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15. If, in the opinion of the General Manager, the Contractor commits a wilful breach of the contract, or fails in carrying out the contract in a satisfactory manner, or if the Contractor shall die or become lunatic or bankrupt during the term of the contract, or make any assignment for the benefit of or composition with his creditors, or shall without the previous consent in writing of the Minister assign or sublet the contract or any part thereof, or any moneys due or to become due thereunder, the Minister may, on giving notice to the Contractor of his intention so to do, absolutely determine the contract without further process, and from and after the delivery of such notice as aforesaid the contract shall be absolutely determined, but without prejudice to any other right or remedy which Her Majesty the Queen may have against the Contractor or his sureties. 16. All disputes arising between the Locomotive Officer and Contractor as to the kind or quality of coal supplied under this contract, or as to the meaning or intention of this specification, shall be referred to the General Manager, whose decision in the matter shall be final and binding on all parties. By Order. Wellington, Ist February, 1899. General Manager.

Schedule of Approximate Quantities of Coal for which Tenders are invited, and Amount of Deposit and Bond required.

Where two or more contracts are let to the same Contractor, one bond for £500 will be accepted. The various companies or owners tender, and the tenders are all considered together. The department then makes a recommendation to the Minister, and the Cabinet decide what coal tender shall be accepted. 75. You surely accept the lowest tender?— Well, there are other considerations which operate. 76. Do you use any imported coal ?—No; we do not accept tenders of imported coal, but occasionally, when we have run short, we have taken a small quantity of Newcastle; and when we have run short at Kaihu we bought Newcastle coal from ships coming for timber. But we do not reckon to get any tenders outside the colony. 77. What price do the department pay for the coal ?—Various prices. The following list shows the whole of the prices obtained for the present year. It varies very much. Lignite, or brown coal, is very different in price to the bituminous, or West Coast coal:—

Railway. Place of Delivery. Probable Consumption. Deposit with Tender. Bond. Whangarei Kaihu Napier-Taranaki and Wellington Picton Nelson Westport Greymouth-Hokitika Hurunui-Bluff I - Any Station or Siding Dargaville Spit Eailway-station Eailway Wharf, Foxton „ Wanganui New Plymouth Breakwater, or Waitara Eailway Wharf, or Breastwork Pioton Wharf Eailway Wharf, Nelson Any Station on Westport Section „ Greymouth „ Lyttelton Wharf, or Malvern Branches Timaru Breakwater, or „ Branches Oamaru Breakwater, or any Station between Oamaru and Palmerston Any Station between Port Chalmers and Gore, inclusive Any Station south of Gore 800 tons 300 „ 3,000 „ 3,500 „ 3,000 „ 3,000 „ 8,000 „ 300 „ 700 „ 1,500 „ 2,000 „ 13,000 „ 2,500 „ 8,000 „ £30 20 50 50 50 50 200 20 30 30 30 200 50 100 £100 100 100 100 100 400 100 100 100 400 100 200 20,000 „ 200 400 11,000 „ 100 200 Smiths' Coals — Nuts, suitable for smiths' -I purposes Lyttelton Wharf... Port Chalmers Wharf Eailway Wharf, Onehunga „ Wellington „ Wanganui 1,000 „ 700 „ 200 „ 300 „ 200 „ 30 20 10 10 10 100

Section of Railway. Tenderer. Place of Delivery. Kind of Coal. Bate per Ton. Bemarks. iaipara-Waikato Taupiri Extended Coalmining Co. (Limited).. Ditto Huntly.. Kimihia Huntly.. Taupiri Extended Taupiri Reserve Waikato 5/5 5/5 4/9 5/6 4/7 Aeoepted (about 7,500 tone). Accepted (about 5,500 tons). Accepted (about 4,500 tons). Deolined. Ralph's Taupiri Coalmines (Limited) Ditto Brown coal (screened) .. * Brown coal (unaoreened)