FORMATION OF NEW ZEALAND SHIPPING COMPANY, (PAPERS RELATIVE TO THE).

Appendix to the Journals of the House of Representatives, 1873 Session I, H-10

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1873. NEW ZEALAND.

FORMATION OF NEW ZEALAND SHIPPING COMPANY, (PAPERS RELATIVE TO THE).

Presented to both Souses of tlie General Assembly by command of His Excellency.

No. 1. Mr. J. L. Costee to the Hon. the Colonial Seceetaey. New Zealand Shipping Company, Limited, SIE, — Christchurch, 15th January, 1873. In consequence of a telegram from Wellington which has recently appeared in our local papers, stating that the Agent-General in London expresses to the New Zealand Government his opinion that the emigration scheme is likely to break down unless the contract with Messrs. Shaw, Saville, and Co. is extended for a further period of two years, I am desired by the Provisional Directors of " The New Zealand Shipping Company, Limited," to suggest to the Government that it will be unadvisable to renew the contract at the present time for so lengthy a period as that suggested. I am further desired to intimate that this Company is prepared to enter into contracts with the Government for the conveyance of passengers and cargo between London and New Zealand, and with this view tc inquire from the Government what their requirements will be, and if they are prepared to enter into negotiations with this Company, either in the Colony or London. The Directors also desire me to acquaint you with the present position, and the objects of the Company. You will receive herewith a copy of the Memorandum and Articles of Association of the Company, which has been duly registered at Christchurch. The capital has meantime been fixed at £100,000, but powers are provided for readily increasing it when required. Of this amount one-half, £50,000, was offered for subscription in the Canterbury Province. Applications were received in excess of that amount, and the whole £50,000 has been allotted, chiefly to importers and exporters of influence. It is the intention of the Directors to forthwith seek the co-operation of the other Provinces, in order that the operations of the Company may be extended throughout the whole Colony, and the £50,000 capital temporarily reserved will be offered for subscription in other parts of the Colony, and it is anticipated will be taken up by importers and others whose influence will assist towards the successful carrying out of the objects of the Company, which are, to secure to the Colony increased shipping facilities, to check the absolute monopoly hitherto held by one shipowning and shipbroking firm, which is felt to be detrimental to the trading and general interests of the Colony, and to insure the employment of a good class of ships, but not to create within the Colony a monopoly which might prove more powerful, if not more injurious, than that which at present exists. It is considered that there is room for the operations of this Company in addition to those of the firm now commanding the entire trade. Notwithstanding the failures, whole or partial, which have attended previous efforts made here, in other parts of the Colony, and in London, to obtain the objects we have in view, it is felt that the New Zealand Shipping Company must command success, from the position, influence, and earnestness of its existing shareholders, which it is anticipated will be largely added to by the co-operation of merchants and others resident in other Provinces, and from the fact that its proprietary will be purely Colonial, directly interested in attaining the objects sought by it, and that the direction of its affairs will rest in the Colony, free from and unknown to the influences which appear hitherto to have effectually militated against the establishment of a second line of trading vessels between London and New Zealand. The Directors have arranged with one of their number, Mr. C. W. Turner, a gentleman of high commercial standing and ability, to proceed to London by the outgoing San Praneisco mail steamer, to represent and act for the Company at that important point. Mr. Turner will be furnished with full and ample powers and means, —will immediately on his arrival place himself in communication with the Agent-General,—and very shortly thereafter will be in a position (there can bo little doubt) to meet a portion of the requirements of the Government, probably for various ports in the Colony, certainly for Canterbury. Mr. Turner will wait upon you personally during the stay of tho "Dacotah" in Wellington, and lam to bespeak for him your kind consideration. He will fully I—H. 10.

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represent the views of the Directors, and, if the opportunity is afforded him, will discuss with the Government the whole question of future shipping arrangements, with the view of business being done between the Government and this Company. It will bo esteemed a favour if the Government will kindly furnish Mr. Turner with an official introduction to the Agent-General in London. I have, &c, J. L. Coster, The Hon. the Colonial Secretary, "Wellington. Chairman.

No. 2. The Hon. J. Hall to Mr. J. L. Coster. Sir, — Colonial Secretary's Office, "Wellington, 20th January, 1873. I have the honor to acknowledge the receipt of your letter of the 15th instant, informing me of the present position and prospects of the Company recently formed in Canterbury under the title of " The New Zealand Shipping Company, Limited," and also alluding to a recently-published telegram on the subject of a proposed renewal of the contract between the Government and Messrs. Shaw, Saville, and Co. With reference to the latter subject, I think it right at once to state that the Government do not approve of the proposed renewal of the contract in question, and they have no reason to believe that the orders which they had already given for the adoption of a different course will not be complied with. With respect to the Company of which your letter announces the formation, I beg to assure you that the Government have received with much interest the information which that letter affords, and will be glad if by any act of theirs they can promote the success of an enterprise which they believe to be calculated to be of considerable advantage in this Colony. In reply to your inquiry whether the Government would bo prepared to enter into negotiations with your Company for the conveyance of passengers and cargo from London to New Zealand, I beg to state that, while the Government have little doubt that contracts for this purpose may be made with advantage to both parties, they deem it inexpedient to enter into them in New Zealand. The arrangement for conveyance of passengers and railway material to the Colony from Great Britain have hitherto been left to the Colonial Agent in London, and, after careful consideration, the Government are of opinion that this must continue to be the case. They do not think that agreements on this subject can be made in New Zealand which might not be found to operate very prejudicially to the interests of the Colony. They have, however, communicated to the Agent-General their opinion of the undesirability of the Colony being still left, in the matter of freight, in the hands of a single firm, and their hope that he may be able, with a due regard to the interests committed to his charge, to avail himself of the services of the New Zealand Shipping Company. I have had much pleasure in discussing this subject with Mr. Turner, the Director of the Company who has just left Wellington in the " Dacotah " on his voyage to London, and in furnishing him with a letter of introduction to Dr. Featherston, of which a copy is enclosed. I have, &c., John Hall.

Enclosure in No. 2. The Hon. J. Hall to Dr. Featiierston. Sir, — Colonial Secretary's Office, "Wellington, 18th January, 1873. I beg leave to introduce Mr. C. W. Turner, a Director of the New Zealand Shipping Company, Limited, who is proceeding to England authorized by the Company to initiate its operations in London. As the Company hopes to obtain a share of the freight, both for goods and passengers, which the operations of the New Zealand Government under the Immigration and Public Works Act places at its disposal, full explanations will be afforded to you by Mr. Turner. I think it is right to state that this undertaking is set on foot by highly respectable persons in the Province of Canterbury, and that it has received the very general support of the mercantile community in that Province. As it is obviously desirable that neither the public nor the Government of this Colony should be dependent on the services of a single firm for the conveyance of passengers as well as merchandise, the Government will be glad if you are able, with a due regard to the interests committed to your charge, to avail yourself of the services of the Company which Mr. Turner represents. I have, &c, The Agent-General for New Zealand, London. John Hall.

No. 3. Mr. J. L. Coster to the Hon. the Colonial Secretary. New Zealand Shipping Company, Limited, Christchurch, 11th February, 1873. I have the honor, on behalf of the Directors, to thank you for your letter of the 20th ultimo, and for having furnished Mr. Turner with so valuable a letter of introduction to the Agent-General in. London. I have, &c, J. L. Coster, The Hon. the Colonial Secretary, "Wellington. Chairman.

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No. 4. The Hon. W. H. Eeynolds to Mr. J. L. Coster. Sir, — Colonial Secretary's Office, Wellington, 26th June, 1873. Adverting to Mr. Hall's letter, No. 8, of the 20th January last, on the subject of the establishment of the New Zealand Shipping Company, Limited, I have the honor to enclose herewith, for your information, the accompanying copy of a letter received by the last English mail from the Agent-General on the same subject. I have, <fee, The Chairman of the New Zealand Shipping Company, William H. Eeynolds. Christchurch.

Enclosure in No. 4. Dr. Featherston to the Hon. the Colonial Secretary. (No. 224.) 7, "Westminster Chambers, Victoria Street, "Westminster, S.W., Sir,— 17th April, 1873. I have the honor to acknowledge receipt of your letter of 18th January last, introducing Mr. C. "W. Turner, Director of the New Zealand Shipping Company, Limited, and in reply to state that I shall have much pleasure in carrying out the wishes of the Government to the best of my power. I have, &c, I. E. Featherston, The Hon. the Colonial Secretary, Wellington. Agent-General.

By Authority: George Didsbuet, Government Printer, Wellington.—lB73. ', [Price 3d.]