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the Government repudiated this proposal of the Board that they should pay the Board rent for their own shed. Then the Board came to realise that this Gladstone pier and shed were not vested in them, and they requested the Government to pass an Act to vest these properties in the Board; and it was resolved in April, 1887, " That the Government be requested to recommend His Excellency the Governor to reserve all these breakwater sheds, jetties, and breastworks, as also all land lying below high-water mark with the Harbour of Lyttelton not already vested in the Board ; and at the first meeting of the Assembly to obtain authority to convey by Crown grant such lands to the Board, reserving the right to the Government to lay down and maintain railway-lines upon such breakwater's and wharves, with every facility for working the same." The Harbour Board passed a resolution inviting the Government to vest these properties in them, reserving- the right to the Government to lay down lines and build sheds, &c. After some written negotiations with the Board the outcome was " The Lyttelton Harbour Board Land Act, 1877." I wish to draw your attention to this fact: that clause 144 of "The Harbours Act, 1878," which the Chairman read to the Committee, has no bearing on this matter at all. The Crown Law Officers advised that this special Act, which was passed with the concurrence of the Board, Mr. Larnach asked if the Government were represented, as the matter was a very important one. The Chairman pointed out that Ministers would be able to see the evidence, which was being taken down. Mr. Maxioell: Well, sir, I wish to point out that clause 144 of the Harbours Act of 1878 has no bearing whatever on this matter. That contention has been repeatedly brought forward in the last eight or nine years, and this Board has been shown that it is quite in error, and that the Harbours Act of 1878 does not apply to the case, and that " The Lyttelton Harbour Board Land Act, 1877," does apply. [Mr. Maxwell here quoted sections 9, 10, and 11 of "The Lyttelton Harbour Board Land Act, 1877.] 9. The Governor may from time to time, and at any time hereafter, lay down, Power to the construct, and maintain upon any wharf, jetty, pier, quay, or dock vested in or Governor to lay constructed by the Board, a line or lines of railway connecting with any railway down railways vested in Her Majesty; and may at all times thereafter enter upon any such wharf, onvv:iarves> cjetty, pier, quay, or dock, and use the said line or lines of railway, with all necessary v permanent-way, rolling-stock, fittings, appliances, and conveniences for the effectual working of the same, in such manner and to such extent as the Governor shall think fit. 10. The Governor may from time to time hereafter, on behalf of Her Majesty, Also to erect erect and maintain upon any wharf, jetty, pier, quay, or dock vested in or constructed s'OTes ■""* by the Board, such stores, railway, sheds, offices, and other buildings as may be thereon' 0 ' necessary for the working or management of any such railway as aforesaid. No compensation or other allowance shall be payable by the Governor or the Government of the colony for or in respect of the exercise of any right or power reserved under this or the last-preceding section. 11. The railway store and shed now standing on the erection known as " Officers' Railway store Breakwater," in the Harbour of Port Lyttelton, shall remain absolutely vested in Her on Officers' Majesty the Queen, her heirs and successors, who shall at all times have the right of Breakwater to keeping and maintaining such store and shed on the said breakwater, and the right Q rown of access into and out of the same, along, across, and upon the said breakwater at all times. The meaning of that action was probably this : The Board having been endowed with £28,000 a year in wharfages, the Government, at the time, felt justified in reserving the exclusive right to use the whole of the wharves for their rails, and to use all the sheds that were on these properties without paying any more for them. That is really the Act which governs the proceedings of the Government with regard to these sheds and properties in Lyttelton. The Board had, as I said, invited Government to pass this Act, and Government passed it with these reservations. The Act passed in November, 1877. Incidentally, I wish to refer to Mr. Carruthers, Engineer-in-Chief, whose name has been mentioned several times in connection with this petition. I was at that time his office assistant. I was intimately acquainted with everything that went on, and from the time this correspondence began up to the time of Mr. Carruthers leaving New Zealand I knew all that went on, and I know his views were not in the direction of allowing these sheds to pass into the Harbour Board's hands, and he advised the Government accordingly, and that Act was the outcome of his advice. 197. Hon. Sir J. Hall.] When did Mr. Carruthers go home ? —ln 1878. Nothing more was done. This Act passed, and things went on smoothly. Nothing more passed to disturb affairs until 1879. I knew what was going on up to 1878, because I was then connected with the Railway Department, but after that my connection with it ceased for two or three years; and so, in referring to what took place during the latter period, 1 am going into details rather unknown to me. I found afterwards what had happened from correspondence found in the offices. In 1879, for some reason or other, the Board thought proper it should make some move with regard to the Gladstone Shed, and have it cut up into three pieces, and, as far as I can make out, they pressed Mr. Conyers to allow them to alter the shed, and wrote a letter, which has been read, in which it was suggested that this shed, when cut up, "Should be made over to the Board. Now, as I said before, because the traffic is worked exclusively by the Railway Department, and the department only are concerned in receiving and moving goods, it did not concern the Board whether the shed was at Christchurch or Lyttelton. Mr. Conyers agreed to this shed being cut into three pieces, and the Board spent £3,000 odd, and the Government spent £1,500 —in all, £4,500 —in effecting the alterations, and the result was they got 160ft. more shed-accommodation. That is all they got for that expenditure,