CORRESPONDENCE WITH AGENT-GENERAL, LONDON. LETTERS IN REPLY TO MEMORANDA FROM THE HON. THE MINISTER FOR PUBLIC WORKS.

Appendix to the Journals of the House of Representatives, 1875 Session I, E-02

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1875. NEW ZEAL AN D.

CORRESPONDENCE WITH AGENT-GENERAL, LONDON. LETTERS IN REPLY TO MEMORANDA FROM THE HON. THE MINISTER FOR PUBLIC WORKS.

Presented to both Houses of the General Assembly by command of His Excellency.

[Note. —The formal letters advising the execution of the orders for railway material and rolling stock have been omitted ; but the orders forwarded to and shipments advised by the Agent-Ocncral have, for convenience, been scheduled and inserted at the end of Parliamentary Paper E.—l.]

No. 1. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— 9th July, 1874. With reference to the Hon. the Minister for Public Works' Memorandum No. 25-74, of the Bth April, 1874, I regret that any inconvenience should have arisen to the Government from not receiving the invoices and bills of lading of materials shipped so early as they could wish. I may observe that every endeavour is made to forward the invoices and bills of lading by the mail following their receipt, but in some instances this is prevented by the invoices first rendered by the manufacturers having to be re-made, owing to the division and subdivision of the material after it has left the works, to meet the requirements of the emigrant ships ; and on the other hand, from the bills of lading not being received iu time to enable the Engineer to certify the invoices for the outgoing mail. With respect to the duplicate invoices and bills of lading being forwarded in the monthly box to the Government by the mail via Southampton and Suez, this has been done to save the postage upon them, but in future they shall be forwarded as letters by the first outgoing mail. I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

No. 2. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie, — 26th September, 1874. . With reference to the Hon. the Minister for Public Works' Memorandum No. 37-74, of the sth June, 1874, enclosing a report of the Engineer at Napier on a portion of the material landed ex " Queen of the North," I have the honor to enclose a copy of a letter received from Mr. G. B. Bruce, the Consulting Engineer (in which he encloses a copy of a letter received by him from Messrs. Shaw, Johnson, and Eeay), in reply to the communication I made to him respecting the material complained of. I duly note the various claims made for short delivery of railway materials referred to by the Hon. the Minister for Public Works, which I shall uot fail to recover from the contractors, and advise the same, when recovered, as he requests. With reference to tbe claims made upon Messrs. Hopper, Badeliffe, and Co., I may state that that firm suspended payment some time ago, and I fear there may be a difficulty in recovering the claim due from them. I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General. I—E. 2.

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Enclosure in No. 2. . Mr. G. B. Beuce to the Agent-Genebal. 2, Westminster Chambers, Victoria Street, S.W., 4th September, 1874. Deae Sie, — JSew Zealand Baihoays. I beg to acknowledge the receipt of a letter signed by Mr. Charles Weber, Resident Engineer at Napier, dated 18th March, 1874, complaining of the quality and workmanship of some of the bolts manufactured by Messrs. Bayliss, Jones, and Bayliss, and also the condition of the rails manufactured by Messrs. Shaw, Johnson, and Eeay, both shipped by the " Queen of the North." With regard to this, I beg to enclose a copy of a letter from Messrs. Shaw, Johnson, and Eeay. The rust upon the rails, which would apply equally to the bolts, is by them attributed as probably arising from the length of time that the rails are sometimes left lying in the barges at the docks before being shipped. This it is impossible to guard against. I have repeatedly been at Messrs. Shaw, Johnson, and Eeay's works, and certainly never detected any inferiority of workmanship or finish in the rails which they turn out; and having an inspector constantly on the work, the number of inferior rails which escape detection must be very small compared with those which are sent out. The nuts referred to as being " rent" are all made in a die, and any rent upou them cannot be such as to interfere with their efficiency. They are all carefully selected, and the bad ones are thrown out. I shall take the opportunity, however, of enforcing increased care in the inspection of these, and also in the preparation of the packing-cases for the small ironwork. 1 have, Ac, I. E. Featherston, Esq., Agent-General. Geobge B. Beuce. Sub-Enclosure to Enclosure in No. 2. Messrs. Shaw, Johnson, and Eeay to Mr. G. B. Beuce. Deae Sie, — The Moor Iron Works, 15th August, 1874. We have received from Mr. Powell a copy of a letter written by Mr. C. Weber, Eesident Engineer at Napier, dated March 18th, in which he complains —First. That the rails made by us appear of indifferent quality, because the ends of at least a dozen are split (as he says) in stowing and handling. Secondly. That the general finish is not equal to former shipments. Thirdly. That the rails are very much rusted. We shall be glad if you would furnish us with the name of the vessel and date of shipment, so that we may endeavour to trace the particular cargo to which he refers. But with reference to his remarks, we would reply —First. That no rails can be split iu stowing and handling, and that any rails which are split must have been split in the act of being punched or by unfair usage abroad; and that the fact of a rail being split is no criterion of its quality whatever, as the best rails iu the world will split if the edge of the punch is gone. Secondly. As to the general finish, we do not understand what he means, unless it be included in his third remark as to the rails being rusty; in reply to which we can only say that the rails have left here in their usual condition, but that we cannot be responsible for any rust which may gather upon them, either before or after they leave the works. At the same time we would point out that the long claims for demurrage which we have been receiving for the last year (and many of which are not yet settled) rather lead us to suppose that tho rust complained of is in consequence of the rails lying so long in barges in the docks before being shipped. We shall be glad to have any further particulars you may have iu addition to this letter, as, although we do not think there is much in it, still we are anxious to preserve the high reputation both for the finish and quality of our manufacture. Yours, Ac, (for Shaw, Johnson, and Eeay), G. B. Bruce, Esq., Ac. T. N. Stokee.

No. 3. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Snt, — 16th December, 1874. With reference to the Hon. tho Minister for Public Works' memoranda, dated the 9th April, 1874, No. 26-74, and of the 4th June, 1874, No. 37-74,1 have now the honor to enclose the reply of Messrs. Bayliss, Jones, and Bayliss to my letter preferring the claim of the Government against them, by which it will be observed that they refuse to entertain it; and lam advised by Mr. Bruce that he does not think that I could enforce it. I have, Ac. I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 3. Messrs. Bayliss, Jones, and Bayliss to the Agent-Geneeal. 3, Crooked Lane, King William Street, London, E.C., Deae Sie,— 14th October, 1874. Wc have the honor to acknowledge receipt of your letter of the 9th instant, covering claim

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for £68 15s. on 55 cases of fang-bolts, invoiced by us on the 24th September, 1573. In reply, we are exceedingly sorry that such a complaint has been received, but we cannot accept liability in the matter, for these reasons : — 1. During the year 1872, and subsequently, we have had the pleasure of supplying you with more than 1,100 tons of fastenings, all of which were carefully inspected, and approved, by your inspectors. 2. Tho whole of these fastenings were heated and dipped in boiled linseed oil, so that every part was thoroughly impregnated. 3. Therefore, for the fangs complained of to haye become rusty, and in the state represented, it is self-evident that tho cases must have been for a considerable time under water. 4. The action of salt water would produce the rusty condition described, and in every way account for bad appearance represented on opening the cases. 5. As to quality and finish of our work, we beg fearlessly to refer you to Mr. Breedon, who inspected and passed the fastenings supplied during 1872, and to Mr. P. Hogg, who was resident inspector at our works for some mouths. After carefully considering the matter, the only conclusion that we can come to is, that the claim is absolutely against the shipowners, and not upon us ; as it is certain, from some cause or other, during the time the cases were in their hands, beyond our control, they were, with contents, damaged very seriously with salt water. Permit us further to remark that our view of the party responsible is confirmed by a letter dated Napier, of the 18th March, 1874, and signed by " Charles Weber, Eesident Engineer," copy of which was sent to the resident inspector at our works, and in which there are the following remarks : — " Mr. Dunbar has refused to sign tho receipt for them (55 cases) as in good order, and will make a claim for cleaning them. " Iu the event of Messrs. Brogden sending a claim, I shall call a survey upon the damaged portions, and try to recover from the ship, unless I receive from you other instructions." Tours, Ac, I. E. Featherston, Esq., Agent-General. Bayliss, Jones, and Bayliss.

No. 4. The Agent-Geneeal to the Hon. the Ministee for Public Woek"s. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sir,— 21st January, 1875. I have the honor to inform you that I have, on the recommendation of Messrs. Hemans and Bruce, appointed Messrs. Horace Budge and Thomas F. Eotherham to be locomotive and traffic managers, at tho salaries and with the allowances specified in the enclosed memoranda of agreement. These gentlemen will sail in the s.s. " Durham," now on the eve of departure. I have, Ac. I. E. Featheeston, The Hon. the Minister for Public Works, Wellington, N.Z. Agent-General.

No. 5. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— 15th February, 1875. With reference to the Hon. the Minister for Public Works' Memorandum No. 74-74, of tho 21st November, 1874, I have now the honor to enclose copy of a correspondence which has taken place relative to the articles deficient in the packages of two locomotives, constructed by Messrs. Neilson and Co., from which it will be observed that they are willing to pay the cost of replacing them in the colony. I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 5. Mr. G. B. Beuce to the Agent-Geneeal. 2, Westminster Chambers, Victoria Street, S.W., 2nd February, 1875. Deae Sie, — New Zealand Bailway s. We have duly received the Memorandum No. 74-74 from the Public Works Office, New Zealand, in reference to articles deficient in the packages of two locomotives constructed by Messrs. Neilson and Co. On receipt of this we communicated with Messrs. Neilson, and beg to enclose a copy of their reply. This is the first instance in which any short shipments have been reported upon with regard to any locomotives sent out either from Messrs. Neilson or any other manufacturers. The bulk of the articles are very small, and might for the most part be easily overlooked in packing. At the same time these short shipments should not have occurred, especially in works so well laid out and

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methodically conducted as those of Messrs. Neilson. The principal article short is a clack-box feedpipe of copper, which Messrs. Neilson say would be more likely to have been stolen for the value of the metal than omitted in the first instance.' Messrs. Neilson, however, express their readiness to pay for the articles omitted on receiving intimation from the other side what it has cost to supply them. The whole amount cannot be great. We shall watch these shipments with increased vigilance, to be quite sure that the mistakes do not arise on this side. Yours faithfully, (for G. W. Hemans and self), I. E. Featherston, Esq., Agent-General. Geoege B. Beuce.

• Sub-Enclosure to Enclosure in No. 5. Messrs. Neilson and Co. to Mr. G. B. Beuce. Deab Sir, — Glasgow, 22nd January, 1875. We are in receipt of copy of list of articles mentioned in our specification of engines sent to Wellington per " Strathnaver," and which are said not to have been found in the cases. We have to express our regret at the deficiencies, and to state that we shall credit you with any fair charge which may be made for them. At the same time, we must state that we cannot understand how some of the articles can possibly have been omitted here. We observe that the principal article missing—the clack-box feed-pipe —is made of copper, and we may state that we have had frequent experience of parts of engines made of copper or brass being stolen during the operation of unpacking. The other articles are bolts and nuts, for which we think a charge should not be made, as, on reference to our specification, you will observe that in case No. 7 of each engine a bag containing an assortment of extra bolts and nuts was sent by us, in case they should be required in New Zealand. Yours very truly, G. B. Bruce, Esq. Neilson and Co.

No. 6. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 15th February, 1875. With reference to the Hon. the Minister for Public Works' Memorandum No. 56-74, of the 26th September, 1874,1 have now the honor to transmit, herewith, a copy of the reply which I have received from Messrs. Hemans and Bruce to the communication I made to them respecting the condition of the Waimea water pipes when landed from the " City of Glasgow," " McCallum More," and " J. A. Thompson." I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 6. Mr. G. B. Beuce to the Agent-Geneeal. 2, Westminster Chambers, Victoria Street, S.W., 2nd February, 1875. Deae Sie, — Waimea Water Bace. We beg to ackowledge the receipt of Memorandum No. 56-74, addressed to yourself, from the Public Works Office, Wellington. This refers to the condition in which the Waimea water pipes were forwarded to the colony. It is there stated that there were cracked pipes in the shipments as follows: — City of Glasgow, 3 pipes. McCallum More, 12 „ J. A. Thompson, 10 „ There was no report up to date with regard to the " Varuna." Tho three former vessels had on board, respectively, 174, 576, and 103 pipes. The report states that all the cracks in the pipes were, without doubt, in existence in the foundry, inasmuch as they were filled up and covered with the same material as the rest of the pipes. It appears from the above statement that the "J. A. Thompson," which sailed from Liverpool, had Io pipes cracked out of 163; whereas the " City of Glasgow " and " McCallum More," which carried 750 pipes from Glasgow, have only* 15 pipes cracked between them, or 2 per cent., whereas the "J. A. Thompson " was 6 per cent. You may remember that the contract with the manufacturers was for delivery f.o.b. in the Clyde, and they declined taking the risk of delivery in Liverpool, involving a long carriage and more transhipments ; and the fact that so much larger a proportion of the broken was in the vessel which sailed from Liverpool, we think, evidently shows that there must be some error in the statement that the cracks were in existence in the foundry. We had an inspector resident upon the spot. All the pipes were regularly tested, and a considerable number were rejected as faulty. If any pipes were cracked prior to being coated by Smith's patent process, it must have been done in the handling in the yard, between the time of

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testing and coating. AVe cannot help thinking, however, as already said, that, as indicated by the greater breakages from Liverpool, the bulk of them have taken place since the pipes left the foundry. We were aware of the danger of pipes of such large diameter breaking in transit, and, in consequence of this, all the pipes were made 1 inch thick instead of £ inch, the thickness mentioned in the indent which came Home from New Zealand. If we had not taken this precaution, we believe that a much larger number would have been broken. We can assure you that every possible care was taken in their inspection. Tours, &c, (for G. W. Hemans and self), I. E. Featherston, Esq. George B. Bruce.

No. 7. The Agent-Geneeal to the Hon. the Ministee for Public Woeks. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— 19th March, 1875. Referring to your Memorandum No. 45, of 26th September last, I have now the honor to forward forms of agreement for the services of Mr. William Stone as locomotive and traffic manager, and of Mr. Lawrence Oxley as mechanical draughtsman, in accordance with your requirements. The terms on which these gentlemen have been engaged are fully specified in the respective agreements. I have, Ac, I. E. Featheeston, The Hon. the Minister for Public Works, Wellington, N.Z. Agent-General.

No. 8. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— 19th March, 1875. With reference to the Hon. the Minister for Public Works' Memorandum No. 41-74, of the 20th September, 1874, relative to the rolling stock per " Loch Awe," I have the honor to enclose a copy of a letter I have received from Messrs. Hemans and Bruce enclosing one from the Eailway Carriage Company respecting the condition of one of the under-frames referred to in the Memorandum of the Minister for Public Works. I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 8. Mr. G. B. Beuce to the Agent-Geneeal. 2, Westminster Chambers, Victoria Street, S.W., sth March, 1875. Deae Sie, — New Zealand Bailways. In reference to Memorandum No. 41-74, of 25th September, 1874, complaining of the condition of one of the under-frames shipped per the " Loch Awe," we beg to enclose a copy of letter from the makers, the Eailway Carriage Company, of Oldbury, Birmingham. This firm has executed a very large amount of work for us, extending over a number of years, and we have found them very careful and trustworthy. In view of the complaint under notice, we will endeavour to use even greater vigilance in detecting errors, but we cannot see how such an under-frame as that described could fail to be rejected. Yours, Ac, (for G. AV. Hemans and self), I. E. Featherston, Esq., Agent-General. . Geoege B. Beuce. Sub-Enclosure to Enclosure in No. 8. Manages of the Eailway Cabbiage Company, Limited, to Mr. G. B. Beuce. Deae Sie, — . Oldbury, near Birmingham, 3rd February, 1875. Yours of 2nd instant. I can assure you that I have been exceedingly careful over your orders, and cannot think how anything inferior could pass the detection of ourselves and all concerned. I fool sure it must be a very slight matter, and not such as would affect the working of the vehicle. Yours, Ac, William Stablefobd, G. B. Bruce, Esq. General Manager Eailway Carriage Company, Limited.

No. 9. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 12th March, 1875. Upon receiving the Hon. the Minister for Public Works' Memorandum No. 50-74, of the 26th September, 1874, relative to the brake hangers on the rolling stock being made of cast iron, I

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handed the same to Messrs. Hemans and Bruce, with instructions that in future they should be made of wrought instead of cast iron, which they undertook to see carried out. I have Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

No. 10. The Agent-Geneeal to the Hon. the Colonial Seceetaey. (No. 193.) 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— . 19th March, 1875. I have the honor to state that invitations to tender for about one-half of the rolling stock ordered under Public Works Memorandum 55-74, of the 25th September, 1874, have been issued by me to the several manufacturers. The tenders are due on the 23rd instant. I enclose a copy of Messrs. Hemans and Bruce's letter explaining the delay that has arisen in preparing the drawings. I am also about to invite tenders for the remaining portion of permanent-way material ordered under Public Works Memorandum 59-74, of the 20th September, 1874 ; delivery to be taken by me in the months of September, October, November, and December of this year. I have been induced to do this on account of the continued depressed state of the iron trade, and I hope to secure this portion upon equally favourable terms as the first. Tenders will also be invited for the remaining fourteen locomotives. I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 10. Mr. G. B. Beuce to the Agent-Geneeal. 2, Westminster Chambers, Victoria Street, S.W., 24th February, 1875. Deae Sie, — New Zealand Bailways. We beg to forward to you the specification for the rolling stock as per Memorandum No. 55-74. We have included in the present specification about one-half of the whole quantity which in consultation with yourself was considered to be iu accordance with the requirements as stated in the memorandum. We have prepared fresh drawings and lithographs of the stock, embodying various minor alterations and modifications introduced since the drawings were originally prepared. These have become necessary to avoid confusion, and account for the specification not having been sent to you before. We would suggest you asking for tenders from the same parties that have previously tendered. Yours faithfully* (for G. W. Hemans and self), I. E. Featherston, Esq., Agent-General. Geoege B. Beuce.

No. 11. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— 7th May, 1875. With reference to your letter, No. 12, of the 19th January last, enclosing the Hon. the Minister for Public Works' Memorandum No. 11-75, of the 18th January, 1875, respecting a claim made by the Government on the Eailway Carriage Company for damage done to railway carriage fittings, owing to the imperfect soldering of the cases, I have the honor to state that the Eailway Carriage Company has paid to me the amount of the claim, £525 135., with the additional amount of £4 4s. for survey fees, claimed under Memorandum No. 17, of the 13th February, 1875. In doing so they have requested that I would lay before the Government a copy of the correspondence which has taken place respecting it, and which I beg leave to enclose herewith, and await the instructions of the Government. I have, Ac, I. E. Featheeston, The Hou. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure 1 in No. 11. Eailway Caeetage Company to the Agent-Geneeal. Eailway Carriage Company, Limited, Oldbury, near Birmingham, Dear Sie,— 30th March, 1875. We are in receipt of your favour of 25th instant, and very much regret to learn that any of the goods should have got damaged. We, however, beg to state that we are prepared with undoubted evidence of the goods having been perfectly packed, in which state they were handed over to the ship. We therefore feel sure that the damage must have taken place after shipment of the goods. I am, Ac, I, E. Featherston, Esq., Agent-General. ■ Wm. Stablefobd.

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Enclosure 2 in No. 11. Seceetaey of the Eailway Caeeiage Company to the Agent-Geneeal. Eailway Carriage Company, Limited, Oldbury, near Birmingham, Deae Sie,— 19th April, 1875. On the other side is copy of Mr. Bruce's letter of the 16th, in which he states that you will kindly forward any statement we may wish to make to New Zealand, and that you are sure the amount will be refunded to us iu the event of the Government being convinced that the damage was not due to defective packing. Under these circumstances I have the pleasure to enclose cheque (value £525 135.) for tho amount claimed, and shall feel obliged by your acknowledgment of its receipt. I have, Ac, H. Wheelee, I. E. Featherston, Esq., Agent-General. . Secretary.

Enclosure 3 in No. 11. Mr. G. B. Beuce to the Eailway Caeeiage Company, Oldbury. 2, Westminster Chambers, London, S.W.; Gentlemen, — 16th April, 1875. I forwarded the letter written by your Mr. Stableford to the Agent-General. In his reply he expresses his willingness to forward to New Zealand any statement you may wish to make relative to the damaged packages. The Agent-General at the same time does not feel justified in entertaining your recent tender prior to your payment of the cost the New Zealand Government has been put to in this matter: this he feels sure would be refunded to you, in the event of the Government being convinced that the damage was not due to defective packing. Yours, Ac, The Eailway Carriage Company, Oldbury. Geoege B. Beuce.

No. 12. The Agent-Geneeal to the Hon. the Colonial Seceetaey. (No. 289.) 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sie,— 7th May, 1875. I have the honor to state that immediately upon receiving the Hon. the Minister for Public Works' memorandum, relative to the deficiency in the bed-plates and clips supplied by Messrs. P. and W. MacLellan, I put myself in communication with Messrs. Hemans and Bruce, and directed them to require an immediate explanation from those gentlemen. I now enclose a copy of the correspondence that has taken place, and very much regret the cause that has occasioned it. The deficient bed-plates aud clips to be supplied by Messrs. P. and W. MacLellan shall be be forwarded with as little delay as possible. I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 12. Mr. G. B. Beuce to the Agent-Geneeal. 2, Westminster Chambers, Victoria Street, S.W., 30th April, 1875. Deae Sie, — New Zealand Bailwayt. We have duly received a copy of Memorandum No. 13-75, addressed to you by the Minister for Public Works iu New Zealand, relative to deficiencies in the number of bed-plates and clips supplied by Messrs. P. and W. MacLellan under their contract with the Government. Attention had been previously drawn to this from New Zealand in reference to the shipment by the " Halcione;" and on calling Messrs. MacLellan's attention to it, they replied by letter, dated 13th January, 1875, which letter was forwarded on to you. At that time we did not eutertain the smallest doubt that the short delivery would be found to be limited to that one particular vessel. We deeply regret to find that this is not the case, aud that the deficiencies appear to have been so systematic throughout the contract. We bog to forward a letter from Messrs. MacLellan, dated 27th April, in reply to a previous letter of ours, asking for an explanation. We are perfectly at a loss to understand how so marked a deficiency could have escaped the attention of Messrs. MacLellan, as well as our Inspector at the works We can only account for it by all parties having relied very improperly upon the mechanical exactness, with which the boxes were made to hold a certain number of layers of the bed-plates aud clips. Trusting to this, they did not give the attention which ought to have beeu given to testing by counting and by weight the goods actually supplied. The matter was so easy of detection when each box had painted outside of it " 80 bed-plates and 160 clips," that we do uot imagine any one to have done it with the intention to deceive. We have instructed Messrs. MacLellan to pack and ship immediately the necessary number of bedplates and clips to make up for the average deficiency on the whole 2,500 cases, calculated on tho average deficiency as shown in the 227 cases which were opened and examined by the Government.

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We can only add our deep regret that such an untoward occurrence should have taken place, as it is quite contrary to a very long experience to find anything other than a mere occasional difference between the quantities of goods invoiced and those supplied. We have taken very stringent means to prevent the possibility of such an occurrence in future. Of course these goods will be sent out to the colony at Messrs. MacLellan's expense. Tours faithfully, (for G. W. Hemans and self), I. E. Featherston, Esq., Agent-General. George B. Bruce.

Sub-Enclosure 1 to Enclosure in No. 12. Messrs. P. and W. MacLellan to Mr. G. B. Beuce. Somerset Buildings, Upper Thames Street, London, E.C., 13th January, 1875. Dear Sib, — New Zealand Bailways. In reply to your favour re short deliveries of bed-plates and clips for our contract, we regret to learn that some of the boxes shipped per " Halcione " have been found to contain less than the number specified; but in explanation we may state that the shipment by that vessel was made towards the end of our contract, and would comprise plates and clips made from the last lot of iron rolled, which was a trifle heavier than that at the beginning on account of the natural wear of the rolls. We used every precaution to have the correct numbers shipped, and all the boxes were carefully gauged before being packed to the minimum inside dimensions of 26iin. x 12rin. x Bin. deep ; the packing being done in the following manner : — Ten layers of 8 bed-plates each, and between each plate a top clip, making 80 plates and 80 clips ; the remaining top-plates being in four layers of 20 each, the sections of bed-plates and clips being as above. Centre part of plate, i-in.; thickness of top clip, fin., equal (Drawing.) fin. —the thickness of the bed-plate at the edge. We give hereon plans of bed-plates as packed, also of layers of top clips, which show that in length and breadth of each case we have for bed-plates an allowance of |in. x Jin., and for top clips l|in. X iin. respectively. Then for depth we have — 10 layers, each |in.=6iin.") -3 ■ 4 „ „ fin. = Urn.r* m' —thus giving im. allowance. From this it will be evident that at all events the total number of bed-plates ordered and invoiced has been delivered ; and if there are some top clips inadvertently overlooked, all that we can do under the circumstances is to send out a sufficient number to make up the deficiency. This we could do upon receiving instructions : waiting which, We are, Ac, G. B. Bruce, Esq. P. and W. MacLellan. (Drawing.) Sub-Enclosure 2 to Enclosure in No. 12. Messrs. P. and W. MacLellan to Mr. G. B. Beuce. 129, Trongate, Glasgow, 27th April, 1875. Deae Sie, — Ee Bed-plates and Clips. We observe from the report sent home from New Zealand, that out of the 2,500 boxes shipped, 243 have been examined and counted, which show a total deficiency of 209 bed-plates, and 5,839 top clips. While admitting that such an unfortunate result will not justify us in defending ourselves in the slightest degree, we may be excused in saying, that we do not think the deduction to be made from these figures gives a fair representation of what has actually been supplied. For example: take the case of the " Waikato," 62 boxes shipped; two being counted, one was found to have only 62 bed-plates, and the other the correct number; an average is derived from this of uine bed-plates short in each box, whereas if more boxes had been counted the average deficiency might have been less, as in the shipment per " Eoslyn Castle," out of 35 boxes counted, only one was deficient in bed-plates, and that box only in one plate. We have simply to say, that we deeply regret that this should have occurred, as it can only be accounted for through gross carelessness. Although every reasonable precaution was used in order that the contract should have been carried out satisfactorily, we have evidently trusted men to pack the work who have proved not trustworthy. At tho same time, after having carefully checked all the iron used for this contract, we find we have received more than we have charged, allowing for waste, t<o we firmly believe, on the whole, the numbers should be very near correct, as explained to you before in our letter of the 13th January, that by the mode of packing we adopted, unless they were all quite flat and carefully packed, a row of clips might be omitted, which would account for us having so many over after the whole was completed ; but as it was doubtful that this surplus was made out of short count or variation in size of iron, we thought it better to hold them over until we should hear, but these will not amount to much over the half the present average taken demands. As we make it out, you still want us to complete our contract, by shipping 2,150 bed-plates and *55,947 clips. These we will immediately put in hands and await your instructions, and in conclusion can only say that we are more annoyed at this affair than we can possibly express to you. We are, Ac, G. B. Bruce, Esq., P. and W. MacLellan. P.S. —* There were 60,072 clips in contract, but 4,125 have been shipped, leaving 55,917 still to go. By Authority: Geoegb Didsbuhy, Government Printer, Wellington.—lB7s. Price 6(/.]