D.—No. 3.

last a fresh promise from you, that at the expiration of the contract, if more ships were needed, you would communicate with us before engaging others. Regretting with some disappointment the result of our interview, we cannot help thinking it has arisen through misunderstanding, and have therefore thought it desirable to remind you of these facts in writing, in the hope that it may lead to a better understanding in future. We do not desire that any privilege or favor should be extended to us; we only ask that, in public matters, no undue favors be shown to other firms. We might mention that, by our being thus excluded from a participation in this business, the Colony is not only losing very many eligible free emigrants who are offering through our agents, but many of their friends who would accompany them, and pay their own passage-money, in part or in full. We shall be glad to receive your acknowledgment of this letter, —and remain, &c, Houlder Brothers & Co. W. S. Grahame, Esq., and John Morrison, Esq., New Zealand Government Emigration Board. Enclosure 2 to No. 4. New Zealand Emigration Boaed to Messrs. Hoijldeb Brothers & Co. New Zealand Grovernment Emigration Board, 3, Adelaide Place, London Bridge, Gentlemen, — 25th October, 1864. We take the earliest opportunity of acknowledging receipt of your letter of yesterday, recounting the various communications we have had with a member of your firm relative to the conveyance of emigrants to Auckland, New Zealand. In reference to our first interview, we distinctly stated to you that our arrangements were not sufficiently matured to indicate what would be done about tonnage at the time you called, but that it was our intention to communicate with you when ships were required ; which simply meant, that if tenders were to be invited you would have intimation. For reasons which we think we explained to your Mr. Houlder at the second interview (but which it is not necessary to repeat here), we had engaged two ships from Messrs. Shaw, Savill & Co., instead of the one experimental ship we first intended, considering that the one ship could not give us the data we wished to arrive at for our future guidance. We have no wish to create a monopoly in the Auckland carrying trade, or to destroy the wholesome checks of competition, or otherwise prejudice the interests of those engaged in making shipments to that port, or to do anything that would in any way injuriously affect the welfare of the Colony. Indeed we cannot think you seriously believe that we contemplated doing anything of the sort. Now, with reference to the extension of our contract with Messrs. Shaw, Savill, & Co., for all ships required up to 31st December next, some explanation may be due to you, in not carrying out our original intention of applying to you for tonnage. Suffice it to say, that we considered the interests of the Grovernment and the Colony generally justified us in adopting the course we did ; and as we are responsible to the New Zealand Grovernment alone for the conduct of their Emigration Scheme under our charge, we respectfully decline to be taken to task by you for the manner in which it has been conducted, and decline to state here the peculiar circumstances under which the Board was placed, and which induced us to depart from the intention referred to, of applying to your firm. No misunderstanding has arisen on our part, but circumstances nave altered the position of affairs, and any conditional promise made by us must be understood to be dependent on what may take place in the interim, and the interests of the New Zealand Grovernment are paramount. And we take this opportunity of reminding you, that a similar state of affairs occurring again in January next may again prevent us applying to you. All that we undertake is this, that if more ships are required after 31st December, and if the interests of the service require it, we will apply to you for tenders of any ships you may wish to place at our disposal. We have no special favors to bestow, either upon your firm or others, and undue favors we repudiate. The arrangements we make are simply matters of business. We pay particular attention to the concluding paragraph of your letter now under review, in which you state that, by your being thus excluded from a participation in this business, the Colony is not only losing very many eligible emigrants who are offering through your agents, " but many of their friends who would accompany them, and pay their own passage-money in part or in full." If this is so it is to be regretted, but only, of course, where a sufficient number of the proper people cannot be obtained through other channels. This particular paragraph brings again to our recollection the injury the Grovernment Emigration Scheme has sustained through the issue of a circular from your office to the agents above referred to. Of this injury a member of the Board has recently had direct proof; and we regret to add, that although we were led to believe that these circulars were to be withdrawn or corrected, it appears that in one case, at all events, the evil complained of still exists. We are, &c, Wm. S. Grahame, Messrs. Houlder Brothers & Co. John Morrison. Enclosure 3 to No. 4. Hoitlder Brothers & Co. to the New Zealand Emigration Board. Dear Sirs, — 146, Leadenhall Street, London, 25th October, 1864. We thank you for your prompt reply to our letter of yesterday, fully confirming the tenor of our remarks, that you had promised to communicate with us when ships were required for the conveyance of emigrants to Auckland, New Zealand. We are however at a loss to know how that promise to communicate with us could, as your letter states, simply mean, that if tenders were to be invited we " would have intimation." We think the misunderstanding upon this point can hardly be ours. C

9

OF EMIGRANTS TO NEW ZEALAND.