E.—4

CORRESPONDENCE WITH AGENT-GENERAL, LONDON. II.-LETTERS FROM THE AGENT-GENERAL.

Note. — The merely formal letters advising the execution of the Orders for railway material have been omitted, but the details of the whole of the material arrived and on its way, are, for convenience, scheduled and inserted ivith the orders sent to the Agent-General in Parliamentary Paper E. No. 3.

No. 1. The Agent-General to the Hon. the Colonial Secretary. 7, Westminster Chambers, Victoria Street, "Westminster, S.W., Sir, — 9th January, 1873. Though recovering from a severe illness, which has confined me to my bed ever since my return from Ireland, I am still suffering so much pain that I can only write very briefly and hurriedly by the present mail. While I deeply regret the delay in the arrival of railway plant and rolling stock should have caused the serious inconvenience mentioned in the Hon. Mr. Waterhouse's telegram received on the 30th November, yet it has been almost wholly unavoidable. In the uncertain state of the labour market, contractors will not be bound in penalties as to time. Even if they were bound, in the event of their failure to complete their contract within the specified time arising from strikes, no Government intending to appear again in the iron market would deem it politic to enforce payment of the penalties. There is seldom ready at any one time sufficient plant to load a ship for any one of the different ports at which the plant is to be distributed. To charter a vessel to two ports increases the freight very materially. Last month I chartered the " George A. Holt," to carry 1,550 tons of rails to Wellington and Port Lyttelton, and was obliged to pay at the rate of 425. Gd. a ton, instead of 255. a ton—the rate hitherto paid for rails sent out in emigrant vessels. In this case the freight was reduced to 355. 6d. a ton, by an allowance of 7s. Gd. a ton made by the contractors for putting the plant f.o.b. at Sunderlaud instead of at London. The insurance on railway plant shipped in vessels carrying only dead weight is also much higher. The rate hitherto paid on plant conveyed in emigrant ships has been 405., with conditional returns ; the rate demanded by all the insurance companies for the plant on board the " George A Holt " varied from £6 6s. to £8 Bs. per cent., and it was only in consideration of my having given it all the Government insurance business that the New Zealand Insurance Company ultimately agreed to take it at four guineas and a half per centum. The vessels taken up for carrying dead weight only are of an inferior class, and in the case of New Zealand would probably not make the voyage in less time than from four to six months. These are some of the difficulties which present themselves in the way of expediting the despatch of railway plant and rolling stock. At the same time, if the Government are prepared to pay a freight of from 425. to 70s. a ton for dead weight, the requisite tonnage can be procured ; but this, together with the increased rate of insurance above mentioned, will make a serious addition to the cost of the railways. The returns I have from time to time sent you of the quantity of railway plant despatched, will have satisfied you that I have been fully alive to the necessity of providing each line with a sufficient quantity of material; and having regard to the delay in arranging the Brogden contracts, I was in hopes that I should have succeeded in doing so. From the enclosed statement you will observe that, up to the 31st December last, there have been shipped 9,006 tons of rails (with the requisite fastenings), sufficient for 135J miles. I shall, of course, at once proceed to charter vessels for the conveyance of railway plant as fast as it is ready for shipment; but it will be extremely advisable that I should be kept fully advised from time to time as to the ports at which a supply is most urgently required. I. E. Eeatherston, The Hon. the Colonial Secretary, Wellington, Agent-General. , New Zealand. I—E. 4