The con tract time ought not to be exceeded, but could it have been foreseen that the court would sustain such claims for payment for land as it had sustained the Govern ment would have delayed commencing the works until reasonable arrangement had been effected. A really good Hue behind Mount Egmont had now been found and a working survey south, and towards Hawera was to be completed. From Wanganui northwards the country had been found very difficult instead of favor able, as the department had beenled to ex pect, and despite all possible exertions no date for commencing the formation of the line could be fixed. The heavy works would mainly be within the first thirty miles north of Wanganui. The bridge over the Wanganui river was to be completed by March 1876. Two sections of the Wan ganui and Manawatu line would soon be let, including bridges over the Wanganui and the Turakina. For the remainder, the surveys are well advanced ; tho con version of half of the lines from a tram way to a railway, was provided for by the Railways Act, 1872. It was found to be absolutely necessary similarly to convert the Rangitikei to Manawatu section. It was proposed to contract with Mr A. F. Halcombe, the Agent of the Emigrant and Colonists Aid Corporation to con struct nine miles of this railway, he waiv ing the right of the Company to require employment for 200 of the Company's emigrants at any time during the next three years — a condition which was found to be very embarrassing. The first sec tion of the Wellington and Masterton railway had been after three months maintenance taken ovei from the contrac tors. It had cost £3098 more than the contract price, so that the total cost of eight miles, including a fair proportion of the charges for the Wellington terminus was £49,713. The hurried collection of in formation on which the contract was based caused both engineers and contractors to be misled as to the cost of the stone. In the hills alongside the line the stone proved unfitted for sea facing, and there was a consequent change of plan, and the additional cost stated ; 27 miles, includ ing the Summit tunnel, were under con tract. 