Skilled Workers from England.

The representatives of the contractors, Messrs Baynes (manager) and McCandlish (engineer), together with a body of skilled workmen, arrived in New Zealand in December, 1859, and commenced preliminary operations. On 21st December the Provincial Council passed the Lyttelton and Christchurch Railway Ordinance, validating the contract made by the Commissioners and authorising the work. The Ordinance required the assent of His Excellency the Governor, but on being submitted to him his assent was withheld, as he was advised by the Attorney-General that the powers proposed to be created by the Ordinance were in excess of the constitutional rights of the Province. It became necessary, therefore, to promote a Bill at the next sitting of the General Assembly in order to obtain the necessary powers. The Loan Ordinance was also held up until these powers were obtained. In consequence, the Provincial Government was not in a position to comply with the terms of the contract with Messrs. Smith and Knight. It was suggested (seeing there was little doubt that the legislation required would be passed in due course) that the final ratification of the contract be postponed for a further four months, but as at the end of April the Provincial Government was not able to find the money, the contract was terminated by the contractors.