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this sum should be paid in February, 1873. I have applied for payment, and have been refused. The Province is told to have recourse to the Scandinavian immigrants themselves; and during my late visit to Palmerston I was informed (unofficially, but I believe correctly) that about one-third of the immigrants had disappeared, some of them having migrated to America.

You will naturally expect to be informed whether I have made any representations to Government respecting the works on the Hutt line of railway. Appended to my speech you will find correspondence on the subject which will explain my views. (Appendix L.) The work is close at hand, and can be viewed any day by yourselves. I cannot think that the inspection will prove satisfactory under any point of view; but when you consider that the tender for this work was accepted on the 6th July, 1872, i.e., ten months ago, and when you consider the character of the work, and when you recollect that this Province is to be charged with the cost of the same, the gravest considerations must present themselves to your minds as representatives.

I do not impute blame to persons, I blame the system. If it be really intended to charge the several Provinces as is provided by law, with the cost of the railways constructed within their respective boundaries, then I contend that the only course which ought to be adopted is that proposed by Mr. Curtis in the last session, viz:—“That it is expedient that the Colonial Government, without divesting itself of responsibility for the proper conduct of works authorised by the General Assembly, or of the sole control over all moneys voted by Parliament, shall avail itself of the services of the existing Provincial organisations, and that the duties of Resident Ministers and General Agents of the Colonial Government shall in their respective Provinces devolve upon the Superintendents and Executives as Agents of the Colonial Government, unless otherwise determined by the Colonial Government upon its responsibility;” I can only express my regret that Parliament thought fit to ignore it at that time; for reasons, the wisdom of which is best known to itself. Suffice it to state a fact, viz., that many leading men of both political parties declared themselves in favor of the principle laid down in that resolution.

With regard to the Foxton tramway I may state that it was let by tender on the 22nd February, 1872, i.e., fourteen months ago, and that it is now very far from completion, whilst owing to the plan of construction adopted the main line of road has been seriously interfered with. This is in some measure being remedied, but not to the extent requisite for the public convenience, and representations to that effect have been made to the General Government.

The Provincial authorities during the recess, in reply to a Circular from the Colonial Secretary, urged upon the Government the importance of increasing the number of immigrants to be sent to the Province during the year 1873, not only with a view to the supply of labor, but also for the purpose of settlement, and in connection therewith pressed on their consideration the importance of opening up the line of road from Masterton to the Manawatu Gorge, a distance of sixty miles, and placing three or four settlements of immigrants along the line, for which purpose the land in that district is very favorable, and asked for the superintendence of the work to be placed in their hands. The latter proposal was declined, but it is satisfactory to be able to state that their representation had the effect of inducing the Government to promise to expend £10,000 on the line. I am informed that these works are progressing favorably. What effect their representation on the subject of increasing the number of immigrants may have had, time will best show. (Appendix M.)

You will see that in the correspondence to which I have referred I renewed the proposal which I made first last year that the Province should take over the administration of certain confiscated lands. I received no response to this renewed application, and when I ascertained that the Whenuakura lands were to be sold by auction, I appealed to the General Government to erect bridges over the Waitotara and Whenuakura rivers, because an undertaking on the part of the Province to erect those bridges formed an essential part of the proposal to take the confiscated lands made by the Provincial Government. I am happy to be able to inform you that the General Government in reply informed me that those bridges would be erected. And considering the high prices realized by the sale of the Whenuakura lands, it is satisfactory to know that the old maxim, Qui sentit commodum, sentire et onus debet, has not been disregarded in this case.

With regard to special immigration, I regret to inform you that the provisional arrangements entered into with Mr M’Leod for the introduction of Canadians have fallen through. With reference to the arrangements made with Mr Engels for the introduction of a select body of immigrants from Holland, to be located in the township of Fitzherbert, I am unable to report any progress. I have received no communication from Mr Engels since he left for Europe, and I can only express a hope that this apparent neglect has arisen from circumstances over which Mr Engels had no control.

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