53

I.—la.

of Thomson, Bonar, and others, who are conducting schemes of this kind, and information as to their progress. We should get the Government Agent-General to pay the full passage-money of the men we require. Remember also that, in the case of promissory notes given, a particular form is required: these are to be indorsed by the Government, and drawn on a private firm, so as to be legal and reclaimable in New Zealand. Dr. Featherston has some experience in this, as in Wellington Province alone he was party to a loss occasioned to the extent of £40,000, on account of persons who repudiated their promissory notes or who absconded. We propose to get—■ 2,000 adult males, at £15 passage-money .. .. £30,000 3,000 others (wives and families), at £15 passage-money 45,000 2,000 children, at £710s. ~ ... 7,500 6,000 £82,000 —the item to be paid by the Government, but promissory notes to be given by the immigrants, and we were to collect the moneys from the men. We should be paid the total sum, and collect in two, three, and five years, but we could not agree as to the Government taking the risk of absconding persons — we to pay 6s. per day, eight hours; deaths to be covered by insurance by the New Zealand Government. So that the matter remains for you to act on until we feel assured, by the terms of the Government offer, that we can submit a proper offer here for the above operation. Messrs. John Brogden and Sons. James Beo&den.

APPENDIX No. 3. The Agent-General to the Hon. the Colonial Seceetaet 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 10th July, 1873. I have the honor to inform you that I had yesterday a conference with the Messrs. Brogden, at which the Hon. Mr. Hall was present. Mr. Hall, in the discussion, detailed fully the negotiations which had taken place in the colony between the Government and Mr. James Brogden. Messrs. Brogden repeated the statements made in their letter of the 12th June, which was forwarded to you on that date, and contended that they had been deceived both by the Government and myself; that, owing to the delay of the Government in giving them contracts, they had no wort to give the emigrants on their arrival, that many of them consequently left their service ; and that I had led them to believe that there would be little or no difficulty in obtaining payment of the promissory notes given to them by the emigrants, whereas their agents in the colony had informed them that only a very trifling amount could be recovered. Under these circumstances they maintained that they were entitled to be reimbursed by the Government for the whole of their outlay on emigration. It was pointed out to them that Mr. James Brogden had commenced the negotiations in the colony, and had been on the point of signing a contract, when at the last moment he declined, on the ground that he preferred that the terms of the contract should be arranged between his brothers and myself; that, in order that they might be secured against loss, I agreed that they should take a promissory note of £15 from each adult, they giving to the Government the promissory note of £10 per adalt; that this allowance of 33 per cent, might be deemed ample to secure them against loss, especially as these emigrants went out under engagement with them, and on the distinct understanding that a certain amount should be deducted each week from their wages towards payment of their promissory notes ; that the emigrants, consisting principally of navvies, were required for the public works, they were contracting for, and were not such as the Government would have selected; that the vast majority of them were single men, who, under the regulations, if they had gone out as Government emigrants, would have been obliged to pay at least £4 in cash towards the cost of their passage, &c. The discussion, which lasted two hours, ended without any arrangement which I could recommend for adoption by the Government being proposed by them. I am free, however, to admit that, if there is any probability of Messrs. Brogden losing nearly the whole of their advances from causes not in any way of their own creating, it is not unreasonable for them to expect some concession on the part of the Government. I have to-day received from them the letter which I enclose, and am inclined to think that the proposal it contains is entitled to the favourable consideration of the Government. It will be seen that the amount of the promissory notes given by the emigrants to Messrs. Brogden is £39,874 13s. 4d.; that the sum paid by Messrs. Brogden on account of the emigrants is £11,411 Bs. 9d.; and that the Government hold Messrs. Brogden's promissory notes to the amount of £18,240. To meet Messrs. Brogden's debt to the Government, and to reimburse them these advances to the emigrants, a sum of £29,651 Bs. 9d. would have to be recovered from the emigrants. If, as I understand, 525 of the emigrants are employed by the Messrs. Brogden, it appears to me that there ought not to be any great difficulty in recovering this amount, especially if the Government co-operated wiih Messrs. Brogden. But, of course, the Government are alone able to form a sound opinion on the matter. I have, &c, I. E. Peathebston, The Hon. the Colonial Secretary, "Wellington, New Zealand. Agent-General.