E.—No. 6

PAPERS RELATING TO EXTENSION OE TELEGRAPH

16

No. 61. Mr. C. Lemon to Mr. Floyd. (Telegram.) AVellington, 25th August, 1871. Write Mr. McKenzie that as he is now more than six weeks beyond the extended time for completion of his contract which involves him in a penalty of £5 per day, that unless he proceeds immediately to take steps to complete his contract, aud does so within one month from Ist of September, the Government will on the expiration of the said month treat the contract as cancelled, and take possession of the works, and that in any event all penalties heretofore and hereafter incurred will be enforced, and proceedings taken against him and his sureties for any loss the Government may incur by reason of his breaches of contract already and hereafter committed. Send a copy of this notice to Mr. Sheath, Auckland, requesting him, by order of the Telegraph Commissioner, to give Mr. McKenzie a copy of it in case your letter does not reach him. Also to his sureties (Mr. Sheath to send), informing them that the terms of it will be strictly enforced. The names of the sureties are Samuel Young and Daniel McAuley, both of Tararu. Please acknowledge receipt of this, and be careful you word McKenzie's letter and copy to Mr. Sheath in accordance with above. C. Lemon, Mr. Floyd, Tauranga. General Manager.

No. 62. Mr. Floyd to Mr. C. Lemon. (Telegram. Following to McKenzie :— " Sir,— Ga., 25th August, 1871. "I am directed by the Hon. the Telegraph Commissioner to remind you that the extended time for the completion of your contract to supply and erect poles on the telegraph line from Tauranga to Kati Kati has now been exceeded by more than six weeks, and that you are subject to a penalty of £5 per day for every day since the 10th of July last that your contract remains uncompleted. And to inform you that unless you proceed immediately to take steps to complete your contract, and do complete it within one month of the Ist of September, 1871, the Government will on the expiration of the said month treat your contract as cancelled, and take possession of the works. Also, that in any event, all penalties heretofore and hereafter incurred through non-completion of your contract will be enforced and proceedings taken against you and your sureties for any loss the Government may iucur by reason of your breaches of contract already aud hereafter committed. I have, Ac," Copy to Mr. Sheath, and a request to him to give it to Mr. McKenzie, also to give copy to each surety, accompanied by notice from himself that terms of my letter would be strictly adhered to by Government. , W. 11. Floyd, C. Lemon, Esq. Electrician.

No. 63. Mr. Floyd to Mr. C. Lemon. (Telegram.) Ga., 16th September, 1871. Back from Kati Kati. Office progressing, will be good one. Mr. AVallis McKenzie's partner is here, with power from McKenzie to act for him in carrying out contract. Expresses great regret at delay, and says it has been caused by efforts to get poles that would pass. Declares that better poles than those sent cannot be obtained, and sawyers have refused to cut any more. Is going to examine those I have rejected, and will let me know what he proposes to do on his return, about middle next week. I declined to accompany him to examination, as I had finally determined on standing to my rejections, and could not discuss the question of fitness or unfitness any more. I have got everything in train for going ahead vigorously at end of mouth, if work comes into our hands. C. Lemon, Esq. W. 11. Floyd.

No. 64. Mr. Floyd to Mr. C. Lemon. (Telegram.) Ga., 27th September, 1871. Just arrived from Maketu. lam informed that Mr. AVallis McKenzie's partner returned here last evening, and went on at once to my camp, with the avowed intention of erecting all the poles I have accepted, and then handing the line over to the Government to finish. In accordance with notice sent to McKenzie, the Government would take possession of tho works on Saturday next. Shall Ido so without regard to the amount of work done by that time by VVallis, or stand by for a few days until he has erected the poles I have passed ? W. H. Floyd, C. Lemon, Esq., G.M. Electrician.

No. 65. Mr. C. Lemon to Mr. Floyd. (Telegram.) AVellington, 30th September, 1871. Attorney-General says : —lf work is going on satisfactorily take no notice ; but if work is not going on satisfactorily, enter on the day your notice mentions. You are not to pay any money. If in doubt on any point, telegraph mo further, aud I will assist you. C. Lemon, Mr. Floyd, Ga. General Manager.