D.—3

9

It is at the present time impossible for my directors to say whether any, or what, modifications may be required in the terms proposed in order to enable them to raise the capital, but so soon as these can be ascertained, my Board will at once communicate them to you, but the point above mentioned must be settled before any definite conclusion can be arrived at. In the meantime, negotiations will be carried on with the understanding that our reading of clause D will be accepted. I have, &c, The Hon the Premier, Wellington. 2Eneas B. McDonell, Secretary.

No. 14. The Secretary, New Zealand Midland Bailway Company (London), to the Hon. the Premier. The New Zealand Midland Bailway Company (Limited), Sir,— 61 and 62, Gracechurch Street, London, E.C, 24th March, 1894. I am instructed by my directors to inform you that they have, as promised, made every effort to raise the money for the completion of the east and west route of the New Zealand Midland Bailway on the terms which you have stated would be acceptable to the Government in your letter of the 13th December, 1893. They greatly regret that they have not been successful in their endeavours; but they understand that, in accordance with their instructions, Mr. Bobert Wilson has already intimated to you the doubt that existed in their minds as to the possibility of success. My directors have been very anxious to refer to some authority upon whom you would rely, and whose opinion you would trust apart from any representations that were made to you by them. They have accordingly placed themselves in communication with Messrs. Scrimgeour, the brokers to the New Zealand Government, and they understand that Messrs. Scrimgeour will hereafter communicate with you, either directly or indirectly, in order that you may understand clearly the condition of the money-market in London. - I have, &c. The Hon. the Premier, Wellington. .ZEneas B. McDonell, Secretary.

No. 15. The Hon. the Premier to the Secretary, New Zealand Midland Eailway Company (London). Wellington, New Zealand, 28th April, 1894. Sir, — Be New Zealand Midland Bailioay. I have the honour to acknowledge the receipt of your letter of 24th February last in reference to the modifications proposed in the New Zealand Midland Bailway contract, and giving the interpretation which your directors place upon the resolution of the House of Bepresentatives, marked " D," transmitted to you in my letter of 13th December last. In reply, I have to state that I am unable to concur in the company's interpretation of the resolution referred to, but must leave the same to speak for itself. I have, &c, The Secretary, New Zealand Midland Bailway Company, B. J. Seddon, Premier. 61 and 62, Gracechurch Street, London, E.C.

No. 16. The Hon. the Minister for Public Works to the Secretary, New Zealand Midland Bailway Company (Limited), London. Public Works Department, Wellington, 3rd May, 1894. Sir, — Be New Zealand Midland Bailway. I have the honour to acknowledge the receipt of your letter of 24th March last, intimating that Messrs. Scrimgeour, sharebrokers, of London, will communicate with the Government relative to the condition of the money-market in England. I have, &c, B. J. Seddon, The Secretary, New Zealand Midland Bailway Company, Minister for Public Works. 61 and 62, Gracechurch Street, London, E.C.

No. 17. The Agent-General to the Hon. the Minister for Public Works. (Cablegram.) London, 11th May, 1894. Midland Bailway Company received offer necessary money complete railway subject to following: Firstly, New Zealand Government purchase with 3J-per-cent. inscribed stock Belgrove Section, Midland Eailway Company extending to Motuska if desired; secondly, exemption from local taxation ; thirdly, railway rates to be maintained contract schedule; fourthly, £618,000 3J-per-cent. inscribed stock to be vested, trustees transferable as line constructed; offer definite, and early arrangements advisable. Bremier, Wellington.

No. 18. The Secretary, New Zealand Midland Eailway Company (Limited), London, to the Hon. the Premier, Wellington. Sir,— 61 and 62, Gracechurch Street, London, E.C., 19th May, 1894. In continuation of my letter of 24th February, 1894, I am instructed to inform you that my directors have an offer of the money necessary to complete the east and west route of the New Zealand Midland Bailway. Some modification of the proposals that have been received from you will 2-D. 3.