RELATIONS BETWEEN THE GOVERNMENT & THE OTAGO ASSOCIATION.

Lyttelton Times, Volume I, Issue 15, 19 April 1851, Page 6

RELATIONS BETWEEN THE GOVERNMENT & THE OTAGO ASSOCIATION.

From the N. Z. Spectator. We have extracted from the " New Zealand Journal, of Oct. 5, a despatch from Mr. Hawes, Under-Secretary for the Colonies, to Captain Cargill, Agent for the Otago Association, in answer to an application from that body, "to be put on a footing resembling1 that of the Canterbury Association," in which that gentleman is informed, that, in consequence of various legal difficulties arising out of the position of the New Zealand Company, it is doubtful whether their request can at present be acceded to. With the generality of readers these official documents are often passed over as uninteresting, but we deem it advisable to direct attention to this application, and that its nature and import may be the better understood, it may not be inexpedient briefly to state the powers granted to the Cimterbury Association. That body has been incorporated by an Act of Parliament (published in the Government Gazette, Jan. 22, and in the Spectator, Jan. 25), by the provisions of which they have, subject to certain stipulations as to the price to be paid for the lands, and the appropriation of the purchase money, an absolute control over the lands of that settlement, which are exeepted from the operation of the Koyal Instructions relating to the disposal of lands in this colony, and from the obligation to contribute towards the payment of 268,000/. to the New Zealand Company, saddled on the rest of the colony, with interest at the rate of 2>% per cent. The Canterbury Association consists of a body ot persons in London, and have established an expensive machinery in London, with their agents and other subordinate officers in the Colony. And the Otago Association desire to be invested with similar powers. All the objectionable features -which were to be found in the New Zealand Company, and which so materially contributes to its failure, are to be repeated in these Associations. The settlers have no voice in the appointment of these self-con-stituted bodies nor any control over their pro- j ceedingSj while if they fail, the debts incurred by them are chargeable on the colony. The interests of the colony have suffered materially from the extensive powers delegated to the New Zealand Company, that it was to be hoped the Government, profiting by experience, would have been careful for the future in granting such powers to similar associations, which only tend to embarrass the operations of the Government while the settler is precluded from having an opportunity of influencing or controlling, the acts of the Association. It has been said of the Whigs, that they were fond of building walls to run their heads against, and if one Company now happily defunct, should have created so much embarassment and inconvenience to the Government, and so much injury to the settlers, the multiplying of these Companies, by establishing them in connection with each settlement now formed, or hereafter to be formed, seems needlessly to complicate and increase the embarrassments of the Colony.

Papers referred to in the above article. In a former number we published a communication from the Colonial Office on this subject. It intimated that Lord Grey is desirous that the Association should be placed on a permanent and efficient footing without delay. Until his lordship, however, obtains legal advice on some points, arising-, it is understood, — out of ambiguities in the Act 10 and 11 Viet. c. 112, fixing the liabilities of the Government in the event of the New Zealand Company intimating their willingness to surrender their Charter, —a temporary arrangement has been made. The Emigration Commissioners have been empowered to receive the price of lands purchased by parties approved by the Association, and to make the necessary allowances towards the cost of passage ; and, pending any more permanent arrangement, Captain Cargiil has been authorised to enable parties, who may be the bearers of certificates from the Emigration .Commissioners, to take possession and acquire a title to the lands they may select. We are now enabled to publish the despatch to Captain Cargiil, investing him with that authority:— Despatch from the Under-Secretary of the Colonies to Captain Cargiil, Otago. Downing Street, Aug. 29, 1850. Sib, —I am directed by Earl Grey to acquaint

you, that, as you are doubtless aware from other sources, the New Zealand Company have announced their intention to surrender their Charter to her Majesty, and from the sth of July last they have ceased to exercise their functions. As this intention was not communicated to her Majesty's Government by the Directors until the last day allowed them by law for the purpose, there were no means of maturing beforehand such arrangements as the change might render-desirable. But it is Lord Grey's wish to do everything in his power to avoid any consequent inconvenience to the Company's settlers, or any impediment to the progress of their various settlements. The Otago Association have expressed a wish to be put on a footing resembling that of the Canterbury Association; and Lord Grey is anxious to give them all the encouragement in his power; but there are various legal and other points which require to be adjusted before it can be settled whether the object they have in view will admit of being carried into execution in the manner proposed. In the meanwhile, Lord Grey has authorised the Emigration Commissioners to receive the money of any parties who may lie disposed to purchase lands at Otago. Some have already adopted that course, and are proceeding to the settlement by the Titan, which conveys the present despatch. lam to state that, in the present state of transition, and until some permanent measures can be settled, Lord Grey feels no doubt that, from your desire to prevent any damage to the interests of Otago, you will be prepared to take such steps as may be necessary upon this subject on behalf of her Majesty's Government; and I am to request, therefore, that you will enable the bearers of certificates from the Commissioners, that have paid money for purchases at Otago, to select their lands accordingly, in like manner as if they had come out formerly with similar documents from the New Zealand Company. And lam further to request, that you will afterwards transmit to Incut.-Governor Eyre such documents as may be necessary for the purpose of issuing their titles to them. I have the honour to be, &c. (Signed) B. Hawes.