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WELLINGTON.

(*ROM T«E DAILY XIMES CORRESPONDENT.) 9th May, 1866.

When I wrote you on Friday last, I mentioned that the Governor was hourly expected in Wellington. For once that expectation was not disappointed, the Eclipse coming to anchor at 10 o'clock on Saturday night. The Governor brought with him Te Heu-heu, Te Ua, and one or two other distinguished or notorious characters, Hori Kingi having returned direct to Wanganui to excuse the Governor's not visiting the up-river natives there on his way from the North, but promising as early a visit as possible. After the mail for London on the 15th, it is stated that his Excellency will go northward again, very probably to Wanganui, although Kawau is spoken of, the late stay there having been only for five or six days.

After considerable hesitation Thompson consented to visit the Governor at Hamilton, and at the interview he professed himself desirous to cultivate friendly feelings for tbe future. The Governor was anxious that Thompson should visit Wellington, and a sort of half promise was given that he would do so within the next few months. The interview is said to have been a satisfactory one, but only bits of it are in circulation, and some of these are not reliable. The Governor is not desirous that the full particulars should transpire, until after he has forwarded them to the Secretary of State, and they will probably first ace light in the form of a paper laid on the table of the Assembly. It is true, however, that the Governor was told by Thompson, that Rewi had said (in reference to His Excellency's desire to meet him) that " he didn't want to see any more white men while he lived, for he should see enough of them afterwards down below ;" but. it is not true that he also said, that he would never cease fighting until he regained Waikato. He did, however, say something about fighting at Taranaki as often as we were prepared to fight him. I could give you a sensational paragraph about " Ake ! ake ! ake ! " but the subject is of too serious moment to joke about. It is, so far as I can make out, a case of Let me alone, and I will let you alone, which is decidedly satisfactory, and has already been practically carried out for eighteen months so far as Waikato is concerned.

This morning's paper announces that the Executive have decided on hanging three out of the four natives convicted for the murder of the Revd. Mr Volkner, and that the other sentences are under consideration. As I have before stated, I scarcely saw how the Governor could avoid this course, but I had little expectation that he would adopt it— the strong expression of public opinion in England has no doubt decided the Governor, if the report is correct, which I suppose it is. A Gazette published last night contains the appointment of Mr Paterson to the office of Postmaster- General, and that Joseph Hawdon, Esq., of Nelson, N. G. Morse, Esq., Nelson, and Ponsonby Peacock, Esq., of Auckland, have been called to the Legislative Council, the resignation of Messrs Walton and Tancred being also announced. Mr Peacock was lately candidate for a seat in the House of Representatives for the Pensioner district, but retired in favor of the present member. There is no more gossip about the other expected Cabinet appointments, except that it is said that it is not altogether unlikely, after all, that Colonel Russell may retain the Native Secretaryship. If such is the case, it must arise from one of two causes, viz., either those who have been asked to accept it have declined it (and it is said that Mr Bell and others have been), or that Colonel Russell has so conducted the duties of his office as to remove all {pretext for seeking a successor. At any rate, I suppose that the appointment is still open, or it would have been gazetted, as is Mr Paterson's. The " Loan Allocation Commission" are expected to return here on the 23rd, hay- 1 ing by that time completed their 'investigation at Auckland and Taranaki. Thomas Kelly, Esq., of the latter province, has been gazetted a Commissioner in the room of William Thomson, Esq., deceased. The steam subsidies for the next six months will be very small, there having been some close tendering by the two companies. It will be recollected that the N.Z.S. Company's contracts fell in a few months ago, but that oa a representation being made of the injury that must ere long inevitably ensue to the revenue, if the P.N.Z. Company were allowed to obtain a monopoly otherwise than by fair competition, the subsidies of the two companies •were arranged to be mutually paid up to June ; in the meanwhile, each would have the opportunity of competing on equal terms for the next year's services. As Friday, the 27th of April, drew near (the day fixed for receiving tenders), there ■were confident rumors that the N.Z. Company would find themselves nowhere, unless they tendered at aa absurdly low figure. The P.N.Z. Company, it now appears, had tendered absurdly low, ani

the N.Z. Company were \rise enough to do 89 also. Aa a consequence, the four interprovincial services which we are to have instead of six, as at present, have been equally divided between the two companies; while the Sydney and Auckland contract falls to the P.N.Z. Company, and the Melbourne and Otago contract to the Otago S.S. Company. The following are the extraordinarily low rates of acceptance, viz. : —

P.N.Z. Co. Total, £12,480 per annum. Auckland to Sydney £5280 per annum Do to Port Chalmers 3600 do 3600 do

Manukau to Bluff

N.Z.S.K. Co. Total, £7200 per annum.

Auckland to Port Chalmera £3600 per annum 600 do

Manukau to Bluff 3'

Otago S.S. Co. Total, £4800 per annum. Melbourne to Pfc, Chalmers £4800 per annum

boats).

The result is that we are to have four Inter - provincial boats running for L 14,400, the hitherto six boat service costing, say L 35,000. The two^ Intercolonial services being also proportionately reduced from what they were costing only a very little while ago. What their exact cost used to be, I have not the figures at hand precisely to say. Of course, it cannot be expected that the companies will attempt to cut one another's tbroat9 many times ; they will eventually come to aome mutual understanding by which a fair subsidy may be had by both of them. Ifc will be satisfactory to know that the trade that will have to be made by the steamers thrown out of subsidy is (so far as the N.Z. Go. is concerned) almost ready to hand; meanwhile the money- saving j which will accrue to the Colonial revenue from the Government having dealt justly to the N Z.S. Company during the past few months, will, I suppose, be duly made a card of. The loss of the Wonga at the Grey is a serious one, because it was a profitable trade, otherwise the insurance of L3OOO will in a great measure cover the value of the boat. The company were offered four or five thousand pounds for her last year. I suppose it is not trenching on private < matters to mention a snug little dinner party that took place at the Club on Monday evening. The directors of the N.Z.S Company invited their indefatigable manager, R. J. Duncan, Esq., to meet them on the occasion. It was, no doubt, intended as a mark of their owe individual appreciation of the energy and tact with which he discharges his onerous duties, and as such could not be without a highly beneficial effect on those exertions for the future; but there was something accompanying it more substantial than even good solid pudding, as I understand that on behalf of the Company they had the same day placed a handsome check to his banking account — and richly he merits it. An advertisement this morning calls for tenders for telegraph poles, for the use of the line from the heads to Wellington. The tenders are to be sent to the Secretary of the Post Office on the 18th inst., and | the poles are to be on the ground by the 15th of June. Dr Hector, who has been for some months in the North, and latterly in the Governor's suite, has, I see, returned to Wellington.

There has been some fighting near the Wairoa, and some fifty prisoners taken.

A deputation of about thirty Manawatu natives are just now koreroing with the Superintendent, in a hired store just off the beach, the rooms in the present temporary Government office being of too small a size to accommodate them. It relates to the date, place, and mode of payment of the purchase money, in reference to which question the cattle squatters in the district still hope to induce some of the native owners to withdraw or withhold their assent to the final completion of the sale.

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WELLINGTON. Otago Witness, Issue 755, 19 May 1866

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