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to His Excellency the Governor in ordinary course I shall be prepared to recommend the Minister of Public Works to move His Excellency to issue the same, subject to sundry modifications as under, — 1. Under the Counties Act Amendment Act, 1903, the company becomes the promoter and in certain respects the local authority in the Counties of East and West Taupo, in xvhich the larger portion of the tramxvay is situated. The other portion is in the Piako County, in xxdiich the Counties Act is in force. It will therefore, 1 fear, be impossible to grant an order unless the Piako County Council joins in the application for same or refuses to do so, and in the latter case evidence of its refusal must be given. 2. In clause 5, on page 3, the words "reasonably possible" should be omitted, as their inclusion xvould render the clause nugatory. 3. Provision must be made for the carriage of timber and farm-produce from lands the property of the Croxvn or held under Crown licenses, in accordance xvith the covenant already entered into by the company. 4. Conditions should be added to the schedule providing for the following points : — (a.) Trains shall be deemed to include a locomotive only, or a locomotive accompanied by one or more vehicles. (b.) Each train to be accompanied by a driver, fireman, and guard. (c.) Brake appliances. (d.) Head and tail lights. (e.) Proper maintenance of undertaking. (/.) Working of traffic under some recognized system so as to avoid collisions and other accidents. (g.) Warning to be given when trains approaching road-crossings. (h.) Notice-boards to be provided at road-crossings. (i.) Speed of trains. 5. The usual clause regarding penalties for breach of conditions must be included. 6. I notice that the rate of freight proposed to be charged on goods is very high. I am not prepared to say that this can be agreed to, but will confer with the WorkingRailways authorities on the matter before advising the Minister. There will doubtless be some minor alterations in addition, but the above are the principal amendments needed. I have, &c, H. J. H. Blow, Under-Secretary. Messrs. Findlay, Dalziell, and Co., Solicitors, Wellington.

Public Works Department, Wellington, 9th February, 1907. Gentlemen, — Taupo Tramway Order in Council. In compliance xvith the verbal request made by Mr. Dalziell to-day, I forxvard herewith a copy of the draft Order in Council relating to the above tramxvay, received under cover of your letter of the 19th April last. I have, <fcc, H. J. H. Blow, Under-Secretary. Messrs. Findlay, Dalziell, and Co., Solicitors, Wellington.

Colonial Exchange Buildings, Wellington. Dear Sir, — Re Taupo Tramway Order in Council We are in receipt of your letter of the 9th instant, xvith a copy of this Order in Council enclosed, and herewith beg to thank you for same. Yours truly, Findlay, Dalziell, and Co. (Per B.). H. J. H. Bloxv, Esq., Under-Secretary for Public Works, Wellington,

Colonial Exchange Buildings, Wellington, 26th April, 1907. Dear Sir, — Re Taupo Tram.way Order. We now enclose draft of this Order as amended in accordance with the arrangement arrived at between you and the writer, and xvill be obliged to you if you would give the matter your early consideration, as the company is desirous of completing the business as speedily as possible. Yours truly, Findlay, Dalziell, and Co. The Under-Secretary, Public Works, Wellington.

Wellington, 20th May, 1907. Dear Sin, — Re Tramway Order in Council. We are in receipt of your letter of the 17th instant herein, and noxv send three copies of the draft 1 Order in Council together xvith the draft enclosed xvith your letter. You will notice that in the fair-copy drafts xve have excluded clause 8, which has been omitted in accordance with the arrangement suggested in the writer's conversation xvith you on Saturday morning. We would be obliged to you if you xvould ask the Laxv Officers of the Croxvn to deal xvith the matter at their early convenience. Yours truly, Findlay, Dalziell, and Co. The Under-Secretary for Public Works, Wellington,