With the end of the year 1835 Jones began to extend his stations and trade operations to other parts of the Otago coastline than Preservation Inlet and the Southern Islands. This obliterates the line of demarcation between the trade of the rival whaling stations of Jones and Weller and suggests a combination of the Otago trade in any continuation of the narrative. The old arrangement of separating Preservation Inlet and Otago Harbour trade will, therefore, be now discontinued.

The close of the year 1835 saw the Sydney Packet away at the Preservation Bay station and the Persian at the Otago. The latter took away from Otago, on 9th January, a cargo of 130 tuns of oil, and on her arrival at Sydney commenced preparations for her London voyage. Mean-time the Joseph Weller had been sent down to Otago on 6th January, and took away from there, on 20th April, a cargo of oil and bone. She was now under the command of Captain Gaunson, but this was her last voyage to Otago, for about the middle of March she was sold to Mr. Peacock for the coastal trade of Australia.

The Sydney Packet appears to have sailed northward after leaving Jones' station. She secured a return cargo for R. Jones and Co., and brought to Sydney the first intimation of the seizure of the Active by the Port Nicholson natives. Captain Bruce issued a warning to shipmasters to be careful in associating with the natives as they were on the move southward.

With the Persian loading for England, and the Joseph Weller sold, Weller had to make other arrangements for supplying his Otago station. He sent down a cargo of stores in the Mediterranean Packet on 2nd March, and, about a fortnight later purchased a brig of 302 tons— page 173 the Harriett—for £1500. This vessel had just arrived from China with a cargo of tea. Shortly afterwards the Sydney Packet sailed for Preservation Bay, and in April the Denmark Hill and the Harriett sailed.

Captain Greene of the Mediterranean Packet was delighted with the Otago Harbour, both as a resort for whale fishers and a place where good anchorage and plenty of whales could be got. After leaving it he sailed for Cloudy Bay.

On 17th June Captain Bruce returned from his tour of the Otago whaling stations in the Sydney Packet. He had met the Martha, of Newport, at Preservation, the Gratitude, of New Bedford, at Chalky, and on 8th May, the Ionic, of Boston, in Foveaux St. Twelve days afterwards he met the Harriett at Port William with 30 barrels of sperm oil, and bound for Otago. At the Bluff he met the Denmark Hill, with 30 tuns of oil. The Louisa had sailed from the Neck. Stewart Island, on 19th January, bound for Chatham Island.

This was the first mention of American vessels at any of the Otago ports. The Martha and the Gratitude were whalers, and the Ionic, a sealer. The Denmark Hill and the Louisa were Sydney whalers, working quite independent of the shore stations.

On 1st September Captain Bruce returned from the Preservation whaling station in the third trip of the schooner Sydney Packet. In addition to his oil cargo he had the following passengers:—Peter Williams Mrs. Williams, John Ives, Peter Thomson and Garrett Donald. He had found the Denmark Hill with 100 tuns, and the Gratitude with 150 tuns, at the Bluff on 30th July. At Otago were the Martha, the Columbus, and one English and one Colonial whaler. The Otago gangs comprised twelve boats' crews, and had secured 100 tuns of oil since the commencement of the season. At the same place a man named George McGuinness, better known as George Macquarie, from having spent a number of years at page 174 Macquarie Island, had been drowned while attempting to secure a boat which had got adrift.

Captain Bruce also reported that when at New Zealand he had observed a great number of cedar logs strewn along the beach, also a 200 gallon water cask, nearly new, and marked “Gordon.” At Passage Island the Europeans reported that they had seen a mass of wreckage floating out at sea, and, thinking it was the hull of a vessel, they went out in their boats and brought it in. It turned out to be the poop and bends of a ship about 300 tons nearly new and recently destroyed. A part of the wreck was sent over to the master of the Gratitude, who was then at the Bluff, and he expressed the opinion that she was American built. The vessel had been fastened with iron bolts, several hundredweight of which had been burnt out by those who had possession of the wreck. At sea Captain Bruce saw a great quantity of cedar, some of which was branded CFX and marked No. 9 in white paint, quite fresh. The bulk of the timber was seen near the Tortoy River, but other pieces were seen at Patterson River and at Dog Island. Captain Bruce brought to Sydney two of the quarter galley deadlights from the wreck, on which was branded, “Wallace, Leith”—supposed to be the maker's name. From the general appearance of the wreckage it was thought that the vessel must have been in the water about two or three months.

The next vessels to be sent down were the Nimrod, by Weller, on 18th September, and the Sydney Packet on her fourth trip for the year. The latter spoke the Denmark Hill between Preservation Bay and Port Finlay. That vessel had avoided Cloudy Bay and opened up new ground in Foveaux Strait. Although she had only left Sydney on 10th April she returned on 2nd November with no less than 160 tuns of black oil and 15 tons of whalebone. In addition to speaking the Sydney Packet, the Denmark Hill spoke the Marion Watson trading along the coast in August, and the Gratitude repairing in Port Finlay.

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On 18th November Captain Bruce brought up the sehooner Sydney Packet with another cargo of black oil and whalebone from Johnny Jones' whaling stations. His passengers were Edward Palmer, James Spencer, and David Burman in the cabin, and James and Peter Davis in the steerage. The distinction of passengers into cabin and steerage was an indication that civilisation was proving superior to the methods of the good old days. Bruce had been to Ruapuke and reported that the brig Genii, had sailed from there the day before the Sydney Packet, with a cargo of 35 tuns of oil.

The crew of the Sydney Packet had been badly affected by the influenza before reaching New Zealand and the Natives had threatened to kill the steward for introducing this new disease among them. It had for some time been prevalent at Sydney. So disastrous had the malady proved among the New Zealanders that it was said to have arrested the warlike preparations made in connection with an invasion of the southern natives by Te Rauparaha. Great numbers of those affected by the ailment were said to be lying about half dead.

Five days later the Genii brought into port 1000 barrels of black oil, 50 of sperm, and 2 tons of bone, all consigned to R. Duke. She had been at Otago when the Marion Watson called there on 10th September. Catlin, after whom the Catlins district in Southern Otago is named, commanded her.

When the Sydney Packet left Otago the Nimrod was there loading. The American whalers, Martha and Columbus, had done well at and near Otago, securing in all no less than 3300 barrels, and Weller's gangs had obtained 290 tuns of oil, outside of what had been secured by the Harriett. The last named vessel sailed from Otago on 26th October with 199 tuns, and 7 tons of bone, and the Nimrod, on 2nd November, with 105 tuns of oil, 10½ tons of whalebone, and a whaling gang of 31 men that had been unlucky in their season's whaling.

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It only remains to record that the Marion Watson was at the Bluff on 27th August, Otago on 10th September, and Port Cooper seven days later.

It was at this stage that “Johnny” Jones purchased the schooner Mic Mac, and sent her down on 6th December under the command of Captain Bruce. By this time Jones' operations in the whaling line had come very much under the public eye, and one of the Sydney papers, speaking of him, said:—“Mr. Jones has from comparatively small means (having a few years since plied as a waterman on the wharf), realised from persevering industry a very handsome competence, he is, we believe a native of the Colony and as such is a credit to his countrymen.”