i.
41
Now as to the pipe line, without which the reservoir
would be practically useless.
It seems to me that the construction of a pipe line,
or of some form of watercourse, must have been contemplated
from the very beginning as part of the whole scheme, for
without it the reservoir would be a mere white elephant.
In a letter dated 10th April, 1894, Messrs. Butter-
field & Swire submitted a plan of the proposed pipe line,
& by a letter dated 16th April, 1894, the Government agreed
to the construction of the same, subject to two conditions,
namely a payment by the Company of $1 per annum, & a
reservation by the Government of the right to dispose of
the land across which the pipes pass, subject to a right
of entry reserved to the Company for inspecting & repairing
the pipes.
It seems to me that these two letters form a complete
agreement with regard to the pipe line & that the rights
of the parties depend thereon.
Subsequently the Government issued a document des-
cribed as a permit, which states that permission is granted
to the Company to lay a pipe line for one year. The only
available copy is dated 8th June, 1917, & it would appear
that a fresh permit was not issued every year, but that at
the end of some years a notice of extension was either
written or stamped thereon, whereas for other years there
is apparently not either a permit issued or an extension
noted. I will consider the effect of this permit later.
As to the agreement to be collected from the two
letters, it seems to me to be an agreement that the Govern-
ment will permit a pipe line to be laid as per plan for an
3.
I