EAST AND WEST COAST (MIDDLE ISLAND) AND NELSON RAILWAY CONTRACT ENTERED INTO BETWEEN HER MAJESTY THE QUEEN AND THE CONTRACTORS FOR THE EAST AND WEST COAST (MIDDLE ISLAND) AND NELSON RAILWAY.

Appendix to the Journals of the House of Representatives, 1885 Session I, D-04

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1885. NEW ZEALAND.

EAST AND WEST COAST (MIDDLE ISLAND) AND NELSON RAILWAY CONTRACT ENTERED INTO BETWEEN HER MAJESTY THE QUEEN AND THE CONTRACTORS FOR THE EAST AND WEST COAST (MIDDLE ISLAND) AND NELSON RAILWAY.

Laid before Parliament in compliance with the 13th Section of " The Bailways Construction and Land Act, 1881."

CONTEACT. This Deed, made the 17th day of January, 1885, between Hee Majesty the Queen, who with her heirs and successors is and are hereinafter referred to as " the Queen," of the one part; and "William Cheystall, merchant; John Tuckbe Ford, stock and station agent; Geoiiqe Haet, gentleman; John Thomas Matson, auctioneer; Thomas Shailee Weston, barrister, all of Ghristchurch, in the Colony of New Zealand ; John Honeycomb Cock, merchant; Chaeles Yates Fell, solicitor; Heney Douglas Jackson, manager of savings-bank; Albebt Pitt, solicitor; and James Sclandees, merchant, all of Nelson, in the said colony, who, with their heirs, executors, or administrators, and assigns, are hereinafter collectively referred to as " the contractors," of the other part. Whekeas, in pursuance of the provisions of "The Eailways Construction and Land Act, 1881," hereinafter in these presents referred to as " the principal Act," and of " The East and West Coast (Middle Island) and Nelson Eailways and Eailways Construction Act, 1884," hereinafter in these presents referred to as " the said Act," the contractors are desirous of constructing and maintaining a line of railway to connect the East and West Coast of the Middle Island, from Springfield, in the Provincial District of Canterbury, to Brunnerton, in the Provincial District of Westland, so as to connect at Springfield aforesaid with the New Zealand Government railway already constructed, and having its terminus there and at or near Brunnerton with the New Zealand Government railway already constructed, and connecting Brunnerton aforesaid with the Town of Greymouth; and also a further line of railway from Brunnerton aforesaid to or near Belgrove, in the Provincial District of Nelson, so as to connect there with the New Zealand Government railway already constructed, and leading thence to the City of Nelson, and connecting the same with the first before mentioned lino of railway, and which two several lines of railway are intended to bo constructed simultaneously, and are hereinafter throughout these presents together referred to as " the said railway," with all necessary buildings, railway works, and. other appliances requisite for the same and of working the said railway, and especially of carrying thereon passengers, animals, and goods for hire, and generally in other respects of carrying on, upon, and about the said railway the business of railway carriers in all its branches : And whereas, at or immediately before the execution of this contract, the Governor of the Colony of New Zealand, in pursuance of the power conferred on him by the fourth section of the said Act, and with the advice of the Executive Council of the said colony, determined that the route of the railway in the said Act mentioned, so far as the first hereinbefore mentioned line of railway is concerned, and which is described in the said Act as the East and West Coast (Middle Island) Railway, should be by way of Arthur's Pass, in the said Middle Island, to Brunnerton, and the said railway is intended to be constructed as nearly as may be by that route, and along the line shown in red upon the map marked " A " hereunto annexed, and the said railway, together with the line to Belgrove, is estimated to be of the length of two hundred and thirty-five miles or thereabouts : And whereas the Governor of New Zealand, acting with the advice of the Executive Council of the colony, and in pursuance of the provisions of '' the principal Act " and of " the said Act," and especially also of the fourth and nineteenth sections of " the said

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Act," and of all other powers and authorities him thereunto enabling, has agreed with the contractors for the construction, maintenance, and -working of the said proposed line of railway upon the terms and conditions hereinafter set forth, and otherwise for the purpose of giving effect to the provisions of the said Act : Now, this deed witnesseth that, in consideration of the covenants hereinafter contained on the part of the Queen, the contractors do hereby covenant with the Queen in manner following, that is to say,— 1. The contractors shall and will with all convenient speed, and within the term of ten years, computed from the date of these presents, or within such further time after the expiration of that period as may be allowed in that behalf under these presents, at their own expense in all things, construct and completely finish a line of railway between Springfield and Brunnerton aforesaid, and Brunnerton and Belgrove aforesaid, and will construct such line of railway along the line shown in red upon the map marked " A," hereunto annexed, and known as " the Arthur's Pass route," to Brunnerton, and thence by way of Eeefton to Belgrove, or as near thereto as practicable ; such railway to be constructed and, when completed, to be maintained and worked in all respects under and subject to the provisions of the principal Act and the said Act and of any other Acts relating thereto, and also under and subject to the terms and conditions of this contract. 2. The said railway to be constructed, maintained, and worked under the provisions of this contract, and all other works in connection with the said railway which are provided for in this contract shall be well and faithfully constructed, of sound materials and of sufficient strength and durability, having regard to the nature of such works, upon plans, both general and detail, to be from time to time approvsd of by an engineer or engineers appointed for that purpose from time to time by the Governor (any one of whom is hereinafter referred to as " the engineer"), and so that the details shall as nearly as may be conform to the approved standard drawings in use on the New Zealand Government railways, or such modifications thereof as the engineer shall from time to time approve, and that the specifications shall accord as nearly as may be to the standard specifications of the Government of New Zealand for the time being used in respect of the construction of railways of a similar character having single lines of permanent-way, or as may be necessary for any particular work included in this contract; and such construction shall, in all things, be to the satisfaction of the engineer, it being the intent and meaning of this provision that all such plans and specifications, when approved by the engineer, or as the same may be altered or modified subject to his approval, shall form part of this contract as effectually as if the same had respectively been attached hereto at the date of the execution hereof : provided always that the grades on the line to be constructed shall not be steeper than 1 in 40 on the straight, with a sufficient flattening on curves to give equivalent haulage power, and that no curve shall be of a less radius than five chains. 3. All rolling-stock and plant to be from time to time used or employed upon the said railway or in connection therewith shall be of liko character and at least equal strength in all respects to the rolling-stock and plant in general use upon railways constructed by the Government of New Zealand, and so as to be sufficient both in quality and quantity for effectually carrying on the traffic 'on the said railway as may from time to time be requisite or necessary. 4. The contractors will, within twelve months from the date hereof, deposit in the Public Account of the colony, to a separate account, in such manner as the Colonial Treasurer for the time being may direct, the sum of £5,000, such deposit to be held as a guarantee for the performance, after the payment thereof, of the conditions of this contract, and the same to bear interest at the current rate for Government deposits in New Zealand, and to be forfeited and become the absolute property of the Queen in the event of the contractors failing to carry out this contract, but to be returned, together with all interest accruing due thereon as aforesaid, to the contractors as soon as permanent works on or connected with the said railway shall have been executed by them to the satisfaction of the engineer and to the value of £10,000 at the least. 5. The contractors will, within two years from the date of this contract, or within such extended period after the expiration of such two years as may be allowed under the powers hereinafter contained, expend a sum of not less than £150,000 in the construction and execution of permanent works under its provisions on the said railway, such works to be of a character, in the opinion of the engineer, that will enable some complete section or sections of the railway to be fit for traffic as early as possible thereafter. 6. The power conferred by the 48th section of the principal Act shall be deemed to extend to and include all works of every kind executed by or on behalf of the contractors under this contract, and all plant, rolling-stock, materials, and things which are or may be used, or are intended to be used, in or upon the said works. And, if at any time the Governor shall be advised that some addition, alteration, or repair is necessary or requisite to or upon the said railway or all or any of the works aforesaid, or to the rolling-stock, plant, and materials used or intended to be used thereon, then, for the purpose of more effectually carrying out this contract, he may, on behalf of the Queen, direct the engineer to take such steps as may be necessary to have such addition or alteration made or repair effected; and, upon delivery to the contractors at their office in Christchurch, or at the last-known place of abode or business of any of the contractors in Christchurch, of a notice in writing from the engineer specifying the nature and extent of the addition, alteration, or repair required, or the class and character of the rolling-stock, plant, or material to be supplied, the contractors shall cause the same to be made, executed, or supplied within the period specified in such notice, as the case may require. 7. Upon the construction of the said railway and upon its being opened for traffic the contractors shall, from time to time and at all times, use, work, and manage the said railway to the best advantage in all respects, and shall, on every week-day, cause at least one train for the conveyance of passengers and goods to be despatched each way along and upon the said railway, the time of arrival and departure of each such train at the several termini to be approved by the

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Governor from time to time under the powers hereinafter contained: Provided that the obligation to run such daily trains shall not be compulsory if at any time any part of the said line is unsafe or dangerous for traffic and the contractors are taking all necessary steps to render the same safe. The provisions of this clause shall also extend and apply to any complete section of the said railway open for traffic. 8. The contractor shall not at any time assign, charge, or dispose of this contract or any benefit or advantage thereof or thereunder, either at law or in equity, without the written consent of the Governor on behalf of the Queen first had and obtained; but this clause shall not be deemed to affect or interfere with or in anywise abridge the powers of borrowing given by the said Act: Provided that the Governor may at any time appoint any person, in the colony or elsewhere, for the purpose of consenting to any such assignment; and no such consent shall be arbitrarily withheld, either by the Governor or by any person so appointed as aforesaid. And, if the contractors shall assign or dispose of this contract with such consent first obtained as aforesaid, all liabilities of the original contractors named herein under this contract shall, upon such assignment being completed, absolutely cease and determine; but such liabilities shall be deemed to be transferred to the assignees of such original contractors in the same manner as if they had been named as the parties hereto of the second part. And this deed further witnesseth that, subject to the provisions of the said Act, and in consideration of the premisses, the Queen doth hereby covenant with the contractors in manner following, that is to say,— 9. So soon as the line is surveyed and marked out on the ground by the contractors the Queen will, with all convenient speed, after being requested in writing by the contractors so to do, and at their expense, put them into possession of all Crown lands then in the possession and at the disposal of the Governor of New Zealand or the Government of the colony, for the purposes of the construction of the said railway of the width and extent necessary for such construction, and of any Crown land adjacent thereto which may be available and in- such possession or at such disposal as aforesaid, which, in the opinion of the Engineer, may be required for side-cuttings, ballasting, spoilbanks, and road-approaches and road-diversions : Provided that nothing herein contained shall be deemed to require the Governor to cause possession of any land to be so given which is used for gold-mining purposes, or which may be subject to the terms of any special Act of the General Assembly affecting the same. And whereas, for the purpose of giving effect to sections 7 and 8 of the said Act, the several parties to these presents have consented and agreed to the following provisions :— Now, it is hereby further agreed between the Queen and the contractors — 10. That, as soon as conveniently may be after the execution of this contract, upon the application in writing of the contractors, the Governor in Council shall, under and in pursuance of the seventh section of the said Act, forthwith cause sufficient Crown lands then being in the possession of the Queen to be withdrawn from sale and set apart to be granted to the contractors, and to be dealt with in the manner .provided by the said Act. And that the selection of such land for the purposes of the said Act and of this contract shall, after the construction of the said railway, or of any completed section or sections of the same, be conducted and carried out as follows, that is to say, — (a.) For the purposes of such selection the estimated total cost of constructing the said railway shall be the sum of £2,500,000, the total length being estimated at 235 miles, of which said sum £1,500,000 is the estimated cost of that part of the said railway from Springfield to Brunnerton, and £1,000,000 the estimated cost of that part of the said railway from Brunnerton to Belgrove. (b.) For the purpose of such selection the several parts of the land to be set apart as aforesaid shall respectively be deemed to be of a value per acre to be calculated and ascertained as soon as conveniently may be after the execution of this contract, in the manner prescribed by subsection (3) of section 8 of the said Act, such total value to be £50 per centum of the total estimated cost of the said railway : Provided that no land shall be granted to the contractors at a less value than 10s. per acre, nor shall any land be included in such valuation which may, under the authority of the said Act, be granted to the company gratuitously for the construction of the permanent-way, or as sites for railway-stations, stores, or other buildings. (6 1.) For the purposes of such selection the Governor in Council hereby admits and agrees that all blocks of land to be surveyed under section 7 of the said Act shall be in the form of parallelograms, and shall have a frontage to the said line of railway of not less, in any case, than one-fifteenth of the depth of such block. (6 3.) And, further, that no such blocks shall be of such a depth as will carry them beyond the watershed nearest to the said line of railway of each of such several blocks. (b s.) The choice of alternate blocks of land surveyed under the provisions of this contract shall be conducted and made in the manner set forth in subsection (1) of section 8 of the said Act. (c.) For the purposes of such selection the value of all the lands to be ultimately granted to the contractors shall be ascertained in manner aforesaid, such valuation to be commenced as soon as possible after the payment of the sum of £5,000 mentioned in the 4th clause hereof, upon the written request of the contractors; and the same shall be continued thereafter with all convenient speed until completed. (d.) For the purposes of the said selection the said railway shall be deemed to be divided into the several sections, numbered from 1 to 35, shown, in figures coloured red and in circles, upon the said map marked " A," hereunto annexed; and when and so soon as the Minister for Public Works for the time being shall be satisfied that the said railway, or

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any section thereof which can be worked for public traffic, has been completed and is fit for such traffic in accordance with the said Act, the contractors shall be at liberty to select, and shall receive, a grant for so much of the said lands as, looking to the valuation thereof, to be made as aforesaid, they may be entitled to in respect of the number of miles of the said railway comprised in such completed section ; and, if there shall be any difference or dispute as to the area the contractors are entitled to select, the decision of the Governor shall be binding and conclusive on the contractors, and every such selection shall be subject to the approval of the Governor. (e.) In case it shall be necessary to take advantage of the provisions of subsection (2) of section 8 of the said Act, then the Crown lands indicated on the map hereto annexed, marked "B," by red lines, and marked " Lands withdrawn from sale," or so much thereof as shall be necessary for the purpose of giving effect to the said Act and this contract, shall be set aside in the manner hereinbefore provided, the Governor of New Zealand, with the advice of the Executive Council, being of opinion (as appears by the execution of these presents) that the lands so indicated as aforesaid will be specially benefited by the construction of the said railway. (/.) All the preceding provisions of this contract applicable to the granting of land by way of concession shall extend and apply accordingly, subject, however, to the express provisions of the said Act. 11. Every grant made under clause 10 of this contract shall be subject to the provisions of the said Act respecting the terms and conditions upon which grants or concessions of Crown lands may be made to a company thereunder. 12. All by-laws and regulations made under the principal Act or any other Act for the conduct of traffic on the said railway, and for the working and management thereof, shall from time to time be subject to approval by the Governor ; and, subject thereto, the maximum tolls, fares, rates, and rents to be charged by the contractors for the carriage upon the said railway of passengers, produce, animals, goods, merchandise, articles, matters, and things, and for the storage of goods in any of the contractors' sheds or warehouses, shall not exceed the scale for the time being in force upon the Wellington to Masterton Railway, with 25 per centum added thereto ; and, until such last-mentioned scale shall have been altered by the Minister pursuant to the power vested in him in that behalf, shall not exceed the scale for tho said railway set forth in the schedule hereto attached, with 25 per oentum added thereto : 13. Provided that the contractors shall be at liberty at any time, in the manner prescribed by the said Act, to reduce the said tolls, fares, rates, and rents, or any of them: 14. Provided, further, that, if at any time the Minister for Public "Works for the time being for New Zealand shall be satisfied that the said tolls, fares, rates, and rents, or any of them, are excessive, ho may, by giving one calendar month's notice in writing to the contractors, require the tolls, faros, rates, and rents to be reduced as stated in such notice, and, at the expiration of such month's notice, the contractors shall make the reduction accordingly. 15. And it is agreed that, if tho contractors shall not be able to construct and finish the said railways within the period hereinbefore limited in that behalf, or if they shall not, within the period of two years, have expended £150,000, as hereinbefore provided, the Governor in Council may, by writing indorsed on these presents, if satisfied that the delay has not been occasioned by the wilful default or neglect of the contractors, extend the said periods or either of them for such time as he shall deem reasonable, and any such extension may be made although the period to be extended has not yet expired, or may be made after such expiration. 16. And it is hereby further agreed that the power of purchase conferred upon the Governor by the said Act may be exercised at any time after tho expiration of ton years from the completion of the said railway, provided that, if, under the provisions of tho principal Act or the said Act, or under this contract, the Governor shall be entitled to take possession of the lino of railway or any part thereof, then that, in lieu of exercising such right of taking possession, he may, if he thinks fit, exercise the right to purchase the said railway, although the said period of ten years may not have expired, or the said railway may not have boen wholly constructed; and such right shall be doomed to arise on his giving six calendar months' notice of his intention to the contractors to exercise this right; and thereupon, and without any further notice, as prescribed in the principal Act, the price to bo paid for the said railway shall be ascertained and determined as provided by the principal Act, except that section 118 thereof shall not apply. 17. If from any cause the sum of £5,000, as provided by the 4th section of this contract, shall not be deposited as aforesaid within the time specified, this contract shall become liable to be rescinded and to be made null and void and of no effect, at tho instance of either of the parties hereto; but the Queen shall not be entitled to compel payment of such deposit or to recover any moneys or penalties either as damages or compensation, or on any other account, from the contractors, in consequence of such avoidance of this contract, nor shall tho contractors incur any liability by reason thereof, or of their execution of these presents : Provided that, after such deposit has been made, both of the parties hereto shall have all tho rights and remedies legally or equitably attaching to these presents. 18. Tho word " Governor," in this contract, has the like meaning as is attached thereto by " The Interpretation Act, 1878." Any notice required to bo given to the contractors under the principal Act or the said Act, or under these presents, may be given to any of the contractors, or left for them at the last-known place of abode or business of any of thorn in Christchurch. And the term " Company," where used in the said Act, shall, in respect of any power, right, or duty to be exercised or performed by the Governor in Council, or the Governor, or the contractors, extend to and apply to the contractors under these presents as effectually as if they were a company within the meaning of the said Acts hereinbefore mentioned or either of them.

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19. And it is hereby lastly agreed that, in case any provision of this contract as to the 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 the next ensuing session thereof, the contractors shall not have any claim or demand upon or against the Queen or the Government of the Colony of New Zealand for any loss or damage by reason of such modification or in consequence of the operation of any such resolution ; and any property, estate, right, or interest that may have been acquired by the contractors under or by virtue of these presents shall, to the extent and in the manner specified in any such resolution, be and be deemed to have again become the property of the Queen or to revest in the Queen, as the case may require. And, further, that nothing contained in this contract shall be deemed in any way to abridge, control, modify, or supersede any power, remedy, or authority which under the principal Act or the said Act is vested in or may be exercised by the Governor in Council, or the Governor, or the Minister for Public Works. In witness whereof these presents have been signed by Sir William Francis Drummond Jervois, the Governor of the said colony, and the public seal of the colony hath been hereunto also affixed; and the said parties hereto, of the second part, have hereunto also set their hands and seals on the day and year first hereinbefore written. Signed, sealed, and delivered by the said William Chrystall, W. Chrystall. ° John Tucker Ford, John Thomas Matson, Thomas John Tucker Fobd. Shailer Weston, George Hart, and Charles Yates John T. Matson. Fell, in the presence of— T. S. Weston. T. De Eenzy Haeman, Geoege Haet. Solicitor, Christchurch, N.Z. J. H. Cock. Signed, sealed, and delivered by the said John Honeycomb Chables Y. Fell. Cock, Henry Douglas Jackson, Albert Pitt, and James H. D. Jackson. Sclanders, in the presence of— Albeet Pitt. Philip Topliss, James Solandees. Law-clerk, Nelson, N.Z.

SCHEDULE OF RATES. The maximum rates proposed to be authorized on the East and West Coast Railway of the Middle Island are to be calculated at a rate of 25 per centum above those hereunder.

Grain— Grain of all kinds, flour, green horse-feed, per ton per mile, minimum weight 2 tons 0 0 3 In smaller quantities, as merchandise, a terminal charge will be made, not exceeding per ton ■ • • . • ■ ■ • ■ • ■ • • ■ • • ... 0 3 0 Mineral and Animal Manures — Per ton per mile, minimum quantity, 4 tons ... ... ... ...0 0 2$ Minimum charges, coal, for 3 miles and under ... ... ... ...016 Minimum charges, coal, over 3 miles and not exceeding 15 miles ... ... 0 2 6 Minimum charges, other minerals ... ... ... ... ...013 Small lots, in packages or bags, as merchandise Every loading or unloading done by the company, per ton ... ... ... 0 1 6

For any Distance not exceeding 10 Miles. Per Mile after first 10 Miles. s. d. £ s. a. Animals — Horses, one only Horses, each additional one belonging to same owner ... Cattle, one only Cattle, each additional one belonging to same owner Calves (one year old and under), one only ... Calves, each additional one belonging to same owner Sheep, goats, pigs, one only Sheep, goats, pigs, each additional one belonging to same owner Bheep, goats, pigs, and calves, in large lots per truck, loaded and unloaded by owner, who takes all responsibility and risk Carriages, &c. — Carriages, two-wheeled Carriages, four-wheeled Drays Goods and Merchandise — Per ton per mile, minimum weight, 2 cwt. ... Minimum charge In addition to above charges, a terminal charge will be made not exceeding, per ton 10 0 7 6 7 6 5 0 4 0 2 0 4 0 2 0 15 0 0 0 0 0 0 0 0 0 0 0 3 o % 0 2| 0 2 0 \\ 0 Of 0 1* 0 Of 1 0 10 0 12 6 12 6 0 0 0 0 4 0 5 0 5 1 0 0 0 7 0 3 0

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SCHEDULE OF BATES— continued. Wool — £ s . a. Undumped, per bale per mile (bale uot to exceed 4cwt.) ... ... ... 0 0 1-J Undumped, for each bale exceeding 4cwt., extra per mile ... ... ... 0 0 0-J Undumped, minimum charge per bale ... ... ... ...010 Double-dumped, per bale, per mile (bale not to exceed Bcwt.) ... ... 0 0 2-J-Double-dumped, for each bale exceeding Bcwt., extra per mile ... ... 0 0 0J Double-dumped, minimum charge per bale ... ... ... ...016 Each loading or unloading done by the company, per bale, undumped... ... 0 0 4 Each loading or unloading done by the company, per bale, dumped ... ... 0 0 8 Timber — Sawn timber, per 100ft. superficial, per mile ... ... ... ... 0 0 Of Sawn timber, minimum charge per 100ft. superficial ... ... ...007 Heavy timber, per 100ft. superficial, per mile ... ... ... ...001 Heavy timber, minimum charge per 100ft. superficial ... ... ...010 Australian timber. Hate and a half for each loading or unloading done by the company, per 100ft. superficial ... ... ... ... ...004 A truck load is computed at 5 tons. A fraction of a mile is counted as a mile. A truck of firewood must not exceed 3 tons. Passengers — First class, per mile ... ... ... ... ... ... 0 0 3-J Second class, per mile ... ... ... ... ... ... 0 0 2-J Minimum charge— First class ... ... ... ... ... ... ... 0 0 6 Second class... ... .. ... ... ... ...004 Return fares equal one and one-half single fares. A fraction of a mile is counted as a mile. Notice is also hereby given that a maximum rent or charge to be made for the storage of goods, produce, or merchandise, shall be as follows: — Storage — On all goods not removed within twelve working hours of their arrival, per ton per day ... ... ... ... ... ...020 Demurrage — On all trucks not unloaded by the consignees within four working hours of their arrival, per truck per day ... ... ... ...100

J. H. Cock. James Sclanders. C. Y. Fell. W. Chrystall. H. D. Jackson. J. T. Matson. Albert Pitt. T. S. Weston. John Tucker Ford. George Hart.

By Authority: Geobgb Didsbuey, Government Printer, Wellington.—lBBs.