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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