D.—2

2

15. The company will run a train three times a week each way over the New Zealand railways between Elbow and Kingston. The Minister will pay the company for this service the sum of £9 per week. 16. The company's officers while running on the New Zealand railways will be subject in every respect to the rules, regulations, and by-laws in force at any time on the same, and shall render such returns as may be required by them. 17. 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 ; the use of such " special " 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, New Zealand Railways, may, if he thinks fit, put on a driver and guard to work the " special," and charge the company with the cost of their wages. The General Manager, New Zealand Railways, reserves to himself the right to cancel this condition at any time. 18. The arrangement will commence on the 12th day of December, 1880, and may remain in force for twelve months, but it shall be terminable after three months' notice has been given by either party. J. P. Maxwell, 24th November, 1880. General Manager, New Zealand Railways.

Mr. Bastings to Mr. Maxwell. The Waimea Plains Railway Company (Limited), Sib,— Dunedin, 27th November, 1880. I have the honor to acknowledge the receipt of yours of the 24th instant, with accompanying memorandum of agreement for interchange of traffic between the Waimea Plains Railway and the New Zealand Railways, and the running of the company's trains between Elbow and Kingston, the same being an amendment upon those now in operation. I have now to inform you that the company have agreed to the conditions as set forth in the said memorandum. I have, &c, Hobace Bastings, J. P. Maxwell, Esq., General Manager, Secretary. New Zealand Railways, "Wellington.

THE RAKAIA AND ASHBURTON FORKS RAILWAY. MEMORANDUM OF ARRANGEMENTS FOR WORKING THE RAKAIA AND ASHBURTON FORKS RAILWAY BY THE MINISTER FOR PUBLIC WORKS. The line to be worked by the Minister subject to the rules, regulations, and by-laws in force upon the New Zealand Railways, the gazetted rates for the New Zealand Railways being charged. 2. The company to find engine and carriage-stock. The expenses of running and repairing such stock to be charged for by the Government at cost price. 3. Should the Government supply engine or carriages, the following rates shall be charged: Per day or part of a day —Engine, £3 10s.; lst-class carriage, 10s.; composite carriage, 7s. 6d.; 2ndclass carriage, 7s. 6d. ; van brake, ss. 4. All wagon-stock of every description, and horse-boxes shall be charged Id. per mile per vehicle when loaded or partially loaded. 5. The Government will maintain the line at the cost of the company. 6. The company to pay £150 per annum towards the working expenses of the Rakaia Junction Station. 7. The Government will supply the staff, stores, and stationery necessary for the working of the traffic at the expense of the company. 8. 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, to be charged as part of working expenses. 9. The whole conduct of the business of the line will be under the control of the General Manager of the New Zealand Railways. 10. Passengers will rebook at the Junction Station. 11. Parcels will be booked from all stations between Timaru and Lyttelton to stations on the the company's line, and vice versa; other parcels must be rebooked at the Junction. 12. Goods will be booked from all stations between Lyttelton and Timaru to stations on the company's line, and vice versa; other goods must be rebooked at the Junction. 13' Division of charges will be made between the New Zealand Railways and the company, thus: For parcels, proportionately to mileage. For goods, proportionately to mileage, but subject to the following deductions before division is made: — On goods, Classes A, B, C. D, 3s. per ton, excepting when consigned to Christchurch Station; 4s. sd. per ton on goods consigned to Christchurch Station, but not to private sidings there ; 3s. per ton on goods consigned to private sidings. On goods, Class E, 4s. sd. per ton on goods consigned to Christchurch, but not to private sidings there; 3s. per ton, excepting when consigned to or from private sidings or to Christchurch ; 2s. 6d. per ton when consigned to or from a private siding; 2s. per ton when consigned between two private sidings. On cattle and sheep, Class M, ss. per truck.