—No. 11.—

Otago.

Arrangements for the Establishment of a Settlement and for the Disposal of the Lands of the New Zealand Company, at Otago.

1. All arrangements with regard to the Settlement, formerly intended, of New Edinburgh, to be considered as at an end.

2. The Association of Lay Members of the Free Church of Scotland, as reported by the General Assembly of May, page 36 1845, to be recognised as the party to promote the Settlement now contemplated.

3. The Lands to be sold under the following arrangements to persons brought forward or approved by the Association; and the Association (including those parties) to carry out the enterprise on their own principles, and, so far as possible, in their own name, looking only to the Company for such assistance and acts of trusteeship in the matter of Surveys, Emigration, and general process of founding the Settlement, as may be requisite.

Amendments which experience may from time to time show to be desirable, to be made by the Company and the Association, concurrently, in those parts of the following arrangements in which they are not already provided for.

4. The Site of the Settlement to be at Otago, in the Middle Island of New Zealand, on the land granted to the Company by a Deed under the seal of the Territory, bearing date the 13th day of April, 1846.

5. The Settlement to comprise one hundred and forty-four thousand six hundred acres of land, divided into two thousand four hundred Properties; and each Property to consist of sixty acres and a quarter, divided into three Allotments; namely, a Town Allotment of a quarter of an acre, a Suburban Allotment of ten acres, and a Rural Allotment of fifty acres, be the measurements more or less.

It is to be observed that from the sum of 36,150l. to be assigned to the Trustees of Religious and Educational Uses, will be defrayed 12,050l., the price of the 6,025 acres to be purchased as the Estate of that Trust.

In like manner, out of the sum of 72,300l. to be assigned to the New Zealand Company, will be defrayed 24,100l., the price of the 12,050 acres to be purchased by the Company as its Estate.

But the 6,025 acres, constituting the Estate to be purchased page 38 by the Local Municipal Government, must be separately paid for by that Government; and until payment therefore of the price, 12,050l., together with Colonial interest thereon, the land will be held by the Administrators of the Fund for Civil Uses, with power to dispose of the same, if such payment be not made within one year after the completion of the sales of the remainder of the two thousand four hundred Properties.

8. The Company to reserve to itself the power of increasing the price above mentioned after the first Ballot, and from time to time, as may be arranged after consultation with the Association.

9. In consideration of the consent given by the Directors to contribute to the Emigration and other Special Funds, in the same proportions as private purchasers, on account of the two hundred Properties to be reserved as the Company's Estate, in lieu of those Properties being free of charge or deduction, as was originally intended; and in consideration of the expenses to which the Company is subjected in its general superintendence of the interests of the several Settlements, and which ought to be borne in due proportions by the several Settlements, respectively; the Company to be entitled to charge Commission, at the rate of five per cent, on the gross amount of the Funds appropriated to Emigration and to Civil Uses; and such charge to be debited to those Funds, respectively.

10. The purchase of the surface, under the present arrangements, to include in every case Coal and all other Minerals whatever, granted to the Company by the Crown and lying underneath the Allotment purchased; but the Company to have power to exclude lands containing, in considerable quantities, Coal or other Minerals, from the Allot- page 39 ments intended for sale or appropriation, and to reserve them for the purpose of being disposed of in the manner undermentioned.

Lands so reserved and containing Coal to be disposed of, by Lease or otherwise, in such way as may from time to time be agreed on between the Company and the Association, with a view both to prevent the Coal-field from falling into the hands of private individuals, so as to form a monopoly injurious to the public interests, and to ensure to the Community a due supply of Fuel at the cheapest possible rate.

Lands reserved as above and containing other Minerals to be disposed of in such way as the Company, after consultation with the Association, may from time to time consider most expedient.

11. Reservations to be made, so far as may be practicable, of the Sites of Villages and Towns, with Suburban Allotments adjacent, in the several Parishes and Hundreds, to be laid out in accordance with the Government Regulations on this head.

12. In laying out the Chief Town of the Settlement,—to be named "Dunedin,"—due provision to be made for public Purposes, as Fortifications, Public Buildings, Sites for Places of Public Worship and Instruction, Baths, Wharfs, Quays, Cemeteries, Squares, a Park, and other places for health and recreation; for all which, instructions have already been given to the Company's Principal Agent.

13. The first party of Colonists, including free passengers, to be of sufficient numbers to entitle them to an Act of Municipality; but to be despatched by one or more embarkations, and to be based upon the sale to private individuals, of not fewer than four hundred Properties.

14. Two years from the date of the first embarkation to be page 40 allowed for the despatch of the second Party, and one year for the despatch of each successive Party afterwards; each Party being based, like the first, upon the sale to private individuals of not fewer than four hundred Properties. The term of five years, therefore, to be thus allowed to the Association for completing the sales in the proportions above mentioned; but on their failing in any of these proportions, the Company to have the option of disposing of the whole of the remaining lands to other parties.

In the event, however, of the whole 2,000 Properties being sold to private individuals within the said period, the Association to have further the refusal, on such terms as shall then be agreed upon, of the entire remainder of the Block of 400,000 acres, or such portion of the same as the Company shall not have returned to the Crown under the terms of Mr. Hope's letter of 7th August, 1845.

15. A deposit of 12l. 10s. on each Property to be paid to the Commercial Bank of Scotland, in Scotland, or to Messrs. Smith, Payne, and Smiths, Bankers, in London, on the New Zealand Company's Account; and the Bankers' Receipt to be produced and filed, previous to any application being registered at the Company's House. Public notice to be given of the day on which the residue of the purchase-money will be required. In case of default in payment of such residue by the day appointed, the deposit to become thereupon forfeited to the Company, together with all claim of the applicant to the land applied for.

16. On payment of his purchase-money, each purchaser to receive, for each sum of 120l. 10s. so paid, three separate Land-Orders, namely, for the Town quarter-acre, the ten acres of Suburban Land, and the fifty acres of Rural Land, respectively. These lands to be severally selected, according to priority of choice, to be determined by Ballot, as hereinafter mentioned.

17. Three several Ballots for priority of choice of the Town Allotments, the Suburban Allotments, and the Rural Allotments, in manner to be arranged by the Court of Directors, to take place at the Company's House in London, in the presence of the Directors, and of such purchasers or their agents as may attend after public notice given.

The priority of choice, with regard to the Estates of the Local Municipal Government, the Trustees for Religious and Educational Uses, and the New Zealand Company, to be determined by Ballot in the same manner, and at the same time, as for the Properties sold to private individuals.

18. An arrangement to be made in the first Ballot, so that any party purchasing two or more properties may, with respect to Rural Allotments only, take them in contiguity; provided that notice in writing of his wish to that effect be given to the Company three clear days previous to the drawing; and provided that such right of choice shall not extend to land on both sides of any river or main road.

Every practicable facility to be given for the like purpose in succeeding Ballots.

19. The choice of Allotments, according to the right of priority determined as above mentioned, to take place in the Settlement as soon after the arrival of the first body of Colonists as shall be appointed, and under such regulations as shall be prescribed by the Company's Agent, or other Officer duly authorised in that behalf. Neglect or refusal to comply with such regulations in regard to any Allotment, to occasion a forfeiture of the purchaser's right of choice, and to vest it in the Company's Officer on behalf of such purchaser.

20. The first Ballot not to be held until at least four hundred Properties have been sold to private individuals, as before mentioned.

The parties to that Ballot to be allowed to select out of the whole of the Town and Suburban Allotments, but (if their number do not much exceed four hundred) out of only half the intended number of Rural Allotments.

Upon four hundred Properties being sold as above mentioned, the Municipality, the Trustees for Religious and Educational Uses, and the New Zealand Company, to be respectively entitled to select one-half of their whole Estates, and to be included accordingly in the Ballot; but to be required to pay for those Estates, rateably only according to the number of Properties actually sold to private individuals.

21. After the first Ballot, fifty Properties to be placed at the disposal of the Company's Agent, for sale in the Colony, at the following increased prices, each kind of Allotment being sold separately if so desired by the purchaser; namely,

• Town Land 40l. per Allotment;
• Suburban Land 40l, per Allotment; and,
• Rural Land 100l. per Allotment.

22. Individuals desirous of proceeding to the Colony, in the intervals between the first and second Ballots, and approved by the Association, to be allowed to become purchasers at such increased prices as may be decided on after consultation with the Association, as provided for in Paragraph 8, above.

23. The whole Proceeds of such increased prices, and also of Coals and other Minerals disposed of specially, under the provisions of Paragraph 10, and of the Sites of Villages and Towns with Suburban Allotments adjacent, as provided for in Paragraph 11, to be in all cases appropriated (by eighths) in the same proportions and manner as the Proceeds of the first Ballot.

24. The Association (including the purchasers and Co- page 43 lonists whom they may bring forward) to prepare a Deed of Constitution for Church and Schools; to the Trustees appointed by this Deed, the Funds for Religious and Educational Uses to be handed over, as collected, on the completion of each party; all Officers connected with these Uses to be appointed by the said Trustees or Association; and in this and in all other matters, the Association to have respect to the full exoneration of the Company from responsibility, at the earliest possible period.

25. The Emigration Fund to be applied as maybe decided on from time to time, after consultation with the Association, and the selection of free passengers to be entirely confided to them.

Two-thirds of the amount to be applied in accordance with the Government Regulations; and the remainder, subject to the concurrence of the Company, to the passages of persons who, under those Regulations, are not strictly eligible; such as—the Parents of grown-up Children;—Children under seven years of age, in excess of the authorised number;—and, to a limited extent, such Cabin Passengers, and others, as may be found expedient.

26. The expenses of the Association to be met in the first instance by the Company, to the extent of five hundred pounds; it being understood that, with the exception of a paid Secretary at the rate of one hundred and fifty pounds a year, the Members of the Association are to act gratuitously. Travelling and other necessary expenses to be covered by the sum stated, which, in the event of success, will be charged, together with the expenses already incurred under the former arrangements, to the Fund for founding the Settlement.

27. Subject to the modifications mentioned in the foregoing Paragraphs, and to the exception of Officers and Funds relating to Religious and Educational Uses, the appointment of page 44 Officers, and the management and expenditure of the several Funds, to be vested altogether in the Company; but all reasonable attention to be paid by the Court of Directors to the recommendations of the Association.

28. In case of any difference arising between the Company and any purchaser, with respect to the construction of these presents, or the execution of any contract founded thereon, such difference to be decided by two Arbitrators, one to be named by each party, or by an Umpire to be named by the Arbitrators.

In the event, also, of any difference or question arising, either between private parties, or between such parties and the Company or other Public Body, or between such Public Bodies only, and relating to Water connected with any Land referred to in these presents, or to the possession or use of such Water, or to the Erection of Mills or Machinery to be moved thereby, or to any other right or privilege connected therewith, such difference or question to be decided in like manner, either by Arbitrators, or by an Umpire, the whole to be named respectively as above mentioned.

29. The Register of Applications to be opened on such day as may hereafter be decided on.

30. William Cargill, Esq., to be recognised as the Company's Agent for the Settlement of Otago; the sentiments of the Directors of the Company, with regard to that Gentleman, being in entire unison with those expressed by the Association in its Seventh Resolution of the 16th of May, 1845.

Their high opinion of Mr. Cargill has been formed upon a personal observation, for a course of years, of his integrity, energy, efficiency, and perseverance; and their confidence in his fitness for organising the first Party of Colonists, upon the constitution of which must depend so materially the page 45 future character of the Settlement, is confirmed by the able and judicious manner in which, during that period and in the recent negotiations with Her Majesty's Government, he has represented in London the views and wishes of the Association and other parties in Scotland.