E.—No. 4c,

FURTHER PAPERS RELATIVE TO THE

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Subsequently, when at xYuckland on his way to San Francisco, Mr. Stewart addressed to me a letter in which he professes to state your views : which views, as they appear to me, virtually amount to this. That you are dissatisfied with the main point of the contract. I have not had an opportunity of answering that letter ; and I am compelled to say, I think Mr. Stewart should have addressed it to me before he left AVellington. He has now returned to San Francisco ; and from your letter, I understand that you do not propose to come to New Zealand. I am glad to think that you intend to give your attention to the proceedings of Congress ; and I presume you will include in that attention a consideration of the matter we have so often discussed, and which, by the contract, you have undertaken to give your best services to effect: I allude to the reduction of the AVool Duty. I attach as much importance as ever to this matter. I am convinced that the reduction will cause a very large trade to grow up between these Colonies and the United States, whilst there can be no doubt it will largely benefit the manufacturing interests of that country. But, whilst I am anxious you should not lose sight of this matter, I am constrained to say that, in consequence of your not visiting New Zealand, the Government will be left without any one to represent the contractors during the negotiations which will be necessary with the Australian Governments. It seems to me that it will be impossible to negotiate with those Governments, and to enter into questions which will have to be considered as to modifications of details of the contract — although these modifications may be strictly in conformity with the terms of the contract —unless there is present, on behalf of the contractors, some person possessed of full and absolute authority to represent them. I have, therefore, the honor to request that you will cither come to New Zealand, or without delay appoint some one to represent the contractors, so that the negotiations with the Australian Governments may be entered upon. Had I not confidently relied upon your promise to come to New Zealand this month, I should have hesitated to grant the request made by Mr. Stewart; and I fear that through the contract steamer not proceeding to the Southern part of New Zealand in December, the Colony will be a serious loser in respect to the conveyance of wool to the United States. I must beg you to understand most clearly, that the Government of New Zealand will require that the steamer which is duo in Auckland on the Ist January, shall proceed thence to Port Chalmers, calling at the ports specified in the contract, and shall leave Auckland for San Francisco ou the proper day, namely, the 25th January. This will allow of four trips being made from Auckland to Sydney, in accordance with the permission granted at tho request of Mr. Stewart. You must allow me to add, that correspondence on this subject will be useless; for lam able to inform you absolutely, that after the four trips on which the contractors are at liberty to run the steamers from Auckland to Sydney, tho Government will require that the terms of the contract, unless varied by mutual consent, given in New Zealand, shall bo strictly observed. I have, &c, W. H. Webb, Esq., &c. Julius Vogel.

No. 134. Mr. Webb to the Hon. Mr. Vogel. Sir,— New York, 30th August, 1871. You will doubtless recollect that, at our late meeting in San Francisco, when reference was made to an early despatch of the steamer " Dacotah " to the Pacific Ocean, I stated I feared some alterations would be required to her machinery, to completely fit her for such long voyages as required by our contract. Immediately on my return here from San Francisco, I called together a board of expert engineers expressly to determine this question. The steamer " Dacotah" made only one voyage of about 4,003 miles, soon after her completion (about two years since) at which time her boilers did not work satisfactorily. These boilers were built on a new plan, intending to carry very high steam (60 lbs.), and the engine, in all its parts, extra strong, to bear the unusual strain consequent upon carrying so high a pressure of steam. A new system of valves and cut-off, was also introduced in the engine. This board of experts, after much consultation and loss of time, have advised the entire removal of the present boilers and the substitution of another well-known and long-tried type, but to be built extra strong, so as to avail of the capacity of the engine for high steam. They also advise the adoption (not necessary-, however) of a more simple and better understood system of steam valves, which involves the necessity of a new main cylinder and much additional expense. I have decided to adopt all the recommendations of this board of experts, though, as you may imagine, very reluctantly; for the proposed alterations involve an outlay of about 870,000, —but I shall have the satisfaction and the certainty of knowing, that when the work is completed, we shall have both engine and boilers of great power, entirely free from'any element of experiment, and a steamer in every way well adapted to the service and capable of high speed. The work is now in hand, and will be driven to completion as rapidly as possible ; after which the " Dacotah" will be despatched to the Pacific without delay, say about the end of the present year or the beginning of tho next. I mention the above details that you may understand why the " Dacotah" cannot receive immediate despatch as intended, and trust that the statement will prove satisfactory. There appeared to be little difficulty in the opinion of some of the most competent members of this board of experts in making the present boilers of the "Dacotah" work properly; but the fact of their construction being very new and complicated, as also the valve-gear of the main cylinder and their management not well understood by the only class of engineers whose services at sea can be had, together with the additional fact that the " Dacotah " will be employed on very long voyages, requiring high average speed, and at times far distant from a port of refuge, or place where repairs to machinery could be made in case of need, had very great influence—indeed, the chief influence —with