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repeated urgent request of the mercantile community of Otago, established a line from London to Port Chalmers, composed of the finest ships the Clyde could produce, built expressly, at great cost, for the service, and fitted in every respect to meet the requirements and to carry out the views of the New Zealand Government in conveyance of emigrants. Looking to the satisfactory nature of the past service rendered to the Government, and the increased and improved transit facilities given, as stated, to the trade of so important a portion of the Colony of New Zealand by the Albion Shipping Company, was it too much for that Company to expect that it would have had at least an opportunity to tender with its opponents for the Government requirements, in the way of shipping, from Clyde and London to Otago ? I am very sure that such would have been more satisfactory to the people of Otago, with whom the Albion Shipping Company have had so long a satisfactory connection, than that the contract to that province should have been given, without competition, to a Company of recent origin, and with comparatively little connection in that quarter. lam told that the object of the Government in giving these repeated contracts without public tender to the New Zealand Shipping Company is to put down a monopoly, but this cannot apply to the Albion Shipping Company, in regard to whose exclusive trade from Clyde I have never heard a word of unfavourable comment from the Government or the public, and whose advent to the London trade has been followed by ano inconsiderable reduction in the rates of freight previously ruling. That Company has now extended its operations to all ports in the Middle Island, but I am under no dread that the commercial public of that portion of New Zealand will thereby be under any apprehension of monopoly. They have the experience of tho past in reference to Otago to assure them that the extended service will be so conducted as to give satisfaction to shippers and importers. I trust the Government will have an equal confidence, founded upon a like experience ; and that they will not consider it needful to continue a policy injurious to the well-being of a Company which has hitherto served them faithfully and satisfactorily ; and upon which grounds I think you will admit its thus subsidized opponent cannot lay superior claim to the preferential patronage being bestowed upon it by the Government of New Zealand. Apologizing for thus trespassing so far upon your valuable time, I have, &c, The Agent-General for New Zealand, London. James Galbeaith.

Enclosure 3 in No. 19. The Agent-Geneeal to the Managee, New Zealand Shipping Company. Sic, — 7, Westminster Chambers, 12th January, 1877. I have the honor to inform you that Mr. Galbraith has written to me that the Albion Shipping Company are not prepared to accept the Clyde shipping business under the terms of tho contract between the Government of New Zealand and the New Zealand Shipping Company. I have, &c, Julius Vogel, The Manager, New Zealand Shipping Company. Agent-General.

Enclosure 4 in No. 19. The Agent-Genebal to Mr. J. Galbeaith. Sic, — 7, Westminster Chambers, 12th January, 1877. I have the honor to acknowledge the receipt of your letter of the 11th instant. I will communicate its contents to the Government of New Zealand, aud ask them what, if any, action I am to take concerning it. You will readily recognize that without instructions I cannot enter into a discussion upon the points you raise. I shall communicate to the New Zealand Shipping Company your decision not to take the proposed share in the contract. I have, &c, Julius Vogel, James Galbraith, Esq. Agent-General.

Enclosure 5 in No. 19. Mr. J. Galbeaith to the Agent-General. Deae Sic Julius Vogel,— 15, Vincent Place, Glasgow, 12th January, 1877. It has occurred to me that your impression of the New Zealand Shipping Company not being bound to the Clyde service may have arisen from what is stated in clause 12 (b) of the new contract. But the contract is dated 16th November last, and at that date there was not "in existence " any contract in Scotland for conveyance of New Zealand emigrants, the last of the 1,300 emigrants for Otago under our last contract having been despatched by the " Marlborough " in October. I have, &c, The Agent-General for New Zealand, London. James Galbeaith.

Enclosure 6 in No. 19. The Aoent-Geneeal to Mr. James Galbeaith. Deae Me. Galbeaith, — 7, Westminster Chambers, 13th January, 1877. lam in receipt of your letter of yesterday's date. I did not mean to express any opinion as to the New Zealand Shipping Company's liability. At the time I saw you I had only looked over the agreement. The Government in New Zealand will probably instruct me on the subject. 1 have, &c., James Galbraith, Esq. Julius Vogel.