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E.—4b

No. 23. The Hon. the Minister for Public Woeks to His Honor the Superintendent, Otago. (Telegram.) "Wellington, 6th February, 1875. In reply to your telegrams re proposed sale of rails to the Peninsula and Ocean Beach Eailway Company, in explanation of supposed delay, I have to state the Government have been making inquiries as to what rails can be handed over to the Company, but, owing to the absence of Mr. Blair from Dunedin, they have not received the necessary information. In the meantime, the Company have, through their Secretary, given notice, under the Act, for the inspection of the railway for passenger traffic before the 23rd March. Before completing the proposed sale, and making any arrangement for the Company to join on to and use the main line, the Government must have the proposals of the Company, including the plans and proposed Bill, submitted for approval. You will see the absolute necessity for this, because of the many conditions affecting public policy which require to be inserted in every private Eailway Act, such as, for instance, the terms on which the Government may take over the line, if it sees fit to do so at any time. These matters are of so much importance that they cannot be decided without due consideration; and the Company have no cause to complain, seeing that they have not taken any steps whatever, previously to their commencing their operations, to put themselves in a legal position to construct their line, and have further commenced work, acting as if they had powers which even the Government itself does not possess. Edwaed Eichaedson. His Honor James Macandrew, Dunedin.

No. 24. His Honor the Superintendent, Otago, to the Hon. the Colonial Seceetabt. Province of Otago, New Zealand, Sie, — Superintendent's Office, Dunedin, sth February, 1875. I have the honor to acknowledge the receipt of your letter of 28th Januai'y, relative to the Peninsula and Ocean Beach Eailway. As the questien raised by you involves considerations of much magnitude and importance, as bearing upon the interests of those districts which are prepared to construct railways for themselves, I shall do myself the honor shortly to reply to your letter at some length. In the meantime I have to state that a copy of your letter was submitted to the Peninsula and Ocean Beach Railway Company, and enclosed herewith is their reply, which I trust will result in their obtaining the rails and fastenings referred to. I have, &c, J. Macandeew, The Hon. the Colonial Secretary, Wellington. Superintendent of Otago.

Enclosure to No. 24. The Secretary, Ocean Beach Eailway Company, to His Honor the Sijpeeintendent, Otago. Sik, — Temple Chambers, Dunedin, Ist February, 1875. I have the honor to acknowledge the receipt of a copy of a letter from the Hon. the Colonial Secretary to your Honor, dated the 28th ult., relative to the Dunedin, Peninsula, and Ocean Beach Eailway. I beg to inform your Honor that my Directors, having taken into consideration the letter above referred to, have directed me to convey to your Honor the information that the Company pledges itself to take the earliest opportunity to place itself in every respect in the most complete legal position that it possibly can, both with the Provincial and Colonial Legislature. I have, therefore, to solicit that your Honor will notify to the Hon. the Colonial Secretary, the intention of the Dunedin, Peninsula, and Ocean Beach Eailway Company (Limited), to fulfil all the obligations imposed on it by the Colonial Executive ; and I have also to solicit that your Honor will be good, enough to telegraph to the Hon. the Colonial Secretary, so that further delay may be avoided. Eequesting that the rails and fastenings asked for may be delivered at once, in order to enable the Company to proceed with its undertaking, I have, &c, J. B. Beadshaw, Int. Sec. D. P. and 0. B. E. Co. His Honor James Macandrew, Esq., Superintendent of the Province of Otago, Dunedin.

No. 25. Mr. James Smith to the Hon. W. H. Eeynolds. (Telegrams.) Dunedin, Bth February, 1875. Gbeat surprise and disappointment felt that your influence as a Minister cannot accomplish so small an object as the purchase of a few tons of rails. The railway could easily be opened for March Races if the rails were delivered at once. The Hon. W. H. Eeynolds. James Smith.