D.— 2a

2

Enclosure 1 in No. 1. (Copy of telegram.) Wellington, 19th May, 1888. Does Company mean if steep grade approved that they will reduce land-grant by amount saving thus effected in cost line from beginning to end of deviation. The Agent-General, London. H. A. Atkinson. Enclosure 2 in No. 1. (Copy of telegram.) • London, 19th May, 1888. Midland.—No ; their hypothesis was that Abt line, if found practicable and approved, might make saving between quarter of a million and £400,000 in construction and equipment entire railway Springfield Belgrove. Thereupon I insisted land-grant must proportionately reduced. The Premier, New Zealand. F. D. Bell. Enclosure 3 in No. 1. Proposed Amendments in Clauses (Midland Contract). Clause 4.—Add the following proviso: "Provided also that the Company may survey an alternative line over Arthur's Pass on the Abt system to avoid the tunnel there, and, if the Governor shall approve the same, the Company may so construct their east and west line; and if it shall be shown to the satisfaction of the Governor that the actual cost, including equipment of the entire railway from Springfield to Belgrove, has been less than £2,500,000, then a proportionate reduction shall be made in the amount of land to be granted to the Company under these presents." Clause 36, page 14, line 9.—After the word "pounds " insert these words : " or such less sum as shall represent one-half of the actual cost, including equipment of the entire railway from Springfield to Belgrove, if the Company shall construct the alternative line mentioned in clause 4 hereof." Clause 38. —Omit proviso, and add : " Provided always that the mileage proportion of all through rates, fares, or tolls (after deducting the terminals properly attributable to the respective railways, which terminals shall be paid monthly to the party owning the station in respect of which such terminals have been received) taken and received by the Queen or the Company in respect of traffic passing to or from the railways of the Company from or to the railways of the Queen shall be paid monthly to a joint account in the name of , on behalf of the Queen, and in the name of the Company, and such amounts shall be divided between the party owning the lino run over and the party exercising such running-powers, in each case as may from year to year be agreed between the parties, or, failing agreement, as may be decided by arbitration in the manner prescribed in clause 47 hereof." Clause 39. —Omit all the words after " exceed," line 9, and re-insert the same words as in clause 12 of the original contract. Clause 15.—Insert these words: "which said particulars are hereby declared to be binding upon the Queen and the Company." Clause 21.—After the word " time," at the end of line 1, insert these words : " to require the Company; " and after the word " construct," in line 2, insert these words: "at his expense." Clause 30.—Subsection (2): Omit all the words after " case," in line 1, and insert these words instead: "of any lands dealt with under clause 33 hereof, the whole cost of the survey of such lands shall be borne by the Company." Clause 37. —Add these words at end : " but such request shall only be made by the Governor if the Company shall make any claim under clause 36 hereof." Clause 46.—1n last line but one omit the words " by being affixed in some part of," and insert instead these words: "at the office of any station on." No. 2. The Hon. the Premier to the Agent-General. (Telegram.) Wellington, 14th June, 1888. Midland.—Your message 16th May. Government agree to further proviso to clause four as follows: " Provided also that the Company may construct the incline-line instead of the tunnel-line if the Governor, after having obtained the opinion of two eminent engineers to be nominated by him, is satisfied that the incline-line when made will be suitable for mineral and other heavy traffic, and, in his opinion, wprk at a satisfactory cost; and, if the cost of the construction of the entire line from Springfield to Belgrove shall be less than £2,500,000, a reduction shall be made in the grant of land to the Company proportionate to the amount saved by the substitution of the incline-line for the tunnel-line." The Agent-General, London. H. A. Atkinson. No. 3. The Agent-General to the Hon. the Premier. (Telegram.) London, 19th June, 1888. Midland. —Burchell perfectly satisfied provisoes. The Premier, New Zealand. F. D. Bell.