H.—lo.

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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