D.—2

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No. 20. The Hon. the Premier to the Agent-General. (Extract from Telegram.) Wellington, I2th January, 1885. Have you recovered value condemned axles ? The Agent-General, London. R. Stout.

No. 21. The Agent-Generai, to the Hon. the Prbmixk. (Extract from Telegram.) London, 14th January, 1885. * * * * Condemned axles, value not recovered. Detaining balances; shall probably have to bring action. The Premier, New Zealand F. D. Bell.

No. 22. Memorandum by the Under-Secretary for Public Works to the Engineer-in-Chief. Do you wish to make any remarks on the Agent-General's letter of 12th November last, and its enclosures ? The Engineer-in-Chief. C. Y. O'Connor, 14/1/85.

Minute by the, Engineer-in-Chief. Only this, that notwithstanding the explanations of the Consulting Engineers, I do not yet think that the axles were tested as it was specified they should have been. Also that the testing by Professor Kennedy is quite outside the question, as it only shows what could be made of certain pieces of axles by forging down and rolling into small sizes. What we are concerned with is the quality of the iron as axles, and this has been proved to be bad, and of the worst description. The Under-Secretary for Public Works. John Blackett 16/1/85.

No. 23. Memorandum by the Under-Secketart for Public Works to the General Manager of Railways Do you wish to make any remarks on the Agent-General's letter of 12th November last, and its enclosures ? The General Manager of Railways. C. Y. O'Connor, 17/1/85.

Minute Jjy the General Manager of Railways. A large number of these axles have been tested in Christchurch and Dunedin, as well as in Wellington, and they have all failed utterly. New axles forged from the broken pieces also failed. Newaxles forged from good scrap, tested at the same time, stood the tests, and would not break with more than a dozen blows. Old axles from former importations, tested at the same time, bore the test thoroughly. There seems scarcely room to doubt that the importations referred to are thoroughly bad. The Under-Secretary for Public Works. J. P. Maxwell, 29/1/85.

No. 24. The Uxder-Secretary for Public Works to the Agent-General. (Memorandum No. 11/85.) Public Works Office, Wellington, 11th February, 1885. In reference to former memoranda, which I have had the honor to address to you, on the subject of the defective axles supplied under the contracts with the Lancaster Wagon Company, and the Staffordshire Wheel and Axle Company, and especially to your memorandum No. 517 of the 12th November last, covering a report from the Consulting Engineers on the matter, I am now directed by the Minister for Public Works to inform you that he is advised that a large number of these axles have been tested in the railway workshops at Christchurch and Dunedin, as well as in Wellington, and that all have failed utterly, and that some new axles that were forged in the same workshops, from pieces of the imported ones that had been broken in testing, failed similarly. Some other axles that were also forged in the shops, from good scrap iron, and tested at the same time, stood the tests well, and could not be broken even after receiving more than a dozen blows; and some old axles, taken from former importations, and also tested at the same time, bore the test well. The Agent-General, London C. Y. O'Connor.

No. 25. The Agent-General to the Hon. the Minister for Public Works. Sir, — 7, Westminister Chambers, London, S.W. 20th January, 1885. T duly received your telegram of the 12th instant, on the subject of the condemned axles, and in