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see that, in constructing the railway, I made provision for the drainage by means of pipes in cattlestops, and under the road at the gate. To the west of Section 12, on the south side of Duke's Eoad, you will see the culvert and ditch marked on plan, showing plainly that provision was made to carry the water along the south side of road, on the inside of the fence. With reference to the bridge referred to by Mr. Catomore as being too small to carry the water, I cannot at all agree with him. The bridge is a 20ft. span, with an lift, span at each end, and, in my opinion, quite large enough to carry all water in ordinary and extraordinary floods, provided the flow of water is not obstructed, and a clear way given. The Mill Creek, some eighteen or twenty years ago, was diverted around the right angles as shown on plan, and the action of those who carried out the work was agreed to by Mr. Shaw. Mr. Gawn, who purchased a few years ago Sections 4 and 5, being adjoining land to Mr. Shaw, has done all in his power to prevent the creek from flooding his own and adjoining property, by means of widening the creek and forming an embankment, and very considerably widening and protecting the angle at Cross-section CD, between his own and Mr. Shaw's property. Mr. Shaw, on the other hand, will do nothing whatever to further the flow of water, which could easily be done by means of a slight embankment on his land, and widening the angle at Cross-section AB. He has always acted as an obstructionist. Mr. Gawn is willing to do anything reasonable to get over this trouble with his neighbour. He will widen the creek at Cross-section CD as may be suggested; but this would be quite useless unless Shaw widened his corner at Cross-section AB; and, as he will not do this, I would suggest —provided we have the power—that a triangular piece, 200 links by 150 links, be taken and the creek cut as shown on proposed diversion at AB, and thus allow Mr. Gawn to carry out this most necessary improvement. Gawn has offered from time to time to purchase the small paddock from Shaw—about ten and a half acres —but Shaw will neither sell nor assist in any way to get rid of the flood-water. The flood referred to in Mr. Catomore's letter was the greatest witnessed for ten or twelve years past. Mr. Shaw would during any great flood receive more or less water on to his property. I have to repeat that the damage referred to is quite imaginary, as I saw none when on the ground. Before concluding I beg to express an opinion why Mr. Shaw is so much annoying his neighbour, Mr. Gawn. By reference to tracing enclosed you will perceive that Shaw's land surrounds Gawn's, and my conviction is that he wants to annoy and vex Gawn so that he may sell out, thereby giving Shaw an opportunity of acquiring the place for one of his many sons. In order to answer Mr. Catomore's letter, and to make you quite conversant with the case, I have been obliged to go beyond the contents of the letter. According to request, please find enclosed correspondence, M.I. 84-1248. I have, &c, E. E. Usshee, The Engineer-in-Chief, Wellington. District Engineer.

Mr. A. A. Catomoee to the Hon. the Ministee for Public Woeks. Sib, — 95, Princes Street, Dunedin, 16th December, 1884. I have the honour to refer you to my letter of the 9th October last, on behalf of Mr. John Shaw, farmer, East Taieri, relative to damage done to his land, and would thank you for an early reply thereto. I have, &c, The Hon. the Minister for Public Works, Wellington. A. A. Catomoee.

Messrs. Macassey, Kettle, and Woodhouse to the Hon. the Ministee for Public Woeks. Ee Bobert Gawn's Claim. Sib,- — Dunedin, 30th December, 1884. Eeferring to Mr. Ussher's report to the Engineer-in-Chief, dated the 18th November last, we have now the honour to inform you that Mr. Gawn has instructed us to apply to the Government to repay to him the amount he has been compelled to pay in consequence of the action of the Government in interfering with the natural flow of the water of the Mill Creek, and bringing it along the Otago Central Eailway line to our client's land, as shown on the plans forwarded by the Government Engineer here. In delivering judgment in the action of Shaw versus Gawn, his Honour Mr. Justice Williams found the facts to be as follows: [Extract from judgment.] "In times of flood, however, the water coming down from the hills made the Mill Creek and the ditch above the defendant's (Gawn's) land overflow, and the water came across the sections generally, but not in any defined channel. This was the state of things after the land had been brought into cultivation, but before the railway embankment was made. . . . The making of the railway embankment, however, had the effect of preventing the flood-water going across the sections, but, instead, this water was concentrated in the Mill Creek and in the drain which emptied itself into the defendant's (Gawn's) drain," &c. It is not necessary for us to place further facts before you, as they are well known to Mr. Blair, and the Hon. Mr. Stout, who will be able to give you full information on the subject. Our client is out of pocket to the extent of over £200, made up as follows : Paid Shaw's legal expenses awarded by Court, £62; paid his own (Gawn's) legal expenses, £80; witnesses' expenses, &c, £61: total £203. We feel confident that, after making yourself acquainted with the facts of the case, you will have no hesitation in recommending the Government to pay our client's demand. We have, &c, Macassey, Kettle, and Woodhouse. The Hon. the Minister for Public Works, Wellington. P.S.—We enclose a copy of Mr. Justice Williams's judgment.

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