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I may add that I am approving passengers for the reduced rates under the existing arrangement up to the end of February, after which any fresh arrangement will come into force. It is, however, very desirable that any fresh arrangement should be completed as soon as possible, as the notices relating thereto should be prepared and circulated at an early date. I am, &c, W. B. Peboeval. Thomas Johnson, Esq., Director, New Zealand Shipping Company (Limited).

Shaw, Savill, and Albion Company (Limited), Deab Sib, — 34, Leadenhall Street, London, E.C., 21st February, 1895. We have pleasure in advising you that, consequent upon an arrangement of passenger rates made by ourselves and the New Zealand Shipping Company with the P. and O. Company, the Orient Company, and other Australian lines, an agreement has been arrived at between the New Zealand Shipping Company and ourselves that the passengers proceeding to New Zealand under your auspices are in future to be carried in equal numbers by them and by us. In advising you of this we desire to express our readiness to co-operate with you in the arrangements which you may desire to have made for the comfortable and satisfactory conveyance of the passengers referred to. Some modifications of the previous terms have, we are informed, been made with you by the New Zealand Shipping Company, and, while conforming to these, we are anxious to fall in with any wishes you may express in connection with the conveyance of these passengers. We are, &c, Shaw, Savill, and Albion Company, J. A. Potteb, Manager.

Deab Sib,— 13, Victoria Street, S.W., 25th February, 1895. I am directed by the Agent-General to thank you for your letter of the 21st instant, intimating your company's readiness to co-operate with him in the arrangements which it is proposed to be -made in respect to reduced rates for passengers approved by him, and proceeding by the steamers of your company and by those of the New Zealand Shipping Company's line. The Agent-General understands that the New Zealand Shipping Company and your company will be prepared to finally discuss and complete the necessary arrangements early in March. I am, &c, Walteb Kennaway. J. A. Potter, Esq., Shaw, Savill, and Albion Company (Limited).

Shaw, Savill, and Albion Company (Limited), 34, Leadenhall Street, E.C., Deab Sib,— 4th March, 1895. Owing to the writer's absence from England, we have delayed replying to your letter of 25th ultimo. So far as we are concerned, we are quite prepared to discuss details of the new arrangement with you at any time convenient to yourself. We understand that the New Zealand Shipping Company desire to have this deferred till next month, and that, in the meantime, they wish to have all the passengers, notwithstanding the fact that the agreement for the division of these commenced on the Ist instant. We are quite willing to allow them to have all the passengers during this month, although, in accordance with the agreement, we have been referring to you all applicants for reduced fares under your scheme ; but we think it would be only fair that we should have made up to us at a future date the number of passengers of which we shall be deprived by this arrangement. If you will kindly let us know when it will be convenient for you to go into details as to future arrangements, either Mr. Potter or the writer will be pleased to wait upon you. Shaw, Savill, and Albion Company, The Agent-General for New Zealand. J. W. Temple, Managing Director.

Deab Sib,-- 13, Victoria Street, S.W., 7th March, 1895. Referring to communications which have been received from both companies, the AgentGeneral understands that your company and the Shaw, Savill, and Albion Company are willing to co-operate in an arrangement under which passengers approved by him would receive passages to New Zealand at reduced rates by the direct steamers of both lines. The Agent-General further understands that it is proposed that these reduced rates will apply to the second and third classes only, the second-class fare being at the rate of £31 10s. per statute adult (the ordinary rate being £36 155.), and the third-telass at the rates of £14 14s. in a four-berth cabin, and £16 16s. to a two-berth cabin, with a free ship outfit—bedding, &c— (the ordinary rates being £17 17s. and £19 19s. respectively), and that the companies are prepared to make additions to the dietary scale, and also improve the berthing accommodation provided for the passengers by the third class, particulars of which the Agent-General will be glad to have. With regard to bringing the reduced rates of passages under the notice of the public, the Agent-General would propose for consideration that it would be desirable to fix an amount —say, £600 —to be expended by this office in respect thereto, the New Zealand Government and the companies contributing, say, £200, each for that purpose. It is understood that the arrangements for securing passages granted at reduced rates shall be carried out through this office, and that the usual commission will be allowed by the companies to the shipping agent attached thereto. The Agent-General proposes that the arrangement shall continue in force for twelve months, say, from Ist April of this year to the 31st March, 1896, so as to provide that all passengers approved by him, and whose passages are secured between those dates, shall receive passages at the reduced rates by the direct steamers of both companies.