OCEAN MAIL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6, presented on the 27th July, 1898.]

Appendix to the Journals of the House of Representatives, 1898 Session I, F-06a

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1898. NEW ZEALAND.

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6, presented on the 27th July, 1898.]

Presented to both Houses of the General Assembly by Command of His Excellency.

INDEX. San Francisco service— Page Vancouver service— continued. p age Renewal of Service : Arrangement of Contract .. 1 Pacific, Canadian, and United States transit: ArDeparture from American ports .. .. 2 rangement of time-table .. .. .. 4 Liquidation of Canadian-Australian R.M.S. ComVanoouver service— pany: Payment of subsidy .. .. .. 10 Payment of contribution by Imperial Post Office .. 4 Interprovincial services .. .. .. .. 2

SAN FEANCISCO MAIL-SEEVICE. No. 1. EENEWAL OP SEEVICE: ARRANGEMENT OE CONTRACT. [This table of rates is to be read as completing clause 3 of the Draft Contract, printed at No. 83, P.-6, 1898.] Passenger Rates. To and from Auckland and Apia and Honolulu. Apia. Honolulu. £ s. d. £ s. d. Saloon, single ... ... ... ... 12 10 0 ... 30 0 0 return ... ... ... ... 20 0 0 ... 45 0 0 Steerage, single ... ... ... 610 0 ... 1500 return ... ... ... 10 10 0 To and from Auckland and San Francisco. Saloon, single, £40; steerage, £16. „ return, £60; „ £30. Erom and to southern ports and Auckland : Ordinary coastal fares from or to Auckland, less 10 per cent., in addition to above. Freights. From Auckland to Apia and Honolulu. Apia. Honolulu. General cargo ... 40s. per 40 cubic feet ... 40s. per 40 cubic feet. Vegetables, in cases ... 255. „ ... 255. „ To Auckland from Apia and Honolulu. General cargo ... 40s. per 40 cubic feet ... 40s. per 40 cubic feet. Eruit3, in cases ... 255. „ Auckland to San Francisco. ' General cargo ... ... ... 50s. to 60s. per ton, 40 cubic feet. Skins ... ... ... ... 355. to 40s. „ of 2,2401b. Hides ... ... ... ... 325. 6d. „ San Francisco to Auckland. General cargo ... ... $8 to $10 per 40 cubic feet measurement. Canned goods ... ... $8 to $10 Salmon ... ... ... $8 to $9 „ Hops $8 to $10 . „ Wheat, flour, ka. ... ... $6 to $8 per 2,0001b. Bicycles ... ... ... $7 50 cents and upwards. An additional rate of 10s. 6d. per ton to and from main ports south of Auckland, which includes dues and labour at Auckland transhipping. [Note. —Also in fifth line of Preamble of the Draft Contract, next after the words "Sydney, Auckland, Apia, Honolulu," read the word " San Francisco ;" and in the eighth line of clause 6 read, instead of the word " exceed,'' the words " amount to."] I—F. 6a.

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DEPARTURE FROM AMERICAN PORTS. No. 2. The Agent-General to the Hon. the Premier. Sir, — Westminster Chambers, 13, Victoria Street, London, S.W., 6th May, 1898. I beg to state that I have arranged with Messrs. R. W. Cameron and Co., of New York, to inform me by cablegram when the homeward New Zealand mails via San Francisco and Vancouver leave New York, and by what steamer they are being sent. I have, &c, The Hon. the Premier, Wellington. W. P. Reeves.

No. 3. The Resident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir,— San Francisco, 17th May, 1898. I have the honour to acknowledge the receipt of your communication of the 6th April [see No. 108, F.-6,1898] upon the question of a rearrangement of the dates of departure of the colonial mails from this port in order to afford additional time to correspondents in the eastern states to reply by return mail to communications received. I understand that no change is likely to be made during the currency of the existing contract, but that the matter will receive consideration when the new time-tables are compiled. I have, &c, W. Gray, Esq., H. Stephenson Smith, Secretary, General Post Office, Wellington. Resident Agent.

No. 4. The Hon. the Premier to the Agent-General. (Memorandum.) Premier's Office, Wellington, 15th June, 1898. I have the honour to acknowledge the receipt of your letter of the 6th May last, advising that you had arranged with Messrs. Cameron and Co., of New York, to inform you by cablegram when the homeward New Zealand mails vid San Francisco and Vancouver leave New York, and of the name of the steamer conveying them. The Hon. W. P. Reeves, W. C. Walker, Agent-General for New Zealand, London. For the Premier.

INTEKPEOVINCIAL SERVICES IN CONNECTION WITH THE SAN FEANCISCO AND VANCOUVER SEEVICES. No. 5. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir, — Dunedin, sth February, 1898. I have the honour to acknowledge receipt of your favour of the 26th January [No. 113, E.-6, 1898], asking the terms on which we are prepared to renew the San Francisco interprovincial service, and also provide a coastal service for the Vancouver mails. Under the new time-table which you have enclosed, the interprovincial service will be even more onerous than in the past, as it will not fit in with our regular service, and will disarrange our connection with the through trains to and from New Plymouth. It will be necessary to have special sailings from Onehunga for the inward San Francisco mail and the outward Vancouver mail, while an extra service will be required to convey the inward Vancouver mail from New Plymouth. A special steamer will also be required each alternate Wednesday in connection with the southern train to convey both the outward San Francisco and Vancouver mails. For these services we shall require the same subsidy as hitherto—viz., £3,000 per annum for distributing both the inward and outward San Francisco mails; and a like amount (£3,000) for a similar connection with the Vancouver service. I may say that we hope, in about two months, to replace the "Mahinapua" with the "Rotoiti," which has been built on the Clyde especially for the service between Wellington and Onehunga; so that, with the " Takapuna " and "Rotoiti" on this line, the mail-connection will give you no cause for complaint. .1 have, &c, James Mills, The Secretary, General Post Office, Wellington. Managing Director.

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No. 6. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. Sir,— General Post Office, Wellington, 18th March, 1898. I have the honour to refer to your letter of the sth ultimo, offering to renew the San Francisco interprovincial mail-service for the sum of £3,000 per annum, and to provide a coastal service for the collection and distribution of the Vancouver mails for another £3,000, and to inform you that the Postmaster-General will accept your offer, up to the 31st March, 1899, on condition that, in extension of the ordinary mail trips, a close connection is to be made at New Plymouth by steamers to and from Auckland on three days in each week, instead of two as at present, should the Eailway Department decide to put on an additional train between New Plymouth and Wellington. I shall be glad to learn as early as possible whether your company agrees to this. I have, &c, The Managing Director, Union Steam Ship Company W. Gray, Secretary. of New Zealand (Limited), Dunedin.

No. 7. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir,— Dunedin, 30th March, 1898. I have the honour to acknowledge receipt of your favour of 18th instant, intimating that the Postmaster-General has accepted our offer for a renewal of the San Francisco interprovincial mailservice, and also for a coastal service for the collection and distribution of the Vancouver mails, on condition that a close connection is made at New Plymouth by steamers to and from Auckland three days in the week, should the Eailway Department decide to put on an additional train between New Plymouth and Wellington. I may say that it is our intention to make a close connection with the improved train-service when it comes into operation by providing this extra service, and the Postmaster-General may rely upon our doing all in our power to make suitable provision for the traffic. The fact that during last year and the current year we shall have added no less than ten steamers to our fleet, at a cost of £400,000, the majority of them being for the passenger traffic, affords. I think, ample evidence that we are more than anticipating the wants of the travelling public. We submit, however, that this provision should not be made a condition of the agreement for the special services in connection with the Pacific mails, as, so long as the local connection bids fair to be profitable, you may rely upon our making ample provision ; whereas, if the trade will not support an extra steamer, the subsidy proposed is entirely inadequate. I trust, therefore, that the Postmaster-General will see his way to conclude the contract for the mail-connections without this condition. I have, &c, James Mills, The Secretary, General Post Office, Wellington. Managing Director.

No. 8. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Sbip Company, Dunedin. Sir,— General Post Office, Wellington, 19th April, 1898. I have the honour to acknowledge the receipt of your letter of the 30th ultimo, in connection with the condition attached to the acceptance of your offer for a coastal service for the collection and distribution of the San Francisco and Vancouver mails. Relying upon the assurance that your company intends to make a close connection with the proposed improved train-service between Wellington and New Plymouth, and to do all in its power to make suitable provision for the traffic, the Postmaster-General has agreed to waive the condition referred to. Your offer to perform the San Francisco and Vancouver interprovincial services for £3,000 a year each, up to the 31st March, 1899, is therefore accepted. I have, &c, The Managing Director, Union Steam Ship Company W. Gray, Secretary, of New Zealand (Limited), Dunedin.

No. 9. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir,— Dunedin, 29th April, 1898. I have the honour to acknowledge receipt of your favour of the 19th instant, and note that our offer to perform the San Francisco and Vancouver interprovincial services for £3,000 each per annum has been accepted. I have to thank the Postmaster-General for agreeing to waive the condition in re extra services between New Plymouth and Onehunga, which he proposed to make a condition at first. I have, &c, W. Gray, Esq., T. W. Whitson, Secretary, General Post Office, Wellington. For Managing Director.

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No. 10. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. Sir,— General Post Office, Wellington, 23rd June, 1898. Referring to your telegrams of the 9th, 10th, and 17th instant [not printed], in connection with the proposed change of sailing-day of the steamer conveying the mails from Auckland for despatch from Wellington vid Vancouver, I have the honour to confirm my telegram of yesterday [not printed], informing you that the Postmaster-General had agreed to the substitution of Monday for Tuesday for' the departure of the steamer from Auckland ; the change to take place from next month. I have, &c, The Managing Director, Union Steam Ship Company W. Gray, Secretary. of New Zealand (Limited), Dunedin.

VANCOUVER MAIL-SERVICE. PAYMENT OF CONTRIBUTION BY IMPERIAL POST OFFICE. No. 11. The General Manager, New Zealand Shipping Company, Christchurch, to the Secretary, General Post Office, Wellington. New Zealand Shipping Company (Limited), Christchurch, Sir,— ' 4th August, 1898. Referring to your letter of 28th April, addressed to the Deputy Postmaster-General, Ottawa, which appears in the printed correspondence on the ocean mail-services submitted to Parliament [No. 152, F.-6, 1898], I have the honour to ask whether the Canadian PostmasterGeneral has consented to pay to the Canadian-Australian Royal Mail Steamship Company the amount of the Postal Union sea-rates which he has received from the Imperial Government on correspondence for New Zealand forwarded by the mail-service via Vancouver. I have, &c, Isaac Gibbs, The Secretary, General Post Office, Wellington. General Manager.

No. 12. The Secretary, General Post Office, Wellington, to the General Manager, New Zealand Shipping Company, Christchurch. Sir,— General Post Office, Wellington, Bth August, 1898. I have the honour to acknowledge the receipt of your letter of the 4th instant, asking whether the Canadian. Postmaster-General had consented to pay to the Canadian-Australian Royal Mail Steamship Company the amount of the Postal Union sea-rates received from the Imperial Government on correspondence for New Zealand via Vancouver, and, in reply, to inform you that so far the Canadian Government has not agreed to make the payment. I have, &c, The General Manager for the Colonies, New Zealand Shipping W. Gray, Secretary. Company (Limited), Christchurch.

PACIFIC, CANADIAN, AND UNITED STATES TRANSIT.—ARRANGEMENT OF TIMETABLE. [Read here No. 2.] No. 13. The Hon, the Postmaster-General, Wellington, to the Hon. the Postmaster-General, Ottawa. (Telegram.) Wellington, 9th June, 1898. " Aorangi " arrived Vancouver 18th May—day early—yet mails reached London three days late. Can you explain delay ?

No. 14. The Eesident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir, — San Francisco, 11th June, 1898. I have the honour to acknowledge receipt of your communications of the 15th April and the sth May [not printed], with enclosures. The result of my trip over the Canadian-Pacific were contained in my letter of the 19th ultimo [see No. 188, F.-6, 1898]. I have received the revised code for the notification of arrivals and departure of the contract mail-steamers at this port, and your instructions will receive the necessary attention in future. I also beg to acknowledge receipt of your cable of the 9th instant, reading as follows : " Proceed Vancouver. Accompany mails due sixteenth through to New York. Determine where mails

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delayed. 'Aorangi' arrived Vancouver day early, but mails delivered London three days late. Urge Railway New York Post Office give prompt despatch." It was much to my regret that my business engagements and the illness of my wife prevented my departure in time to carry out these instructions at the present juncture; I therefore cabled, " Unable leave June," and now confirm the same. If on receipt of this communication and others on the same subject it is still desired that this trip should be made, every effort will be made to comply with your instructions by the date of the arrival of the steamer at Vancouver in July. Much, regretting the condition of matters at the present moment, I have, &c, W. Gray, Esq., H. Stephenson Smith, Secretary, Post and Telegraph Department, Wellington. Resident Agent.

No. 15. The Resident Agent for New Zealand, San- Francisco, to the Secretary, General Post Office, Wellington. Sir, — San Francisco, 13th June, 1898. In regard to the delays lately reported in connection with the transmission of the Australasian mails vid the Canadian-Pacific route and connections, I would state that, as far as I have been at present able to ascertain, the delay to the mails due in England on the 4th May was principally attributable to the eight-day trip of the s.s. " Umbria " across the Atlantic, coupled with a six- or seven-day trip across the continent. The cause of the latter delay lam now investigating, and will communicate, the result thereof as early as possible. In regard to the delay to the mails ex " Aorangi," to which your cable had special reference, my advices are to the effect that these mails left New York on the evening of the 24th May, only five days from arrival at Vancouver, but that they were sent forward on the evening of the 24th per the " Aurania," which appears to have consumed about eleven days in accomplishing the voyage. It is quite unfortunate that the present schedule should be so arranged that either the " Umbria " or the " Aurania " is timed to perform the Atlantic portion of the voyage, although it is hardly to be anticipated that such protracted voyages as instanced should be experienced in the months of May and June. Upon receipt of information in regard to delay on railways in the case of the " Warrimoo's " mail I will duly advise you. I have, &c, W. Gray, Esq., H. Stephenson Smith, Secretary, Post and Telegraph Department, Wellington. Resident Agent.

No. 16. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. Sir,— General Post Office, Wellington, 20th June, 1898. I have the honour to acknowledge the receipt of your letter of the 19th ultimo [see No. 188, F.-6,1898], with reference to the delays on the overland route to the mails vid Vancouver, and matters connected with the San Francisco service. It is to be regretted that you were unable to go over the whole of the mail route from Chicago in view of the repeated delays to the mails from Vancouver to New York—delays which do not appear to occur in the opposite direction. As you were advised, our Mail Agent in February last travelled as far as Chicago, and satisfied himself, after conferring with the railway and post-office authorities, that there would be no delay up to that point; while the managers for the railway between Chicago and New York undertook that our mails would receive prompt attention onward, and the New York Post-office stated that there would be no unnecessary delay there. I hope that your inquiries will show where the detentions arise, and that your proposed representations to "Washington will result in the removal of all cause for further delay or complaint. I was disappointed on learning that you could not accompany the mails by the "Miowera" to New York [see No. 14], but I hope that you will be able to go on the arrival of the following steamer. 1 have, &c, H. Stephenson Smith, Esq., W. Gray, Secretary. Resident Agent for New Zealand, San Francisco, California.

No. 17. The Hon. the Postmaster-General, Wellington, to the Hon. the Postmaster-General, Ottawa. Sir,— General Post Office, Wellington, 23rd June, 1898. I have the honour to forward herewith copy of my cablegram to you of the 9th instant, with reference to the delay to the homeward mails per the " Aorangi" vid Vancouver, to which I have not as yet received a reply. I may explain that the telegram was the result of representations which had been made by the Agent-General for this colony in London [see No. 189, F.-6, 1898] that much dissatisfaction is caused in business circles there at the unpunctual deliveries, which are not infrequent. Delays of the kind are practically unknown in the case of the mails by way of San Francisco. I have, &c, W. Gray, The Hon. the Postmaster-General, Ottawa. For the Postmaster-General.

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No. 18. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. Sir,— General Post Office, Wellington, 23rd June, 1898. I have to confirm my cablegram [quoted in No. 14] asking you to proceed to New York with the homeward mails per the " Miowera " for the purpose of ascertaining, if possible, at what point between Vancouver and New York the delay to mails from the colonies by that route takes place. My cablegram to you was the result of a representation by the Agent-General for this colony to the effect that much dissatisfaction is caused in London business circles at the unpunctual deliveries. The delay was particularly noticeable in the case of the " Aorangi's" homeward mails, which, although they reached Vancouver a day in advance of time, were not delivered in London until three days after time-table date. I trust that you will be able to go through to New York with the mails by the " Warrimoo." I also enclose copy of a cablegram [No. 13] to the Postmaster-General, Ottawa, on the same subject, to which no reply has yet been received. I have, &c, H. Stephenson Smith, Esq., W. Gray, Secretary. Resident Agent for New Zealand, San Francisco, California.

No. 19. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. (Telegram.) Wellington, sth July, 1898. Accompany mails due Vancouver fourteenth to New York.

No. 20. The General Manager, New Zealand Shipping Company, Christchurch, to the Hon. the Postmaster-General. New Zealand Shipping Company (Limited), Sir,— Christchurch, Bth July, 1898. Referring to the voyage of the Canadian-Australian Royal Mail Steamship Company's steamer " Aorangi," which left Wellington on the 28th April, I have the honour to hand you the following extract from the official liquidator's letter, dated London, 4th June : " Our part of the contract was performed by the ' Aorangi' in excellent time, but, besides being unfortunate in catching a slow Cunard steamer, the ' Aurania,' that vessel was delayed two days in New York owing to danger in the bay from torpedoes; but for this, which is entirely outside our contract, the mail would have been delivered in very good time." The following is a copy of a Dalziel telegram from Queenstown : " The Cunard liner '• Aurania,' from New York, arrived this morning with passengers and heavy mails. She reports that she was detained at New York for two days through mines laid in the harbour, and could not leave until Thursday. She passed on the Ist instant upwards of forty sailing-ships grain-laden for Queenstown." " I have, &c, Isaac Gibbs, The Hon. the Postmaster-General, Wellington. General Manager.

No. 21. The Manager, New Zealand Shipping Company, Wellington, to the Secretary, General Post Office. [Extract from letter from the New Zealand Shipping Company (Limited), Christchurch, to the Local Manager, Wellington, 9th July, 1898.] " Canadian-Australian Company.—With reference to the despatch of the Canadian-Australian Company's steamers from Wellington, Mr. Hunter writes from Vancouver as follows : 'Another important matter mentioned by Captain Hay is the time of departure of the steamers from Wellington for Suva. It would be a great advantage to fix this time at 1 p.m., instead of at 3or 4 p.m. as at present. The time allowed after 3or 4 p.m. for reaching Suva is too short, and if any delay from bad weather occurs the steamers miss their time at Suva, and in consequence may be made late for Honolulu, and so lose a whole day. Captain Hay says the time for leaving Wellington depends solely on the arrangement made by the Union Steam Ship Company of New Zealand, who could deliver the mail in time for 1 o'clock sailing. I hope you can get this improvement made.' " The Union Company's steamer leaves Lyttelton at about 10.30 p.m., carrying the Vancouver mails to connect with the Canadian-Australian Company's steamer.' The " Rotomahana " can easily make the run up in thirteen hours, arriving in Wellington, say, at 11.30 a.m. If the Vancouver mail-steamers were despatched at 1 p.m. this would give about one hour and a half for the transhipment of mails from the Union Company's boat. We should be glad if you would see Mr. Gray, and ascertain if anything can be done to expedite the transhipment of mails in Wellington so that the mail-steamers can be despatched promptly at 1 p.m."

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No. 22. The Hon. the Premier to the Agent-General. Sir,— Premier's Office, Wellington, 15th July, 1898. I have the honour to forward herewith copy of a letter from the general manager of the New Zealand Shipping Company (Limited), Christchurch [No. 20], from which you will observe that the reason given for the late delivery in London of the mails which left Wellington on the 28th April last per the " Aorangi" is that the " Aurania " was delayed in New York owing to danger in the bay from torpedoes. I shall be glad if you will advise me whether this is the explanation accepted by the London Post Office. I have, &c, The Hon. W. P. Reeves, W. C. Walker, Agent-General for New Zealand, London. For the Premier.

No. 23. The Secretary, General Post Office, Wellington, to the Eesident Agent for New Zealand, San Francisco. Sir, — General Post Office, Wellington, 15th July, 1898. I have the honour to enclose herewith copy of a letter received from the general manager of the New Zealand Shipping Company (Limited), Christchurch, in connection with the late delivery in London of the mails which left Wellington on the 28th April last per the " Aorangi." I shall be glad to know whether you are able to confirm the statement that the " Aurania " was delayed two days in New York owing to danger in the bay from torpedoes. I have, &c, H. Stephenson Smith, Esq., W. Gray, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 24. The Secretary, General Post Office, Wellington, to the General Manager, New Zealand Shipping Company, Christchurch. Sir, — General Post Office, Wellington, 15th July, 1898. I have to acknowledge the receipt of your letter of the Bth instant, concerning the late arrival in London of the mails which left Wellington by the " Aorangi" on the 28th April last, and to thank you for the information contained therein. I have, &c, The General Manager, W. Gray, Secretary. New Zealand Shipping Company (Limited), Christchurch.

No. 25. The Secretary, General Post Office, Wellington, to the Eesident Agent for New Zealand, San Francisco. Sir, — General Post Office, Wellington, 15th July, 1898. I have the honour to acknowledge the receipt of your letter of the 11th ultimo, confirming the telegrams exchanged regarding the request that you might travel from Vancouver to New York with the colonial mails which were to arrive at Vancouver on the 16th idem. I note that your wife's ill-health prevented your acceding to the request, and I trust that she may have an early recovery. Since your letter was written I cabled asking you to go through with the mails by the " Warrimoo." [See No. 19.] I have, &c, H. Stephenson Smith, Esq., W. Gray, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 26. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand San Francisco. Sir,— General Post Office, Wellington, 15th July, 1898. I have the honour to acknowledge the receipt of your letter of the 13th ultimo, regarding the late delivery in London of the mails which left Wellington by the "Aorangi" on .the 28th April last. The delays are much to be regretted, and I trust that when you are in New York you may see your way to suggest such a change as will reduce the detention to a minimum. The fact that so many of the fast Atlantic vessels have been purchased by the United States Government has no doubt somewhat disarranged the running by necessitating the substitution of slower vessels. ' I have, &c, H. Stephenson Smith, Esq., _ W. Gray, Secretary. Eesident Agent for New Zealand, San Francisco, California.

No. 27. The Resident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir,— San Francisco, 30th July, 1898. I have the honour to report for your information that, pursuant to cable instructions received dated the sth instant, I proceeded from San Francisco by railroad to Vancouver, British

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Columbia, on the 10th instant, arriving at that point on the 13th at 4.50 p.m., and awaited the arrival of the R.M.S.S. " Warrimoo," conveying the Australian mails from the colonies. This vessel arrived at Victoria wharf at 10 p.m., leaving for Vancouver at 3 a.m. on the 14th, and arrived there at 10.30 a.m. of that date. The mails were transferred without delay and I left with them by the Canadian-Pacific express at 1 p.m. We proceeded without incident and arrived at Moose Jaw Junction (the connecting point for the United States) at 4.5 p.m. on the 16th. The mails were at once transferred to the Minneapolis, St. Paul, and Sault Ste. Marie railroad (the Soo line) and we left for Minneapolis at 4.26 p.m., forty-five minutes late. This time, however, was recovered by the time we reached Minneapolis, 6.15 p.m. on the 17th. A close connection was here made with the Chicago, Milwaukee, and St. Paul railroad, and we left for Chicago at 6.25 p.m., arriving on time at Chicago —7 a.m. on the 18th. The mails were at once transferred to the Lake Shore depot, and we proceeded at 8 a.m. by the " Fast Mail" on the Lake Shore Road, arriving at New York at 10.35 a.m. on the 19th instant by the New York Central and Hudson River railroad, having occupied only four days and 21 hours in the through transit from Vancouver to New York. The fast steamers of the North German Lloyds having been withdrawn on account of an accident, the mails did not leave New York until the 20th instant, proceeding by the White Star steamer " Germanic." This vessel made a long passage, and the mails only reached Queenstown at 1.30 a.m. on the 28th, one day late. This was a purely transatlantic delay. Had the " Kaiser Friedrich der Grosse " not been withdrawn, the mails would undoubtedly have arrived from two to three days earlier. I am of opinion that the transmission of the mails through United States territory is susceptible of little if any improvement. The speed maintained throughout from Moose Jaw to New York is excellent, the delays trifling, and the connections very close. The distance from Moose Jaw on the Canadian-Pacific to New York is approximately 2,150 miles, and the time consumed in the transit is only sixty-one hours. The distance from Vancouver, 8.C., to Moose Jaw is approximately 1,085 miles, and fifty hours and thirty minutes is consumed in the transit. It must, however, be recollected that a large portion of the distance covered by the Canadian-Pacific on this run to Moose Jaw is over a mountain region, where speed is difficult to maintain on account of the severe grades encountered. I fear that it must always be anticipated that more or less delay will be experienced on this section of the Canadian-Pacific railroad during the winter, and especially during the spring months while crossing the mountains, on account of the snow-slides on the unprotected portions of the line. This railroad, in my judgment, is not at present too well supplied with engines that are capable of drawing heavy trains over the steep grades met with on the mountain section, at anything but a very slow pace. And when delays occur (and they are not infrequent) no disposition seems to be displayed by the train officials to recover the time lost when the train reaches the prairie districts east of the divide. It is possible, and indeed rumoured that, on account of the ballasting on this section, the train-men are not permitted to run at an increased speed so as to enable lost time to be recovered by the time Moose Jaw is reached. My experience on this trip would tend to confirm this rumour, as the forty-five minutes lost on the mountain section was not reduced, and we arrived at the junction this time late. It is the present practice for the Canadian-Pacific railroad trains bound east to remain some fifteen or twenty minutes at Moose Jaw while passengers, mails and freight are transferred to the connecting-train for the United States. The Soo line, which is under Canadian-Pacific management, uses the same track for some little distance, and consequently this railway has to wait until notice is received that the Canadian-Pacific train has reached the next station before it can proceed. This arrangement may possibly, especially when the Canadian-Pacific train is late, cause a delay that possibly could be avoided if arrangements could be made with the CanadianPacific authorities to permit the Soo train to leave first. I do not know whether this is feasible, but any saving in time, even a few minutes, might be very important, with the close connections made on the United States lines. I find also that it is the present practice to forward the through mails from Vancouver in the ordinary express-car, where the mails are mixed with the other express matter, and as these mails are not in the charge of the Canadian postal officials, but in that of the railroad, it does not appear who would be responsible if, on arrival at Moose Jaw, a bag or bags should be missing. I would suggest that all these through mails should be sent through in " closed " cars, and under the charge of the Canadian mail-officers, when, if arrangements could be effected in regard to the prior despatch of the Soo line from Moose Jaw, as suggested above, this car could be at once switched on to the connecting line, and its departure thus be expedited. As the exact hour of departure of the inward mail-steamer is not always known at Vancouver, I would suggest that instructions be given the mail agents to wire the Canadian postal officials at Vancouver the hour appointed for departure so that proper steps could be taken to arrange to detain the Canadian-Pacific overland express in order to connect —the manager of that railroad having promised to hold the train on all occasions a reasonable time for the connection with the Australian steamer. And it would be advisable, I think, for the New Zealand Government to communicate with the Canadian postal department so as to have instructions issued to the Vancouver office to attend to this and other matters that may serve to facilitate the connection and forwarding the mails at that office. The connection of the through mails at Minneapolis is extremely close and important. The Gentleman in charge of the United States railway mail-service at that point, Mr. Norman Perkins, is a first-class officer who is ambitious to make the transmission of all mails through his district promptly. He is especially anxious to secure good connection for the Australian mails. He complains, however, that he is not advised of the departure of the mails from Vancouver, and therefore is not able to make arrangements for their connection at Minneapolis, should the mails be delayed

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in transit. A small detention at Minneapolis would often ensure through-connection to New York. I would therefore further suggest that the mail agents. be instructed to telegraph to the Superintendent of the Railway Mail Service at Minneapolis from Vancouver giving day and hour of. the departure east-bound of the mails on the Canadian-Pacific railroad, and thus enable Mr. Perkins to keep in touch with the progress of the mail-train, and take such measures as may be necessary to effect a connection at Minneapolis. There being only one train daily from Moose Jaw to Minneapolis makes connection at that point very important. As at present the best service available on the Atlantic is that by the fast steamers of the North German Lloyds, which leave New York on Tuesday, it is most important- that these steamers should be reached. But as these vessels are appointed to leave New York at 9 a.m. on the Tuesday, and the Lake Shore and Hudson River express does not arrive at New York until 10.35 a.m. of that day, this opportunity under ordinary circumstances is lost. Therefore, in order to secure this connection with some degree of certainty it will be necessary to so arrange the arrival at Vancouver, and, probably, consequently the departure from New Zealand, so as to reach Vancouver on the morning of Wednesday. I think this is a matter worthy of serious consideration. The serious delays reported in the through transit of the mails by this route I am satisfied are attributable more to the slow steamer connection on the Atlantic than to delays in the overland carriage. I find that the New York officials are extremely anxious to make the best steamer connections, and are indefatigable in their efforts to expedite the transfer of mails. Messrs. Maise and Boyle, superintendent and assistant-superintendent of mails at New York, are particularly energetic and watchful, and no stone is left unturned at that office to further our interests in this direction, and the mails are often transferred to tugs and sent after the Atlantic liners when they arrive late. The west-bound mail-service appears to be excellent, and special mail-trains are sent out from Minneapolis, and the Canadian Pacific express is overtaken at Banff, some thirty-two hours from Vancouver. If any delay occurs in this direction it will probably be on the Canadian-Pacific run to the Pacific seaboard. After considering the results of my journey, I did not deem it necessary to incur the expense of a trip to Washington, as there did not appear to be any object to be gained. I have placed myself in touch with the officers responsible for the practical working of the system, and I think that no serious delays will occur in the future that are not inevitable. I am of the opinion that no benefits commensurate with the expense incurred can be secured by sending forward to Chicago the New Zealand mail-officers, as suggested in a communication from you. They could do nothing further than report the cause of any delay that may occur, and this information can be more definitely obtained from the Canadian postal officers. Railroad folders of the route are inclosed. I have, &c, H. Stephenson Smith, W. Gray, Esq., Resident Agent for New Zealand. Secretary, Post and Telegraph Department, Wellington.

No. 28. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand,. San Francisco. (Telegram : Posted at Auckland.) Wellington, 6th August, 1898. Advices just received by the Union Company from Spreckels state that, now Hawaii annexed by the United States, foreign vessels, according to law, cannot convey either passengers or cargo between Honolulu and San Francisco. This does not bear out information furnished by you [letter not printed, but see enclosure therein, copy below*] that passengers were not barred. Please look into matter again. Let me know actual position, and probabilities "Moana" and Vancouver steamers being under a ban, Mr. Dryden will confer with you.

* Extract from the Revised Statutes of the United States, page 839. Section 4347.—Vessels in domestio commerce : No merchandise shall be transported, under penalty of forfeiturethereof, from one port of the United States to another port of the United States in a vessel belonging wholly or in part to a subject of any foreign Power; but this section shall not be construed to prohibit the sailing of any foreign vessel from one to another port of the United States : Provided no merchandise other than that imported in such vessel from some foreign port, and which shall not have been unladen, shall be carried from one port or place toanother in the United States.

No. 29. The Resident Agent for New Zealand, San Francisco, to the Secretary, General Post Offic Wellington. Sir, — San Francisco, 9th August, 1898. I have the honour to acknowledge the receipt of your communications of the 20th and 23rd June, in reference to delays reported in the transmission of the homeward-bound mails vid Vancouver, B.C. I have entered into this matter in my report forwarded by this mail [see No. 27], in which am set forth the conclusions arrived at in this connection, and the suggestions for the betterment of this section of the through route. I have, &c, H. Stephenson W. Gray, Esq,, Resident Agent. Secretary, Post and Telegraph Department, Wellington. 2—F. 6a.

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LIQUIDATION OF CANADIAN-AUSTRALIAN ROYAL MAIL STEAMSHIP COMPANY.— PAYMENT OF SUBSIDY. No. 30. The Local Manager, New Zealand Shipping Company (Limited), Wellington, to the Secretary, General Post Office. New Zealand Shipping Company (Limited), Dear Sir, — Wellington, 2nd June, 1898. With this I beg to hand you power of attorney from the official liquidator of the ■Canadian-Australian Royal Mail Steamship Company, authorising our general manager to complete the contract with the New Zealand Government for the carriage of mails between Wellington and Vancouver. We shall be glad to know if the same is in order, and on what day next week it would be convenient for you to see Mr. Gibbs, our general manager, with reference to the execution of the contract. Yours, &c, W. Gray, Esq., G. Hunt, Secretary, General Post Office, Wellington. Pro Local Manager.

No. 31. The Secretary, General Post Office, Wellington, to the General Manager, New Zealand Shipping Company (Limited), Christchurch. Sir, — General Post Office, Wellington, 11th June, 1898. Referring to the letter of the 2nd instant, from your local manager here, forwarding power of attorney from the official liquidator of the Canadian-Australian Royal Mail Steamship Company, authorising you to complete the contract with the Government of this colony for the carriage of mails between Wellington and Vancouver, I am directed to return the document, which I now beg to enclose. I am to say that, after consideration of the whole matter, the Postmaster-General has decided not to have the contract executed in the meantime. The Right Hon. Mr. Seddon would be glad if you would favour him with a copy of the power of attorney. I have, &c, Isaac Gibbs, Esq., General Manager, W. Gray, Secretary. New Zealand Shipping Company (Limited), Christchurch.

No. 32. The Deputy Postmaster-General, Sydney, to the Secretary, General Post Office, Wellington. Postal and Electric Telegraph Department, General Post Office, Sir,— Sydney, 14th June, 1898. I am directed to forward the enclosed copy of a communication, dated the Bth instant, addressed by this department to Messrs. Burns, Philp, and Co. (Limited), and one of their reply thereto, dated the 10th idem, relative to the changes made last year in connection with the SydneyVancouver mail-service, whereby Wellington, in your colony, was made a port of call, an extra steamer was employed, the number of voyages increased from twelve to thirteen per annum, and the number of hours occupied on each voyage increased. I am to request that, after perusing these letters, you will be so good as to advise me at an early date whether your department agrees to the whole proposal mentioned therein, which was submitted to Messrs. Burns, Philp, and Co. (Limited), and agreed to by that firm. I have, &c, S. H. Lambton, The Secretary, General Post Office, Wellington. Deputy Postmaster-General.

Enclosure 1 in No. 32. The Deputy Postmaster-General, Sydney, to Messrs. Burns, Philp, and Co. (Limited). Postal and Electric Telegraph Department, General Post Office, •Gentlemen, — Sydney, Bth June, 1898. With reference to the Canadian-Australian mail-service, I am directed to invite your attention to the fact that the agreement dated the 22nd January, 1896, between the Postmaster-General of this colony and Mr. James Huddart provides for the conveyance of mails to and from Sydney and Vancouver, vid Fiji and Honolulu, for a period of three years from the 25th May, 1896, and that twelve round voyages should be performed in each year by the steamers " Warrimoo " and " Miowera," for a subsidy of £10,000 per annum, the time allowed for the voyage in each direction being twenty-two days and a half. It further provides that, for every complete period of twentyfour hours by which the time allowed for each voyage is exceeded, a deduction of £30 shall be made from the subsidy. It is stipulated, however, that the deduction shall not be made if it be proved to the satisfaction of the Postmaster-General that the detention arose wholly or in part from any cause altogether beyond the control of the contractor. As you are aware, the steamers engaged in the service now call at Wellington, New Zealand, a port of call not mentioned in the contract; and this, of course, involves a departure from the terms of the contract in regard to duration of voyages. Another steamer, the "Aorangi," is also

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now engaged in the service, and thirteen voyages per annum are made in lieu of twelve. These changes, which took place last year, were the result of a proposition made by Mr. Huddart's representative here; and, on the matter being referred to the Crown Solicitor of this colony, the latter advised that any departure from the existing contract should be embodied in a short agreement, to be executed in the same manner as the original one. A draft amended agreement was accordingly prepared, embodying all the changes proposed—namely, alteration of route, employment of an additional steamer in the service, increased frequency of communication, and extra time required for each voyage. Although this proposed new agreement has not been executed in consequence of delay on the part of Mr. Huddart's representative, the changes have already taken effect, and a time-table has been prepared by the New Zealand Post Office, which provides for twenty-seven days being occupied on each voyage ; but it has not yet been determined between the parties to the New South Wales agreement what number of hours shall be allowed for the conveyance of mails between Sydney and Vancouver, and vice versd, under the new arrangement. In view of the fact that the contract will expire in less than twelve months from the present, it is thought that the execution of a formal agreement might be waived, and that the matter, including the question of the extra time to be allowed on account of the detention at Wellington, should be settled by correspondence. I am therefore directed to state that the Postmaster-General of this colony is disposed to agree to 648 hours (twenty-seven days) as the maximum time for the performance of each voyage between Sydney and Vancouver, vid Wellington, Fiji, and Honolulu, and that the penalty of £30 above mentioned shall apply when the 648 hours are exceeded. I am to request that you will be so good as to state whether you concur in that period being considered as the contract time in lieu of that contained in the existing agreement, dated the 22nd January, 1896. On receipt of your reply concurring in this proposal, the New Zealand Post Office will be asked to acquiesce in the whole proposal as regards the altered route, time, &c. I have, &c, S. H. Lambton, Messrs. Burns, Philp, and Co. (Limited), Sydney. Deputy Postmaster-General.

Enclosure 2 in No. 32. Messrs. Burns, Philp, and Co. (Limited), Sydney, to the Deputy Postmaster-General. Dear Sir,— Sydney, 10th June, 1898. We are in receipt of your letter of the Bth instant, regarding the Canadian-Australian mail-service, and note that the amended agreement embodying the changes from the conditions of the original contract necessitated by the employment of a third steamer, alteration of route, increased number of voyages, and extra time required for each voyage has not been signed. Under the circumstances we agree to your suggestion that the execution of a formal agreement may be waived, and on behalf of the liquidator and special manager of the Canadian-Australian Royal Mail Steamship Company (Limited), to which company Mr. Huddart assigned his original contract, we agree to the altered conditions as detailed in your letter of the Bth instant—namely, that the maximum time for the performance of each voyage between Sydney and Vancouver, vid Wellington, Fiji, and Honolulu, be 648 hours (twenty-seven days), and that the penalty of £30 per day provided for in the original contract for every complete period of twenty-four hours by which the time allowed for each voyage is exceeded shall apply. Yours, &c, For Burns, Philp, and Co. (Limited), The Deputy Postmaster-General, Sydney. W. McMaster.

No. 33. The General Manager, New Zealand Shipping Company (Limited), Christchurch, to the Secretary, General Post Office, Wellington. New Zealand Shipping Company (Limited), jg IKj Christchurch, 14th June, 1898. I have the honour to acknowledge receipt of your two letters of the 11th June [see Nos. 206, F.-6, 1898, and 31 herein], enclosing power of attorney from the official liquidator of the Canadian-Australian Royal Mail Steamship Company to the writer, authorising the completion of the mail contract with the Government of this colony. As requested by the Right Hon. Mr. Seddon, we now beg to enclose copy of the power of attorney, and to express our regret that he has decided not to have the contract executed at present. With reference to the payment of subsidy earned by the Canadian-Australian Company s steamers, we shall be glad if you will kindly pass a voucher for the amount due to enable us to close steamers' accounts before the 30th June. I have, &c, Isaac Gibbs, The Secretary, General Post Office, Wellington. General Manager.

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No. 34. The Secretary, General-Post Office, Wellington, to the GENiERAd,-. Manager, New Zealand Shipping Company, Christchurch. (Telegram.) Wellington, 16th June, 1898. Vancouver Service Payments.—Only authority we have to pay your company is from Mr. Barnes, senior official receiver, but, as he has since appointed Mr. Cowan liquidator, necessary that that official should give you or your company specific authority to receive payment for him on behalf of Canadian-Australian Royal Mail Steamship Company. Document should be sent you by mail, and certified copy lodged meanwhile with Agent-General, who should.be asked to advise Government by cable when he has received it.

No. 35. The General Manager, New Zealand Shipping Company, Christchurch, to the Secretary, General Post Office, Wellington. (Telegram.) Christchurch, 16th June, 1898. Forwarding you to-day power attorney from official liquidator, giving specific authority to collect subsidies.

No. 36. The General Manager, New Zealand Shipping Company (Limited), Christchurch, to the Secretary, General Post Office, Wellington. New Zealand Shipping Company (Limited), Sir, — Christchurch, 16th June, 1898. I am in receipt of your telegram of even date, and now beg to hand you power of attorney from Mr. C. J. Cowan, official liquidator of the Canadian-Australian Royal Mail Steamship Company, to the New Zealand Shipping Company (Limited), authorising us to collect all subsidies due under the mail contract. Will you kindly return the deed when you have done with it ? I have, &c, Isaac Gibbs, The Secretary, General Post Office, Wellington. General Manager. [Acknowledgment, returning power of attorney, not printed.]

No. 37. The Secretary, General Post Office, Wellington, to the General Manager, New Zealand Shipping Company, Christchurch. Sir,— General Post Office, Wellington, 18th June, 1898. I have the honour to acknowledge the receipt of your letter of the 14th instant, forwarding copy of power of attorney from the official liquidator of the Canadian-Australian Royal Mail Steamship Company, authorising you to complete the contract with the Government of New Zealand for the transport of mails between Wellington and Vancouver, and asking that the amount of subsidy earned by the steamers might be paid over to you before the end of this month. ' I have, &c, Isaac Gibbs, Esq., General Manager, W. Gray, Secretary. New Zealand Shipping Company (Limited), Christchurch.

No. 38. ; The Hon. the Premier to the Agent-General. Sir, — Premier's Office, Wellington, 22nd June, 1898. Vancouver Mail-service. —Adverting to previous correspondence, I have now the honour to inform you that the power of attorney empowering Mr. Gibbs, of the New Zealand Shipping Company (Limited), to execute the contract on behalf of the liquidator has been submitted to the Post Office by Mr. Gibbs, but after consideration of the position of the Canadian-Australian Royal Mail Steamship Company I have decided not to have the contract signed at present. Meantime, payment of subsidy will be made the New Zealand Shipping Company, as agents for the liquidator, less the penalties incurred ; and later on the question whether the penalties shall or shall not be waived will be determined. The steamers are now making better time between here and Vancouver ; but, unfortunately, unaccountable delays have taken place in the transport of the mails from Vancouver to London. This was very noticeable in the case of the "Aorangi's" homeward mails, which, although they reached Vancouver a day in advance of time, were not delivered in London until three days after time-table date. The Mail Agent who accompanied the January homeward mails travelled from Vancouver as far as Chicago with the mails, and satisfied himself that close connection up to that point would be

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made. The United States railway mail officials assured him that there would be no delay in the delivery between Chicago and New York, and the New York Post Office authorities advised the Post Office here that despatch would be given to the mails from there to Great Britain. The delay is inexplicable and most vexatious, and I can quite understand the dissatisfaction in London business circles, as indicated in your cable of the 4th instant [No. 189, F.-6, 1898]. The delay to the " Aorangi's " mails had been taken up by the Post Office here prior to the receipt of your message. The Postmaster-General, Ottawa, was cabled concerning the delay, and the Resident Agent, San Francisco, requested to accompany the " Miowera's " mails from Vancouver through to New York to determine where the delay occurred, and to take steps to prevent delays in future. Mr. Smith, unfortunately, was unable to reach Vancouver in time, but he will go through with the " Warrimoo's " mails. I attach copy of your cable message I have already referred, to, and also of the reply [No. 194, F.-6, 1898]. I have, &c, The Hon. W. P. Reeves, R. J. Seddon. Agent-General for New Zealand, London.

No. 39. The Secretary, General Post Office, Wellington, to the Deputy Postmaster-General, Sydney. Sir,— General Post Office, Wellington, sth July, 1898. I have the honour to acknowledge the receipt of your letter of the 14th ultimo, forwarding, copy of a communication from your department to Messrs. Burns, Philp, and Co. (Limited), and of their reply, relative to the changes made last year in connection with the Sydney-Vancouver mail-service, whereby Wellington was made a port of call, an extra steamer employed in the service, the number of voyages increased from twelve to thirteen per annum, and the number of hours occupied on the voyage raised to 648. In reply, I have to inform you that the PostmasterGeneral agrees to the whole proposal mentioned in your letter of the Bth ultimo to Messrs. Burns, Philp, and Co. I have, &c, W. Gray, Secretary. The Deputy Postmaster-General, Sydney. Approximate Cost of Paper. —Preparation, not given ; printing (1,500 copies), £7 Vs. 6d.

By Authority: John Mackay. Government Printer, Wellington.—lB9B. Price 6d.]

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