D.—No. 1

40

CORRESPONDENCE WITH THE

sion of the amplest details connected with everything relating to the class, numbers, date of sailing, and port of arrival of the emigrants to be expected this season. As many of the immigrants require to be located in special settlements, and employment has to bo found for others on the public works, you will perceive that the Government are, in a great degree, prevented from determining what works are to be executed in the meanwhile. In directing your attention to this matter, I have not overlooked the fact that, in your letter of the Bth February, you state that " you hope soon to be in a position to enter into the question of emigration in all its bearings." At that time, much of the result of the forthcoming season must have been more or less conjectural; but I need hardly repeat, that it is very necessary for the Government to receive the fullest detailed information of the actual results of your negotiations at the earliest possible period. J. D. Oemond.

No. 29. Memorandum for the Agent-General, London. (No. 55, 1872.) Public Works Office, Wellington, New Zealand, 13th May 1872. The Government have had under consideration your letter of the Bth February, detailing your efforts to place the shipping arrangements of the future on a better footing. Although they regret that you have for the present been unable to make any material reduction in the rate either of emigrants passage or of the freight of railway plant, they are nevertheless fully aware of the many and long-standing difficulties which have thus far rendered these efforts ineffectual. The feeling against the shipping monopoly that has hitherto prevailed, which my predecessor mentioned in November last as existing in the Colony, has continued to increase, and the views expressed in the letter of Mr. Coster, forwarded to you through the Hon. Mr. Reeves, and again in that of Mr. Murdoch now enclosed, may to a certain extent be considered as representing the dissatisfaction which pervades the mercantile community. The Government.are persuaded that no one feels the importance of increased shipping facilities more than you yourself do, and they rest assured that your continued attention will be given to the subject. But in the event of your not seeing your way to make permanent arrangements with any new firms, the Government authorize you to take the matter into your own hands, and, as a temporary measure, to charter vessels, say, to Auckland, Wellington, and Canterbury, and load them at such rates as may suffice to cover their expenses. With the large tonnage for emigration and railway material at your command, there would probably be little difficulty in your despatching ships almost independently of ordinary freight, but this would not altogether answer the object in view. The advantage which would accrue to the Colony if the ordinary rates of freight and passage were reduced to something like those charged to Australia is obvious ; and as this can probably be attained in the first instance only by your chartering vessels and throwing them open, the interest of all classes of the Colony would in such case be materially promoted by your doing so. The system under which such an arrangement can best be given effect to, the Government leave to your own judgment; but you will please take care that all classes of ordinary shippers are placed on an equality. As by the incoming mail you will probably have furnished further information on this subject, I will again address you next month. J. D. Ormond.

Enclosure in No. 29. Mr. D. L. Murdoch to the Hon. J. D. Ormond. N.Z. Loan and Mercantile Agency Company, Limited, Sir,— Auckland, 4th May, 1872. I have been informed that Dr. Featherston has considerable difficulty in providing tonnage for his requirements in London ; and in the interests of the Government, I have the honor strongly to recommend that Dr. Featherston be empowered' to intrust to some agent the chartering of vessels for a lump sum, either for the outward passage only, or for the round to New Zealand and back to London, feeling assured that by such course the Government will get their emigrants and railway material conveyed at rates very considerably below those now paid. The trade to the principal ports of New Zealand has long been virtually a monopoly to the firm of Shaw, Saville, and Co., to the injury of commerce, and to the detriment of local interests in the Colony. Any attempt to upset this monopoly has hitherto proved futile, from many causes, but chiefly from the want of any well-sustained opposition, their policy being, as soon as an opposition vessel is put on the berth, to drop freights to a rate which inevitably leaves a loss to their opponents ; but no sooner is the opposition withdrawn than rates are raised, to reimburse any temporary loss sustained by Shaw, Saville, and Co. I have little doubt that Dr. Featherston will ere now have experienced this, but with the amount of freight and passengers at his command, he is in a position to secure the very best terms for shipping to the Colony. if the services of this Company can be availed of by tho Government, they are very heartily at your disposal; and as we are now the largest exporters of wool from New Zealand, besides having the command of large amounts of other freights both from and to the Colony, we are in a position materially to assist in loading vessels for the Government. Our commission would be 2-| per cent, on the charter party, and a like rate on freights other than such as are due by the Government. I will forward a copy of this letter to Mr. Larkworthy, our Managing Director in London; and if you favour the proposal now made, and will recommend Dr. Featherston to avail of the services of the Company,