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I.—2a

Mr. J. Knowles to the Chaitimax, Thames County Council. (No. 1773.) Sib— Public Works Office, 3rd June, 1878. The Chairman of the Conference Committee has called the attention of the Hon. the Minister for Public Works to an error in requesting you to prepare draft of Bill re the suggested Thames and Waikato Eailway. There was no intention on the part of the Minister to go outside the gentlemen with whom the Government had been in communication; but, Mr. Kilgour's letter having been dated from " Council Chambers," the telegram requesting the preparation of the draft Bill was inadvertently addressed to the Chairman of the County. lam to request, therefore, that you will consider the telegram sent you on Saturday, and the letter therein mentioned, as having been forwarded to you in mistake. I have, &c, John Knowles, The Chairmau, Thames County Council. Under Secretary for Public Works.

Dr. Kilgoue to the Hon. the Ministee for Public Woeks. Sic, — Council Chambers, Thames, 3rd June. 1878. I have already apprised you by telegraph of my surprise at seeing in this day's paper a statement that the Thames County Council have been authorized by you to draft a District Railways Bill applicable to the construction of the Thames Valley Railway. The only body authorized to deal with this subject is the committee of the associated local bodies interested in the work, of which lam the chairman. The committee represent the Municipal Councils of Thames and Hamilton, the County Councils of Thames, Piako, and AVaikato, the Highway Districts of Cambridge, AVaipa, and Ngaruawahia. These bodies have delegated to the committee chosen by them the duty of exposing their views and interests to the Government, which has been done by the transmission to you of their proceedings in conference. I also, on the 13th May ultimo, addressed to you a letter asking you to indicate whether the Government will expect the Committee to draft the Bill required to enable a company to construct the line above mentioned. To the various communications ou this subject sent by me to the Government, I have not received any replies. It appears tome that you have been misled in some way as to the position of the question. I have, &c, The Hon. the Minister for Public Works. James Kilgoue.

Mr. Knowles to the Chaieman of Railway Conference. Sic,— AVellington, 13th June, 1878. I am directed by the Hon. the Minister for Public AVorks to acknowledge the receipt of your letter of 3rd June, relative to the error in corresponding with tho Committee in Conference in reference to the preparation of a draft Bill for the Thames aud AVaikato Railway. My letter of same date, crossing yours, will have explained how the inadvertence occurred. I have, <fee, J. Knowles.

Mr. James Kilgoue, Mayor, Thames, to the Hon. the Ministee for Public Woeks, Wellington. Sic, — Council Chambers, Thames, 4th July. Adverting to your letter of 3rd June, No. 2447, approving my suggestion that the Thames and Waikato Railway Bill should be drafted by the Conference Committee, I have now the honor to report to you that the Committee has accomplished that work, after bestowing great care and attention upon the subject. The Committee have taken the District Railways Act of last session as the basis of their draft Bill, and have not deviated from its provisions except when the peculiar circumstances of the proposed line seemed to render such alterations necessary. Thus, the great extent of unrateable land—amounting to about three-fourths of the whole —through whicli the railway will pass makes an alteration in the proportions of the guarantee to be contributed severally by the Government and by the district necessary; but, as will be seen, the proportions as fixed by the Bill to meet present circumstances are liable to alteration as the lands now in the hands of the Natives, and consequently not rateable, become the property of Europeans. The provisions for fencing the line contained in the draft Bill have been inserted chiefly with a view to the safety of the public, and are estimated to enhance the cost of construction to the extent of £10,000, part of which sum could be allowed for in valuing compensations when such should bo claimed; but some of the largest landowners concerned have stated it to be their intention to grant the extent of land necessary for the construction of tho line free of cost to the company. The powers reserved to the Governor by the District Railways Act have generally been retained in the draft Bill, and as regards its other special provisions, they are to be found in clauses 10, 11, 12, 20, 49, 57, 58, 67, 68, 69, 70, 71, 72, 73, 74, 76, 77, 79, to which your attention is respectfully requested. Three printed copies of the draft Bill, as prepared by the Committee, are enclosed. I have, &c, James Kilgoue, The Hon. the Minister for Public AVorks. Mayor. 3—l. 2a.