which the same shall be carried in the said Towns and between the said Towns on round posts fixed on one side of the main road.

3. None of the said posts shall be less than twenty nor more than twenty-five feet above ground and not less than three feet in the ground in the part inserted in the ground to be not less than seven inches in diameter at the bottom nor less than five inches in diameter at the top hooped with wrought iron and charred from the bottom to six inches above the ground. And all posts to be painted black to the height of six feet from the ground and the remainder white. And the whole to be securely fixed and spurred to the satisfaction of the Provincial Engineer.

4. The contractors to be at liberty to fell timber for the said posts on the Government Reserves to remove trees on either side of the line by which the Telegraph wire might be injured and to carry the line along Government Roads and through its Reserves and Lands free of charge.

5. The contractors to find all necessary apparatus and instruments of the best quality for working the Telegraph and to procure a certificate from Mr M'Gowan the Telegraph Superintendent of Victoria that such apparatus and instruments are of the most approved description. The insulators to be similar to a sample to be deposited with the Superintendent having been first approved by the said Mr M'Gowan. And the pins to be equal to a sample approved by the Provincial Engineer.

6. The telegraph to be kept in repair and worked at the expense and for the benefit of the contractors for the period of five years from the date hereof upon the terms and conditions hereinafter expressed except during repairs arising from accidents.

7. The Manager and all servants to be employed in working the Telegraph to be appointed by the Superintendent who shall have absolute power to discharge them but every such appointment shall be subject to the approval of the contractors.

8. The Manager shall have charge of all messages and it shall be his duty to see that they are transmitted in proper order.

9. All Government messages to have precedence of contractors or private messages and contractors or private messages to be dispatched and delivered in order of receipt at the office and to be marked alike.

10. The contractors not to have access to messages but to be allowed to see that the books are properly kept.

11. The following shall be the Scale of Charges for the transmission and delivery of messages within half a mile of the stations

To and from Dunedin and Port Chalmers not exceeding ten words three shillings each additional word twopence

To and from Dunedin and the Heads not exceeding ten words four shillings each additional word threepence

To and from Port Chalmers and the Heads not exceeding ten words two shillings each additional word twopence

For delivering messages on board any ship and beyond half a mile from any station the contractors shall be entitled to charge the actual expenses incurred by them in such delivery

12. A reduction of twenty-five per cent. shall be made in the foregoing charges after the expiration of the first year and a reduction of fifty per cent. after the second year of the said term.

13. The salary of the Manager, servants’ wages and all working expenses to be paid by the contractors.

14. At the end of the said term of five years the Superintendent shall purchase the contractors’ interest in the said Telegraph for the cost price thereof and twenty per cent. added thereto. And the Superintendent shall be at liberty to purchase the said Telegraph at any time during the said period of five years at the cost price thereof and twenty-five per cent. added thereto.

15. In case the contractors and Superintendent shall differ about the cost price of the said Telegraph such difference shall be settled by two arbitrators one to be chosen by the contractors and the other by the Superintendent or by an umpire to be chosen by the said arbitrators and the award of the said arbitrators or umpire shall be final and conclusive.

16. The contractors shall on signing this contract deposit with the Provincial Treasurer the sum of one hundred pounds as security for the due fulfilment of the contract according to the foregoing conditions and on completion thereof to the satisfaction of the Provincial Engineer the said sum of one hundred pounds shall be absolutely forfeited.

17. Within two months after the Provincial Engineer shall have decided by what route the said Telegraph shall be continued from Port Chalmers to the