BETWEEN SHORTLAND AND TAURANGA.

17

E.—No, 6.

No. 66. Mr. C. Lemon to Mr. Floyd. (Telegram.) AVellington, 2nd October, 1871. No. 1. AVhat number of poles, including those to be erected, will McKenzie have supplied and erected ? No. 2. AA^hat loss has the Department sustained in the shape of paying men and nothing for them to do, through McKenzie not delivering ? Reply to-night. An approximate will do. C. Lemon, Mr. Floy-d, Tauranga. General Manager.

No. 67. Mr. Floyd to Mr. C. Lemon. (Telegram.) Ga., 2nd October, 1871. No. 1. —Total number supplied and placed on line by McKenzie will be 330. I think this will be within five poles of the truth. But it is impossible to be exact, as several passed poles have disappeared, and AVallace is going to try to find them. This includes poles laid for spare, which I verbally agreed to pay same price for as for those erected, on condition that twenty-five feet poles, though not mentioned in specification, should only be charged same price as twenties. No. 2.—1 have never paid men without getting work out of them ; they have been engaged making fascine roads over swamps, and doing other road-making that was necessary to make lino passable. The loss is that I shall have been kept hero more than two months than necessary. The same amount must have been spent for actual labour. The difference would have been that I should have employed more meu and done with a large staff in one month what my few hands have done in three months. Taking into account that my detention here has involved almost constant employment of a boatman and a good deal of service for a mounted guide, the actual money loss to the Department may be estimated at £100. W. H. Floyd, C. Lemon, Esq. Electrician.

No. 68. Mr. Floyd to Mr. C. Lemon. (Telegram) Ga., 2nd October, 1871. The hundred pounds I estimate as money loss to tho Department is made up as follows :— £ s. d. Electrician's travelling allowance during August and September ... 32 0 6 Wages of boatmen, guide, and camp-keeper during same period ... 61 15 0 Horsefeed and sundries ... ... ... ... ... 646 Total ... ... ... ... £100 0 0 W. H. Floyd, C. Lemon, Esq., Wellington. Electrician.

No. 69. Mr. Floyd to Mr. C. Lemon. (Telegram.) Ga., 2nd October, 1871. Mr. Wallace proposed that Government should credit McKenzie with the contract price for every pole used upon the line, and debit him with cost of those poles supplied and erected by this Department. I told him I could not say what Government would do, but it appeared to me that as the contract was for an uncertain number of poles at a stated price per pole, the simpler plan would bo to credit McKenzie with the work he had actually done, and enter into no statement whatever with him as to the expense incurred by the Department iv completing the line. I believe the circumstances are such that the Government can finish the line at a cheaper rate than the contract price, but you can judge when I tell you that if the " Luna " discharges at Kati Kati and Kauri Point, the subsequent charges for placing at pegs and erecting will be about Ss. per pole. I have not committed the Department to any particular course, aud should be glad to receive early advice. W. H. Floyd. C. Lemon, Esq., AVellington. Electrician.

No. 70. Mr. Floyd to Mr. C. Lemon. (Telegram.) Ga., 2nd October, 1871. Work now going ou satisfactorily. AVallace expresses greatest regret delay. Says mainly due efforts get good poles. Many poles rejected by me never intended for use on line, but being on hand were sent to Tauranga for sale. He will erect all poles that I have passed, aud would finish line if he could ;