13

D.—sa

If the shareholders, instead of supplying share capital, elect to obtain money by financing, they must pay for it, and not include it in the cost of the railway. That is the view of the Government, and until it is settled the inspector of the books of the company, unless the point were left to his discretion, would be unable to come to a conclusion. The Minister for Public Works has not considered that he has the power to insist on a re-estimate, so that he has issued his precept for the deficiency on the working for the year ending 31st March, 1885. You ask me to forward to you the amount due to you under it. If the Auditor-General, under the circumstances, is contented to pass the payment, I shall be content to abide by it, subject to the right of the Treasury to claim in the future a return of any part that may be found to be excessive on account of the erroneous guarantee, should that guarantee be amended. I agree with you that, if the company prefer keeping their property, the Government should bring no pressure on them to sell. I have replied to your letter, because it was addressed to me, as was naturally the case, because, being in Dunedin, I wrote to you on the subject during negotiations which were pending. The matter is, however, now in the hands of the Minister for Public Works, who informs me the correspondence will be laid before Parliament. I have, &c, Julius Vogel. E. H. Leary, Esq., Secretary to the Waimea Plains Railway Company, Dunedin.

APPENDIX CONTAINING CORRESPONDENCE RELATIVE TO THE DIFFERENT TRAFFIC ARRANGEMENTS BETWEEN THE COMPANY AND THE GOVERNMENT. Telegram from the Chairman, Waimea Railway Company, to the Genebal Manager, New Zealand Railways. Dunedin, 19th March, 1883. Received ascounts. The excess of earnings in 1883 is doubtless accounted for by increased traffic and higher rates, while it is possible less wagons used to earn it. Admit casual engine service worth more than regular work; still £12 too low for us. Am willing to sign agreement, if you make this £15 since end of year, and allow one-half rent for carriage and van-hire for Kingston service, and Id. per mile for loaded wagons, with other alterations as J. P. Maxwell, Esq., General Manager, New Zealand Railways, Wellington. H. Dbiveb. Telegram from the Geneeal Manages, New Zealand Railways, to the Chaibman, Waimea Plains Railway Company. Wellington, 22nd March, 1883. Waimea Railway.—You will remember, no doubt, that the plan of rates and agreement was proposed by me to give you more favourable results, and they appear to do so ; hence, I think it is reasonable to amend the charges for working where they appeared too low, and that is what the agreement embodies. As regards the payment for engine, £12 a week is full. Should you object, I should be prepared to dispense with it if you wish, and run a new service of our own, which could work in connection with your services, as I conclude you would wish. Ido not think I could recommend further concessions, but I will lay your telegram before the Minister. H. Driver, Esq., M.H.R., Dunedin. J.P.Maxwell. Teleeram from the Chatrmah Waimea Plains Railway Company, to the General Manages, New Zealand Railways. "»■■■■' Dunedin, 27th March, 1883. Telegram of 22nd clown to reference to charge Kingston service unintelligible; kindly make more clear. We certainly prefer give up Kingston service, unless we get fifteen pounds per week. Oblige by having whole matter settled soon as possible, as it delays accounts for annual meeting. J. P. Maxwell, Esq., Wellington. H. Dbiveb. rNoTE. The agreement following was subsequently settled by personal discussion at Dunedin, the company accepting £12 a week for engine hire in preference to the department running a new service to Kingston in connection with the company's time-table.] Agreement with the company embodying Terms for running Trains through the Company's Line between Elboiu and Kingston with the Company's Engine. Memorandum of Arbangements for Interchange of Traffic between the Waimea Plains Railway and the New Zealand Railways, and the running of the Company's Trains between Elbow and Kingston. The company will work the traffic on its own line, and will be entirely responsible for the safety of the Government rolling-stock," passengers, and goods passing over the same, the gazetted rates for the New Zealand Railways being charged for passengers, parcels, returned empties, drays, carts, and waggons. § The Government to supply rolling-stock of every kind (engines execpted)—namely, carriages, brake-vans, trucks and horse-boxes, &c, charging the company for the use of the same at the following rates at per day or part thereof where not in joint use—namely, first-class carriage, 10s. per day; composite or second-class carriage, 7s. 6d. per day ■ brake, ss. per day. On passenger-carriages and brakes running between Gore and Kingston on the through Government passenger services, no charge will be made. Should the Government at any time supply an engine, the charge for the use of the same will be at the rate of £3 10s. per day or part thereof. All wagon-stock and horse-boxes will be charged Id. per mile run, loaded or unloaded. The Government will charge 6d. per ton on goods, Classes \ B 0 D ■ °3d per ton on Class E ; Id. per 100 superficial feet for timber ; 6d. per truck on Classes ¥, L, M ; 2d. per ton Classcs'N, P ; Id. per bale on wool; Id. on each parcel; and Id. on each local passenger and on all local bookings from or to either junction station to stations on the company's line for use of the Government stations. 3 Passengers will be booked via the company's line between Kingston and Elbow and the following stations, viz ■ Dunedin, Mosgiel, Milton, Balclutha, Clinton, Gore, and Mataura. ,In all other cases passengers must re-book at the i unctions. ~.,,,,,- ~ , ,• , 4. Parcels will be booked from all stations on the Government lines to all stations on the company's line, and 5 Goods will be booked from all stations on the Government lines to all stations on the company's line, and vice 6 The company's line will be counted as thirty-seven miles for purpose of through traffic. 7* Division of charges will be made between the New Zealand Railways and the company— For passengers and parcels, proportionately to mileage. For goods, such charges will bo levied and handed to the company as the company may from time to time direct. The charges named in the schedule hereto will be made until further arrangement.