WELLINGTON.

Otago Witness, Issue 978, 27 August 1870, Page 5

WELLINGTON.

(FROM OX7R OWN CORRESPONDENT.)

August 12th.

No progress has yet been made in Committee with the Public Works and Immigration Bill, but a rather interesting debate took place on the motion for committing the Bill. Mr Fitzherbert made a, very excellent speech, and he was followed by Mr Richmond, who, abandoning the philosophical theories in which he usually delights, came forward with a number of practical suggestions. Mr Driver followed these two speeches up by an earnest appeal to the Government to make the administrative machinery of the Bill more perfect, and to exclude the Provincial Governments from, control over the expenditure. Mr Carleton and Mr J. Cracroft Wilson also made speeches which were unfavourable to the Bill ; and Mr Stafford spoke a few sensible words, endorsing what Mr Driver, Mr Richmond, and Mr Fitzherbert had said, and demanding further information as to what was really proposed to be done before he could agree to the Bill. The gist and essence of the objections urged, and the suggestions offered by the gentlemen I have named, were, that the Bill was too diffuse and indefinite, that many of its clauses were inconsistent with each other, that it really left the whole question of administration in the hands of the Government, without giving the House a proper power of control, that it might be administered in any way, and be converted into a Provincial scramble, instead of a great colonial scheme. Tie appointment of a special Minister, charged with the direct responsibility of carrying out the scheme, was strongly urged ; and also the appointment of a board of advice, subordinate to the Government, but keeping regular minutes, which should be annually laid before Parliament. Mr Vogel had of course declared that the Government would make no more concessions and accept no more amendments ; but he, " whispering he would ne'er consent,, consented," and announced v,hat the Government had no objection whatever to the institution of a Minister of Works, or the creation of boards of advice. To the other objections urged, he declared that the only way to obtain a perfect measure was to pass the Bill as it stood, and allow it to work out its own perfection. The portions found to be unworkable could be amended next session. This proposal of Mr Vogel's is really eminently characteristic of New Zealand legislation. The first half of each session of Assembly is usually devoted to amending the Acts which have been hurried through the House in the last week or two of the previous session. It is, however, rather a dangerous thing to try with an Act regulating the expenditure of eight or ten millions of money, and I do not think that the House will be disposed to trust to chance in passing the Bill. A good deal of mischief might be done before next session, and that mischief of a character which no Amendment Act could possibly remedy. Mr Vogel's declaration that the Government will accept no more amendments has been so often made and so often broken that the House does not much believe in it now ; and although he says that if any attempt is made to amend the Bill it is hopeless to think of its passing this session, I think that a good many amendments will be proposed in each House. Mr Hall is going to propose the following amendments :—: — " There shall be a Board, to be called ' The Board of Works/ consisting: of not less than three or more than seven persons, who shall be appointed by the Governor in Council. There shall bo a President of the Board of Works, who shall be a responsible Minister of the Crown, and shall be called ' The Minister for Public Works.' The President of the Board shall prßside at the meetings of the Board ; in his absence some member elected by the Board shall preside. Any three members of the Board shall form a quorum. The Board shall keep accurate and ample minutes of its proceedings ; and a copy thereof, and of all reports furnished by the Board to the Governor, shall, within ten days after the commencement of every session of tne General Assembly, be laid before both Houses of the General Assembly. No contract shall be entered into for any work to be executed under Parts 11. and 111. of this Act, until the plans and specifications of such work, together with full particulars of the terms and conditions of such contract, and the nature and amount of the security to be given for the performance of the same, shall have been laid before the Board, and the Board shall have reported thereon to the Governor. The Board shall, in the month of May in each year, furnish to the Governor a full and true report of its proceedings during the then preceding year, which report shall be laid before both Houses of the General As3eznbjy within

a

thirty days- after the commencement of the session then next ensuing. The Chief Engineer in charge of the works shall be ex officio a member of the Board." The only other financial Bill which has made any progress since my last lettor is the Payment to Provinces Bill, which has passed through Committee without any very material alteration, except in two respects. The first is in regard to the case of the county of Westland. To have adhered strictly to the capitation grant to a population 75 per cent, of which is composed of aduit males would have been manifestly unfair, and the subsequent concession of a douceur of L3OOO did not remedy the injustice. Mr Hall and the Westland members themselves fought hard for a larger allowance, and succeeded in getting a further increase of L3OOO. Mr Vogel, at the same time, announced that the Government intended to introduce a Bill to make the Chairman of the County Council a nominated, and not an elective officer, and also to promote the annexation of the Grey district to the Province of Nelson, the Teremakau river being made the northern boundary of the county. Almost the whole of the inhabitants of the Grey have petitioned in, favour of this being done, but Mr Curtis, the Superintendent of Nelson, does not seem at all anxious to enlarge the territory over which he is to hold sway. He is not likely, however, to offer any great opposition. The other and most important change made in the Bill was an amendment by which Municipalities "are excluded from all participation in the annual L 50,000 grant to road districts. This amendment, proposed by Mr Kelly, was at once accepted by the Government, but was strongly opposed by Mr Birch, who pointed out how it would prejudice the interests of the up-country municipalities of Otago. Opposition was, however, useless. Mr Fitzherbert had given notice of the following amendments, but for some reason or other did not move them :—: — " That in the distribution of the L 50,000 to be allotted to Road Boards, the following principles of apportionment shall be observed, viz. :—(1.): — (1.) That every Road Board in each province shall receive a minimum annual contribution in aid of its rates, in the proportion of ten shillings for every one pound raised by local rate : Provided that in no case shall any contribution out of the said L 50,000 be granted in aid of roads within any town or municipality. (2.) That the Colonial Secretary shall cause to be laid on the table of the House of Representatives, within one month after the commencement of each session, a nominal and detailed return of the contributions awarded to the several Road Boards within each province, made during the preceding year." Mr Vogel proposed an amendment to *jause half the grant to be distributed in proportion to the rates raised by the districts, but this was objected to, and as he did not press it the clauses passed as they stood.

Mr Macandrew's Bill, proposing to validate the Otago Roads Ordinance, gave rise to a nght of several hours' duration an Wednesday night. It was strongly opposed by the runholding party, andMr Graham and Mr Driver were its principal opponents. They were backed up by several Canterbury members: Mr Hall being particularly active, and Mr Wilson exceedingly vigorous. After several divisions, Mr Maeandrew at last got disgusted, and proposed to abandon the Bill ; but this its opponents would not consent to, as it would have thrown op them the responsibility of the loss of the measure. They accordingly resisted the attempt to drop the Bill, and they would not allow it to be gone on with. This happy state of things lasted till half-past one o'clock in the morning, when, all parties being tired, progress was reported, and leave obtained to sit again, The Canterbury members are strongly opposed to the University Bill, and Mr Eolleaton is going to try and entirely alter its character. They opposed it iv the Committee and, being beaten there, are carrying that opposition to the House. The real secret seems to be a rather mean jealousy of Otago. They object to the University being in any way localised, and want it to consist merely of a Council of Examiners holding local examinations wherever it may be convenient, and having affiliated colleges in different parts of the colony. They strongly oppose the proposed grant of L3OOO a year to the University, and in this they are supported by Mr Bunny, who, however, only objects to the grant because he thinks the colony Bhould not pay for the luxuries of education while it neglects to do anything for the primary instruction of its youthful population. Mr Fitzherbert; wishes to ace the grant of L3OOO largely increased for the first ten years, and then to cease. The Bill will, I fancy, pass very much in its present shape. In connection with this subject, X may mention that Mr Richmond is going to move, "Th&i it ip the duty of «bhjo

Legislature t<? secure/that provisitai shall be made for the edupation of the people in all partß of the country. That for that purpose the Government should^ during the recess, prepare a Bill to be introduced early in next session." The main provisions of thi3 Bill he proposes should be those put down in the supplementary order paper. Mr Driver has abandoned his resolution in favour of an assimilation of the land laws of the colony, based on free selection. He said that it was useless to think of doing anything in the matter this session, but that had he gone on with it, he would have been quite ready to accept Mr Macandrew's proposed amendment, which ran as follows :—: — " That, in the opinion of this House, it is desirable that there should be one uniform Land Law throughout the colony, based as far as practicable upon the principle of free selection ; but that inasmuch as the Land Laws of the various provinces have heretofore been framed in accordance with the desire of the people of such province, and upon the principles peculiar to the circumstances of each, it is expedient that any assimilation of the Land Laws should be based upon the opinions of the respective Provincial Councils, and that the Government be requested, during the recess, to ascertain the opiaions of such Councils accordingly."

The debate on Mr Gillies's motion, " That it is essential to the independence of Parliament, and to the efficiency of the public service, that colonial officers receiving salaries under the appropriation of the Colonial Legislature, excepting those xvho hold political offices, should not in future be eligible for appointment to the Legislative Council, or to sit in the House of Representatives ; and that no member of the Legislative Council or House of Representatives should be eligible to any office of emolument under the Colonial Government for a period of one year after ceasing to be a member of Parliament," was an eminently unpracticable one, and ended in smoke after several adjournments and two or three divisions. The first amendment was to leave out the words marked in italics, and this was carried by a majority of one, the words, "officers receiving salaries under the appropriation of either the Colonial or Provincial Legislatures, except those holding political offices, and Superintendents of provinces," were inserted instead. MrJ. C. Wilson proposed to further amend this by adding, after the words " political offices," the words "in the General Government ;" but this was lost by a large majority. Mr Fox then moved the omission of all the words after " House of Representatives," in the original resolution, and this waß carried on the voices. Then Mr Macandrew said that the resolution, as it stood, would shut out from political life half of the inhabitants of Otago, and he moved the addition of the words " Provided nothing herein contained shall be held to apply to schoolmasters, clerks to, or collectors of, Road Boards, receiving salaries under appropriation of the Provincial Council." This was agreed to, and then, on the much patched resolution being put to the House, it was thrown out altogether on a division of 26 to 22. The members of the Government voted with the majority. Mr Stafford is going to ask them to-day if they intend to bring in a disqualification Bill embodying their own ideas on the subject.

Who is to be the new Minister of Public Works, is a question much talked of. The Hon. Col. Russell is believed to be casting longine eyes towards the office, road making and office being two of his hobbioa ; but it is not likely that any one in the Upper House, or outside of the Lower one, will be appointed. It is also probable that a Middle Island man will be preferred, and the general impression is, that if Mr Dillon Bell returns in time he will be entrusted with the portfolio. Some people have whispered the name of Mr Macandrew, but the idea of entrusting the expenditure of a million or two per annum to that gentleman would not be very highly approved of, and the mere mention of such a thing would seal the fate of both Ministry and scheme.

There really seems to be no hope of an early termination of the session, although many members have already departed homewards. The Council will take a good deal of time in considering the financial bills when they all get there, which will not be for a couple of weeks, as far as pan he seen. Already the honourables are showing ajgns of restivenes3, and the Reciprocity Bill is giving rise to a great deal of talk and considerable opposition, The Land Regulation Bill is still bejmg foughfc over in the Council, and will, I fear, be numbered with the Innocents, even if it reaches the House at all, which is not by any means certain, as Mr Seweil wants to introduce a lot of amendments, which Mr Waterhonse declares will entirely destroy the principle of the Bill, and render it useless. Mr Ernest Gray has carried a rawto-

tloninthe Council for giving to brands on wool "and flax the same "protection which trade marks enjoy. It is not likely that the requisite Bill will be passed this session, although the Government last night brought dow*i no less than five new Bills on various subjects.

The Representation Committee is hard at work, and "will probably report on Tuesday. The distribution of members in each province has been practically left to sub-committees formed cf the members of the Committee who belong to the provinces. Of course there is great jealousy exhibited, and great dissatisfaction created regarding the decisions arrived at. The Government has announced its intention of accepting and pushing through the report of the Committee, whatever it is ; but I hear that a very strong opposition is likely to arise in several quarters, and that an attempt will be made to throw the Bill out altogether, as no attempt at amending it in the House would have any chance of success. The dissatisfied ones would rather bear the ills they have than fly to others that they know not of.

August 15th.

The whole of Friday's sitting was occupied with the discussion in Committee on the Public Works Bill, or as it is more popularly designated and has even been called in the House, the " Devil and All his Works" BilL About eight hours and a half of talk only disposed of the first twenty-four clauses, and as there are between 90 and 100 clauses in the Bill, it will probably occupy the greater part of next week before it is got through. On the second clause Mr Richmond moved an amendment, the object of which was to limit the expenditure on North Island roads to those lines which the House should previously approve of ; and Mr Rolleston, a further amendment to confine the expenditure to roads in unsettled districts. Mr Vogel flatly refused to accept these or any other amendments, and declared that if the House would not pass the Bill in substantially the present i shape, it must be dropped altogether for j the session. Mr Stafford said he would j accept the alternative, but he begged Mr | Yogel not to resist reasonable amendments brought forward with a genuine desire to render the Bill more perfect and more workable. Mr Fitzherbert also urged the Government not to take too high a stand ; but he admitted that so important did he consider the Bill, that although he would express his opinion freely on every point, he would not vote against the Government in any division, as doing so might imperil the Bill for the session. A great deal of talk took place on these first amendments. Mr Reader Wood intimated his intention of supporting the Bill as it stood. The time for opposition was past ; the House was determined to have the Bill, and he would leave the whole responsibility of it to the Government. Mr Hall very strongly protested against this course, and pointed out that it was impossible for the House or individual members to divest themselves of responsibility in the matter. Mr Bunny compared the Bill to a black draught to some members. It was, no doubt, very nasty, but it had to be swallowed, and might as well be swallowed at a gulp, instead of being sipped. On the amendments being put, they were negatived, and their movers did not ask for a division ; but the Government party tried to force them to one through the agency of Mr Macandrew, who gave his voice for the amendments in order that he might demand a division. The little dodge did not succeed, however, owing to a mistake of the door-keepers in regard to locking the doora. Mr Richmond's next amendment was to render the L.400,000 vote for North Island roads subject to future appropriation by the House. This was quickly negatived, and Mr Jollie then tried to reduce the proposed maximum grant of LIOO,OOO a-year to one-half that amount. On this a division took place, the original amount being carried by 41 to 11. A few amendments of a not very important character, suggested by Mr Fitzherbert — one being that no contracts in excess of any year's vote should be entered into — were accepted by (the Government, and then on clause 6 there was another long debate. Mr Richmond moved an amendment requiring plans and specifications of all railway works recommended by Government to be laid before the House before its sanction was asked for the construction of those works. The Government refused to acoept the amendment, and Mr Richmond declared the refusal to be a proof of the reckless manner in which the Government intended to proceed. He declared their proposals to be the most utterly unbusinesslike whiph were ever placed before a Legislature. On the clause enabling Government to employ surveyors, engineers, and other officers, Mr Rolleston asked that the amount to be spent 'in this way might be limited, Mr Vogel said it was impossible to say what sum might be required, as they intended to get the very best telenfc which could be obtained—

talent superior probably to anything the colony had yet seen. Any engagements made with persons in the colony would only be made for a year; but if they brought able men from other countries, they would have to give three or five year engagements. Mr Rolleston then wanted the Government to promise that no surveys would he undertaken without previous consultation with the Superintendent of the province in which they were intended, but Mr Vogel would 1 not even promise thin, and the clause passed. Mr Fitzherberfc succeeded in obtaining Mr Vogel's assent to an amendment on clause 10, allowing works in the Middle Island, to proceed in proportion to the amov^t authorised for works in the North Island instead of depending on the amount actually spent in the North Island. Mr Hall wanted the construction of tramways as well as of railways authorised, pointing out how useful branch lines of that 'sort might be. Mr Vogel, however, thought the alteration would open the door to certain abuses, although he admitted an exception might be made in favour of Westland. Some discussion ensued as to the difference between rail and tramways, and the clause passed on an understanding that in the interpretation clause the words " whether worked by horse or steam power," should be inserted after the word Railways." Mr Peacock tried to get an amendment, allowing a portion of the money falling to Canterbury's share to be devoted, if found desirable, to harbour instead of railway works ; and he and Mr Rolleston pointed out how little use the railway works would be without a good port, and the great importance of making harbour works so that the trains might be brought alongside of vessels. Mr Vogel quite admittted the importance of such works, but objected to their being introduced I into the Bill, advising Mr Rolleßton, however, to come down with separate proposals on the subject, and promising him a fair field in which to discuss the maiter. Mr Peacock's amendment was negatived. On clause 15, by which power was given to pay for railways in land, a very long discussion took place, Mr Richmond proposing the omission of the words giving that power. Mr Fitzlierbert urged that the power should at least be limited to alternative sections of specified depth, but Mr Vogel declined to make any change, and on a division the clause was affirmed by 39 to 11, the minority consisting of Messrs Peacocke, Webster, Mervyn, Graham, Jollie, Swain, Bro^n, Armstrong, Hall, Munro, Stafford, Kenny, Kynnersly, Stevens, Bradshaw, Richmond, Wilson, and Rolleston. Clause 16 was amended by Mr Fitzherbert so as to give the Assembly control over lands reserved for railway purposes in any province. Mr Hall moved the omission 'of clause 18 altogether, as he objected to half the stamp duties being given to meet the railway expenditure ; but he was unsuccessful, and Mr Wilson was equally so in an amendment proposing to limit the whole expenditure on Railways to four millions. The 24th clause, whioh spread the expenditure ovor a period of ten years, Mr Vogel himself got struck out, and then, as it was long after midnight, progress was reported, and the week's work came to an end. In the remainder of the Bill a little quicker progress will probably be made ; for, although there are an immense number of amendments ready to be proposed, it is so hopeless to expect that any of them will be carried that the movers will probably be content to simply place them on record, without wasting time in discussion.

It seems we are to have a Disqualification Bill after all. Mr Gillies's resolutions having been rejected, Mr J. C. Wilson at once gave notice of his intention to bring in a Bill on the subject, and next day Mr Stafford asked the Government if they intended to take any steps in the direction. Mr Fox, in his reply, said that Mr Gillies in his resolution had forestalled him, but that that resolution went further than the Government approved of, and, as the House had altered it, became so very objectionable that the Government felt obliged to vote against it altogether. They could not agree to the disqualification of provincial officers, or to render members of the House ineligible for any appointment for a certain period after vacating their seats ; but a Disqualification Bill of a limited nature was required, and the Govern/nent intended to at once bring it in, and to pass it this session. He moved the suspension of the Standing Orders, to enable him to introduce the Bill. The Bill was then read a first time. It is said that when Mr Stafford learned that Mr Gillies's resolution was thrown out, and that the Government had voted against it, he declared that if the Government did not bring in a Bill on the subject he would go to his home by the first steamer, and take no further part in the legislature of the colony.

Signs of a determination to get through the business of the session as quickly as

possible are now becoming apparent. On j Tuesday Government is going to ask that its business may for the remainder of the session take precedence of that of private members on every day except Wednes-'j day, and Mr J. C. Wilson has a notice on the paper in favour of Bitting on Mondays. Wonderful to relate, the Upper House has already commenced to sit on five days in the week But then it rarely j sits after dinner on any day, so that it is not likely the members will become usedup by the extra day's labour. A very great alteration in the system of Private Bills is likely soon to be introduced. A Committee was appointed some time ago to consider the best means of simplifying the forms of the House, and the report of this Committee in regard to Private Bills has been adopted. It recommends the abolition of the Private Bill office, and the office of Examiner, proposes to abolish a large number of the standing orders, to throw on the two Speakers and the Chairman of Committees the duty of seeing that owners of property likely to be affected by any Bill have received due notice, to allow Private Bills promoted by the General or Provincial Governments for public purposes to pass without fees, and to charge a regular sum of L3O for all Private Bills promoted by private individuals. The Council is now considering these alterations, and if it concurs the new system will be in force next £63sion.

Mr Eyes,thelateSuperintendentof Marlborough, has introduced a Bill to vest the election of Superintendent of that province in the electors instead of in the Provincial Council. This Bill is supported by the other Marlborough member, Mr Kenny, and it was stated by Mr Eyes that Mr Seymour, the present Superintendent, cordially approves of it. A very numerously signed petition in its favour has also been presented. The second readieg passed without debate, but I am told that considerable opposition is expected in Committee. The Westland members intended to try and get the Bill extended so as to apply to the election of the Chairman of the County Council ; as the Government intends to make that officer a nominated instead of an elected officer, of course there is no use in doing so. It is rumoured that Otago is casting an envious eye towards Westland, and that Mr Macandrew and Mr Reynolds have concocted some scheme for annexing to Otago what will be left of the county when Nelson takes the Grey district.

Lt is understood that Otago is likely to be one of the first places in the colony to take advantage of the Public Works Bill when it passes, as Mr Macandrew intends to immediately forward to the Government the plans for the Clufcha and Port Chalmers Railways, in order that they may be laid before the House and be authorised during the present session. Canterbury will also probably follow suit in regard to some of her proposed Railway lines.

The Representation Committee will probably report this week. Except in regard to the division of the gold fields into districts, I believe that the existing distribution of representation will not be greatly altered. The goldfields boroughs and the special goldfields members are to be abolished, and five new districts be made out of the goldfields and the present Bruce district, which is to be abolished in name. The new districts will be Hampden (considerably contracted), Dunstan (including Cromwell, Clyde, and Roxburgh), Mount Ida (including Naseby, Hamilton, &c), Tuapeka (including Lawrence, Waitahuna, Tokomairiro, Waihola, Matau, &c), and another district the name of which I do not know, but which will include Tapanui, Switzers, the Nokomai, &c. The city and suburban districts will remain nearly if not quite as at present.

We have now quite a fleet of men of men of war lying in harbour, the whole of the present Australian squadron, consisting of the Challenger, Blanche, Virajro, and Rosario having met here to await the arrival of the Clio with the new Commodore. The Galatea will, it is expected, accompany the Clio, and they may be expected here in about a week. After handing over the command to Commodore Stirling, Commodore Lambert and the ChnUenger will go home direct.

August 16th.

A new Bankruptcy Act, or rather an Amendment Act, is now before the Legislative Council, and stands for its third reading to-day. It consists of between 80 and 90 clauses, and has been greatly amended and altered in its progress through Committee. I shall be able to send you a copy by the next mail, for it will then be printed with the amendments. At precent the Bill is quite unrecognisable, and would ©nly mislead. One of the provisions of the new Bill is that no Bankrupt shall be entitled to a discharge unless his estate pays a dividend of ten shillings in the £. A majority of creditors may, however, by

[resolution, enable a bankrupt who does l not pay the required dividend to obtain Ibis discharge. The Council has taken a good deal of trouble with this Bill, but it is scarcely likely that it will pass the House this session. It will be very late when it gets there, and Bankruptcy Acts are not those which best beat being hurried through the Legislature.

The original Land Registry Bill haa been withdrawn, and a freßh one introduced and passed through Committee. This was adopted as being a simpler plan than amending the first Bill, which was framed on the model of the South Australian Act, but which was found to be unsuitable, as it -only provided for a single central registry office. The new Bill provides for five central offices, viz. : Auckland, Wellington, Nelson, Christchurch, and Dnnedin. It is very likely that this Bill will share the fate I have predicted for the Bankruptcy Bill, and be numbered with the innocents.

Early in the Session a Select Committee was moved for by Mr Stevens to enquire into the position of Saving 3 Banks established under the Act of 1858. Last week the Committee reported : " That it is expedient that all Banka existing under the Savings Banks Act, 1858, shall be compulsorHy closed, and that the windingup of such Banks should be conducted under the provisions of the c Post Office Savings Banks Amendment Act, 1869,' and that any surplus remaining after the realisation of all assets and discharge of all liabilities of any Banks, including due compensation to any officers for loss of office, should be payable to the Provincial Government of the Province in which such Bank is situated, and be applied to such charitable and educational purposes as the trustees of the Bank shall recommend ; or failing the trustees making any recommendation, the money be payable to the public account of the province, to be appropriated by the Superintendent and Provincial Council to such charitable and educational purposes as they may think fit." It is probable that thia report will be acted on.

The desirability of establishing a uniform railway gauge for the colony, was, I think, urged on the attention of the House by Mr Richmond and Mr Macandrew. A large Select Committee was appointed to consider the matter, and they havp bought up a very able report which embodies the principles of a Bill which Mr Richmond, acting on behalf of the Committee, is going to-morrow to ask leave to introduce. The conclusion the Committee have arrived at, is in favour of a 3ft. Gin. gauge, and this they recommend should be enforced by law in all future railways except those which form part of the proposed system of railways on the Canterbury plains. The report has been printed, and 1 enclose a copy, as it is too long to be appended to a letter.

Another interesting report is one by the Select Committee on Submarine Cables. As it is not very long, I append it. The Postmaster-General has introduced a Bill embodying the recommendations of the Committee, which are as follows :—: —

The Select Committee appointed "to enquire into the subject of connecting New Zealand, by Submarine Electric Cable, with othsr countries," beg to report —

That they have taken into consideration the several means by which a cable connection with Australia might he established ; and that they have also considered a special offer made by Mr Blackett, on behalf of the Telegraph Construction and Maintenance Company, and an offer which was sent out, through the Commissioners, by Messrs Henley and Co. The Committee were not able to recommend that the offer submitted by Mr Blackett should be accepted. Whilnt recognising that it is most desirable to connect New Zealand with Australia by electric cable— especially seeing that Australia is likely soon to be connected with Great Britain— the Committee agree that it is not desirable that an absolute money cost should be imposed upon the colony, as a consequence of securing that connection, unlesß the line was entirely in the hands of the Governments of the different countries through which it must pass, between England and New Zealand. It appears to the Committee that the principle that lines of telegraph should be in the hands of the Government having bean recognized in Great Britain and most of the colonies, the same principle might most advantageously be carried out in respect to submarine lines. The Committee agree, therefore, that the best course which could be adopted would be for the Governments of Great Britain, India, and the colonies, to combine for the purpose of constructing a through communication ; the fnnds to bp raised by Graat Britain, and the respective countries to be charged annually for interest and redemption fund, in proportion to the extent to which the line shou d prove to be used hy each.

Failing such an arrangement, the Committee believe that the next best plan would be that a cable should be laid and worked by a contractor, without guarantee, but upon a concession for a stipulated number of years. It would be necessary, however, that in the event of anysuoh concession, stringent con.

diti eras to the following effect should be inoorp torated with it : —

(1. ) A time to be specified, within which the 1 hie must be completed. (2. ) Penalties to be stated, sufficient in amoi int to insure that the line shall be kept in wi >rking order. (3. ) If the cable should prove insufficient for t he work to be done, a second cable to be lai id, or the monopoly to terminate. (4.) Power, within specified limits, to regul; ite the rates of charge. (5. ) Provision insuring a regular order in the trans) Mission of messages, including right of priori ty for Government messages. (6.) Defined terms on which the Government might at any time purchase the cable, and w "holly extinguish the concession. (7.) On non-fulfilment of any of the preceding conditions, the Colony to have tha right t » terminate the monopoly. Sho aid an arrangement under this concession i irinoiple be effected, there would be nothirigto prevent such a wording of the purchasing condition as to enable Great Britain, to become thejpurchaser, in the event of its proving possible to carry out the arrangement already stated as that which the Committee believe would be best for the colony.

The Committee have aIBO had under consider&idon whether, instead of .a monopoly being granted, the colony should, far a given number of years, undertake to employ a cable to an amount yearly not less than a sum to be specified ; that sum to be paid for each year, but the money paid in excess for any year or years to be chargeable with future business.

Whilst the Committee do not recommend the a doption of such a plan, they think it one that might be worthy of further considerati on should there be a failure to secure a cable on either of the plans previously stated.

The Committee draw attention to the appended letter from Messrs Henley and Co. The Committee recommend :— (1.) That authority be given to the Government to conclude an arrangement with Great Britain, upon the basis of the Imperial Government finding the necessary funds, &o. ; or (2), at its discretion, to agree with responsible contractors, upon the basis of a concession, subja ct to such, restrictions as those already set forth.