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I.—2a

You will see that it is very desirable I should possess some definite information upon this point, in order to satisfy capitalists as to the terms upon which they will be invited to advance their money. I should therefore esteem it a great favour to be put in possession of the views of the Government on this point as early as possible. The Hon. the Minister for Public Works. J. Kilgour, Mayor.

Mr. J. T. Caee, Resident Engineer, to the Engineee-in-Chief. Memorandum for the Engineer-in-Chief. Theee is ballast on the west bank of the AVaikato River where the line crosses it. Metal for the road is being taken from there; this is at 1 mile. The next place where I think ballast will be found is at 16 miles, at a gorge called The Rocks, the sides of which seem in places to be composed of a sort of shell limestone rock, to judge by the large boulders lying about there. There is do more ballast along the line as far as surveyed, unless some be found in a low range of hills crossed by the line at 25 miles 60 chains. I found a few odd pieces of scoria lying about on the surface there, so that there is a possibility of finding some in the hill. There is no timber along the line with the exception of a narrow strip of bush along the Waitoa River, which we cross at about 24 miles 60 chains, and which contains a little totara and matai, but I believe it is all in the hands of private people and Natives. Sufficient timber might perhaps be obtained from here for the bridges over the Waitoa at about 24 miles 60 chains, the AVaihekau at about 25 miles 30 chains, and the Piraunui at about 27 miles 5 chains. For the AVaikato Bridge, at about 1 mile 5 chains, and the Piako, at about 18 miles 60 chains, timber would best be got, I think, from Auckland by rail to Hamilton, and then by road to respective sites; for the AVaiharakeke at 20 miles 76 chains, either the same way as the former, or by steamer from Shortland mills to landing-place at 30 miles 43 chains, and thence by road to site, whichever would bo cheapest. Sleepers would best all be brought from the Auckland-Hamilton Railway. Kopua, 20th March, 1878. J. T. Caee, Resident Engineer.

Mr. J. Knowles to the Mayoe, Thames. Sic,— Wellington, 22nd March, 1878. I am desired by the Hon. the Minister for Public AVorks to acknowledge the receipt of your letter of the Bth instant relative to the proposed railway line between the Thames and AVaikato, and to inform you that the same will receive the early consideration of the Government. J. Kilgour, Esq. J. Knowles.

Dr. J. Kilgotje to the Hon. the Minister for Public AVoeks. (Telegram.) Grahamstown, 24th March, 1878. Am urged on all hands to take action. Cannot do so in ignorance of Government's views as to Thames and AVaikato Railway. Would therefore respectfully urge answer to my letter of Bth instant as soon as possible, yours of 22nd March not giving any information. J. Kilgotje, Mayor.

The Hon. J. Macandeew to Dr. J. Kilgoue. (Telegram No. 956.) Government Buildings, AVellington, 26th March, 1878. Youe letter was under consideration by Cabinet; the Government have no power to construct the Thames and AVaikato line themselves, nor have they any power to depart from the terms of tho District Railways Act so as to increase the guarantee. Regretting they are unable to assist you in either of the above ways, they will be willing to introduce a special Act next session, authorizing a company to construct the line under certain conditions to be agreed to. J. Macandeew.

The Hon. J. Macandeew to Dr. J. Kilgoue. (Telegram.) AVellington, 24th April, 1878. The only terms on which a company can undertake construction of railway at present are those embodied in "District Railways Act, 1877," of which I presume you have a copy. It is impossible to say now what amendments may be made next session.

J. Macandrew.

Dr. J. Kilgoue to the Hon. J. Macandeew. (Telegram.) _ Grahamstown, 25th April, 1878. Re Thames and Waikato Railway. You misunderstand my meaning. Referring to your telegram to me of 26th of March, you there say, "They [the Government] will be willing to introduce a special Act next session authorizing a company to construct the line under certain conditions to be agreed to." I ask you now to indicate, if you can do so, the probable tenor of these conditions, as the conference of the local Boards interested in this matter takes place to-morrow. James Kilgoue.