DIFFICULTIES OF THE NEW ZEALAND COMPANY.

New Zealander, Volume 1, Issue 33, 17 January 1846, Page 3

DIFFICULTIES OF THE NEW ZEALAND COMPANY.

We have received copies of a correspondence between the Colonial Office and the Directors of the above Company, which had been entered into with a view if possible of settling the differences between the Government and the Company, and smoothing away the difficulties of the latter, although without success. In order to effect this object it appears that two interviews took place between Lord Stanley and a deputation from the Court of Directors, on Friday, the 27th of June, and Tuesday, the Ist of July, 1845, at which each separate grievance or difficulty of the Company was discussed in turn, as follows :— •

" 1.— AS TO THE COMPANY S LANDS. " In order to an immediate arid effectual settlement of the Company's claims, so far as they relate to Lands of which the Court of Claims in New Zealand has examined the titles, and on which it has pronounced its awards, the deputation first submitted that a grant of such land', should be forthwith issued, under the great seal of the United Kingdom. " Jn reply to this, Lord Stanley expressed his doubts whether such a grant could be legally issued by the Home Government, but considered that it would at all events be impracticable, from the absence of any plans or other information hy which the boundaries of the particular tracts to be granted could be ascertained. " For these reasons, his Lordship considered the proposal inadmissable. " Waiving further discussion of these object'ons, the deputation then asked that positive instructions should be sent to Governor Grey ; or the acting Governor for the the time being to issue forth an unconditional grant, under the colonial seal, of the lands adjudicated on by the Court of Claims as above mentioned. *' Lord Stanley, replied, that as the varying circumstances of the settlementi might require in the several cases a different course of proceeding, he must consider, and decide on each case separately. "That with respect to f he Lands at Wellington, comprising about 60,000 acres, he saw no objections to giving instructions for an immediate grant (if it should not have been already issued), on the assumption that the award had been made, and the money awarded accepted by the natives. " That at Nelson also, with the exception of the lands at the Wairoa, he thought similar instructions might ac issued- *' That at Otago, as soon as Colonel Wakefield should have selected the 150,000 acres, in accordance with his agreement, date 31st July, 1844, a grant might also be issued. " Reference having been made in these discussion! to the additional payments required from the Company, either by the awards of the Commissioner of the Court of Claims, or by directions of the Governor, the deputation incidentally remarked, that as a matter of course the Company would, in consideration of all such payments, be entitled to land at the rate mentioned in the agreement of November, 1840, namely, four acres for every pound sterling, and lhat a similar claim would arise in respect to all payments for purchases of land required to be made for the fulfilment of that agreement. "Lord Stanley expressed some surprise at this claim, and intimated that he was not then prepared to admit its validity t " After some discussion, the deputation, conceding to Lord Stanley full credit for sincerity in his expressed desire to do, justice to the Company, and claiming for the directors equal credit for not desiring to advance any claim unsupported in their opinion by the strictest equity, suggested that, instead of being made the subject of renewed controversy, this, and any similar question on which a difference of opinion mi^ht arise, should be at once referred, in an amicable spirit, to the decision of two individuals of high character and station, one to be chosen by Lord Stanley, and the other by the directors, and that the determination of such arbitrators should be conclusively binding on all parties. " The further consideration of these questions was then deferred.

" 2.— THE APPLICATION OF THE COMPANY FOR A LOAN. "On the subject of an advance of money on loan to the Company, the deputation submitted the strong grounds furnished for the liberal consideration of her Majesty's Government, by the indisputable fact, that Jhe pecuniary difficulties of the Company had solely arisen from the delay in granting titles to their lands, f% which, on the one hand, land sales, their only source of revenue, had been entirely suspended, while on Ihe other, the same cause having produced a , perfect stagnation in the colony, and consequent cessation of demand for labour, a serious burden had lieen thrown on the Company for the maintainance of unemployed emigrant labourers, and for other objects from which no tinmediate return could be derived. They further pressed strongly on his Lordship's consideration the importance of any advance that might be made being on the security of the Com pany's lands alone, as the most effectual means of restoring public confidence in the value of the Company's possessions. "Lord Stanley replied, that he could not admit the validity of the grounds on which the claims for jaid from the Government was put forward j but that

this Was a point specially requiring communication with the First Lord of the Treasury and the Chancellor of the Exchequer, the latter of whom was out of town. " The consideration of the question was therefore postponed.

"3.— PURCHASES OF LAND BY EUROPEANS TROW THE NATIVES. •'The deputation strongly represented the injury and injustice to the Company, and to all persons who had purchased land from the Government at the leg-ally authorised rate of 20s. an acre, resulting from the permission given for the purchase of land from the natives, on the conditions expressed in Governor Fitzroy's two proclamations of the 26th March and 10th October, 1844; namely, the payment to Government of either 10s. or id. an acre, in addition to the price paid to the natives. " Lord Stanley, in reply, intimated that with respect to purchases under a payment of 10s. au acre, he believed that the Company need be under no apprehension of inconvenience, as it would be found that the small amount of land which had been actually purchased under the condition had cost the buyers not less than from 30s. to 355. per acre ; aud that with respect to Captain Fitzroy's subsequent proclamation, and permission to purchase on payment of Id. per acre, although the purchases actually made must of course be respected, it appeared to him an impolitic measure. " The deputation, however, observed, that, considering the nature of such transactions and the parties engaged, the real terms of purchase would never be accurately known, and they urged that the only safe and consistent course was the inflexible maintenance by the Crown of Us right of pre-emption, and the refusal to sanction any purchase privately made from the natives.

"4.— THE FUTURE SEAT OF GOVERNMENT. " Upon this question the deputation submitted the expediency of a decision being taken at once by the Home Government. They represented that all the facts requisite for the formation of a judgnent were now fully known ; and they urged that when a new Governor was about to be appointed, to the efficiency of whose administration it was of the last importance that he should enter on his duties with the full confidence of al 1 classes of settlers, it would appear to be an act of extreme impolicy to compel him to decide, at the outset of his career, a qrtestion which had excited so much conflicting feeling, and involved so many opposing interests, with the certainty that his decision must cause deep disappointment and dissatisfaction, either to the settlers at Auckland or to those at Cook's Strait. " Lord Stanley replied, that he feared that, if called on at the present moment to decide this question, his decision must, from political considerations connected with its position, be given in favorof Auckland ; and that, although in New Zealand, as in all new colonies, the question of the ultimate position of the seat of Government must be, more or less, an open one, it was not his intention to issue any fresh instructions at present on the subject, " The deputation answered, that they considered it most important that it should be referred to; and that *if his Lordship should be disposed to entertain the suggestion of the determination being made by the Home Government or should resolve to express any opinion on the subject in his instructions to the Governor, the Company will be prepared to submit to him such reasons for a preference of Wellington as the future seat fof Government, as they firmly beleiVed would, even in reference to the considerations mentioned by his Lordship, induce a very different view of the question from that which he at present entertains. Vjl

"5.— THE rUTURE GOVERNMENT OF THE COLONY**^ " The deputation stated, that on this subject the^ Company, and all persons interested in New Zealand, had regarded with the deepest interest the declarations made by her Majesty's Government during the recent discussions in Parliament ; that the Company entertained the strongest conviction that the introduction of the principle of Representative Government into the institutions of New Zealand was indispensible to the prosperous settlement of the colony ; and that it would consequently be highly satisfactory to \ know what were the precise views <>f Lord Stanley with regard to the municipal institutions referred to in the debate, and the importance of the powers of such institutions being extended to matters of higher ' moment than the mere watching, lighting, and paving of towns, and local objects of similar description. "Lord Stanley replied, that he would communicate to the deputation the instructions which he proposed giving to Captain Grey." The instructions here referred to have been already published in the Herald; and the substance of them, with reference to the above point, is, that, owing to the scattered position of the settlements, the small number of the European inhabitants, and various other reasons of a similar nature, it would be inexpedient at the present time, to establish a representative legislature, although local municipal institutions or corporations might be established with nith great ad van tag. Nothing was done at the interview of the 4th of July, except to read over and confirm the accuracy of the foregoing minute of what had passed on the 27th of June, and to glance through the instructions which had been issued to Governor Grey, which the deputation did not conceive' to be positive in reference to the settlement of their land titles to authorise them in resuming their sales of land and colonising operations. Since looking through the above return, we have received one of later date, showing a coi respondents which has taken place between the Company's Officers and Lord Stanley, of which the following is the substance :—: — The first letter in this correspondence is from Lord Ingestrie to Lord Stanley, dated the 24th of July, 1845, in which a number of suggestions are made' to the noble lord at the head of the Colonial Office, as a probable means of ameliorating the condition of New Zealand, without at the same time involving any material departure from the principles which Lord Stanley had already laid down. Lord Ingestre admits that tue instructions to Governor Grey are not such as to preclude His Excellency from giving to the people of the various settlements a real puwer of governing themselves ; but admitting this, he complains that the instructions were not sufficiently full and precise, and were not such as to assure the Company that the colonists would have that good Government which was conceived to be the sine qua non of all attempts for remedying the present disorder. His Lordship then proceeds to express the views of the Company in reference to this subject, which are in favour of municipal institutions at each of the settlements, but with much larger powers than the instructions from the Colonial office would seem to contemplate. It was conceived by the Company that these municipalities should each embrace a .considerable district, and that th<s "qualified" natives resident therein should have a right of voting-. To the governing bodies of these incorporated districts, powers, it was recommended, should be given for making all ar-

rangements necessary to police, the administration of justice, the militia, and the imposition and expenditure of all taxes, except those of customs. It was thought, that for the present, every settlement containing 1000 inhabitants, should have a Municipal Connuil, with full power to make laws, not extending to life or limb, subject to the authority of the Legislative Council of the colony ; and that the latter should be more of a representative character than at present; with this view, it v*as suggested, that the Council might consist of the Governor, three Crown nominees, and a delegate fr.>m each of the Municipalities. With respect to the land titles, Lord Jngestre says, that the only alteration the Company required with respect to those lands to which they have awards, was that the Government should put an end to the only doubt which would remain by undertaking itself to compensate the natives and secure their assent. Asjto the residue of the lands claimed by the Company, it was suggested that an unconditional title should be given to any lands selected by them in the middle island, and to f 150,000 acres of Wairarapa, the Government undei taking to settle with the natives as in the case of the awarded lands. This it was thought would give the Company a sufficiency of land for colonising purposes for a considerable time, as it would be placed in possession of 655,000 acres, viz, 355,000 acres about the present settlements, 150,000 acres at Otago, and 150,000 acres at Wairarapa. , As the Company's claims extend to about 1 ,203,000 acres, there would still be about 550,000 acres, after the above settlement, and it was proposed tKat the Government should give an absolute grant to any land which might be selected for this extent in the Middle Island. The second letter, which bears date the sth 6* August, 1845, is from George Frederick Young, the Chairman of the Company,^ to Lord Stanley, commences by alluding to some negociations which appeared to have taken place between the Company and the Colonial Office, inconsequence of the above letter, from which negoeiations it was hoped that somearrangement might be made which would enable the Company to renew its colonising operations, although tne measures which the Company had advocated had not obtained approval in accordance with their wishes. In the anticipation of some final arrangement being made, the Company now urged upon the attention of the Government the absolute necessity of a loan to enable them, by the purchase of a large tract ofland, and by the opening of roads, &c, to carry out with benefit to the colony the objects for which they had been established, The financial embarrasments of the Company having been mainly brought about by the stoppage of their land sales, in consequence of the disturbed state of the colony, they had, it was conceived, a fair and equitable claim to assistance from her Majesty's Government. With reference to the present condition of the Company, Mr. Young says — "Though during this long period our establishments were reduced, by a rigid economy, to a condition scarcely compatible with justice to the many deserving individuals engaged in our service.they necessarily occasioned a further heavy drain on our resources: and, as the t result of this state of things, we now find ourselves in this condition— that now having expended our jg200,000 of paid op- capital, together with the sums received for land sales, and '£76,soo borrowed on our remaining unpaid < capital, the whole amounting to between £500,000 and #600,000, of which our proprietors have only received in dividends £44,697, we are left with ascertained liabilities to the extent of upwards of £60,000, which we have no preseut means of meeting, and still less have we any funds applicable to the renewal* of colonization." The amount of the loan which was deemed necessary was £150,000, which it was proposed should be guaranteed to the' Company fora period of seven years if required by them, and should be secured upon their lands in such a manner as not to interfere with their sale i the method of liquidation being by an annual payment to the Government of half the amount reserved to the Company from the landsales. The following objectsare enumerated as those to which the loan would be applied Among these may be first enumerated the means of satisfying the existing claims of the natives, and of meeting the possible heavy payments that may be necessary for future purchases. Secondly—The reorganization of an efficient surveying staff, and pressing forward the surveys with sufficient vigour to obviate the recurrence of former evils resulting from thearrival of settlets before the lands were marked out for occupation. Th'rdly — the discharge of outstanding claims in the colony and also in Eng- | land, estimated at about £8,000. Fourthly — The completion of the engagements entered | into with the settlers at Nelson for expenditure for reiigous and educational purposes, and for steam navigation. Fifthly — The adoption of all the measures necessary; according to the plans previously described, for establishing the settlements of New Edingburgh at Otago, and a Church of England settlement at Wairarapa, as arranged. Sixthly — Placing our establish* meats in a state of efficiency, and raising 'the salaries of our officers to that just amount,' below which, under extreme pressure, they have been for some time unavoidably reduced. To thes3 may be added the restoration of 1 the confidence of the public in the stability of the company, and in the re-establishment of its' amicable relations with the Executive Government, which may be confidently exspected as the result of a punctual performance of its engagements, of tbe prompt discharge of its pecuniary obligations, and of the unequivocal manifestations of cordiality that would be exhibited in a liberal assistance from Her Majesty's Government. To 'effect these purposes in such a manner as may give reasonable hopes of success, to enable the company to fulfil its engagements during their progress, and to supply the means of rendering its real estate available for tepaymentof the loan which we may now obtain, we calculate that, with the most exact economy,the sum of £150,000 will be requisite. The third letter in the return alluded to is one from Mr. Hope on the behalf of Lord Stanley, dated the 7th of August, replying to Lord Ingestre's letter, of the 24th July. With respect to the Company's claims to land, Lord Stanley conceives that they ought to be put in immediate possesion of all land for which they have awards, this was the utmost limit to which he could sanction any compulsory proceedings against the natives, and whatever was beyond that limit must

be affected by their consent and acquiescence, ir» obtaining which however the Company might rely on the cordial assistance of the Government. With respect to the 'application of these principles to the several lands purchased of the Company on which the colonial olfice possesses any information, as well as to their general application, Mr. Hope proceeds as follows :— "In the absence, however, of the full and authentic details which would be required for that purpose, Lord Stanley will instruct the Governor to proceed, in conformity with those principles, according as they bball be applicable to the several cases before him, and when the circumstances are such that the acqiescence or consent of the natives is necessary to enable the New Zealand Company to obtain possesion of the lands comprised in these purchases, the Governor will did. and co-operate with the Company's agent in, bringing to a prompt and satisfactory conclusion the negotiation with the natives for the purchase or extinction of their rights. "Lord Stanley is also gratified to perceive from subsequent information as to the views of the Company, that ii may be in his power to confer upon them some further definite advantages in. reference to their proposed settlements at Otago Lord Stanley will at once instruct the Governor to make to the Company an unconditional grant of the 400,000 acres, purchased at Otago, excluding of course, the land reserved to the natives; the Company engaging within a limited period, to select the 150,000 acres proposed, and also such further quantity thereof as they may desire and to re-convey the remainder to the Crown. " With respect to the purchase in the Wairarapa Valley, which U at present limited to 150,000 acres, Lord Stanley consents to the extension of that limit to 300,000 acres, and Lord ' Stanley will direct the Governor to use his best exertions for securing the immediate consent of the natives to their removal from the land which may then he selected. " 1 am further to remark, that as respects the arrangements with respect to the purchase in the VVairarapa .Valley, sanctioned by Capt. Fitzroy, Lord Stan.ey has in his despatch to Capt. Fitzroy, 30tli November, 1844, pointed out the objections which he entertained, to the entire removal of all restriction as to 'figure and continuity of blocks, which had been conceded to the company as to the 150,000 acres to be selected in the Wairarapa Valley, and as to a further quantity of 250,000 acres to be selected elsewhere within the limits of the Company's district. " Lord Stanley stated iv that despatch that lie did not on that account intend to disallow the agreement entered into by Capt. Fitzroy with the Company; but his Lordship instructed Capt. Fitzroy that in case of any similar accommodation being" offerel to the Company, such conditions should be attached tr» the waiver of the Crown's right of pre-emption, a«s should be sufficient to protect the interests of the Crown, and of the public from the evils which possibly might result from an injurious exercise of the right of selection. * l Lord Stanley is led to believe that the Company are not unwilling to consent to some limit being now placed on their right of selection in the lands in. Wairarapa Valley, and that the Company will undertake to make their selection in Wairarapa Valley, in one continuous block, or in as small a number of . blocks as circumstances will permit, and that no such' block shall contain less than 20,000 acres." Lord Stanley also conveys iv this letter his readiness to accede to the proposals of the Company, for transferring to them, for a limited period, the pre-emp-tive rights of the Crown in those parts of 'the colony generally known as the Company's districts ; and for ascertaining and registering the natives' title to land, (particularly in the Middle island). It is suggested, that the Company should make its selection of land with the least possible delay, and Lord Stanley expressed his readiness to afford any facility for this purpose, or even to send to the colony a properly qualified person to assist the company in their selection of land, to aid in surveying the exterior boundaries of such selections, and to judge of the reasonableness of the terms of any purchase >which the company might make from the natives with reference to the right of the former to reimbursement in laud in respect of moneys paid for such purchase. With respect to the legislative and municipal institutiong of the colony, 'Lord Stanley recognises in the peculiar circumstances of the settlements in New .Zealand, sufficient -grounds for giving to such settlement a full measure of municipal authority, " as well as respects police and police regulations, as also with respect to the administration of justice, and to the imposition and expenditure of the taxation necessary for the local affairs of such settlements." On the subject of' militia, his lordship refers the company to the 'local ordinance, and with regard to the general legislature of the colony, he approves of its being made to partake so far of a representative character as ■to have delegates from the several municipalities, although not to such an e%tcnt as to give these delegates a majority in the Council. In conclusion, however, it is remarked that the constitution and powers of the Legislative and Municipal bodies are matters which require mature deliberation before Lord Stanley can form any definite opinion respecting them. The Chairman of the Company (Mr. Young) replies on the Bth August to this letter, in which he concurs in most material points with the propositions and opinions of Lord Stanley, although with regard to the militia, he conceives that the local ordinance is inefficient, and that the power of organising militia under certain general regulations, should be vested in the municipalities. There is a second letter from | the company of the above date, having reference solely to the Company's claims upon the Government for compensation in land proportionate to the amount of their expenditure, and by an account appended to this communication, it appears that the gross amount of the expenditure has been £422,233 ss. 5d.; on account of which the Company claims 1, 168,094 acres of land. Besides this compensation in land was claimed for items which could not t'aeti be estimated, consisting of additional payments to natives, future surveys, &c. Attached to the return, is a letter from Dr. Evans, alluding to the pending negociations between the Government and the Company, and impressing upon the latter, the necessity of ensuring some compensation to the settlers. Upon this point he says — "To give us at this late period a bare fulfilment of the original contract, after the lapse of more than six. years since you received our purchase money, would be of little value to the majority of us. Having been a director of the Union Bank, I know that there is scarcely one of the original land orders that has not been mortgaged at the rate of 10 per cent per annum ; and that men like myself have made ruinous sacrifices in the hope that ultimately they might redeem their property. Ido nut now presume

to say whether the Government or the Company is morally responsible for this state of things ; but it i« clear, that the settlers ought to be indemnified, and my sole object now is to prevent that subject from being overlooked in the final settlement of the question." The substance of the Company's reply, which closed the correspondence, is as follows :— «• I am instructed to inform you, that after giving the subject the most attentive consideration, the di rectors regret that they are unable to admit the justice of such a claim as preferred against the Company. With respect to your own case, it is to he observed, that fiom the active share which you took in the earlier proceedings, they have always been m the habit of considering that the transactions of the Company and the responsibilities incurred, whatever these may have been, there was scarcely any one person so thoroughly and essentially identified as yourself. " With respect to others, the directors have long feU the very distressing situation in which the colonists have been placed, have been sensible that such must inevitably be the result of th» protracted nonadjustment of the questions relating to land, and have lost no opportunity of impressing this fact upon the Government in the most forcible manner in their power. But to the misfortunes thus alluded, the Company has itself been subjected in a ruinous de»ree ; and deeply as they lament the circumstances which you describe, they conceive that they are not responsible for it, and cannot justly be expected to make compensation -. produced as it has been, by causes, under whi Ji they have been fellow sufferers with the colonists, over which they have no control, and against which, it has devolved upon them, on behalf of all, to struggle without intermission of exertion, until almost the present moment, without the prospect of success. " In conclusion, I am instructed to state, that occasion will be taken from your letter, to bring the subject again under the immediate consideration of her Majesty's government.' 1