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insisted, in the terms of that letter, on first-class passengers being excluded from emigrant ships, we should have had to pay (see New Zealand Shipping Company's letter, Enclosure No. 1) over £1 per adult emigrant extra. I have thought that, without this payment, what you required would be to a large extent met by the conditions which we have had inserted in the charter-party. 7. Although, for convenience sake, I am writing this in my own name, I have to state that the Agent-General has shared with me the whole of the task of revising the charter-party and the negotiations for the new contract; and I feel myself much indebted to him for the cordial co-operation he has given in the matter. I have, &c., The Hon. the Minister for Immigration, New Zealand. Julius Vogel.

Enclosure 1 in No. 3. The Manages, New Zealand Shipping Company, to the Hon. S;r J. Vogel, and the Agent-Genebax. The New Zealand Shipping Company (Limited), Sib, — 84, Bishopgate Street "Within, London, E.C., 2nd June, 1875. In compliance with the wish expressed by you, at the interview between yourself and the Agent-General, on behalf of the New Zealand Government, and Mr. Hall and myself, on behalf of this Company, I am instructed to state that my Board of Advice has carefully considered the proposed alterations in the charter-party, and the terms upon which, under the new conditions, the Company can undertake the conveyance of emigrants to New Zealand, j, j The principal alterations in the agreement appear to be as follow: — 1. Space for emigrants increased to 18 feet, but including hospital, dispensary, &c. This, though a modification of the original proposition, will add to the room hitherto occupied by the emigrants ; but for this, under the circumstances, the Company would not make any additional charge. 2. The extra space of 5 feet required for luggage. 3. The increased dietary and scale of medical comforts for adults. 4. The improved dietary for infants. No charge being made for infants, the necessary cost of their maintenance must be distributed over the payment for adults. 5. Cost to the Company, arising from a moiety of the passage money being made payable in the colony. 6. The proposed prohibition of cabin passengers in emigrant vessels. This I purpose dealing with separately. The actual increased cost to the company involved in items 2, 3, 4, and sis £1 12s. lOd. This, added to the sum of £14 10s. now paid, and which, you are aware, is barely a paying rate, brings up the passage money for adults to £16 2s. lOd. The Company being anxious to meet .the Government as far as it possibly can, is prepared to reduce this amount to £16, upon the understanding that every effort will be made to embark not less than 300 adults in each vessel. Understanding that you wish to have a separate rate of payment for children, the Board has carefully considered this point. Owing to the important additions to the dietary for children, the extra cost entailed upon the Company by this and the other proposed alterations will be £1 15s. B£d. Upon the understanding previously referred to, the Company would be prepared to convey children at £9 each. With regard, however, to the charge for children, I am desired to make a suggestion by which it appears to the Company the cost of their conveyance might be materially reduced. Whilst a considerable addition has lately been made to the articles of food especially adapted for children, no corresponding diminution has been made in the quantity of other food stipulated for them in the ordinary New Zealand dietary scale, which is in itself considerably in excess of that of the Board of Trade. The practical result is the issuing of a far larger quantity of food than children can consume. In their case, the Company would suggest that the supplies required by the Board of Trade, in addition to the special supplies of children's food provided by the New Zealand Government, would be amply sufficient; and, if this were conceded, it would enable the Company to reduce the charge for children by no less a sum than 19s. per head. The proposed power for prohibiting the carrying of cabin passengers, and the placing the poop at the disposal of the Government, would prove to this Company so serious a disadvantage and loss, that I trust the Government will not be indisposed to reconsider this question. On a moderate estimate, the actual loss to the Company entailed by the sacrifice of this portion of their vessels cannot be stated at less than £30') to £400 ; and if this condition were insisted upon, the Company would feel bound to add £1 per head to the charge for immigrants ; and also, if the saloon were used for emigrant purposes, the cost of restoring the same to its original condition would have to be added to the cost of passage money. Whilst the Company does not offer any opinion as to the general results to the colony of such prohibition, they feel bound to point out that, so far as their experience will serve as a guide, no disadvantage whatever arises to the emigrants from the presence of families as cabin passengers; on the contrary, it is considered to have a beneficial effect upon the conduct of the officers, as well as the emigrants. Should the Government see fit to reconsider its decision in this matter, so far as regards families, yet reserving the power of excluding single men not accompanied by their families, the Company would —although this restriction would involve some loss —so far meet the Government as not to make any additional charge on this account. No reference has been made to other alterations contained in the new charter-party which are disadvantageous to the Company, in the hope that in practice their operation will be made as little onerous as possible, and on the understanding that the Company will continue to receive their fair share of any cargo which the Government may have to forward to the colony. I have, &c, Sir Julius Vogel, K.C.M.G., and O. B. Stbickxand, the Agent-General for New Zealand. Manager.