A.—No. 6.

42

PAPERS RELATING TO

Appendix E

Railways.

The Contractors are at their own cost to maintain the railway for twelve months after completion, unless any damage shall, in the opinion of the Government Engineer, have arisen from storms, floods, insufficiency of design, war, or disturbance in the Colony; in which case, whenever the same may happen, the cost of making good such damage is to be defrayed by the Contractors, and added to the settled cost of the railway. Any further or altered works which the Government may afterwards require are to be executed by the Contractors according to plans, &c, to be prepared or approved by the Government Engineer, and the cost thereof is also to be added to the settled cost. The Contractors are to provide all such plant, and according to such drawings and specifications, as the Government shall direct, and place the same on the railways seven days before the time appointed for opening ; and afterwards provide such further plant, and according to such drawings and specifications as the Government may direct, all of which plant is to be to the satisfaction of the Government Engineer. When the description, drawings, Ac, of the plant have been decided upon, the Contractors are to obtain tenders from not less than six respectable and responsible persons previously approved by an officer of the Government in England, such tenders to be based upon the terms of a cash payment, and for delivery and approval in England ; and the Contractors and Government officer in England are then, having regard to the tenders, to agree as to the cost to be incurred in obtaining the plant, failing which the same is to be settled by arbitration. This cost, with all charges and expenses of approval, transport in England, shipment, freight, insurance, landing, and transport, and erecting and fitting in the Colony, with five per cent, thereon by way of Contractors' profit, is to be added to the settled cost of the railways. Any commission, discount, allowance, or proportion of profit allowed to the Contractors by the manufacturers of the plant is to be deducted from the cost of plant before being so included. The Contractors are out of their own moneys to pay for all manufactured materials and plant obtained in England, and any costs the Government may incur of approving the plant in England. A proper capital account of each railway distinguishing therein the cost of each section is to be kept by the Contractors, and the same is to be from time to time submitted to and approved by the Government who may disallow any items subject to a reference if the disallowances exceed £500. The Contractors are to maintain the railways in thorough efficient working order, and run not less than two trains each way daily, unless the Government otherwise direct; and such further number of trains as the Government may require, charging only fares and rates within limits to be fixed by the Governor in Council. The question as to running more than two trains a day may be referred, and as may also the question of rates and fares when the Government have to pay nothing under their guarantee. A proper revenue account of each railway is to be kept by the Contractors, which is to be submitted half-yearly to the Government for approval, and the Government may disallow any items subject to a reference if the disallowances on any account exceed £500. All fares tolls and freights are to be collected by the Contractors who are to furnish the Government with all such detailed accounts and statements as may be required, and the Government may at all times inspect the Contractors' books of account and vouchers relating to the receipts and expenditure generally, and take copies of the same. The trains are to be run at a speed including stoppages of not less than ten miles an hour on railways costing under £3,000 a mile, fifteen miles an hour on those costing £4,000 a mile, and twen miles an hour on those costing over that amount, except where the Government consider the gradients or curves do not justify so high a rate of speed. The Members of the General Assembly and Provincial Councils are to be conveyed in the ordinary trains at 25 per cent, below ordinary fares and rates; and in the event of war or civil commotion, the whole resources of the railways are to be placed at the disposal of the Government at cost price. The Government may enter upon the railways to lay down or enlarge existing lines of telegraph, and erect or enlarge stations, and may use such lines and stations without charge, but are not to obstruct the traffic in laying down and erecting the lines, &c. If the Contractors become bankrupt, &c, or fail to complete the railways in due time, or fail to proceed with due diligence after notice, the Government, upon certain certificates, may give notice and determine the Contract as to any sections in respect of which the Contract is not properly observed; but in case of non-completion in due time, three months' notice is to be given, and not to take effect if the railways are completed within that time. Upon such determination the Government may or not, as they think fit, take possession of all or any of the sections referred to in the notice, and also of any other completed sections which it may be desirable to take possession of and use in connection with any other section, and all the plant belonging thereto; in which case the Contract is also to be determined in respect of such completed section and the plant belonging thereto. The Government to accept all plant then in transitu or in course of construction for the sections taken possession of, and may take possession of all the Contractors' working plant, materials, and chattels thereon, and the Contractors are to deliver up all plans, &c, relating to the same. Upon any such determination of the Contract, the provisions of the Contract with respect to guarantee of dividend, division of profits, and purchase, are only to apply to the section or sections of a railway then completed, and opened for traffic, and not taken possession of, and the plant belonging thereto. If the Contract is determined by reason of the bankruptcy, &c, of the Contractors, their assignees or trustees may, within twelve months, repay to the Government any moneys expended, and enter into proper contracts with the Government for completing the railways and providing the plant, in which case the Government are to restore possession of the sections and plant taken possession of. If the Contractors make default in maintaining a railway or providing plant and keeping the same in good working order, or in properly working and using the railway, the Government may direct the necessary repairs to be done and plant supplied, and replace any plant worn out, and enter and use and work the railway, and the Contractors are to repay all moneys expended. If within six months the Government are recouped the moneys expended, the Contractors are to be reinstated.