate construction of railways in IS'ew Zealand.

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If the Government will entertain a proposition during next Session on the principle of a guaranteed rate of interest, sufficient to produce in the London market the sum necessary for the purpose, I am prepared as the Financial Agent in Australia of English capitalists, also of a company (which is duly registered in London) wit'l a capital of a million sterling, to undertake to raise the necessary capital, and construct and open for traffic (at our own cost) any railways in New Zealand. I may be permitted to state, that I possess exceptional advantages for acting in this matter as I am the accredited agent of gentlemen residing in England who possess large means, and who are at present engaged in the construction of railways and telegraphs, and other public works, in and out of England. I may also add, my credentials are satisfactory to the Tasmanian Government, with whom I am now negotiating to construct the main trunk line through this island. I should be happy, should business result, to furnish you with the names of our directors, solicitors, and parliamentary agents, or any other information in my power in connection with railways. I may also be allowed to state, that a division of profits over a certain amount, to be hereafter agreed upon between the Government and the capitalists, can be arranged for. Also that arrangements for taking land can be made and that preliminary agreements can be made, that works shall commence or material shipped within six months from the time of the concession arriving in London. If the Executive will consider this at an early date, I shall feel obliged; a letter addressed to the care of my solicitors, Measre. Giblin and Dobson, Hobart Town, will at once receive attention. I have, &c, The Hon. the Colonial Treasurer, Wellington. Attdlet Coote.

No. 9. Mr. Coopee to Captain Audley. Coote. Sie,— Public Works Office, Wellington, 25th October, 1870. I have the honor, by the direction of Mr. Gisborne, to acknowledge the receipt of your letter of the 27th of August last, submitting, on behalf of an English company and others whom you represent, a proposal for the construction of railways in New Zealand.' The Government are unable, in the absence of details, to form any definite conclusion relative to the general offer which you make ; but in the event of your being able to make any specific proposal, they will be glad to take it into their careful consideration. In the event of your vi iting New Zealand, you will no doubt be able to gather such information as will enable you to determine whether or not you should make such proposal. It must however be distinctly understood thai; the Government are not in a position to ask you to visit this Colony for this purpose, or to undertake any responsibility for your doing so, and that the question of your incurring the necessary cost and responsibility is a matter altogether for the decision of yourself, or of those whom you represent. I am to express regret that the pressure of public business during and since the recent Session has caused this delay in replying to your letter. I have, &c, G. S. Coopee, Audley Coote, Esq., Hobart Town, Tasmania. Under Secretary.

No. 10. Captain Audley Coote to Mr. Coopee. 169, Premier Terrace, William Street, Sie, — Sydney, sth December, 1870. I have the honor to acknowledge the receipt of your reply to my letter of the 27th August last, wherein you state you have been directed by Mr. Gisborne to inform me the Government are unable, in the absence of details, to form any definite conclusion relative to the general offer, but, in the event of my being able to make a specific proposal, the Government will be glad to take it into their careful consideration. Permit me now to inform you I have been instructed by the projectors of the Tasmanian Main Line Railway Company, which Company is duly registered in London, to submit, for the approval of the Government, the following terms for the construction of the New Zealand railways:— lH^r v> lam prepared to undertake, on behalf of the above Company, to construct, maintain, and open for public traffic, " at our own cost," any railways in New Zealand, upon the Government guaranteeing to the Company the payment of interest, at the rate of 5\ per cent, per annum on the capital as it is raised and expended in the Colony, for a period of thirty-five years from the opening of the lines for traffic. The Company will bind themselves to divide with the Government the nett profit realized beyond 7 per cent, on the amount of capital expended. As I am at present not aware of any Act having passed the Legislature of New Zealand on the guarantee principle, will yoti inform me if such an Act does exist; if so, will you be kind enough to send one for my perusal ? If such an Act has not become law in New Zealand, will you inform me if it is the intention of the Government to adopt the principle during next Session, and about what time Parliament will meet again. I may be permitted to «;ate I have the influence of capitalists in England, whose powers I hold, consisting of gentlemen whose mercantile and social position will afford to the Government confidence in their ability to carry out that which they undertake. I may add, the Tasmanian Main Line Railway Bill has passed both Houses of the Legislature, and the concession has been duly signed on behalf of my principals.

CONSTRUCTION OE RAILWAYS.

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I may also be allowed to add, should these negotiations lead to business, that I possess exceptional advantages for acting in this business, as the same ships bringing out the railway plant and men for the Tasmanian railways could bring the same for New Zealand. Our Consulting Engineer is on his way from England on board the mail steamer. He is a gentleman on whom the greatest reliance can be placed, from his great experience in railway matters* In the event of this Company obtaining the concession, it will be requisite for the Government to appoint an experienced engineer, as payment to the contractors for the Company will be made as the works progress, under the joint certificate of the two engineers, as the desire of the Company will be to carry out the undertaking on a scale and in a manner that will insure a preference in any further public works. There is one point to which I wish respectfully to call your attention, and that is the advantage the Colony would derive from the addition to the population of a large number of men and their families sent out to make the railways, who will become settlers, and thus promote the sale of Government land, and add to the revenue by increased payment of taxes. The railways, in fact, will be a great auxiliary to the Immigration scheme ; and it may be confidently expected, on the completion of the railways, a large sum would be earned, and that, in a very short period, there would be no charge whatever on the expenditure of the Colony " for interest," but, on the contrary, an actual profit will be realized to the credit of the Government. If the Government will make a provisional agreement with me, I will come to New Zealand before next Session and make all preliminary arrangements, and, if required, will furnish the Government with the draft of a bill that will be acceptable to the financiers in London. You will be kind enough to address all letters for me to Sydney, for six weeks after that time, to the care of my solicitors, Messrs. Giblin and Dobson, Hobart Town, Tasmania, where all letters and telegrams will receive immediate attention. I shall be glad if the Executive will consider this proposal at an early date, and, if required, I shall be happy to supply any further information in my power. I have, &c, G. S. Cooper, Esq., Under Secretary, Wellington. Audley Coote.

No. 11. The Hon. W. Gisbobne to Captain Audley Coote. (Telegram.) Wellington, 30th December, 1870. In reply to your letter of sth December to the Under Secretary, I have to inform you that an Act is alreadv passed authorizing construction of several important lines of railway by Colonial Government. Guarantee of 5-J per cent, for thirty-five years. Others are also to be proposed next Session, and, judging by your letter, the Government should be able to make immediate arrangements with you. It was intended to communicate direct with capitalists at home, but on faith of your letter to Mr. Cooper, and relying that you will think it worth your while to come down to New Zealand immediately, the Government suspend for one month communicating with home, hoping that in the mean while, and by earliest opportunity, you will come on to Wellington, New Zealand. Copy of the Railway Act is forwarded to you by mail, but do not wait for it if you have an opportunity first to come here by Melbourne. Captain Audley Coote, Sydney. W. Gisbobne. (To be forwarded wherever Captain Coote is.)

No. 12. Captain Audley Coote to the Hon. W. Gisbobne. Sie, — 169, Premier Terrace, William Street, Sydney, 14th January, 1871. I have the honor to acknowledge the receipt of your telegram, dated Wellington, 30th December, which reached Sydney on the 9th instant, in which you inform me an Act had passed both Houses of the Legislature for the construction of several important lines of railway, upon the principle of a guaranteed rate of interest, and that your Government suspend for one month communicating with capitalists in England, and desiring me to come to New Zealand with as little delay as possible. I have now to inform you I am making every preparation to come on to Wellington as soon as possible, and only await the arrival of my English telegrams and despatches by the next incoming mail, which is expected to reach Sydney on the 22nd instant. I shall not be able to reach Wellington until about 15th February, and it may be later in the month before I can arrive. However, I may be allowed to inform you no time will be lost in not sending the Eailway Acts on to London for a few months, as it is quite impossible to bring out any undertaking in the ordinary way, but the excitement caused by the war is somewhat passing off. And no capitalists in England would take it up without first seeing the country; and it would have to be confirmed by people who came out to inspect. It took two years after the South Australian Parliament had passed its last Bill before my friends came out, they having passed two Bills respectively in 1862 and 1864, but when sent to London were of no use, through such restrictive clauses being inserted in the Act, and the payment of the interest during construction not properly provided for. Unless these points are unimpeachable, great delay and much inconvenience may occur. I trust I shall find nothing obstructive in the Act passed by the .New Zealand Parliament, as a very small thing may put the whole machinery out of order in London. 3

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I may add, the plans and sections of the proposed Dunedin and Clutha Railway are on the way to England. Should business result, no time would be lost by our engineers making out the quantities by the time the concession could arrive in London. I have, &c, The Hon. W. Gisborne, Wellington. Audley Coote. P.S. —I have written this letter in a hurry to go on by the Auckland steamer. I have just received a reply to my telegram, from Melbourne, informing me that a steamer leaves that place for New Zealand, on the 30th instant, and again on the 6th February. I shall certainly come on by one of those steamers. In great haste. —A.C.

No. 13. Captain Audlev Coote to the Hon. Mr. Gisbobne. Sie, — Wellington, 14th February, 1871. Beferring to our conversation of yesterday, I have now the honor to enclose for your perusal my credentials, <&c. The other gentlemen with whom I am associated for the purpose of constructing railways, and providing capital for other public works on the guarantee principle, I beg leave to refer you to the margin, whose names are, — Captain Mangles, late M.P., Poyle Park, Farnham. Erasmus Ommaney, Bear-Admiral, of Talbot Square, Hyde Park. Henry E. Kennedy, of the City of London. William Hawes, of Sise Lane, City. George Coote, of Smeetham Hall, Suffolk. Francis W. Fox, C.E., of Bristol. Henry J. Wylie, C.E., Westminster Chambers. Messrs. F. Darton and Co., City. Edwin Fox, of Upper Norwood. Messrs. Wilson, Bristowe, and Carpmael, are our Parliamentary Agents, &c, and other gentlemen who are well known in the commercial and railway world, who are an associated body of gentlemen prepared to raise the capital and construct the railways, and who are at the present time engaged in the construction of railways and telegraphs in England and other parts of the world. I may be permitted to state, the last company formed by these gentlemen was for Tasmania, which is known and registered in London as the Tasmanian Main Line Railway Company, with a capital of one million pounds sterling, and will be prepared to do the same for New Zealand, the capital to be hereafter agreed upon. I enclose for your perusal copies of letters from London to me on the railway business ; also copy of my last letter from the Tasmanian Government, in which we are authorized to raise the capital and construct the railway. I also send Articles of Association of the Tasmanian Company. I have, &c, Hon. W. Gisborne, Wellington. Audley Coote.

No. 14. The Hon. W. Gisbobne to Captain Audley Coote. Sir,— Colonial Secretary's Office, Wellington, 16th February, 1871. I have tho honor to acknowledge the receipt of your letter of the 14th instant, transmitting certain papers in original, which I return herewith, showing your authority to negotiate for providing capital on the guarantee principle, for the construction of railways in New Zealand. The Government have carefully perused those documents, but they do not perceive that you are authorized in any contract which they might be disposed to enter into with you to bind those whom you represent, or at once to give effect to it by the immediate commencement of the railways, the construction of which has beei: authorized by the Legislature. I have to request you to be good enough to favour the Government with any definite proposal which vou wish to be considered; and they will, if you desire it, transmit such proposal to Mr. Vogel, the Colonial Treasurer, in London, in order that he may communicate with your principals on the subject. I have, &c, Audley Coote, Esq., Wellington. W. Gisbobne.

No. 15. Captain Audley Coote to the Hon. W. Gisbobne. Sib,— Wellington, 18th February, 1871. I have the honor to acknowledge the receipt of your letter of the 16th instant, in which you state the Government have carefully perused the papers I sent you, and they do not perceive that I am authorized to enter into a binding contract for the gentlemen with whom I am associated, and that I should favour the Government with a definite proposal. I have now, on behalf of my principals, to submit for the approval of the Government the following terms for the immediate construction of the railways.

CONSTRUCTION OP RAILWAYS.

D.—No. 6.

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The capitalists will undertake, on the completion of the present surveys, to construct, maintain, and open for public traffic, "at their own cost," the railways authorized in the First Schedule of the Act, upon the Government guaranteeing the payment of interest at the rate of 5| per centum per annum, for a period of thirty-five years from the opening of the lines for traffic. The Government to guarantee the plans to be free from essential error. I may be permitted to state, that no person will ever be authorized to bind the capitalists by signing a final contract in New Zealand without first having full plans and sections, &c, and not even then until the quantities have been marked out by an engineer the financiers have confidence in. My powers are to sign a provisional contract only. In working out the quantities of the Tasmanian Railway in London our Consulting Engineer saved in one cutting £57,000, or half a million cubic yards. I may also stale the haphazard way of making railways all exploded in the crisis of 1865-66. If the Government will enter into an agreement with me, the capitalists will be prepared to give security to the Government for the prompt prosecution of the works, by paying a sum of money to be hereafter named to the credit of the Government, within a time to be named after the concession arrives in London, or by finding unexceptional bondsmen to any amount. I may be allowed to insert part of a letter received by the last mail: — " We are ready to undertake the other railways, but we don't like a 5 per cent, guarantee only for a limited term ; you must try for a permanent guarantee over 5 per cent., and it must be liberal and correct in every way, and no chance of any hitch with the Government or others in carrying it out; there will then be no difficulty with us for raising the capital required. Nothing however can be done in England without full plans and details, and Government statistics, and actual Act of Parliament or concession, and terms of contract, without you come on to England again with full particulars, as in the Tasmanian. Anything less than the above would be so much waste paper." I may be permitted to add, the Government are not in such a forward position with their surveys as your telegram allowed me to believe. However there is quite sufficient done for me to carry out what I have now the honor to propose. If the Government will enter into an agreement with me in the same way as the Tasmanian Government did last year, T am willing to proceed direct to England, and there negotiate the railway business, and make arrangements for the lines that are already authorized for in the Act to be gone on with as soon as possible. That a provisional agreement be made between the Government and myself, and that this be taken to England for ratification by my principals. That when there I form a Company for the purpose of constructing the proposed lines, which shall be duly registered in London, and known as "The Grand Trunk Railway Company of New Zealand," or any other name the Government may wish, with a capital of £2,000,01)0 or £2,500,000 ; the business of the Company to be done through the Bank of New Zealand at this end, and by a Bank to be approved of by the Government in London. That I return direct to New Zealand with these arrangements completed. That the Government will be in a position to meet Parliament with a definite proposal for the whole of the proposed lines, in the same way as the Government of Tasmania arranged last Session. That arrangements be made for the lines to be gone on with at the same time in the different Provinces. I may state this would not in any way interfere with the mission of Mr. Vogel or of the AgentCleneral now about to leave for England. I may be allowed to add, I am confident no business can result, with whatever power Mr. Vogel may have to negotiate with, or any definite proposal be received from capitalists, without I proceed to London, as the proposed railways are many hundred miles apart, in short pieces, and no idea at present what the cost will be. As the financiers in London are not likely to require any clauses to be inserted in any agreement or provisional contract having reference to any matters others than the payment of the guarantees, if we were to confer on the different questions to be provided for, much time would be saved. I shall therefore be glad to meet the Government and the law officers of the Crown as soon as possible. Referring to the Act of the Legislature to provide for immigration, construction of railways, and public works, and to the 7th clause of the Act, in which it states such acts aud proceeding to be taken as the Governor may think necessary to construct the railways; also to the Act authorizing the raising of money for immigration and public works, and to the second clause of that Act, in which it states the Government may appoint any two or more agents, <fcc, — I also beg to enclose the number of miles of railway proposed by the Acts, also about the sum that will be required for such works; but I have seen nothing prepared to show it will be sufficient for such an undertaking. I shall be glad if the Executive will consider this proposal at an early date, and appoint an hour for an interview, to confer on the different questions to be provided for, and, if required, I shall be happy to supply any further information in my power. I have, &c, The Hon. W. Gisborne, Wellington. Audley Coote. Enclosure in No. 15. Proposed Baihcays in North Inland. £ s. d. Wellington, Napier, aud New Plymouth Line —Distance about 360 miles, at £5,000 per mile... ... ... ... ... ... ... 1,800,000 0 0 Auckland to Waikato Line—Distance 39V miles, at 4,000 per mile ... ... 158,000 0 0 Distance in miles, 399i £1,958,000 0 0

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Proposed Railways in Middle Island. £ s. d. Dunedin to Clutha—Distance 52 miles, at £5,000 per mile ... ... ... 260,000 0 0 Picton to Blenheim—Distance 19 miles, at £4,000 per mile ... ... ... 70,000 0 0 Invercarpll Line—Distance 40 miles, at £5,000 per mile ... ... ... 200,000 0 0 Oamaru Line—Distance 40 miles, at £5,000 per mile ... ... ... 200,000 0 0 £736,000 0 0 Distance in miles, 151. Money to be provided for, £2,691,000. Length of railways, 550?.- miles.

No. 16. The Hon. W. Fox to Captain Atjdi/ey Coote. Sir, — Government Offices, Wellington, 20th February, 1871. Referring to the several interviews with you on the subject of the creation of a company for the construction of the railways contemplated by this Government, I have the honor to state that, as the Colonial Treasurer is at present on his way to London, and will be followed almost immediately by the Agent-General of the Colony, Dr. Featherston, and your principals are there also, it seems most advisable that any further negotiations on the subject should be remitted to England. The Hon. Mr. Vogel will be communicated with by the first mail, requesting him to put himself into communication with the gentlemen whom you represent, and the Agent-General will receive instructions to the same effect. Their London address will be "John Morrison, Esq., "3, Adelaide Place, C.E., London." Thanking you for the readiness with which you acceded to the request of the Government to come to New Zealand, and for the information they have received from you, I have, &c, "William Fox.

No. 17. Captain Audley Coote to the Hon. W. Fox. Sib, — Wellington, 21st February, 1871. I have the honor to acknowledge receipt of your letter of yesterday's date, enclosing the address of the Agent-General in London, and informing me that further negotiations on the subject of railways, &c, should be remitted to London. I have now to inform you I leave Wellington for Tasmania on the 22nd instant, by the s.s. " Gothenburg." I have instructed my solicitors, Messrs. Hart and Buckley, that upon receipt of any telegrams from England for me, on the railway business, they are to inform you at once of the contents of such telegrams, and then transmit the same to me in Tasmania. My business with the Tasmanian Government will keep me in that colony about two months ; after that time I shall proceed to Sydney to await the arrival of our contractors and men. My Tasmanian address is, to the care of Messrs. Giblin and Dobson, Solicitors, Hobart Town; and for Sydney, 169, Premier Terrace, William Street, where a letter or telegram will receive immediate attention. I have, &c, Hon. W. Fox, Wellington. Audley Coote.

No. 18. From Captain Audley Coote to the Hon. W. Fox. Sib,— Wellington, 22nd February, 1871. I have tie honor to enclose the address of the gentlemen Mr. Vogel and the Agent-General will see in London. Messrs. Wilson, Bristowe, and Carpmael, 1, Copthall Buildings,.E.C, London. Mr. William Hawes will be heard of there also. Mr. George Coote, of Smeetham Hall, Sudbury, Suffolk; also at Copthall Buildings, E.C. I have, &c., The Hon. W. Fox, Wellington. Audley Coote.

No. 19. The Hon. Mr. Fox to the Hon. Mr. Vogel and Dr. Featheeston. Sie, — Colonial Secretary's Office, Wellington, 25th February, 1871. I have the honor to enclose the copy of a correspondence that has taken place between this Government and Captain Audley Coote, in which the latter gentleman offers to undertake, on behalf of the Tasmanian Main Line Railway Company, to construct railways in New Zealand on theguarantee principle.

CONSTRUCTION OF RAILWAYS.

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You will see by Mr. Gisborne's letter of the 16th instant that the Government are not satisfied from the documents submitted to them by Captain Coote that he is authorized, in any contract which they might be disposed to enter into with him, to bind those whom he represents, or at once to give effect to it by the immediate commencement of the railways, the construction of which has been authorized by the Legislature. They have therefore invited him to submit any definite proposal which he wishes to be considered, that it may be sent to you in order that you may communicate with his principals on the subject. Captain Coote in his letter of the 18th instant submits a proposal, and in that of the 22nd he gives the names and addresses of gentlemen in England, to whom he refers the Government. I should feel much obliged if you would call upon the gentlemen named by Captain Coote and ascertain from them whether and to what extent he is authorized to act in their behalf; and if you would make such inquiries as to the stability of his referees, and the general appearance of bond fides in the matter as may be necessary to enable the Government to determine to what extent they will be justified in coming to terms with Captain Coote. I have, <£c, W. Fox The Hon. J. Vogel, London. (in the absence of Mr. Gisborne). [A copy of the above, with enclosures, was sent to Dr. Featherston.]

No. 20. The Hon. Mr. Vogel to the Hon. Mr. Gisbobne. Sib, — Charing Cross Hotel, London, 19th May, 1871. I have the honor to acknowledge the receipt of your letter of the 25th February, 1871, with copies of correspondence attached, on the subject of negotiations with Captain Audley Coote. I have to inform you, in reply, that I have seen some of the friends referred to by Captain Coote, and that I am to have an interview with others of those gentlemen. In the meanwhile, I am unable to discover that Captain Coote has any power in the matter of railway construction, beyond that of making provisional arrangements, which may or may not be sanctioned by his friends here. I have, &c, The Hon. the Colonial Secretary, Wellington. Julius Vogel.

No. 21. Captain Audley Coote to the Hon. W. Gisbobne. Sie, — Hobart Town, Tasmania, 24th June, 1871. Permit me to inform you our Engineer-in-Chief, Mr. H. J. Wylie, has arrived from England. Mr. Wylie will remain in the Colony about two months, during which time he has to determine upon the route the railway will take ; and upon his report being satisfactory to the directors of the Company that the line can be constructed for the sum allowed, our ships with the men and plant will be despatched immediately, everything being ready in London, and the contract signed with one contracting company. Our bankers in this undertaking are Sir Jno. Lubbock. It is expected we shall send two thousand men to Tasmania for this work, and many of these men will be married and have families. Will you be kind enough to furnish me with the plans, sections, and any tracing of all the proposed railways ? With these documents in our possession for Mr. Wylie's perusal, we can forward the railways very much, as Mr. Wylie will have the quantities worked out, and his report will be taken as correct by the capitalists and contractors. Will you please have forwarded to me two copies of each Act, as a point has already been raised in London on the wording of the Acts, and I have no copy to refer to, having sent all I had to the directors, and it is just possible we may have to ask you to amend it. Will you also be kind enough to inform me if your Mr. Blackett has provided for rolling stock, permanent way, &c., &c, " as well as construction," in the sums mentioned in the Act " per mile," as the sums named appear very low to our Engineer ? Not having seen any plans or tracings, he is not able to give any opinion at present. We shall have a staff of Engineers coming to Tasmania in about six months. If your Government should wish it, I will arrange to send one or two of these gentlemen to New Zealand to look over and report upon the lines. By doing this, I may be allowed to say, many months' negotiations would be saved, and a contract could be entered into at once. I shall be glad if the Executive will consider this at an early date, as our Engineer will be leaving for England by the August mail. Will you be kind enough to address all letters to meat Tasmania for six weeks from this date, and after that to my address in Sydney. I have, &c, W. Gisborne, Esq., Colonial Secretary, Wellington, N.Z. Audley Coote.

No. 22. Mr. Knowles to Captain Audley Coote. Sie,— Public Works Office, Wellington, 21st July, 1871. I am directed by Mr. Gisborne to acknowledge the receipt of your letter of the 24th June, relative to railways in New Zealand, and to thank you for the information therein contained. I am, however, at the same time to state that the Government are making arrangements which preclude their 4. ".

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entertaining the proposals you have made dn the subject of the construction of the New Zealand railways, and that it will be unnecessary, therefore, to trouble you with the documents to which you refer. I have, &c, Johx Knowles, Captain Audley Coote, Hobart Town. Under Secretary.

lII.—BY A VICTORIAN ASSOCIATION, MELBOURNE. No. 23. The Hon. W. Gisbobne to the Hon. Dr. Featheeston. Sib,— Colonial Secretary's Office, Wellington, 17th April, 1871. I have the honor to forward a copy of a letter addressed to this Department from an association in Melbourne, containing proposals relative to a system of cheap railways, and of the reply which has been returned. A railway upon a somewhat similar construction has recently been opened for traffic from the Park House Hematite Ore Mines to the Furness Railway, in North Lancashire, and I have to request you will be good enough to ascertain and report the results of its working. I have, &c. The Hon. Dr. Featherston, Agent-General, W. Gisbobne. 3, Adelaide Place, London.

Enclosure 1 in No. 23. Mr. Dyee to the Hon. W. Gisbobne. Sie, — Hall of Commerce, Melbourne, 28th February, 1871. I have the houor most respectfully to submit to you the proposal of an association lately formed in this city for the purpose of constructing railways on a more economical principle than has hitherto been achieved in the Australian Colonies; and I beg leave to request for the same your favourable consideration. W. A. Zeal, Esq., C.E., formerly Constructing Engineer of the Melbourne and Murray River Railway, from Melbourne to Sandhurst, and D. Macquarie, Esq., railway contractor, Wingen, N.S.W., will act as the responsible agents of the Association. The Association, after the most minute examination and careful consideration, are of opinion that amongst the various systems of cheap railways proposed from time to time, none will be found to answer the requirements of the traffic in the interior of Australia so efficiently and so satisfactorily as the system lately perfected by J. B. Fell, Esq., the celebrated Engineer of the Mont Cenis Railway, and in accordance with which system two important lines, one in North Lancashire, England, and the other in Switzerland, were taken into construction as soon as the great advantages of the principle were discerned in those localities. The chief deviation of this principle from the ordinary system consists iii the elevation of the permanent way from three to four feet above the surface of the ground, supported by piles of timber firmly fixed, and of adequate strength. The permanent way itself is formed by a continuous beam of timber placed upon the piles, and of a size sufficient to carry two lines of rails eighteen inches apart on the surface, and one line of guide rails on each side of its two sides, twelve inches below the upper surface, distances which not only correspond with but also yield the full carrying power and safety of a gauge of 3 feet 6 inches on ordinary railways. Accidents will be rendered almost impossible with trains carrying 100 tons, exclusive of the weight of engines and carriages, and a speed of twenty miles per hour will be obtained with ease. The Association is desirous of entering into negotiations with your Government for the construction of such railways, upon terms to be agreed upon; these terms may consist of either payments in cash, a contribution of land, or a guarantee of certain interest on the part of your Government. As a proof of the bond fide character of their proposal, the Association hereby offer to construct at their own expense, risk, and responsibility, in auy locality they may be directed to, a section of railway three or four miles in length, in order that the superior qualifications and capacities of their system may be fully tested before its adoption ; and they engage not to prefer any claim whatsoever for payment for such construction in case their system is found ineffective, or wanting in other respects. But, on the other hand, should their system be adopted by your Government for the construction of longer lines, they reasonably expect to be intrusted with the construction of such lines as contractors. The Association is prepared to guarantee that the average cost of a first-class line after their system, including rails but excluding rolling stock, shall not exceed the sum of £2,500 per mile ; and further, they are willing to give such other security as may be demanded from them for the due fulfilment of any contract they may enter into. They are prepared to lay before you, as early as you may command, their plans and estimates, confident that, after your inspection of the same, their system will meet with approval at your hands. The Association most respectfully awaits the honor of your favourable reply. They will with pleasure impart any further information or explanation that may be deemed desirable; and in case their offer should be entertained, they will without delay either despatch an agent to Wellington, or appoint a resident there to act for them in that capacity. I have, &c, Joseph Dyeb, The Hon. the Minister of Public Works, Wellington. Acting Secretary.

CONSTRUCTION OE RAILWAYS.

19

D.—No. 6.

Enclosure 2 in No. 23. Mr. Knowles to Mr. Dyee. Sib,— Public Works Office, Wellington, 17th April, 1871. I am directed by the Hon. Mr. Gisborne to acknowledge the receipt of your letter of the 28th February, containing proposals for constructing railways on a principle perfected by Mr. Fell, the Engineer of the Mont Cenis Line; and, while thanking you for the information which your letter contains, I am, in reply, to inform you that the Government of New Zealand are not in a position to accept the proposals referred to. I have, &c, Joseph Dyer, Esq., Acting Secretary, John Knowles, Hall of Commerce, Melbourne. Under Secretary.

IV.—BY MESSRS. ROBINSON AND JANSEN, ENGLAND. No. 24. The Hon. W. Gisboene to the Hon. Dr. Featheeston. Sie, — Colonial Secretary's Office, Wellington, 9th May, 1871. Enclosed is a copy of a letter from Messrs. Robinson and Jansen, of Darlington, in reference to the system of narrow-gauge railway to which I referred in my letter of the 17th ultimo, and of the reply which has been returned by the Hon. the Minister of Public Works, from which you will learn that those gentlemen have been instructed to put themselves in communication with you. I have, &c., I. E. Featherston, Esq., M.D., Agent-General. W. Gisboene.

Enclosure 1 in No. 24. Messrs. Robinson and Jansen to the Hon. W. Gisboene. Sie, — Darlington, 23rd February, 1871. We take the liberty of forwarding you per this mail a pamphlet descriptive of a new system of railway brought out by Mr. Fell, of Mont Cenis celebrity, and for which we have secured the agency for Australia and New Zealand. We have, &c, The Hon. the Minister for Public Works, Robinson and Jansen. New Zealand.

Enclosure 2 in No. 24. Mr. Knowles to Messrs. Robinson and Jansen. Gentlemen, — Public Works Office, Wellington, 15th May, 1871. I do myself the honor, by direction of the Minister for Public Works, to acknowledge the receipt of your letter of the 23rd February last, enclosing a pamphlet descriptive of a narrow-gauge railway system invented by Mr. Fell, of Mont Cenis celebrity, and am, in reply, to inform you that although the Government have no present intention of applying that system, yet they will be obliged if you will put yourself in communicatiou with Dr. Featherston, the Agent-General of the Colony, in London. His temporary address is at 3, Adelaide Place, King William Street, E.C. I am also to state that a company has been formed in Melbourne for working this system, and that overtures had previously been made to the Government in respect to it. I have, &c, John Knowles, Messrs. Robinson and Jansen, Darlington. Under Secretary.