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1873. NEW ZEALAND.

FORMATION OF NEW ZEALAND SHIPPING COMPANY, (PAPERS RELATIVE TO THE).

Presented to both Souses of tlie General Assembly by command of His Excellency.

No. 1. Mr. J. L. Costee to the Hon. the Colonial Seceetaey. New Zealand Shipping Company, Limited, SIE, — Christchurch, 15th January, 1873. In consequence of a telegram from Wellington which has recently appeared in our local papers, stating that the Agent-General in London expresses to the New Zealand Government his opinion that the emigration scheme is likely to break down unless the contract with Messrs. Shaw, Saville, and Co. is extended for a further period of two years, I am desired by the Provisional Directors of " The New Zealand Shipping Company, Limited," to suggest to the Government that it will be unadvisable to renew the contract at the present time for so lengthy a period as that suggested. I am further desired to intimate that this Company is prepared to enter into contracts with the Government for the conveyance of passengers and cargo between London and New Zealand, and with this view tc inquire from the Government what their requirements will be, and if they are prepared to enter into negotiations with this Company, either in the Colony or London. The Directors also desire me to acquaint you with the present position, and the objects of the Company. You will receive herewith a copy of the Memorandum and Articles of Association of the Company, which has been duly registered at Christchurch. The capital has meantime been fixed at £100,000, but powers are provided for readily increasing it when required. Of this amount one-half, £50,000, was offered for subscription in the Canterbury Province. Applications were received in excess of that amount, and the whole £50,000 has been allotted, chiefly to importers and exporters of influence. It is the intention of the Directors to forthwith seek the co-operation of the other Provinces, in order that the operations of the Company may be extended throughout the whole Colony, and the £50,000 capital temporarily reserved will be offered for subscription in other parts of the Colony, and it is anticipated will be taken up by importers and others whose influence will assist towards the successful carrying out of the objects of the Company, which are, to secure to the Colony increased shipping facilities, to check the absolute monopoly hitherto held by one shipowning and shipbroking firm, which is felt to be detrimental to the trading and general interests of the Colony, and to insure the employment of a good class of ships, but not to create within the Colony a monopoly which might prove more powerful, if not more injurious, than that which at present exists. It is considered that there is room for the operations of this Company in addition to those of the firm now commanding the entire trade. Notwithstanding the failures, whole or partial, which have attended previous efforts made here, in other parts of the Colony, and in London, to obtain the objects we have in view, it is felt that the New Zealand Shipping Company must command success, from the position, influence, and earnestness of its existing shareholders, which it is anticipated will be largely added to by the co-operation of merchants and others resident in other Provinces, and from the fact that its proprietary will be purely Colonial, directly interested in attaining the objects sought by it, and that the direction of its affairs will rest in the Colony, free from and unknown to the influences which appear hitherto to have effectually militated against the establishment of a second line of trading vessels between London and New Zealand. The Directors have arranged with one of their number, Mr. C. W. Turner, a gentleman of high commercial standing and ability, to proceed to London by the outgoing San Praneisco mail steamer, to represent and act for the Company at that important point. Mr. Turner will be furnished with full and ample powers and means, —will immediately on his arrival place himself in communication with the Agent-General,—and very shortly thereafter will be in a position (there can bo little doubt) to meet a portion of the requirements of the Government, probably for various ports in the Colony, certainly for Canterbury. Mr. Turner will wait upon you personally during the stay of tho "Dacotah" in Wellington, and lam to bespeak for him your kind consideration. He will fully I—H. 10.