EMIGRATION OF SMALL FARMERS, ETC., TO NEW ZEALAND (CORRESPONDENCE WITH THE AGENT-GENERAL RELATIVE TO).

Appendix to the Journals of the House of Representatives, 1893 Session I, D-07

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1893. NEW ZEALAND.

EMIGRATION OF SMALL FARMERS, ETC., TO NEW ZEALAND (CORRESPONDENCE WITH THE AGENT-GENERAL RELATIVE TO).

Beturn to an Order of the House of Representatives, dated 13th July, 1893. Ordered, " That there belaid before this House copies of any correspondence between the Government and the Agent-General; (1) On the subject of the encouragement or assistance offered to small farmers and others possessed of some capital to emigrate to Now Zealand ; (2) On the subject of the guaranteed debentures, and of the £450,000 of Treasury bills authorised to be issued under section 2, " The Public Act, 1892 " ; (3) As to the Imperial Institute."—(Hon. Mr. Rolleston.)*

No. 1. Extract, from Letter from the Agent-General, dated 18th March, 1892, addressed to the Premier. I now propose to offer some remarks with regard to three classes of persons, to each of which I consider the colony offers special attractions. They are : (1) Tourists, (2) persons in receipt of fixed incomes, (3) practical farmers with small capital. 1. Tourists. I attach considerable importance to bringing New Zealand more under the notice of the travelling public as a desirable place of travel, and as a sanatorium. The only part that I can play in this is to co-operate with the various tourists' agents in advertising the colony as a wonderland and health resort, and I am pleased to bear testimony to the fact that Messrs. Cook and Son lose no opportunity of calling the attention of the public to New Zealand. lam now in communication with them with the object of seeing whether they cannot arrange some special circular tours embracing New Zealand during the year of the World's Fair at Chicago. A certain amount of advertising has already been done by means of the New Zealand map posters, which are beingexhibited at a number of the principal railway stations in this country, but more advertising is required. One of the best means of accomplishing this is to furnish guide-books, maps, &c, to places of public resort, such as hotels, reading-rooms, and other similar places. The various magazine articles, contributions to the papers, and lectures given by persons acquainted with the colony, are excellent means of educating the public, and attract many visitors; and it is to be hoped that literary contributions from the colony descriptive of scenery and travel will largely increase. The lantern slides we have in this office are frequently made use of for illustrations, and photographs are also in request for this purpose. The ability to lend a batch of photographs to a contributor to a magazine is often the means of inducing an article to be written, and I hope that you will see that I am supplied with a few albums of photographs descriptive of scenery, industry, and colonial life generally. While on this point, I desire to express the opinion that the contributions to provincial newspapers of the personal experiences of persons who have settled in the colony are widely read, and are a capital means of circulating desirable information. Provincial newspapers seem to readily publish such articles, although the metropolitan newspapers, as a rule, will not do so. I often find that inquiries regarding the colony have been instituted through the reading of these oolonial sketches. The affording of improved travelling facilities and arrangements for the comfort of tourists rests with the Government and Eailway Commissioners; but, perhaps, I may be allowed to express an opinion that the colony has much to do in the way of promoting the convenience and comfort of tourists. I have lately asked Messrs. Cook and Son to make inquiries as to whether tourists travelling through them have any complaints to make with regard to the travelling facilities in the colony, and I shall address you further on this point on another occasion. 2. Persons with Fixed Incomes. This is a class of persons to which New Zealand offers many attractions. To a man of a fixed income of a few hundred pounds I know no place which offers so much. The cheap living, combined with educational and social advantages, renders New Zealand a most desirable place of residence to a very large class, who, for climatic and other reasons, cannot reside in England, and who prefer the society of Englishmen to that of foreigners. In a previous communication I have suggested for your consideration the question of removing the Customs duty on personal effects (other than new goods), which is quoted as a serious impediment to this class. Under the present

* This correspondence complies with No. 1 only of the motion ; return to No. 2, nil ; for return to No. 3, vide H.-25, -f t—r

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tariff only £100 of such effects are admitted free. The loss to the revenue by the remission of this duty would be very small indeed, and it is difficult to see why New Zealand should not offer the same inducements as other colonies. The colony which is our chief competitor for this class is Tasmania, and there no duty is charged on personal effects. The point is a very small one, but it is small things of this kind which seem to have such a large influence. In order to satisfy inquiries of this class it would be useful to me to have prospectuses of schools, property lists giving house rents, and information of a social character. A certain amount of this is already in the office, and will be collected by the officer in charge of the bureau; but I frequently find that publications which are freely distributed in the colonies are not to be had here. No doubt a great many persons would go to New Zealand to permanently reside there if the advantages offered by the colony were better known. The ignorance regarding the colony is still stupendous, and much has to be done in the way of bringing the social and educational advantages of New Zealand into prominence. 3. Small Farmers with Capital. This is the class above all others which I consider it desirable to attract. It is quite contrary to my intention to suggest a return to the old immigration policy. I feel that New Zealand will be able to obtain from the neighbouring colonies for years to come a sufficient number of artisans and labourers to meet any increased demand that may arise for that class of settlers; but the same remark does not apply to farmers with capital, able and willing to settle upon and cultivate the land, with advantage to themselves and also to those now in the colony. With regard to farmers, although something can be done by setting before them the many advantages of the colony as regards climate, fertility of soil, &c, yet I feel assured that in order to put the colony on a "fair footing in the competition with other colonies in procuring suitable colonists, it is very desirable that some assistance should be granted to them similar to that which was granted some years ago, when, after being approved by the Agent-General and paying their capital into this office, to be repaid to them on their arrival in the colony, they were assisted to the extent of about £10 per adult in the cost of their passage. It will be found that during the two years this policy was in force 395 souls were sent out to New Zealand, and that capital in the aggregate amounting to £17,532 was received at this office for repayment to the owners on their arrival in the colony. The cost to the colony for passage-money was £3,025. Intending settlers of a really suitable description are, I believe, attracted by some advantage which is immediately available, more, perhaps, than by any other inducement. I therefore venture to recommend to the Government for their consideration the granting of some assistance, even though the aggregate amount be comparatively small. I have been in communication with the shipping companies, and I find-that during ten months out of the year they are prepared to reduce the cost of the passages of intending settlers with capital on the following scale : —

; , Contribution by Contribution I Reduced Cost to — Present Rates. „ ; „„ n Amr ,„„„ by the New Zealand TJ Shipping Company. Govemment Passenger. [ £ s. d. £ s. d. £ s. d. £ s, d. Second Saloon ... ... 36 15 0 815 0 8 0 0 20 0 0 Third ditto (two in room) ... 21 00 300 400 14 00 Ditto (enclosed berth) ... 18 18 0 2 18 0 3 0 0 13 0 0 I I

It will be seen by this that, under this proposal, assistance to the extent of £16 15s. per adult will be available to persons going by the second-class, and of from £5 18s. to £7 to those taking third-class passages, and the reduction made by the shipping company is practically equal to the contribution made by the Government. Although this is perhaps not a very large inducement, yet I venture to think it will have a good effect; and the bare announcement that assisted passages are given to farmers with capital brings such in direct communication with this office, and, what is perhaps more important, draws the attention of others to the colony who do not desire assistance. From the number of inquiries made at this office I have the means of knowing that the great cost of the passage to New Zealand compared to other colonies acts as a serious deterrent. The cost to a man with a large family is so large as to be prohibitive in the case of a man with a very small capital. I hope I have made it clear that, although I consider the benefit the colony will derive from the introduction of small farmers with capital to be considerable, I regard the necessary advertising which this scheme involves of the greatest importance. The adoption of this scheme will give what is so much wanted, a raison d'etre for extensive advertising, using the term in its largest sense. It appears to me that the present time is especially opportune for making an effort to attract settlers to the colony. The marvellous growth of our exports and land settlement, and the buoyancy of our revenue, at a time when the expenditure of borrowed money is reduced to a minimum, are facts which bring our colony into prominent and favourable notice. The -success also attending our agricultural and pastoral industries offers a favourable opportunity of bringing New Zealand under the notice of the English farmer, whose prospects appear at the present time so gloomy; while the policy now being pursued by many of the land companies, of putting land on the market, affords to such an opportunity of acquiring improved farm lands at a reasonable price, should they desire improved lands rather than Crown lands. I have, &c, The Hon. the Premier. W. B. Perceval.

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No. 2. The Hon. the Premier to the Agent-General. Sir,— Wellington, New Zealand, 16th June, 1892. In reply to paragraph three of your letter of 18th March, dealing with the question of attracting small farmers with capital to the colony, I have the honour to inform you that the Government concurs in the views expressed in your letter with respect to the introduction of immigrants of the farmer class who possess more or less capital, and they would be willing to assist desirable persons desiring to settle in New Zealand by affording to them every information in their power, and by approaching the different shipping companies with a view of inducing them to grant passages to this class of settlers at reduced rates. It is deemed advisable that the benefits which would accrue to settlers of the farmer class, together with the advantages which this colony offers to such colonists, should be advertised somewhat in the manner you have suggested, and particular attention should be given to the distribution of these advertisement in the provinces, from whence we may expect to draw settlers who would come under the heading of farmers. It is believed that the colony could absorb a considerable number of farmers who possess capital varying from, say £300 to £5,000, the more so as there is a tendency at the present time to subdivide the estates held by large proprietors in this country, which thus offers to that class of immigrants who, from age, habit, or want of colonial experience, are unfitted for coping with the pioneer work of subduing the wilderness, chances of securing partly improved farms, where their experience may be of benefit to them. Intending settlers should be asked to show that they were possessed of some means/and to produce some form of guaranteee as to the amount of capital owned by them, and possibly the course pursued by your predecessor under the same circumstances would equally meet the present case. In addition, there should be procured satisfactory evidence as to the character and general suitableness of the people for colonists. Then the Government think the shipping companies would come to some arrangement with you, whereby the passage-money could be reduced, as it would-be-impossible for the colony at present to provide the money for such a purpose. It does not appear necessary to confine the time during which passages may be given in this manner, to the ten months that the shipping companies offer facilities to emigrants, so long as the companies are satisfied with the arrangements entered into. You could, no doubt, enter into specific arrangements with the shipping companies trading to this colony, and insure that a proper dietary scale, medical attendance, &c, is established, in which you will find assistance from the arrangement made by your predecessor under somewhat similar circumstances. The mode of payment for the passages would be subject to the same arrangements as formerly without any assistance from the colony. In communications with intending settlers it will be necessary to insist upon the fact that those who desire to settle on Crown lands should be informed that they will be practically confined in their choice to forest lands, which have to be cleared and sown with grass before any return can be expected, and, moreover, that the lands that the Crown has to offer are, with few exceptions, confined to those suitable for pastoral purposes; but which may, nevertheless, be held in areas varying from 200 to 2,000 acres. You will see from this that farmers who have had some experience in pastoral pursuits are the most suitable class so far as settlement on Crown lands are concerned, even on the Crown lands clear of forest in the South Island, and that, therefore, special attention should be given to advertising in those parts of the United Kingdom where pastoral pursuits prevail. The course of action, therefore, the Government think it most advisable you should pursue, is to advertise extensively throughout the United Kingdom (the cost of which will be defrayed by the Government), giving all the information available concerning the colony ; then when suitable settlers come forward expressing their willingness to go to the colony, and show to your satisfaction that they are possessed of a certain amount of means, it will be for you, having previously arranged with the shipping companies, to see that they are provided with tickets for their passages at reduced rates. In entering into negotiations with the shipping companies, it is suggested that you should fully place before them the advantages which will accrue to themselves by offering inducements to a most desirable class of people to emigrate and settle in the colony, a class of people who will almost immediately become producers in the colony, and naturally help to swell the business of the shipping firms trading to New Zealand. J. Ballance. The Agent-General for New Zealand, London.

No. 3. The Agent-General to the Premier. Sir,— 13, Victoria Sttreet, London, S.W., 4th August, 1892. I have the honour to acknowdedge the receipt, by the San Francisco mail which was delivered here on the 21st ultimo, of letter (not dated) from the Minister of Lands, communicating to me the views of the Government with reference to the proposals I submitted for consideration in the third paragraph in my letter No. 336 of the 18th March last, and, in reference thereto, to state that I have placed myself in communication with the shipping companies for the purpose of endeavouring to make arrangements with them for a reduction in the amount of passage-money as regards persons who may be recommended to them by me as eligible for such assistance, it being understood that the Government, on their part, will advertise extensively throughout the United Kingdom, for the purpose of inducing suitable persons to proceed to the colony by. the companies' direct steamers. Owing to the absence from London of many persons who have to be consulted in this matter, I have not yet been able to come to any definite arrangement, but I trust will be able to do so shortly. I have, &c, The Hon. the Premier. W. B. Perceval.

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No. 4. The Agent-General to the Premier. Sir, — 13, Victoria Street, London, S.W., 14th September, 1892. Adverting to my letter of the 14th ultimo, in which I had informed you that I had placed myself in communication with the shipping companies for the purpose of endeavouring to make arrangements with them for a reduction of the amount of passage-money for persons with capital going out to the colony, as instructed in your letter delivered here on the 21st July, and also informed you that owing to the absence from London of many persons who had to be consulted, I was unable to make any definite arrangement: I beg to state that the matter is still in abeyance, for the reason given above, but I hope to be able to resume my negotiations in a few clays. I had such difficulty in inducing the shipping companies to agree to reduce their fares on the scale sketched in my letter of the 18th March last that I fear that, now that your Government decline to make any moneycontribution towards passage-money, I shall have still greater difficulty. I shall, of course, make strong point of the authority you have given me to advertise extensively, and of the increase of business which it is hoped will accrue to the shipping companies. With regard to the advertising, I have not thought it expedient to take any steps in this direction until I have concluded some arrangement with the shipping companies. I have, however, availed myself of an offer made to me by Mr. J. E. Eanderson, of Christchurch, New Zealand, who is now on a visit to this country, to distribute information regarding the colony in the provincial districts where the persons most suitable for colonial settlers are to be found. Mr. Sanderson's private business necessitated his visiting a large number of farming centres in England and Ireland, and I have paid him the sum of £25 for the manuscript of three lectures he has written on New Zealand (six copies of which have been forwarded to you in the mail-box shipped by the s.s. " Euapehu," sailing this week); and at a cost of a further sum of £25 I have had 5,000 copies printed. These are forwarded in parcels of 250 to Mr. Eanderson as he travels through the country, and he sees to their distribution. I understand that Mr. Eanderson delivers lectures on the colony, and exhibits lime-light views of New Zealand ; and that he proposes to expend the whole of the money I have paid for his manuscript in expenses connected with these lectures. I have, however, refused to identify myself, or connect the Government of the colony in any way, with these lectures, as I have not a sufficient knowledge of his abilities or prudence to warrant such a course. I shall, however, watch with no little interest the result of his lectures. I am pleased to state that the demands for information regarding the colony made by apparently desirable persons has considerably increased since the opening of the information bureau. No efforts are being spared in giving full and accurate information, and a large amount of printed matter is freely circulated. I have, &c, The Hon. the Premier. W. B. Perceval.

No. 5. The Agent-General to the Hon. the Premier. (No. 1458.) Sir,— 13, Victoria Street, London, S.W., 13th October, 1892. Since my letter of the 14th ultimo, on the question of endeavouring to arrange for reduced fares for persons with some capital and a knowdedge of farming, I have had interviews with representatives of the shipping companies, and, following upon the interviews, correspondence has taken place between myself and the manager of each shipping company. I send herewith a copy of the correspondence, from which it will be seen that the shipping companies are not inclined to fall in with my views. I regret this very much, as lam satisfied that the proposed arrangement, if carried out, would have been the means of sending out to the colony a very desirable class of settlers. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval.

Enclosure 1 in No. 5. The Agent-General to the Managers, New Zealand Shipping Company and Shaw-Savill and Albion Company. Dear Sir, — 13, Victoria Street, 13th September, 1892. Eeferring to the correspondence which passed between us 'some time back, relative to a proposal for reducing the passage-rates of small capitalists proceeding to New Zealand, which was contained in your letter of 22nd February, and afterwards embodied in a despatch which I forwarded to the colony, dated the 18th March last, the contents of which, so far as relate to the subjectmatter, have already been communicated to you : I have to inform you that I have received from my Government a reply to my despatch of 18th March. The Premier speaks favourably of my proposals for inducing small farmers with capital to emigrate to New Zealand, and has endorsed the suggestions made by me for advertising. The Government, however, decline to provide funds for reducing the passage-money. This being the case, the offer made by your company for co-operating with the Government of New Zealand, in the direction of reduced passage-money, falls through. This I very much regret. The question which I now desire to submit for your consideration is whether any arrangement can be made for a reduction of the cost of passage-money in special cases, (such eases being those where the passenger produces evidence of his being possessed of capital, and has the intention of embarking in industrial pursuits in the colony), on the basis of the inauguration by me of an extensive system of advertising, as my Government seem in this matter to give me absolute discretion. It is suggested that this advertising would bring the colony into prominence, and induce a number of persons to emigrate, thus causing an increased business to your company. The reduc-

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tion of the fares would afford the raison d'etre for the advertising, and if your company can see its way to meet me liberally, some arrangement may possibly be come to which will have the effect of diverting the steerage passenger traffic from the German and cargo steamers, by which boats the number of passengers carried of late has, I have reason to believe, been greatly increasing. I am writing a similar letter to the manager of the Shaw-Savill and Albion Company as to the New Zealand Shipping Company; and if, after conferring with him, you think it advisable to discuss the matter with me, I shall be pleased to see you. In approaching you I wish it to be understood that I desire this matter treated entirely on a business footing, and I do not ask for any concessions which are not deemed for the mutual advantage of your company and the colony. Yours, &c,, W. B. Perceval. The Managers of the New Zealand Shipping Company and Shaw-Savill and Albion Company. Enclosure 2 in No. 5. The Manager, New Zealand Shipping Company, to the Agent-General. The New Zealand Shipping Company (Limited), 138, Leadenhall Street, E.C., Sir,— 15th September, 1892. I have to acknowledge your letter of 13th instant, relating to proposed arrangements for reducing the cost of passage to small capitalists proceeding to New Zealand, and, after conference with the Shaw-Savill and Albion Company, will communicate further with you. The Agent-General for New Zealand, I am, &c, 13, Victoria Street. 0. B. Strickland, Manager.

■ • • Enclosure 3 in No. 5. The Manager, Shaw-Savill and Albion Company, to the Agent-General. Shaw-Savill and Albion Company, 34, Leadenhall Street, Sir,— 17th September, 1892. On 15th instant we received your favour of 13th idem, with reference to a proposal made some time back concerning passage-rates for small capitalists proceeding to New Zealand, and we are sorry to note that your Government do not see their way to fall in with the suggestions which you made in connection threwith. The alternative arrangement which you suggest will have our fullest consideration, and the writer hopes to have the pleasure of calling upon you to talk the matter over personally during the course of next week. We are, &c, W. B. Perceval, Esq., Shaw-Savill and Albion Company, Agent-General for New Zealand. T. A. Potter, Manager.

Enclosure 4 in No. 5. Mr. W. Kennaway to the Manager, Shaw-Savill and Albion Company. Dear Sir,— 13, Victoria Street, 22nd September, 1892. Eeferring to your interview with the Agent-General yesterday, I am directed to state for your information that third-class passages by the Direct steamers provided for passengers approved by the Agent-General, are, under the existing arrangement, charged at the rate of £15 per adult, and £9 per child under twelve years and over one year. Passages were provided both by your company and the New Zealand Shipping Company in March and April last under this arrangement, and there are cases now in hand in which passages will be required under it. In 1885, in addition to the above arrangement, and for the purpose of providing superior accommodation to that of the third class, it was arranged that passages as described below should be provided for passengers approved by the Agent-General, and charged as follows—namely, second class at the rate of'£2B per statute adult; intermediate, £21 per statute adult; intermediate, for families of four or more berthed together, £19 per statute adult. The second-class passengers were berthed and had dietary scale as in the case of ordinary second-class passengers, and the intermediate passengers had enclosed cabins, so that families could keep together, and their dietary scale was the same as third-class passengers. In forwarding this information to you, the Agent-General desires to express a hope that the companies will see their way to arrange for passage-rates lower than those which were charged under the arrangement of 1885. I am, &c, Walter Kennaway. J. A. Potter, Esq., Manager, Shaw-Savill and Albion Company.

Enclosure 5 in No. 5. The Manager, Shaw-Savill and Albion Company, to the Agent-General. Shaw-Savill and Albion Company, 34, Leadenhall Street, Dear Sir, — 27th September, 1892. Eeferring to your letter of 13th instant, and to our interview of 21st, we have to thank you for Mr. Kennaway's letter of 22nd idem, and to state that we have looked very carefully at your suggestion with a view to meet your wishes as far as possible.

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We have a difficulty in satisfying ourselves that the advertising of reduced fares by you will not interfere with our passenger earnings, for it appears not unlikely that many of those who would be disposed to accept the benefit of the reductions which you ask us to authorise you to make would otherwise travel by our line in the ordinary way, and pay full tariff rate. In addition, the position of our passenger steamers does not warrant our embarking upon a scheme which may have the effect of curtailing their earnings. This service was inaugurated some years ago, as you are doubtless aware, by express desire of the colonists themselves to supply a want which we were told the colony laboured under; and its inauguration was to bring advantage to us as well as to the colonial community. That the colony has been benefited, we think, cannot be disputed ; but to us the result has been very different from what we were led to expect. Although the service has been maintained with increased efficiency and without complaint as to its character, it is to-day absolutely not self-supporting. For some time the Colonial Government, in recognition of the advantage of the service, paid a subsidy for the conveyance of mails. This has been gradually decreased until latterly it has ceased altogether, because the small amount offered was utterly disproportionate to the conditions and obligations of the contract. You will thus see that we are not in a position to experiment in the direction you indicate, or to run the chance of curtailing our already diminished earnings by reducing the fares. If, however, your Government were to return to the old state of things, and subsidise us as before by a payment of, say, £20,000 per annum for the conveyance of the mails, we would be quite pleased to set apart a portion of our steamers to be filled with passengers proceeding to New Zealand under your auspices at rates which would be satisfactory to you. We do not think that the circumstances in connection with the inauguration and continuance of the Direct passenger service to and from New Zealand make it unreasonable that we should ask to be put upon a basis similar to that which is enjoyed by the P. and 0. and Orient lines, and the Cape lines, in their trade with other British colonies. Unless something is done in the direction we have indicated, we fear it will be impossible for us to continue the regular sailing of passenger steamers, which has been our practice during past years. ' ' We are, &c, Shaw-Savill and Albion Company, T. A. Potter, Manager. The Agent-General for New Zealand, 13, Victoria Street.

Enclosure 6 in No. 5. Mr. W. Kennaway to the Manager, Shaw-Savill and Albion Company. Dear Sir,— 13, Victoria Street, London, S.W., 28th September, 1892. I am directed by the Agent-General to acknowledge the receipt of your letter of yesterday, in which you convey to him the decision of your company not to reduce your fares for second- and third-class passengers recommended by him, as suggested in his letter of the 13th instant, and to express his regret at the decision. I am further directed to state that the Agent-General now feels himself free to approach other shipping companies on the subject. With reference to your remarks respecting the mail-service by your steamers, I am to inform you that a copy of your letter will be transmitted to the Government in New Zealand, so that their attention may be directed to the views you express relating to that part of the question. lam, &c, The Manager, Shaw-Savill and Albion Company (Limited). Walter Kennaway.

Enclosure 7 in No. 5. Mr. W. Kennaway to the Manager, New Zealand Shipping Company. Dear Sir 13> Victoria Street, 28th September, 1892. Eeferring to your letter of the 15th instant, I am directed by the Agent-General to state that he will be glad to receive a reply to his letter of the 13th instant relating to the reduction of the cost of passage-money in special cases. The Agent-General has received a reply from the manager of the Shaw-Savill and Albion Company to a similar letter, but he does not know whether you are aware of the decision of that company. I am, &c, The Manager, New Zealand Shipping Company. Walter Kennaway.

Enclosure 8 in No. 5. The Manager, New Zealand Shipping Company, to the Agent-General. The New Zealand Shipping Company (Limited), 138, Leadenhall Street, g IE) _ 29th September, 1892. Your letter of the 18th instant was placed before my Board yesterday. The Board had at the same time before them a letter of the 27th instant from the Shaw-Savill and Albion Company, in reply to a communication addressed to them by you similar to that now under reply. My Board desire me to say that, in view of the letter of the Shaw-Savill and Albion Company, they do not feel able at present to enter into any arrangements with the Government of New Zealand for a general reduction of rates to such eligible settlers as may be recommended to them by the New Zealand Government.

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At the same time the New Zealand Shipping Company will be ready to consider, in any special case recommended by you, the possibility of some concession from their published rates. I am, &c, The New Zealand Shipping Company (Limited), The Agent-General for New Zealand. O. E. Strickland, Manager.

Enclosure 9 in No. 5. Mr. W. Kennaway to the Manager, New Zealand Shipping Company. Sir,— 13, Victoria Street, S.W., 30th September, 1892. I am directed by the Agent-General to acknowledge the receipt of your letter of 29th instant, in which you state that your company does not feel able at present to enter into any arrangement with the New Zealand Government for a general reduction of passage-rates to such eligible settlers as may be recommended by the Government, and to express his regret at the decision arrived at. While thanking you for your company's offer to consider any special cases recommended by him, the Agent-General directs me to state that he does not consider that such a proposal would meet the objects he has in view, and that, therefore, he now feels himself free to approach other shipping companies on the subject. I am, &c, Walter Kennaway. The Manager, New Zealand Shipping Company (Limited).

Enclosure 10 in No. 5. The Agent-General to the Manager, Shaw-Savill and Albion Company. Dear Mr. Pptter,— 13, Victoria Street, S.W., 6th October, 1892. Perhaps the enclosed sample of letters we are constantly receiving may interest you, and help to convince you that the high passage-rates act as a deterrent to people thinking of going out. Yours, &c, J. A. Potter, Esq., Shaw-Savill and Albion Company. W. B. Perceval. Sub-enclosure to Enclosure 10 in No. 5. To the Agent-General for New Zealand. Dear Sir, — I contemplate moving my family, four sons and four daughters, to one of the colonies, having friends in both Canada and New Zealand ; they both think their own place the best. At third-class it would cost £160 to get to New Zealand, while the £60 would take us to Canada. I have a relative at Whangarei, Auckland, New Zealand, and he thinks that a good part to go to. Does your Government offer any advantages as to passage, or land (as a gift) when you arrive ? We are all workers, two boys and two girls, and clo not keep any servant in house, and, after paying £160 passage-money, should only have about £1,000 left on landing. Kindly give me any information useful as to above questions. I think your Government are all behind as to helping good colonists, for South Africa offers every inducement to single men now for gold, that few, I imagine, find their way to your colony. Could I get a free pass to Whangarei on landing, think you, as it costs something to be moving ten persons about in a colony where travelling doubtless is expensive; and, no doubt to that place, although only 100 miles from Auckland, it would mean £20. If you could show me some material advantage, no doubt I should be a pioneer; for there are other families I know about here who would follow, and form a community known to each other. But with most of them the expense seems so much that they fear to venture. Would it be any good if 1 saw you in London, as I may be near there shortly ? Yours, &c, The Agent-General for New Zealand, London. _

Enclosure 11 in No. 5. Mr. J. W. Temple to the Agent-General. Shaw-Savill and Albion Company (Limited), 34, Leadenhall Street, E.C., Dear Sir,— 7th October, 1892. Your note of yesterday's date addressed to Mr. Potter has just been placed before me, he being at present absent on a holiday. I have read the enclosure with much interest and now return it to you. There is probably no doubt that a lower rate of passage-money would attract passengers to New Zealand, but as explained in our letter of 27th ultimo the earnings of the passenger steamers both out and home are now so curtailed that it is quite impossible for us to reduce the rates. The real gist of the matter seems to me to be in the paragraph in your correspondent's letter, in which he states that the New Zealand Government are all behind as to helping good colonists, and in which he contrasts the policy of that colony with that of Africa, &c. I may mention that our last steamer was quite full of second-class passengers, and that the present one seems likely to be full also ; you will thus see that if in the case of these steamers we had made the reductions suggested by you, the only effect would have been to reduce our earnings, and place us in a worse position than we are now.

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I feel sure the service of fast steamers which has been carried on by this company and the New Zealand Shipping Company has been of immense benefit to the colony, but the time is now certainly rapidly approaching when we shall be compelled to consider whether it is possible for us any longer to continue it. I have, &c, J. W. Temple, The Agent-General for New Zealand. Managing Director.

No. 6. The Agent-General to the Premier. Sir, —■ 13, Victoria Street, London, S.W., 19th January, 1893. In accordance with the instructions contained in your (Minister of Lands) letter of July last, I have lost no opportunity of endeavouring to make arrangements under which reduced passages would be provided for suitable settlers, conditionally on the Government, at their own cost, advertising extensively throughout the United Kingdom. A few weeks after the despatch to you of my letter No. 1458, of the 13th October last, I had an interview on the subject, at their invitation, with Mr. Dawes and Mr. Jackson, two of the directors of the New Zealand Shipping Company, and, after several subsequent communications, their proposals were embodied in a letter, dated the 19th December last, copy of which I attach herewith. Under the instructions contained in your letter of July, to which I have already referred, I felt that I should have been justified in at once accepting these proposals; but, as the New Zealand Shipping Company made it a condition that for the space of twelve months the arrangement in question should not, without their consent, be extended to vessels other than their own, I deemed it desirable to communicate with you before I finally accepted and acted on the proposals in question ; and, in reply, therefore, I intimated that, subject to the ratification of the same by the Government, I was'prepared to accept them. I accordingly sent you, on the 6th instant, a cablegram conveying to you the substance of the proposals ; and on the 10th I received your reply to the effect that further conditions were necessary, and that you were accordingly communicating with me on the subject by letter. With regard to our dealing with the New Zealand Shipping Company alone in this matter, I may observe that, the Shaw-Savill and Albion Company having declined to entertain the proposal I made to them in September last, and not having shown any inclination to renew the negotiations with respect to it, I consider the Government are at perfect liberty to make arrangements which would not extend to them : in fact, in my letter to them of the 28th September last, copy of which went with my letter to you of the 13th October, it was expressly stated that I felt myself free to approach other shipping companies on the subject. I may also remark that I find that in other shipping arrangements the agreements have been made with the New Zealand Shipping Company only, with liberty, and, in some cases, with the understanding, that the company might carry the arrangement thus made into effect in combination with the Shaw-Savill and Albion Company. With respect to the proposals themselves, I would point out that, in addition to providing reduced rates for second and third-class passengers, the company are prepared to grant reductions to first-class passengers, an arrangement which has, I think, never before been made. I attach some value to this, as the effect will be, I believe, to attract to the colony persons possessing capital, in addition to those going by the second and third-class. A new feature also, to which I would specially refer, is providing an intermediate class. I have reason to believe that this provision will encourage the settlement in the colony of a class of men who. having with thrift and. care possessed themselves of small amounts of capital, will go out with the determination to settle on the land, and, when there, make the most of the means which they take with them. I would also advert to the proposal by which the company propose to contribute towards the expenses of advertising, proving as it does, that they are anxious to co-operate with the Government in the endeavour to promote, so far as possible, the settlement of the country by a class of settlers who will do good to themselves and benefit also those who are already there. In the selection of those whom I should, on behalf of the Government, deem right to recommend for reduced passages, I shall of course be guided by the instructions which I shall from time to time'receive from you. In my first despatch to you on the subject, dated 18th March, 1892, I endeavoured to indicate the classes of persons whom I considered it was desirable to encourage, and it would be my greatest care to avoid sending out unsuitable persons of any description, whether as regards character, health, or vocation. My aim would be principally to encourage those who, with either small or large capital, intend to take up land in the colony and utilise it for their own occupation. I believe there is no great demand at the present time for mechanics or labourers in the colony, and I did not propose to recommend such; but the proposed arrangement would permit of my sending out any class of persons whom the Government from time to time might consider required in the colony. With the exception of persons possessing capital, and persons having a special and practical knowledge of farming, the only other class which it seems to me the colony at present requires is capable domestic servants, and these, unless otherwise instructed, I should propose to encourage. It seems to me that the proposal made by the company might be accepted with great benefit to the colony, and I hope the Government will see its way to give me the necessary instructions. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval.

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Enclosure in No. 6. Mr. T. Johnson to the Agent-General. Sir,— 138, Leadenhall Street, London, E.C., 19th December, 1892. Since the company addressed to you their letter of 29th September last, they have carefully considered whether they can extend the offer which they then made of giving some concession from their published rates of passage-money, in any special cases which may be recommended by you. It is understood, in the first place, that, provided the company take passengers approved by you by their Direct steamers to New Zealand at reduced rates, you will extensively advertise in the United Kingdom to that effect. And under these conditions, and provided also that the passengers thus approved are for a period of twelve months sent only through this company, I beg to inform you that the rates for passengers will be reduced as follows, viz.: Saloon passengers, special terms,, taking each case on its merits; second-class, from £36 15s. to £28 per adult; third-class, from £16 16s. to £13 per adult. In addition to the above it is proposed to have an " intermediate " class, which would afford a larger amount of space per adult than is made available for third-class, and in which enclosed cabins and a more liberal dietary scale would be provided, and for this class of accommodation the passage rate will be £18 18s. to those passengers only who are approved by yourself. With regard to the space for " intermediate " passengers, the company are prepared to allot 25ft. per adult, it being remembered that under the Passengers Act the minimum space is 15ft. only ;. and as regards the dietary scale the details could, no doubt, be satisfactorily arranged after a conference with yourself. In further reference to this matter, I would further add that the company are prepared to contribute towards the expense of advertising to the extent of 5 per cent, of the amount of passagemoney received by them on account of the passengers approved by yourself. It is also to be understood that the company will pay a commission of not less than 5 per cent, to you, or your shipping agent, to cover agency charges. Awaiting your approval of the proposals contained herein. I remain, &c, Thomas Johnson, Director, New Zealand Shipping Company. The Agent-General for New Zealand.

No. 7. The Agent-General to the Premier. (Telegram.) 6th January, 1893. Shipping Company offers reduce fares 25 per cent, passengers recommended Agent-General. He advertise and forward passengers Shipping Company only. Shipping Company offers 5 per cent, passage money contribution advertising. Arrangement run for twelve months. Eecommend acceptance. Instruct whether may agree.

No. 8. The Premier to the Agent-General. (Telegram.) Wellington, 10th January, 1893. Shipping further conditions necessary. Writing.

No. 9. Hon. J. McKenzie to the Agent-General. Wellington, 31st January, 1893. Emigration of Farmers and other Persons possessed of small Capital. Sir, — Eeferring to your telegram of the 6th instant, stating the terms on which the Shipping Company will forward passengers toNNcrw r Zealand who may be recommended by yourself, the Government views your proposal favourably, but is of opinion that the concession should be restricted to persons possessing capital somewhat as follows : Each head of a family should prove to your satisfaction that he is possessed of £100 in cash, and that he is also possessed of cash equal to the sum of £50 for each member of his family over twelve years of age. Subject to the above you may enter into an arrangement with the Shipping Company for twelve months, and advertise as you propose. John McKenzie, The Agent-General for New Zealand, London. For Premier. Approximate Cost of Paper.—Preparation (not given); printing (1,375 copies), £6 SB. By Authority: Samuel Costall, Government Printer, Wellington.—lB93. Price 6d.] 2—D. 7.