B.—No. 3a.

No. 13. MESSES. M'KENZIK AUD CO., DUNEDIN TO THE HOX. MA.JOE EICHARDSON. Dunedin, lGth February, 1865. Sir,— "We have the honor of addressing you with reference to our recent contracts with the Southland Government. As you are doubtlessly aware we had the erection of two piers for that Government, and that when we had nearly finished the works, we found the Government could not or would not pay. We then arranged with the then Superintendent, S. E. Menzies, Esq., to finish the contracts with our own means, with the understanding that we were to be paid in full so soon as the Province received assistance from the General Government, which was then expected, and afterwards received. Under this arrangement we duly completed our contracts, and on the return from Auckland of Mr. Menzies, he desired the Provincial Treasurer to pay us £5000 on account, but to our surprise, Capt. Ellen, the General Government's agent, declined, stating that his instructions were, "to pay on unfinished contracts only." Since we finished our contracts we have been led to understand that some £60,000 has been advanced and paid by the General Government, on account of Public Works in Southland, while our claim still remains unpaid. This most extraordinary proceeding we beg to lay before you, and ask for an immediate remedy. As we purpose visiting Southland by the "Airedale" we will doubtless meet you there, when we trust the foregoing will be fully gone into, and a settlement arrived at. We have, &c, James M'Kenzie & Co. To the Honorable the Post-Master Genera], of Otago.

Enclosure No. 13. MOKOMOKO PIER.

24

PAPERS RELATIVE TO THE

Sub-Enclosure .No. 3 ot Memorandum. Proposed Appropriation of Loan of £170,000 — To pay all Outstanding Accounts, including Contracts, Salaries, [tradesmen's Bills, <fcc, due 31st January, 1865, on B. H. & I. Railway Interest on " £ s. d. £ 8. cl 24,228 1,938 0 0 0 0 26,166 0 0 Do. on Oreti llaihvay Interest on do. 7,942 632 0 0 0 (i 8,574 0 0 Do. on General Revenue ... To pay Town Board Overdraft at Bank of New Zealand, under guarantee of Provincial Government ... To pay Balance uncovered by Debentures held by Bank of New South Wales (value estimated at par) ... Do. do. Bank of Otago Interest on Bank Overdrafts 16,773 10,500 0 0 0 0 7,2G6 28,980 6,400 0 0 0 0 0 0 69,919 0 0 General Government Advance Interest on do. 23,163 691 0 0 0 0 28,867 0 0 Interest and Sinking Fund on Loans already issued to let July, 1865 37,700 0 0 £166,216 0 0

Payment a. Money Retained. To be paid on works already completed. Required to complete. Totals. £ s. d. £ s. d. £ 8. d. I £ 8. (1 'ontract Work and Extra* 14,143 3 1 2,273 12 4 7,318 10 « 23,735 5