5

D.—sc

any difference or dispute as to the area the company is entitled to select, the decision of the Governor shall be binding and conclusive on the company, and every such selection shall be subject to the approval of the Governor. Every grant made under the last-preceding clause shall be subject to the provisions of " The Eailways Construction and Land Act, 1881," respecting the terms and conditions upon which grants of Crown lands may be made to a company thereunder. In dealing by way of sale or otherwise with any land which shall become vested in the company pursuant to any such selection as aforesaid, the company shall conform to the rules and regulations set forth in the First Schedule hereto : Provided, however, that this and the two last-preceding clauses shall not have any force or operation so as to give the company any right, title, interest, or claim in or to the land proposed to be withdrawn from sale as aforesaid, unless and until the allocation of the land so set aside and intended to be granted to the company shall be approved by the General Assembly of New Zealand in the manner prescribed by sections 13 and 14 of the said Act. 7. And it is hereby further agreed that the power of purchase conferred upon the Governor by the said Act may be exercised at any time after the expiration of three years from the completion of the said railway. 8. And it is hereby further agreed that the maximum tolls, fares, and rates to be charged by the company for the carriage upon the said railway of passengers, produce, animals, and goods, and for the storage of goods in any of the company's sheds or warehouses, shall be according to the scale set forth in the Second Schedule hereto, or according to the scale for the time being in force on the Auckland-Helonsville Eailway. 9. And it is horeby lastly agreed that, in case this contract or any provision thereof shall be avoided or modified either wholly or in part by a resolution or resolutions to be passed by the General Assembly of New Zealand in the manner v by the said Act, the company shall not have any claim or demand upon or against the Queen or the Governor of New Zealand for any loss or damage by reason of such avoidance or modification, or in consequence of the operation of any such resolution ; and any property, estate, right, or interest acquired by the company from the Queen or the said Governor under or by virtue of the said contract or provision shall, to the extent and in the manner specified in any such resolution, be and be deemed to have again become the property or estate of the Queen or the Governor, or to revest in the Queen, as the nature of the case may require. And, further, that nothing contained in this contract shall be deemed in any way to abridge, control, modify, or supersede any power, remedy, or authority which under the said Act is vested in or may be exercised by the Governor in Council, or the Governor, or the Minister for Public Works. The word " Governor " in this contract has the like meaning as is attached thereto by " The Interpretation Act, 1878." In witness whereof these presents have been executed by the parties hereto on the day and year first above written. The seal of the company was hereunto affixed this twenty-first day of August, J. M. Daegaville, one thousand eight hundred and eighty- B. Mitohelson, two, by two of the directors of the Directors, company, in the presence of— L. B LINKLATER, * L- s-> Soal of tllo Kaihu Valley Railway r, . .-, ' Company (.Limited). Secretary to the Company. Signed by Sir James Prendergast, Administrator of the G overnment of the Colony of New Zealand, with the advice of the James Prendeegast, Executive Council thereof, on behalf of Administrator of the Government of the Her Majesty the Queen, and sealed Colony of New Zealand, with the Public Seal of the said Colony, in the presence of— FORSTER GORING, <l- s-) Seal of tho Colony. Clerk of the Executive Council. 21st August, 1882.

First Schedule. 1. No sale of land shall be held until after thirty days' public notice of the time and place thereof shall be given in at least one Auckland newspaper. 2. Sales of land may either be by auction or by applications receivable on a given day. In the event of more than one application for the same section of land on the same day between the hours of 10 a.m. and 4 p.m., the land applied for shall be put up to public auction, and the bidding at such auction shall be limited to the applicants. 3. Pastoral land—that is, the higher slopes on the hills—to be surveyed generally, so far as the natural features will permit, in sections at least twice the depth to the breadth, the depth running back with the slope of the hills. Sand-hills to be deemed pastoral land, and may be surveyed in such areas as the company may deem best.