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New Zealand Company



 
 
The New Zealand Company originated in 1839 in London with the aim of promoting the "systematic" colonisation of New Zealand
New Zealand

New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses , and numerous Islands of New Zealand, most notably Stewart Island/Rakiura and the Chatham Islands....
. The Company intended to follow the colonising principles of Edward Gibbon Wakefield
Edward Gibbon Wakefield

Edward Gibbon Wakefield was a British politician, the driving force behind much of the early colonization of South Australia, and later New Zealand....
, who envisaged the creation of a new-model English society in the southern hemisphere. Wakefield's emigration system professed higher, more noble aims than mere financial profit.

The company established settlements at Wellington
Wellington

Wellington is the Capital of New Zealand, situated at the southwestern tip of the North Island between Cook Strait and the Rimutaka Range. The Wellington Urban Area is the major population centre of the southern North Island and ranks as New Zealand's third most populous Urban areas of New Zealand with residents....
, Nelson
Nelson, New Zealand

The city of Nelson is close to the centre of New Zealand. It lies at the shore of Tasman Bay, at the northern end of the South Island, and is the administrative centre of the Nelson region....
, Wanganui
Wanganui

Wanganui is an urban area and district on the west coast of the North Island of New Zealand. It is part of the Manawatu-Wanganui region.Like several New Zealand centres, it was officially designated a List of cities in New Zealand until administrative reorganisation in 1989, and is now run by a District Council....
 and Dunedin
Dunedin

Dunedin , Otepoti in Maori, is the second-largest city in the South Island of New Zealand, and the principal city of the region of Otago. It is New Zealand's fifth largest city in population, the largest in size of council boundary area, and the hub of the sixth-largest urban area....
 and also became involved in the settling of New Plymouth
New Plymouth

New Plymouth is the major city of the Taranaki region on the west coast of the North Island of New Zealand. It is named after Plymouth, Devon, England, from where the first English settlers came....
 and Christchurch
Christchurch

Christchurch is the largest city in the South Island of New Zealand, and the country's second-largest Urban areas of New Zealand. It is midway down the South Island's east coast, just north of Banks Peninsula which itself, since 2006, lies within the formal limits of Christchurch....
.






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The New Zealand Company originated in 1839 in London with the aim of promoting the "systematic" colonisation of New Zealand
New Zealand

New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses , and numerous Islands of New Zealand, most notably Stewart Island/Rakiura and the Chatham Islands....
. The Company intended to follow the colonising principles of Edward Gibbon Wakefield
Edward Gibbon Wakefield

Edward Gibbon Wakefield was a British politician, the driving force behind much of the early colonization of South Australia, and later New Zealand....
, who envisaged the creation of a new-model English society in the southern hemisphere. Wakefield's emigration system professed higher, more noble aims than mere financial profit.

The company established settlements at Wellington
Wellington

Wellington is the Capital of New Zealand, situated at the southwestern tip of the North Island between Cook Strait and the Rimutaka Range. The Wellington Urban Area is the major population centre of the southern North Island and ranks as New Zealand's third most populous Urban areas of New Zealand with residents....
, Nelson
Nelson, New Zealand

The city of Nelson is close to the centre of New Zealand. It lies at the shore of Tasman Bay, at the northern end of the South Island, and is the administrative centre of the Nelson region....
, Wanganui
Wanganui

Wanganui is an urban area and district on the west coast of the North Island of New Zealand. It is part of the Manawatu-Wanganui region.Like several New Zealand centres, it was officially designated a List of cities in New Zealand until administrative reorganisation in 1989, and is now run by a District Council....
 and Dunedin
Dunedin

Dunedin , Otepoti in Maori, is the second-largest city in the South Island of New Zealand, and the principal city of the region of Otago. It is New Zealand's fifth largest city in population, the largest in size of council boundary area, and the hub of the sixth-largest urban area....
 and also became involved in the settling of New Plymouth
New Plymouth

New Plymouth is the major city of the Taranaki region on the west coast of the North Island of New Zealand. It is named after Plymouth, Devon, England, from where the first English settlers came....
 and Christchurch
Christchurch

Christchurch is the largest city in the South Island of New Zealand, and the country's second-largest Urban areas of New Zealand. It is midway down the South Island's east coast, just north of Banks Peninsula which itself, since 2006, lies within the formal limits of Christchurch....
. It reached the peak of efficiency about 1841, encountered financial problems from 1843 from which it never recovered, and wound up in 1858.

The company became notable for elaborate and grandiose advertising and for its vigorous attacks on those it perceived as its opponents – the British Colonial Office
Colonial Office

Colonial Office is the government agency which serves to oversee and supervise their colony* Colonial Office - The British Government department...
 and successive governors of New Zealand. It stridently opposed the Treaty of Waitangi
Treaty of Waitangi

The Treaty of Waitangi is a treaty first signed on February 6, 1840, by representatives of the United Kingdom The Crown, and various Maori chiefs from the northern North Island of New Zealand....
 and was in turn frequently criticised by the Colonial Office and New Zealand Governors for its "trickery" and lies.

The company also saw 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
Mokau

Mokau is a small town in northern Taranaki on New Zealand's North Island, located at the mouth of the Mokau River on the North Taranaki Bight. New Zealand State Highway network passes through the town on its route from Te Kuiti to Waitara, New Zealand and, eventually, New Plymouth....
 in the west to Cape Kidnappers
Cape Kidnappers

File:File CapeKidnappersView.jpgFile:Cape Kidnappers Gannet Colony.jpgCape Kidnappers is a headland at the southeastern extremity of Hawke Bay on the east coast of New Zealand's North Island....
 in the east – with the north reserved for Maori and missionaries, while the south would become a self-governing province, known as "New Victoria" and managed by the company for that purpose. Britain's Colonial Secretary rejected the proposal.

Early attempts at colonisation


The earliest organised attempt to colonise New Zealand came in 1825, when a company that also bore the name of "The New Zealand Company" formed in London
London

London is the capital of both England and the United Kingdom, and the most populous municipality in the European Union. An important settlement for two millennia, History of London goes back to its founding by the Roman Empire....
, headed by John George Lambton
John Lambton, 1st Earl of Durham

John George Lambton, 1st Earl of Durham Order of the Bath Privy Council of the United Kingdom , was a British British Whig Party statesman, colonial administrator, Governor General and high commissioner of British North America....
, MP
Member of Parliament

A Member of Parliament, or MP, is a representative of the voters to a parliament. In many countries the term applies specifically to members of the lower house, as upper houses often have a unique title, such as senate, and thus also have unique titles for its members, such as senators....
. The company unsuccessfully petitioned the British Government for a 31-year term of exclusive trade as well as command over a military force, anticipating that large profits could be made from New Zealand flax
New Zealand flax

New Zealand flax describes common New Zealand perennial plants Phormium tenax and Phormium cookianum, known by the Maori language names harakeke and wharariki respectively....
, kauri timber, whaling and sealing. The following year it dispatched two ships under the command of Captain James Herd to explore trade prospects and potential settlement sites in New Zealand.

In September or October 1826 the ships, the Lambton and the Isabella (or Rosanna), sailed into Te Whanganui-a-Tara
Te Whanganui-a-Tara

Te Whanganui a Tara is a Maori name for Wellington, the capital city of New Zealand. Originally it described the actual harbour , but the term has come to be accepted as the name of the city as well....
, (present-day Wellington Harbour
Wellington Harbour

Wellington Harbour is the large natural harbour on the southern tip of New Zealand's North Island. New Zealand's capital, Wellington, is located on the western side of 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. The ships then sailed north to explore prospects for trade, purchasing tracts of land — later claims put them at one million acres (4000 km²) — from local Maori
Maori

The Maori are the indigenous people Polynesian people of Aotearoa . The group probably arrived in south-western Polynesia in several waves at some time before 1300....
 in Hokianga
Hokianga

The Hokianga Harbour, also known as The Hokianga River or more frequently simply as The Hokianga is a long estuarine drowned valley and its surrounding area on the west coast in the north of the North Island of New Zealand....
, Manukau
Manukau

Manukau City is a large city in the Auckland Region / Auckland area of New Zealand. The city is sometimes referred to as South Auckland, but this term does not possess official recognition and does not encompass areas like East Auckland, which is within the official boundaries of Manukau City....
 and Paeroa
Paeroa

Paeroa is a small town in New Zealand. It is located in the northern Waikato region, known locally as the Thames Valley, New Zealand, at the foot of the Coromandel Peninsula....
 on the way. The company opted against pursuing any trade or settlement ventures and ceased activity, having spent £20,000 on the venture.

Edward Gibbon Wakefield

Edward Gibbon Wakefield


Edward Gibbon Wakefield
Edward Gibbon Wakefield

Edward Gibbon Wakefield was a British politician, the driving force behind much of the early colonization of South Australia, and later New Zealand....
 revived plans for the settlement of New Zealand during the 1830s. Wakefield, who had grown up in a family with roots in philanthropy and social reform. In 1829, while in prison for abducting a 15-year-old heiress, he had published a pamphlet and a series of newspaper articles – the latter eventually republished as a book – promoting the colonising of Australasia
Australasia

Australasia is a region of Oceania: New Zealand, Australia, Papua New Guinea, and neighbouring islands in the Pacific Ocean. The term was coined by Charles de Brosses in Histoire des navigations aux terres australes ....
. Wakefield's plan entailed the company buying land from the indigenous residents very cheaply, then selling it to speculators and "gentleman settlers" for a much higher sum. The emigrants 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.

Many of those who had had involvement in the New Zealand Company of 1825 embraced Wakefield's ideas and used them in 1834 as a basis for the colonisation of South Australia
South Australia

South Australia is a States and territories of Australia of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories....
, where his supporters proposed recreating "a perfect English society". Wakefield regarded the South Australian experience as a failure, however, and in 1836 set his sights on New Zealand, where his theories of "systematic" colonisation could be put into effect. A year later he chaired the first meeting of the New Zealand Association. Its members soon included MPs William Hutt
William Hutt (British MP)

Sir William Hutt, Order of the Bath, Master of Arts was a United Kingdom MP who was heavily involved in the colonization of New Zealand and South Australia....
 and Sir William Molesworth, R.S. Rintoul
Robert Stephen Rintoul

Robert Stephen Rintoul , Kingdom of Great Britain journalist, was born at Tibbermore, Perthshire, in 1787, and educated at the Aberdalgie parish school....
 of The Spectator
The Spectator

The Spectator is a weekly United Kingdommagazine first published on 6 July 1828. It is currently owned by the Barclay brothers, who also own The Daily Telegraph....
 and London banker John Wright. Wakefield drafted a Bill
Bill (proposed law)

A bill is a proposed new law introduced within a legislature that has not been ratification, adopted, or received royal assent. Once a bill has become law, it is thereafter an Statute; but in popular usage the two terms are often treated interchangeably....
 to bring the association's plans to fruition.

The Bill attracted stiff opposition, however, 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 the desire for the "conquest and extermination of the present inhabitants". Anglican and Wesleyan missionaries were particularly 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". Maori, he 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 Maori chiefs had sold their land to settlers for a very small sum, they would be "adopted" by English families and be instructed and corrected.

The New Zealand Land Company


By late 1837 the association had started to gain some favour in government circles, and in December was offered a Royal Charter
Royal Charter

A royal charter is a charter granted by a Monarch to create institutions or other forms of incorporated bodies . In the United Kingdom legal tradition a royal charter is in the form of letters patent....
 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
Secretary of State for War and the Colonies

The Secretary of State for War and the Colonies was a Cabinet of the United Kingdom level position responsible for the army and the British colonies ....
 Lord Glenelg
Charles Grant, 1st Baron Glenelg

Charles Grant, 1st Baron Glenelg, Privy Council of the United Kingdom was a Scotland politician and colonial administrator.Early years...
 it would have to become a joint stock company
Joint stock company

A joint stock company is a type of business entity: it is a type of corporation or partnership between two. Certificates of ownership are issued by the company in return for each contribution, and the shareholders are free to transfer their ownership interest at any time by selling their stockholding to others....
, a condition the association iinitially rejected. But in August 1838 the association was wound up and replaced with two organisations, the New Zealand Colonisation Company and the New Zealand Land Company. In May 1839 both bodies merged with the 1825 New Zealand Company to form the New Zealand Land Company and in December the name "New Zealand Company" was selected for the one and only company that would send emigrants to New Zealand. Once again Edward Gibbon Wakefield provided the driving impetus, although by then the offer of a charter had been withdrawn.

Within the British Government, meanwhile, concern had grown about the welfare of Maori and increasing lawlessness among the 2000 British subjects in New Zealand, who were concentrated in the Bay of Islands
Bay of Islands

The Bay of Islands is an area in the Northland , New Zealand of the North Island of New Zealand. Located 60 km north-west of Whangarei, it is close to the northern tip of the country....
. 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
Consul (representative)

The title Consul is used for the official representatives of the government of one state in the territory of another, normally acting to assist and protect the citizens of the consul's own country, and to facilitate trade and friendship between the people of the country to whom he or she is accredited and the country of which he or she is a...
 as a prelude to the declaration of British sovereignty over New Zealand. The officers of the New Zealand Company knew that any such declaration would involve a freeze on all land sales pending the establishment of effective British control, and control over the purchase of Maori lands by Europeans. They had other plans, which involved treating New Zealand as a foreign country and buying the land directly from the Maori
Maori

The Maori are the indigenous people Polynesian people of Aotearoa . The group probably arrived in south-western Polynesia in several waves at some time before 1300....
, knowing this would allow them to secure a better deal.

The 1839 expedition and land purchases


The New Zealand Company hastily organised a land-buying expedition, which sailed to New Zealand in the Tory in May 1839, commanded by Wakefield's younger brother, Colonel William Wakefield
William Wakefield

William Hayward Wakefield was a New Zealander colonel, the leader of the first colonizing expedition to New Zealand and one of the founders of Wellington....
 and with Edward Main Chaffers as the ship's Master. A second vessel, the Cuba, with a surveyors' team headed by Captain William Mein Smith
William Mein Smith

William Mein Smith was a key actor in the early settlement of New Zealand's capital city, Wellington. As the Surveyor General for the Wakefield's New Zealand Company at Port Nicholson from 1840 to 1843, he and his team surveyed the town of Wellington, after finding the land on the Petone foreshore unsuitable, laying out the Town Belt and oth...
, R.A., sailed in August, followed a month later by the first of nine immigrant ships, even before word had reached London of the success of the Tory and Cuba. The immigrant fleet had instructions to sail to Port Hardy on D'Urville Island
D'Urville Island, New Zealand

D'Urville Island is an island in the Marlborough Sounds along the northern coast of the South Island of New Zealand. It was named after the France List of explorers Jules Dumont d'Urville....
 where they would be told of their final destination.

With the aid of whaler and trader Dicky Barrett
Dicky Barrett (trader)

Richard "Dicky" Barrett was one of the first white traders to be based in New Zealand. He lent his modest translation skills to help negotiate the first land purchases from Maori in New Plymouth and Wellington and became a key figure in the establishment of the settlement of New Plymouth....
, who had good contacts with Maori and a grasp of their language, William Wakefield began negotiating to buy land from the Maori around Petone
Petone

Petone is a major suburb of the city of Lower Hutt in New Zealand. It is located at the southern end of the narrow triangular plain of the Hutt River, New Zealand, on the northern shore of Wellington Harbour....
 in the Wellington area as soon as he arrived in New Zealand, and by the end of 1839 had concluded several purchases extending as far north as Patea
Patea

Patea is the second-largest town in South Taranaki, New Zealand. It is located on the western bank of the Patea River, 61 kilometres north-west of Wanganui on State Highway 3....
 that quickly became mired in controversy over their legitimacy.

The settlement differed greatly from what had been planned in England: among the many falsehoods in company prospectuses and advertising about the nature of the country, Wellington had been described as a place of undulating plains suitable for the cultivation of grapevines, olives and wheat. Plans prepared in England showed parallel streets and sections that bore no relation to the physical contours of the area. Streets and sections, parks and cemeteries had been drawn in an area that consisted of swampy delta or high hills and steep gullies.

The Treaty of Waitangi


The New Zealand Company had long expected intervention by the British Government in its activities in New Zealand, and this finally occurred following the signing of the Treaty of Waitangi
Treaty of Waitangi

The Treaty of Waitangi is a treaty first signed on February 6, 1840, by representatives of the United Kingdom The Crown, and various Maori chiefs from the northern North Island of New Zealand....
 on 6 February 1840. The treaty gave the crown permission to operate within New Zealand with Maori equal to the British Crown, but under its so-called pre-emption clause, Maori were prohibited from selling land to anyone but the Government and its agents. Lieutenant-Governor Hobson
William Hobson

Captain William Hobson Royal Navy was the first Governor-General of New Zealand of New Zealand and co-author of the Treaty of Waitangi....
 immediately froze all land sales and declared all existing purchases invalid pending investigation. The treaty put the New Zealand Company in a very difficult position. They did not have enough land to satisfy the arriving settlers and they could no longer legally sell the land they claimed they owned.

The British authorities progressively eased restrictions on land sales after an agreement at the end of the year between the company and Colonial Secretary Lord John Russell
John Russell, 1st Earl Russell

John Russell, 1st Earl Russell, Order of the Garter, Order of St Michael and St George, Privy Council of the United Kingdom , known as Lord John Russell before 1861, was an England British Whig Party and Liberal Party politician who served twice as Prime Minister of the United Kingdom in the mid-19th century....
, which provided for land purchases by the company from the Crown at a discount price, and a charter to buy and sell land under government supervision. Money raised by the government from sales to the company would be spent on assisting migration to New Zealand. The agreement was hailed by the company as "all that we could desire ... our Company is really to be the agent of the state for colonizing NZ." The Government waived its right of pre-emption in the Wellington region, Wanganui and New Plymouth in September 1841.

Hobson sent his Colonial Secretary, Willoughby Shortland
Willoughby Shortland

Willoughby Shortland was a British naval officer and colonial administrator.He was New Zealand's first Colonial Secretary , having taken up the post when he arrived in New Zealand with Lieutenant Governor William Hobson on 29 January 1840....
, and some soldiers, to Port Nicholson (Wellington) to raise the Union flag and put an end to what his administration perceived as a challenge to British sovereignty – a "colonial council", complete with primitive legal institutions, headed by Wakefield and Smith. Hobson considered the colonists were creating a "republic" and regarded the council's activities as treason.

The settlement of Wellington


Swayed by the opinion of its Surveyor-General, Captain William Mein Smith
William Mein Smith

William Mein Smith was a key actor in the early settlement of New Zealand's capital city, Wellington. As the Surveyor General for the Wakefield's New Zealand Company at Port Nicholson from 1840 to 1843, he and his team surveyed the town of Wellington, after finding the land on the Petone foreshore unsuitable, laying out the Town Belt and oth...
 of the Royal Artillery, the Company established the initial settlement, called "Britannia", of 1100 town sections on the flat land at Pito-one
Petone

Petone is a major suburb of the city of Lower Hutt in New Zealand. It is located at the southern end of the narrow triangular plain of the Hutt River, New Zealand, on the northern shore of Wellington Harbour....
, at the mouth of the Hutt River
Hutt River, New Zealand

The Hutt River flows through the southern North Island of New Zealand. It flows south-west from the southern Tararua Ranges for 56 km, forming a number of fertile floodplains, including Kaitoke, central Upper Hutt and Lower Hutt....
 in January 1840. As well as a town section, each settler had purchased 100 "country acres" (about 40ha) to be located nearby, on which they could grow their food and support themselves initially. However the valley at Pito-one was a mix of dense forest, scrub, flax and swamp, prone to flooding and with a beach so flat ships were forced to anchor 1600 metres from the shore. In March, eight weeks after the first passenger ship arrived, settlers voted to abandon surveying at Pito-one and move the town to Thorndon, to the south-west, one of the few comparatively flat areas on the harbour.

John George Lambton
The area of Lambton Bay (later Lambton Quay) took its name in honour of Lord Durham
John Lambton, 1st Earl of Durham

John George Lambton, 1st Earl of Durham Order of the Bath Privy Council of the United Kingdom , was a British British Whig Party statesman, colonial administrator, Governor General and high commissioner of British North America....
, who had been closely associated with the formation of the Company.

Surveyors quickly encountered problems, however, when they discovered the land selected for the new settlement still inhabited by Maori, who expressed astonishment and bewilderment to find Pakeha tramping through their homes, gardens and cemeteries and driving wooden survey pegs into the ground. Surveyors became involved in skirmishes with the Maori, most of whom refused to budge, and were provided with weapons to continue their work.

Wakefield had purchased the land during a frantic week-long campaign the previous September, with payment made in the form of iron pots, soap, guns, ammunition, axes, fish hooks, clothing – including red nightcaps – slates, pencils, umbrellas, sealing wax and jew's harp
Jew's harp

The Jew's harp, jaw harp, mouth harp, Ozark harp, marranzano pancake, or Omaha Flapjack is thought to be one of the oldest musical instruments in the world ; a musician apparently playing it can be seen in a Chinese drawing from the 3rd century BC ....
s. Signatures had been gained from local chiefs after an explanation, given by Wakefield and interpreted by Barrett, that the land would no longer be theirs once payment was made. However evidence later provided to the Spain Land Commission – set up by Governor FitzRoy to investigate New Zealand Company land claims – revealed three major flaws: that chiefs representing pa
Pa (Maori)

The word pa refers to a Maori village, generally one from the 19th century or earlier that was fortified for defence. In Maori society, a great pa represented the mana of a tribal group, as personified by a chief or rangatira....
 of Te Aro, Pipitea and Kumutoto, where the settlement of Thorndon was to be sited, were neither consulted nor paid; that Te Wharepouri, an aggressive and boastful young chief eager to prove his importance, had sold land he did not control; and that Barrett's explanation and interpretation of the terms of the sale was woefully inadequate. Barrett told the Spain Commission hearing in February 1843: "I said that when they signed their names the gentlemen in England who had sent out the trade might know who were the chiefs." Historian Angela Caughey also claimed it was extremely unlikely that Wakefield and Barrett could have visited all the villages at Whanganui-a-Tara in one day to explain the company's intentions and seek approval.

The Maori occupants of the disputed land received promises of reserves equal to one-tenth of the area, with their allotments chosen by lottery and sprinkled among the European settlers. Edward Jerningham Wakefield
Edward Jerningham Wakefield

Edward Jerningham Wakefield was the only son of Edward Gibbon Wakefield. He was born in London, and educated in England and France.In 1839 he accompanied his uncle, Colonel William Wakefield to New Zealand on the New Zealand Company ship Tory....
, who accompanied his uncle Col. William Wakefield
William Wakefield

William Hayward Wakefield was a New Zealander colonel, the leader of the first colonizing expedition to New Zealand and one of the founders of Wellington....
 to New Zealand on the Tory in 1839, explained that interspersing Maori with white settlers would help them change their "rude and uncivilised habits". He wrote: "The constant example before their eyes, and constant emulation to attain the same results, would naturally lead the inferior race, by an easy ascent, to a capacity for acquiring the knowledge, habits, desires and comforts of their civilised neighbours." Wakefield said the reserves – "a very important part of our projected plan" – would remain inalienable to ensure that the Maori would not quickly sell the land to speculators. Spain eventually negotiated a settlement with Te Aro, Kumutoto and Pipitea chiefs whereby they would sell their land, but retain possession of their pa
Pa (Maori)

The word pa refers to a Maori village, generally one from the 19th century or earlier that was fortified for defence. In Maori society, a great pa represented the mana of a tribal group, as personified by a chief or rangatira....
, cultivations and burial-places.

In August 1840 the New Zealand Company suffered a further setback when the Legislative Council in New South Wales
New South Wales

New South Wales is Australia's oldest and most populous States and territories of Australia, located in the south-east of the country, north of Victoria and south of Queensland....
 decreed that payment for land in New Zealand must go directly to the original inhabitants, and that no individual sale could exceed "four square miles". The NSW Government planned to examine all the purchases of the New Zealand Company – which had already claimed to have bought two million acres (8,000 km²) and sold part of it directly to settlers – as well as more than 1200 individual land claims throughout the country. Panic swept the town and hundreds of settlers chose to abandon their land and sailed to Valparaíso
Valparaíso

Valpara?so is a major city in Chile and one of that country's most important seaports and an increasingly vital cultural center in the hemisphere's Pacific Southwest....
, Chile
Chile

Chile, officially the Republic of Chile , is a country in South America occupying a long and narrow coastal strip wedged between the Andes mountains and the Pacific Ocean....
.

In November 1840 the New Zealand Company directors advised Wakefield that they wished to name the town at Lambton Harbour after the Duke of Wellington
Arthur Wellesley, 1st Duke of Wellington

Field Marshal Arthur Wellesley, 1st Duke of Wellington, Order of the Garter, Order of St Patrick, Order of the Bath, Royal Guelphic Order, Privy Council of the United Kingdom, Royal Society , was an Anglo-Irish soldier and statesman, and one of the leading military and political figures of the nineteenth century....
 in recognition of his strong support for the company's principles of colonisation and his "strenuous and successful defence against its enemies of the measure for colonising South Australia
South Australia

South Australia is a States and territories of Australia of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories....
". Edward Jerningham Wakefield reported that the settlers "took up the views of the directors with great cordiality and the new name was at once adopted".

Nelson


In April 1841 the company informed the Colonial Secretary of its intention to establish a second colony "considerably larger" than the first. The colony was initially to be called Molesworth after Radical
Radical Whigs

The Radical Whigs were "a group of British political commentators" associated with the British Whig Party faction who were at the forefront of Radicalism #Origins....
 MP Sir William Molesworth, a supporter of Wakefield, but was renamed Nelson (after the British admiral
Horatio Nelson, 1st Viscount Nelson

Vice Admiral Horatio Nelson, 1st Viscount Nelson, 1st Duke of Bront?, Order of the Bath was a United Kingdom of Great Britain and Ireland flag officer famous for his participation in the Napoleonic Wars....
) when Molesworth showed little interest in leading the colony. It was planned to cover , consisting of 1000 allotments. Each would be 150 acres (60 hectares) of rural land, 50 acres (20 hectares) of accommodation land and one "town acre" (4000 square metres), with half the funds raised by land sales being spent on emigration and about £50,000 ending up as company profits. The land would be sold at £301 per allotment or 30 shillings an acre, one pound an acre more than land at Wellington, with a lottery to determine the ownership of specific allotments.

Two ships, the Whitby and Will Watch, sailed that month for New Zealand with surveyors and labourers to prepare plots for the first settlers (scheduled to follow five months later). Land sales proved disappointing, however, and threatened the viability of the settlement: by early June only 326 allotments had been sold, with only 42 purchasers intending to actually travel to New Zealand. Things had improved little by the drawing of the lottery in late August 1841, when only 371 of the allotments were drawn by purchasers, three-quarters of whom were absentee owners.

The two survey ships arrived at Blind Bay (today known as Tasman Bay
Tasman Bay

Tasman Bay is a large V-shaped bay at the north end of New Zealand's South Island. Located in the centre of the island's northern coast, it stretches along 120 kilometres of coastline and is 70 kilometres across at its widest point....
), where the expedition leaders searched for land suitable for the new colony, before settling on the site of present-day Nelson
Nelson, New Zealand

The city of Nelson is close to the centre of New Zealand. It lies at the shore of Tasman Bay, at the northern end of the South Island, and is the administrative centre of the Nelson region....
, an area described as marshy land covered with scrub and fern. In a meeting with local Maori, expedition leader Arthur Wakefield claimed to have gained recognition – in exchange for "presents" of axes, a gun, gunpowder, blankets, biscuits and pipes – for the 1839 "purchases" in the area by William Wakefield. By January 1842 the advance guard had built more than 100 huts on the site of the future town in preparation for the arrival of the first settlers. A month later the township was described as having a population of 500, along with bullocks, sheep, pigs and poultry, although the company was yet to identify or purchase any of the rural land for which purchasers had paid.

The search for this remaining would ultimately lead to the Wairau Affray
Wairau Affray

In New Zealand history, the Wairau Affray on 17 June 1843, also known as the Wairau Massacre in most older texts, was the first serious clash of arms between the Maori natives and the United Kingdom settlers after the signing of the Treaty of Waitangi and the only one to take place in the South Island....
 – then known as the "Wairau Massacre" – of June 17, 1843, when 22 Europeans and four Maori died in a skirmish over land in the Wairau Valley, 25 km from Nelson. Arthur Wakefield claimed to have bought the land from the widow of a whaler who, in turn, had claimed to have bought it from chief Te Rauparaha
Te Rauparaha

Te Rauparaha was a Maori rangatira and war leader of the Ngati Toa tribe who took a leading part in the Musket Wars. He was influential in the original sale of land to the New Zealand Company and was a participant in the Wairau Incident in Marlborough, New Zealand....
. The chief denied having sold it. Although settlers in Nelson and Wellington were appalled at the slaughter at Wairau, an investigation by Governor Robert FitzRoy
Robert FitzRoy

Vice-Admiral Robert FitzRoy achieved lasting fame as the captain of HMS Beagle during Charles Darwin's famous voyage, and as a pioneering meteorology who made accurate weather forecasting a reality....
 laid the blame squarely at the feet of the New Zealand Company representatives.

As early as 1839 the New Zealand Company had resolved to "take steps to procure German emigrants" and appointed an agent in Bremen
Bremen

Bremen is a Hanseatic League city in northwestern Germany . It is a port city, situated along the Weser River, about south from its mouth on the North Sea....
. A bid in September 1841 to sell the Chatham Islands
Chatham Islands

The archipelago of the Chatham Islands is a territory of New Zealand of about ten islands within a radius. The remote islands, over east of southern New Zealand, have officially belonged to the country since 1842....
 to the Deutsche Colonisations Gesellschaft was quashed by the British Government. German migrants instead moved to Nelson.

Further settlements

The New Zealand Company also established a settlement at Wanganui
Wanganui

Wanganui is an urban area and district on the west coast of the North Island of New Zealand. It is part of the Manawatu-Wanganui region.Like several New Zealand centres, it was officially designated a List of cities in New Zealand until administrative reorganisation in 1989, and is now run by a District Council....
 in 1840 – chiefly as a spillover settlement
Principles of Intelligent Urbanism

Principles of Intelligent Urbanism is a theory of urban planning composed of a set of ten axioms intended to guide the formulation of city plans and urban designs....
, the site of the rural land promised to Wellington purchasers – and also became indirectly involved in the settlement of New Plymouth
New Plymouth

New Plymouth is the major city of the Taranaki region on the west coast of the North Island of New Zealand. It is named after Plymouth, Devon, England, from where the first English settlers came....
 in 1841, through its links with the Plymouth Company, which merged with the New Zealand Company the same year. The company also sent surveyors down the east coast of the South Island
South Island

The South Island is the larger of the two major Islands of New Zealand of New Zealand, the other being the more populous North Island. The Maori name for the South Island, Te Wai Pounamu, meaning "The Water/s of Greenstone" , possibly evolved from Te Wahi Pounamu which means "The Place Of Greenstone"....
 to consider further sites, where they made contact at Akaroa
Akaroa

Akaroa is a village on Banks Peninsula in the Canterbury, New Zealand region of the South Island of New Zealand. It is 82 kilometres by road from Christchurch, New Zealand, and is the terminus of State Highway 75....
 with the fledgling French colony established there under the auspices of Jean-François Langlois's Nanto-Bordelaise Company.

In July 1843 the New Zealand Company issued a prospectus for the sale of 120,550 acres (48,000 hectares), divided between town, suburban and rural lots at a new settlement called New Edinburgh. The location of the settlement still remained undetermined. An office was established in Edinburgh
Edinburgh

Edinburgh ; is the Capital city of Scotland, a position it has held since 1437. It is the seventh largest city in the United Kingdom and the second largest Scottish City status in the United Kingdom after Glasgow....
 to attract Scottish emigrants. A 400,000 acre (160,000 hectare) block was selected around the harbour at Otakou (Otago
Otago

Otago is a regions of New Zealand in the south of the South Island. It has an area of approximately making it the country's second largest region....
) in January 1844. The company worked with the Lay Association of the Free Church of Scotland
Free Church of Scotland

The Free Church of Scotland is the name of three historic Presbyterianism denominations in Scotland, two of which exist today:* The Free Church of Scotland was the name of that part of the Scottish Church that seceded from the Church of Scotland in the Disruption of 1843....
 on the sale of, and ballot for, land and the first body of settlers sailed for what became the settlement of Dunedin
Dunedin

Dunedin , Otepoti in Maori, is the second-largest city in the South Island of New Zealand, and the principal city of the region of Otago. It is New Zealand's fifth largest city in population, the largest in size of council boundary area, and the hub of the sixth-largest urban area....
 in late November 1847.

A month later Gibbon Wakefield began actively promoting a plan he had proposed in 1843: a Church of England
Church of England

The Church of England is the State religion Christianity Ecclesia in England, the Mother Church of the worldwide Anglican Communion and the oldest among the communion's thirty-eight independent national and regional churches....
 settlement. New Zealand Company directors initially hoped to site the settlement in the Wairarapa
Wairarapa

Wairarapa is a geographical region of New Zealand. It occupies the south-eastern corner of the North Island, east of metropolitan Wellington and south-west of the Hawke's Bay region....
 region in the lower North Island. When local Maori refused to sell, however, its surveyor inspected Port Cooper (Lyttelton Harbour
Lyttelton Harbour

Lyttelton Harbour is one of two major inlets in Banks Peninsula, on the coast of Canterbury, New Zealand, New Zealand. It is approximately 15 km in length, from its mouth to Teddington....
) on the east coast of the South Island and chose this as the location. Land was bought from 40 members of the Ngai Tahu
Ngai Tahu

Ngai Tahu, or Kai Tahu, is the principal Maori iwi of the southern region of New Zealand, with the tribal authority, Te Runanga o Ngai Tahu, being based in Christchurch, New Zealand and Invercargill....
 iwi in June 1848. The colonising efforts were taken up by the Canterbury Association
Canterbury Association

The Canterbury Association was formed in order to establish a colony in what is now the Canterbury, New Zealand in the South Island of New Zealand....
, Gibbon Wakefield's new project, and the New Zealand Company became a silent partner in the settlement process, providing little more than the initial purchase funds.. The first of the body of 1512 Canterbury settlers sailed on September 8, 1850 for their new home.

  • For more information on New Zealand Company involvement in New Plymouth, see History of New Plymouth
    History of New Plymouth

    The city of New Plymouth, New Zealand, has a history that includes a lengthy occupation and residence by Maori, the arrival of white traders and settlers in the 19th century and warfare that resulted when the demands of the two cultures clashed....
  • For more information on New Zealand Company involvement in Christchurch, see Canterbury Association
    Canterbury Association

    The Canterbury Association was formed in order to establish a colony in what is now the Canterbury, New Zealand in the South Island of New Zealand....


Financial difficulties and dissolution


The New Zealand Company began falling into financial difficulties from mid-1843 for two reasons. It had planned to buy land cheaply and sell it dearly and anticipated that a colony based on a higher land price would attract affluent colonists. The profits from the sale of land were to be used to pay for free passage of the working-class colonists and for public works, churches and schools for instance. For this scheme to work it was important to get the right proportion of labouring to propertied immigrants. In part the failure of the company's plans were because this proportion was never achieved – there were always more labourers, whose emigration was heavily subsidised by the company, than landed gentry.

The second major flaw arose because a large proportion of the land in the new colony was bought for speculative reasons by people who had no intention of migrating to New Zealand and developing the land they had bought. This meant that the new colonies had a serious shortage of employers and consequently a shortage of work for the labouring classes. From the outset the New Zealand Company was forced to be the major employer in the new colonies and this proved a serious financial drain on the company. Repeated approaches were made to the British government seeking financial assistance and in late 1846 the company accepted an offer for a £236,000 advance with strict conditions on, and oversight of, future company operations.

In June 1850 the company admitted land sales in Wellington, Nelson and New Plymouth had remained poor and its land sales for the year ended April 1849 amounted to only £6266. With little prospect of trading its way to profitability, the company surrendered its charter. A select committee report concluded the company's losses were "mainly attributable to their own proceedings, characterised as they were in many respects by rashness and maladministration."

Gibbon Wakefield, who had resigned from the company in disgust after its 1846 financial arrangement with the British government, remained defiant to the end, declaring in 1852 that had the company been left alone it would have paid a divident, recouped its capital "and there would now be 200,000 settlers in New Zealand".

The company, in its final report in May 1858, conceded it had erred, but said the communities they had planted had now assumed "gratifying proportions" and they could look forward to the day when "New Zealand shall take her place as the offspring and counterpart of her Parent-Isle ... the Britain of the Southern Hemisphere."

Further reading

  • A society of gentlemen: the untold story of the first New Zealand Company by Richard Wolfe (2007, Penguin, North Shore Auckland) ISBN 9780143020516