3

D.—4

Zealand Shipping Company (or any one else), the conditions of that contract may materially affect my views, or even make them impossible to carry out at all. Under these circumstances, I think it best to wait till I hear what Parliament has decided, which I suppose I may expect to do by cable in a few days. I have, &c, The Hon. the Minister for Immigration, Wellington. F. D. Bell.

No. 6. The Hon. E. Eichardson to the Hon. the Premier. Sir, — N.Z. Shipping Company (Limited), Wellington, 3rd August, 1883. In compliance with your request this morning, I wired to Christchurch for a statement showing what had taken place, as between Messrs. Shaw, Savill, and Company and the New Zealand Shipping Company, in connection with the initiation of the direct steam service. Doubtless the arrival of the "Catalonia" in Lyttelton this morning has prevented my receiving a reply, as the officers of the company will no doubt be in Lyttelton. I therefore now do myself the honour to forward you the following statement, which is substantially correct, but without dates, as it is given from memory : The offer made by Mr. Coster on the Bth August last year was made with the concurrence of Messrs. Levin and Co., the agents for the Shaw-Savill Company ; and by arrangement with them, if that offer had been accepted, the two companies were to run their boats month about. In the following October the New Zealand Shipping Company decided that a steam line must be started and that without loss of time. They therefore cabled Home to order three boats to be built, feeling sure the Shaw-Savill Company would do the same with a view of joining them in the service. They also cabled Home instructing the London manager to look for steamers to charter, and to advertise at once a direct line of steamers to New Zealand. The "British King" was chartered, and the line advertised, the first boat, the " British King," to start from England on 20th January this year. Application was made by our London manager to the Shaw-Savill Company to follow the " British King " with a steamship in February, which was declined by them; and, consequently, there was no boat leaving England in February, and the New Zealand Shipping Company here had to charter the " Fenstanton " to fulfil their engagements for return freight, made in anticipation of there being a steamer from Home in February. The New Zealand Shipping Company then chartered the "British Queen " for March, and applied again to the Shaw-Savill Company to send a boat out in April. This was refused, on the ground that the time had not come for such a fast service as that initiated by the New Zealand Shipping Company. The New Zealand Shipping Company then chartered the " lonic " and " Doric," and the Messrs. Shaw-Savill Company were informed that, if they joined in the service afterwards, it would only be on the condition that they shared the cost of the whole business from the first start. Since Mr. Coster arrived in England last April he, as managing director of the New Zealand Shipping Company, has seen Mr. Galbraith, who, I believe, holds a similar position in the Shaw-Savill-Albion Company, and no reference to the matter has been made by the latter; consequently the New Zealand Shipping Company continue running the service by themselves. I have, &c, The Hon. the Premier. Edward Eichardson.

Enclosure 1 in No. 6. Mr. Isaac Gibbs to the Hon. E. Eichardson. (Telegram.) Christchurch, 3rd August, 1883. Mr. Coster has taken his letter-book with press copies cablegrams in it re alternate despatch steamers, but following is extract from minutes of 30th October last : "It was resolved, That, in view of the action of the Government in calling for tenders for a direct steam service to commence in April next, and Messrs Shaw, Savill, and Company's action in advertising a steamer direct to New Zealand, it is necessary to instruct Mr. Strickland to arrange for the charter of steamers with option of purchase, and to agree to an alternate despatch monthly with Messrs Shaw and Savill, commencing promptly." The following is extract from minutes of 9th January : " Direct steam— This subject again occupied the attention of the Board, and it was decided that, as the amalgamated companies had declined the overtures of this company for an alternate monthly despatch of steamers, the London manager should be instructed to make no arrangement in this direction without special reference to the directors in the colony." The Hon. E. Eichardson, Occidental Hotel, Wellington. Isaac Gibbs. Memorandum. —Since this telegram was handed in by me yesterday I have received by mail two more extracts of the minutes of proceedings of the Shipping Company's Board at their meetings on the 14th and 28th November, 1882, which I now supply for the information of the Government. —Edward Eichardson, 4th August, 1883.

Enclosure 2 in No. 6. Extract from Board Minutes of 30th October, 1882. It was resolved, That, in view of the action of the Government in calling for tenders for a direct steam service to commence in April next, and of Messrs Shaw, Savill, and Company's action in advertising a steamer direct for New Zealand, it is necessary to instruct Mr. Strickland to arrange for the charter of steamers with option of purchase, and to agree to an alternate despatch monthly with Messrs Shaw, Savill, and Company, commencing promptly.