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This arrangement was intended to secure a Wooden Railway as a make-shift until the Iron Rail could be obtained, the addition of which would at any time convert the Railway into an ordinary one on the Longitudinal system. . . . .

The recommendation so made by us was adopted by the Government, and Mr. Davies contracted with the Provincial Government for the Rolling Stock and use of his Patent; and in order to press forward the works to their completion before the following winter, tenders were called for them at a Schedule of Prices as preparatory to the completion of the Surveys and Drawings, and Mr. Davies’ Tender was accepted for the work.

It is much to be regretted that the intention of using the Longitudinal as a Wooden Rail should have delayed immediate orders being sent to England for the light Iron Rail which it was finally contemplated to add, and that such an order was postponed until the finances of the Province prevented it being sent; for had the Rail been then ordered, little improvement in the arrangement made could have been desired.

III.—WORKS EXECUTED WITHIN THE PROVINCE.

These were let by public Tender on a Schedule of Prices, an Estimate having been prepared by me, showing as nearly as the incomplete state of the Surveys and Drawings allowed proportionate quantities of the various Works, to which quantities the prices tendered could be applied for the purpose of comparison of results of the prices tendered.

IV.—CONSTRUCTION OF ROLLING STOCK AND SUPPLY OF TWO LOCOMOTIVES FROM VICTORIA.

The Contract for the construction of the Rolling Stock and provision of two Locomotives was let to Mr. Davies; it being arranged that these latter were to be built in Victoria, for the sake of expedition, the great object desired by the Government being the earliest practicable completion of the Railway to secure communication with the Northern portion of the Province before the following winter.

Contract “A” for the entire construction of the Railway and Works ready for traffic was let by public tender on November 3rd, 1863, to Mr. J. R. Davies; there were four Tenders for this work, the highest prices tendered showing on application to the proportionate quantities prepared for the consideration of Tenders, the amount of £130,281 10s. and the lowest, the amount of £86,270 17s. 8d.; my estimate of prices to the same quantities showing £79,051 5s.

The price to be paid for the Rolling Stock, exclusive of the two Locomotives from Victoria, was £8,150 0s. 0d., and the Construction of these Carriages and Trucks was proceeded with in Invercargill.

6.—SUSPENSION OF WORKS, THEIR RESUMPTION, FINAL SUSPENSION AND ARRANGEMENTS FOR CONVEYING TRAFFIC OVER A PORTION OF THE RAILWAY.

The works were suspended on 20th May, 1864, and were resumed on the following August, and on the following 18th October, an official opening of the first 8 miles of the Railway from Invercargill to the north bank of the Makarewa River took place, although at this time the way was in a very incomplete state, and temporary expedients had to be adopted to render it viable for the date fixed by the Government. The financial state of the Province and embarrassments of the Contractor, compelled the suspension of the works immediately after this opening, and they have never been resumed.

In April, 1865, the state of the roads south of the Makarewa threatened to close the Mail Service with the north, and the Deputy Superintendent determined to convey the mails by the incomplete Railway to the north side of the Makarewa, from which point the North Road was practicable. For this purpose a very light Engine, known as the Lady Barkly, was borrowed of the Contractor, and commencing, on 27th April, 1865, traffic was conveyed over this portion of the Railway.

This little engine had originally been constructed in Victoria, for the purpose of exhibiting the working of the patent.