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8. Payments to the company of the charges and allowances due to it, after deducting all the expenses chargeable against the company as denned hereinbefore, will be made four-weekly, due time being allowed for compiling and auditing the accounts ; and, provided that the expenses so chargeable against tho company exceed the receipts, the excess of such expenses above the receipts shall be refunded to the Government by the company for each four-weekly period, within fourteen days from date of notice in writing given by the Minister for Public Works to the chairman of the company. 9. The company's officers will render all accounts, both for the company's local traffic and traffic interchanged in the form and manner prescribed for the New Zealand Railways. All moneys collected by them will be paid into the Public Account. 10. The accounts shall be open to the inspection of the company, and such statistical information as io wanted may bo obtained by the company upon payment of the clerical expense involved in compiling it. 11. The company will run a train three times a week each way over the New Zealand Railways between Elbow and Kingston. Tho Minister will pay the company for this service the sum of £12 per week. 12. The company's officers, while running on the New Zealand Railways, will be subject in every respect to the rales, regulations, and by-laws in force at any time on the same, and shall render such returns as may be required by them. 13. Upon application in writing to the General Manager of the New Zealand Railways, Dunedin, by the company's manager, the former may, at his option, permit the company to run a special train, consisting of the company's engine, one carriage, and a van, on the New Zealand Railways south of Dunedin, tho use of such special train to be confined exclusively to the company's directors and manager. A charge of Is. per mile will be made by the Government for the use of their line for each mile run. The General Manager of the Now Zealand Railways may, if he thinks fit, put on a driver and a guard to work the " special," and charge the company with the cost of their wages. The General Manager of the New Zealand Railways reserves to himself the right to cancel this condition at any time. 14. This agreement shall commence on the 10th day of December, 1882, and shall remain in force for twelve months, but it may be terminated at any time by one month's notice in writing by either party. 15. The company to pay all claims arising from damage to or loss of goods and parcels, and all claims for personal damages, which occur on the company's line. 10. Should the company neglect or refuse to fulfil any of the conditions hereinbefore stipulated, the Minister may, without further process or notice, cease to work the line, and the company shall have no claim for compensation or damages on account of such stoppage, or on account of any action arising therefrom. J. P. Maxwell, 17th April, 1883. General Manager, New Zealand Railways. R. H. Leary, 17th April, 1883. Secretary, Waimea Plains Railway Company. Schedule. —The following rates will be charged per mile upon the Waimea Railway Company's line on through goods : ClassesiA, B, C, D, per ton, 9d. ; Class E, per ton, 4d. ; Classes N, P, per ton, 3d. ; wool (undumped) per bale ljd. ; timber, per 100 superficial feet, Id. ; Classes P, M, per truck, 9d.; double-floor trucks, rate and a half Class L, per truck, Is. For local traffic on the company's line, and between the terminal Government station and the company's stations, tho minimum rate will not be less than the classified rates. Addenda. —Memorandum of arrangements for interchange of traffic between the Waimea Plains Railway and the New Zealand Railways, and tho running of the company's trains between Elbow and Kingston. Addenda to agreement :To come into operation from the 28th April, 1883. Division of charges will bo made between the New Zealand Railways and the company for returned empties, carts, drays, and small lots of cattle, sheep, goats, and pigs, proportionately to mileage Small lots of goods will be booked to the junction stations, and rebooked on tho company's line. J. P. Maxwell, 17th April, 1883. General Manager, Now Zealand Railways. R. H. Leary, 17th April, 1883. Secretary, Waimea Plains Railway Company.

The Secretary, Waimea Plains Railway Company, to the General Manager, New Zealand Railways. Sir, — The Waimea Plains Railway Company (Limited), 13th December, 1883. Referring to the agreement, dated 17th April, 1883, between this company and the Government for interchange of traffic and for running the company's trains to Kingston, 1 am instructed to give you notice that this company cannot see its way to renew the agreement which expired on the 10th instant. It is, however, not the intention of the company to take tho slightest advantage of the fact that the agreement has expired, but it will continue to run as heretofore for a reasonable time, so as to allow the department to mako other arrangements, 1 am further instructed to assure you that the discontinuance of the arrangement has been decided upon after careful consideration by my directors entirely in the interests of this company, and not from any fault or misunderstanding with the deportment under your' control; on the contrary they beg to acknowledge that during the continuance of the agreement nothing but the most cordial co-operation and courtesy has been extended boch by yourself and the officers of your department. X have, &c, The General Manager, New Zealand Railways. R. H. Leary, Secretary.

The General Manager, New Zealand Railways, to the Secretary, Waimca Plains Railway Company. Sik,— Dunedin, 17th December, 1883. I have the honour, by direction of the Minister for Public Works, to inform you that in compliance with the request made by you in your letter to me of the 13th instant, arrangements have been made to terminate the temporary operation of tho agreement between your company and the Government which expired on the 10th instant. The suspension will take place on the 31st instant. I enclose for your information a copy of the circular issued to statiomnastcrs, and further a copy of the special instructions issued to the stationmasters at Gore and Elbow, which embodies all the conditions necessary for enabling you to work your trains from tho Government stations. This will only come into operation upon receipt of a formal intimation from you acquiescing in the terms on behalf of the company as a temporary measure, to be terminated upon a month's notice in writing on either side. Should you not see your way to accepting the terms offered, the circular only will operate, and all further connection with your company will then cease. The very brief notice given to me of your desire to terminate the agreement, and the verbal intimation that you wished a cessation of the present system of working before tho commencement of the year, has necessitated my issuing the instructions immediately without further discussing them with you personally. The public will be notified by advertisement of tho expiration of the arrangement between the company and the Government. I have to thank you for the intimation conveyed by you that the company recognizes that the Government officers have co-operated to your satisfaction, and I have also to thank your directors for tho ready co-operation they have shown in dealing with tho business which has from time to time been transacted with the company. I have, &c, J. P. Maxwell, General Manager, New Zealand Railways. The Secretary, Wahnea Plains Railway Company, Dunedin.