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I beg to say that I cannot understand the remarks of Sir Julius. Vogel on this matter ; they consist more in suggestions that conditions may be added to the Crown grant, than in assertions that they will be added. I have therefore sent him a copy of this letter, with a request that he will explain himself to you. I have, Sec, The Secretary for Grown Lands, Wellington, N.Z. J. Broomhall.

No. 18. Mr. Broomhall'to the Secretary of Crown Lands, Wellington. Sir,— The Manor House, Penge, Surrey, England, 27th March, 1878. I beg to enclose letter dated 12th March, 1878*, copy of which I have sent to Sir Julius Vogel, as intimated therein, who, no doubt, will endeavour to explain to j^ou what is a mystery to me. His views appear to be that I have no power to assign (which I deny) any part of the land to others, and that I and my colleagues must send out the 666 people, build the 166 houses, and bring the 10,000 acres into cultivation by money taken from our own pockets. It is useless to point out that the origin and root of the contract is my letter and memorandum of the 23rd November, 1876, in which it is distinctly set forth that " every person in Europe to whom we sell 50 acres of land, improved or not improved, we shall require to send out one emigrant at least, tho purchaser and his wife and children to count." It is useless to maintain that it matters not whether we pay the expenses of emigration, or contract with the emigrants to pay them, whether we build the houses or contract with the emigrants to build them, whether we cultivate the land or contract with tho emigrants to cultivate it. I say it is to the interest of the colony that we send out people who shall be capable of making contracts with us to pay their own passage, to build their own houses, and cultivate their own land; that it is not for the interest of the colony that wo send out paupers or men who have no capital; and that the essence of my letter of the 3rd November, 1876, is that " capital and labour, free from restrictions, is the only true base of mutual prosperity," and that that letter and those statements are the root of my agreement with the Government. Sir Julius Vogel has intimated that there may be conditions in the Crown grant of a restrictive kind, the nature of which he has not explained ; but, so far as I do understand them, they appear to place me in the same position as Colonel Feilding and Mr. Vesey Stewart—that is to say, when the people have been sent out, when the houses are built, and when the land is cultivated, that then the Government will issue Crown grants to my nominees, and Sir Julius Vogel ignores the fact that my contract is essentially different to that with either of those gentlemen. I pay the purchase-money in full, I make a deposit of £12,500 in bonds, to be forfeited if I fail in sending out one of the 666 adults, in building one of the 166 houses, and cultivating one of the 10,000 acres ; neither Colonel Feilding or Mr. Stewart paid purchase-money, nor made a deposit. I have told Sir Julius Vogol that I place no reliance on his suggestions, and that I appeal to the conditions of the agreement for a Crown grant free from all restrictions but those specified in the agreement under which I can give a good title to all the land; and that the penalty, and the only penalty, for the non-fulfilment of any part of the 666 adults, the 166 houses, or cultivation of the 10,000 acres, is the forfeiture of the £12,500 New Zealand 4-| per cent. Bonds. I trust you will not consider me importunate or dogmatic; tho issue raised is vital, as people here will not invest in the purchase of land respecting which there can be any doubt as to an unconditional title, nor will I ask them to do so. I am as firmly of opinion now as I was when in the colony, that New Zealand offers great advantages for the employment of the surplus capital and labour of this country, and that a properly organized body will direct both, but I am equally convinced that one is of no use without the other; and I will be no party to sending a single man to the colony who is unable to pay his own passage money at the least. I have, Sec, The Secretary of Crown Lands, Wellington, New Zealand. J. Broomhall. * Enclosure 1 in 17. By Authority : G_o_GE Dl_S_u_r, Gk>vemi_ent Printer, Wellington.—lB7B. Price Gel.]