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intention of appealing against this demand for material for construction works; and that we further claim to be paid for the galvanized iron so delivered —payment at the rate of £30 per ton. We have, &c, E. Carrow, Esq., Stores Manager, Thos. O. Kelsey and Co., New Zealand Eailways, Christchurch. (Agents for Guthrie and Larnach Company.)

Acknowdedged— 30 / 7 / 80. Locomotive Superintendent.—Please note.—E. Carrow, Stores Manager.—3o/7/80. Stores Manager.—Noted.—A. D. Smith, D.L.S.—4/8/80.

No. 32. Mr. Conyers to Mr. E. Carrow. Stores Manager, Christchurch. I have just learned with unqualified amazement that copies of some of my official telegrams and other instructions relative to the supply of corrugated iron for the tarpaulin shed at Addington are in possession of Guthrie and Larnach, and that such copies were furnished by you. All official papers which pass within the department are confidential, and it is competent only to me to divest them of their confidential character. It is impossible that you can be ignorant of this, and I am at a loss to understand under what hallucination you have allowed yourself not only to divulge but to give copies of these confidential communications. I shall be glad to be favoured with your explanation. Wm. Conyers, Commissioner of Eailways, Middle Island. Office of the Commissioner of Eailways, Middle Island, Dunedin, 29th July, 1880.

No. 33. Protest from Guthrie and Larnach. The Commissioner of Eailways, Dunedin. I have the honor to forward copy of a letter received from the contractors for delivery of iron, machine and boiler fittings, Christchurch, who are now delivering the galvanized corrugated iron required for Addington workshops under protest. The fire-bricks are also being delivered by the other contractor, who merely delayed doing so until the supply of the iron was enforced. I have the honor to suggest that a circular should be issued from your office to the effect that all goods required by the Eailway Department for any Government purpose must be obtained through the stores. E. Carrow, 29th July, 1880. Stores Manager.

No. 34. Mr. Conyers to the Hon. the Minister for Public Works. Hon. the Minister for Public Works. With reference to the annexed copy of a telegram* addressed by Mr. A. D. Smith to Mr. O'Connor, and to your minute thereon, I have the honor to inform you that, in terms of your instruction, I addressed a letter to Mr. Smith (copy of which I annex) peremptorily desiring him to divulge the authority upon which he stated in that telegram that Guthrie and Larnach, because iron had gone up in price, had induced me to relieve them of the onus of supplying the corrugated iron required for the Addington shops. Mr. Smith in his reply (which I attach) evades the question which I put to him, but states that he considers the remark " borne out by the correspondence," which is in his own and the Store Manager's possession. He pleads that in my letter to him I have misquoted him, that the expression he made use of was not "induced," but "have got" —"they have got him to," &c. Mr. Smith does not much improve matters by this correction. On the contrary, the expression he admits having made use of seems to me to be more mischievous and offensive than the one which I inadvertently substituted for it. Mr. Smith goes on to say that this remark conveys no imputation upon me, but I should be simply submitting to a stultification of myself if I were to accept such an assurance. There can, I submit, be no doubt that the remark conveys, and is intended to convey, an imputa* tion of corruption or of undue favour shown in disregard of the interests of the department. I beg to state most emphatically that Mr. Smith's statement is as pointless and untrue as it is malicious, and that I had no communication of any kind with Guthrie and Larnach, or with their people, relative to this iron. The principle upon which I acted in dealing with this matter is pretty fairly set forth in a letter (copy annexed) addressed to Mr. Smith by the Stores Manager, who repeats there what I had stated to him (the Stores Manager) verbally on the subject. And here, in order that some allusions in the latter letter may be rendered intelligible, it becomes necessary that I should explain to you that the building for which Mr. Smith wanted this iron was a tarpaulin shed which he had obtained an authority for, and carried on the building of, not only without my knowledge, but in absolute violation of my instructions. Mr. Smith had often importuned me about a new tarpaulin shed, but I had always refused to sanction it. telling him that I had made up

* See No. 2 of Mr. Smith's correspondence (No, 12 ante).