D.—2b

2

In considering the reductions which it is possible to make without totally impairing the efficiency of the department I first estimated the practicability of dispensing with the services of the various officers to whom you specially refer, viz., Mr. Kennaway, the chief of the department under myself; Mr. Cashel Hoey, my private secretary ; Mr. McKellar, the accountant to the department; Mr. Smith, the despatching officer; and Mr. Ottywell, the secretary to the Scotch Department. Respecting Mr. Kennaway, I have to submit that it would be in tho highest degree undesirable to dispense with his services. He has a thorough knowledge of the business of tho department in all its branches, and his assiduity and devotion to work cannot be too highly extolled. In addition, his judgment is excellent. Tou will readily conceive that in carrying on the enormous operations of this agency with its many and varied responsibilities, delicate questions constantly arise which call for the exercise of much discretion and judgment. It has been my good fortune since I have held the office of Agent-General not to have incurred the disapproval of the Government of the colony in any one single particular that I can call to mind, whilst in dozens of cases in which I have exercised discretion I havereceived from the Government an indication of their approval. I do not mention this with any view to self-glorification, but to enable me to say that I have derived the greatest possible advantage in being constantly able to discuss with Mr. Kennaway all subjects relating to the department, and in obtaining from him his views of the same. I cannot reconcile it to my duty to the colony to dispense with Mr. Kennaway's services. Concerning Mr. Cashel Hoey I have to say that my predecessor, the lato Dr. Eeatherston, was allowed the services of a private secretary, and the Government that appointed me did not intimate their desire to withdraw from me a like advantage. Mr. Cashel Hoey had everything to recommend him for tho position, and I deemed myself fortunate in being able to secure a continuation of his services. It is idle to deny that he has been of great assistance to me, and that I shall greatly feel his loss. But since a question arises of dispensing with officers, it seems to me that my duty to the colony calls upon me to submit to a loss which will specially fall on myself rather than to one which would more directly fall on the colony. In other words, I must myself make up the loss of Mr. Hoey's services. Impelled by these considerations, I have, with great regret, given Mr. Hoey notice that his services will not be required after the end of November next. With regard to Mr. McKellar, I cannot see that it is feasible to dispense with his services. Mr. McKellar, besides being an excellent accountant, has a thorough knowledge of the special mode of dealing with New Zealand accounts necessitated by tho colonial laws which regulate them. He is' entirely trustworthy, and is constantly engaged in duties concerning which it is necessary to repose largo confidence in him. Tho amount of payments passing through this office is enormous, and accounts of a complicated nature have to be regularly rendered. Even if another accountant could be obtained for a little less salary, I am sure the economy would be a false one. Concerning Mr. Smith, I unreservedly express the opinion that it will bo a great misfortune to lose his services. There are thousands of emigrants now comfortably placed in New Zealand who owe to his intelligence, special knowledge, and determination much comfort and a considerable amount of safety on their voyage to their distant home. We depend on Mr. Smith for approval of the vessels and stores offered to us by the contractors; with him rests the suggestion of such alterations as maybe desirable to make tho ship safer or more comfortable ; he is responsible for the stowage arrangements; and on his tact and experience depend the smoothing over tho difficulties which constantly arise when emigrants are embarking. I should indeed be much concerned to lose Mr. Smith's services, but I have made him a proposal by which they would in part bo available to the department when required. The nature of this proposal is, that he attends to the shipping of plant and material, for which we now pay the shipping agents a considerable sum yearly, and that for his emigration services we pay a small salary. He has not yet told me whether he will entertain tho proposal, and meanwhile I have told him we will dispense with his services after the end of November. I should point out to you that the contract made with the New Zealand Shipping Company requires that we provide an officer to approve ships, stores, &C., in short to perform the duties which Mr. Smith so ably discharges. Mr. Ottywell is an excellent officer, able, intelligent, and hard working; but the Scotch Agency is by no means a pressing necessity. I arranged to remodel it because of its previous existence, and as remodelled it has worked well. But the applications considered at Edinburgh could as well be considered here, and I have given Mr. Ottywell and his clerks notice that we will not require their services after the end of November next. I have not yet decided whether to ask Mr. Andrew to continue to act as Commissioner. He would have, in such a position, no special function. Of course,, in doing away with the Scotch Agency we should have to depend on the Albion Shipping Company for seeing to the departure of emigrants and for providing fitting vessels and accommodation. I understand that your long experience of the Albion Company makes you willing to do this ; indeed, you incidentally suggest that they might select emigrants. It is just possible I may be able to make some provision of this nature. I have spoken to Mr. Galbraith, and if he can secure Mr. Ottywell'sservices, we paying some part of the latter's salary, I think he would be disposed to aid the selection. lam to speak with him further on the subject. The difficulty is the acceptance of the responsibility of making the selection, but some way to make this work smoothly may bo found. Mr. Ottywell has undoubtedly been of service in looking after the comfort of emigrants about to embark. I notice your suggestion in your letter No. 76, of 23rd April last, to dispense with the services of local agents. The proposal falls in with my own views. The agents occasion a great deal of expense and much extra work in the office. Unless you largely increase the number of emigrants you require yearly I think we may obtain those you want without the aid of more than a very few agents, esDecially if you will let me know by January what are your requirements for the coming season. Half the difficulty we have in making selections is that I am not informed of the intentions of the Government till very shortly before the emigrants are required to sail. The better the class of emigrants, as a rule, the more reluctant are they to hurriedly rush away ; and you will, I hope, excuse my strongly urging that in future I be advised of the Government requirements for the coming season not later than the beginning of January. With this proviso I think I can save the Government