EAST AND WEST COAST RAILWAY.

Te Aroha News, Volume III, Issue 116, 22 August 1885, Page 4

EAST AND WEST COAST RAILWAY.

Wellington, August 14. At this afternoon's sitting, Mr Stout read the cables that passed between Govern- | merit and the delegates regarding the Canterbury proposals. The telegrams were, laid on the table, and shortly after whipped off to the printers. Fortunately I have secured ,an advance proof, and am thus able to give, so far as the cables are concerned, a complete history of the negotiations. The first cabled measage is dated London, July 10th, and is from Mr Scott, on© of the delegates, to Sir Julius Vogel. It states: "Provisional arrangement made subject to further concessions j very important . that submit personally ,• what latest date Fell and Dobson arrive and get bill - through , House. " This shows that

the delegate made cockSure of the proposals being accepted, ' and, indeed, that two of their number, Messrs Foil and Dobson, should come to the colony to lobby a bill through the House. Three days after receipt of this Sir Julius Vogel wired to the Agent-General, instructing him to inform the delegate that the session would probably conclude before the close of the month, and requesting that the concessions asked for be cabled, and also particulars regarding the syndicate and names of the principal men. To this, on the 15th, the Agent - General sent the following reply: — "Delegate course thirteenth firstly. Requested dolegates report exact position of their negotia tions, which they have done as follows :— Report begins: • Meiggs and Sons, South American contractors and financiers, of good standing and repute, have agreed in writing to take the contract, probably completing the works in three to five years, provided an absolute Government guarantee is givon of £98,000, payable in London half-yearly, above working expenses, for twenty years, dating from completion of works, this being 2£ per cent, upon tho estimated cost, vi/.., works with contingent margin, £3,025,000 ; interest during construction, £400,000 ; syndicato allowances, for underwriting, £385,000 ; inquiries and administration, £50,000 : total, £3,860,000. I The Government allowed control over working by appointing half local directors for managing railways, but not Jand Government to havo full power to purchase railways at any time at full cost as above, lees depreciation and further works being paid for at valuation. Powerful financial house known to delegates promise support, and ready tako substantial intorest whon concessions granted. Tho report ends :— " Secondly : No syndicate is yet formed." The other cablegrams explain themselves : —Vogel to Agent-Gonoral, 17th July : " Railway understand yearly payment not commenco until entire lino completed. Also Government retain surplus ovor working expenses, whilst yearly payment continues. Reply. Also, are other special features required in bill besides those cabled.' 1 Agent-General to Vogel, July 17 : 11 Delegates, yours to-day. Reply on first question. You are right. Reply on second question, and reply on third question Monday." Agent-General to Vogel, 21at J uly : Dolegates cannor, reply on second question yet. Do not act till you have recoived il." Vogel to Agent-General, 22nd July .- "Ask delegates if intended Government liable for more than £97,000, supposing receipts not equal working expenses." Vogel to AgentGeneral, 24th July: "Tell Scott unless guarantee) limited to total £97,000, including working expenses, and unless excess recoipts applied reduction guarantee; approval hopeless. Reply quickly." AgentGenorfl to VogeJ, 24th July : " Delegates, your three last— on third question report begins : ' Treasurer's messago to-day means contribution not guaranteed as asked. Amount receivable by syndicate must be £97,000, Government paying also any deficit in working expenses. All profits from land must belong to the syndicate, theso profits being chief inducement investors. Payment under guarantee during 20 years recouped from profits of land. Probably built three or more portions by separate issues. Land being allocated here rateably, therefore necessary provide guarantee divided rateably, andfailuro on portion, not entailforfuture. Other saving clause present contract also necessary. Nothing less than these terms any u&e whatever.' " The report ends secondly, " instruct whether shall cause Fell and Dobson return, 'Tongariro.'" Vogel to Agent-General, 7th August: " Parliament refuses sanction delegates' agreement. " Sib Geo. Grey has a wondorful forte for roading and analysing the contents of Parliamentary papers. Yesterday, whilo conning over tho contract entered into by the Government with the promoters of tho East and West Coast and Nelson Railways, he dropped on the following clause :— " (19) And it is hereby lastly agreed that in case any provision of this contract as to allocation of land thereunder shall be modified either wholly or in part by a resolution or resolutions of the General Assembly of New Zealand at tho next ensuing session thereof, tho contractors shall not have any claim ordemand upon oragainst th 9 Queen or the Governmentof tbecolony of New Zealand for any loss or damage by reason of such modification, or in consequenco of the operation of any such resolution ; and any property, estate, right, or interest that may have been acquired by the contractors undor or by virtue ot these presents shall to the oxtont, and in tho manner specified in any such resolution be, and be deemed to have again become, the property of the Queen, or to re-vest in tho Queen, as the case may require; and, further, that nothing contained in this contract shall be deemed in any way to abridgo, control, modify, or supersede any power, remedy, or authority which, under the principal Act or said Act, is vested in, or may be exercised by, the i Govornor-in-Council or the Governor or Minister for Public Works." Sir George Grey contends that as no modification has been mado heretofore, and unless one is made during tho present session, tho promoters will bo ablo to prefer a claim for the endowment of land propossd to be givon in connection with tho construction of the railways. To meet tho case, ho proposes moving as follows : " Whereas tho Govornor did upon the seventeenth day of January, 1885, entor into a contract with cortain persons for tho construction of the East and West Coast (Middle Island) and Nolson Railways, and did, By certain provisions of that contract, agree to the allocation of the Crown lands therein sot forth, ifc is hereby resolved, a3 prescribed by the nineteenth section of said contract, that all the provisions regarding tho allocation of land in said contract are wholly and in part modified, and that the contractors for said railways shall have no claim to any land, or to bo put in possession of any Crown lands, under said contract, except land of the width and extent necessary for the construction of such railway, and any Crown land adjacent thereto which may be available and in the opinion of the Minister of Public Works may be required for side cuttings, ballasting, spoilbanks, road approaches, and road diversions, for the said railway."

The new Presbyterian Church at Te Awamutu is now finished. The photograph of a "tailed boy "was recently exhibited by the President of the London Anthropological Institute. The boy, a native of Sargon, was about eight years old, and his caudal appendage was fully half a foot long, Taupo natives are preparing for a big meeting on the 20th mat. The chief subject of " Korero " is to be the land, and the Ngatewharetoa tribe will ask to have theii possessions allocated to them independently of Wahanui and his people. The defence forces of New South Wales will amount to 10,000 men, when the volunteer force is raised to a strength of 3,000, Dunedin City Council have arranged with the Government to provide work for the unemployed at stone- breaking, J