SAN FRANCISCO MAIL SERVICE (FURTHER PAPERS RELATIVE TO). [In continuation of Papers presented on the 28th of May, 1880.]

Appendix to the Journals of the House of Representatives, 1880 Session I, F-02a

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SAN FRANCISCO MAIL SERVICE (FURTHER PAPERS RELATIVE TO). [In continuation of Papers presented on the 28th of May, 1880.]

Presented to loth Houses of the General Assembly by command of His Excellency.

No. 1. Mr. R. J. Creightojt to Mr. Gray. ;.Sir, — San Francisco, May 8, 1880. I have the honor to state, in reference to the correspondence on the overland freight charges, that I am more convinced than ever before that the United States Government will take a liberal view ■of the matter, and assist the contracting colonies to carry out their contract engagements, and continue the mail service to Europe via San Francisco. 2. Since last mail I have had an interview, by arrangement, with Mr. Towne, Superintendent; of the Central Pacific Railroad, E. H. Miller, Secretary, together with the general freight agent, and other gentlemen connected with the institution. They were most anxious to meet my views in every way, but were tied up hand and foot with Congressional legislation. If it had been a plain matter of business I should have had no difficulty whatever with them ; but it is not. It involves the most delicate, and at the same time, the most important question of public policy in the United States, namely, the relation of the great transportation companies to the Commonwealth, complicated further by the relation of the great subsidised trunk lines towards the Government, arising out of outstanding bonds, interest, and conflicting legislation. 3. Of course it was not to be expected that the Executive officers of a subsidised Corporation, whose annual revenue exceeds £1,000,000 (pounds sterling net), should make concessions in any way breaking down a contract entered into by the U.S. Government with a foreign power for the use of their road, whether it was profitable or otherwise to them, but they were willing to discuss it as a business proposition, and expressed themselves anxious to meet my views in the matter. And here I have to express my sincere thankfulness for the very comprehensive and suggestive discussion of the whole question by the railroad officials, and I acknowledge in this place their valuable suggestions. 4. Our interview resulted in a general understanding regarding freights, which may be shortly -stated. In brief, it was this :—That rather than see the Australian and New Zealand mail break down they would aid me in making a separate agreement with a Transportation Company to carry our mail across the Continent, at rates greatly under those charged by the U.S. Government, under the . agreement between Sir E. Thornton and Hon. Mr. Tyner; that I was to apply to the British and American Postal Departments to ascertain how far we were bound by the International Postal Convention, and the agreement referred to, to transfer our mails in the regular U.S. mail railroad car; that upon ascertaining this fact I was to meet them again, when the special service would be arranged on terms advantageous to the Colonies. It was further understood that in this matter I was acting independently. I could see no other way out of the difficulty, the Railroad Company being tied up by Congressional legislation on the one hand, and the Colonies being tied up by a castiron rule of action by Great Britain •on the other. 5. I discussed the matter thoroughly, and arrived at a clear and intelligent understanding, and thereupon wrote the letters following, namely, one to Sir Julius Vocel, Agent-General of New Zealand, in London, and one to the Hon. Mr. Money, Chairman of the House Committee, on Post Offices and Post roads. I have not received any reply from Sir Julius, but Mr. Money has replied to me, by Congressional action, through the Hon. Horace Davis, representing San Francisco in Congress. 6. In a telegram from Washington, dated 4th May, which was published in the San Francisco papers, the following appeared :■ — " TIIK AUSTRALIAN SUBSIDIES. " Representative Horace Davis has prepared an amendment which he will offer to the pending Post Office Appropriation Bill, providing authority for the Postmaster-General to remit in favor of the Colonies ■of New Zealand and New South Wales so much of the overland transportation of their mails as he may I—F. 2a.

1880. NEW ZEALAND.

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deem just. The importance of this matter as beaiing on. the threatened withdrawal of Colonial subsidies from the San Francisco and Australian Steamship Line has heretofore been explained." This encouraged me to hope that the line of policy originally outlined my me would be followed, and that the question would be made purely one of domestic politics. I had anticipated this point, as you will perceive, in my letter to Mr. Money, and enforced it further, in writing, to Mr. Davis. On the 7th, the following was telegraphed from Washington, showing that the matter was made one of urgency, viz. :—. " THE AUSTRALIAN MAIL ROUTES. " During the consideration of the Postal Appropriation Bill, 6th May, Horace Davis procured the adoption of his amendment authorising the remission of the heavy extra charges for the trans-continental carrying of the Australian mails, by making a brief off-hand speech, in which he stated the argument in support of his proposition with such clearness, force, and earnestness, that when he took his seat not a single objection was made, although any one might have interposed a fatal point of order, and the amendment was agreed to unanimously. It will, therefore, remain in the Bill, unless the Senate should strike it out, of which there is no probability." 7. The next day the following was telegraphed from Washington :—> " HOUSE. "Consideration of the Post Office Appropriation Bill was resumed at 10.30 o'clock. Cannon opposed the amendment adopted by the Committee of the Whole, yesterday, authorising the PostmasterGeneral to remit, in favor of the Colonies of New Zealand and New South Wales, so much of the cost of the overland transportation of Australian closed mails as he may deem just. This amendment would enable the Postmaster-General to exercise discretion in letting mails for England pass through the United States without charge against the Government of Great Britain. " The House then voted on the amendments. The first amendment, on which a separate vote was demanded, was that authorizing the Postmaster-General to use 350,000 dol. of the 949,000 dol. appropriated for railway mail service, from railways necessary, and special facilities for postal service. Adopted—yeas, 110; noes, 66. " The next amendment was that all star routes should be relet after thirty days advertisement, as now provided by law, on the Ist of October, 1880, on which pay for the expedition of schedules, ordered during the fiscal years of 1876-80, shall exceed 50 per cent, of the contract price before such expedition;, provided that this proviso shall not prevail when the present contractor desires to continue the contract as reduced. Adopted—llB to 57. " The other amendments were then agreed to, but before a vote could be taken on the Bill the legislation of Thursday ended, and that of Friday began." It therefore appears that one member only spoke against the amendment affecting the Australian mail, and he had no vote, being a territorial delegate with the right of speech alone. His status may be gauged by the following editorial comment in the San Francisco Evening Post, Bth May : — "The only man in Congress who objected to the concession in favor of the Australian and New Zealand mail, in the interest of American commerce, was Cannon, the many wived English delegate from Utah. This fellow should not be admitted within the halls of Congress, and those who know his history best aver that lie has not even been naturalised." 8. Upon reading the intimation that the Hon. Horace Davis contemplated taking Congressional action in the matter, I wrote an article, which appeared in the Evening Post, of the 7th instant, reviewing the whole question, copies of which I have distributed where they would, in my judgment, be most beneficial. I append a copy. Next day, on ascertaining that action had been taken, I forwarded the following telegram : — "the western union telegraph company. " San Francisco, May 7th, 1879. " To Hon. Horace Davis, House Representatives, Washington, D.C. " Accept thanks your invaluable services Australian mail. Letter containing new facts posted. What prospect final passage Bill 1 Reply paid. " Robt. J. Creighton." 9. At this writing I have not received any reply to my telegram, but should the Bill pass in its present form I will telegraph to you on the arrival of the next steamer. You will perceive that the position is this : The Postmaster-General, in his discretion, may remit all transit charges, and this is what I am pushing for. I have no doubt he will do so if I can guarantee the permanence of the service. This, of course, is essential. Indeed, I think it is due to this country, which has taken a step in this matter entirely out of the ordinary course of legislation. Congress has been moved to set aside, not only a solemn agreement between the governments of Great Britain and the United States, but also an agreement which adds largely to the United States revenue, under sanction of the International Postal Convention, which the following extract shows :— Page 509, Annual Report of the Postmaster-General, Jan. 1880. " TRANSCONTINENTAL AND AUSTRALIAN MAILS. " For several years this department has carried across this continent, between New York and San. Francisco, a heavy British and Australian Mail, at an annual cost of about 190,000 dols., for which no return has been received from Great Britain until the month of August, 1876, when, under the excejrtional provision made in the Treaty of Berne for their lengthy and expensive railway service, special, rates of territorial transit were agreed upon between this department and the British Post Office, which were considered sufficient to cover the actual cost; of the railway transportation across our Continent. " Through the efforts of the efficient representative of this department the International Postal Congress, held at Paris in the spring of 1878, the exceptional character of the service rendered by this

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department in transporting the closed mails between New Zealand and San Francisco was re-affirmed in the Convention of Paris, and the British Government has already paid into the United States Treasury the actual cost of doing the work, which to this time amounts to something over a quarter of a million dollars. While this service does not appear as a credit to the item of the railroad transportation, it is such in fact. 10. In this connection I have to request that full powers be sent to me to conclude an agreement with the United States Government for the transit of these mails, and that you allow me discretionary powers with certain limitations which you will be good enough to prescribe. If necessary, I have to ask you to telegraph by cable plenary powers, trusting to my discretion. I ask this, first, because delays are dangerous in the shifting sands of American politics ; and, second, that having initiated and carried through the whole negotiation at great labour, trouble, loss of time and money, and having expended not a little thought upon it, I naturally desire to conclude it. 11. Referring to the proposal to have the mail transported across the continent by private agencies, I have simply to remark that it "would be undertaken by Wells, Fargo & Co., who stand ahead of the world as a forwarding company, and whose letter delivery service is superior on the entire Pacific Slope to that of the United States Post Office. A special commission of the heads of the Post Office Department recently recommended its abolishment, because the Post Office was able now to supply its place, which in point of fact is untrue. This proposal has been opposed throughout the Pacific Slope, which includes all territory west of the Rocky Mountains, and the following abstract o± recent action in Congress will explain what has taken place regarding it here and elsewhere. A Washington telegram, May 4, says :—■ " WELLS, FARGO AND CO.'s LETTER SERVICE. " Representative Page and John J. Valentino appeared before the Postmaster-General and a Com mission of Department officials to-day, and argued against the proposed discontinuance of Wells, Fargo & Co.'s letter-carrying service. Page presented memorials signed by 50,000 citizens of the Pacific States, and resolutions of the California Legislature, San Francisco Produce and Stock Exchanges, and New York and San Francisco Chambers of Commerce, all protesting against the threatened suppression of the Company's letter-carrying facilities; and Page then proceeded to read a carefully prepared and strongly framed argument, which appeared to be absolutely unanswerable. One of his points was, that there is really no law in existence authorising, or in any way justifying, such an interference with this business as the Department Commission have advised. This position will, of course, be strenuously assailed by them, but, aside from the question of legal authority, the arguments offered by Page, as to the wisdom, justice or expediency of depriving the public of this express company's facilities were complete in themselves, and it is confidently hoped will prove sufficient to determine Judge Key's judgment." Every newspaper on the Slope, every banker, merchant, and mining operator on the coast, desires the continuance of their letter service, and so perfect is their express system, that men send coin, bullion, &c, by it in preference to sending their property as " third class matter" by the United States Post. I always bring fish ova and all perishable goods by their agency. If any question as to the perfect reliability of this agency arose, Mr. Warburton, your mail agent, I think, can answer as to its general imputation. However, I think the bare proposition to undertake the service independent of the Post Office, contained in my letter to Mr. Money, has induced prompt action by Congress to give the Postal Department discretionary powers. But should the Postmaster-General not make the concession expected of him, 1 have further to request that you transmit to me discretionary powers in this matter, separate and distinct from those relating to the United States Post Office. The practical necessity for this will doubtless suggest itself to you. I think you may rely upon my discretion. 12. Should it be necessary, in my judgment, to go to Washington, I shall do so, although my private affairs render it desirable for the present that I should remain in this city. 13. In the annexed correspondence you will have a fuller explanation of points to which I have only referred in this letter. I have, &c, Robt. J. Creighton, Resident Agent New Zealand Government. P.S.—Upon my return home late, I found the accompanying telegram waiting me from the Hon. Horace Davis, which is entirely satisfactory :—■ R. J. C., May 9, 1880. " From Washington, D.C., to R. J. Creighton. "San Francisco, May 8, 1880, 7 p.m., " 24th Street, 3 Doors East of Howard. " Yesterday Bill passed House. Senator Booth thinks will be no trouble in Senate. Wm. Gray, Esq., Secretary, "Horace Davis." Post Office, New Zealand.

Enclosure an No. 1. Mr. E. J. Ceeighton to Sir Julius Vogel. Sir, — San Francisco, California, April 19, 1880. • Referring to my previous letter, relative to the cost of transmitting the enclosed British and Australasian mail across the American continent, I have the honor to state that I have had several conferences with gentlemen engaged in the transportation business, and am in a position to undertake that the mails "will be forwarded in precisely the same time,':upon the same trains, with as great security, and as little risk from accident as if they were in charge of the United States Railroad Postal Agent, for half the sum now charged under the agreement between Postmaster-General Tyner and Sir Edward Thornton, Her Britannic Majesty's Minister at Washington.

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2. Before any steps can be taken in this direction with the view of giving it effect, it is necessary to understand precisely the nature of the obligations of the contracting colonies to tiie British and United States Postal Departments under the Postal Union, by virtue of which authority is given the latter Department to exact the special rate in question. [See Annual Report of the United States PostmasterGeneral, 1880, page 109.] 3. Can the Governments of New Zealand and New South Wales notify the English PostmasterGeneral that their agent will receive the enclosed British mails for the colonies at New York, and transmit them at their own charge across the continent, delivering them on board the subsidized mail steamship at San Francisco; undertaking a similar service for the mails between San Francisco and New York ? If not, what modification is it possible to make to relieve the colonies from an unjust and extortionate charge, by the authority of a Postal Convention at which they were without representation ? 4. If the British Post-office Department would undertake to deliver the outward mail to the postoffice of New York, it could be so arranged, I have no doubt, with the Poat-oflice Department of the United States, that no delay would occur in transferring it to the transportation company contracting for its carriage across the continent; but I am inclined to think that this would be unnecessary, as the transportation company would be prepared to receive it upon arrival at New York, and deliver it on board the steamer, as is now done by the post-office authorities. A similar service would be undertaken in San Francisco. 5. As a precautionary measure, it might be desirable to have the mail agents cross the continent in ■charge, and return with the outward mails ; but this is a matter of detail which might be safely left for discussion when the major proposition had been settled. 6. My reason for writing to you upon this point is two-fold. First, the information I ask for is the point of the question as it has been recently presented by the Hon. "VV. Key, Postmaster-General of the United States, and is required by the transportation companies before proceeding further in the matter ; second, I cannot obtain it authoritatively in this country, where the utmost reluctance is manifested in. certain quarters to come to particulars, and as time is of importance, I decided to write to you in. anticipation of a similar i-equest to be preferred by the New Zealand Government. I may say that in this matter I am acting under the sanction and by the advice of the Government, from which I have full instructions. 7. Owing to the fact that the existing arrangement was completed by Sir Edward Thornton on behalf of the British Post-office Department with the United States Government, it is neither prudent nor possible to impugn it through the ordinary official channels. I have therefore presented it as an. American question, involving large considerations of trade and commerce, as well as upon the ground of postal reciprocity. On these grounds I have presented it to Congressmen, and I have a letter from the Hon. H. D. Money, Chairman of the House Committee on Post-office and Post-roads, in which he sa}'s, after detailing the steps taken by him to procure a satisfactory reply to my memorandum, —" When the contract under which the mails are carried from San Francisco to Sydney, &c, expires (1883) I think the United States will be prepared to join the British colonies in fair compensation to the steamship company for mail transportation." Mr. Money also enclosed a long letter from the Hon. the PostmasterGeneral, in which, after reciting the facts, and stating that the sum charged did not exceed the payments "to the railroad companies for mail transportation, he said, —" I would further observe that no complaint has been made to this Department by the British Post-office or by the Post Department of New Zealand, New South Wales, or other Australian colonies respecting the transit charges on these mails; and that the memorandum of Mr. Creighton, agent of the New Zealand Government at San Francisco, gives the first intimation that these charges are regarded as excessive; or that they will, if maintained, have the effect of transferring the British and Australian mail service, passenger travel and traffic, from the American route, vid San Francisco to the Eastern route via Brindisi and Suez. If, as represented in Mr. Creighton's memorandum, there is a probability of such a result at the termination of the existing contract between the Governments of New Zealand and New South Wales and the Pacific Mail Steamship Company for the conveyance of mails between San Francisco and the Australian Colonies via, Honolulu, which contract will expire on the 15th November, 1883, it is a question exclusively for Congress to determine what aid, if any, should be extended by the Government towards maintaining regular steamer ■communication with the Australian Colonies—whether it takss the form of appropriations from the Treasury, or that of waiving all charges for the territorial transit on the closed mails transported vid New York and San Francisco. If the railway companies interested in the transportation of these mails, as well as in the maintenance, without interruption of the existing line of communication and ti-avel between Great Britain and the Australian Colonies vid San Francisco, will agree to transport the English and Australian closed mails free of cost, or at reduced compensation, such sum. only as they may agree to acsept for this service will be claimed of the British Post Office by this Department in lieu of the rates of transit now established ; and I shall be glad at any time to confer with the managers of the ■companies interested in the matter, with the view of securing reduced rates of railway transportation between New York and San Francisco." 8. In consequence of this intimation I have had the interviews referred to, and I am convinced that nothing can be done except in the way I suggest. There is such a conflict of interest and policy between the great railroad corporations and the United States Government, that a conference looking to any concession by the former to the latter is simply out of the question. It is a different matter altogether presented from the Colonial stand-point, and as victims of the joint cupidity of St. Martins le Grand and Washington. Moreover, the object can only be reached at and through this end, unless the United States Government relaxes its demand, which is not likety, inasmuch as the Postmaster-General bases it upon the grounds of law and revenue. 9. I trust I have made the point clear, and put you in full possession of the situation. If the course I have indicated can be carried out we need not wait until 1883 for a saving in postal charges ; and within a few months all possible pretence of right for service rendered or payments made by the British

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Post Office for the contracting colonies, on account of the American section of the service would disappear, and the colonies could demand restitution of their withheld postages. 10. Your reply at the earliest possible date would be esteemed a favour. I need hardly say that so far I have acted solely on behalf of New Zealand, and that there are urgent reasons, at the present stage, why this matter should not be made public. I have, &c, Sir Julius Vogel, K.C.M.G., Rort. J. Ceeighton, Agent-General for New Zealand, London. Agent New Zealand Government.

Enclosure 2 in No. 1. Mr. R. J. Creighton to the Hon. Mr. Money. Dear Sir,— San Francisco, April 25th, 1880. I have pleasure in acknowledging the receipt of your letter of 21st ultimo, together with inclosure of the Hon. Mr. Key's letter, for which accept my thanks. I would have written in acknowledgement earlier, but waited for advices from the colony before doing so. 2. I have transmitted copies of your correspondence to the New Zealand Government, and I am satisfied that they will feel as I do the very great obligation the contracting colonies are under to you for your friendly action in this matter. 3. I regret exceedingly that the Hon. Postmaster-General does not see his way to recommend a remission of the transit charges, because this action by the U.S. Government would go far towards increasing the commercial relations already subsisting between Australasia (including New Zealand) and the United States. Conditions have arisen out of this ni'ail business which would render a display of generosity by this Government of exceeding great value in this direction, the dissatisfaction, with the dictatorial attitude of the British Post Office Departments becoming marked, as I learn from my Colonial letters ; but, if nothing is done, of course the golden opportunity may pass. And despite the statements by the Post Office Departments in Washington, I am satisfied that the concession would cost the Treasury an insignificant sum. I say this, because I have taken steps to ascertain the payments by the Department to the Railroad Companies. Taking the weight of the British enclosed mails for the month of March last as an average of the year (although considerably over the past average), the Central Pacific Railroad for its 883 miles of services would receive $11,500, without deducting 15 per cent, per annum for interest on account of subsidized roads—say $12,000 per annum—upon the scale of payments for the transportation of domestic mails, which the Hon. Postmaster-General states, is the scale adopted for the British enclosed mails. Now, taking this section as one-fourth the distance between San Francisco and New York, the actual payment for railroad freight on the British enclosed mails to and from England and the Australian Colonies would be $48,000, not $75,000 odd which the United States Post Office Department receives under agreement with Great Britain (Vide Annual Report of the Postmaster-General, pages 509-10). Upon investigation, I think it will be found that the actual payments upon this account to the Railroad Companies concerned do not exceed in the aggregate $40,000 a-year. But as it may be difficult to get the exact figures, I suppose the departmental statement, vague and general as it is, must be accepted as we find it. The difficulty is, that the British enclosed mail is not weighed separately, but is taken to account with the domestic mail. As, however, the question has become pressing, owing to the charges made by the British Government against the Colonies, it has occurred to me whether I could not arrange for the transport of the enclosed mails across the Continent without putting the United States Government to any expense beyond the receiving of them in New York, from the Transportation Agent, and forwarding the home-bound mail in regular course to England, delivering the outward-bound mail to the Transportation Agent, or a representative of the Contracting Colonies in New York, as might be determined on. 4. The only expense your Government would be put to, were this arrangement perfected, would be overhauling the mails at New York, where the facilities are so great as to render it a work of trivial importance. I believe I can make the arrangements for doing the work at about half the sum now charged ; and although I do not think it politic or economical even in a great Government like the United States, to compel two small dependencies of the United Kingdom to make special contracts of this nature, for the sole purpose of maintaining commercial and postal relations with this country against the declared policy of Great Britain; nevertheless something of the kind must be done, or the service probably will not continue until the expiration of the existing contract in 1883. This I gather from my official letters from New Zealand. When I inform you that at least 10,000 letters, originating in the United States, are carried free to New Zealand and Australia every year by the colonially subsidized ■steamers, a corresponding number being received in reply, to say nothing of printed matter, samples, <fee. ; and the Honolulu Mail, the importance of the service to this country, must be apparent and entitled to be placed upon the footing of a domestic service. 5. The " City of New York " just airived ; brought over 300 passengers, of whom the vast proportion were from the Colonies, nearly 200 being cabin passengers. This fact illustrates the importance of the passenger travel to the commercial and manufacturing interests of the United States. 6. Might I trouble you, therefore, to see the Postmaster-General, and ascertain how far he is prepared to co-operate in this matter, or whether it would be necessary to arrange for the through service without reference to the United States Post Office Department. From the tone of the Hon. Mr. Key's letter, I am encouraged to prefer this request through you, and perhaps you might, if you deemed it advisable, ask the Hon. Horace Davis and Senator Booth to accompany you. The interest you have taken in this matter emboldens me to prefer this request to you. Furthermore, would it be necessary to give any formal notice to your Government before taking action in the direction named. 7. It is, I know, a delicate position, owing to the existing contract with Great Britain; but as this 2—F2a.

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contract was made without consulting the Colonies which pay the charge, although they have separate postal treaties with the United States, I think that your Government should feel no embarrassment in "withdrawing from a contract which must injuriously effect the commerce of the nation. On the other hand, I am precluded from making formal application through the British Minister at Washington, as the peculiar relations of the Colonial Governments to the Government of Great Britain render such a course inadvisable. The Colonies, although self-governing in their internal affairs, cannot treat direct with Foreign Powers. The Mother country manages this for them. And when, as in the present case,, its policy is to break down direct Foreign connection and intercourse, you will readily perceive how hopeless it would be for the Colonial Government to endeavour to reverse that policy through thediplomatic representative of the British Government. 8. For this reason I have treated this question solely as an American one, and now, as we have been driven to the last ditch, I am anxious to try and preserve the service by obtaining a very slight concession indeed, the granting of which would in no way compromise the relations of your Government to the Government of the United Kingdom. It would simply involve a notification from the Hon. Postmaster-General that, as the British enclosed mails no longer involved any outlay by the United States Government, the payments for transit charges under the agreement entered into on behalf of their respective Governments, by His Excellency Sir E. Thornton and the Hon. Mr. Tyner, would not hereafter be demanded. 9. Awaiting your reply, and again thanking you most sincerely for the very great trouble and pains you have taken in the matter. I have, &c, Robt. J. Creighton, Resident Agent New Zealand Government. P.S.—The mail is advertised to sail on May Bth, and, if it were possible, I would like a reply by that date, or the 10th, which is the more probable date of departure. The Hon. H. D. Money, Chairman Postal Committee, R. J. C. House Representatives, Washington, D.C.

Enclosure 3 in No. 1. Mr. R, J. Creighton to the Hon. Horace Davis. Dear Sir, —. San Francisco, sth. May, 1880. I read with great pleasure to-day that yon had prepared an amendment to the Postal Appropriation Bill, enabling the Postmaster-General to make such concessions to the Colonies of New Zealand and Now South Wales in the matter of freight and charges upon British enclosed mails across this Continent as, in his discretion, may "be advisable. I sincerely trust that you may succeed in carrying it, and that a liberal view of the question may be taken by the United States Postal Department. 2. I beg to enclose, for your information, copy of an article I prepared for publication, and which, "will appear in to morrow's Evening Post. I take occasion to contrast in it the Australian trade now in its infancy, with the China trade, which has been stimulated by subsidies and encouraged by a Very large expenditure of capital. The results, as you will readily perceive, are startling, and lam convinced that the exhibits for 1879 and 1880 will show a progressive increase. And here I take leave to state that the interest of American trade and manufactures lies in promoting intercourse between New South Wales and New Zealand by reason of their favorable tariff, and more friendly feeling towards this country;. and whereas Melbourne, which is being bolstered in every way by the mother country, has a strictly protective tariff, and has never exhibited any friendly feelings towards the United States. 3. On the 25th ultimo I wrote to the Hon. Mr. Money, requesting him to inquire whether theUnited States Post Office Department would aid the contracting colonies to get rid of the charges imposed upon them by the British Government, owing to the agresments between the two countries, and which appears to be the bar to any direct action by your Government. I requested him to consult with you and Senator Booth, if he deemed it advisable. In brief, I believ* lam able to arrange with transportation companies to carry our enclosed mails across the continent at half the rates paid by the United States Post Office by the British Government, and I want to know whether your postal authorities would assist by active co-operation as a measure of compromise. lam aware that this is in itself a most unsatisfactory proposal, and anticipate strong opposition on the part of Great Britain ; but I do not at present see how otherwise to bring the London Postal Department to reason, unless by the more dignified course contemplated in your proposed amendments. 4/ I have carefully perused the Hon. Mr. Key's letter to Mr. Money, and noted with satisfaction his offer, on behalf of the Department, to accept only such sum from the British Government, on account of this service, as is actually paid to the railroad companies. In consequence, of that intimation, I had interviews with the General Superintendent and Secretary of the Central Pacific Railroad, who, while anxious to promote the objects I had in view, could not promise any relief. Taking the actual weights, in and out, of the March mail, and estimating it on the scale of payments heretofore made by the Department to the railroad for the domestic mail (of which, in the accounting of the Department to the railroad, it forms a part), the Central Pacific would receive about $10,000 per annum net,the Government deducting 15 per cent, under the law affecting subsidized roads. I therefore calculate that from $40,000 to $50,000 per annum is the actual payment for this service, a sum far too inconsiderable in itself toimperilthe growing trade between this country and Australia. Were it $125,000 a-year, I respectfully submit that the sum might very well be borne on the Post Office appropriations, in consideration of the commercial and other advantages conferred upon this country by the direct Australian mail communication via San Francisco.

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5. You will readily understand why the contracting colonies made no formal demand through the British Government for a reconsideration of this question. Their relations to the Mother Country are of such a nature that any move of that kind would bring them into direct conflict, and being mere dependencies, they cannot act independently. Moreover, their policy in this particular is in direct conflict with Imperial policy, and it is therefore essential to success that it should be treated by the American Government as a matter of domestic policy, without reference to Great Britain. The contracting colonies have subsidized an American line of steamers, and carry the American mail, opening new markets for American manufactures, and it is in the interest of American commerce that the friendly services should continue. If, by an oversight, an agreement has been come to between the Postal Departments of the United States and Great Britain, which will, if left to its operation, break down the ocean service, it is clearly in the line of sound polic}r to take such action in the premises as shall guard against such an occurrence. It has been my privilege to present the question in this light, and I gratefully recognize the intelligent appreciation of the position by yourself and other leading members of Congress, as well as by the Hon. Postmaster-General. This much it is necessary to say in explanation of the fact noted by the Hon. Mr. Key, that my printed memoranda were the first intimation the United States Post Office Department had that the contracting colonies deemed the freight charges in question excessive, or that their continuance threatened the existence of the San Francisco and Australian postal service. *#####****.* 7. You will perceive, therefore, that a concession at the present juncture by the American Government would be doubly valuable. It would exhibit to the Colonial Governments and peoples that it desired to deal liberally by all Anglo-Saxon communities, having trading and postal relations with it, and would thereby occupy a position in marked contrast with that of the Mother Country, whose policy has been characterised by centralising selfishness throughout. The Secretary of the Post Office further expresses a hope that the railroads would make the concessions asked, thereby strengthening the hands of the Contracting Colonies in their struggle to sustain the mail route to Europe across the American Continent. For the reasons already presented, however, the concessions, to be politically and commercially valuable, should emanate from the United States Government. 8. In his official correspondence, 27th February, 1880, the Secretary of the New Zealand Post Office, writing under instructions of the Postmaster-General, says, in reference to the question raised by me relative to the transit charges in this country :— [Here quote paragraphs 4, 5, and 6, up to the word " succeed," second line on last page of letter, o 27th February, 1880, F 80-153, and thereby complete the record]. 9. These extracts from the official and private letters of the heads of the New Zealand Government present the case fully as seen in the colony. They further illustrate the difficulty of dealing with the question direct, and confirm the view I have endeavoured to present, namely, that this is a case in which the United States Government should act without reference to the British Post Office Department, or the authority of the International Postal Convention, at which the colonies were not I'epresented. It solely concerns this country whether it will include these mails in its regular postal transit system, and if it decides that there are good and sufficient reasons for doing so, to give notice to the British Government that no further demands will be made ,for payment under the agreement entered into between the respective postal departments of the two countries by the Hon. Mr. Tyner and Sir Edward Thornton. 10. I have to apologise for writing to you at such length, but the importance of the subject to the contracting colonies is my excuse. I desire, moreover, to strengthen and perpetuate the commercial intercourse presently subsisting between this country and Australasia, and which, if allowed to develop by natural growth, will attain, in the not distant future, vast proportions. The Australian Colonies and New Zealand are the best customers England possesses in the world, population considered, their volume of trade being surprisingly large for such small communities. 11. Would it be trespassing too much on your time to request that you would inform me, at the earliest opportunity, what the chances are for passing your amendment in the Postal Appropriation Bill, and the nature and extent of the concessions the Hon. Postmaster-G-eneral is disposed to make. As I cannot communicate direct with the Postmaster-General, owing to the' peculiar character of the negotiations in this matter, without a breach of official usage, I have to depend upon your kindness to present such arguments on my behalf as may appear to you to be cogent. I have, &c, Hon. Horace Davis, Member United States Congress, Eobt. J. Creightox, Washington, D.C. Resident Agent, New Zealand Government.

No. 2. Mr. E. J. Creighton to Mr. Gray. Sir, — San Francisco, 10th May, 1880. I herewith transmit letter just received from the Agent-General in England, in reply to my letter ot inquiry regarding the payments by the London Post Office to the Washington Post Office Department on account of our closed mails. I regret that I have not received the information asked for, as it would fcave assisted me in my negotiations in this country, because the amount in question, as you will gather from my correspondence, is a material factor in determining what should in future be paid under any new arrangement. I hope, however, that I will be able to determine this point without further reference to London. I have, &c, PiOBT. J. Ceeightox, Wm. Gray, Esq., Secretary, Resident Agent New Zealand Government. New Zealand Post Office, "Wellington.

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F.— 2a. 3 Enclosure 1 in No. 2. Sir Julius Vogel to Mr. Creighton. Sir, — 7, Westminster Chambers, London, S.W., 17th April, 1880. I have the honor to acknowledge the receipt of your letters of 11th and 12th March, and of the printed memorandum on the Postal service and commercial advantages of the trade between the United States and New Zealand and Australia. I desire to thank you for these communications, and to state that I do not believe the Government here would re-open the question. The charge now made is an arbitrary one, and does not depend altogether on the land carriage in America. I have, &c, Julius Vogel, R. J. Creighton, Esq., Agent-General for New Zealand. San Francisco.

No. 3. Mr. Gray to Mr. E. J. Creighton. Sir,— General Post Office, Wellington, 19th June, 1880. I have the honor to acknowledge the receipt of your letter of the Bth ultimo, in continuation of previous correspondence relative to the remission by the United States Post Office of the transit rates on British, Australian, and New Zealand closed mails forwarded vid San Francisco. 2. The Postmaster-General is very pleased to observe the success which has so far attended the negotiations. Pressure of Parliamentary business has, however, prevented him from giving such full consideration to the several points raised in your letter as he would desire. The Postmaster-General regrets he is not in a position to forward by the present mail the necessary documents empowering you to conclude an agreement with the United States Government for the transit of the mails, as the interval between the arrival in and departure of the mails from the Colony has been too short to admit of his obtaining the decision of the Postmaster-General of New South Wales, who has been asked to concur in granting the powers desired by you. The Sydney Office was at once communicated with on receipt of your letter, but sufficient time has not yet elapsed to allow of the receipt of a reply. 3. By the following mail, however, it is hoped that all necessary instructions may be forwarded to you. I have, &c, R. J. Creighton, Esq., W. Gray, Resident Agent for New Zealand, San Francisco. Secretary.

No. 4. Mr. Gray to the Secretary-General, Post Qffice, Sydney. Sir, — General Post Office, Wellington, 29th June, 1880. By direction of the Hon. the Postmaster-General, I have to forward, for the information of the Hon. Mr. Samuel, the accompanying print of a letter and enclosures received by the last San Francisco mail from Mr. R. J. Creigliton, our Resident Agent at San Francisco, having reference to tlie negotiations undertaken by that gentleman, with the object of obtaining a reduction of the high charges at present levied by the United States Post Office, for the overland carriage of the Colonial mails between San Francisco and New York. 2. There is every reason to believe that Mr. Creighton ■will succeed in prevailing upon the United States Post Office to materially reduce, if not altogether abolish, the transit charges. In fact, a recent telegram from San Francisco intimates that the United States Senate had empowered the Postmaster-General to remit the charges altogether- I have to direct special attention to the tenth paragraph of Mr. Creighton's letter, in which he asks for certain powers authorizing him, on behalf of the Governments of New South Wales and New Zealand, to conclude an agreement with the United States Government, for the transit of our mails between New York and San Francisco. The Hon. Mr. Hall is of opinion that discretionary powers within certain limitations might with advantage be given Mr Creigliton, and should the Hon. Mr. Samuel concur, he would propose that the necessary joint authority be sent Mr. Creighton by next mail, who should be clearly informed that any agreement made by him is to be subject to confirmation by the Postmasters-General. 3. I also forward copy of printed papers laid before Parliament, containing correspondence bearing on this matter. As time will not admit of a written reply being received, the Postmaster-General would be glad if you would forward your decision by telegram, prior to the departure of the next outgoing San. Francisco mail. I have, &c, The Secretary, W. Gray, General Post Office, Sydney. Secretary.

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.No. 5. Mr. E. J. Creighton to Mr. Gray. Sir, — San Francisco, June 7th, 1880. I have the honor to transmit herewith further papers relating to the overland charge upon the enclosed British mails, and to inform you that my efforts to procure Congressional action in the matter have been successful beyond my own expectations. 2. On the 19th ultimo, I telegraphed you that the clause proposed by the Hon. Horace Davis, in the House of Representatives, had passed the Senate. My correspondence of last month will have made the matter clear to you, and therefore I shall only briefly refer to what transpired subsequent to the departure of the last steamer. Upon the amended Postal Appropriation Bill going before the Senate Committee on appropriations, Mr. Blaekfan, Superintendent of Foreign Mails, appeared before it voluntarily, and opposed the clause enabling " the Postmaster-General to remit in favour of the colonies of New South Wales and New Zealand so much of the cost of overland transportation of the Australian closed mails as he may deem just." His statement induced the Committee to strike out the clause. He opposed it first, because the department, having made a strong fight for permission to make this charge at the Paris Conference, were concerned in enforcing it as a matter of pride ; second, that the payments on this account were valuable as reducing the expenditures of the department. 3. Upon the bill being reported back with amendments, Senator Booth, of California, and the Hon. Horace Davis, took immediate steps to have the clause reinstated, and had an interview on the subject with the Post Office Department. When the Bill came up in the Senate, Senator Booth moved nonconcurrence in the amendment of the Committee regarding the Australian mail, and his motion prevailed on a division by 23 against 20. The clause was therefore restored to the Bill, "which is still before the House for concurrence in the Senate amendments in other sections. 4. I think I may reasonably take credit for this result, the importance of which is obvious. I have secured legal recognition of the California Mail Service by the United States Congress, and placed the contracting colonies of New South Wales and New Zealand in cordial relations with this great country. Upon the question involved, the right to consideration has been conceded, and the way has been opened, for progress in other directions, looking to tariff concessions. Unfortunately the Postmaster-General, Judge Key, has resigned, but I doubt net his successor will take a liberal view of the matter; and from the Hon. Mr. Key's undertaking not to demand the contract amount from the British Government, under certain contingencies as expressed in his letter to the Hon. Mr. Money, copy of which was forwarded to you, I think you may reasonably look to relief in the near future. 5. Owing to the approaching presidential election, little can possibly be accomplished beyond what has been already done, without personal explanation. Indeed, I question much whether anyone could be induced to take an interest in the matter until the election is over, and the new Cabinet has been formed, but should an opportunity arise from promoting the end in view, I shall avail myself of it. 6. I append a page from the " Congressional Record," giving the Hon. Mr. Davis' speech and motion, and the remarks of the Hon. Mr. Blackburn, who had the Bill in charge; also, extracts from the newspapers, giving the history of the clause. 7. Referring to the letter from Sir Julius Vogel, herewith attached, I have to say that he appears to have misunderstood the nature of the arrangement proposed by me for transporting the enclosed mail across the Continent. The mails would have been quite as safe—indeed safer than they now are— because they would have been in charge of Wells, Fargo & Co., whose express and letter-delivery service is recognised as more perfect than anything of the kind in the world. But inasmuch as Congress took action in the matter, virtually setting aside the contract between Sir Edward Thornton and the Hon. Mr. Tyner, and ignoring the authority of the Postal Convention of Paris, I do not think that any further reference to it is necessary. It should be borne in mind, however, that it was precisely this proposition by me which stimulated action, as reference to the accompanying letters from Hon. Mr. Money and Hon. Horace Davis shows. What the British Government may do in the matter of course, I cannot say; but it appears to me that they cannot in fairness refuse to make a rebate equivalent to the amount the American Government may remit. 8. With reference to the suggestion of Sir Julius Vogel regarding a subsidy to the Pacific Mail Company by the United States Government, I have simply to say that Congress will subsidize no steamship lines; and that were a subsidy granted, the company, and not the colonies, would enjoy the benefit. This would not happen should the pending negotiations result in a remission of the railroad freight charge altogether. 9. I have pleasure in reporting that, through the promptness and energy of Mr. Andrews, mail agent, and the co-operation of the local post office authorities, the mail which arrived on the 18th ult., at 7.15 a.m., got off by the overland train, which was detained an hour, without charge, by the General Superintendent of the Central Pacific Railroad, whose friendly assistance I have had occasion to note in previous letters. But, unfortunately, it was detained in New York a day after the "Arizonza " sailed on the 25th with the Sydney portion of the mail. This, I understand, arose from the fact that specific instructions have been given by the New Zealand Postal Department, or from London, to transmit the New Zealand mail only by certain steamers. The " Arizona "is the fastest ship afloat, and the Sydney mail will be delivered at least two days ahead of the New Zealand correspondence. Care should be taken to avoid a similar mistake in future. 10. I have likewise pleasure in noting the fact that Mr. Justice Gillies endeavoured, while in Washington, to carry out my wishes respecting the mail question, but was unable to do so effectually, owing 'to the absence from the capital of gentlemen to whom he had letters of introduction. Judge Gillies wrote to me from New York informing me of what he had done in the matter. Wm. Gray, Esq., Secretary I have, &c, Post Office, Wellington, New Zealand. Robt. J. Creighton. 3.— F. 2a.

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Enclosure 1 in No. 5. (Extract from United States Congressional Record of May 7th, 1880.) House op Representatives.—Post Office Appropriation Bill. The Clerk read as follows : " Office of Superintendent of Foreign Mails : Eor transportation of foreign mails, 225,000 dols." Mr. Davis, of California. Mr. Chairman, I offer the amendment, which I send to the Clerk's desk. The Clerk read as follows : After line 131 add the following : " Provided, That the Postmaster-General be authorized to remit in favour of the colonies of New Zealand and New South Wales so much of the cost of overland transportation of the Australian closed mails as he may deem just." Mr. Davis, of California. I offer this amendment simply as an act of justice to the Australian colonies. It is but right and proper that it should be passed. These colonies have had a line of steamships composed of American vessels, sailing under the American flag, at an annual expense of 500,000 dols, and they carry all our mails on the Pacific and the China mail and charge us nothing therefor. They carry all our mails to Australia, Samoa, Fiji, New Caledonia, and all our correspondence with the Hawaiian Islands free of cost to us, and in return for that service this Government charges them full expense for the transportation of their closed mails across this country both ways. It seems to me that it is neither consistent with the dignity of this country, nor with justice, nor with generosity, to allow these two small colonies, with a total population of only about one million of inhabitants, to pay this enormous subsidy of 490,000 dols., to speak accurately, and carry all our mails for us for nothing, while we charge them in return for the transit of their mails across our continent, not merely the ordinary amount for overland transit, but an extra amount in return for their generosity to us. The British Government is anxious to put an end to this mail. They have found that these people are desirous to travel across our continent. It is a favourite route for passengers. They come here and are introduced to trade with us. They have bought from us last year 7,000,000 dols. of American products, and in return we purchase from them less than 1,000,000 dols. worth. And these are not California products. They have bought locomotives from Boston. They have bought street cars from New York. They have bought steam-engines from Philadelphia. They have bought reapers and mowers and all kinds of agricultural implements from Ohio, Illinois, and other States. They have thus produced a benefit that accrues to the entire United States. The British Government seeing this is anxious to break up the system, and with that intention they have doubled and trebled the facilities which these colonies have with England on the other side. They have made the mail by way of the Red Sea a fortnightly mail instead of a monthly mail, and have at the same time expedited the route, and put on another line by way of the Cape of Good Hope and expedited that. They have been endeavouring by every means to detach these colonies from the American line they have established. I ask this House as a.matter of generosity, of justice, of business prudence, that they shall concede to those colonies this small favour which they ask ; that the Postmaster-General should be permitted to make such an allowance in favour of these colonies on the transit of these closed mails as he may deem just. Mr. Blackburn. I have no doubt the statement of facts made by the gentleman from California is altogether accurate; and assuming that to be so, I see no reason why the amendment should not be agreed to. The amendment was agreed to. The Clerk resumed and concluded the reading of the Bill.

Enclosure 2 in No. 5. Sir Julius Vogel to Me. R. J. Creighton. Sir,— 2, Westminster Chambers, London, S.W., May 12th, 1880. I have the honor to acknowledge the receipt of your letter of the 19th April. I have read it with great interest, and, on behalf of the Government, desire to thank you for the trouble you have taken and are taking. lam not, however, in a position to adopt any action in the matter, and I fear you are under a misapprehension on the subject. The postal authorities here do not return to the New Zealand Government so large a proportion of the postages as they did before the commencement of the present year. Various excuses were made for the change; amongst them was the increase ©f cost of carrying mails to California. But I do not think much weight was attached to the cost of that part of the transit which is comprised in the land carriage through America. An agreement was entered into on the 6th October, 1876, between Sir Edward Thornton (on behalf of the British Government) and Mr. Tyner (on behalf of that of the United States) for the carriage of mails across the American continent. The rate fixed by that agreement is certainly not oppressive. I think for letters it averages slightly over a halfpenny each, and I doubt if a reduction can fairly be asked for. It is not that rate, in my opinion, which led to the British Government retaining a larger proportion of the postages. Many circumstances, I believe, impelled the Government to the course, and I have already expressed the belief that amongst them was a desire to promote ihe interests rather of the Eastern than the Western route. I do not think any of the Governments concerned would trust the mails to the private charge of the railways ; which is, I understand, what you propose; and if they did, the English Government

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■would not, in my opinion, make a larger allowance of postages, since whatever is done with one route they insist should apply to all. I think that the Colonial Governments should strongly urge on the United States Government to contribute towards the cost of the subsidy to the New Zealand and Australian Californian service, but I cannot give you authority to make any representations of the kind. Your instructions will have to come direct. I will forward a copy of the correspondence to the Government. I have, &c, Julius Yogel, it. J. Creighton, Esq., Agent-General for New Zealand. San Francisco.

Enclosure 3 in No. 5. The Hon. H. D. Money, to Mr. R. J. Creighton. House of Representatives, Dear Sir,— Washington, D.C, 7th May, 1880. Your letter of date April 25th was received yesterday most opportunely. The Post Office appropriation for the next fiscal year was pending. I conferred with Hon. Horace Davis, and showed him your letter, and we agreed that he shonld offer an amendment to the pending Bill, giving a discretion to the Postmaster-General the authority to remit the cost of transportation across the continent of the British and Australian closed mail, or so much as he should think just. Mr. Davis managed the matter with great address; he prevailed upon the Committee in charge of the Bill to accept the amendment, and then in a short speech placed very forcibly and clearly before the House the value of the relation between the United States and the Colony, &c. The matter is now with the PostmasterGeneral, and I shall endeavour to have him act as soon and as favourably as possible, and feel sure that Ms inclination is to do what is just and proper. I have, &c, Mr. Robert Creighton, H. D. Money. Postal Agent, New Zealand Government, San Francisco, Cal.

Enclosure 4 in No. 5. Mr. R. J. Creighton, to the Hon. H. D. Mosey. Dear Sir,— San Francisco, 20th May, 1880. I read your letter of 7th May with great pleasure and interest, and have to thank you, on behalf of the contracting colonies, for the prompt and successful action you took in obtaining Congressional sanction to an abatement of the transit charges on enclosed British and Australian mails. I have, of course, since learned the ultimate result, which is as gratifying as it has been in degree surprising to me. I trust that the Hon. Mr. Key, before leaving office, will have finished this business, which he so fully understands, and in which he lias manifested such great interest. If not, I must further trespass upon your kindness to have it brought to a satisfactory conclusion. I have no doubt the action of Congress, in sanctioning the clause in the Post Office Appropriation Bill, proposed at j rour suggestion by Hon. Horace Davis, will have the best possible effect in promoting commercial intercourse between Australasia and the United States. The last steamer from the colonies brought up 300 passengers, of whom 200 were in the saloon. Of course this included Honolulu passengers, but the greater proportion was from the colonies. I apprised the New Zealand Government by telegraph of the vote in the Senate. I have, <fee, Hon. H. D. Money, Robt. J. Creighton, Chairman Postal Committee, &c, Resident Agent New Zealand Government. Washington, D.C.

Enclosure 5 in No. 5. The Hon. Horace Davis, to Mr. R. J. Ceeighton, Dear Sik, —. House of Representatives, "Washington, 11th May, 1880. Your telegram of 7th May, congratulating me on the success of the amendment to the Post Office Appropriation Bill respecting the transit of the New Zealand mails, reached me duly. I telegraphed you in reply that the Bill had passed the House, and that Senator Booth thought the amendment had nothing to fear in the Senate. I have this day given him a memorandum of the facts in the case, and he -will defend it if necessary. You may congratulate yourself upon the success of the proposition, as I was entirely taken by surprise at its passage. I had prepared the way to the best of my ability, but did not think it would go through. Thanking you for your telegram, I have, &c, It. J. Creighton, Esq., Horace Davis. Office Evening Post, San Francisco, Cal.

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Enclosure No. G in No. 5. Mr. R, J. Creighton, to the Hon. Horace Davis. Dear Sir,— San Francisco, 21st May, 1880. I have pleasure in acknowledging receipt of your letter intimating the great success of your motion in the House. I was agreeably surprised at the announcement in the papers of that date, and hastened to thank you by telegraph. Mr. Money had written previously and prepared me for the result. What is now required is for the Postmaster-General to make a liberal concession and formally apprise the British Post Office authorities of what had been done under Act of Congress. You will have gathered the precise position of affairs in the colonies from my last letter to you. I trust, however, that the resignation of Judge Key will not derange matters again. I have written to Senator Booth, thanking him for his successful advocacy in the Senate, and requesting him to forward to me a copy of the Post Office Appropriation Bill, and Congressional Record containing his speech, to make parts of the official record for presentation to the Parliaments of New Zealand and New South Wales. Would you kindly do the same in your own case. The mail steamer sails on the 7th. There can be little doubt of recent action of Congress, and the good feeling it displayed towards the colonies, will be appreciated there. American manufactures should be pushed in the Australian market where there is a large demand and money to pay for the goods. I telegraphed the result of the debate in the Senate to the New Zealand Government. I have &c, Hon. Horace Davis, Robt. J. Creighton, Washington, D. C. Resident Agent New Zealand Government.

Enclosure 7 in No. 5. Mr. R J. Creighton, to the Hon. Senator Booth. Dear Sir, — San Francisco, May 21st, 1880. Accept my best thanks for your able and successful advocacy of the mail transit proposition in the Senate. It was not quite unexpected, but nevertheless it did surprise me that you were able to get it through against the opposition of the permanent chiefs of the Post Office Department. I trust this is the beginning of a new and important departure in the foreign relations of the United States, having for its object the extension of its commerce and trade with the Anglo-Saxon commonwealths established in. the South Pacific. If the Postmaster-General makes a liberal concession, and formally notifies the British Post Office authorities of the fact, I am satisfied it will produce the best possible effect in the colonies, more especially those now defraying the steamship subsidy. But I need not enlarge upon this point now, the vote of the Senate justifying the belief that such will be the case. I telegraphed by cable to New Zealand the result of the vote in the Senate on your motion. Would you be good enough to transmit by mail to me a copy of the Post Office Appropriation Bill as passed, together with the " Congressional Becord" containing the report of your speech, that I may forward them to the colonies and make them part of the official record for presentation to the Parliaments of New Zealand and New South Wales. The steamer sails on the 7th of June ■to be in time it should arrive on the 6th. Again thanking you on behalf of the colonies for your very valuable services, I have, &c, Hon. Senator Booth, Washington, D.C. Bobt. J. Creightost, Agent New Zealand Government.

Enclosure 8 in No. 5. Mr. E. J. Creighton, to the Hon. Senator Booth. Telegram. San Francisco, May 22nd, 1880. Accept thanks your valuable aid in Senate behalf Australian mail service. Please send copy Bill passed, also copies " Congressional Record" containing speeches of yourself and Hon. Horace Davis for official record. Robt. J. Cbeighton, To Senator Newton Booth, Washington, D.C. Agent New Zealand Government.

Enclosure 9 in No. 5. Mr. R. J. Creigiiton to Sir Julius Vogel. Sir — San Francisco, May 22nd, 1880. I have the honor to inform you that upon representations from me, on behalf of the colonies of New Zealand and New South Wales, the United States Congress has, by law, empowered the Post-master-General of this country to make snch reductions upon the transit charges upon the enclosed British and Australasian mail as he may deem just. I have already advised the New Zealand Government of the fact by cable. Negotiations are in progress to complete this matter satisfactorily. When this has been done I have no doubt the British Government will reopen the postal question, inasmuch as it will be placed upon a totally different footing, and the initiative will probably be taken by the United States authorities. I have, &c, Sir Julius Vogel, K.C.M.G., R,obt. J. Creighton. Agent-General for New Zealand, London.

Printed at the New Zealand Times Office, Wellington, 1880.