THE Grey River Argus. PUBLISHED DAILY. TUESDAY, SEPTEMBER 5, 1871.

Grey River Argus, Volume XI, Issue 970, 5 September 1871, Page 2

THE Grey River Argus. PUBLISHED DAILY. TUESDAY, SEPTEMBER 5, 1871.

Tue report of the Hon. Mv Yogel as to the subjects which occupied his attention while in England, was laid before both Houses of the General Assembly on the 30th August. It embraces the negotiations as' to the Californian mail contract, the loans, the defence of the Colony, the New Zealand Coal Fields, the proposed railways, railway plant and materials for Canterbury arid x the Waitaki bridge, the proposed submarine telegraph cable between Australia and New Zealand, the Reciprocity Bill, which was passed during last session of the Assembly, and was reserved for the signature of Her Majesty's pleasure, emigration, flax, and a project for procuring the passing by the Imperial Parliament of a measure to permit the instrument of trust funds in Colonial securities or Colonial la&ds. The report is voluminous, and quite beyond our space to reproduce, biit-we can, from time to time, review its principal feature*. The most attractive subject for this part cf the Colony at the present time is the development of our Coal Fields, for if the Californian mail service encourages the development of the Coal Fields of the Colony, not only will the cost of the service to New Zealand be very lightened, but, indirectly, results will be secured, the value of which it would not be easy to estimate. On this subject, Mr Yogel sa y S : _« While in England, I was more than once asked why the excellent coal in New Zealand— samples of which had been tried in Great Britain- -was not worked. The vessels employed in the new service ■will consume fully 30,000 tons of coal a year ; and supposing the New Zealand coal could be supplied ns cheaply as the Newcastle, N.S.W., coal, there is no reason why the whole 30,000 tons should not be supplied from New Zealand mines, if these mines were'systematically worked ; indeed, the requirements of the now service would be small in comparison with those of the vast market which so excellent a coal would undoubtedly create. Coal obtained in Vancouver's Island is very inferior, but it appears to be, at present, the only competitor with the New South Wales coal, not only amongst the islands of the South Pacific and along the west coast of North America, but also, as I am informed, in China. Were it known to ship-owners that vessels could certainly obtain coal freights in New Zealand, the Tieavy rates now cnargert oh shipments from Great Britain to the Colony would, I believe, be materially reduced. The number of immigrants it is proposed to introduce into the Colony, as well as the extensive shipments of railway plant and material which will be required, will probably necessitate the employment of many more vessels than can be loaded back with wool ; besides that the latter loading is only avilable for a portion of the year. If coal-freights were obtainable in the Colony, ships arriving from Great Britain would be able to load for San Francisco or China, and then to load home with grain or tea. The knowledge that such all round charters were obtainable would, no doubt, very greatly reduce freights to the Colony ; so that, in reality, the development of the New Zealand coal fields, would indirect^ secure a reduction in the prices of all articles of commerce which now find their way to the Colony from the Home Country."

The most important subject ,is the railway scheme, which formed such , a prominent part of the Colonial Treasurer's proposals last session^ No -doubt very much interest will be manifested in comparing the arrangement now entered into with Messrs Brogden, with the anticipations expressed last session as to the nature of the terms on which it would hepossible to secure the construction of railwrys in New Zealand. It will be remembered that those anticipations were largely based upon somewhat reliable evidence — such, for example, as newspaper reports, and brief . sketches of the nature of certain arrangements proposed by other colonies. We believe that Mr Yogel has been convinced,, by Inquiries -which he instituted in London, that he was then Informed a somewhat too favorable estimate of, the fernis upon which we might secure the introduction of a large amount of capital for constructing railways, under either a- system of guarantees or of land subsidies, aud we must now be prepared for the proposal of any different terms. It may, therefore, be quite as well, for the present, .to give in exteii&b, without further remark, Mr Vogel's report as to negotiations with Messrs Brogden and Sons regarding the proposed railway lines in the Colony. Mr Yogel says : — ' Those gentlemen had, priorto my arrival, arranged to send out. an agent, "with a surveying staff. Their object was to cause some of the. lines of ; suggested railways ' to be examined, to enable 'the firm afterwards to, make proposals tothe Govefnnient for their' construction,' should the preliminary exarni- ■ nations prove satisfactory. "Messrs Brogden were under the impression. that the Government wnnM,. in any event, defray ; the cost of their agent and his staff; and, as 1 understand, the acceptance of that responsibility ■would have been insisted upon by the agant, us a condition precedent • to rthe commencement of surveying operations by himself and his staff. Immediately after, I .arrived in London, Mr; Alexander , Brogden; M. P. (the head of the firm), waited upon me, and asked . whether Twonld advise him to send out the party, and, whether I was prepared on behalf of the Government to guarantee its cost. I replied that I was not prepared to make any recommendation on the suLject, or to guarantee the cost of tlie proposed expedition,' because.it appeared to me that were 1 to do go, f ometliinit like an. understanding would ho est:iUUhi:<l that.his firm should have the jfirsl ofFer to construct the railways; and that, thereford, a v«ry long time niight elapse, jwhilst his agent /vras making investigations or surveys, during which the Government Anight beheld bound not to take any other step? towards the initiation of a railway

system. It was my impression (I told Mr Brogden) that the Government were so bent upou proceeding with railway construction, that they would not be prepared to enter into any arrangements which, from their very nature, would involve tediously protracted references to England. Besides, I did not see why the Government should be^at the cost of the proposed surveys, since it was distinctly provided by the legislation of last session that the Government should have their own engineer and surveying staff. I added, that I should be prepared to consider proposals for an agreement, upon the basis of which somewhat more prompt measures for the construction of railways in New Zealand niight be devised. Although negotiations were uninterruptedly continued, it was only after very great difficulties on both sides, that the agreements were signed. I may with confidence assert that I have, on behalf of the Government, concluded an arrangement highly favorable to the Colony, but one which should entail upon it the exercise of great forbearance and encouragement towards the contractors who, 1 amconvinced, would not have concluded the arrangement, had they not calculated upon the Government affording to them all reasonable consideration' and aid. \ ■ ■ The Government have the power of choosing between the two agreements, and of 'adopting either or both of them, and whichever decision may bo come to, it will be absolutely binding upon the contractors. Jn negotiating wii.li Messrs Brogden, I took care that one of. tho contracts should be such as to be completely within the limits of the discretion already intrusted to the Government by the Assembly ; so that, whilst the commencement of works should be secured, the adoption of the larger contract should be a matter upon which the opinion of the Asseivthly could be taken. It did not escape my consideration that, possibly, the Assembly might prefer to enter into specific arrangements for the construction of part'cular railways, but obviously, it was not in my power to make any such arrangements. The agreements as signed, however, not only leave to the Government absolute discretion as to the railways to. be constructed, but, from the very nature, of the agreements, I ha,ve pleasure in stating that should the Government prefer, in lieu of teem, or of either of them, to make with Messrs Brogden specific arrangements for the construction of particular railways,' there will be found, ou the part of those gentlemen, every disposition to consent to such a course. In reality, therefore, what has been secured for the Colony is— power for the Government to secure the construction of railways under the provisions of either or both of the agreements, or the holding of a position which enables the Government to ask Messrs Brogden to substitute fov the agreements specific arrangements for the construction of particular railways. A'uew York, I received a telegram, from Mr Alexander Brogden, M.P., stating that he would leave Eivglaii'l for New Zealand on 23rd August, and asking that the decision between the agreements should, be deferred until after his arrival in the Colony. On receipt of that telegram, I telegraphed to Mr John Morrison, authorising him to inform Messrs Brogden that, although I was not able to say that the decision would be delayed^ I felt sure that the desire of the Government would be to show to the contractors every consideration consistent with the interests of the Colony. In order that the Government might not be prejudiced if they delayed their decision, I asked Mr Morrison toconsult Mr Mackrell, and to get. him to procure from Messrs Brogdcu such an undertaken as would, in the event of the Government con- ; senting to await Mr A. Brogden's arrival, secure that the rights of the Government under the agreements should not be in any way prejudiced or jeopardised. On reaching San Francisco, I received from Mr Mackrell a telegram statiug that Messrs Brogden had given such an undertaking as left the. Government free to decide at once between the agreements, or to delay the decision. I may observe that, compared with the terms offered for the large number cf Colonial and foreign railway enterprises that are being floated in the Lendon market, the agreements made with Messrs Bi ogden are very favorable to the Colony ; and 1 feel sure that, with proper, precautions, they will lead to the construction of . railways upon advantifgequs terms. It may be found desirable to make some alterations in the agreements; but I must repeat my conviction., that any wish in that direction on the part of the Government- will be readily responded to by Messrs Brogden, who to the last expressed themselves strongly as to the terms being rather harsh towards them, and as to their, hope that the agreements would be so worker! out as to put them iv as favorable a position as possible for giving effect to, their various provisions. I have received from the Bank of New Zealand an acknowledgement of the deposit by Messrs Brogden and Sons of securities to the value of £25,000, for the due performance of the agreements.