PANAMA CORRESPONDENCE.

Lyttelton Times, Volume XXI, Issue 1245, 4 June 1864, Page 2

PANAMA CORRESPONDENCE.

(Continued.) No. 35. Mil. WORLEY TO MB, WARD. 41 Moorgate street, October 20,1863. My Dear Sir, —In answer to your favour receive# this morning, unless you would agree to give 6s. a mile, instead of only ss. for the Interprovincial service, I do not see how the stipulation in reference to the Auckland line can be withdrawn. Mr. Wilson and Captain Hamilton, whom I have just consulted on the subject, and myself, will however, take upon ourselves to consent to the clause relating to the Claud Hamilton being expunged, if the concession will induce you to settle the matter without further negociation. £9000 a year is little enough for the Auckland line, particularly if worked with expensive boats like the Prince Alfred, Auckland, and Otago. I have, &c., Jas. "Wokley. Crosbie Ward, Esq. No. 36. MR. WORLEY TO MR. WARD. 41, Moorgate Street, Oct. 23,1863. My Dear Sir, —In reply to your esteemed favour of the 21st inst., and in reference to the conversations held between us, and between yourself and Mr. Wilson, which were communicated to the Board at their meeting to-day, I have to state that as you were not prepared to promise the acceptance of our tender, if the condition relative to the Sydney and Auckland service were withdrawn, the directors have deemed it inexpedient to make any modification on this point, beyond expunging the clause respecting the Claud Hamilton. But had the suggestion made by you been put in such a form that compliance therewith on the part of the Board would have brought our lengthened negociations to a satisfactory termination, they might have been induced to give way. Having again carefully considered the entire question, the directors are of opinion that, under the circumstances, it will perhaps be better that the alternative course you have suggested should be carried out, viz., that the tender submitted by the Board should be referred to the New Zealand Government for their approval, before anything is definitely settled. This would afford ample opportunity for such arrangements to be made in reference to existing services as would be satisfactory to both parties. It is assumed that you would be willing to recommend to your Government the acceptance of our offer. The proposed modification respecting the simultaneous commencement of the Panama service at both ends, and the rates for passengers, &c., &c., could be agreed to. I remain, &c., Jas. Worley. P.S.—According to the Sydney papers, there appears to be every prospect that the bi-monthly service via Suez will be established, as New South Wales seems willing to contribute towards it. J. W. Crosbie Ward, Esq. No. 37. MR. WARD TO SECRETARY GENERAL POSTOFFICE. London, Oct. 20,1863. Sir, —I have the honour to inform you that the negociations which have for some time been in progress for the establishment of a line of mail steamers between Panama and New Zealand and Sydney under contract with the Government of New Zealand are now nearly completed, and ready to be embodied in a contract. I have now accordingly to request the permission of the Postmaster-General to consult the solicitor to the Post Office in the matter, and to obtain his assistance in preparing the contract, in order not only that the colony may have the advantage of his professional skill and experience in an enterprize so important as the present, but also that the fullest opportunity may be given for the suggestion by Her Majesty's Post Office of conditions calculated to satisfy the general requirements of the postal service.

I have, &c., Crosbie Ward. The Secretary, General Post Office, St. Martin's le Grand. No. 38. MB. EREDERIC HILL TO MR. WARD. General Post-Office, 26th October, 1563. Sir, —I am directed by the PostmasterGeneral to acknowledge the receipt of your letter of the 20th inst., and to inform you that his Lordship has desired Mr. Ashurst, the solicitor to this department, to afford the assistance you require in preparing the contract proposed to be entered into by the Government of New Zealand for the conveyance of mails between that colony and Panama. I am, &c., F. Hill. Crosbie Ward, Esq. [A letter numbered 39 in the series, appears improperly in the correspondence.] No. 40. MR. WORLEY TO MR. WAR]). 41 Moorgate street, Oct. 30,1863. ! My Dear Sir, —I duly received your esteemed favour of the 25th instant. Immediately after the arrival of the next advices from the colonies there will be a Board meeting, and the whole matter will then be settled one way or the other. The Directors are very desirous of meeting your views as far as they possibly can ; but as the scheme is purely experimental, and one of great magnitude, they are anxious to see their way quite clear, and naturally cautious as to the terms they accept. I have, &c., Jas. Wok ley. Crosbie Ward, Esq. No. 41. MR. WAR]) TO CHAIRMAN I.R.M. COMPANY. Killinchy, 2nd November, 1863. My Lord, —I have the honour to acknowledge receipt of your Lordship's letter of the 16th ultimo, conveying to me a tender from the Board of Directors of the Intercolonial Royal Mail Steam Packet Company, for the performance of a monthly mail service between Sydney, New Zealand, and Panama, and vice versa, for the continuance of the existing line between Sydney and Auckland, and for the performance of" the present and any additional interprovincial services that may be required by the Government of New Zealand, ou certain terms and conditions, to which I have given the most careful consideration. I have to state, that the tender now submitted is satisfactory in all its main features,

with one exception. I should be prepareg to accept at once, with modifications of triflind ; importance, the offer of the Board to perform tbe Panama, New Zealand, and Sydney service, as well as the interprovincial services, on the terms and conditions specified; but after full consideration, I am unable to accept that portion of the tender which relates to the Auckland and Sydney service. In the first place, on the establish merit of the Panama line of communication between Great Britain and the colony, the service in question would cease to be an important part of the colonial postal system, and its continuance therefore would not properly form an item in a general mail contract. Further, as the colony of New Zealand would enter into the contract as a whole, without any prior understanding with the other Australian colonies as to a participation in the expenses, it is highly undesirable to load the undertaking with an unnecessary expenditure of £9000 per annum. It is at the same time quite possible, that upon obtaining the consent of the other colonies to bear a share of the expense of the main line, the Government of New Zealand may be disposed to maintain one or more additional intercolonial services. And it is not unlikely that in any ease the commercial and other requirements of Auckland may be considered of sufficient importance to w—*°Jit the maintenance, either by the C 0101,,, (or the Provincial Government, of a special means of communication between that port and Sydney. The directors, however, have no doubt sufficient means of forming an opinion on this subject.

I have to state accordingly, that if the directors will be pleased to amend their tender by withdrawing the third subdivision— sections 1, 2, 3 —l shall be happy to accept the remaining portion of the offer forthwith. But if hot, and in case of no other acceptable offer for the Panama service being made to me before the 31st December next, I shall be happy to refer their tender as it stands for consideration by the Colonial Government, who, upon consultation with some of the Australian colonies, may possibly find themselves in a position to accept it. I have, &c., Chosbie "Ward. The Eight Honourable Lord Claud Hamilton, M.P. No. 42. MR. WORLEY TO MR. WARD. 41 Moorgate-street, November 4, 1863. My Dear Sir, — I had the pleasure to receive this morning your favour of the 2nd inst., enclosing an official communication re the Panama line. The board meeting to which I alluded will be held immediately after the arrival of the mail via Marseilles. As most of the directors are now away in the country, I fear I shall not be able to do anything before the meeting; but I don't hesitate to express the opinion that a satisfactory arrangement will be come to. I have, &c., James "Worlet. No. 43.

SECEETAEY OF TBEASTTEY TO ME. WAED. Treasury Chambers, Nov. 7,1863. Sir, —I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you that iny Lords have bad under their consideration your letters of the 15th August and 2nd September last, relative to the proposed establishment of a mail service between New Zealand and Panama, at the sole cost of the Government of New Zealand. With regard to yonr enquiry as to whether it may not. be " advisable for the public service that the negcciations for the service should be entered into, and the contract effected by or through Her Majesty's Post-master-General, the guarantee of the colony being taken for the whole subsidy," I am to state, that my Lords having communicated with the Postmaster-General on the subject, his Lordship has intimated that the Post Office authorities will be ready to assist you in any way you may think desirable in carrying on the preliminary negociations for the service in question; but Lord Stanley of Alderley is of opinion, in which opinion my Lords concur, that it would be better that any contract should be entered into directly by the New Zealand Government, the more especially as the Post Office authorities of that colony are in a better position than the British Post Office for superintending the service.

With respect to the apportionment of the postage levied on the correspondence sent by the proposed route, so long as the whole rate of postage is 6d. per half-ounce letter, 4d. of that sum must be considered the portion levied for the sea conveyance, and 2d. the Imperial and Colonial inland rates. If the whole postage be hereafter increased to Is. per halfounce letter, as has been under consideration, and has already been carried into effect wit regard to the postage on letters forwardeu by the contract packets to the West India colonies, and the Cape of Good Hope, lOd. of the postage of Is. the half-ounce may be considered as sea postage.

With regard to the sea postage, therefore, as nil letters, newspapers, &c., sent by way of Panama, will have to be conveyed between this country and Colon by the Packets subsidized by the Home Government,thoßritish post office has an equitable claim to a share thereof; but with the view of rendering assistance to New Zealand, should the proposed packet communication be established, my Lords would be prepared to authorise the Postmaster-General, at the outset, temporarily to waive the claim of the Imperial post office on account of such sea postage. My Lords, however, would desire it to be understood that they are at liberty at any time to discontinue this privilege, and to re-r quire payment for the service to be rendered if it appear to them expedient so to do. With respect to the inquiry in your letter of the 2nd inst., as to whether, in the event of the contemplated service proving efficient, and the Government of New Zealand determining to put an end to the contract for the existing branch service between Sydney and New Zealand, her Majesty's Government would be willing during the period to which that contract has yet to run, to apply towards the cost of the new service the annual contribution of £13,000 now made from Imperial funds in aid of the subsidy for the branch service, I am to state that my Lords are not prepared to comply with this request. The contract for this service can be determined in November 1865, provided notice be given twelve months previously ; and it appears to my Lords that when the proper time arrives notice should be given, and the contract terminated, in order to place this line on a footing with the other branch services, provided under the postal arrangements subsisting with the Australian colonies. If previous to that time the branch packet

between Australia and New Zealand is found to be of little value, and can without inconvenience be withdrawn, steps should be taken if practicable for determining the contract at an earlier date, but as the payment by the Home Government of the large contribution of £13,000 a-year arose from accidental circumstances, my Lords are not prepared to authorise its continuance any longer than is absolutely necessary. I have, &c., F. Peel. Crosbie Ward, Esq. No. 44. MR. WORLEY TO MR. WARD. 41, Moorgate Street, Nov. 12,1863. My Dear Sir,—Haviug consulted the chairman, Mr. Wilson, and some of the other directors, I can now say what course will be adopted. We shall withdraw the stipulation in reference to the Auckland and Sydney line, make the commencement of the Panama service at both ends simultaneous, reduce the maximum charge for first-class passengers between Sydney and Panama and Wellington and Pauama to £65 and £55 respectively; agree that the fourth boat shall be of the same horse-power as well as capacity of the others; amend paragraph 4, of division No. 2, by adding " and H.P." after the words " larger dimensionsand undertake instead of requiring seven days for the passage between Wellington and Sydney, that the vessel shall reach the latter port seven days after her arrival at the former i one, and leave Wellington seven days after her departure from Sydney; the Company being at liberty to detain her at Wellington for any period not exceeding forty-eight hours.

These are all the modifications you suggested. The Board would be very glad if you would consent to the Ist March, 1865, instead of the Ist January, being fixed for the commencement of the Panama service. The reason for this is simply, that we find in consequence of the builders having so much work on hand, it will hardly be possible to place the vessels on their station before the middle of January or February. If we give the orders at once we shall not obtain delivery of the ships before next August at the earliest, and it would be the end of September or the beginning of October before we could get them away. As a set-off against this concession, we should provide the fourth boat within six months after the others, instead of twelve, and it is not unlikely it would be even earlier than that, as the Board feelthatin order to make the service thoroughly efficient, and be fully prepared for contingencies, it will be necessary to supply the fourth vessel with the least possible delay.

I am not sure also that some of the boats will not be bigger than those promised, but we could not guarantee that they should. I was in hopes that the Board meeting would have been held next Monday, but as the mail is unusually late this time, it cannot take place before Wednesday. We shall take care, however, to send the official letter by that day's post. As the half-yearly general meeting of the shareholders will be held this month, it is proposed to submit the agreement for the new contract to them for confirmation. The Directors deem it advisable to follow that plan, as we are giving up so large a portion of our existing subsidies; but it will be purely a matter of form. They would of course undertake to recommend the agreement for adoption, and as they and tiieir own immediate friends represent nearly half the entire proprietary, and they have never had any of their recommendations negatived, or even modified, I cannot imagine that any objections will be started in this instance. I have, &c., Jas. Woelet. Crosbie Ward, Esq. No. 45.

CHAIRMAN 1.8.M. COMPANY TO MB WABD. 41 Moorgate-street, November 18, i 863. Sir,—l have the honor to acknowledge the due receipt of your communication of the 2nd inst., in which you state that you would be prepared to accept at once with modifications of trifling importance the offer of the Board conveyed to you in my letter of the 16th October for the performance of the Panama, New Zealand, and Sydney mail service, as well as the interprovincial services, on the terms and conditions specified ; but that you are unable to accept that portion of the tender which relates to the Auckland and Sydney line. Having laid the matter before the board, I am authorised to inform you in reply that the stipulation relating to the Auckland and Sydney service, to which you make objection, will be withdrawn, and therefore clauses No. 1, 2 and 3, of the division No. 3, mentioned in the tender, will be cancelled. The directors, however, are glad to receive the expression of your opinion, that it is not unlikely the General Government may eventually decide upon maintaining the service in question, and possibly a second intercolonial line, for the performance of which it is assumed that the vessels of this Company would be subsidized in preference to those belonging to other parties. Instead of requiring seven days lor the p&Bsage between Sydney and Wellington, the directors would undertake that the vessel should reach the latter port several days after her arrival at the former one, and leave Wellington seven days after her departure from Sydney, the company being- at liberty to detain the ship at Wellington for any period not exceeding forty-eight hours. It is presumed that Wellington will be selected as the port of call in JNew Zealand. The board are disposed to give the preference to Auckland, but they leave the matter in y °l havetlso to state that if y ou desire it, the board will undertake that the service between Sydney, Neiw Zealand am Panama shall commence from the same month as from Sydney, instead of one month later, as at first contemplated; the full subsidy being payable from the date of the commencement of the service, which it is pro posed shall be Ist March, 1865, instead of p red to amend clause 4of No. 2, by adding the words and horse-power" after " larger dimensions, and it is understood that the fourth vesse provided for the Panama line wile same power and capacity as the ot , boats. I may mention, also, tha i unlikely that the fourth vessel will be ready within six months after the others, directors are of opinion that in or secure the efficient working of the line, an to be prepared for contingencies, i Birable it should be on the station as early as P °The l ßoard are likewise willing to reduce the maximum charge for first-class passenge

between Wellington and Panama to £55, ami to stipulate that the through rate to bydney shall not exceed £65. I have only further to add that as the directors now regard the agreement for the new contract as virtually settled, it is their intention to proceed at once with all the necessary arrangements for carrying it out. I have, &c., Claud Hamilton, Chairman. Ihe Honourable Crosbie Ward, Esq., Postmaster-General of New Zealand. No. 46. MR. WOBLEY TO MB. WARD. 41, Moorgate-street, November 18th, 1868. My Dear Sir,— I beg to thank you for your kind letters of the 13th and 14th inst. The suggestion you make is certainly worthy of careful consideration. I called at your office this morning, and left a letter from the Board agreeing to all the proposed modifications. It has been decided to dispense with any formal ratification on the part of the shareholders. We snail inform them in the report we intend issuing to-morrow, preparatory to our half-yearly general meeting, that the arrangement has been concluded for the Panama service. We shall be prepared to sign the contract as soon as ever it is ready. Our Messrs. Cunliffe and Beaumont, of Chancery Lane. They are well known to Mr. Ashurst, the solicitor to the Post Office. I have, &c., James Wobley. Crosbie Ward, Esq. No. 47. MB. WABD TO CHAIRMAN 1.8.M. COMPANY. London, 19th Nov., 1863. My Lord, —I have the honour to acknowthe receipt of your Lordship's letter of the 18th inst., in which you inform me that the Board of Directors of the Intercolonial Royal Mail Steam Packet Company are willing to withdraw the stipulation relating to the Auckland and Sydney service contained in clauses 1, 2, and 3, of subdivison No. 3, of their tender for the Panama, New Zealand and Sydney mail line, and the intercolonial and interprovincial steam services. I have the honour accordingly to state that I accept the present tender on behalf of the G-overnment of New Zealand. With regard to the minor modifications proposed in your Lordship's letter, I have to observe that they appear to be desirable amendments to the original tender, except that the commencement of the service is proposed to be postponed from the first of January to the first of March, 1865, an alteration in which I trust the Board will not insist unless upon the ground of some practical necessity for it. A draft contract, embodying the heads of the agreement, shall be prepared as quickly as possible, and submitted to your Lordship for the approval of the Board. I have, &c., Ceosbie Ward. The Right Honourable Lord C. Hamilton, M.P., &c., &c. No. 48. Consulat General de France en Angleterre, London, November 20, 1863. Sir, —In reference to an advice I have read this morning in the money article of the Times, respecting aline of steamers, intended to run monthly between New Zealand and Panama, I beg leave to apply to you, in order to ascertain Avhether such steamers might possibly be allowed to call at Tahiti, and if so, on what conditions both the Government of New Zealand and the Intercolonial Company would be prepared to come to an agreement with the French Government. I would feel particularly obliged by an early answer. I have, &c., Fleury, Consul General for France. Mr. Crosbie Ward. No. 49.

London, 23rd Nov., 1863. Sir, —I have the honour to acknowledge the receipt of your letter of the 20th instant, in which you do me the honour to enquire whether the steamers which have been arranged to run monthly between New Zealand and Panama might possibly be allowed to call at Tahiti, and if so, on what conditions both the Government of New Zealand and the Intercolonial Company will be prepared to come to an agreement with the French Government.

In reply, I desire to acquaint you that the New Zealand Government having taken upon themselves the entire charge for, and the sole control of the new service, have done so, not in any exclusive spirit, but with the desire of rendering that means of postal communication available to all who wish to use it; and among others they will be gratified to include if possible the French colony of Tahiti. But before determining the conditions on which the New Zealand Government will be prepared to send their mail steamers to Tahiti, it will be necessary to fix to the satisfaction of both parties, the increased distance to be run, and the delay which will be caused in the conveyance of the New Zealand mails, as well as the principle on which the contribution of the French Government to the general subsidy shall be calculated. As you express a desire for a speedy reply, and as my duties will compel me to leave town for a few days, after to-morrow, I shall be happy to meet'yourself, or such person as you may appoint, at any time to-morrow, between the hours of II a.m. and 4 p.m., for consultation on the matter* above referred to; and I shall be glad to receive, early tomorrow, a note appointing the exact hour, it you can accord me the interview. I have, &c., Cbosbie Ward. A Monsieur Fleury, French Consulate, London.

No. 50. MB. WARD TO COLONIA.L SEC ' BI3T "^- 24th November, 18Gd. Sir —I have the honour to inform you that I have accepted a tender from the Intercolonial Boyal Mail Steam Packet Company to run a monthly line of steamers, each way, between Wellington and Panama for beginning from the Ist January, <■ • , that certain alterations m the B - vices have been agreed upon to take ettect from the same date, in the following manner All services now performed by the C 0 are to cease from the commencement of the new agreement, except those provi the original contract of May, 1858, the P visions of which are to continue m force until 31st December, 1869. The contract of May, 1858, which came into operation in November of the same

year, provides for one intercolonial and one interprovincial service, to continue for ten years at a subsidy now reduced to £22,000 a year. The intercolonial service so provided will be maintained under the new contract, so as to complete the communication between Australia and Panama, by way of New Zealand. The monthly interprovincial service provided by the original contract will be supplemented by two other similar services to run according to routes and dates hereafter to be settled. The subsidy agreed to be paid for the whole service between Panama, Wellington, and Sydney is at the rate of £76,000 a year, of which amount £13,000 already represents the cost of the intercolonial part of the service. The subsidy agreed to be paid for the three interprovincial services, is at the rate of £15,000 a year, for a distance of 5000 miles per month; of this amount £9000 already represents the cost of one service. Excess of distance, if performed, is to be paid at a fixed rate of 5s per mile. The cost, therefore, of the new services, embracing the New Zealand and Panama monthly fine and two provincial services, is at the rate of £69,000 a year. The ground upon which I have deemed myself justified in entering into the present contract on the part of the colony is that a very great advantage is thereby secured at inconsiderable cost. Comparing the expenditure thus undertaken, with that at present imposed upon the colony in the maintenance of its mail steam service, and assuming that the opening of the communication with Great Britain by way of Panama will render unnecessary any contribution of consequence to the main line via Suez, or its branches,; the result is, I venture to submit, peculiarly satisfactory, as shewn by the following statement: — Existing Mail Steam Services. Contribution to Suez Line, about... £18,000 Melbourne and Otago Service ... 12,000 Second Intercolonial ... 7,000 Two Interprovincial ... 15,000 £52,000 Proposed Services. Panama and New Zealand services. £63,000 Three Interprovincial 15,000 £78.000

The apparent difference of £26,000 between the above totals is to be reduced by the amount of the ocean postage receivable in this country on mails by way of Panama, which by arrangement with H.M.'s Government is to be accounted for to the Colony. After allowing for certain expenses in the transit of the Isthmus of Panama, I am unable to estimate the net yearly revenue to arise from this service, even at the present low postage rates, at less than £10,000. It follows, therefore, that leaving a margin for expenses, arising from the possible conveyance of some correspondence by way of Suez and from other causes, the adoption of the Panama route will not be a real expense to New Zealand of above £20,000 a year, even if the whole subsidy should be defrayed by the colony alone. It has not, however, been overlooked that whether by the present or by the proposed route, the cost of postal subsidies will be a heavy burden on the colony, and should, if possible, be shared by others ; with this view I have deemed it prudent as well as just to make provision from the first, so far as possible, for the equal accommodation of the colony of New South Wales, which proffered its assistance from the earliest stages of the negociation; and I have no doubt that the expense of the undertaking will be shared in the same spirit in which a share of its advantages is offered. The other conditions of the new contract are principally the following: The voyage each way between Wellington and Panama is to be completed in thirty clear days under a penalty of £100 a day for delay, and with a bonus at the same rate for short time. Accommodation in to be given on board for a clerk and sorter of the Post-office, and a sorting room is to be provided free of charge. The boats are to be of not less than 1250 tons, builders measurement, and 250 horsepower. Three are to be ready at the beginning and a fourth Avithin nine months afterwards. j The contractors undertake to accept no subsidy from any other Government, or to carry any mails, but those which may be put on board by proper authority. They also enter into a bond for the due performance of the contract.

With regard to the time fixed for the commencement of the service, I am aware that so long a delay may be deemed objectionable, but it seemed highly inexpedient to commence the service with inferior boats, and therefore ample time has been given for the construction of vessels specially adapted to the work. Further, I observe that new contracts for intercolonial services have been or are about to be entered into to last during the year 1864, which will probably cost a considerable sum of money. It seemed prudent, therefore, on financial grounds, to postpone the commencement of the Panama contract.

"With respect to the intercolonial services to be abandoned, I have to observe that it seemed expedient to secure to the Government the power of so doing; but there is nothing to prevent their continuance if such be determined on.

The form of the contract is now being prepared by Mr. Ashurst, solicitor to H.M. Post office, and copies will, I trust, be ready for transmission by next mail. In conclusion, 1 have to state that the negociationsfor the present contract have been entered into with the desire of carrying into effect as fully as possible what seemed to ine to be the intentions of the General Assembly expressed in the session held last year. I trust that the result will be deemed satisfacto,T-

I have, &c., CuoHiiii! Ward. The Hon. Colonial Secretary, Auckland, New Zealand. v . No. 51. MR. WARD TO CHAIRMAN 1.1t.M. COMPANY. Killinchy, 27th November, 1863. My Lord, —I have the honour to acquaint you, for the information of the board of directors, that the Consul General for France has applied to me to know whether the Government of New Zealand are willing that the mail steamers between Panama and Wellington should call at Tahiti, and if so, on what conditions. I shall be obliged if the board will give this subject their earliest consideration, and inform 'me as soon as possible for what addition to the subsidy a call can be made at Tahiti, either (1) on the voyage each way, or (2) on the outward voyage only from Panama

to New Zealand, and the additional time that would be required in each case. The New Zealand Government will be glad to oblige the French Government by including Tahiti in the service if possible, and it will therefore be a satisfaction to them if the board can undertake the required addition to the service at a moderate cost and without any material loss of time on the voyage. I have, &c., Crosbie Wabd. The Right Hon. Lord Claud Hamilton, M.P., .fee. No. 52. MB. WABD TO CONSUL GENERAL FOB FRANCE. London, 4th December, 1863. Sir, —Referring to previous correspondence on the subject of the request of the French Government to know whether the steamers under contract with the New Zealand Government might call at Tahiti on the voyage each way between New Zealand and Panama, and to the interview which I had the honour to have with you on the subject, I beg to inform you that the question has been submitted for the consideration of the contractors. •They inform me that to call at Tahiti would involve a considerable departure from the proper course, especiallyon the eastward voyage from New Zealand to Panama, and that thereby a loss of time prejudicial to the interests of the Australian colonies would be incurred, which may be estimated at about three days on an average voyage. The additional mileage to be steamed would, of course, be an element in the calculation of the additional subsidy to be paid for the service,: while the delay spoken of might be obviated by the employment of a swifter class'of vessel, to the use of which an additional subsidy would also be required as an inducement.

So far, therefore, no obstacle exists to making Tahiti a port of call, but such as may be at once removed by the liberality of the French Government. But the contractors state, before they are prepared to name the amount for which they would perform the service asked for, they must be informed as to the navigation of the seas around and on the approach to Tahiti, from both east and west; and they desire also to obtain the most accurate information available as to the port and harbour of Tahiti, and the facilities which can be offered for coaling there. They have no doubt that these facts are fully in the possession of the Ministry of Marine of your Government, and they respectfully request that all such information may be supplied to them. In this request I beg to concur. I have, &c., Crosbie Ward. A. Mons. Fleury, Consul General for France, French Consulate, London. No. 53. 43, Chancery Lane, London, December 3, 1863. Sir, —When and where could you favour me with an interview relative to the contract with the Intercolonial Royal Mail Steam Packet Company for carriage of the Panama mail ? I am instructed by the directors that you will produce the documents proving your authority for entering into the contract. I have, &c., Robert Cunliffe. Crosbie Ward, Esq. No. 54. MR. WARD TO SECRETARY GENERAL, POST OFFICE. London, 4th December, 1863. Sir, —Having entered into a contract on behalf of the Government of New Zealand with the Intercolonial Royal Mail Steam Packet Company to perform a steam postal service between New Zealand and Panama, under which the compauy undertake to provide within a certain time a number of steam vessels to be employed on such service, of a size, speed, and general efficiency described in the contract, I have the honor to request that the Postmastex*-General will be pleased to permit any one of these vessels, or of those to be employed under the already existing contract, if tendered for this purpose by the company, to be inspected and surveyed according to the provisions of the contract in each case, iu the same manner as if they were submitted for the service of Her Majesty's Post Office. I have further to request that the result of each survey may be communicated to the Government of New Zealand, and also to the contractors, so far as may be necessary for them to remedy defects, or to supply deficiences.

The consent of the Postmaster-General to this request will confer a favour upon the Government of New Zealand, inasmuch as it will remove a great difficulty which would otherwise be experienced by them in properly surveying befoi'e acceptance vessels built in this country, but to be employed at the other side of the world.

Copies of the contract referred to will be forwarded to your department as soon as they are completed. I have, &c., Crosbie Ward. The Secretary, Geueral Post Office, St. Martin's le Grand. No. 55. MR. WARD TO MR. WORLEY. London, Bth December, 1863. My Dear Sir, —I send you herewith the time table which I propose as that for the Panama and New Zealand service. You will see that 1 have not been able to provide that the vessel should return from Panama immediately after her arrival there as you suggested. But you will observe the reasons for this at once. In the first place it would, I conceive, be exceedingly dangerous to risk the outward service upon the chance of the time of the homeward vessel being kept exactly, so that if the latter broke down, both must fail. To give fourteen days rest there is not at all more than enough to provide against contingencies and to give time for small repairs, and for coaling between two such long voyages. At the other end there is only a two days interval, or at most three; but this means simply that the service cannot be done with three boats, but must take four if it is to occupy 37 days each way. If on trial it does, as 1 hope, take less time, then without altering the Panama times, which are fixed by the West India Royal mail dates, you will be able in case of necessity to turn your vessel round on her heel in Sydney and send her back to Panama without docking, as the P. and 0. Compauy have sometimes been obliged to do. As there are two days in the month to go for Panama, it is desirable that that of departure should be at the fortnightly interval from that of arrival, for this reason, viz., that your mails must go through without delay;

bat if you innlte your hunt that is to carry the outward mail bring the homeward one for the name period of the month, then it must arrive a few days beforehand, and so establish a considerable break in the carriage of the homeward mail. For instance, a boat has to leave Panama on the 22nd, so she must arrive on the 19th at latest; but she carries the homeward mail, and thus has to await the Southampton boat's departure from Colon until the 24th. I don't think you you can ask me to agree to that. And if there is to be a spare boat, I assume that it would be at Sydney. But the strongest argument still remains. To take the other fortnightly date would be, as you will see, to make the outward mail arrive in Wellington on the 23rd, and the homeward mail leave on the 24th, thus practically using up a month in replies to letters. We must save a fortnight out of this, and the remainder will then just suffice for the delivery and collection of oar mails throughout the colony. At Sydney they will, under ordinary circumstances, have but two days for replies, but if this is not enough they will still profit by the alternation with the Suez route; from which we shall enjoy no benefit at all. In conclusion, you will observe that I have fixed the departure from Panama to New Zealand on the same day as that of arrival at Colon from Southampton. I am told that the West India KM. boats are excessively punctual, and the hour of their arrival is 6 a.m. on the day specified. Persons who have crossed the Isthmus tell me that no difficulty is experienced in making the arrivals and departures in one day. If it can be done, of course we ought to do it. But if, on reference to the Company mentioned, it is found unwise to fix this date, of course it can be altered, and at any rate your time will depend to some extent on theirs. . - Pray let me know your opinion on this point as soon as possible. I have, &c„ Crosbie Waed. James Worley, Esq., [Time-table Enclosed.] No. 56.

ME. WOULEY TO MR. WARD. 41, Moorgate street, Dec. 10,1863. My Dear Sir, —I had the pleasure to receive in due course your favour of the Bth instant, the contents of which 1 carefully note.

As you agreed to accept only three vessels for the performance of the Panama service for the first year, it was assumed that it

would be arranged in such a way as not to necessitate the employment of a larger fleet; but I have all along seen that it could only be done by making the return boat leave Sydney three or four days earlier than would be otherwise necessary in order to reach Panama—not later than the 19th of the month; and by fixing the date of departure from the Isthmus for the 24th or 25th, an arrangement which beyond doubt would be regarded with disfavour by the colonists.

If the service is worked in the manner you suggest, it will be requisite for us to I provide the fourth boat by March or April, 1865, instead of at the end of the year as at first proposed. I believe, however, there will be no difficulty in our doing this, as the Board are fully alive to the importance of making the service thoroughly efficient in all respects. With regard to the dates named for the arrivals at and departures from Panama, my opinion is that at least 36 hours should be allowed for the transhipment of mails and cargo, &c., and the journey across the Isthmus ; in fact, I can hardly see how it would be possible to do it always in that time, unless the quantity of cargo is very small indeed. The P. and 0. Company are allowed 48 hours at Suez and Alexandria, and that would not be any too long for our boats. It is true the distance between these two places is greater than that between Colon and Panama; but when goods are once on the rail, it is almost as easy to convey them 100 miles as 40. On the other hand, I see full well that the effect of such an arrangement would be to deprive Sydney of the opportunity of sending replies via Panama to letters received by that route, as the date of departure would be about the 30th, whereas that of arrival would be the Ist or 2nd. But I think this difficulty would eventually be got over, as there is every reason to expect that the ships we intend to furnish will traverse the distance between New Zealand and Panama iu 28 days instead of 30, and probably the stay at Wellington may be made only 24 hours in lieu of 48.

Oil a careful review of all the circumstances, it occurs to me that the best thing to do will be to leave the adjustment of the timetables until your return to the colonies, when the matter can be settled with Captain Vine Hall. The delay, I apprehend, would not be of consequence, and it would afford ample time for consideration of the points in question.

I have, &c., James Worley. Crosbie Ward, Esq. No. 57. MK. WORLEY TO MB. WARD. My Dear Sir, —Since writing to you this morning I have ascertained from the Royal Mail Company that under their new contract the mail packets will arrive at Colon on the I 9th and 24th of the mouth, instead of the 7th and 22nd, and leave on the 7th and 22nd instead of on the 9th and 24th—that is to say, the old plan is reversed. This entirely alters the case, aud I am not sure now that the service will require more than three boats the first five or six months. However, I still think ifc will be best to leave the time-tables for arrangement iu the colonies. Mr. Reep fully concurs in the opinion that there should be an interval of 48 hours between the arrival of the Southampton boat at Colon aud the departure of our vessel from Panama. I have, &c„ James Worley. Crosbie Ward, Esq. No. 58. CASE SUBMITTED TO COUNSEL. Exparte. — The Intercolonial Eoyal Mail Steam Packet Company, Limited, in the matter of the Panama contract. Counsel is referred to the accompanying Act of Parliament of New Zealand, 21 and 22 Yic., No. 16, Sec. 15, and to the Act of Parliament 26th Yic., No. 15, Sep. 2, and to the accompanping copy despatch from the Governor of New Zealand to the Duke of Newcastle, and the copy minute accompanying it; and he is requested to advise the Intercolonial Royal Mail Steam Packet Corn-

pany whether or not, in his opinion, Mr. Crosbie Ward, the Postmaster-General of New Zealand, is authorised to enter into a contract which will bind the New Zealand Government for the carriage of mails between that colony and Panama with the yearly subsidy of £03,000. A contract for this purpose is now being prepared by the Post-Office authorities here. The company are anxious to enter into it, and if the Postmaster-General has authority to bind his Government, his signature will of course be sufficient; but if not the ratification of the Government of the colony must be obtained. Mr. Ward contends that the Act of 1862 is merely permissive, and that he as Post-master-General, has power to enter into, a contract for the carriage of the mails, quite irrespective of that Act. OPINION. I think that Mr. Crosbie Ward, the Postmaster - G-eneral of New Zealand, is not empowered to enter into the contract in question on the behalf of the New Zealand Government. I think section 15 of the New Zealand Post-Office Act, 1858, 21 and 22 Vict., No. 15, does not confer upon him the power to enter into the contract, although that section in terms authorises the Postmaster to enter into contracts for the carriage and conveyance of mails by sea and land. The General Assembly of New Zealand, under the Colonial Inland Posts Act, 12 tod 13 Vic., c. 66, had no power to authorise their Postmaster to enter into contracts for the conveyance of mails beyond the limits of ttife colony ; nor does the 15 and 16 Victoria, ,p. 72, under which a representative constitution was granted to the colony, confer any such power. That power belongs exclusively to the British Government by virtue of the 7 and 8 Vict., c. 49, and 11 and i 2 Vict,, c. 66, and upon principles of public policy I think the power conferred by the New Zealand Act can only be legally exercised with.respecttp contracts for the conveyance of mails on the continent of the colony, or on the seas between the different islands. I think that Mr. Crosbie Ward has no authority to enter into the contract in qiiestion under the provision contained in the ?nd section of the New Zealand Act of 1862, The power conferred by. that Act to make arrangements with the British Government for the conveyance of the mails by the particular route is specially delegated by the New Zealand' Legislature to the Governor in Council. By the New Zealand Interpretation Act, 1858, section 9, the term " Governor in Council" is defined to mean " the Governor with the advice and consent of the Executive Council of New Zealand." Besides, the proposed contract exceeds in amount the authorised limit specified in the local statute ; I apprehend that a contract exceeding the authorised amount would be extra ■vires, and therefore not enforceable. E. A. Fisheb. Temple, 11th December, 1863.

HANTS ON SCHLESWIG-HOLSTEIN. * (From Punch.') ' What o' voreign complications, ' If I knows what that word manes, ; Most upsets a feller's patience, > Is the Germans and the Danes, p Southern hotheads slays their brothers, ■ Why ? For 'tis their nature to; But I did think them there others Too fur north the like to do. Wuss than French Mossoos, or Spanish, _ Mad on glory and eeclaa, ; Here's the Germans wi' the Danish Gone to war about a straa! If their word is to be taken, If their faith ben'fc all my eye, Gammon zummut else nor bacon? 1 If so be as they doan't lie. This here Schleswig-Holstein rumpus Han't bin brought about by much, All, for aught as I can compass, Speakin Danish for High Dutch. Here's a precious cause for battle, If no more but what they owns, Slaughtev'n Christians wuss than cattle, Craclcun heads and breakun bones ! Fancy in Zouthampton Water, Siiips a batter'n of the town, Or a scene o' blood and slaughter Acted out on Twyford Down, All because the law's decided, And the sarvis zaid or sung In fine English, not provided In the native Hampshire tongue ! Yaa! if that was all the niatter, 'Twould ha' zoon bin zet to rights; 'Tain't about a pint o' patter As the Danes and Germans fight. Them there Germans has intentions Of another sart and kind From the purpose which they mentions; Motives what they keeps behind. Schleswig-Holstein when to sever They designs from Denmark's State, Their true object and endeavour Is a navy to create. Don't you credit their profession I Their design is for to steal, And thereby to take possession Of that Baltic harbour, Keil. Let 'uni bide; they're in a hobble, Zaxons, Austrians, Proosians, Croats; Mongst theirselves they're like to squabble; Let 'am cut ach others' droats, Whilst Italians and Hungarians For their liberty combine, And the Vrench, on them barbarians, Pushes vorrards to the Rhine. An Abolition Regiment.—The Eighth Illinois Voluntary Infantry, known as the " Big Abolition," has been in service two years and a half, and during this time has killed, where they alone were engaged, 330 rebels, wounded 1125, and captured 1352—total 2807. This is the result of more than 80 engagements, forays, and sconting expeditions, to inflict which cost the Bth Illinois nearly 600 men, who fell in battle, or were lost to the regiment by disease. An Illinois Pkeachuk.—No long since I received a call from a popular preacher. During the week he works at waggons. When he prepares his sermons Ido not know. He always has large congregations. I have always taken him to be a harmless, inoffensive man. I have felt a little bitter I towards liini for some time, because, in fitting a couple of waggon-wheels for me, he used such poor timber, which was rails, and made such loose joints that, under a moderate load, one wheel broke down, and the other is likely to give way at any time. However, the ten dollars I paid him must be considered so much in support of the Gospel, though most of it was in coffee. It was Saturday afternoon and I saw at a glance that it was a particular visit,, for the bosom and collar of his shirt had more blueing in them than for every-day . wear. It is likely that he called because 1 went to hear him preach the: previous Sunday. On that occasion his text was from 2nd Samuel, 22nd chapter, 34th verse," He maketh my feet like hinds' feet, and setteth me in high places." As he could not read very well, he had mistaken " hinds " for " liens," autl upon his reading, he built his discourse, going on to show that as the feet of hens are made to hold fast to a stick or to a branch of .a tree, they sleep securely, while without such feet they would fall off. So it was in Christian life, the feet are faith, the branch is the promises which are taken hold of, and by this means the Christian is, according to the word, "set up in high places;" and though the rain may fall, and ; the wind may blow, he is safe. For more tlian half an hour lie enlarged on the text in this manner, while his hearers wondered at his ability to explain the Scriptures.