I may mention that, since the last session of the Council, an old tribal feud broke
out afresh at Horowhenua, which threatened at one time to terminate in bloodshed.
Being on an official visit to the West Coast at the time, I thought it my duty, after
telegraphing to the Honorable D. McLean, and placing myself in communication with
the officers whom he had specially directed to investigate the circumstances, to
personally interview the various chiefs. At Parawanui, I addressed a large meeting of
Natives, to whom I spoke in plain terms, which I am led to believe had their effect, of
the folly of taking the law into their own hands, and to the effect that submission to the
law constituted the great distinction between barbarous and civilized life. The majesty
of the law was ultimately vindicated, and an ugly dispute terminated. I take this
opportunity of bearing my testimony to the loyalty and good feeling of the general body
of Natives in that part of the Province.

The first section of the Hutt and Masterton railway has been lately opened for
traffic. If I were to say that the line has been constructed as well, as quickly, and as
cheaply as it might have been, I should be saying what I do not think. But the
completion of this section is an earnest of further extension; it is the first instalment
of a great undertaking, and as such not too severely to be criticised, and forms
undoubtedly a fit subject for sincere congratulation and recognition. I am told that the
traffic is already so considerable that the rolling stock is insufficient. If that be so, it
affords the best testimony in favor of the correctness of the views of those members for
Wellington, who all along advocated the construction of this line, and who for two
sessions struggled against much opposition to have its construction sanctioned, by being
placed in the construction schedule to "The Railways Act." It may be safely calculated
that when the terminus is extended to the centre of the town, the traffic return
will be greatly increased. In connection with this subject, I have to state that I have
had several interviews with the Hon. the Minister for Public Works, relative to the
condition of the Hutt line of road, as affected by the railway construction. A report on
the subject, by the Provincial Engineer, will be laid before you (Appendix G.), and I
hope it may not be necessary to burthen the Provincial revenue with the exceptional
charge which will become necessary in consequence of the adjacent railway
construction, if we intend to maintain the road in an efficient and safe state, for the benefit of those
who use it, and from whom we collect a special tax. In further connection with this
subject, I have to report to you that during the recess arrangements have been
concluded, in concert with the General Government, for the reclamation of fifty-one
acres from the harbor. The amount of the contract, including the cost for the Jarrah
timber, with which it is proposed to face the earthwork, will be about £67,000. Of this
sum, the General Government contributes about one-fifth, and it is to receive in
exchange about eleven and a-half acres for a railway terminus, and as a site for public
offices. I may state that the Colony has received from the Province, during the recess,
payment of the sum it had advanced on mortgage on the land so proposed to be reclaimed,
viz., twenty-five thousand pounds sterling (£25,000).

I may here mention that negotiations were nearly concluded with the General
Government for handing over the Foxton-Palmerston tramway, and the Wellington-
Hutt railway. The Provincial Government had agreed to the basis on which these
transfers should be made; but the General Government, on re-consideration (and I
acquiesced in the reasonableness of their views), decided not to hand them over at
present. I make this statement, because I am informed that an impression prevails
that the General Government offered to hand over these works, and that the Provincial
Government declined. The reverse is the case. I refer you to the correspondence
(Appendix H).

It is not only by aiding in Native matters, and by willingness to take over the
tramway and railway, to which I have referred, that the Provincial Government has
shewn, during the recess, a readiness to co-operate in administration with the Colonial
Government; but also in Immigration. Although the transfer, as proposed in the
circular of the Honorable the Minister for Immigration, of the local administration of
Immigration was not altogether acceptable, the Provincial Executive decided to
accept it, and are doing their best. And it is a satisfaction to add that I have
proposed arrangements, with the concurrence of the General Government, by which
the settlement of immigrants on land will be greatly promoted and facilitated.
I refer you to the correspondence on this subject (Appendix J). I regard this whole
subject of the settlement of newly arrived people on the soil, if conducted in an
intelligent and helpful spirit, as one of the most vital importance: it is the real work of
colonization. I had hoped to have been able to have presented to you a special report,
promised me by Mr. Halcombe, on the progress of the Feilding and Scandinavian
special settlements. By his energy in conducting the practical work of colonization,
Mr. Halcombe is rendering valuable service.