D.—No. 10.

PAPEES RELATIVE TO THE PROPOSED

6

But if you should succeed in meeting with responsible persons prepared to supply or raise the necessary capital for the work on being satisfied of the correctness of Sir. Wrigg's report by inspection of the line and of the country to be granted for its construction, the Government authorize you to undertake the payment of one-half the expense of sending out some qualified person to be appointed by you to go over the ground for that purpose, to an amount not exceeding £1,000, to be contributed by this Government. In the event of your success in finding responsible persons to undertake, with or without such previous inspection, the construction of the line upon the terms and conditions expressed in the Act, who shall give satisfactory security, and shall enter into a contract to that effect, the Government will be prepared to pay you, by way of a commission for the negotiation, the sum of £1,250 on the execution of the contract, and a further sum of £1,250 on the completion of the work. I have, &c, Alfeed Geeenfield, John Morrison, Esq., London. Provincial Secretary.

Enclosure 3 in No. 4. John Moeeison, Esq., London, to the Provincial Seceetaey, Nelson. Office of the New Zealand Government Agency, 3, Adelaide Place, King William Street, London, Sic,— 26th Pebruary, 1869. I do myself the honor to acknowledge the receipt of your letter of the sth December last, enclosing a power of attorney authorizing me to enter into a contract on behalf of the Province of Nelson for the construction of the proposed Nelson and Cobden Eailway. Also intimating that, by the Panama Company's steamer, two boxes containing plans and documents had been sent, and for which bill of lading was enclosed. I beg to inform you that the boxes in question have been delivered, and especial care is being taken to preserve the plans and documents until the full instructions are received to which you refer. The absence of the views of the Government and further instructions cause me to defer offering at present any remarks, but I shall have much pleasure in fully entering upon the suject when they are to hand. I have, &c, The Provincial Secretary, Nelson. John Moeeison.

Enclosure 4 in No. 4. John Moeeison, Esq., to the Superintendent, Nelson. Office of the New Zealand Government Agency, 3, Adelaide Place, King William Street, London, Sic,— 20th April, 1869. I do myself the honor to acknowledge the receipt of your letter No. 13 of 2nd January last, transmitting my appointment as Agent for your Government in England under the provisions of " The Nelson and Cobden Eailway Act, 1868," delegating to me full power and authority to enter into a contract for the construction of a line of railway from Nelson to Cobden and Westport, upon the terms and conditions specified in the Act. In reply, I have to express my obligations for the confidence which your Government has shown in confiding so unreservedly to my care the management of this extensive and important undertaking. Notwithstanding that it is a difficult and an uncertain one, I will cheerfully bring the proposition of the Government before responsible persons, and will use my best endeavours to get them to undertake the work in question. You were advised on the 26th Pebruary last of the case containing the map, showing the watershed of the valleys, the tracings of Mr Wrigg's survey, and the printed reports and Council papers, being received. The map is essentially important in representing the area within the confines of wdiich land will be granted for the construction of the line, and to some extent in showing the character of it, also the extent and position of the land already sold in the district. The perfect manner in which you have explained the essential features of the undertaking renders it unnecessary that I should separately refer to the several points ; but I may add that, in negotiating with any capitalists or others, I will not fail to direct their attention to them, and specially with reference to the nature of the land, so as to avoid the possibility of disappointment or misrepresentation. Acting upon your instructions, I sought and obtained an interview with Sir George Grey, at which I submitted for perusal your letter; and I may state that Sir George has kindly consented to assist me with advice at any time 1 may have occasion to require it. With Mr. Pitzgibbon I have also been in communication, and consulted as to the best mode of proceeding to engage the attention of capitalists. That gentleman, at my request, kindly undertook to lay the papers before Messrs. Sir Charles Pox and Sons, and to obtain their opinion as to whether the data received were sufficient upon which to submit the operation to capitalists, and what probability there might be of capitalists promoting the work. I regret that those gentlemen have reported unfavourably with regard to the data furnished, and upon the probability of my successfully carrying out the wishes of the Government. In this opinion I am sorry to say Mr. Pitzgibbon concurs. The letter addressed to Mr. Pitzgibbon by Messrs. Fox and Sons explains their views upon the subject so fully that, by permission of Mr. Pitzgibbon, I am enabled to enclose herewith (SubEnclosure 1) a copy of it; accompanying which are two Beports of the Indian Tramway Company, Limited.