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 both would gain an advantage, and a large saving would be made.

His proposal, he maintained, would also increase the market for New Zealand coals. The average yearly consumption of coal by the company was estimated at 150,000 tons. Half of that was obtained from Newcastle, in New South Wales. The Australian supply could be decreased by one-half, and there would be an increase of consumption of the New Zealand article by about 40,000 tons.

Besides that, the agricultural products of the colony would be carried at a much lower rate, and a market would be found for them and for the colony’s coals in the South Sea Islands. With State-owned steamers, he argued, New Zealand would not need to pay £20,000 a year to the Imperial Government for the presence of men-of-war in these seas, as the New Zealand Government would then have a fleet of its own available for use, and would be able to defend itself. All the men employed on the steamers would be under naval discipline. Wages would be paid at a fixed rate, and the danger of strikes would be gone. The company’s profit on its capital had been 8 per cent. for some years, and he estimated that if the State allowed 4 per cent. for sinking fund, insurance, and other charges, there would be 4 per cent. left to go towards extending trade operations, especially in regard to a direct service for mails, for which £20,000 a year was paid.

He went into the cost of the strike to the colony. There were 4,000 men out of work, and he set that loss down at £12,000 a week, while the increased cost of living to consumers was about £8,000, so that the strike caused a loss of £20,000 a week, besides paralysing trade and stopping industries.

In his scheme he saw a means of becoming independent of the other colonies and of breaking a monopoly which, apparently, could not be broken by any private enterprise. He suggested that the company should be asked to place a valuation on its property, and that the Government should say what it was prepared to give, the difference to be settled by arbitration.

Having been seized with the idea that it was the right time for the State to establish a steam service without delay, he