the action of the sea at high water in gales of wind. The continuation of the works on Contract No. 2, under the restricted expenditure, preserved from destruction the embankments across the bays of the Bluff Harbor, and in September, 1864, the works of the embankments across the bay of the New River Estuary were partially resumed by the contractor who was prevailed on to continue these to some extent up to May of this year, when his own necessities, and the disability of the Provincial Government to afford any prolonged assistance towards their continuance, caused their entire suspension, extended to this date.

VIII.—PRESENT STATE OF THE RAILWAY.

A length of 5 miles and 22 chains is completed and ready for traffic, from the Campbelltown end of the Railway, with the permanent way laid; the maintenance of these works, which includes the embankments across the several bays of the Bluff Harbor, has been undertaken by Mr. Ross, for the sum of £30 per month if payment be made in money, but there is work over this portion of the Railway, reported on by me to the Superintendent on the 20th March, 1865, “which could be executed at little expense to the Provincial Government, were the railway opened for traffic, when men required for the maintenance would be employed for an hour or so in the day to fill the regular material into waggons for conveyance by the train (from a siding where they could await its arrival) to the place where the material was required; this work, although necessary, could only now be executed at a greatly increased expense. The work so alluded to consists in the protection of the slopes to embankment No. 14 from the action of the wind, by the covering up of the exposed surface of sand, with protecting material from cutting 6, and in the further filling in between the sheeting to the outer slope of the embankment and the breakwater planking, and this work, as I have stated, could gradually and at little expense be proceeded with were the Railway open for traffic. I have, however, such difficulty in getting executed even the few works which are more immediately necessary, and which were to have been completed within the period of maintenance, all urgency on my part being met on the contractor’s part by reference to the difficulties they are placed in by the deferred payments, that it seems doubtful whether these works could be executed at present, even if the Provincial Government desired; and I call your attention to them as works that should be executed as soon as practicable for the entire completion of this portion of the Railway.”

Some damage has arisen from the long delay in the execution of the work referred to, but the amount is not very considerable.

From the termination of this portion of the Railway, northwards, a length of 10 miles and 38½ chains (Contract No. 1) was within about two months of its completion at the time of the suspension.

In this length occurs the 3 miles and 75 chains of bog, the difficulties in respect of which are alluded to under heading I, and some irregular settlement from the drying and settlement of the crust formed over it by drainage has occurred during the long suspension of the works; on this crust, and on portions of the embankments, sand has been laid for the bottom ballast, which would have been rapidly protected from the action of the wind by a covering of gravel from the cuttings, before the rails laid down were up to the cuttings whence the gravel was to be obtained, with which the bulk of the ballast was to be laid; the works were suspended; and during the continued suspension this sand has been blown away, so as to give the permanent way which had been laid on it the appearance of a road resting here and there on a few hillocks of sand, and in some cases in suspension for several lengths of the rails. In the embankment over which this state of the works is visible, a flood, in consequence of the non-completion of an intended outlet drain, has caused a breach through the embankment of about 40 feet in length. Altogether on this contract damage to works to the extent of about £1500 has been sustained.

This length includes the Mokemoko Branch.

Northwards from the length above described, is one of 2 miles 28 chains, (Contract No. 3), connecting it with the Invercargil S ation. This contract was within about three months of completion at the time of its suspension; the principal damage to the works by their suspension arising on it is that caused by the action of the tides and waves in gales