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The TJndee-Seceetaet for Public Woeks to Messrs. Beogden and Sons. Gentlemen, — Public Works Office, Wellington, Ist February, 1882. I am directed by the Acting Minister for Public Works to acknowledge the receipt of your letter of the 30th January, and to state that the Minister will reply thereto as soon as he possibly can. I have, &c, J. Knowles, Messrs. J. Brogden and Sons, Wellington. TJnder-Secretary for Public Works.

Messrs. Beogden and Sons to the Hon. the Ministee for Public Woeks. Sib,— Wellington, 15th February, 1882. We have the honor to acknowledge the receipt of your letter of the Ist instant, promising a reply to ours of the 30th ultimo. In continuation of our remarks on "The Government Contractors Arbitration Act, 1872," and its operation upon us, we wish now to show how the Government, who were not ignorant, as we were, of the passing of the Act, have acted in respect to it. ' The clauses to which we object in the Act, added by Mr. Reid (now the Solicitor-General), were intended by him, as he says, " As to these clauses, they apply equally to the Government and the contractor" (see parliamentary paper E.-3, 1878, page 9), and therefore all deductions (involving any dispute) from the contract sums, or from amounts previously agreed upon aud certified, or for any other purposes, if disputed, ought to have been claimed by the Government within the time and in the terms of the Act by which it is sought to bind us. The fact is that, while seeking to apply the Act and its limitations to us, the Government have themselves utterly disregarded it. They have altered the certificates of their Engineers, and have made deductions from amounts previously certified and due, and have wrongfully retained moneys from some contract accounts in respect of claims of alleged overpayment on other contracts long after the six months had expired, and without any demand for arbitration or reference to the Act of 1872, and without condescending to furnish any particulars of the matters for which the deductions were made, and have even refused (see letter from the Minister, Mr. Oliver, 3rd March, 1881) to furnish the particulars when asked for in writing. They have on the Oamaru Contract deducted penalties (although their right to do so was disputed) for non-completion at the exaet time originally fixed for completion in the contract, notwithstanding that they had in writing instructed us to suspend the works, and had not furnished the plans of bridges and other works to be constructed until long after the time fixed for completion, and during which they deduct the penalties; and, further, they had themselves delayed the completion by neglecting to give possession of the necessary land, and not furnishing the rolling-stock and permanent-way material according to contract; indeed they have acted towards us as if there were no such Act as " The Government Contractors Arbitration Act, 1872," and as if, at least, they were not called on to recognize it or apply the provisions of it to their use. The balance due to us on our respective contracts amounts, according to the accounts we have rendered, to upwards of £250,000. Of course the Government know that, quite outside of this balance due to us for works, we have sustained very heavy losses through the immigration contracts which we entered into solely at the desire of and under pressure from the then Government, and for which Dr. Featherston, the AgentGeneral, who was familiar with the whole subject, recommended that we should be compensated. (See his letters of 10th July, 1873, and sth May, 1874.) That compensation has been refused to us. But, at least, wo are entitled to be paid for the works we have done for the Govenment. These consist of stations, bridges, fencing, sidings, earthworks, &c, &c, and we have given, in the detailed accounts furnished, the exact locality in which each piece of work is situated, and can now be seen, and the exact measurements and value of each. The Government and the colony have adopted and are now using the respective railways and stations of which these works form part. It does, therefore, seem extraordinary that we cannot get paid for them —nay, cannot even get an open inquiry as to whether they have been done or not. We think we have shown sufficient reasons to induce the Government to give this matter careful and immediate consideration, as it cannot remain longer in its present position. The Hon. the Minister for Public Works, We have, <fcc, Wellington. John Beogden and Sons.

The Undee-Secbetaey for Public Woeks to Messrs. Beogden and Sons. Gentlemen, — Public Works Office, Wellington, 18th February, 1882. I am directed by the Acting Minister for Public Works to acknowledge the receipt of your letter, subject and date as noted in the margin [15th February. Further re claims and " The Government Contractors Arbitration Act, 1872 "1, and to state that the same will be considered as soon as circumstances will permit. I have, &c, John Knowles, Messrs. J. Brogden and Sons, Wellington. Under.-Secretary for Public Works.

Tho ITndee-Seceetaey for Public Woeks to Messrs. Beooden and Sons. Gentlemen,— Public Works Office, Wellington, 21st February, 1882. I have now the honor, by direction of the Acting Minister for Public Works, to reply to your letter of the 30th ultimo. With reference to the part of that letter in which you express your belief that certain impressions prevail as to the reasons which have influenced you in delaying the prosecution of your demands, and state that any person familiar with the matters will easiljr see how unfounded are such impressions, I am to say that the Minister is not aware why you should entertain such a belief, and that the Govern-