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L—7

The Kakanni and Island Creek Bridges were not ordered until May, 1874, and the Mill Stream Bridge not until 29th April, 1875. and there were several variations from the plans, ordered after the bridges had been commenced. The Kakanui Bridge was for a long time delayed waiting for the Engineer to decide on the foundations. The detail drawings of the Otepopo Bridge were not received until August, 1875, and the mode of construction of the Waimotu Bridge was not decided on by the Engineer until October, 1875. An extra bridge was ordered in October, 1876, and both earthwork and permanent-way were materially delayed on account of the Kaka Bridge, the last alteration for which we did not receive until 11th October 1876—nine months after the contract time had expired. The deviation at Otepopo delayed the commencement of that portion of the work for five months. The Government did not decide to line the tunnel at Otepopo until June, 1874, after which the material had to be prepared. The platelaying and ballasting were delayed for several months for want of rolling-stock and permanent-way material which the Government should have supplied, and in February, 1876, we had to ask for six miles of rails and fastenings, which had not then been supplied to us. In addition to the above, the extras and additions to the contracts would alone entitle us to more than twelve months' extension of time. We do not burden you with further particulars, of which, however, we have a great number. We have, therefore, to request that the amount withheld from us improperly as penalties be paid to us without delay. We have, &e., John Beogden and Sons. The Hon. E. Oliver, Minister for Public Works, Wellington.

Messrs. Beogden and Sons to the Hon. the Minister for Public Woeks. Sie,— Wellington, sth April, 1881. We have the honor to request a reply to that portion of our letter under date 14th March, wherein we ask you to inform us what course you propose to adopt with reference to the several accounts we have rendered. We have, &c, The Hon. R. Oliver, John Bbogden and Sons, Minister for Public Works, Wellington. (per J. Billing.)

The Hon. the Minister for Public Woeks to Messrs. Beogden and Sons. Gentlemen,— Public Works Office, Wellington, Bth April, 1881. I have the honor to acknowledge the receipt of your letters dated 14th and 23rd March, which were laid before me on my return to Wellington. In your letter of the 23rd March I observe you state that your claims had been forwarded in detail, and that the amounts might be considered definite, although you reserved the right to alter the form and terms to meet any objections which the Government might make. This reservation deprives the claims (which you have submitted for the consideration of the Government) of that definite and final character which might reasonably be looked for under the circumstances. It amounts to a declaration that you may alter the nature of your claims, and shape them in any way you think fit to suit the exigencies of the moment. That I am justified in this view is apparent from the fact that on the 25th March you forwarded a further claim, amounting to £3,325 ss. ; and this gives rise to the supposition that there may be others of a like character which are now held in abeyance. Under these circumstances I can only repeat the statement in my letter of the 9th February* last, •viz., that before entertaining any proposals for examining your claims, or considering the propriety of waiving any of the provisions of " The Government Contractors Arbitration Act, 1872," the Government is entitled to have a full and final statement of the claims which you are prepared to abide by. It will be for the Government then to say what claims they are prepared to consider; but it is clear that finality on your part must be a prior condition to the giving of that consideration by the Government which they may be willing to accord. I have, &c, Messrs. J. Brogden and Sons, Wellington. R. Oliteb.

Messrs. Beogden and Sons to the Hon. the Minister for Public Wobks. Sib,— Wellington, 9th April, 1881. We have the honor to acknowledge the receipt of your letter of the Bth instant, in reply to ours of the 14th and 23rd March. Our letter of the 23rd ultimo stated that the definite amount of the claims on our various contracts was then sent in. We scarcely think you can have considered carefully our letter of the 25th March, and that to which it refers, as they relate only to cash retained by you for penalties, and not to any new claim; and in our letter of the 25th we gave vou some particulars to show that you could not properly retain the cash for penalties, as the causes for the delay in completing the works arose from the Government, and not from us. When you render an account of the deductions you claim to make, there maybe other explanations necessary to rebut them, and we think it would simplify matters greatly if you would have this account furnished to us at once. We repeat that you now have our claims fully1" before you, but we cannot think that you intend to ask us to waive any right we may have to vary the form and mode of statement to meet any objections, technical or otherwise, which the G-overnment may make use of, while at the same time the Government hold themselves free to avail themselves of all the advantages which they may possibly possess.

* A clerical error probably, doubtless intended for the 9th March.