D.—No. 10.

10

PAPERS EELATIVE TO THE PEOPOSED

Enclosure 5 in No. 4. . John Moeeison, Esq., London, to the Provincial Seceetaey, Nelson. Office of the New Zealand Government Agency, Sir,— 3, Adelaide Place, King William Street, London, April 22, 1869. I do myself the honour to acknowledge the receipt of your letter No. 14, of 4th January, 1569. Having carefully given my attention to its contents, I duly note — Ist. That the Government do not desire that I should in the first instance appeal to the general public relative to the Nelson and Cobden Bailway ; rather that my efforts should be directed to making their proposals known to capitalists likely to entertain them. 2nd. That they deem it unnecessary to place at my disposal any considerable sum for expenses, but consider an allowance of one hundred pounds (£100) per year, during the time the matter is intrusted to my care, will enable me to defray any items of expense I may be put to, and will likewise afford me some remuneration for the time and attention I shall have to devote to it. 3rd. That should responsible persons be prepared to supply or raise the necessary capital, on being satisfied of the correctness of Mr. Wrigg's report by inspection of the line and the country to be granted for its construction, I am authorized to undertake for Government the payment of one-half the expense, say not exceeding £1,000, of sending out a qualified person, to be approved of by myself, to go over the ground for that purpose. 4th. And further, should responsible persons be found to undertake, conditionally or otherwise, the construction of the line upon the terms and conditions expressed in " The Nelson and Cobden Bailway Act, 1868," who will give satisfactory security, and will enter into a contract to that effect, the Government are prepared to pay me, by way of commission for the negotiation, the sum of twelve hundred and fifty pounds (£1,250) on the execution of the contract, and a further sum of twelve hundred and fifty pounds (£1,250) on the completion of the work. With regard to the views of the Government defined in clause 1, I do myself the pleasure to state that I will strictly adhere to their instructions, and will confine my attempts at first to making known in eligible quarters the offer which the Government have authorized me to make. Concerning the sum of £100, which the Government considers will enable me to defray expenses, and afford also some remuneration for my time and attention, I beg you will have the goodness to inform me if it is intended that out of the sum in question are to be paid the necessary expenses I may have to incur for professional advice—legal and engineering ? I apprehend not; but your instructions clearly refer to " any items of expense you may be put to ;" and as they do not provide for the material expenses mentioned, until you otherwise instruct me, I shall have to recognise your directions, and control the expenditure for all purposes whatsoever to the sum named by you. Provided I see that it is obviously to the advantage of the Government to contribute toward the expenses of sending some qualified person to the Colony to survey the line and the character of the country to be granted for its construction, I will do so, but not otherwise; for I shall scrupulously avoid incurring or involving the Government in expenses, except of an essential character. Tendering my thanks to the Government for the remuneration they propose to award me for my services, I have, <fee., The Provincial Secretary, Nelson. John Moeeison.

Enclosure 6 in No. 4. John Moeeison, Esq., London, to the Supeeintendent, Nelson. Office of the New Zealand Government Agency, Sir, — 3, Adelaide Place, King William Street, London, 23rd April, 1869. I have the honor to transmit the enclosed communication from Colonel Maude upon the subject of the Nelson and Cobden Bailway, which I have received since writing my letter to you on the 20th instant. The limited time at my command, incident to the departure of the mail, prevents me offering any remarks upon the views and suggestions therein alluded to by Colonel Maude. I therefore submit it wdthout any, reserving such as I shall have to make for the following mail. I have, <fee, John Moeeison.

Sub-Enclosure to Enclosure 6 in No. 4. Colonel Maude, London, to John Moeeison, Esq., London. Sic, — Army and Navy Club, 21st April, 1868. With reference to the proposed railway between Nelson and Cobden and Westport, New Zealand, I have the honor to inform you that I have endeavoured to make myself conversant with the whole of the details, and the probabilities of our being able to obtain the necessary capital in this country. With this view I have confidentially consulted Colonel Clarke, E.E. ; Mr. Jennett Browne, Assistant Secretary to the Board of Trade; Messrs. Barnett and Ellis, Stockbrokers ; Lord Alfred Churchill; Mr. W. B. Lewis, the Civil Engineer of the Victoria Bailway; Mr. Newry Barnett, M.P.; Mr. J. Briggs ; and two or three other persons of discretion and experience in such matters. I will give you, so far as lam able, a condensed statement of their advice. That in the present state of the money market the very greatest caution must be used in the preliminary steps of the enterprise. That although the advantages offered by the Nelson Government are undoubtedly large, they are to a very great extent of a speculative character, and require time and capital to develop, apart from the mere formation of the railway. That, in order to carry out such a scheme as this, it is absolutely essential that the principal part, if not the whole, of the labour required should be taken out from the mother country. That the survey only shows rather more than 500,000 acres of good