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Workshops, Napier. —Land has been acquired on which to erect these. The work of formation will be commenced almost immediately, and the building of the workshops has been let by contract. Working Railways, Napier to Kopua. —Two private sidings have been laid down, and a further portion of fencing erected. It is complete on both sides up to 20 miles 65 chains, beyond which only portions of fence are erected in detached pieces. The question of completing the fencing throughout is now under consideration. < Patea-Manawatu Railway. Brunswick Contract, Plate-laying. —By this the line has been extended northwards to Kai-iwi, 9 miles 15 chains. The completion of this contract took place the 22nd May, and a few weeks after it was opened for traffic. Kai-iwi and Brunswick Contract for Station Buildings. —This contract was for the various station buildings and water-supply, &c, for the above, and was completed in due time for the opening. Waitotara Contract (from Kai-iwi to Waitotara Station, 12 miles 70 chains, including formation and plate-laying). —The time for completion of this expires the sth December, 1879, and about threefourths of the earthworks are completed. The masonry culverts and pipes are completed, three-filths of the fencing erected, most of the bridge timber delivered, and some portions of the bridges erected. About 200 men are employed on this contract. Wanganui Wharf and Reclamation Contract. —This was let by contract on the 16th April, and the contract time will expire 16th April, 1880. The contractor is preparing plant and material. Working Railways. —Six private sidings have been laid, and nine other sidings, to increase the facilities for traffic. Foxton Wharf has been extended 160 feet, and numerous additions to station buildings have been made, giving increased accommodation. Additional water-supply has also been provided at several of the stations. Surveys: Waitotara-Waverley.- —The survey of the railway line from Waitotara to Waverley, 7 miles 5 chains, has been completed, and is now being plotted and the work prepared for contract. The latter work, however, has been delayed by the survey of an alternative line proposed for the purpose of bringing the Waitotara Station nearer to the present small centre of population. The result of the survey is that the alternative line will be 18f chains longer, having a grade of 1 in 35 as against 1 in 81"7, and that it will cost £3,000 more than the line originally laid out. Bunnythorpe to Upper End of Manawatu Gorge (11 miles 70 chains). —This has been completed up to 7 miles 50 chains, and the remainder is in progress in the field. Waitara-Patea Railway. Ngatoro Section (8 miles 60 chains to 13 miles 40 chains). —The permanent way has been laid on this section by contract, and station buildings are now in progress. Waipuku, Section (13 miles 40 chains to 17 miles 52 chains). —The formation, logging, and timber culverts upon this section have been done by petty contracts and day labour, and the bridges and masonry culverts by contract, as well as the laying of permanent way, which is now complete. Stratford Section (17 miles 52 chains to 22 miles 20 chains). —This contract was begun in January last, and the contract time expires on the 11th July. The work includes permanent way and station buildings. Strenuous efforts are being made to complete the work, which it is expected will be finished about the middle of August. Workshops, Sentry Hill. —The erection of these is now being advertised for contract. Surveys. —South of Stratford Section—that is, from 22 miles 40 chains to 29 miles —the line has been levelled and pegged out for contract plans, which are now being prepared; and from 29 miles (which is 30 chains north of Mangawhero River) to Normanby, 36 miles 40 chains, a line has been cut, and is now being pegged out for contract plans. Branch to Carlyle (3 miles 26 chains). —A preliminary survey has been made of this branch. Working Railways. —Two sixth-class stations, one coal store, and 136 chains of fencing have been erected. Wellington-Masterton Railway. Permanent Way, Kaitoke-Featherston (27 miles to 45 miles). —This work, which included the laying of 18 miles of permanent way, and the formation and permanent way at the Summit, Cross's Creek, and Pigeon Bush Stations, and permanent way at Featherston Station, was carried out by day labour under the supervision of the Resident Engineer, and was opened for public traffic on the 16th October, IS7B. The working of the incline, which forms part of this section, by means of the " Fell " engines, has proved, as was expected, quite successful. Featherston Station Contract (43 miles 68 chains to 45 miles). —This included levelling the ground for Featherston Station, fencing line and yard, erection of passenger station buildings, &c, also goods shed and engine shed, and was completed so that the line could be opened for traffic as above stated, but was not finally taken over till the 28th December. Summit Water-Supply and Station Buildings Contract. —This included dam and pipe services and tanks, two-stall engine shed, and two cottages, and was finished the 22nd September, 1878. Cross's Creek Station Buildings Contract. —Completed by end of October; includes four-stall engine shed, coal store, two cottages, dam and pipe service and tanks, besides blacksmiths' shop and other sundries. Station Buildings Contracts. —No. 1 included four-roomed house on Summit, two cottages at Cross's Creek, station-house, &c, at Pigeon Bush, and cattle-pens at Featherston, and was completed January, 1879. Contract No. 2 included stationmaster's house at Woodside, and a cottage at Fernside, finished in April. Another contract, finished in April, was for a stationmaster's house at Carterton, to be used as an engineer's office, and head-quarters for Resident Engineer.

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