thumb|250px|right|New Zealand Company coat of arms
The New Zealand Company, chartered in the United Kingdom, was a company that existed in the first half of the 19th century on a business model that was focused on the systematic colonisation of New Zealand. The company was formed to carry out the principles devised by Edward Gibbon Wakefield, who envisaged the creation of a new-model English society in the Southern Hemisphere. Under Wakefield's model, the colony would attract capitalists, who would then have a ready supply of labour: migrant labourers who could not initially afford to be property owners but would have the expectation of one-day buying land with their savings.
The New Zealand Company established settlements at Wellington, Nelson, Wanganui and Dunedin and also became involved in the settling of New Plymouth and Christchurch. The original New Zealand Company started in 1825, with little success, then rose as a new company when it merged with Wakefield's New Zealand Association in 1837, received its royal charter in 1840, reached the peak of efficiency about 1841, encountered financial problems from 1843 from which it never recovered, returned its charter in 1850 and wound up all remaining business with a final report in 1858.
History
The company's board members included aristocrats, Members of Parliament and a prominent magazine publisher, who used their political connections to ceaselessly lobby the British government to achieve its aims. The company bought a lot of land from Māori using questionable contracts and in many cases resold that land, with its title in doubt. The company launched elaborate, grandiose and sometimes fraudulent advertising campaigns. It vigorously attacked those it perceived as its opponents—chiefly the British Colonial Office, successive governors of New Zealand, the Church Missionary Society and the prominent missionary Reverend Henry Williams, and it stridently opposed the Treaty of Waitangi, which was an obstacle to the company's obtaining the greatest possible amount of New Zealand land at the cheapest price. The company, in turn, was frequently criticised by the Colonial Office and New Zealand governors for its "trickery" and lies. Missionaries in New Zealand were also critical of the company for fear that its activities would lead to the "conquest and extermination" of Māori inhabitants.
The company viewed itself as a prospective quasi-government of New Zealand and in 1845 and 1846 proposed splitting the colony in two, along a line from Mokau in the west to Cape Kidnappers in the east, with the north reserved for Māori and missionaries and the south becoming a self-governing province, known as "New Victoria" and managed by the company for that purpose. The British Colonial Secretary rejected the proposal.
Only 15,500 settlers arrived in New Zealand as part of the company's colonisation schemes, but three of its settlements would, along with Auckland, become and remain the country's "main centres" and provide the foundation for the system of provincial government introduced in 1853.
1825 expedition
thumb|right|John George Lambton, the future Lord Durham
The earliest organised attempt to colonise New Zealand came in 1825, when the New Zealand Company was formed in London, headed by the wealthy John George Lambton, Whig MP (and later 1st Earl of Durham). Other directors of the company were:
- East India Company merchants George Lyall, George Palmer (snr), Stewart Marjoribanks and Russell Ellice;
- politician and merchant Edward Ellice (brother of Russell, and also brother-in-law of Lambton
The company unsuccessfully petitioned the British Government for a 31-year term of exclusive trade and for command of a military force. It anticipated that large profits could be made from New Zealand flax, kauri timber, whaling, and sealing.
Undeterred by the lack of government support for its plan to establish a settlement protected by a small military force, the company dispatched two ships to New Zealand the following year under the command of Captain James Herd, who was given the task of exploring trade prospects and potential settlement sites in New Zealand. On 5 March 1826 the ships, Lambton and Rosanna, reached Stewart Island, which Herd explored and then dismissed as a possible settlement, before sailing north to inspect land around Otago Harbour. Herd was unconvinced that area was the ideal location and sailed instead for Te Whanganui-a-Tara (present-day Wellington Harbour), which Herd named Lambton Harbour. Herd explored the area and identified land at the south-west of the harbour as the best place for a European settlement, ignoring the presence of a large pā that was home to members of Te Āti Awa tribe. The ships then sailed up the east coast to explore prospects for trade, stopping at the Coromandel Peninsula and the Bay of Islands. In January 1827 Herd surveyed parts of the harbour at Hokianga, where either he or the company's agent on board negotiated the "purchase" of tracts of land from Māori in Hokianga, Manukau and Paeroa. The price for the land was "five muskets, fifty three pounds powder, four pair blankets, three hundred flints and four musket cartridge boxes". After several weeks Herd and the New Zealand Company agent decided the cost of exporting goods was too high to be of economic value and they sailed to Sydney, where Herd paid off the crew and sold the stores and equipment, then returned to London. The venture had cost the New Zealand Company £20,000.
Wakefield's influence
The failure of Lambton's project came to the attention of 30-year-old aspiring politician Edward Gibbon Wakefield, who was serving three years in jail for abducting a 15-year-old heiress. Wakefield, who had grown up in a family with roots in philanthropy and social reform, also showed an interest in proposals by Robert Wilmot-Horton, Under-Secretary of State for War and the Colonies for state-assisted emigration programmes that would help British paupers escape poverty by moving to any of Britain's colonies. In 1829 Wakefield began publishing pamphlets and writing newspaper articles that were reprinted in a book, promoting the concept of systematic emigration to Australasia through a commercial profit-making enterprise.
thumb|right|Edward Gibbon WakefieldWakefield's plan entailed a company buying land from the indigenous residents of Australia or New Zealand very cheaply, then selling it to speculators and "gentleman settlers" for a much higher sum. The immigrants would provide the labour to break in the gentlemen's lands and cater to their employers' everyday needs. They would eventually be able to buy their own land, but high land prices and low rates of pay would ensure they first laboured for many years.
In May 1830 Wakefield was released from prison and joined the National Colonisation Society, whose committee included Wilmot-Horton, nine MPs and three clergymen. Wakefield's influence within the society quickly grew and by the end of the year his plans for colonisation of Australasia had become the central focus of the society's pamphlets and lectures.
Despite the £20,000 loss incurred in his earlier venture, Lambton (from the 1830s known as Lord Durham) continued to pursue ways to become involved in commercial emigration schemes and was joined in his endeavours by Radical MPs Charles Buller and Sir William Molesworth. In 1831 and again in 1833 Buller and Molesworth backed Wakefield as he took to the Colonial Office elaborate plans to recreate a perfect English society in a new colony in South Australia in which land would be sold at a price high enough to generate profit to fund emigration. The Whig government in 1834 passed an Act authorising the establishment of the British Province of South Australia, but the planning and initial sales of land proceeded without Wakefield's involvement because of the illness and death of his daughter. Land in the town of Adelaide was offered at £1 per acre on maps showing town and country sites—though the area was still little more than a sandhill—but sales were poor. In March 1836 a survey party sailed for South Australia and the first emigrants followed four months later. Wakefield claimed all credit for the establishment of the colony, but was disappointed with the outcome, claiming the land had been sold too cheaply.
Instead, in late 1836, he set his sights on New Zealand, where his theories of "systematic" colonisation could be put into full effect. He gave evidence to a House of Commons committee which itself comprised many Wakefield supporters, and when the committee handed down a report endorsing his ideas, he wrote to Lord Durham explaining that New Zealand was "the fittest country in the world for colonisation". Wakefield formed the New Zealand Association, and on 22 May 1837 chaired its first meeting, which was attended by ten others including MPs Molesworth and William Hutt, and R.S. Rintoul of The Spectator. After the association's third meeting, by which time London banker John Wright, Irish aristocrat Earl Mount Cashell and Whig MP William Wolryche-Whitmore were also on board and the group was attracting favourable newspaper attention, Wakefield drafted a Bill to bring the association's plans to fruition.
The draft attracted stiff opposition from Colonial Office officials and from the Church Missionary Society, who took issue both with the "unlimited power" the colony's founders would wield and what they regarded as the inevitable "conquest and extermination of the present inhabitants". Parliamentary Under-Secretary for the colonies Lord Howick and Permanent Under-Secretary James Stephen both were concerned about proposals for the settlements' founders to make laws for the colony, fearing it would create a dynasty beyond British government control, while Anglican and Wesleyan missionaries were alarmed by claims made in pamphlets written by Wakefield in which he declared that one of the aims of colonisation was to "civilise a barbarous people" who could "scarcely cultivate the earth". Māori, Wakefield wrote, "craved" colonisation and looked up to the Englishman "as being so eminently superior to himself, that the idea of asserting his own independence of equality never enters his mind". Wakefield suggested that once Māori chiefs had sold their land to settlers for a very small sum, they would be "adopted" by English families and be instructed and corrected. At a meeting on 6 June 1837 the Church Missionary Society passed four resolutions expressing its objection to the New Zealand Association plans, including the observation that previous experience had shown that European colonisation invariably inflicted grave injuries and injustices on the indigenous inhabitants. It also said the colonisation plans would interrupt or defeat missionary efforts for the religious improvement and civilisation of the Māori. The society resolved to use "all suitable means" to defeat the association and both the Church and Wesleyan missionary societies began to wage campaigns in opposition to the company's plans, through pamphlets and lobbying to government.
Charter
In September 1837, four months after the New Zealand Association's first meeting, discussions began with the 1825 New Zealand Company over a possible merger. The 1825 company claimed ownership of a million acres of New Zealand land acquired during its 1826 voyage, and Lord Durham, chairman of that company, was suggested as an ideal chairman of the new partnership. By the end of the year he had been elected to that role.
thumb|right|Colonial Secretary Lord GlenelgThrough late 1837 the New Zealand Association vigorously lobbied both the British government and Prime Minister Lord Melbourne, then returned with a revised Bill that addressed some of the government's concerns. On 20 December 1837 it was rewarded with the offer of a royal charter similar to those under which British colonies had been earlier established in North America. The chartered body was to take responsibility for the administration, and the legislative, judicial, military and financial affairs of the colony of New Zealand, subject to safeguards of control by the British Government. To receive the charter, however, the association was told by Colonial Secretary Lord Glenelg it would have to become a joint stock company, and therefore have "a certain subscribed capital". In a letter to Lord Durham, Lord Glenelg explained that the government was aware of the risks of the proposed New Zealand venture and knew that the South Australian colony established under the Wakefield system was already heavily in debt. It therefore considered it reasonable that the interests of shareholders should coincide with those of emigrants in the pursuit of the colony's prosperity. But members of the association decided the requirement was unacceptable. Reluctant to invest their own money in the venture, and wary of the risks of the shares being subject to fluctuations in the stock market, they rejected the offer. On 5 February 1838 the Colonial Secretary in turn advised Lord Durham that the charter had therefore been withdrawn. The New Zealand Association's plans would again hinge on a Bill being introduced to, and passed by, Parliament.
Public and political opinion continued to run against the association's proposals. In February 1838 The Times wrote disparagingly of the "moral and political paradise", the "radical Utopia in the Great Pacific" conceived in "the gorgeous fancy of Mr Edward Gibbon Wakefield", in March Parliament debated—then defeated—Molesworth's motion of no confidence in the Colonial Secretary over his rejection of the association's plans, and later that month the association's second Bill, introduced by Whig MP Francis Baring on 1 June, was defeated 92 votes to 32 at its second reading. Lord Howick described the failed Bill as "the most monstrous proposal I ever knew made to the House".
Three weeks after the Bill's defeat, the New Zealand Association held its final meeting and passed a resolution to the effect that "notwithstanding this temporary failure", members would persevere with their efforts to establish "a well-regulated system of colonization". Two months later, on 29 August 1838, 14 supporters of the association and the 1825 New Zealand Company convened to form a joint-stock company, the New Zealand Colonisation Association. Chaired by Lord Petre, the company was to have paid-up capital of £25,000 in 50 shares of £50, and declared its purpose was "the purchase and sale of lands, the promotion of emigration, and the establishment of public works". A reserved share of £500 was offered to Wakefield, who by then was in Canada, working on the staff of that colony's new governor general, Lord Durham. By December, although it was still yet to attract 20 paid-up shareholders, the company decided to buy the barque Tory for £5250 from Joseph Somes, a wealthy shipowner and member of the committee.
Within the British Government, meanwhile, concern had grown about the welfare of Māori and increasing lawlessness among the 2,000 British subjects in New Zealand, who were concentrated in the Bay of Islands. Because of the population of British subjects there, officials believed colonisation was now inevitable and at the end of 1838 the decision was made to appoint a Consul as a prelude to the declaration of British sovereignty over New Zealand. And when Lord Glenelg was replaced as Colonial Secretary in late February, his successor, Lord Normanby, immediately brushed off demands from the New Zealand Colonisation Association for the royal charter that had been previously offered to the New Zealand Association.
On 20 March 1839 an informal meeting of members of the Colonisation Association and the 1825 New Zealand Company learned from Hutt the disturbing news that the Government's Bill for the colonisation of New Zealand would contain a clause that land from then on would be able to be bought only from the Government. Such a move would be a catastrophic blow for the Colonisation Association, for whom success depended on being able to acquire land at a cheap price, directly from Māori, and then sell it at a high price to make a profit for shareholders and fund colonisation. The news created the need for swift action if private enterprise was to beat the Government to New Zealand. In a stirring speech, Wakefield told those present: "Possess yourselves of the soil and you are secure—but if from delay you allow others to do it before you, they will succeed and you will fail."
Members of the two colonisation groups subsequently formed a new organisation, the New Zealand Land Company, with Lord Durham as its governor and five MPs among its 17 directors (in 1840 the directors were Joseph Somes, Viscount Ingestre, M.P., Lord Petre, Henry A. Aglionby, M.P., Francis Baring, M.P., John Ellorker Boulcott, John William Buckle, Russell Ellice, James Robert Gowen, John Hine, William Hutt, M.P., Stewart Marjoribanks, Sir William Molesworth, M.P., Alexander Nairn, Alderman John Pirie, Sir George Sinclair, M.P., John Abel Smith, M.P., Alderman William Thompson, M.P., Frederick James Tollemache, M.P., Edward G. Wakefield, Sir Henry Webb, Arthur Willis, George Frederick Young). The company acted urgently to fit out the Tory, advertise for a captain and surveyor and select Colonel William Wakefield as the expedition's commander. William Wakefield was authorised to spend £3000 on goods that could be used to barter for land. By 12 May 1839, when the Tory left England under the command of Captain Edward Chaffers, the company had already begun advertising and selling land in New Zealand, and by the end of July—months before the company had even learned the Tory had arrived in New Zealand—all available sections for its first settlement had been sold. The company had already been warned in a letter from the Parliamentary Under-Secretary that the government could give no guarantee of title to land bought from Māori, which would "probably" be liable to repurchase by the Crown. The company had also been told that the Government could neither encourage nor recognise its proceedings.
The company's prospectus, issued on 2 May, detailed the Wakefield system of colonisation the company would carry out: 1100 sections, each comprising one "town acre" and 100 "country acres", would be sold in London, sight unseen, at £1 per acre, with the funds raised used to transport the emigrants to New Zealand. Emigrants would be selected either as capitalists or labourers, with labourers being required to work for the capitalists for several years before obtaining land of their own. One in 10 surveyed sections—scattered throughout the settlement—would be reserved for Māori who had been displaced, and the rest would be sold to raise £99,999, of which the company would retain 25 per cent to cover its expenses. Labourers would travel to New Zealand for free, while those who bought land and migrated could claim a 75 percent rebate on their fare.
1839 expedition and land purchases
thumbnail|300px|Plaque in Adam Street, London commemorating the New Zealand Company officesThe Tory was the first of three New Zealand Company surveyor ships sent off in haste to prepare for settlers in New Zealand. In August the Cuba, with a surveyors' team headed by Captain William Mein Smith, R.A., set sail, and a month later—still with no word on the success of the Tory and Cuba—on 15 September 1839 it was followed from Gravesend, London, by the Oriental, the first of five 500-ton immigrant ships hired by the company. Following the Oriental were the Aurora, Adelaide, Duke of Roxburgh and Bengal Merchant, plus a freight vessel, the Glenbervie, which all sailed with instructions to rendezvous on 10 January 1840 at Port Hardy on d'Urville Island where they would be told of their final destination. It was expected that by that time William Wakefield would have bought land for the first settlement and had it surveyed, and also inspected the company's land claims at Kaipara and Hokianga.
The company provided Wakefield with a lengthy list of instructions to be carried out on his arrival. He was told to seek land for settlements where there were safe harbours that would foster export trade, rivers allowing passage to fertile inland property, and waterfalls that could power industry. He was told the company was eager to acquire land around harbours on both sides of Cook Strait and that while Port Nicholson appeared the best site he should also closely examine Queen Charlotte Sound and Cloudy Bay at the north of the South Island. He was told to explain to Māori that the company wanted to buy land for resale to allow large-scale European settlement and that he should emphasise to tribes that in every land sale, one-tenth would be reserved for Māori, who would then live where they were assigned by a lottery draw in London. Wakefield was told: