JUNE 28.] THE NEW ZEALAND GAZETTE. 1615

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL,—

It is with profound regret I learn that since last session your number has been reduced by the death of the Honourable William Campbell Walker, C.M.G., who for many years was a Minister of the Crown, and who at the time of his death was your esteemed Speaker. I deeply regret also the death of the Honourable Henare Tomoana. The noble part he took in the troublesome days of the past, and his services otherwise to the colony, especially to the Maori race whom he so worthily represented, will ever entitle him to be held in respectful memory.

I have appointed the Honourable Sir George Maurice O’Rorke, Knight, to be a member of your honourable Council.

MR. SPEAKER AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

I am able to congratulate you on the stability and the sustained improvement in the public finances of the colony, which are now, my Advisers inform me, in as strong and healthy a condition as they have been at any time during the last twenty-five years.

Notwithstanding the unprecedented surplus of last year, the Estimates have been framed with strict regard to economy, it being always prudent, even in the midst of prosperity, not to forget that this prosperity may not last for ever.

Comparative statements will be submitted to you showing that the increase in expenditure has resulted largely from the inauguration of new departments. Many of these are self-supporting, and any increased cost is counterbalanced by the increased and expanding revenue.

Our financial obligations, notwithstanding the tightness of the London money market, have been met on terms satisfactory alike to the colony and to the public creditor, and I am happy to state that there is no necessity for increasing the burdens of the people.

My Advisers consider that the time has arrived when the question of increasing the salaries of the Judges of the Supreme Court should be taken into consideration.

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL, AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

An agreement between the Commonwealth of Australia and the Eastern Extension Telegraph Company has been entered into tentatively, which my Advisers deemed necessary to protest against, as being detrimental to the interests of the Pacific Cable. Under the circumstances, it has been decided to hold a Conference of those interested, with a view to arriving at a satisfactory settlement of the difficulty, and so conserve the rights of the “all-red” cable. The Conference is about to sit in London, and Sir Sandford Fleming has been appointed to represent the colony thereat. The decisions arrived at by the Conference will be duly placed before you.

I am happy to say that a contract has been entered into with the Federal Steamship Company for a West of England service with New Zealand, the details and conditions of which will be laid before you in due course. This service provides for a long-felt want, affording greater facility for the transit of our principal products to Liverpool, Cardiff, and Glasgow, and, while the rates for carriage are materially reduced, no monetary payment is required from the colony. Already the freights offering far exceed anticipations. There is a probability of the service extending to Manchester, thus enabling our producers to have direct trade connection with the millions of the industrial classes in the Mother-country.

As you are no doubt aware, a General Manager has been appointed for the State Fire Insurance Department, and every effort is being made to commence business on safe and practical lines. There have been many difficulties to surmount; but there is every prospect of this Department realising the expectations prevailing at the time the Act was passed last year. Some little time ago